Document:

Exhibit 102

		
			JONES SODA CO.
		

		
			INDEPENDENT CONTRACTOR AGREEMENT
		

		
			This Independent Contractor Agreement is made and entered into effective as of April 1, 2020 (“Effective Date”) between Jones Soda Co., a Washington corporation (“Company”), and Jamie Colbourne and Mamba Foods, LLC, a Washington limited liability company (collectively, “Contractor”).  In consideration of the mutual promises contained in this Agreement, the parties agree as follows:
		

		
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				 1.
			SERVICES AND COMPENSATION

			
	
			
				 1.1
			Services; Reporting.  Subject to the terms and conditions of this Agreement and at Company’s request and direction, during the term of this Agreement Contractor will perform for Company the services (“Services”) described in Exhibit A and will report to the Company contact described in Exhibit A.  For the avoidance of doubt, Services shall be performed on behalf of Contractor exclusively by Jamie Colbourne and it shall be Jamie Colbourne, in his individual capacity, who shall serve as the Company’s Interim Chief Executive Officer and Acting Principal Financial Officer.

			
	
			
				 1.2
			Compensation.  As consideration for Contractor’s proper performance of the Services, Company will pay Contractor the compensation set forth in Exhibit A.

			
	
			
				 2.
			TERM AND TERMINATION

			
	
			
				 2.1
			Term.  This Agreement commences on the Effective Date and will continue until June 30, 2020, unless (a) extended by the mutual agreement of the parties or (b) earlier terminated as provided below.

			
	
			
				 2.2
			Termination.  After June 30, 2020, Company may terminate this Agreement at any time by giving two weeks prior written notice to Contractor.  Company may terminate this Agreement immediately and without prior notice if Contractor refuses to or is unable to perform the Services, is in breach of any material provision of this Agreement, or Company is dissatisfied with the quality of Contractor’s work.

			
	
			
				 2.3
			Survival.  Upon termination, all rights and duties of the parties toward each other cease except that:

			
	
			
				 (a)
			Within 30 days of the effective date of termination, Company will pay all amounts owing to Contractor for Services or Contractor will return to Company any amount paid to Contractor as a retainer that is not owed against Services; and

			
	
			
				 (b)
			Sections 2,  3,  4,  5,  6,  7,  8, and 10 survive termination of this Agreement.

			
	
			
				 2.4
			Return of Materials.  Upon the termination of this Agreement, or upon Company’s earlier request, Contractor will deliver to Company all of Company’s property and Confidential Information (as defined in Section 3.1) that is in Contractor’s possession or control.

			
	
			
				 3.
			CONFIDENTIALITY

			
	
			
				 3.1
			Definition.  “Confidential Information” means any non‐public information that relates to the actual or anticipated business, research, or development of Company and any proprietary information, trade secrets, and know‐how of Company that is disclosed to Contractor by Company, directly or indirectly, in writing, orally, or by inspection or observation of tangible items.  Confidential Information includes, but is not limited to, research, product plans, products, services, customer lists, development plans, inventions, processes, formulas, technology, designs, drawings, marketing, finances, and other business information.  Confidential Information is the sole property of Company.

			
	
			
				 3.2
			Exceptions.  Confidential Information does not include any information that:  was publicly known and made generally available in the public domain prior to the time Company disclosed the information to Contractor,   became publicly known and made generally available, after disclosure to Contractor by Company, through no wrongful action or inaction of Contractor or others who were under confidentiality obligations, or  was in Contractor’s possession, without confidentiality restrictions, at the time of disclosure by Company, as shown by Contractor’s files and records.

			
	
			
				 3.3
			Nondisclosure and Nonuse.  Contractor will not, during and after the term of this Agreement, disclose the Confidential Information to any third party or use the Confidential Information for any purpose other than the performance of the Services on behalf of Company.  Contractor will take all reasonable precautions to prevent any unauthorized disclosure of the Confidential Information including, but not limited to, having each employee of Contractor, if any, with access to any Confidential Information, execute a nondisclosure agreement containing terms that are substantially similar to the terms contained in this Agreement.

			
	
			
				 3.4
			Former Client Confidential Information.  Contractor will not improperly use or disclose any proprietary information or trade secrets of any former or concurrent client of Contractor or other person or entity.  Furthermore, Contractor will not bring onto the premises of the Company any unpublished document or proprietary information belonging to any client, person, or entity unless consented to in writing by the client, person, or entity.

			
	
			
				 3.5
			Third Party Confidential Information.  Company has received, and in the future will receive, from third parties confidential or proprietary information subject to a duty on Company’s part to maintain the confidentiality of the information and to use it only for certain limited purposes.  Contractor owes Company and these third parties, during and after the term of this Agreement, a duty to hold this confidential and proprietary information in the strictest confidence and not to disclose it to any person or entity, or to use it except as necessary in carrying out the Services for Company consistent with Company’s agreements with these third parties.

		
			3.6DTSA Notice.  Contractor is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Contractor will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.    Contractor is further hereby notified that if Contractor files a lawsuit for retaliation by an employer for reporting a suspected violation of law, Contractor may disclose the employer's trade secrets to Contractor’s attorney and use the trade secret information in the court proceeding if Contractor: (a) files any document containing the trade secret under seal; and (b) does not disclose the trade secret, except pursuant to court order.
		

