Document:

exv10w1

Exhibit 10.1

[***] Portions of this exhibit have been omitted and filed separately with the Commission
pursuant to a request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of
1934, as amended.

Seattle Seahawks

Amended Sponsorship Agreement

     This Sponsorship Agreement (the “Agreement”), which takes effect on July 15, 2009 and
supersedes the Sponsorship Agreement dated July 1, 2007 (the “Effective Date”) and continues
through June 30, 2012, is made among the following parties:

	 	•	 	JONES SODA CO., a Washington corporation (“Jones”);
	 
	 	•	 	FOOTBALL NORTHWEST, LLC d/b/a Seattle Seahawks, a Washington limited liability
corporation (the “Team”), which owns and operates the Seattle Seahawks, a National
Football League team; and
	 
	 	•	 	FIRST & GOAL, INC., a Washington corporation (“FGI”), which operates Qwest Field and
Events Center (“Facility”).

The term “FNW/FGI” refers to Team and FGI, collectively. For other defined terms below, see
Exhibit A.

Background

Subject to the terms and conditions of this Agreement, Jones wishes to obtain exclusive Beverage
availability, advertising and promotional rights for products marketed under Marks owned by or
licensed to Jones in connection with the Team and the Facility. FNW/FGI wishes to have Jones as a
sponsor for the Team and the Facility. Jones’s rights under this Agreement apply to all
pre-season, regular season, and post-season Team games and activities, as well as to all other
events and activities held at the Facility.

Terms and Conditions

	1.	 	Beverage Rights

FNW/FGI grants Jones the following Beverage availability rights and Beverage merchandising rights:

	1.1	 	Beverage Availability. Except as provided by Section 1.3, only Jones Beverages can be sold,
dispensed, or served at the Facility. All Jones Beverages, sold, dispensed, or served at the
Facility must be bought from Jones, either directly or with a bottler or distributor acting as
Jones’s agent. FNW/FGI will supply cups and lids and carbon dioxide. FNW/FGI will determine,
in consultation with Jones and FNW/FGI’s concessionaire, the Jones Beverages to be sold at the
Facility, and the package forms and volume sizes for those Jones Beverages. FNW/FGI will make
Jones Beverages available for sale at the

 

 

	 	 	Facility in all package forms determined in good faith by Jones and FNW/FGI, through
hawking, carts, kiosks, vending machines and any other means determined by FNW/FGI and
approved by Jones. If Jones decides to offer a souvenir cup containing Seahawks and Jones
Marks, both parties shall agree on the size and graphics on the cup and said souvenir cup
expense, including design, manufacture and delivery, will be at Jones sole expense. Jones
will be responsible for the cost of labor and materials to retrofit fountain dispensers as
set forth on Exhibit H attached hereto, as well as providing coolers to store Jones
Beverages at the points of sale indicated on Exhibit H.
	 
	 	 	The bottle pricing and fountain pricing to be charged to FNW/FGI in connection with Jones
distribution activities above shall be reviewed each year by the parties to determine if an
adjustment is necessary using factors such as pricing offered to similar customers
purchasing under similar volumes and retention of profit margins. In the event that other
Jones Beverages are sold at the Facility pursuant to the terms of this Agreement, the price
for each such Jones Beverage shall be agreed upon by the parties, which price will be
reviewed each year after the initial year of sales.
	 
	1.2	 	Beverage Merchandising. Jones has the right to merchandise Jones Beverages at the Facility,
including without limitation the following specific rights:

	 	(A)	 	Point-of-Sale Advertising. Jones identified materials promoting Jones
Beverages at the point of sale (e.g., concession stands, food service & dining
locations) must be clearly visible to the purchasing public and must be displayed in a
manner and location mutually agreed upon by FNW/FGI and Jones.
	 
	 	(B)	 	Concession and Menuboard Advertising. Marks of Jones Beverages must be
prominently listed on all menuboards in all food and refreshment outlets (e.g.,
concession stands and food service areas) as mutually agreed upon by FNW/FGI and Jones.
If the Facility’s menuboards have photo translites, FNW/FGI will ensure that
advertising provided by Jones and depicting Jones Beverages appears in at least one
translite in each menuboard at FNW/FGI’s sole expense.
	 
	 	(C)	 	Approved Packaging. All Beverages served, sold, or dispensed at the Facility
must be done so in Jones’s packaging or in cups designed or approved in writing by
Jones and FNW/FGI. Jones has the right to develop a souvenir bottle. Such souvenir
bottle may contain a joint Jones/Team logo, as may be mutually agreed by the parties
hereto.
	 
	 	(D)	 	Alternate Distribution. FNW/FGI will sell Beverages using Jones trademarked
and provided materials, such as hawking trays, kiosks, themed mobile/push carts and
themed umbrellas, as mutually agreed upon between Jones and FNW/FGI and at Jones’ sole
expense.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

2

 

	 	(E)	 	FNW/FGI Cooperation. FNW/FGI must use its best efforts to promote the sale,
distribution, and pervasive availability at the Facility of Jones Beverages, through
the use of mobile carts, kiosks and other reasonable methods.

	1.3	 	Permitted Exceptions for Other Beverages. FNW/FGI or FNW/FGI’s concessionaire may serve,
sell or dispense on premises: (i) milk based Beverages, branded or unbranded; (ii) branded or
unbranded fresh brewed hot tea; (iii) branded cocktail juices served with liquor or intended
to be mixed with liquor at the Facility; (iv) branded or unbranded juices and/or fresh
squeezed juices and lemonades served at catered events at the Facility; (v) unbranded or
branded fresh brewed hot coffee or cold coffee beverages; (vi) branded or unbranded energy
drinks and (vii) branded or unbranded bottled water, which may be marketed with the Team Marks
and/or the Facility Marks.
	 
	2.	 	Sponsorship and Trademark Rights

FNW/FGI grants Jones the following sponsorship and trademark rights throughout the term of the
Agreement:

	2.1	 	General Sponsorship Designation. Jones may promote, both in the Facility and outside the
Facility, the fact that Jones is a sponsor of Team and the Facility and that Jones Beverages
are available at the Facility. This promotion may occur in advertising (including television,
radio, internet, print and all other media), on packaging (including bottles and containers),
and at the point of sale of any Jones Beverages. FNW/FGI will cooperate with Jones in
conducting promotional activities — both in the Facility and outside it — designed to
promote Jones’s rights with respect to Team, the Team and Facility Marks, and the Facility.
	 
	2.2	 	Licenses to Use Team and Facility Marks.

	 	(A)	 	License to Use Team Marks. Subject to Team’s approval rights in Section 4.2,
Team grants Jones a license to use the Team Marks [***] for the purposes of promoting
Jones Beverages, in any Jones designated advertising or promotional activities or
materials, including, without limitation, on Jones Beverage packaging, point-of-sale,
and electronic, print, internet or other media. The parties agree that the license
granted by Team to Jones under this Section 2.2(A) will be exclusive with respect to
Beverages, other than as set forth in Section 1.4 regarding energy drinks for 2007.
	 
	 	(B)	 	License to Use Facility Marks. Subject to FGI’s approval rights in Section
4.2, FGI grants Jones a license to use the Facility Marks [***] for the purposes of
promoting Jones Beverages, in any advertising or promotional activities or materials,
including, without limitation, on Jones Beverage packaging, point-of-sale, and
electronic, print, internet or other media. The parties agree that the license granted
by FGI to Jones under this Section 2.2(B) will be exclusive with respect to Beverages.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

3

 

	 	(C)	 	What the Licenses Allow. Each license gives Jones the right to use the
licensed Marks in advertising and promotions relating to Jones Beverages, including,
without limitation, with Jones’s distributors and customers by displaying the licensed
Marks with Jones’s customers’ trademarks, logos and branded products in or on all
advertising, promotional and packaging materials or activities, so long as the licensed
Marks appear with Jones’s Marks, and Jones’s distributors and customers are not
depicted as sponsors of Team or the Facility unless they are in fact sponsors of Team
or the Facility, as applicable.
	 
	 	 	 	Jones’s customer use rights under this Agreement apply to Jones’s customers in all
channels of trade, including, without limitation, the following: (i) grocery stores;
(ii) mass merchandise stores; (iii) convenience stores; (iv) oil and gas/petroleum
stores; (v) quick serve restaurants (“QSR”) and (vi) casual dining restaurants.
Notwithstanding the foregoing, if Team has a sponsor in the above listed channels,
Jones agrees to bring any proposed customer-specific promotion in such channels to
such Team sponsor prior to offering such proposed promotion to other customers in such
channels; provided that such requirement shall not apply under any circumstances to
channel-wide promotions in any retail channel. For example, Jones may run a promotion
with all grocery stores in the region, including a Team sponsor, without first
offering the promotion exclusively to the Team sponsor.
	 
	 	 	 	Because they are included in the sponsorship Fees, the parties agree that no separate
royalty or license fee will be charged to Jones or its customers for using the
licensed Marks in the above manner. Each license applies to all preseason,
regular-season, and postseason activities, as well as to special events.

	3.	 	Other Promotional and Advertising Rights

FNW/FGI grants Jones the following promotional and advertising rights throughout the term of the
Agreement:

	3.1	 	Specific Promotional Rights. FNW/FGI grants Jones the right to promote Jones Beverages with
respect to Team, the Facility, and the Team Marks and the Facility Marks. FNW/FGI must use
its best efforts to support Jones’s promotional activities under this Agreement.
	 
	 	 	At Jones’s request, each year, FNW/FGI and Jones will engage in promotional activities in
order to establish and promote Jones’s sponsorship association with Team, the Facility, the
Team Marks, and the Facility Marks. Jones also has the right to conduct the specific
promotions set forth in Exhibit B.
	 
	3.2	 	Bottle and Packaging Customization. FNW/FGI and Jones agree that Jones has the right to
customize bottles with Team Marks, which shall be mutually acceptable to both parties.
FNW/FGI and Jones have the right to create and promote Jones bottle campaigns using Seahawks
players in accordance with the NFL Players Association guidelines.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

4

 

	 	 	[***] will work with [***] to [***] in [***] at [***] in each Contract Year. If [***]
desires to engage in promotions in any Contract Year such that the [***] of [***] exceed
[***], [***] will be responsible for payment of such [***].

	3.3	 	Signage for Products. Jones is entitled to have permanent signage in the Facility for Jones
Beverages, as described in Exhibit C. The initial production and installation costs of such
signage will be paid by FNW/FGI. Any changes or modifications to such signage will be paid by
Jones. Jones will specify the advertising message and graphics for its signage. All other
aspects of the design, construction, and general appearance of the signage must meet Jones’s
reasonable specifications.
	 
	 	 	During the Term, the Facility may be host to up to three (3) Special Events (as defined
below) each Agreement Year as provided below, wherein a competitor of Jones may present an
event being held in the Facility, or place temporary advertising for Competitive Products on
the stage. The total number of days in any Agreement Year in which a competitor’s signage,
advertising, or trademark displays for Competitive Products is displayed at Special Events
in the Facility shall not exceed ten (10) days. Notwithstanding the foregoing, any
professional or college team playing its home games at the Facility other than the Seahawks
shall have the ability to obtain a beverage sponsor other than Jones and engage in temporary
(event only) sponsorship at the Facility for the home games, including, but not limited to
uniforms, field signage, LED signage, public address announcements, programs and video
boards.
	 
	 	 	The parties agree that FNW/FGI shall not be in breach of any obligation hereunder as a
result of hosting the events referred to in the preceding paragraph, provided, however, that
(i) Jones’s Beverage advertising and availability rights as provided herein shall not be
otherwise affected during such Special Events, (ii) Competitive Product signage will not be
permitted, except temporary signage during the Special Events, and (iii) no give-aways or
premium items at the Special Event shall bear Competitive Product trademarks.
	 
	 	 	“Special Event” shall mean and be limited to events — which may be multi-day events — that
(a) are not football- or baseball-related events (including post-season play and bowl
games), (b) are not produced by FNW/FGI or any affiliate of FNW/FGI, and (c) are part of a
multi-market pre-sponsored touring show which is sponsored by a manufacturer, licensee or
distributor of a Competitive Product and for which advertising rights of a Competitive
Product are mandated in a master agreement between such sponsor and the athletes or artists
or promoter of the event.
	 
	3.4	 	No Obstruction of Signage. Jones’s signage in the Facility must not be blocked by FNW/FGI or
any third party, except for any Major Event(s) held at the Facility wherein covering or not
displaying signage is a prerequisite for hosting the Major Event(s). Major Event(s) is hereby
defined as World Cup or International soccer matches, major political conventions, Super
Bowls, NFL Draft or events of a similar magnitude that are not regularly scheduled at the
Facility.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

5

 

	3.5	 	Obligation to Maintain Signage. FNW/FGI will install and maintain all materials and lighting
used for the signage described in Exhibit C, and the structures supporting the signage.
FNW/FGI will repair any malfunction, damage, or destruction to the signage or supporting
structures within a commercially reasonable period. All installation, maintenance and repair
will be at FNW/FGI’s expense, except that Jones will pay the cost of installing any
replacement signage used to modify Jones’s initial advertising message or graphics.
	 
	3.6	 	Media. Team will provide Jones with media advertising rights as described in Exhibit E.
Jones has the right to use the media in association with its customers and/or in association
with Team promotions
	 
	3.7	 	Sampling. Jones has the right to carry out unlimited sampling activities in and around the
Facility at Seahawks home games during first season of agreement (in subsequent years twelve
(12) sampling activities in and around the Facility), provided that the sampling sizes shall
be limited to two (2) oz. or less for Seahawks or other FGI events. Sample size restrictions
will be lifted for other sampling activities in conjunction with other non-Seahawks events.
FNW/FGI reserves the right to approve any and all sampling activities prior to execution.
	 
	3.8	 	Tickets and Hospitality Rights. In each Agreement Year, Team will provide Jones, free of
charge, except as stated with regard to playoffs, with the types and quantities of tickets and
other entertainment rights described in Exhibit D, and Jones and Team shall enter into a Suite
License in the form set forth as Exhibit G.
	 
	4.	 	Cooperation and Approvals
	 
	4.1	 	General Cooperation. FNW/FGI will cooperate in good faith with Jones in conducting
activities to promote Jones’s sponsorship association with Team, the Facility, and the Team
and Facility Marks.
	 
	4.2	 	Team and FGI Approval Rights.

	 	(A)	 	Promotions. Team and FGI have the right to approve in advance the following,
as applicable: (1) the concept for any promotional activity with respect to Team or the
Facility; and (2) any materials that display any Team Marks or any Facility Marks, but
Jones has the right to use the Designations without Team’s prior approval.
	 
	 	(B)	 	Deemed Approval. If Team or FGI, as applicable, does not respond to a written
submission for approval within ten (10) working days after receiving it, then Jones may
send notice to Team or FGI, as applicable, that Jones has not received a response. If
Team or FGI, as applicable, still does not respond within forty-eight (48) hours of
that second notice, Jones is entitled to treat the submission as approved.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

6

 

	 	(C)	 	Withholding Approval. Unless otherwise specifically provided for herein, Team
and FGI will not unreasonably withhold approval of a submission. Withholding approval
is considered unreasonable unless it is based on:

	 	(1)	 	Team’s or FGI’s, as applicable, reasonable determination that the
Team Marks or the Facility Marks have been used incorrectly in a technical sense
(such as improper color or other trademark nonconformity); or
	 
	 	(2)	 	Team’s or FGI’s, as applicable, reasonable determination that
Jones’s proposed promotional activity or use of the Team Marks or the Facility
Marks would, in the eyes of the Facility’s patrons or the Team’s fans, reflect
negatively on Team or the Facility.