			
	
			
				 4.
			OWNERSHIP

			
	
			
				 4.1
			Assignment.  All works of authorship, designs, inventions, improvements, technology, developments, discoveries, and trade secrets conceived, made, or discovered by Contractor during the period of this Agreement, solely or in collaboration with others, that relate in any manner to the business of Company (collectively, “Inventions”) will be the sole property of Company.  In addition, Inventions that constitute copyrightable subject matter will be considered “works made for hire” as that term is defined in the United States Copyright Act.  To the extent that ownership of the Inventions does not by operation of law vest in Company, Contractor will assign (or cause to be assigned) and does hereby assign fully to Company all right, title, and interest in and to the Inventions, including all related intellectual property rights.

			
	
			
				 4.2
			Further Assurances.  Contractor will assist Company and its designees in every proper way to secure Company’s rights in the Inventions and related intellectual property rights in all countries.  Contractor will disclose to Company all pertinent information and data with respect to Inventions and related intellectual property rights.  Contractor will execute all applications, specifications, oaths, assignments, and other instruments that Company deems necessary 
		

		 

		

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			in order to apply for and obtain these rights and in order to assign and convey to Company, its successors, assigns, and nominees the sole and exclusive right, title, and interest in and to these Inventions, and any related intellectual property rights.  Contractor’s obligation to provide assistance will continue after the termination or expiration of this Agreement.

			
	
			
				 4.3
			Pre‐Existing Materials.  If in the course of performing the Services, Contractor incorporates into any Invention any other work of authorship, invention, improvement, or proprietary information, or other materials owned by Contractor or in which Contractor has an interest, Contractor will grant and does now grant to Company a nonexclusive, royalty‐free, perpetual, irrevocable, worldwide license to reproduce, manufacture, modify, distribute, use, import, and otherwise exploit the material as part of or in connection with the Invention.

			
	
			
				 4.4
			Attorney‐in‐Fact.  If Contractor’s unavailability or any other factor prevents Company from pursuing or applying for any application for any United States or foreign registrations or applications covering the Inventions and related intellectual property rights assigned to Company, then Contractor irrevocably designates and appoints Company as Contractor’s agent and attorney in fact.  Accordingly, Company may act for and in Contractor’s behalf and stead to execute and file any applications and to do all other lawfully permitted acts to further the prosecution and issuance of the registrations and applications with the same legal force and effect as if executed by Contractor.

			
	
			
				 5.
			CONTRACTOR’S WARRANTIES

		
			As an inducement to Company entering into and consummating this Agreement, Contractor represents, warrants, and covenants as follows:
		

			
	
			
				 5.1
			Organization Representations; Enforceability.  If Contractor is a company,  Contractor is duly organized, validly existing, and in good standing in the jurisdiction stated in the preamble to this Agreement,    the execution and delivery of this Agreement by Contractor and the transactions contemplated hereby have been duly and validly authorized by all necessary action on the part of Contractor, and   this Agreement constitutes a valid and binding obligation of Contractor that is enforceable in accordance with its terms.

			
	
			
				 5.2
			Compliance with Applicable Law and Company Policies.  Contractor will comply with all applicable laws, rules, and regulations and will perform the Services in accordance with all policies and procedures provided by Company, including any third party policies and procedures that Company is required to comply with.

			
	
			
				 5.3
			No Conflict.  The entering into and performance of this Agreement by Contractor does not and will not:   violate, conflict with, or result in a material default under any other contract, agreement, indenture, decree, judgment, undertaking, conveyance, lien, or encumbrance to which Contractor is a party or by which it or any of Contractor’s property is or may become subject or bound, or  violate any applicable law or government regulation.  Contractor will not grant any rights under any future agreement, nor will it permit or suffer any lien, obligation, or encumbrances that will conflict with the full enjoyment by Company of its rights under this Agreement.

			
	
			
				 5.4
			Right to Make Full Grant.  Contractor has and will have all requisite ownership, rights, and licenses to fully perform its obligations under this Agreement and to grant to Company all rights with respect to the Inventions and related intellectual property rights to be granted under this Agreement, free and clear of any and all agreements, liens, adverse claims, encumbrances, and interests of any person or entity, including, without limitation, Contractor’s employees, agents, artists, and contractors and their contractors’ employees, agents, and artists, who have provided, are providing, or will provide services with respect to the development of the Inventions.

			
	
			
				 5.5
			Pre‐existing Works and Third Party Materials.  Contractor will not, without Company’s prior written consent, incorporate any pre‐existing works or third party materials into the Inventions.  Additionally, Contractor has the right to assign and transfer rights to pre‐existing works and third party materials as specified in this Agreement.

			
	
			
				 5.6
			Noninfringement.  Nothing contained in the Inventions or required in order for Contractor to create and deliver the Inventions under this Agreement does or will infringe, violate, or misappropriate any intellectual property rights of any third party.  Further, no characteristic of any Invention does or will cause manufacturing, using, maintaining, or selling the Invention to infringe, violate, or misappropriate the intellectual property rights of any third party.

			
	
			
				 5.7
			No Pending or Current Litigation.  Contractor is not involved in litigation, arbitration, or any other claim and knows of no pending litigation, arbitration, other claim, or fact that may be the basis of any claim regarding any of the materials Contractor has used or will use to develop or has incorporated or will incorporate into the Inventions to be delivered under this Agreement.

			
	
			
				 5.8
			No Harmful Content.  The Inventions as delivered by Contractor to Company will not contain matter that is injurious to end‐users or their property, or which is scandalous, libelous, obscene, an invasion of privacy, or otherwise unlawful or tortious.

			
	
			
				 5.9
			Inspection and Testing of Inventions.  Prior to delivery to Company, Contractor will inspect and test each Invention and the media upon which it is to be delivered, if applicable, to ensure that the Invention and media contain no computer viruses, booby traps, time bombs, or other programming designed to interfere with the normal functioning of the Invention or Company’s or an end‐user’s equipment, programs, or data.

			
	
			
				 5.10
			Services.  The Services will be performed in a timely, competent, professional, and workmanlike manner by qualified personnel.  

			
	
			
				 6.
			INDEMNIFICATION

			
	
			
				 6.1
			Indemnification.  Contractor will indemnify, defend, and hold harmless Company and its directors, officers, and employees from and against all taxes, losses, damages, liabilities, costs, and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in connection with:  any negligent, reckless, or intentionally wrongful act of Contractor or Contractor’s assistants, employees, or agents,  any breach by Contractor or Contractor’s assistants, employees, or agents of any of the covenants, warranties, or representations contained in this Agreement,  any failure of Contractor to perform the Services in accordance with all applicable laws, rules, and regulations, or  any violation or claimed violation of a third party’s rights resulting in whole or in part from Company’s use of the work product of Contractor under this Agreement.

			
	
			
				 6.2
			Intellectual Property Infringement.  In the event of any claim concerning the intellectual property rights of a third party that would prevent or limit Company’s use of the Inventions, Contractor will, in addition to its obligations under Section 6.1, take one of the following actions at its sole expense:

			
	
			
				 (a)
			procure for Company the right to continue use of the Invention or infringing part thereof; or

			
	
			
				 (b)
			modify or amend the Invention or infringing part thereof, or replace the Invention or infringing part thereof with another Invention having substantially the same or better capabilities.

			
	
			
				 7.
			NON-SOLICITATION; NON‐COMPETITION

			
	
			
				 7.1
			Non‐Solicitation.  During the term of this Agreement, Contractor will not directly or indirectly, for itself or any third party other than Company, perform any of the following actions: 

			
	
			
				 (a)
			entice or otherwise engage in any activity that would cause any customer, supplier or other vendor of Company or its affiliates or any other person or entity which has any business relationship with Company or its affiliates to cease its business relationship with Company or its affiliates; or

			
	
			
				 (b)
			solicit or encourage any employee or contractor of Company or its affiliates to terminate employment with, or cease providing services to, Company or its affiliates.

			
	
			
				 7.2
			Non‐Competition.  During the term of this Agreement and for one year after the termination of this Agreement, Contractor will not 
		

		 

		

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			directly or indirectly, for itself or any third party other than Company, perform any of the following actions: 

			
	
			
				 (a)
			perform services for a business within the Geographic Area in connection with the development, manufacture, marketing, or sale of a Competing Product; or

			
	
			
				 (b)
			solicit sales of any Competing Product from any of Company’s customers.

			
	
			
				 7.3
			Geographic Area.  “Geographic Area” means anywhere in the world where Company or any subsidiary of Company conducts business.

			
	
			
				 7.4
			Company Product.  “Company Product” means any product or service of Company that Contractor had access to Confidential Information related to the product or service, or a product or service that Contractor worked on.

			
	
			
				 7.5
			Competing Product.  “Competing Product” means any product or service that competes or competed with any Company Product sold, provided, or intended to be sold or provided by Company at any time during the term of this Agreement and for one year after its termination.

			
	
			
				 7.6
			Earnings Threshold.  The restrictive covenants set forth in Sections 7.2(a) and (b) shall apply only in the event that Contractor’s earnings per year from the Company exceed $250,000.00 or the then applicable adjusted earnings threshold established pursuant to RCW 49.62.040,  as reported on IRS Form 1099-MISC.  For purposes of this Section 7.6, Contractor’s annualized earnings shall be determined as of the date enforcement of the restrictive covenants is sought.

			
	
			
				 7.7
			Severability.  The covenants contained in Section 7 will be construed as a series of separate covenants, one for each country, city, state, or any similar subdivision in any Geographic Area.  If, in any judicial proceeding, a court refuses to enforce any of these separate covenants (or any part of a covenant), then the unenforceable covenant (or part) will be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions) to be enforced.  If the provisions of this section are deemed to exceed the time, geographic, or scope limitations permitted by law, then the provisions will be reformed to the maximum time, geographic, or scope limitations permitted by law.  