	 	 	 	For example, Team and FGI agree that it is unreasonable to withhold approval of a
submission that includes one of Jones’s customers or its Marks, solely because that
customer is not also a sponsor of Team or the Facility, or because that customer
operates in a trade channel where Team or the Facility already has an exclusive or
other sponsor.

	5.	 	Exclusive Association; No Competitive Beverages

Each of the rights and licenses granted to Jones under this Agreement is exclusive with respect to
Beverages. To protect this exclusivity, FNW/FGI makes the covenants listed below. FNW/FGI agrees
that Jones has the right to assert remedies for any breach of these covenants, regardless of
whether the breach results from the actions of a third party not under FNW/FGI’s control. The
covenants are as follows:

	5.1	 	No Competitive Products at Facility. Except as permitted by Section 1.3, FNW/FGI must ensure
that no Competitive Products are sold, dispensed, served, or sampled anywhere at the Facility.
	 
	5.2	 	No Competing Trademark Visibility. FNW/FGI must not grant any form of trademark visibility
or promotional or advertising rights to Competitive Products except for the coffee, energy
drink or water categories as described in Section 1.3. FNW/FGI must ensure that there is no
association or appearance of an association between Team, the Facility, the Team Marks, or the
Facility Marks and Competitive Products.
	 
	5.3	 	No Promotion or Advertising of Competitive Products. Except as permitted by Section 1.3,
FNW/FGI must ensure that no permanent or temporary advertising, signage, or trademark
visibility for Competitive Products is displayed at the Facility or in connection with the
Team.
	 
	5.4	 	No Competitive Use of the Team Marks or the Facility Marks. FNW/FGI must not grant any
advertising or promotional rights — including use of the Team Marks or the Facility Marks —
to third parties (such as Broadcasters) in a way that permits those third

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

7

 

	 	 	parties to use those rights in association with Competitive Products, except for the coffee,
energy drink, or water categories as described in Section 1.3. But Broadcasters may sell
in-game spot advertising for Competitive Products, so long as the spots do not display or
refer to the Team Marks or the Facility Marks or otherwise associate the Team, the Facility,
or the Team or Facility Marks with Competitive Products through on-air mentions or on-screen
images or text.
	 
	5.5	 	No FNW/FGI Association with Competitive Products. FNW/FGI must prevent any Team player from
using the Team Marks or the Facility Marks — including Team uniforms — to sponsor or endorse
Competitive Products, with the exception of those rights granted to Gatorade or other isotonic
sports drink brand in agreement with the NFL, now or in the future or the coffee, energy drink
or water categories as described in Section 1.3, which may include Team trademark use, product
use by Team players and coaches and sideline activation.
	 
	5.6	 	No Third-Party Beverage Promotions. FNW/FGI must not grant any third party the right to
conduct promotions involving Beverages or Beverage containers, including promotions that
relate primarily to non-Beverage items but involve a Beverage — on a branded or unbranded
basis This provision applies even if a third party promotion involves a Jones Beverage,
unless Jones participates in the promotion.

6. League Rules. Jones recognizes that Team operates under League Rules. If any League Rules or
applications of the League Rules adversely affect Jones’ rights under this Agreement such as, by
way of example only, creating an association between Competitive Products and Team, the Facility or
the Team Marks, Jones and Team will negotiate in good faith for a reduction in the sponsorship Fees
for the remaining portion of the term of this Agreement to reflect Jones’ lost value. If within
thirty (30) days the parties have not agreed on the amount of this reduction, the parties shall
submit the matter to binding arbitration pursuant to Section 14, including the right to request and
be granted termination. Team will promptly notify Jones of any NFL action that would reasonably be
expected to adversely affect Jones’s rights or create an association between Competitive Products
and Team, the Facility, the Team Marks, or the Facility Marks.

7. Sponsorship Fees. In exchange for the exclusive rights and granted under this Agreement, Jones
agrees to pay FNW/FGI the sponsorship Fees described below:

	 	 	 	 	 
	Agreement Year 2009-2010
	 	 	[***]	 
	Agreement Year 2010-2011
	 	 	[***]	 
	Agreement Year 2011-2012
	 	 	[***]	 

	7.1	 	Fee Payment. The sponsorship Fees will be paid in four (4) equal monthly installments due
September 1, November 1, February 1 and May 1 of each Agreement Year.
	 
	7.2	 	Royalty Payment. Jones shall distributes specialty packs containing Team Marks including a
preseason pack, tailgate pack and playoff pack (“Packs”) in retail channels,

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

8

 

	 	 	and on the “My Jones” feature on its website. In addition, Jones may create and distribute
a football themed specialty pack at a national level (“Generic Packs”).

	7.3	 	Team Sales. Jones shall provide Team with Packs as requested [***] for sale at the Seahawks
Pro Shop or on Seahawks.com.
	 
	8.	 	Equipment
	 
	8.1	 	Loan of Equipment. During the term of the Agreement, Jones will loan FNW/FGI, [***], the
following equipment:

	 	(A)	 	Refrigeration units in the types and amounts FNW/FGI determines is reasonably
necessary to serve attendees at the Facility; and
	 
	 	(B)	 	Pre and post-mix soft drink dispensing equipment in the types and amounts
FNW/FGI determines is reasonable to serve attendees at the Facility; and
	 
	 	(C)	 	Any additional post-mix dispensing equipment reasonably needed to replace
defective or worn-out equipment or to equip new Facility locations mutually agreed to
by Jones and FNW/FGI.

Jones is under no obligation to supply any equipment for frozen Beverages, ice makers or water
filters. Jones is also under no obligation to supply any fixtures which, once installed, will
become a permanent part of the Facility. The equipment provided by Jones will at all times remain
the property of Jones, and is subject to the terms and conditions of the lease agreement attached
in Exhibit F, except that [***] will be charged.

	8.2	 	FNW/FGI’s Equipment Obligations. With respect to the equipment described in this section,
FNW/FGI will:

	 	(A)	 	upon the owner’s request, execute UCC financing statements or other documents
evidencing proper ownership of the equipment;
	 
	 	(B)	 	refrain from removing equipment from the Facility unless FNW/FGI receives prior
written consent from the equipment’s owner;
	 
	 	(C)	 	refrain from encumbering the equipment or permit any attachment to it, unless
authorized to do so by the equipment’s owner in writing; and
	 
	 	(D)	 	reimburse the owner for any loss of or damage to the equipment, except for
reasonable wear and tear.

8.3 Installation Costs. Jones shall be responsible for labor and installation of Equipment at
Facility, including any costs associated with relocating utilities connections.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

9

 

8.4 Service of Equipment. Jones will provide FNW/FGI with maintenance and service for the pre and
post-mix equipment as well as the refrigeration units.

9. First Right of Renewal. Team will present Jones with a written proposal to renew and/or extend
these promotional rights on or before September 1, 2011. Jones shall have [***] that shall [***]
from [***] to accept renewal and/or extension. FNW/FGI agrees not to negotiate with any other
beverage company prior to the expiration of the [***]. After the [***], Jones’ first right of
refusal will also expire and FNW/FGI shall be free to negotiate a new agreement with another
beverage company. In the event that Jones’ business changed materially during the term of this
Agreement (i.e., Jones’ core business is no longer the sale of beverages), FNW/FGI is not obligated
to provide Jones with an extension proposal and this Section 9 will not be operative. For
avoidance of doubt, a change in ownership of Jones alone shall not constitute a material change in
Jones’ business.

	10.	 	Representations, Warranties, and Covenants
	 
	10.1	 	By FNW/FGI. Each of Team and FGI, solely as to itself, represents, warrants, and covenants
to Jones the following:

	 	(A)	 	Authority. It has full power and authority to enter into this Agreement and to
grant Jones the rights described in it.
	 
	 	(B)	 	Binding Obligation. It has obtained all necessary approvals for its execution,
delivery, and performance of this Agreement. It has duly executed and delivered this
Agreement, which is now its binding legal obligation.
	 
	 	(C)	 	Right to License Marks. It has the exclusive right to license the Team Marks
and the Facility Marks, as applicable, subject only to the League’s right to license
the Team Marks when used collectively with all other NFL team marks, as of the
Effective Date of this Agreement.
	 
	 	(D)	 	No Conflicting Agreements.

	 	(1)	 	It has not entered into — and during this Agreement’s term will
not enter into — either of the following:

	 	(a)	 	any agreement that would prevent it from complying with
this Agreement; or
	 
	 	(b)	 	any agreement granting rights that are inconsistent
with the rights granted to Jones under this Agreement.

	 	(2)	 	It will require third parties (possible examples include
concessionaires, third-party food-service operators, vending companies, licensing
agents and Broadcasters) to comply with the relevant provisions of this
Agreement.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

10

 

	10.2	 	By Jones. Jones, solely as to itself, represents, warrants, and covenants to FNW/FGI the
following:

	 	(A)	 	Authority. It has the full power and authority to enter into this Agreement.
	 
	 	(B)	 	Binding Obligation. It has obtained all necessary approvals for its execution,
delivery, and performance of this Agreement. It has duly executed and delivered this
Agreement, which is now its binding legal obligation.
	 
	 	(C)	 	No Conflicting Agreements. It has not entered into — and during this
Agreement’s term will not enter into — any other agreement that would prevent it from
complying with this Agreement.

	11.	 	Termination and Remedies

This Agreement takes effect as of July 15, 2009 and continues through June 30, 2012, but may be
terminated earlier and/or the sponsorship Fees may be adjusted under the following circumstances:

	11.1	 	FNW/FGI Termination Rights. In addition to other legal and equitable remedies, FNW/FGI may
terminate this Agreement if any of the following events occur:

	 	(A)	 	If Jones Doesn’t Pay. FNW/FGI may terminate if Jones fails to make any payment
to FNW/FGI under this Agreement, and if this default continues for thirty (30) days
after Jones receives written notice of default. But FNW/FGI may not terminate if
Jones’s failure to pay is due to FNW/FGI’s failure to materially perform, any loss of
Jones’s rights or a bona fide dispute between the parties.
	 
	 	(B)	 	If Jones Breaches. FNW/FGI may terminate if Jones breaches any other material
term of this Agreement and Jones fails to cure the breach within thirty (30) days of
receiving written notice of the breach; provided, however, that if the breach cannot be
cured in such 30-day period, Jones shall have up to an additional thirty (30) days (or
a total of 60 days) to cure the breach so long as Jones initiates action to effect such
cure within the original 30-day period and diligently pursues such cure.
	 
	 	(C)	 	If Jones Becomes Insolvent or Bankrupt.

	 	(1)	 	FNW/FGI may terminate on thirty (30) days written notice if Jones
does any of the following:

	 	(a)	 	becomes unable to pay its liabilities when due;
	 
	 	(b)	 	makes an assignment for the benefit of creditors;
	 
	 	(c)	 	files a voluntary petition in bankruptcy or is
adjudicated bankrupt or insolvent;

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

11

 

	 	(d)	 	has a receiver appointed for any portion of its
business or property; or
	 
	 	(e)	 	has a trustee in bankruptcy or trustee in insolvency
appointed for it under federal or state law.

	 	(D)	 	FNW/FGI Opt Out. FGI/FNW may terminate this Amended Agreement at the end of
2009 season by giving written notice to Jones no later than June 30, 2010.

	11.2	 	Jones’s Termination Rights. In addition to other legal and equitable remedies, Jones may
terminate this Agreement if any of the following events occur:

	 	(A)	 	If FNW/FGI Breaches. Jones may terminate if FNW or FGI breaches any material term or
condition of this Agreement and fails to cure the breach within thirty (30) days of
receiving written notice of the breach; provided, however, that if the breach cannot be
cured in such 30-day period, FNW or FGI, as applicable, shall have up to an additional
thirty (30) days (or a total of 60 days) to cure the breach so long as FNW or FGI, as
applicable, initiates action to effect such cure within the original 30-day period and
diligently pursues such cure.. The covenants contained in Section 5 above are material
terms and conditions of this Agreement. It shall not be considered a breach by FNW/FGI if
Team does not play all its scheduled regular season home games at the Facility unless said
failure to play scheduled regular season home games lasts for longer than a forty-five day
period, whether or not the failure to play is due to a cause beyond Team’s control (such as
a strike or other work stoppage).

	 	(B)	 	If FNW/FGI Becomes Insolvent or Bankrupt. Jones may terminate if Team or FGI
does any of the following:

	 	(1)	 	becomes unable to pay its liabilities when due;
	 
	 	(2)	 	makes an assignment for the benefit of creditors;
	 
	 	(3)	 	files a voluntary petition in bankruptcy or is adjudicated bankrupt
or insolvent;
	 
	 	(4)	 	has a receiver appointed for any portion of its business or
property; or
	 
	 	(5)	 	has a trustee in bankruptcy or trustee in insolvency appointed for
it under federal or state law.

	 	(C)	 	If Games Aren’t Played. Jones may terminate if Team permanently moves its home
games to a venue other than the Facility.
	 
	 	(D)	 	Written Notice Required. Jones must give thirty (30) days written notice when
exercising any of its termination rights under Sections 11.2(A), (C) or (D).

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

12

 

	11.3	 	Allocation of Sponsorship Fees.

	 	(A)	 	Allocation of Fees. The sponsorship Fees for each Agreement Year will be
allocated equally among the total number of regular-season home games scheduled to be
played by the Team during such Agreement Year.

12. Indemnification. FNW/FGI agrees to defend, indemnify and hold Jones; its officers, directors,
employees and agents harmless from and against all claims, suits, liabilities, costs and expenses,
including reasonable attorney costs and fees, for injury to, including death of, persons (whether
they be third persons or employees of either of the parties hereto) or any loss of or damage to
property in any manner arising from or relating to the rights conveyed and obligations assumed
herein or the negligence or intentional misconduct or FNW/FGI, or either them or their officers,
employees, or agents, with the understanding that this obligation shall not apply to, and Jones
agrees to defend, indemnify and hold FNW/FGI and its officers, directors, employees and agents
harmless from and against, all losses, claims, suits, demands, actions, liabilities, costs and
expenses, including reasonable attorney costs and fees, for injury to, including death of, persons
(whether they be third persons or employees of either of the parties hereto) or any loss of or
damage to property in any manner arising from the content of any advertising copy supplied by Jones
or the negligence or intentional misconduct of Jones or its officers, employees or agents.

13. Confidentiality. Each of the parties deems the provisions of this Agreement to be confidential
and proprietary in nature (“Confidential Information”). FNW/FGI and Jones each agree that the
terms of this Agreement will be kept confidential and will not be disclosed in any manner
whatsoever, in whole or in part, by either party without the prior written consent of the other
party; provided, however, that the existence and contents of this Agreement may be disclosed as
required by applicable securities laws and regulations. No confidentiality obligations will apply
to any portion of the Confidential Information which (a) is or becomes generally available to the
public other than as a result of a disclosure by the recipient or its representatives; (b) is
required to be disclosed under operation of law (provided discloser is given prompt written notice
of such requirement); or (c) is disclosed by recipient with discloser’s prior written consent.
Moreover, each party agrees to disclose the terms of this Agreement only to its respective
officers, employees, agents and representatives who need to know of such terms and who agree to be
bound by the confidentiality terms of this Paragraph. Each party shall be responsible for any
breach of this Paragraph by its respective officers, employees, agents and representatives. The
terms of this Paragraph shall survive the expiration or termination of this Agreement for whatever
reason for a period of three (3) years after such expiration or termination. Notwithstanding the
foregoing, FNW/FGI may disclose the terms of this Agreement to lenders, legal counsel, and
financial advisors. Additionally, Confidential Information shall include Jones’ trade secrets,
product formulations, specifications, processes and standards, marketing, sales, financial,
technical and operational information.