			
	
			
				 7.8
			Reasonableness.  The nature of Company’s business is such that if Contractor were to become employed by, or substantially involved in the business of, a competitor to Company soon after the termination of this Agreement, it would be difficult for Contractor not to rely on or use Company’s trade secrets and Confidential Information.  Therefore, Contractor enters into this Agreement to reduce the likelihood of disclosure of Company’s trade secrets and Confidential Information.  Contractor acknowledges that the limitations of time, geography, and scope of activity agreed to above are reasonable because, among other things,  Company is engaged in a highly competitive industry,  Contractor will have access to the trade secrets and know‐how of Company, including without limitation the plans and strategy (and in particular, the competitive strategy) of Company, and  these limitations are necessary to protect the trade secrets, Confidential Information, and goodwill of Company.

			
	
			
				 8.
			ARBITRATION AND EQUITABLE RELIEF

			
	
			
				 8.1
			Arbitration.  Except as provided in Section 8.3 below, any dispute or controversy arising out of, relating to, or concerning any interpretation, construction, performance, or breach of this Agreement, will be settled by arbitration to be held in King County, Washington, in accordance with the rules then in effect of the American Arbitration Association.  The arbitrator may grant injunctions or other relief in the dispute or controversy.  The decision of the arbitrator will be final, conclusive, and binding on the parties to the arbitration.  Judgment may be entered on the arbitrator’s decision in any court having jurisdiction.  Company and Contractor will each pay one‐half of the costs and expenses of the arbitration, and each will separately pay their own counsel fees and expenses.

			
	
			
				 8.2
			Waiver or Right to Jury Trial.  This arbitration clause constitutes a waiver of Contractor’s right to a jury trial for all disputes relating to all aspects of the independent contractor relationship (except as provided in Section 8.3 below), including, but not limited to, the following claims:

			
	
			
				 (a)
			claims, both express and implied, for breach of contract, breach of the covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional interference with contract or prospective economic advantage, and defamation;

			
	
			
				 (b)
			any and all claims for violation of any federal, state, or municipal statute.

			
	
			
				 8.3
			Equitable Remedies.  The parties may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this Agreement and without abridgement of the powers of the arbitrator.

			
	
			
				 8.4
			Consideration.   Each party’s promise to resolve claims by arbitration in accordance with the provisions of this Agreement, rather than through the courts, is consideration for the other party’s like promise.

			
	
			
				 9.
			INDEPENDENT CONTRACTOR; BENEFITS

			
	
			
				 9.1
			Independent Contractor.  It is the express intention of the parties that Contractor perform the Services as an independent contractor.  Nothing in this Agreement will in any way be construed to constitute Contractor as an agent, employee, or representative of Company.  Without limiting the generality of the foregoing, Contractor is not authorized to bind Company to any liability or obligation or to represent that Contractor has any authority.  Contractor must furnish (or reimburse Company for) all tools and materials necessary to accomplish this contract, and will incur all expenses associated with performance, except as expressly provided for in Exhibit A.  Contractor is obligated to report as income all compensation received by Contractor under this Agreement, and to pay all self‐employment and other taxes thereon.  Contractor will indemnify and hold Company harmless to the extent of any obligation imposed on Company  to pay in withholding taxes or similar items or  resulting from a determination that Contractor is not an independent contractor.

			
	
			
				 9.2
			Benefits.  Contractor acknowledges that Contractor’s employees will not receive benefits from Company either as a Contractor or employee, including without limitation paid vacation, sick leave, medical insurance, and 401(k) participation.  If a Contractor employee is reclassified by a state or federal agency or court as an employee of Company, Contractor’s employee will become a reclassified employee and will receive no benefits except those mandated by state or federal law, even if by the terms of Company's benefit plans in effect at the time of the reclassification Contractor’s employee would otherwise be eligible for benefits.

			
	
			
				 10.
			MISCELLANEOUS

			
	
			
				 10.1
			Services and Information Prior to Effective Date.  All services performed by Contractor and all information and other materials disclosed between the parties prior to the Effective Date will be governed by the terms of this Agreement, except where the services are covered by a separate agreement between Contractor and Company.

			
	
			
				 10.2
			Nonassignment and No Subcontractors.  Neither this Agreement nor any rights under this Agreement may be assigned or otherwise transferred by Contractor, in whole or in part, whether voluntarily or by operation of law, without the prior written consent of Company.  Contractor may not utilize a subcontractor or other third party to perform its duties under this Agreement without the prior written consent of Company.  Subject to the foregoing, this Agreement will be binding upon and will inure to the benefit of the parties and their respective successors and assigns.  Any assignment in violation of the foregoing will be null and void.

			
	
			
				 10.3
			Notices.  Any notice required or permitted under the terms of this Agreement or required by law must be in writing and must be:   delivered in person,  sent by first class registered mail, or air mail, as appropriate, or  sent by overnight air courier, in each case properly posted and fully prepaid to the appropriate address as set forth below.  Either party may change its address for notices by notice to the other party given in accordance with this Section.  Notices will 
		

		 

		

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			be deemed given at the time of actual delivery in person, three business days after deposit in the mail as set forth above, or one day after delivery to an overnight air courier service.

			
	
			
				 10.4
			Waiver.  Any waiver of the provisions of this Agreement or of a party's rights or remedies under this Agreement must be in writing to be effective.  Failure, neglect, or delay by a party to enforce the provisions of this Agreement or its rights or remedies at any time, will not be construed as a waiver of the party's rights under this Agreement and will not in any way affect the validity of the whole or any part of this Agreement or prejudice the party's right to take subsequent action.  Exercise or enforcement by either party of any right or remedy under this Agreement will not preclude the enforcement by the party of any other right or remedy under this Agreement or that the party is entitled by law to enforce.

			
	
			
				 10.5
			Severability.  If any term, condition, or provision in this Agreement is found to be invalid, unlawful, or unenforceable to any extent, the parties will endeavor in good faith to agree to amendments that will preserve, as far as possible, the intentions expressed in this Agreement.  If the parties fail to agree on an amendment, the invalid term, condition, or provision will be severed from the remaining terms, conditions, and provisions of this Agreement, which will continue to be valid and enforceable to the fullest extent permitted by law.

			
	
			
				 10.6
			Confidentiality of Agreement.  Contractor will not disclose any terms of this Agreement to any third party without the consent of Company, except as required by applicable laws.

			
	
			
				 10.7
			Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed to be an original and together will constitute one and the same agreement.

			
	
			
				 10.8
			Governing Law.  The internal laws of Washington, but not the choice of law rules, govern this Agreement.

			
	
			
				 10.9
			Headings.  Headings are used in this Agreement for reference only and will not be considered when interpreting this Agreement.

			
	
			
				 10.10
			Integration.  This Agreement and all exhibits contain the entire agreement of the parties with respect to the subject matter of this Agreement and supersede all previous communications, representations, understandings, and agreements, either oral or written, between the parties with respect to said subject matter.  No terms, provisions, or conditions of any purchase order, acknowledgement, or other business form that either party may use in connection with the transactions contemplated by this Agreement will have any effect on the rights, duties, or obligations of the parties under, or otherwise modify, this Agreement, regardless of any failure of a receiving party to object to these terms, provisions, or conditions.  This Agreement may not be amended, except by a writing signed by both parties.

		
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						“Company”

					
						JONES SODA CO.

					
					
						“Contractor”

					
						MAMBO FOODS, LLC

				
	
					
						Name: Jeff Anderson

					
					
						Name:  Jamie Colbourne

				
	
					
						Title: Board Member and Audit Committee Chair

					
					
						Title:  Member and Manager

				
	
					
						Signature: /s/ Jeff Anderson                  

					
						Address for Notice:  66 Hanford Street, #150, Seattle, WA  98134  

					
					
						Signature: /s/ Jamie Colbourne

					
						 

					
						Jamie Colbourne (in his individual capacity

				
	
					
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						Signature: /s/ Jamie Colbourne

				

		
			 
		

		
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		EXHIBIT A
		

		
			Services and Compensation
		

			
	
			
				 1.
			Contact; Reporting.  Contractor’s principal contact with Company, to whom Contractor will report:

		
			Name:  Michael M. Fleming
		

		
			Title:  Chairman of the Board
		

		
			Name:  Jeffrey Anderson
		

		
			Title:  Chairman of the Company’s Audit Committee 
		

			
	
			
				 2.
			Services.  Services include, but are not limited to, the following:

		
			Services include working with the Company’s existing Chief Executive Officer to transition her duties to Contractor through her departure date; as of April 6, 2020, serving as the Company’s Interim Chief Executive Officer and Acting Principal Financial Officer.  In this role, Contractor shall report to the Board of Directors and shall, among other things, be responsible for creating, planning, implementing and integrating the strategic direction of the Company; leading, guiding and evaluating the Company’s executive and management-level employees; acting as a liaison with the Company’s Board of Directors; assisting the Company with the selection and hiring of a permanent Chief Executive Officer; managing the Company’s finances and being responsible for financial reporting; overseeing and managing the Company’s accounting team; and certifying, as necessary, the Company’s periodic filings with the SEC. 
		

		
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				 3.
			Compensation

			
	
			
				 (a)
			Company will pay Contractor $25,000 per month. 

			
	
			
				 (b)
			Company will reimburse Contractor for all reasonable expenses incurred by Contractor in performing Services pursuant to this Agreement if Contractor submits receipts for the expenses to Company in accordance with Company policy; provided that Contractor will get prior approval by either Jeffrey Anderson or Michael Fleming for any reimbursable expense in excess of $5,000. 

		 

		

			1Exhibit

GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.
TIME-BASED RESTRICTED STOCK UNIT AGREEMENT FOR EMPLOYEES

This Restricted Stock Unit Agreement (this “Agreement”) is made by and between Griffin Capital Essential Asset REIT, Inc., a Maryland corporation (the “Company”), and ____________________ (the “Participant”).