14. Arbitration. Any controversy or claim arising out of or relating to this Agreement, including,
but not limited to a claim based on or arising from an alleged tort will, at the request of any
party be determined by arbitration in accordance with the Federal Arbitration Act (9 U.S.C. Section
1, et. seq.) under the auspices and rules of the American Arbitration

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

13

 

Association (“AAA”). The AAA will be instructed by either or both parties to prepare a list of
judges who have retired from the Superior Court of the State of Washington, a higher Washington
court or any federal court. Within ten (10) days of receipt of this list, each party may strike
one name from the list. The AAA will then appoint an arbitrator from the name(s) remaining on the
list. The arbitration will be conducted from Seattle, Washington. Any controversy in
interpretation or enforcement of this provision or whether a dispute is arbitrable, will be
determined by the arbitrators. Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction. The institution and maintenance of an action for
judicial relief or in pursuit of an ancillary remedy, does not constitute a waiver of the right of
any party, including the plaintiff, to submit the controversy or claim to arbitration.

	15.	 	Miscellaneous Provisions
	 
	15.1	 	Entire Agreement. The Agreement represents the entire agreement between the parties
pertaining to the subject matter of this Agreement and all prior discussions and negotiations
are incorporated into this document.
	 
	15.2	 	Modification. This Agreement can be modified or changed only by a written instrument signed
by all parties.
	 
	15.3	 	Retained Rights. This Agreement does not give any party any interest in or the right to use
the Mark of another party except as specifically authorized in this Agreement. Even if use of
a party’s Marks is specifically authorized, the Marks remain solely that party’s property, and
no joint ownership can arise because of the other party’s use under this Agreement. This
Agreement does not make any party the agent of another party, nor does it create any
partnership or joint venture between FNW/FGI and Jones.
	 
	15.4	 	FNW/FGI’s Insurance Obligations. FNW/FGI will maintain sufficient insurance to adequately
protect the parties’ respective interests and in accordance with good business practices
customary in its business. Upon request, FNW/FGI will provide proof of the required
insurance.
	 
	15.5	 	Release, Discharge, or Waiver. A party’s release, discharge, or waiver of any of this
Agreement’s terms or conditions is effective only if in writing and signed by that party. A
party’s specific waiver does not constitute a waiver by that party of any earlier, concurrent
or later breach or default. No waiver occurs if a party either fails to insist on strict
performance of this Agreement’s terms or pays or accepts money under this Agreement with
knowledge of a breach.
	 
	15.6	 	Severability. If any portion of this Agreement is severed — that is, held indefinite,
invalid, or otherwise unenforceable — the rest of this Agreement continues in full force.
But if the severance of a provision affects a party’s rights, the severance does not deprive
that party of its available remedies, including the right to terminate this Agreement.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

14

 

	15.7	 	Sale/Assignment. Because this Agreement is for rights unique to Jones and FNW/FGI, neither
party may assign any of its rights or obligations without prior written consent of the other
party. Notwithstanding the foregoing, no such consent shall be required in the event Jones
enters into an agreement to sell more than fifty percent (50%) of its assets to a third party
which sale incorporates the rights and obligations of this Agreement. All of the rights and
obligations of each of the parties is binding on such parties successors and permitted
assigns.
	 
	15.8	 	Survival. A party’s obligation (if any) to maintain confidentiality and to provide refunds,
indemnification and rights of first negotiation and refusal survives the expiration or
termination of this Agreement.
	 
	15.9	 	Notice. Any notice or other communication under this Agreement must be in writing and must
be sent by registered mail or by an overnight courier service (such as Federal Express) that
provides a confirming receipt. A copy of the notice must be sent by fax when the notice is
sent by mail or courier. Notice is considered duly given when it is properly addressed and
deposited (postage prepaid) in the mail or delivered to the courier. Unless otherwise
designated by the parties, notice must be sent to the following addresses:
	 
	 	 	Notice to Jones.

Jones Soda Co.

234 9th Ave N.

Seattle, WA 98109

Attention: Joth Ricci, CEO

Fax: (206) 624-6857

	 	 	Notice to Team.

The Seattle Seahawks

12 Seahawks Way,

Renton, WA 98056

Attention: Ron Jenkins

Fax: (425) 203-8151

	 	 	Notice to FGI.

First & Goal, Inc.

800 Occidental Avenue, Suite 200

Seattle, Washington 98134

Attention: Susan Darrington

Fax: (206) 381-7557

	15.10	 	Counterparts. This Agreement may be executed in two or more counterparts.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

15

 

	15.11	 	Headings. All headings are for reference purposes only and must not affect the
interpretation of this Agreement. All references to “days” in this Agreement mean calendar
days, unless working days are expressly stated.
	 
	15.12	 	Exhibits. All exhibits are fully incorporated into this Agreement.
	 
	15.13	 	Governing Law. This Agreement is governed by and must be interpreted under Washington law,
without regard to its choice-of-law provisions.

In witness whereof, the parties have executed this Agreement intending to be fully bound by its
terms and conditions.

	 	 	 	 	 	 	 	 	 	 	 
	JONES SODA CO	 	 	 	FOOTBALL NORTHWEST, LLC

d/b/a Seattle Seahawks	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jonathan J. Ricci
	 	 	 	By:
	 	/s/ Ron Jenkins
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Joth Ricci

CEO
	 	 	 	 	 	Ron Jenkins

Vice President Corporate Partnerships	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	FIRST & GOAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Susan Darrington	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Susan Darrington

VP/Facility General Manager	 	 

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

16

 

Exhibit A

Definitions

“Affiliate” means, as to any entity, any other entity which is controlled by, controls, or is under
common control with that entity. The term “control” (including the terms “controlled”, “controlled
by” and “under common control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of an entity.

“Agreement Year” means each twelve (12) month period beginning with the Effective Date of this
Agreement and ending on each subsequent anniversary thereof except for the final year, which shall
be eight (8) months.

“Beverages” means all nonalcoholic beverages of any kind or form, including, without limitation,
carbonated and noncarbonated soft drinks (including “new age” beverages), teas and tea drinks,
ready-to-drink coffee and coffee drinks, frozen carbonated and noncarbonated beverages, and milk
and milk-based products. “Beverages” do not include alcoholic beverages, non-alcoholic beer or
non-alcoholic wine, and unbranded juices prepared at the Facility.

“Jones Beverage” means any Beverage marketed under trademarks, trade names, service marks, logos,
or brand names owned or controlled by or licensed for the use of Jones.

“Competitive Product” means (1) any Beverage that is not a Jones Beverage; and (2) any product —
whether or not a Beverage — marketed under Beverage trademarks that are not Jones Beverages
trademarks, or any associated or related trademarks.

“Designations” means the “Official Beverage Sponsor (e.g., soft drink, , tea) of the Team” or
“Official” or “Exclusive” Beverage Sponsor (e.g., soft drink, , tea) of the Facility.

“Facility” means all areas of Qwest Field, including but not limited to, all associated buildings
and grounds associated with the stadium (including parking lots), dining areas, concession areas,
branded and unbranded food service outlets, private clubs, press rooms, skyboxes, stadium suites,
and vending areas at the Facility, as well as the Qwest Field Event Center and WaMu Theater and
Seahawks headquarters. “Facility” does not include players’ benches and locker rooms, or the first
floor training level of the Seahawks headquarters.

“League” means the National Football League, National Football League Properties, Inc., and all
Affiliates of the same.

“League Rules” mean the Constitution, By-Laws, rulings, orders, and agreements of the League or the
Commissioner of the National Football League, as they exist on the effective date of this Agreement
and as they may be modified, amended, or entered into in good faith during the Term.

“Mark” means — with respect to any party — any trademark, trade name, service mark, design, logo,
slogan, symbol, mascot, character, identification, or other proprietary design now or in the

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

future
owned, licensed, or otherwise controlled by that party (which, except in the case of Marks
owned by Jones, “control” may be subject to League Rules). The term “Team Marks” means the Team’s
Marks, and must be interpreted to include all Marks associated with Team. The term “Facility
Marks” means the Facility’s Marks, and must be interpreted to include all Marks associated with the
Facility. Examples of Team Marks include: the Designations; the Team’s name, uniforms, logos,
emblems, and colors; and local marks associated with Team (such as fan-club marks). Examples of
Facility Marks include: the Facility name and logo.

“Sponsorship Fee” means any fee paid by Jones to Team under this Agreement.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit B

Promotions and Merchandise

Entitlement of “Jones Soda Seahawks Kick-Off Week Celebration” (Entitlement of event for every year
of contract as long as event is taking place). Seahawks to provide the following promotional
support to promote “Seahawks Kickoff Week presented by Jones Soda”:

	 	•	 	Kickoff Week will receive a [***] on the [***] during promotional period, [***] will
[***] to a [***] to provide [***] regarding Kickoff Week.
	 
	 	•	 	[***] will provide [***] to promote and recap the Kickoff Week activities in the form of
[***]. [***] will include [***] and [***] as the [***] of Kickoff Week
	 
	 	•	 	A minimum of [***] during [***] on [***]
	 
	 	•	 	A minimum of [***] during [***] on [***]
	 
	 	•	 	A minimum of [***] during [***] with [***] and [***] without [***]
	 
	 	•	 	[***] at the [***] and [***] to promote Kickoff Week.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Jones Soda Day @ Qwest Field - One (1) Game Day Promotion for the first Seahawks regular season
home opener

In-Stadium

	 	•	 	[***] on [***] on the [***] approximately [***] prior to [***].
	 
	 	•	 	[***] with [***] in [***] of the sponsored Game Day, a total of [***].

Radio

	 	•	 	[***] during the [***] on sponsored Game Day
	 
	 	•	 	[***] during the [***] on sponsored Game Day
	 
	 	•	 	[***] during the [***] on sponsored Game Day

Print

	 	•	 	[***] and [***] featured in the [***] of [***].
	 
	 	•	 	[***] on the [***] of [***] for [***].

Website

	 	•	 	Advertiser logo ID and promotional message located on the Seahawks.com website,
promoting Gameday Sponsorship.
	 
	 	•	 	Links to Jones website for customized labels

Hospitality

	 	•	 	One (1) single game suite for eighteen (18) people
	 
	 	•	 	[***] for [***]
	 
	 	•	 	[***] of [***], taken prior to kick-off

Vendor Program 

Jones will be given retail placement in the QFC Vendor Program (“Program”) at no charge for so long
as the Program is in effect during the term of this Amended Agreement. Jones shall not have water
or tea category for the Program.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit C

Signage Specifications

Each Agreement Year, Jones is entitled to the following permanent signage:

	 	•	 	One (1) 42’ x 12’ tri-vision panel on the North tower scoreboard.
	 
	 	•	 	One (1) in stadium LED rotation per Seahawks home game.
	 
	 	•	 	One (1) 28’ x 4’ backlit interior Qwest Field Event Center panel.
	 
	 	•	 	One (1) 2’ x 2’ Qwest Field Event Center exterior sign.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit D

Advertising, Tickets and Hospitality

	1.	 	Opportunity to [***] to [***] prior to [***]. [***] and to be mutually agreed upon.
	 
	2.	 	[***] Club season tickets.
	 
	3.	 	For the 2009 season, Jones to receive one (1) suite with capacity for eighteen (18) at
Qwest Field for one (1) pre-season game and four (4) regular season games (dates to be
mutually agreed upon) and subject to the terms and conditions set out in the Suite License
Agreement attached hereto as Exhibit G.
	 
	4.	 	[***] tickets to each WaMu Theater public event
	 
	5.	 	[***] use of [***] and [***] [***] per year.

Playoffs. In the event the Team advances to the playoffs, Jones will be [***] of the
tickets for each round of the playoffs.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit E

Media

Seahawks Network Radio

	 	1.	 	[***] per [***]. Total of [***].
	 
	 	2.	 	[***] per [***]. Total of [***].
	 
	 	3.	 	[***] and [***] per [***]. Total of [***].
	 
	 	4.	 	[***] per [***]. Total of [***].

[***]: [***]; plus another [***] and [***] require incremental [***].

Seahawks Television

	 	1.	 	[***] in the [***] that are [***] and said [***] will be allocated to the [***] on a
pro rata basis, for example, if there are [***] and [***], there will be [***].

Seahawks.com

	 	1.	 	[***] throughout the [***] on a [***] in the following [***]: [***].
	 
	 	2.	 	[***] sent to [***]. Specific dates TBD and to be mutually agreed upon.
	 
	 	3.	 	[***] sent to [***]. Specific dates TBD and to be mutually agreed upon.
	 
	 	4.	 	[***] to [***] for [***].

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit F

Loaned Equipment Agreement

This Loaned Equipment Agreement (“Agreement”) dated effective July 1, 2009 is entered into by
and between Jones Soda Co., a Washington corporation (“Jones”); Football Northwest, LLC d/b/a
Seattle Seahawks, a Washington limited liability company (the “Team”), which owns and operates
the Seattle Seahawks, a National Football League team; and First & Goal, Inc., a Washington
corporation (“FGI”), which operates Qwest Field and Events Center (“Facility”). The term
“FNW/FGI” refers to Team and FGI, collectively.

1. The parties have entered into a Sponsorship Agreement of even date. Capitalized terms not
otherwise defined in this Agreement shall have the meaning set forth in the Sponsorship
Agreement.

2. Pursuant to the Sponsorship Agreement, FNW/FGI has granted certain rights to Jones to sell
Jones Beverages at the Facility, and Jones has agreed to provide certain equipment, as more
fully described in Exhibit A to this Agreement, (the “Equipment”) for the sole and exclusive
purpose of storing and delivering Jones Beverages.

3. Title to the Equipment shall at all times remain in Jones. Jones agrees to permit FNW/FGI to
retain exclusive use and control of the Equipment at the Facility for the term of the
Sponsorship Agreement solely for the use contemplated herein and in the Sponsorship Agreement.

4. FNW/FGI shall not sell or display any Beverages or other products of any kind other than
Jones Beverages in connection with the Equipment, or alter or modify any product identification
or ownership information on or in the Equipment.

5. FNW/FGI will supply all electrical service as may be necessary to operate the Equipment.
FNW/FGI will keep the Equipment clean and in first-class condition as to appearance. FNW/FGI
shall use reasonable care in the operation of the Equipment, and shall follow all instructions
for care as may be provided by Jones or the Equipment manufacturer. Extension cords shall not
be used in connection with the operation of any Equipment without the express consent of Jones.

6. FNW/FGI will promptly notify Jones in the event any repair or service is required and Jones will
provide the same. Jones shall be responsible for all maintenance and repairs to the Equipment and
will provide such services from time to time as necessary. In the event that the Equipment cannot
be repaired at the Facility, Jones may in its discretion provide replacement Equipment. Neither
Jones nor its service agent shall be responsible for any delays in repairing or replacing any
Equipment. Routine cleaning shall be the responsibility of FNW/FGI. FNW/FGI will take all
reasonable steps to protect the Equipment from damage and loss of any kind while it is in FNW/FGI’s
possession. In the event accelerated maintenance, repair, or replacement of any

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Equipment is
necessary due to the fault of FNW/FGI, its food service contractor, or any third party while at
the Facility, then Jones shall have the right to bill back to FNW/FGI the cost for such
maintenance, repair, or replacement.