WHEREAS, the Company maintains a long-term incentive plan named Griffin Capital Essential Asset REIT II, Inc. Employee and Director Long Term Incentive Plan (the “Plan”);

WHEREAS, the Plan allows the grant of Awards to full-time employees of the Company;

WHEREAS, the compensation committee (the “Committee”) of the board of directors of the Company (the “Board”) has designated employees of Griffin Capital Real Estate Company, LLC (“GRECO”), a Delaware limited liability company and wholly-owned subsidiary of Griffin Capital Essential Asset Operating Partnership, L.P., the operating partnership of the Company and owner of 100% of the equity interests of GRECO (the “Operating Partnership”), as employees of the Company for purposes of the Plan and has otherwise determined that such employees of GRECO are eligible persons under the Plan;

WHEREAS, the Committee has determined that GRECO is an Affiliate under the Plan;

WHEREAS, the Participant is a full-time employee of GRECO;

WHEREAS, Section 10 of the Plan provides for the issuance of Other Equity-Based Awards, which includes restricted stock units (“RSUs”), to eligible persons; and

WHEREAS, the Committee has determined that it would be to the advantage and in the best interest of the Company and its Affiliates to cause RSUs to be issued to the Participant under the Plan, subject to the terms and conditions set forth herein (the “Award”).

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

1.    Issuance of RSUs. The Participant shall be granted, by the Company, a total of [INSERT NUMBER] RSUs, granted as of January 15, 2020 (the “Grant Date”), subject to the terms and conditions, rights, voting powers, restrictions and limitations set forth herein and in the Plan.

2.    Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below.  All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Plan.

		
	(a)
	“Cause” means “Cause” as defined in the Plan.

(b)     “Change in Control” means a “change in control event” with respect to either GRECO or the Company, or both of them, within the meaning of Section 409A of the Code.

(c)    “Code” means the Internal Revenue Code of 1986, as amended.

(d)    “Person” means “Person” as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
    
(e)     “RSUs” means an Award issued under the Plan which entitles the holder, upon satisfaction of the vesting and other conditions set forth in the applicable award agreement and Plan, to be issued Shares.

(f)    “Share” means one share of common stock of the Company.

(g)    “Subsidiary” means with respect to any Person, any entity in which it owns, directly or indirectly, the majority of the equity.
 
3.    Plan Governs; Stockholder Rights; Transfer Restrictions.

		
	(a)
	The RSUs are subject to the terms of the Plan and this Agreement.

(b)    The Award shall not confer upon the Participant any rights as a stockholder of the Company, including but not limited to, the right to receive any cash distributions or dividends and the right to vote on any issues presented to stockholders for a vote, unless and until such issued Shares are reflected as issued and outstanding on the Company’s stock ledger.  For the avoidance of doubt, a Participant will not receive any cash distributions or dividends on any RSUs until such RSUs have vested.  For instance, if the RSUs vest in accordance with the vesting schedule described in Section 4 below, a Participant will receive an amount of Shares equal to 25% of the Participant’s RSUs as of December 31, 2020, 50% of the Participant’s RSUs as of December 31, 2021, 75% of the Participant’s RSUs as of December 31, 2022 and 100% of the Participant’s RSUs as of December 31, 2023, and will accordingly have all rights of a stockholder of the Company with respect to such Shares at such time.

(c)    Without the consent of the Committee (which it may give or withhold in its sole discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any unvested RSUs or any portion of the Award attributable to such unvested RSUs (or any securities into which such unvested RSUs are converted or exchanged), other than by will, pursuant to the laws of descent and distribution or to a “family member” within the meaning of the Securities Act (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of unvested RSUs or the Award to the Company.  Any permitted transferee of the Award or RSUs shall take such Award or RSUs subject to the terms of the Plan and this Agreement.  Any such permitted transferee must, upon the request of the Company, agree to such waivers, limitations, and restrictions as the Company may reasonably require.  Any Transfer of the Award or RSUs which is not made in compliance with the Plan and this Agreement shall be null and void and of no effect ab initio.  

4.    Vesting. The RSUs shall vest and become nonforfeitable with respect to 25% of the RSUs on December 31 of each of 2020, 2021, 2022 and 2023, subject to the Participant’s continued employment and service with GRECO, the Company or any of their Subsidiaries (or applicable successors thereto) through the applicable vesting date; provided that vesting may accelerate in the event of (i) the death or Disability of a Participant, in which instance the RSUs shall vest in full as of the date of the Participant’s death or the date of determination of the Participant’s Disability, as applicable, or (ii) the occurrence of a Change in 

Control, in which instance the RSUs shall vest in full as of immediately prior thereto, unless this Award is assumed, continued, converted or replaced with a substantially similar award by the Company or a successor entity or its parent or subsidiary.  For purposes of this Agreement, the term “Disability” shall mean the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.

5.     Effect of Termination of Service.  In the event of the Participant’s termination of employment and service with GRECO, the Company and their Subsidiaries for any reason, all RSUs that have not vested as of the date of such termination of employment or service (after taking into account any accelerated vesting that occurs in connection with such termination) shall automatically and without further action be cancelled and forfeited without payment of any consideration therefor, and the Participant shall have no further right to or interest in such RSUs.

6.    Settlement of Award.  Subject to the Participant’s timely execution of any required documents as described in Section 8, as soon as administratively practicable following the date that an RSU vests, but in any event within seventy (70) days thereafter, the Company will issue to the Participant one Share for each vested RSU (on a one-to-one basis).  In all cases, the issuance and delivery of Shares under this Agreement is intended to qualify as a short-term deferral as provided by Treasury Regulation Section 1.409A-1(b)(4) and shall be construed and administered in such a manner. 

7.     Adjustments for Corporate Transactions and Other Events.

(a)     Stock Dividend, Stock Split and Reverse Stock Split.  Upon a stock dividend of, or stock split or reverse stock split affecting, the Shares, the Committee shall adjust the number of outstanding RSUs in an equitable manner to reflect such event.  Adjustments under this paragraph will be made by the Committee, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.

(b)    Merger, Consolidation and Other Events. If the Company shall be the surviving or resulting corporation in any merger or consolidation in which the Shares are converted into other securities, the RSUs shall pertain to and apply to the securities to which a holder of the number of Shares subject to the RSUs would have been entitled.  If the stockholders of the Company receive by reason of any distribution in total or partial liquidation or pursuant to any merger of the Company or acquisition of its assets, securities of another entity or other property (including cash), then the rights of the Company under this Agreement shall inure to the benefit of the Company’s successor, and this Agreement shall apply to the securities or other property (including cash) to which a holder of the number of Shares subject to the RSUs would have been entitled, in the same manner and to the same extent, including the same restrictions and vesting and payment schedule, as the RSUs.

(c)    Other Adjustments.  Notwithstanding the foregoing, the RSUs shall be subject to adjustment as set forth in the Plan.

8.    Company Documents.  At the Company’s reasonable and customary request, the Participant must timely execute and deliver to the Company any shareholders’ agreements, investment representations or other documents that the Company, in its sole discretion, deems necessary or desirable to effectuate the issuance of the Shares.

9.     Securities Law Compliance.  None of the Company’s securities are presently publicly traded, and the Company has made no representations, covenants or agreements as to whether there will be a public market for any of its securities.  The RSUs cannot be transferred by the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is available.  The Company has made no agreements, covenants or undertakings whatsoever to register the transfer of the RSUs under the Securities Act.  The Company has made no representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, shall be available.  If an exemption under Rule 144 is available at all, it shall not be available until at least six months from issuance of the Award and then not unless the terms and conditions of Rule 144 have been satisfied.  

To the extent not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the RSUs or any Shares received as a result thereof, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the 14 days prior to, and for a period of up to 90 days beginning on the date of the pricing of any public or private debt or equity securities offering by the Company (except as part of such offering), if and to the extent requested in writing by the Company in the case of a non-underwritten public or private offering or if and to the extent requested in writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be) and consented to by the Company, which consent may be given or withheld in the Company’s sole and absolute discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up agreement provided by the Company, managing underwriter or underwriters, or initial purchaser or initial purchasers, as the case may be).

Certificates evidencing the Shares issued in connection with the RSUs, to the extent such certificates are issued, may bear such restrictive legends as the Company and/or the Company’s counsel may deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends or any legends similar thereto:
 
“Any transfer of the securities represented hereby shall be invalid unless a Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”) is in effect as to such transfer or in the opinion of counsel for Griffin Capital Essential Asset REIT, Inc. (the “Company”) such registration is unnecessary in order for such transfer to comply with the Securities Act. The securities represented hereby are subject to transferability and other restrictions as set forth in (i) a written agreement with the Company and (ii) the Griffin Capital Essential Asset REIT II, Inc. Employee and Director Long Term Incentive Plan, in each case, as has been and as may in the future be amended (or amended and restated) from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.”

The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act, and any and all applicable laws.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award is granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

10.     Taxes.  GRECO, the Company or any of their Subsidiaries may withhold from the Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or employment taxes resulting from the vesting or settlement of the Award (including the RSUs); provided, however, that GRECO, the Company and their Subsidiaries, and the Affiliates, have not made warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement, and the Participant is in no manner relying on GRECO, the Company or any of their Subsidiaries, or any Affiliate, or the representatives of each, for an assessment of such tax consequences.  Notwithstanding the foregoing, and with the prior approval of the Committee, the Participant may, upon vesting or settlement of the RSUs, elect to have the Company withhold Shares equal in value to the maximum statutory rate for federal, state, and local income and employment taxes applicable in Participant’s jurisdiction to satisfy any withholding tax obligations resulting from the vesting and settlement of the RSUs.  To the extent that the Shares withheld are not sufficient to cover all taxes due, the Participant shall be responsible for any remaining amount of taxes that may be due.  To the extent that any Federal Insurance Contributions Act tax withholding obligations arise in connection with the Award, the Company shall accelerate the payment of a portion of the Award sufficient to satisfy (but not in excess of) such tax withholding obligations and any tax withholding obligations associated with any such accelerated payment, and the Company shall withhold such amounts in satisfaction of such withholding obligations.  The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her receipt and settlement of the RSUs.

11.    Remedies.  The Participant shall be liable to GRECO, the Company and their Subsidiaries for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the RSUs which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees that the Company shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. The Participant shall not urge as a defense that there is an adequate remedy at law.
 
12.    Code Section 409A.

(a)    General.  To the extent applicable, this Agreement shall be interpreted so that this Award is exempt from (or, to the extent that exemption is not possible, to comply with) Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”).  Notwithstanding any provision of this Agreement to the contrary, in the event that following the Grant Date the Company determines that the Award must be revised to maintain exemption from or to comply with Section 409A, the Company may adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to (a) exempt the Award from Section 409A and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A; provided, however, that this Section 12 shall not create any obligation on the part of GRECO, the Company or any of their Subsidiaries to adopt any such amendment, policy or procedure or take any such other action, and none of GRECO, the Company or any of their Subsidiaries shall have any obligation to indemnify any Person for any taxes imposed under or by operation of Section 409A (except to the extent such taxes are imposed due to an operational failure).