7. FNW/FGI shall not move the Equipment from the Facility. Upon request, FNW/FGI shall execute
such documents as may be necessary or convenient to establish and give notice of Jones’
ownership of the Equipment. FNW/FGI shall not permit or cause any lien of any kind to be
placed upon the Equipment or grant any security interest therein. In the event of bankruptcy,
insolvency, receivership, change of control or breach of a material provision of this
agreement, the cooler will continue to remain the property of Jones.

8. Upon termination or expiration of the Sponsorship Agreement, all of the Equipment shall be
returned to Jones, free of any damage by FNW/FGI, its food service contractor, or any third
party, ordinary wear and tear excepted.

9. Sections 12 through 15 of the Sponsorship Agreement are incorporated by this reference as
though fully set forth herein, mutatis mutandi.

	 	 	 	 	 	 	 
	JONES SODA CO

	 	FOOTBALL NORTHWEST, LLC

d/b/a Seattle Seahawks
	 	 
	 
	 	 	 	 
	By: 	 	 	By: 	 	 	 
	 	President & CEO

	 	 	Ron Jenkins

Vice President Corporate Partnerships	 	 
	 
	 	 	 	 
	 	 

	 	FIRST & GOAL, INC.	 	 
	 
	 	 	 	 
	 	 

	 	By: 	 	 	 
	 

	 	 	 	Susan Darrington

VP/Facility General Manager	 	 
	 
	 	 	 	 

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit G

SEATTLE SEAHAWKS

SUITE LICENSE

Suite Designation: Club Level

Suite No.: 27

Seahawks Account No.: 3805408

     This Suite License (the “License”) is dated this            day of July  , 2009, by and between
FOOTBALL NORTHWEST LLC, a Washington Limited Liability Company, d/b/a the SEATTLE SEAHAWKS (the
“Team”), with offices at 800 Occidental Avenue South, Suite #200, Seattle, Washington 98134, and
the person or entity identified as “Licensee” in Section 1(a) hereto.

BACKGROUND

     A. The Team is the owner of the National Football League (“NFL”) franchise for Seattle,
Washington, and plays under the name of the Seattle Seahawks.

     B. FIRST & GOAL INC. (“FGI”), an affiliate of the Team, under a series of agreements with the
Washington State Public Stadium Authority, has developed a state-of-the-art outdoor football and
soccer stadium (the “Stadium”) and adjacent indoor exhibition hall and associated parking
facilities (all such facilities and the adjacent properties together being the “Stadium and
Exhibition Center”) as the Team’s home facility.

     C. FGI also operates the Stadium. For purposes of this License, in certain circumstances the
“Team” shall be deemed to include FGI.

     D. The Stadium currently includes approximately 113 private viewing suites (“Private Suites”),
the access to which is generally prohibited to general admissions ticket holders.

     E. As used herein, the following terms shall have the following meanings:

          i “Home Games” means all home games of the Team played in the Stadium by the Team, comprised
of every Preseason Home Game, Regular Season Home Game and Playoff Home Game.

          ii “Preseason Home Game” means any Home Game other than a Regular Season or Playoff Home Game.

          iii “Regular Season Home Game” means a Home Game scheduled by the NFL as part of the Team’s regular
NFL playing season.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

          iv “Playoff Home Game” means any post-Regular Season Home Game for which the Team qualified by
reason of its Regular Season record, which is related to the determination of the NFL Conference
Champion. Playoff Home Games do not include the Super Bowl (League Championship game).

          v “NFL Season” is a single NFL playing season which includes the Team’s Preseason Home Games,
Regular Season Home Games and Playoff Home Games.

AGREEMENT

     In consideration of the mutual covenants and agreements set forth in this License, the Team
and Licensee hereby agree:

     Licensee Information.

     Licensee:

	 	 	 
	Licensee’s Name:

	 	Jones Soda Co.
	Contact Person:

	 	Joth Ricci
	 
	 	 
	Address:

	 	234 Ninth Avenue N
	 

	 	Seattle, WA 98109
	 
	 	 
	Phone No:

	 	206.624.3357
	Fax No:

	 	206.624.6857
	E-mail:
	 	 

     Suite Designation:

Suite Designation: Club Level            Suite No.: 27

Suite Capacity: 18 (comprised of seating capacity for 12 persons in upholstered
chair seats and 6 persons in bar stool-type seating, facing the playing field, (or
disabled person equivalent)).

     Term:

The Term described in Section 3 is for one (1) License Year.

     [***] Fee:

[***] is included in the [***] set forth in [***].

     Security Deposit:

     The Security Deposit described in Section 14 is [***].

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

     Parking:

     This Suite is entitled to parking passes for parking 6 vehicles in the Private
Suites Parking Area for each Home Game as described in Section 6(d).

     Suite Inspection:

     Licensee inspected the Suite described in Section b. above on _________, 2007.

     Grant of License; Suite. Subject to the terms and conditions set forth in this
License, the Team hereby grants to Licensee: (a) a license to use of one of the Private Suites
designated as described in Section 1(b) (the “Suite”) for the purpose of viewing one (1) preseason
and four (4) regular season Team Home Games during each NFL Season during the Term of this
License.;.

     The Suite is located generally as shown in the diagram attached hereto as Exhibit A.
The Suite will be generally configured and furnished as the Suite inspected by Licensee on the date
shown in Section 1(g). However, it is understood by the parties that the Stadium or the Suite may
be in the design and construction phase, and that the location and design details of the Suite,
including its amenities, furniture, fixtures and equipment contained therein, may change as a
result of subsequent design changes to the Stadium or Suite, and no such change shall affect the
parties’ rights and obligations hereunder. Neither the Suite inspected on the date shown in Section
1(g), Exhibit A, or Exhibit B to this License, nor any promotional or marketing
materials shown or given to Licensee shall constitute either an express or implied warranty with
respect to the Suite.

     Term of License. The term of this License (the “Term”) shall commence the later of
(x) July 15, 2009, , (the “Commencement Date”), and shall expire on midnight of the 31st day of May
of the final License Year of the Term described in Section 1(c) hereto. A “License Year” is the
period from June 1 of one calendar year (or the Commencement Date in the case of the First License
Year) to May 31 of the following calendar year. The License applies to each of the Home Games
during the NFL Season occurring during each License Year.

     License Fee.

          Licensee shall pay to the Team an annual license fee (the “License Fee”) comprised of [***], ,
plus [***], in the [***] of the [***] of the [***] established by the NFL for each such [***]
during that NFL Season [***] the [***] of the [***], for each possible [***] playable that [***],
as determined by the Team. Notwithstanding the foregoing, Jones is entitled to [***] of the [***]
in the [***] for any [***].

          The [***] is due and payable in advance of any [***] at such dates and for such number of [***] as
determined by the Team. In the event the number of [***] actually played by the Team in that NFL
Season is less than the number of [***] determined by the

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Team for that NFL Season, the excess paid shall be applied as a credit to the [***] for the
next License Year, if applicable, or if not applicable, shall be refunded to Licensee.

          In addition to the annual License Fee, Licensee shall pay any insurance premiums required
pursuant to this License, and any applicable sales, use, excise and admissions taxes and
governmental assessments imposed on or with respect to the Suite and/or admission tickets provided
or sold to Licensee hereunder. Any License Fee or other monetary obligation under this License not
paid within ten (10) days of the date due shall bear interest at the rate of twelve percent (12%)
per annum from the date due until paid. In addition, in the event Licensee shall fail to pay the
Playoff Tickets Fee, or any other monetary obligation due under this License within ten (10) days
after notice of non-payment from the Team, Licensee shall pay a late fee equal to four percent (4%)
of the amount due.

          In the event that the Suite is not completed and available for occupancy for any Regular
Season Home Game during any part of the 2009-2011 NFL Season (or, if the Suite is not available, a
reasonably comparable or better Private Suite is not temporarily made available to Licensee), the
[***] shall be reduced for that License Year in proportion to the fraction computed by subtracting
from the number one (1) another fraction (x) the numerator of which is the number of Regular Season
Home Games played by the Team during that NFL Season for which the Suite (or equivalent) is
available, and (y) the denominator of which is the number of Regular Season Home Games originally
scheduled for that NFL Season, and the amount of such reduction shall be applied first, to the
[***] for the 2009-2011 NFL Season, if any, and second, as a credit to the [***] for the next
License Year. For purposes of this Section, the [***] will be deemed to be [***]. (By way of
example, if eight Regular Season Home Games are scheduled but only seven are played, the reduction
is in proportion to a fraction equal to [1 — 7/8], i.e., equal to 0.125 of the [***].)

     Admission Tickets; Opportunity to Purchase Tickets to Certain Other Events. Only
individuals holding tickets designated as “Suite Tickets” for a particular scheduled game or event
will be admitted to the Suite during that game or event.

          So long as Licensee is not in default hereunder, during each NFL Season during the Term of
this License, the Team shall provide to Licensee the number of admission tickets to the Stadium and
Suite equal to the Suite Capacity as described in Section 1(b) for access to the Stadium and the
Suite for one (1) TBD preseason game and four (4) TBD regular season home Games.

     Services and Other Benefits Provided With the Suite.

          Food and Beverages. Food and beverage services shall be provided by a caterer or caterers
licensed by the Team at Licensee’s expense. Licensee shall pay on a timely basis all charges and
expenses for catering, including applicable taxes, incurred by Licensee in connection
with the use of the Suite by Licensee and Licensee’s invitees. No food or beverages other than
those purchased from such licensed caterer or caterers may be brought into or be prepared or
consumed in the Suite.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

          Repairs and Maintenance by the Team. The Team will be responsible for ordinary
repairs and maintenance to the interior and exterior of the Suite (including ordinary cleaning,
sweeping, vacuuming, trash removal and dusting). The Team reserves the right to charge Licensee
for, and Licensee shall pay, the costs and expenses of what the Team reasonably considers to be
extraordinary repairs, maintenance, replacements or cleaning of the Suite which may be incurred as
a result of any act or omission of Licensee.

          Utilities; Telephone Service. Heating and air conditioning (in the interior portion
of the Suite), electricity and hot and cold running water will be furnished to the Suite at no cost
to Licensee. An indoor telephone and telephone jack will be included in the initial furnishings
provided for the Suite. In no event shall the Team be liable for any damages by reason of any
interruption in any of the foregoing utility services.

          Parking. Licensee shall receive, at no additional cost, for each Home Game the number
of parking passes (each entitling the holder to park one vehicle) as set forth in Section 1(f) for
parking within the “Private Suites Parking Area.” To be eligible to park in such Private Suites
Parking Area, the vehicle must conform to reasonable requirements of the Team as to size, including
height. Such parking shall be available beginning a reasonable period of time preceding each Home
Game through a reasonable period of time following the conclusion of such Home Game. Such periods,
and such other rules governing parking, shall be determined from time-to-time by the Team.

     Furnishings, Decor and Alterations.

          At the commencement of Licensee’s use of the Suite hereunder, the Suite shall be furnished and
equipped with the standard amenities, furniture, fixtures and equipment as set forth in Exhibit
B. At Licensee’s option, the Team shall affix an exterior (i.e. at the doorway in the access
hallway) nameplate to the Suite identifying Licensee which shall be of a design and nature approved
by the Team to ensure uniformity, which approval may be withheld in its sole discretion.

          Licensee may not make any changes, including but not limited to structural changes, to the
exterior, of the Suite under any circumstance. Licensee may make changes, alterations or additions
in the interior of the Suite or the amenities, furniture, fixtures or equipment therein, but only
with the prior written approval of the Team. The Team may withhold such approval in its sole
discretion. In order to be considered for approval by the Team, any proposed changes, alterations
or additions must be (i) in good taste and consistent with the overall quality of the Suite and the
standards of design, quality, style and appearance of the Private Suites generally, (ii) undertaken
and completed during periods of time when the Private Suites and the Stadium are not in use as
determined by the Team, (iii) completed at Licensee’s sole cost and expense, leaving the property
free of any liens, (iv) completed in a good and workmanlike manner, and (v) in compliance with
applicable permits, authorization, building and zoning laws and all other laws and ordinances and
other legal requirements that may apply. Any fixtures or materials incorporated in or attached to
the Suite by Licensee shall become the property of the Team (and/or the owner of the Stadium) unless Licensee has
received the Team’s written consent or direction to remove them before

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

the expiration of the Term, in which case Licensee shall restore the Suite to its original condition. Licensee, at
its sole cost and expense, may hang and install a limited number of works of art in the Suite,
provided that the Team has previously consented in writing to such works of arts and the method and
location of installation and removal. Licensee shall bear the entire risk, and the Team shall have
no liability or obligation whatsoever, with respect to any changes, alterations or additions to, or
any works of art installed in, or any of Licensee’s personal property (which for purposes of this
Section includes personal property of any of Licensee’s invitees or agents), brought into, the
Suite by Licensee (including without limitation obligations related to security, loss, damage,
maintenance, repair or replacement), and Licensee acknowledges that there may be third-parties who
will have access to and use of the Suite during the Term. Notwithstanding the Team’s approval,
none of the changes, alterations or additions to, or any works of art installed in, or any of
Licensee’s personal property brought into, the Suite by Licensee may be visible from the Stadium
seating bowl or the playing field, or may interfere in any way with any spectator’s viewing and
enjoyment of any Home Game or other event, either from inside or outside the Suite. None of the
changes, alterations or additions to, or any works of art installed in, or any of Licensee’s
personal property brought into, the Suite by Licensee shall be in the nature of any commercial or
political advertising or promotion.

     Use and Enjoyment. Licensee and Licensee’s invitees (e.g., guests) shall be entitled
to use the Suite at times for which appropriate tickets for admission to the Suite have been
obtained and the Stadium is intended to be open for use by the general public, and on non-event
days during normal business hours with the prior consent of the Team. Licensee and Licensee’s
invitees shall be bound by and shall observe the terms and conditions upon which tickets for
admission to the Stadium have been issued by the Team or the sponsor or promoter of each event
including, without limitation, (i) any policies, rules or regulations which may be created by the
Team from time-to-time with regard to the use of the Suites, and (ii) the policies adopted by the
promoter of such events from time-to-time with respect to the cancellation or postponement of the
event.

     For reasons including the protection of Licensee and invitees of Licensee, the Team retains
the right to control access to all of the Private Suites at the Stadium. Licensee acknowledges
that this License is merely a license permitting Licensee limited access to the Suite for certain
events scheduled at the Stadium. Access to the Private Suite Level shall be allowed only to
persons holding appropriate tickets or passes. The Suite shall be provided with a lock system,
although the Team shall have no obligation to provide security for the Private Suites, and shall
have no liability related to security.

     This License provides Licensee only with the right and privilege to use and enjoy the Suite in
the manner set forth herein, and except as pertains to the special right and privilege to so use
and enjoy the Suite, this License does not confer upon Licensee or Licensee’s
invitees any greater or lesser rights and privileges with respect to admission to the Stadium than
afforded to other holders of tickets for admission to the Stadium.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

     To the extent the Suite is not utilized by Licensee for any event described in Section 5(b)(iv),
the Suite may be utilized by others as allowed by the Team. Licensee has no exclusive possessory
interest in the Suite.

     Covenants of Licensee. Licensee covenants as follows:

          Good Repair. Except for ordinary wear and tear, Licensee shall keep and maintain the
Suite in good repair, order and condition at all times, and Licensee will reimburse the Team for
the repair of any damage caused to the Suite or the Team’s property in the Suite by Licensee or any
of its invitees. Any damage caused by persons other than Licensee or any of its invitees shall be
the responsibility of and shall be repaired by the Team or the manager of the Stadium.

          Compliance with Laws, Rules and Regulations; Alcoholic Beverages. Licensee shall
abide by, and shall notify and require its invitees to abide by, all applicable public laws,
regulations and ordinances, by governing orders, and by such policies, rules and regulations as the
Team or the manager of the Stadium shall establish from time-to-time concerning the use and
occupancy of the Suite, the Stadium and Exhibition Center generally, and the Private Suites Parking
Area, including drinking alcohol responsibly. Any policies, rules and regulations established by
the Team or the manager of the Stadium with respect to the use and occupancy of the Suite, the
Stadium and Exhibition Center generally, and the Private Suites Parking Area, by Licensee and its
invitees shall be enacted on a uniform basis and shall apply equally to all holders of Private
Suites.

     Licensee and its invitees shall at all times maintain proper decorum while using the Suite.
Licensee shall be responsible for its actions as well as those of its invitees, including, but not
limited to, actions arising from the consumption of alcoholic beverages. Should Licensee or any of
its invitees create a disturbance or cause objects to be thrown or dropped from the Suite, in
addition to its other remedies, the Team shall have the right to eject the parties responsible for
such action, or all the persons in the Suite, from the Stadium, and after a second such occurrence
during the Term, to exercise any of the Team’s rights upon default in accordance with the
provisions of Section 11 of this License.

          Reproduction and Transmission of Event. Neither Licensee nor any of its invitees
shall film, photograph, record or transmit from the Suite or any other portion of the Stadium all
or any portion of any Home Game or other event, or any description thereof, by any means (including
without limitation radio, television, or internet broadcasting), whether broadcast “live” or by
means of film or tape.

          Advertising. Neither Licensee nor any of its invitees shall attach in any fashion or
otherwise display any signs, banners, notices or advertisements on the exterior or
the interior of the Suite, other than those approved in advance by the Team in its sole
discretion.

     Default. In the event Licensee fails to pay when due any amounts to be paid by Licensee
pursuant to this License or otherwise defaults in the performance or observation of its duties and
obligations under this License, and Licensee shall fail to cure same within ten

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

(10) days after
notice from the Team, such event shall be deemed to be an “Event of Default” hereunder. Upon the
occurrence of an Event of Default, the Team, at its option, without further notice or demand to
Licensee, may, in addition to all other rights and remedies provided in this License or available at law or in equity, elect one or more of the following
remedies:

          Terminate this License and Licensee’s right to use and enjoy the Suite, and recover all
damages to which the Team is entitled under law, specifically including but not without limitation,
all of the Team’s expenses of re-licensing the Suite (including, without limitation, concessions to
new licensees, repairs, alterations, commissions, and legal fees). If the Team elects to terminate
this License, every obligation of the parties shall cease as of the date of such termination,
except that Licensee shall remain liable for payment of the License Fee, performance of all other
terms and conditions of this License to the date of termination, and performance of all other terms
and conditions of this License which expressly survive termination hereof;

          Terminate Licensee’s right to use and enjoy the Suite without terminating this License, in
which event the Team may, but shall not be obligated to, re-license the Suite, or any part thereof,
for the account of Licensee, for such License fee and term and upon such other conditions as are
acceptable to the Team. For purpose of each re-licensing, the Team is authorized to redecorate,
repair, alter and improve the Suite to the extent necessary in the Team’s reasonable discretion.
Until the Team re-licenses the Suite, Licensee shall remain obligated to pay the License Fee to the
Team as provided in this License. If and when the Suite is re-licensed and if a sufficient sum is
not realized from such re-licensing after payment of all of the Team’s expenses of re-licensing
(including, without limitation, concessions to new licenses, repairs, alterations, commissions and
legal fees) to satisfy the payment of the License Fee due under this License, Licensee shall pay
the Team any such deficiency upon demand. The Team shall use reasonable efforts to re-license the
right to the use and enjoyment of the Suite to another party; provided, however, that if there are
any other Private Suites in the Stadium available to be licensed, the Team may give priority to
licensing such other Private Suites. The Team may demand arbitration pursuant Section 17(g) to
recover any sums due the Team under this Section 11(b) from time-to-time and that award of any
amount due the Team shall not be any defense to any subsequent action brought for any amount not
previously reduced to judgment in favor of the Team;

          Declare the entire amount of the [***] for the remaining portion of the Term of this License
to be immediately due and payable, and recover from Licensee the net present value of the remaining
License Fee payments due from Licensee until the expiration date of this License, discounted at a
rate of five percent (5%) per annum; and

          In addition to the foregoing, re-enter and repossess the Suite and remove all persons and
effects therefrom, by summary proceeding, ejectment or other legal action or by using such force as
may be necessary, and the Team shall have no liability by reason of any such re-entry, repossession
or removal.

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

     If the Team retakes possession of the Suite pursuant to this Section 11, with or without
terminating this License, the Team may, at its option, remove Licensee’s alterations, signs,
personal property, equipment and other evidences of Licensee’s use of the Suite, and store them at
Licensee’s risk and expense or dispose of them as the Team may see fit, and take and hold
possession of the Suite. In addition, any tickets previously issued to Licensee shall be invalid
(whether or not any may appear to be “honored” by any ticket-taker or other representative of the
Team, e.g., even if an invalid ticket is presented at the Stadium and not rejected and access to
the Stadium or Suite is obtained) and any holder of any such invalid ticket who gains access to the
Stadium or the Suite may be summarily ejected.

     The foregoing remedies of the Team shall not be to the exclusion of any other right or remedy
set forth herein or otherwise available to the Team at law or in equity. The prevailing party in
any litigation concerning the subject matter hereof shall be entitled to recover all attorneys’
fees and costs incurred, with or without suit and on appeal.

     No waiver by the Team of any default or breach by Licensee of its obligations hereunder shall
be construed to be a waiver or release of any other subsequent default or breach by Licensee
hereunder and no failure or delay by the Team in the exercise of any remedy provided for herein
shall be construed a forfeiture or waiver thereof or of any other right or remedy available to the
Team.

     Failure to Play Home Games.

     In the event the Team fails to play the number of Preseason and Regular Season Home Games scheduled
during any NFL Season, or in the event such Preseason and Regular Season Home Games are scheduled
and played but the Suite is not available to view such Home Games and a reasonably comparable or
better Private Suite is not temporarily made available to Licensee, for any reason (including
without limitation strike, lockout, adverse weather, act of god, damage or destruction of the
Stadium or Suite, changes in NFL scheduling, or other changes required or allowed by the NFL), then
Licensee’s sole and exclusive remedy shall be that the [***] payable hereunder shall be reduced.
The reduction shall be in proportion to a fraction computed by subtracting from the number one (1)
another fraction (x) the numerator of which is the number of Regular Season Home Games played by
the Team during an NFL Season for which the Suite (or equivalent) is available, and (y) the
denominator of which is the number of Regular Season Home Games originally scheduled for that NFL
Season. (By way of example, if eight Regular Season Home Games are scheduled but only seven are
played, the reduction is in proportion to a fraction equal to [1 — 7/8], i.e., equal to 0.125 of
the [***].) Notwithstanding the failure to play the number of Regular Season Home Games originally
scheduled for an NFL Season for any reason, except as provided below, this License shall remain in
full force and effect during the period of any circumstance preventing the playing of any scheduled
Preseason or Regular Season Home Game, unless the Team determines in good faith that such
circumstance may be long term or permanent, in which case by giving of notice to Licensee this
License shall terminate. Any such abatement of the [***] shall be computed annually and shall be
applied as a credit to the [***] for that NFL Season, if any, and then as a credit to the [***]
payable for the next License Year, if applicable, or if not applicable, shall be refunded to Licensee. Any game

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

which
is rescheduled and played, without regard to the day, date, time, or the method or amount of notice
of rescheduling given (but in any event notice is deemed adequate by announcement to the regular
local sports press), is considered played for purposes of this License. The Team shall have no
liability to Licensee under any circumstance on account of (a) any cancellation or other
non-performance of any game or event other than a Home Game, or (b) any other deficiency in the
conduct of any game or event including any Home Game. In the event that the Team shall permanently
cease playing their Home Games at the Stadium for any reason, then the Team may terminate this
License by written notice to Licensee without in any way incurring any liability to Licensee
described above as a result of such termination, except for the obligations to return any remaining
Security Deposit (subject to the provisions of Section 15) and to return any License Fee relating
to originally scheduled Home Games not actually played in the Stadium (in accordance with the
formula above).

     Right of Entry by the Team. The Team (including for purposes of this Section, its
employees, agents and contractors, and public officers) shall have access to the Suite at any time
(including during Home Games and other events) to the extent deemed necessary by the Team (a) for
the performance of its obligations hereunder and for any and all purposes related thereto, (b) to
investigate any suspected violations of the terms and conditions of this License, or (c) otherwise
in connection with its interest in the Suite. Licensee shall not interfere with the Team’s right
of access, including by installation of additional or changed locks or otherwise. At the
instruction of the Team, Licensee shall immediately cease and desist from any activity the Team
deems dangerous, in violation of the terms and conditions of this License, or objectionable (e.g.,
excessive consumption of alcoholic beverages), and failure to comply with such instruction shall be
grounds for ejection from the Stadium.

     Disclaimer of Liability; Risk of Loss; Indemnification.

          For purposes of this Section:

               “Licensee Parties” include Licensee and its invitees, and their respective shareholders,
members, partners, affiliates, directors, officers, employees, agents, contractors, licensees and
invitees.

               “Team Parties” include Football Northwest LLC, First & Goal Inc., the Washington State Public
Stadium Authority, the National Football League, other NFL teams, the Stadium concessionaire, other
event sponsors, promoters and participants, the press, and their respective shareholders, members,
partners, affiliates, directors, officers, employees, agents, contractors, licensees and invitees.

               “Indemnified Liabilities” include all liabilities, damages, losses, claims, demands, costs and
expenses, including attorneys’ fees and litigation expenses, related to any personal injury,
property damage, or economic loss, arising out of or in connection with the use or occupancy of the
Suite, Stadium, or Stadium and Exhibition Center by any of the Licensee Parties, and/or the
management of the Suite, Stadium or the Stadium and Exhibition Center, and/or the presentation of
any game or other event by any of
the Team Parties, resulting from any cause whatsoever, including but not limited to acts or

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

omissions of any of the Team Parties or of third-parties or of unknown parties (including any
related to or caused by the conduct of, by any participant in, or by others in attendance at, any
Home Game or other game or event held at the Stadium and Exhibition Center), whether arising prior
to, during or subsequent to, the performance of any Home Game or other game or event, or by
violation of the provisions of this License or of any applicable laws, rules, regulations or order
of any governmental agency having jurisdiction.

          Neither the Team nor any of the other Team Parties shall be liable for any Indemnified
Liability to Licensee or any of the other Licensee Parties, and Licensee, for itself and all other
Licensee Parties, hereby assumes all risk related to Indemnified Liabilities, unless due to gross
negligence or willful misconduct of the Team.

          Licensee, for itself and all other Licensee Parties, hereby releases the Team and all other
Team Parties from every Indemnified Liability, and shall defend, indemnify and hold the Team and
all other Team Parties harmless from and against every Indemnified Liability, unless due to gross
negligence or willful misconduct of the Team.

          Licensee shall, at its sole cost and expense, obtain and keep in full force and effect at all
times during the Term of this License, the following described insurance policies (“Policies”):
(i) a Commercial General Liability insurance policy with an each occurrence limit of at least One
Million Dollars ($1,000,000.00), a Fire Damage legal limit of at least Fifty Thousand Dollars
($50,000), and a Medical Expense limit of at least Five Thousand Dollars ($5,000) written on
Insurance Service Office (ISO) Form CG 00 01 (07/98) (or its equivalent), for the performance by
Licensee of the indemnity provisions of this License; and (ii) All Risk Property insurance covering
any personal property, furniture or fixtures brought into or installed in or changes, alterations
or additions made to the Suite by Licensee and any of the other Licensee Parties. Prior to the
Commencement Date, Licensee shall deliver to the Team a certificate evidencing the issuance of such
Policies. Licensee’s Policies and certificate evidencing such Policies shall (a) name Football
Northwest LLC, First & Goal Inc., the Washington State Public Stadium Authority, and the NFL as
additional insureds, (b) contain a provision by which the insurer agrees that the policy shall not
be canceled except after 30 days written notice to the Team, (c) be issued by Insurance companies
reasonably satisfactory to the Team which are qualified to do business in the State of Washington,
and (d) provide that the insurers under the Policies waive subrogation. Any liability insurance
carried or to be carried by Licensee shall be primary over any policy carried by the Team. Policy
limits and coverages described in this Section shall be reviewed every three (3) years by the Team
and adjusted, in its sole discretion, to reflect inflation or deflation, changes in coverage
customarily required for similar risks and other relevant factors. If Licensee shall fail to obtain
or maintain the required Policies, the Team may, at its option, obtain the Policies on Licensee’s
behalf, using reasonable efforts to obtain such insurance at a reasonably competitive rate, and the
cost of such insurance shall be immediately due and payable upon demand of the Team. The Team
shall obtain property insurance for the Suite, but such insurance will not cover any personal
property, furniture or fixtures brought into or installed in or changes, alterations or additions
made to the Suite by Licensee or any of the
other Licensee Parties. Neither this subsection nor any Policies shall limit Licensees
obligations under this Section.

 [***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

     Security Deposit. [***]

     Miscellaneous.

          Surrender. Upon the expiration of the Term of this License or upon the earlier
termination of this License, Licensee shall surrender possession of the Suite to the Team in the
condition in which it was originally delivered to Licensee, except for normal wear and tear, and
damage caused by casualty or force beyond control of Licensee or its invitees.

          Assignment by Licensee. Licensee may, upon prior notice to the Team, assign this
License to any “affiliate” of Licensee, or any corporation or other entity which succeeds to all of
the rights and obligations of Licensee as a result of merger, consolidation or other corporate
reorganization. Any such assignment, however, shall not relieve Licensee of its obligations
hereunder and Licensee shall thereupon remain equally liable with the assignee of this License for
all of the obligations of the “Licensee” hereunder. Except as described in the immediately
preceding two sentences, Licensee shall have no right to assign this License or sublicense, pledge
or otherwise transfer or encumber the Suite or this License, or any of Licensee’s rights and
obligations, hereunder without the prior written consent of the Team which consent may be withheld
in its sole discretion. If amounts paid by Licensee hereunder are shared by any other person,
firm, corporation or entity, the Team must be provided with notice of the name or names of persons,
firms, corporations or other entities; provided, however, such notice shall not limit Licensee’s
liability hereunder. Any attempted sale, assignment, sublicense, pledge, transfer or encumbrance
in contravention of the foregoing shall be null and void and of no effect. For purposes hereof, an
“affiliate” of Licensee shall be any person, firm or corporation which, directly or indirectly,
controls, is controlled by, or is under common control with, Licensee (where “control” means
ownership and control of in excess of fifty percent (50%) of the outstanding equity and voting
interests).

          Assignment by the Team; Subordination. The Team may mortgage, pledge, assign or
otherwise encumber the Suite, this License and/or the Security Deposit as security for financing
the facilities operated by the Team in the Stadium or for other purposes of the Team, and that, in
such event, this License and the rights and interests of Licensee hereunder shall be subject and
subordinate thereto.

          Notices. All notices, demands and other communications between the parties required
or appropriate hereunder shall be in writing and deemed received upon actual delivery or fax to the
address set forth above for the Team and to the address/fax number set forth in Section 1(a) for
Licensee, or to such other address/fax number as may be designated by either party, from time to
time, in writing.