(b)    Notwithstanding anything to the contrary in this Agreement, no amounts shall be paid to the Participant under this Agreement during the six (6)-month period following the Participant’s “separation from service” to the extent that the Committee determines that the Participant is a “specified employee” (each within the meaning of Code Section 409A) at the time of such separation from service and that paying such amounts at the time or times indicated in this Agreement would be a prohibited distribution under Code 

Section 409A(a)(2)(b)(i).  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six (6)-month period (or such earlier date upon which such amount can be paid under Code Section 409A without being subject to such additional taxes), the Company shall pay to the Participant in a lump-sum all amounts that would have otherwise been payable to the Participant during such six (6)-month period under this Agreement.  Such specified employee delay does not apply to payments made on account of payment of employment taxes or income inclusion, as described in Treasury Regulation Section 1.409A-3(j)(4)(vi) and (vii).

13.    Miscellaneous.  
 
(a)     Incorporation of the Plan.  This Agreement is subject to the terms and conditions of the Plan, which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.
 
(b)     Not a Contract of Service Relationship.  Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue to serve as an employee or other service provider of GRECO, the Company or any of their Subsidiaries or shall interfere with or restrict in any way the rights of GRECO, the Company or any of their Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of the Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between GRECO, the Company or any Subsidiary and the Participant.

(c)     No Benefit Accruals.  This Award is designated as a bonus that is in addition to the regular cash wages of the Participant. No amount of stock or income received by the Participant pursuant to this Award will be considered compensation for purposes of any severance or any pension, retirement, insurance or other employee benefit plan or program of GRECO, the Company or any of their Subsidiaries in calculating any employment-related benefits to which the Participant may be entitled from the Participant’s employment or service with GRECO.  Participation in the Plan is discretionary and voluntary, and the Plan can be terminated at any time.  This Award does not create a right or entitlement to future awards, whether pursuant to the Plan or otherwise.
 
(d)     Governing Law.  The laws of the State of California shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

(e)     Amendment, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, however, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Award in any material way without the prior written consent of the Participant.  For purposes of this paragraph, “material” means a change that the Committee or Board determines, in good faith, could reasonably be expected to result in a reduction in the dollar value of the RSUs or could reasonably be expected to result in a curtailment of the Participant’s rights to receive the Shares hereunder.  For clarity, changes to features that the Committee or Board determines in good faith are an insignificant or unimportant feature of the Award, involve an administrative process, or are too remote to be reasonably expected to occur, shall not be considered “material.” 
 
(f)     Notices. Any notice to be given under the terms of this Agreement shall be addressed to the Company in care of the Secretary of the Company at the Company’s principal office, and any notice to be 

given to the Participant shall be addressed to the Participant at the Participant’s last address reflected on GRECO’s records.  Any notice shall be deemed duly given when sent via email or when sent by reputable overnight courier or by certified mail (return receipt requested) through the United States Postal Service.  
 
(g)     Successors and Assigns. GRECO, the Company or any Subsidiary may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of GRECO, the Company and their Subsidiaries.  Subject to the restrictions on transfer set forth in Section 3 hereof, this Agreement shall be binding upon the Participant and his or her heirs, executors, committees, successors and assigns.
 
(h)     Entire Agreement. The Plan and this Agreement (including all exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of GRECO, the Company and their Subsidiaries and the Participant with respect to the subject matter hereof.
 
(i)     Clawback.  This Award shall be subject to any clawback or recoupment policy required by law.
 
(j)     Spousal Consent.  As a condition to GRECO’s, the Company’s and any Affiliate’s obligations under this Agreement, the spouse of the Participant, if any, shall execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit A.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.
 
GRIFFIN CAPITAL ESSENTIAL ASSET REIT, INC.,
a Maryland corporation
 
By: __________________________________
Name: Michael J. Escalante
Title: Chief Executive Officer
 
The Participant hereby accepts and agrees to be bound by all of the terms and conditions of this Agreement.
 
_____________________________________
Participant 

Print Name: ___________________________
 
 

Exhibit A

CONSENT OF SPOUSE
 
I, ____________________, spouse of ___________________, have read and approve the foregoing Time-Based Restricted Stock Unit Agreement (the “Agreement”), and the Plan (as defined in the Agreement). In consideration of the granting to my spouse of the RSUs of Griffin Capital Essential Asset REIT, Inc. (the “Company”) as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights and taking of all actions under the Agreement and agree to be bound by the provisions of the Agreement insofar as I may have any rights in said Agreement or any Shares issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Agreement or otherwise. I understand that this Consent of Spouse may not be altered, amended, modified or revoked other than by a writing signed by me, and the Company.
 
Grant Date: January 15, 2020
 
 
By: ________________________________
Print name:__________________________
Dated: ___________________
 
 
If applicable, you must print, complete and return this Consent of Spouse to Griffin Capital Essential Asset REIT, Inc. Please only print and return this page.

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