          Governing Law; Venue. This License governs rights to a suite located in King County,
State of Washington and it shall be governed by, and construed and enforced in accordance with, the
laws of the State of Washington, without regard to any otherwise
applicable principles of conflicts of law. Venue of any arbitration proceedings or court
proceedings if permissible under Section 16(g) arising out of or relating to this License shall

 [***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

lie
exclusively in either arbitration forums or in the state or federal courts located in Seattle,
Washington.

          Captions. The captions and titles of the sections and subsections in this License are
for the convenience of reference only and shall not limit or otherwise affect any of the terms
hereof.

          Dispute Resolution. Any dispute or claim that arises out of or relates to this
License shall be submitted to non-binding mediation administered by the American Arbitration
Association (“AAA”) under its then effective Commercial Mediation Rules, or to another mediator if
the parties so agree. Thereafter, any unresolved dispute or claim arising out of or relating to
this License shall be resolved by final and binding arbitration administered by the AAA, or another
arbitrator if the parties so agree, in accordance with the AAA’s then effective Commercial
Arbitration Rules. Notwithstanding the otherwise exclusive dispute resolution procedures set forth
in this Section 16(g), the Team may, in its sole discretion, exercise any of its self-help remedies
available by law or under this License, or file suit directly in court to seek injunctive relief
against Licensee or to obtain relief under all applicable forcible entry and detainer statutes.
The arbitrator(s) are directed to issue a final award no more than 90 days after the initial demand
for arbitration, but any failure to timely issue a final award shall neither deprive the
arbitrator(s) of jurisdiction nor invalidate a subsequent award.

          Attorneys’ Fees and Costs. The substantially prevailing party in any judicial or
arbitration proceeding arising out of or relating to this License shall be reimbursed by the other
party hereto for all costs, disbursements, expenses and attorneys’ fees (collectively, the
“Costs”). Costs include, without limitation, all attorneys’ fees incurred in negotiations,
mediations, arbitrations, trials, administrative proceedings, bankruptcy proceedings and any
appeals from any such proceedings, as well as post-judgment collection efforts.

          Integration. This License, together with the Exhibits annexed hereto, contains the
entire agreement of the parties with respect to the matters provided for herein, and shall
supersede any written instrument or oral agreement previously made or entered into by the parties
hereto. In particular, this License shall supersede the terms and conditions of any promotional or
marketing materials shown or provided to Licensee in connection with the Suite.

     The following Exhibits are annexed hereto and made a part hereof:

	 	(1)	 	Exhibit A — Diagram of the Stadium showing the
approximate location of the Suite.
	 
	 	(2)	 	Exhibit B — Fixtures, Furnishings and Equipment of
the Suite.

          Severability. If any term, covenant, or condition of this License or the application
thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this License or such other documents, or the application of such item, covenant, or
condition to persons or circumstances other than those as to which it

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

is held invalid or
unenforceable, shall not be affected thereby, and each term, covenant, or condition of this License
or such other documents shall be valid and shall be enforced to the fullest extent permitted by
law.

          Successors and Assigns. This License, and all the terms and provisions hereof, shall
inure to the benefit of and be binding upon the parties hereto, and their respective heirs,
executors, administrators, personal representatives, successors and permitted assigns.

          Modifications in Writing. No amendment or modification to this License shall be
effective unless in writing and signed by the party bound thereby.

          Joint and Several Liability. All of the persons or entities constituting Licensee
shall be jointly and severally liable for all of the obligations of Licensee contained herein.

          Time of the Essence. Time shall be of the essence in the performance of the terms and
conditions of this License.

     DATED as of the date above first written.

	 	 	 	 	 
	 	TEAM:

Football Northwest LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	Amy K. Sprangers 	 
	 	 	Title:  	Director of Suite Sales and Services 	 
	 
	 
	 	LICENSEE (Entity):

Jones Soda Co.

 	 
	 	By:  	
 	 
	 	 	Name:  	Joth Ricci 	 
	 	 	Title:  	President & CEO 	 

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

	 	 	 	 	 

EXHIBIT A

DIAGRAM OF PROPOSED LOCATION OF SUITE

[Attached following this page]

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

Exhibit H

Dispensers and Coolers

	 	 	 	 	 
	 	 	 	 	Existing
	 	 	Fountain	 	Single-
Door
	Location	 	Machines	 	Coolers
	 
	 
	 	 	 	 
	131

	 	[***]
	 	[***]
	133

	 	[***]
	 	[***]
	135

	 	[***]
	 	[***]
	137

	 	[***]
	 	[***]
	139

	 	[***]
	 	[***]
	 
	 	 	 	 
	105

	 	[***]
	 	[***]
	107

	 	[***]
	 	[***]
	109

	 	[***]
	 	[***]
	 
	 	 	 	 
	111

	 	[***]
	 	[***]
	 
	 	 	 	 
	113

	 	[***]
	 	[***]
	116

	 	[***]
	 	[***]
	118

	 	[***]
	 	[***]
	 
	 	 	 	 
	120

	 	[***]
	 	[***]
	122

	 	[***]
	 	[***]
	124

	 	[***]
	 	[***]
	126

	 	[***]
	 	[***]
	 
	 	 	 	 
	300

	 	[***]
	 	[***]
	303

	 	[***]
	 	[***]
	 
	 	 	 	 
	305

	 	[***]
	 	[***]
	307

	 	[***]
	 	[***]
	309

	 	[***]
	 	[***]
	311

	 	[***]
	 	[***]
	313

	 	[***]
	 	[***]
	314

	 	[***]
	 	[***]
	321

	 	[***]
	 	[***]
	323

	 	[***]
	 	[***]
	324

	 	[***]
	 	[***]
	330

	 	[***]
	 	[***]
	331

	 	[***]
	 	[***]
	333

	 	[***]
	 	[***]
	335

	 	[***]
	 	[***]

	 	 	 	 	 
	 	 	 	 	Existing
	 	 	Fountain	 	Single-
Door
	Location	 	Machines	 	Coolers
	 
	204

	 	[***]
	 	[***]
	208

	 	[***]
	 	[***]
	210

	 	[***]
	 	[***]
	214

	 	[***]
	 	[***]
	230

	 	[***]
	 	[***]
	234

	 	[***]
	 	[***]
	236

	 	[***]
	 	[***]
	240

	 	[***]
	 	[***]
	East Eye 

Bar

	 	[***]	 	 
	West Eye 

Bar

	 	[***]	 	 
	FSN Bar

	 	[***]	 	 
	 
	 	 	 	 
	Press Room

	 	[***]	 	 
	 
	 	 	 	 
	Portables

	 	[***]	 	 

	 	 	 	 	 
	MISC 2-Door Merchandisers
	 
	 
	 	 	 	 
	FSN Lounge

	 	 
	 	[***]
	Suite
	 	 	 	 
	Pantries

	 	 	 	[***]
	Warehouse

	 	 	 	[***]
	Vending

	 	 	 	[***]

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.

 

 

	 	 	 	 	 
	337

	 	[***]
	 	[***]
	339

	 	[***]
	 	[***]
	341

	 	[***]
	 	[***]
	344

	 	[***]
	 	[***]
	EX-HALL

	 	[***]
	 	[***]

[***] Indicates portions of this exhibit that have been omitted and filed separately with the
Commission pursuant to a request for confidential treatment under Rule 24b-2 of the Securities
Exchange Act of 1934, as amended.exv10w2

Exhibit 10.2

	 	 	 
	Name of Executive:
	 	Stuart L. Ralsky
	Position:
	 	Senior Vice President — Human Resources
	Fiscal Year 2010 Base Salary:
	 	$160,000
	 
	 	 
	Effective Date:
	 	September 8, 2009
	Initial Term:
	 	Effective Date through March 31, 2010
	Renewal Periods are:
	 	1 Year
	Post-Change of Control Renewal Period is:
	 	2 Years
	 
	 	 
	Severance Multiplier is:
	 	1.0x
	Post-Change of Control Severance Multiplier is:
	 	2.0x

EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

          This Agreement (“Agreement”) is between the Executive named above (“Executive”), on the one
hand, and Orion Energy Systems, Inc. (“Orion” and, together with its subsidiaries, the “Company”),
on the other.

          WHEREAS, Orion and Executive desire to specify the terms and conditions on which Executive
will commence employment with Orion as of the effective date set forth above (the “Effective Date”)
and under which Executive will receive severance in the event that Executive separates from service
with the Company.

          NOW, THEREFORE, for good and valuable consideration, the parties agree as follows:

          1. Effective Date; Term. This Agreement shall become effective on the date set forth
above and continue until the end of the initial term set forth above. Thereafter, the Agreement
shall renew automatically for successive renewal periods as set forth above unless and until either
party provides written notice to the other party of the intent not to renew the Agreement at least
ninety (90) days prior to the end of any term. Notwithstanding the foregoing, if a Change of
Control occurs prior to the end of any term, the Agreement shall be automatically extended for the
post- Change of Control renewal period set forth above beginning on the date of the Change of
Control. Expiration of this Agreement will not affect the rights or obligations of the parties
hereunder arising out of, or relating to, circumstances occurring prior to the expiration of this
Agreement, which rights and obligations will survive the expiration of this Agreement.

          2. Definitions. For purposes of this Agreement, the following terms shall have the
meanings ascribed to them:

     (a) “Accrued Benefits” shall mean the following amounts, payable as described herein:
(i) all base salary for the time period ending with the Termination Date; (ii) reimbursement
for any and all monies advanced in connection with the Executive’s employment for reasonable
and necessary expenses incurred by the Executive on behalf of the Company for the time
period ending with the Termination Date; (iii) any and all other cash earned through the
Termination Date and deferred at the election of the Executive or pursuant to any deferred
compensation plan then in effect; and (iv) all other payments and benefits to which the
Executive (or in the event of the Executive’s death,

 

 

the Executive’s surviving spouse or other beneficiary), including those provided
pursuant to Exhibit A, is entitled on the Termination Date under the terms of any benefit
plan of the Company, excluding severance payments under any Company severance policy,
practice or agreement in effect on the Termination Date. Payment of Accrued Benefits shall
be made promptly in accordance with the Company’s prevailing practice with respect to
clauses (i) and (ii) or, with respect to clauses (iii) and (iv), pursuant to the terms of
the benefit plan or practice establishing such benefits.

     (b) “Base Salary” shall mean the Executive’s annual base salary with the Company as in
effect from time to time.

     (c) “Board” shall mean the board of directors of Orion or a committee of such Board
authorized to act on its behalf in certain circumstances, including the Compensation
Committee of the Board.

     (d) “Cause” shall mean a good faith finding by the Board that Executive has (i) failed,
neglected, or refused to perform the lawful employment duties related to his or her position
or as from time to time assigned to him (other than due to Disability); (ii) committed any
willful, intentional, or grossly negligent act having the effect of materially injuring the
interest, business, or reputation of the Company; (iii) violated or failed to comply in any
material respect with the Company’s published rules, regulations, or policies, as in effect
or amended from time to time; (iv) committed an act constituting a felony or misdemeanor
involving moral turpitude, fraud, theft, or dishonesty; (v) misappropriated or embezzled any
property of the Company (whether or not an act constituting a felony or misdemeanor); or
(vi) breached any material provision of this Agreement or any other applicable
confidentiality, non-compete, non-solicit, general release, covenant not-to-sue, or other
agreement with the Company.

     (e) “Change of Control” shall mean and be limited to any of the following:

     (i) any Person (other than (A) the Company or any of its subsidiaries, (B) a
trustee or other fiduciary holding securities under any employee benefit plan of the
Company or any of its subsidiaries, (C) an underwriter temporarily holding
securities pursuant to an offering of such securities or (D) a corporation owned,
directly or indirectly, by the shareholders of the Company in substantially the same
proportions as their ownership of stock in the Company (“Excluded Persons”)) is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company
(not including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates, pursuant to express
authorization by the Board that refers to this exception) representing twenty
percent (20%) or more of either the then outstanding shares of common stock of the
Company or the combined voting power of the Company’s then outstanding voting
securities; or

     (ii) the following individuals cease for any reason to constitute a majority of
the number of directors of the Company then serving: (A) individuals who, on the
date hereof, constituted the Board and (B) any new director (other than a director
whose initial assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent solicitation, relating to
the election of directors of the Company, as such terms are used in

2

 

Rule 14a-11 of Regulation 14A under the Act) whose appointment or election by
the Board or nomination for election by the Company’s shareholders was approved by a
vote of at least two-thirds (2/3) of the directors then still in office who either
were directors on the date hereof, or whose appointment, election or nomination for
election was previously so approved (collectively the “Continuing Directors”);
provided, however, that individuals who are appointed to the Board pursuant to or in
accordance with the terms of an agreement relating to a merger, consolidation, or
share exchange involving the Company (or any direct or indirect subsidiary of the
Company) shall not be Continuing Directors for purposes of this Agreement until
after such individuals are first nominated for election by a vote of at least
two-thirds (2/3) of the then Continuing Directors and are thereafter elected as
directors by the shareholders of the Company at a meeting of shareholders held
following consummation of such merger, consolidation, or share exchange; and,
provided further, that in the event the failure of any such persons appointed to the
Board to be Continuing Directors results in a Change of Control, the subsequent
qualification of such persons as Continuing Directors shall not alter the fact that
a Change of Control occurred; or

     (iii) the consummation of a merger, consolidation or share exchange of the
Company with any other corporation or the issuance of voting securities of the
Company in connection with a merger, consolidation or share exchange of the Company
(or any direct or indirect subsidiary of the Company), in each case, which requires
approval of the shareholders of the Company, other than (A) a merger, consolidation
or share exchange which would result in the voting securities of the Company
outstanding immediately prior to such merger, consolidation or share exchange
continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity or any parent thereof) at least fifty
percent (50%) of the combined voting power of the voting securities of the Company
or such surviving entity or any parent thereof outstanding immediately after such
merger, consolidation or share exchange, or (B) a merger, consolidation or share
exchange effected to implement a recapitalization of the Company (or similar
transaction) in which no Person (other than an Excluded Person) is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company (not
including in the securities beneficially owned by such Person any securities
acquired directly from the Company or its Affiliates, pursuant to express
authorization by the Board that refers to this exception) representing twenty
percent (20%) or more of either the then outstanding shares of common stock of the
Company or the combined voting power of the Company’s then outstanding voting
securities; or

     (iv) the consummation of a plan of complete liquidation or dissolution of the
Company or a sale or disposition by the Company of all or substantially all of the
Company’s assets (in one transaction or a series of related transactions within any
period of 24 consecutive months), in each case, which requires approval of the
shareholders of the Company, other than a sale or disposition by the Company of all
or substantially all of the Company’s assets to an entity at least seventy-five
percent (75%) of the combined voting power of the voting securities of which are
owned by Persons in substantially the same proportions as their ownership of the
Company immediately prior to such sale.

3

 

Notwithstanding the foregoing, no “Change of Control” shall be deemed to have occurred if there is
consummated any transaction or series of integrated transactions immediately following which the
record holders of the common stock of the Company immediately prior to such transaction or series
of transactions continue to own, directly or indirectly, in the same proportions as their ownership
in the Company, an entity that owns all or substantially all of the assets or voting securities of
the Company immediately following such transaction or series of transactions.

For purposes of this Section 2(e):

     (i) the term “Person” shall mean any individual, firm, partnership, corporation
or other entity, including any successor (by merger or otherwise) of such entity, or
a group of any of the foregoing acting in concert;

     (ii) the terms “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations of the
Act;

     (iii) the term “Act” means the Securities Exchange Act of 1934, as amended; and

     (iv) a Person shall be deemed to be the “Beneficial Owner” of any securities
which:

a) such Person or any of such Person’s Affiliates or Associates has the
right to acquire (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or
understanding, or upon the exercise of conversion rights, exchange rights,
rights, warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own,
securities tendered pursuant to a tender or exchange offer made by or on
behalf of such Person or any of such Person’s Affiliates or Associates until
such tendered securities are accepted for purchase;

b) such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial
ownership” of (as determined pursuant to Rule l3d-3 of the General Rules and
Regulations under the Act), including pursuant to any agreement, arrangement
or understanding; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to beneficially own, any security under this
clause b) as a result of an agreement, arrangement or understanding
to vote such security if the agreement, arrangement or understanding:
(A) arises solely from a revocable proxy or consent given to such Person in
response to a public proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations under the Act and
(B) is not also then reportable on a Schedule l3D under the Act (or any
comparable or successor report); or

c) are beneficially owned, directly or indirectly, by any other Person with
which such Person or any of such Person’s Affiliates or Associates has any
agreement, arrangement or understanding for the purpose of

4

 

acquiring, holding, voting (except pursuant to a revocable proxy as
described in clause b) above) or disposing of any voting securities
of the Company.

     (f) “COBRA” shall mean the provisions of Code Section 4980B.

     (g) “Code” shall mean the Internal Revenue Code of 1986, as amended, as interpreted by
rules and regulations issued pursuant thereto, all as amended and in effect from time to
time. Any reference to a specific provision of the Code shall be deemed to include
reference to any successor provision thereto.

     (h) “Competitive Business Activity” shall mean the design and manufacture of lighting
systems and controls for industrial, commercial and agricultural facilities.

     (i) “Disability” shall mean, subject to applicable law, a total and permanent
disability consisting of a mental or physical disability which precludes the disabled
Executive from performing the material and substantial duties of his employment. Payment of
benefits for total disability under a disability insurance policy shall be conclusive as to
the existence of total disability, although such payments are not required in order to
establish total disability for purposes of this Agreement. The Executive has a “total and
permanent disability” if he is precluded by mental or physical disability for 180 days
during any twelve (12) month period. For purposes of this Agreement, an Executive shall be
deemed totally and permanently disabled at the end of such 180th day. In case of a
disagreement as to whether an Executive is totally and permanently disabled and, at the
request of any party, the matter shall be submitted to arbitration as provided for herein,
and judgment upon the award may be entered in any court having jurisdiction thereof. Any
costs of such proceedings (including the reasonable legal fees of the prevailing party)
shall be borne by the non-prevailing party to such arbitration.

     (j) “General Release” shall mean a release of all claims that Executive, and anyone who
may succeed to any claims of Executive, has or may have against Orion, its board of
directors, any of its subsidiaries or affiliates, or any of their employees, directors,
officers, employees, agents, plan sponsors, administrators, successors (including the
Successor), fiduciaries, or attorneys, including but not limited to claims arising out of
Executive’s employment with, and termination of employment from, the Company, but excluding
claims for (i) severance payments and benefits due pursuant to this Agreement and (ii) any
salary, bonus, equity, accrued vacation, expense reimbursement and other ordinary payments
or benefits earned or otherwise due with respect to the period prior to the date of any
Separation from Service. The General Release shall be in a form that is reasonably
acceptable to the Company or the Board.

     (k) “Good Reason” shall mean the occurrence of any of the following without the consent
of Executive: (i) a material diminution in the Executive’s Base Salary; (ii) a material
diminution in the Executive’s authority, duties or responsibilities; (iii) a material
diminution in the budget over which the Executive retains authority; (iv) a material change
in the geographic location at which the Executive must perform services; or (v) a material
breach by Orion of any provisions of this Agreement or any option agreement with the Company
to which the Executive is a party.

          (l) “Separation from Service” shall mean Executive’s termination of employment from Orion and
each entity that is required to be included in Orion’s controlled

5

 

group of corporations within the meaning of Code Section 414(b), or that is under common
control with Orion within the meaning of Code Section 414(c); provided that the phrase “at least 50
percent” shall be used in place of the phrase “ at least 80 percent” each place it appears therein
or in the regulations thereunder (collectively, “409A affiliates”). Notwithstanding the foregoing:

          (i) If Executive takes a leave of absence for purposes of military leave, sick leave or
other bona fide leave of absence, Executive will not be deemed to have incurred a Separation
from Service for the first six (6) months of the leave of absence, or if longer, for so long
as Executive’s right to reemployment is provided either by statute or by contract.

          (ii) Subject to paragraph (i), Executive shall incur a Separation from Service when the
level of bona fide services provided by Executive to Orion and its 409A affiliates
permanently decreases to a level of twenty percent (20%) or less of the level of services
rendered by Executive, on average, during the immediately preceding 12 months of employment.

          (iii) If, following Executive’s termination of employment, Executive continues to
provide services to the Company or a 409A Affiliate in a capacity other than as an employee,
Executive will not be deemed to have Separated from Service as long as Executive is
providing bona fide services at a rate that is greater than twenty percent (20%) of the
level of services rendered by Executive, on average, during the immediately preceding 12
months of service.

     (m) “Severance Payment” shall mean the Executive’s Base Salary at the time of the
Termination Date plus the average of the annual bonuses earned by the Executive with respect
to each of the three completed fiscal years of the Company preceding the year in which the
Termination Date occurs (or such lesser number of fiscal years for which the Executive was
employed by the Company, with any partial year’s bonus being annualized with respect to such
fiscal year) multiplied by the severance multiplier set forth above; provided that if
Executive’s Termination Date occurs on or following a Change of Control, the multiplier
described above shall be increased to the post-Change of Control severance multiplier set
forth above and any reduction in Executive’s Base Salary since the date of the Change of
Control shall be ignored.

     (n) “Successor” shall mean the person to which this Agreement is assigned upon a Sale
of Business within the meaning of Section 10.

     (o) “Termination Date” shall mean the date of the Executive’s termination of employment
from the Company, as further described in Section 4.

6

 

          3. Employment of Executive

          (a) Position.

     (i) Executive shall serve in the position set forth above in a full-time
capacity, subject to the provisions in cause (iii) below. In such position,
Executive shall have such duties and authority as is customarily associated with
such position and shall have such other titles and duties, consistent with
Executive’s position, as may be assigned from time to time by the Board.

     (ii) Executive will devote Executive’s full business time and best efforts to
the performance of Executive’s duties hereunder and will not engage in any other
business, profession or occupation for compensation or otherwise which would
conflict or interfere with the rendition of such services either directly or
indirectly, without the prior written consent of the Board; provided that Executive
shall be permitted to continue providing third party consulting services for his own
account through his existing consulting firm, SLR Consulting; further provided that
nothing herein shall preclude Executive, subject to the prior approval of the Board,
from accepting appointment to or continue to serve on any board of directors or
trustees of any business organization or any charitable organization; and further
provided in each case, and in the aggregate, that such activities do not materially
conflict or interfere with the performance of Executive’s duties hereunder or
conflict with Section 7. In addition, it is mutually agreed that Executive will not
use the assets, facilities, goodwill or personnel of Orion in connection with his
third party consulting services; the Executive will perform his third party
consulting services solely in his personal capacity and not as an employee,
affiliate or representative of Orion (and he will not hold himself out to his
clients, prospects or to the public as providing any such third party consulting
services as an employee, affiliate or representative of Orion); neither Executive
nor SLR Consulting will perform any third party consulting services that would
violate Section 7 hereof; and Executive will fully indemnify Orion against any
claims against Orion arising out of or in connection with his third party consulting
services.

     (b) Base Salary. Orion shall pay Executive a Base Salary at the annual rate set forth
above for Fiscal Year 2010, payable in regular installments in accordance with the Company’s
usual payroll practices. Executive shall be entitled to such increases in Executive’s base
salary, if any, as may be determined from time to time by the Board.

     (c) Bonus Incentives. Executive shall be entitled to participate in such annual and/or
long-term cash and equity incentive plans and programs of Orion as are generally provided to
the senior executives of Orion. On and after a Change of Control, to assure that Executive
will have an opportunity to earn incentive compensation, the Executive shall be included in
a bonus plan of the Employer which shall satisfy the standards described below (such plan,
the “Bonus Plan”). Bonuses under the Bonus Plan shall be payable with respect to achieving
such financial or other goals reasonably related to the business of the Company as the
Company shall establish (the “Goals”), all of which Goals shall be attainable, prior to the
end of the post-Change of Control renewal period (as set forth above), with approximately
the same degree of probability as the most attainable goals under the Company’s bonus plan
or plans as in effect at any time during

7

 

the 180-day period immediately prior to the Change of Control (whether one or more, the
“Company Bonus Plan”) and in view of the Company’s existing and projected financial and
business circumstances applicable at the time. The amount of the bonus (the “Bonus Amount”)
that Executive is eligible to earn under the Bonus Plan shall be no less than 100% of the
Executive’s target award provided in such Company Bonus Plan (such bonus amount herein
referred to as the “Targeted Bonus”), and in the event the Goals are not achieved such that
the entire Targeted Bonus is not payable, the Bonus Plan shall provide for a payment of a
Bonus Amount equal to a portion of the Targeted Bonus reasonably related to that portion of
the Goals which were achieved. Payment of the Bonus Amount shall not be affected by any
circumstance occurring subsequent to the end of the post-Change of Control renewal period,
including termination of Executive’s employment.

     (d) Employee Benefits. Executive shall be entitled to participate in the Company’s
employee benefit plans (other than annual and/or long-term incentive programs, which are
addressed in subsection (c)) as in effect from time to time on the same basis as those
benefits are generally made available to other senior executives of Orion. On and after a
Change of Control, Executive shall be included: (i) to the extent eligible thereunder (which
eligibility shall not be conditioned on Executive’s salary grade or on any other requirement
which excludes persons of comparable status to the Executive unless such exclusion was in
effect for such plan or an equivalent plan immediately prior to the Change in Control of the
Company), in any and all plans providing benefits for the Company’s salaried employees in
general (including but not limited to group life insurance, hospitalization, medical,
dental, and long-term disability plans) and (ii) in plans provided to executives of the
Company of comparable status and position to Executive (including but not limited to
deferred compensation, split-dollar life insurance, supplemental retirement, stock option,
stock appreciation, stock bonus, cash bonus and similar or comparable plans);
provided, that, in no event shall the aggregate level of benefits under the
plans described in clause (i) and the plans described in clause (ii), respectively, in which
Executive is included be less than the aggregate level of benefits under plans of the
Company of the type referred to in such clause, respectively, in which Executive was
participating immediately prior to the Change in Control.

     (e) Business Expenses. The reasonable business expenses incurred by Executive in the
performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance
with Company policies.

     (f) Other Perquisites. Executive shall be entitled to receive the other benefits and
perquisites set forth in Exhibit A.

          4. Termination of Employment. Executive’s employment with the Company will terminate
during the term of the Agreement, and this Agreement will terminate on the date of such
termination, as follows:

     (a) Executive’s employment will terminate upon Executive’s death.

     (b) If Executive is Disabled, and if within thirty (30) days after Orion notifies the
Executive in writing that it intends to terminate the Executive’s employment, the Executive
shall not have returned to the performance of the Executive’s duties hereunder

8

 

on a full-time basis, Orion may terminate the Executive’s employment, effective
immediately following the end of such thirty-day period.

     (c) Orion may terminate Executive’s employment with or without Cause (other than as a
result of Disability which is governed by subsection (b)) by providing written notice to
Executive that indicates in reasonable detail the facts and circumstances alleged to provide
a basis for such termination. If the termination is without Cause, Executive’s employment
will terminate on the date specified in the written notice of termination. If the
termination is for Cause, the Executive shall have thirty (30) days from the date the
written notice is provided, or such longer period as Orion may determine to be appropriate,
to cure any conduct or act, if curable, alleged to provide grounds for termination of
Executive’s employment for Cause. If the alleged conduct or act constituting Cause is not
curable, Executive’s employment will terminate on the date specified in the written notice
of termination. If the alleged conduct or act constituting Cause is curable but Executive
does not cure such conduct or act within the specified time period, Executive’s employment
will terminate on the date immediately following the end of the cure period.
Notwithstanding the foregoing, a determination of Cause shall only be made in good faith by
the Board, and after a Change of Control, by the Board of Directors of the Successor, which
may terminate Executive for Cause only after providing Executive (i) written notice as set
forth above, (ii) the opportunity to appear before such board and provide rebuttal to such
proposed termination, and (iii) written notice following such appearance confirming such
termination and certifying that the decision to terminate Executive for Cause was approved
in good faith by at least sixty-six percent (66%) of the members of such board, excluding
Executive. Unless otherwise directed by Orion, from and after the date of the written
notice of proposed termination, Executive shall be relieved of his or her duties and
responsibilities and shall be considered to be on a paid leave of absence pending any final
action by the Board or the Board of Directors of the Successor confirming such proposed
termination.

     (d) Executive may terminate his or her employment for or without Good Reason by
providing written notice of termination to Orion that indicates in reasonable detail the
facts and circumstances alleged to provide a basis for such termination. If Executive is
alleging a termination for Good Reason, Executive must provide written notice to Orion of
the existence of the condition constituting Good Reason within ninety (90) days of the
initial existence of such condition, and Orion must have a period of at least thirty (30)
days following receipt of such notice to cure such condition. If such condition is not
cured by Orion within such thirty-day period, Executive’s termination of employment from the
Company shall be effective on the date immediately following the end of such cure period.

          5. Payments upon Termination.

     (a) Entitlement to Severance. Subject to the other terms and conditions of this
Agreement, Executive shall be entitled to the Accrued Benefits, and to the severance
benefits described in subsection (c), in either of the following circumstances while this
Agreement is in effect:

     (i) Executive’s employment is terminated by Orion without Cause, except in the
case of death or Disability; or

9

 

     (ii) Executive terminates his or her employment with the Company for Good
Reason.

If Executive dies after receiving a notice by Orion that Executive is being terminated
without Cause, or after providing notice of termination for Good Reason, the Executive’s
estate, heirs and beneficiaries shall be entitled to the Accrued Benefits and the severance
benefits described in subsection (c) at the same time such amounts would have been paid or
benefits provided to Executive had he or she lived.

     (b) General Release Requirement. As an additional prerequisite for receipt of the
severance benefits described in subsection (c), Executive must execute, deliver to Orion,
and not revoke (to the extent Executive is allowed to do so) a General Release.

     (c) Severance Benefits; Timing and Form of Payment. Subject to the limitations imposed
by Section 6, if Executive is entitled to severance benefits, then:

     (i) Company shall pay Executive the Severance Payment in a lump sum within ten
(10) days following the Executive’s Separation from Service, or if later, the date
on which the General Release is no longer revocable, or if later, the date on which
the amount payable under Section 6 is determined, but in no event may be payment be
made more than 21/2 months after the year in which Executive’s Separation from Service
occurs;

     (ii) At the same time that the Severance Payment is made, Company shall pay
Executive a lump sum amount equal to the Executive’s annual target cash bonus
opportunity (if any) as established by the Board or the Compensation Committee of
the Board for the fiscal year in which the Separation from Service occurs,
multiplied by a fraction, the numerator of which is the number of days that have
elapsed during the annual performance period to the date of the Executive’s
Separation from Service and the denominator of which is 365; and

     (iii) Executive shall be entitled to pay premiums for COBRA continuation
coverage for the length of such coverage at the same rate as is being charged to
active employees for similar coverage.

All payments shall be subject to payroll taxes and other withholdings in accordance with the
Company’s (or the applicable employer of record’s) standard payroll practices and applicable
law.

     (d) Other Termination of Employment. If Executive’s employment terminates for any
reason other than those described in subsection (a), the Executive (or the Executive’s
estate in the event of his or her death), shall be entitled to receive only the Accrued
Benefits. Executive must be terminated for Cause pursuant to and in accordance with Section
4(c) of this Agreement in order for the consequences of such a Cause termination to apply to
Executive under any stock option or similar equity award agreement with the Company to which
Executive is then a party. The Company’s obligations under this Section 5 shall survive the
termination of this Agreement.

          6. Limitations on Severance Payments and Benefits. Notwithstanding any other
provision of this Agreement, if any portion of the Severance Payment or any other payment under
this Agreement, or under any other agreement with or plan of the Company (in the

10

 

aggregate “Total Payments”), would constitute an “excess parachute payment,” then the Total
Payments to be made to Executive shall be reduced such that the value of the aggregate Total
Payments that Executive is entitled to receive shall be One Dollar ($1) less than the maximum
amount which Executive may receive without becoming subject to the tax imposed by Code Section 4999
or which the Company may pay without loss of deduction under Code Section 280G(a); provided that
the foregoing reduction in the amount of Total Payments shall not apply if the After-Tax Value to
Executive of the Total Payments prior to reduction in accordance herewith is greater than the
After-Tax Value to Executive if Total Payments are reduced in accordance herewith. For purposes of
this Agreement, the terms “excess parachute payment” and “parachute payments” shall have the
meanings assigned to them in Code Section 280G, and such “parachute payments” shall be valued as
provided therein. Present value for purposes of this Agreement shall be calculated in accordance
with Code Section 1274(b)(2). Within twenty (20) business days following delivery of the notice of
termination or notice by Orion to Executive of its belief that there is a payment or benefit due
Executive that will result in an excess parachute payment as defined in Code Section 280G,
Executive and Orion, at Orion’s expense, shall obtain the opinion (which need not be unqualified)
of nationally recognized tax counsel selected by Orion’s independent auditors and acceptable to
Executive in Executive’s sole discretion, which opinion sets forth: (A) the amount of the Base
Period Income, (B) the amount and present value of Total Payments, (C) the amount and present value
of any excess parachute payments without regard to the limitations of this Section 6, (D) the
After-Tax Value of the Total Payments if the reduction in Total Payments contemplated under this
Section 6 did not apply, and (E) the After-Tax Value of the Total Payments taking into account the
reduction in Total Payments contemplated under this Section 6. As used in this Section 6, the term
“Base Period Income” means an amount equal to Executive’s “annualized includible compensation for
the base period” as defined in Code Section 280G(d)(1). For purposes of such opinion, the value of
any noncash benefits or any deferred payment or benefit shall be determined by Orion’s independent
auditors in accordance with the principles of Code Sections 280G(d)(3) and (4), which determination
shall be evidenced in a certificate of such auditors addressed to Orion and Executive. For
purposes of determining the After-Tax Value of Total Payments, Executive shall be deemed to pay
federal income taxes and employment taxes at the highest marginal rate of federal income and
employment taxation in the calendar year in which the Termination Payment is to be made and state
and local income taxes at the highest marginal rates of taxation in the state and locality of
Executive’s domicile for income tax purposes on the date the Termination Payment is to be made, net
of the maximum reduction in federal income taxes that may be obtained from deduction of such state
and local taxes. Such opinion shall be dated as of the Termination Date and addressed to Orion and
Executive and shall be binding upon the Company and Executive. If such opinion determines that
there would be an excess parachute payment and that the After-Tax Value of the Total Payments
taking into account the reduction contemplated under this Section is greater than the After-Tax
Value of the Total Payments if the reduction in Total Payments contemplated under this Section did
not apply, then the Termination Payment hereunder or any other payment determined by such counsel
to be includible in Total Payments shall be reduced or eliminated as specified by Executive in
writing delivered to Orion within five business days of Executive’s receipt of such opinion or, if
Executive fails to so notify Orion, then as Orion shall reasonably determine, so that under the
bases of calculations set forth in such opinion there will be no excess parachute payment. If such
legal counsel so requests in connection with the opinion required by this Section, Executive and
Orion shall obtain, at Orion’s expense, and the legal counsel may rely on in providing the opinion,
the advice of a firm of recognized executive compensation consultants as to the reasonableness of
any item of compensation to be received by Executive. Notwithstanding the foregoing, the
provisions of this Section 6, including the calculations, notices and opinions provided for herein,
shall be based

11

 

upon the conclusive presumption that the following are reasonable: (1) the compensation and
benefits provided for in Section 3 and (2) any other compensation, including but not limited to the
Accrued Benefits, earned prior to the date of Executive’s Separation from Service by the Executive
pursuant to the Company’s compensation programs if such payments would have been made in the future
in any event, even though the timing of such payment is triggered by the Change in Control or the
Executive’s Separation from Service. If the provisions of Code Sections 280G and 4999 are repealed
without succession, then this Section 6 shall be of no further force or effect.

          7. Covenants by Executive.

     (a) Confidentiality and Non-Disclosure. During Executive’s employment with the Company
and for a period of two years following Executive’s Separation from Service, he or she
agrees that he or she will not, except in furtherance of the business of the Company,
disclose, furnish, or make available to any person or use for the benefit of himself or
herself or any other person any confidential or proprietary information or data of the
Company including, but not limited to, trade secrets, customer and supplier lists, pricing
policies, operational methods, marketing plans or strategies, product development techniques
or plans, business acquisition or disposition plans, new personnel employment plans, methods
of manufacture, technical process, and formulae, designs and design projects, inventions and
research projects and financial budgets and forecasts except (i) information which at the
time is available to others in the business or generally known to the public other than as a
result of disclosure by Executive not permitted hereunder, and (ii) when required to do so
by a court of competent jurisdiction, by any governmental agency or by any administrative,
legislative or regulatory body; provided that in this instance Executive shall make
reasonable efforts to inform the Company of any such request prior to any disclosure so as
to permit the Company a meaningful opportunity to seek a protective order or similar
adjudication. Upon termination of his or her employment with the Company, Executive will
immediately return to the Company all written or electronically stored confidential or
proprietary information in whatever format it is contained.

     (b) Non-Competition/Non-Solicitation.

     (i) During Executive’s employment with the Company and for a period of two
years following Executive’s Separation from Service, Executive agrees not to
directly or indirectly engage, or assist any business or entity, in Competitive
Business Activity in any capacity, including without limitation as an employee,
officer, or director of, or consultant or advisor to, any person or entity engaged
directly or indirectly in a business which engages in Competitive Business Activity,
in North America or anywhere that Orion or its Successor does business at the time
of Executive’s termination of employment, without the written consent of the Board.

     (ii) During Executive’s employment with the Company and for a period of two
years following Executive’s Separation from Service, Executive agrees not to, in any
form or manner, directly or indirectly, on his or her own behalf or in combination
with others (1) solicit, induce or influence any customer, supplier, lender, lessor
or any other person with a business relationship with the Company to discontinue or
reduce the extent of such business relationship, or (2)

12

 

recruit, solicit or otherwise induce or influence any employee of the Company
to discontinue their employment with the Company.

     (c) Disclosure and Assignment to the Company of Inventions and Innovations.

     (i) Executive agrees to disclose and assign to the Company as the Company’s
exclusive property, all inventions and technical or business innovations, including
but not limited to all patentable and copyrightable subject matter (collectively,
the “Innovations”) developed, authored or conceived by Executive solely or jointly
with others during the period of Executive’s employment, including during
Executive’s employment prior to the date of this Agreement, (1) that are along the
lines of the business, work or investigations of the Company to which Executive’s
employment relates or as to which Executive may receive information due to
Executive’s employment with the Company, or (2) that result from or are suggested by
any work which Executive may do for the Company or (3) that are otherwise made
through the use of Company time, facilities or materials. To the extent any of the
Innovations is copyrightable, each such Innovation shall be considered a “work for
hire.”

     (ii) Executive agrees to execute all necessary papers and otherwise provide
proper assistance (at the Company’s expense), during and subsequent to Executive’s
employment, to enable the Company to obtain for itself or its nominees, all right,
title, and interest in and to patents, copyrights, trademarks or other legal
protection for such Innovations in any and all countries.

     (iii) Executive agrees to make and maintain for the Company adequate and
current written records of all such Innovations;

     (iv) Upon any termination of Executive’s employment, employee agrees to deliver
to the Company promptly all items which belong to the Company or which by their
nature are for the use of Company employees only, including, without limitation, all
written and other materials which are of a secret or confidential nature relating to
the business of the Company.

     (v) In the event Company is unable for any reason whatsoever to secure
Executive’s signature to any lawful and necessary documents required, including
those necessary for the assignment of, application for, or prosecution of any United
States or foreign application for letters patent or copyright for any Innovation,
Executive hereby irrevocably designates and appoints Company and its duly authorized
officers and agents as Executive’s agent and attorney-in-fact, to act for and in
Executive’s behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the assignment, prosecution, and issuance
of letters patent or registration of copyright thereon with the same legal force and
effect as if executed by Executive. Executive hereby waives and quitclaims to
Company any and all claims, of any nature whatsoever, which Executive may now have
or may hereafter have for infringement of any patent or copyright resulting from any
such application.

     (d) Remedies Not Exclusive. In the event that Executive breaches any terms of this
Section 7, Executive acknowledges and agrees that said breach may result in the

13

 

immediate and irreparable harm to the business and goodwill of the Company and that
damages, if any, and remedies of law for such breach may be inadequate and indeterminable.
The Company, upon Executive’s breach of this Section 7, shall therefore be entitled (in
addition to and without limiting any other remedies that the Company may seek under this
Agreement or otherwise at law or in equity) to (1) seek from any court of competent
jurisdiction equitable relief by way of temporary or permanent injunction and without being
required to post a bond, to restrain any violation of this Section 7, and for such further
relief as the court may deem just or proper in law or equity, and (2) in the event that the
Company shall prevail, its reasonable attorneys fees and costs and other expenses in
enforcing its rights under this Section 7.

     (e) Severability of Provisions. If any restriction, limitation, or provision of this
Section 7 is deemed to be unreasonable, onerous, or unduly restrictive by a court of
competent jurisdiction, it shall not be stricken in its entirety and held totally void and
unenforceable, but shall remain effective to the maximum extent possible within the bounds
of the law. If any phrase, clause or provision of this Section 7 is declared invalid or
unenforceable by a court of competent jurisdiction, such phrase, clause, or provision shall
be deemed severed from this Section 7, but will not affect any other provision of this
Section 7, which shall otherwise remain in full force and effect. The provisions of this
Section 7 are each declared to be separate and distinct covenants by Executive.

          8. Notice. Any notice, request, demand or other communication required or permitted
herein will be deemed to be properly given when personally served in writing or when deposited in
the United States mail, postage prepaid, addressed to Executive at the address appearing at the end
of this Agreement and to the Company with attention to the Chief Executive Officer of Orion and the
General Counsel of Orion. Either party may change its address by written notice in accordance with
this paragraph.

          9. Set Off; Mitigation. The Company’s obligation to pay Executive the amounts and to
provide the benefits hereunder shall be subject to set-off, counterclaim or recoupment of amounts
owed by Executive to the Company. However, Executive shall not be required to mitigate the amount
of any payment provided for pursuant to this Agreement by seeking other employment or otherwise.

          10. Benefit of Agreement. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective executors, administrators, successors and assigns. If
Orion experiences a Change of Control, or otherwise sells, assigns or transfers all or
substantially all of its business and assets to any person or if Orion merges into or consolidates
or otherwise combines (where Orion does not survive such combination) with any person (any such
event, a “Sale of Business”), then Orion shall assign all of its right, title and interest in this
Agreement as of the date of such event to such person, and Orion shall cause such person, by
written agreement in form and substance reasonably satisfactory to Executive, to expressly assume
and agree to perform from and after the date of such assignment all of the terms, conditions and
provisions imposed by this Agreement upon the Company. Failure of Orion to obtain such agreement
prior to the effective date of such Sale of Business shall be a breach of this Agreement
constituting “Good Reason” hereunder, except that for purposes of implementing the foregoing the
date upon which such Sale of Business becomes effective shall be the Termination Date. In case of
such assignment by Orion and of assumption and agreement by such person, as used in this Agreement,
“Orion” shall thereafter mean the person which executes and delivers the agreement provided for in
this Section 10 or which otherwise becomes bound by

14

 

all the terms and provisions of this Agreement by operation of law, and this Agreement shall
inure to the benefit of, and be enforceable by, such person. Executive shall, in his or her
discretion, be entitled to proceed against any or all of such persons, any person which theretofore
was such a successor to Orion, and Orion (as so defined) in any action to enforce any rights of
Executive hereunder. Except as provided in this Section 10, this Agreement shall not be assignable
by Orion. This Agreement shall not be terminated by the voluntary or involuntary dissolution of
Orion.

          11. Arbitration. Any controversy or claim arising out of or relating to this
Agreement or the breach of this Agreement that cannot be mutually resolved by the Executive and the
Company, including any dispute as to the calculation of the Executive’s Benefits, Base Salary,
Bonus Amount or any Severance Payment hereunder, shall be submitted to arbitration in Milwaukee,
Wisconsin, in accordance with the procedures of the American Arbitration Association. The
determination of the arbitrator shall be conclusive and binding on the Company and the Executive,
and judgment may be entered on the arbitrator’s award in any court having jurisdiction.

          12. Applicable Law and Jurisdiction. This Agreement is to be governed by and
construed under the laws of the United States and of the State of Wisconsin without resort to
Wisconsin’s choice of law rules. Each party hereby agrees that the forum and venue for any legal
or equitable action or proceeding arising out of, or in connection with, this Agreement will lie in
the appropriate federal or state courts in the State of Wisconsin and specifically waives any and
all objections to such jurisdiction and venue.

          13. Captions and Paragraph Headings. Captions and paragraph headings used herein are
for convenience only and are not a part of this Agreement and will not be used in construing it.

          14. Invalid Provisions. Subject to Section 7(e), should any provision of this
Agreement for any reason be declared invalid, void, or unenforceable by a court of competent
jurisdiction, the validity and binding effect of any remaining portion will not be affected, and
the remaining portions of this Agreement will remain in full force and effect as if this Agreement
had been executed with said provision eliminated.

          15. No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.

          16. Entire Agreement. This Agreement, together with the employment offer letter dated
as of the Effective Date and incorporated herein, contains the entire agreement of the parties with
respect to the subject matter of this Agreement except where other agreements are specifically
noted, adopted, or incorporated by reference. This Agreement otherwise supersedes any and all
other agreements, either oral or in writing, between the parties hereto with respect to the
employment of Executive by Company, and all such agreements shall be void and of no effect. Each
party to this Agreement acknowledges that no representations, inducements, promises, or agreements,
oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein, and that no other agreement, statement, or promise not contained in this
Agreement will be valid or binding.

15

 

          17. Modification. This Agreement may not be modified or amended by oral agreement,
but only by an agreement in writing signed by Orion and Executive.

          18. Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.

[Signatures on following page]

16

 

     WHEREAS, this Agreement is effective as of the Effective Date set forth above.

EXECUTIVE

/s/ Stuart L. Ralsky                                                            

Stuart L. Ralsky

ORION ENERGY SYSTEMS, INC.

	 	 	 	 	 
	By:

	 	/s/ James R. Kackley
 

James R. Kackley
	 	 
	 

	 	President and Chief Operating Officer	 	 

17

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