Document:

tw_Ex10_4

		
			Exhibit 10.4
		

		
			 
		

		
			TRADEWEB MARKETS INC.
		

		
			2019 OMNIBUS EQUITY INCENTIVE PLAN
		

		
			PRSU - NOTICE OF GRANT
		

		
			 
		

		
			(Version 2020)
		

		
			 
		

		
			Tradeweb Markets Inc. (the “Company”), a Delaware corporation, hereby grants to the Grantee set forth below (the “Grantee”) Performance Restricted Stock Units (the “PRSUs”), pursuant to the terms and conditions of this Notice of Grant (the “Notice”), the PRSU Award Agreement attached hereto as Exhibit A (the “Award Agreement”), and the Tradeweb Markets Inc. 2019 Omnibus Equity Incentive Plan (the “Plan”).  Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Award Agreement or, if not defined therein, in the Plan, unless the context requires otherwise.  Each PRSU represents the right to receive one (1) Share at the time and in the manner set forth in Section 5 of the Award Agreement.
		

		
			 
		

			
					
						Date of Grant:

					
					
						[]

				
	
					
						 

					
					
						 

				
	
					
						Name of Grantee:

					
					
						[]

				
	
					
						 

					
					
						 

				
	
					
						Number of PRSUs:

					
					
						[]

				
	
					
						 

					
					
						 

				
	
					
						Vesting:

					
					
						The PRSUs shall vest pursuant to the terms and conditions set forth in Section 3 of the Award Agreement.

				

		
			 
		

		
			The PRSUs shall be subject to the execution and return of this Notice by the Grantee to the Company within 15 days of the Grantee’s receipt of this Notice (including by utilizing an electronic signature and/or web-based approval and notice process or any other process as may be authorized by the Company). By executing this Notice, the Grantee acknowledges that his or her agreement to the covenants set forth in the Restrictive Covenant Agreement entered into by and between the Grantee and the Company on or about the date hereof is a material inducement to the Company in granting this Award to the Grantee.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			
		

		
			

		 

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Notice of Grant as of the Date of Grant set forth above.
		

		
			 
		

			
					
						 

					
					
						TRADEWEB MARKETS INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

				
	
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						GRANTEE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name: []

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

		
			Exhibit A
		

		
			TRADEWEB MARKETS INC.
		

		
			2019 OMNIBUS EQUITY INCENTIVE PLAN
		

		
			PRSU AWARD AGREEMENT
		

		
			 
		

		
			(Version 2020)
		

		
			 
		

		
			THIS PRSU AWARD AGREEMENT (this  “Award Agreement”) is entered into by and among Tradeweb Markets Inc. (the “Company”) and the individual set forth on the signature page to that certain Notice of Grant (the “Notice”) to which this Award Agreement is attached.  The terms and conditions of the PRSUs granted hereby, to the extent not controlled by the terms and conditions contained in the Plan, shall be as set forth in the Notice and this Award Agreement.  Capitalized terms used but not defined herein shall have the meaning attributed to such terms in the Notice or, if not defined therein, in the Plan.
		

		
			1.         No Right to Continued Employee Status or Consultant Service
		

		
			 
		

		
			Nothing contained in this Award Agreement shall confer upon the Grantee the right to the continuation of his or her employment, or, in the case of a Consultant or Director, to the continuation of his or her service arrangement, nor shall anything herein interfere with the right of the Company or any of its Subsidiaries or other Affiliates to Terminate the Grantee.
		

		
			 
		

		
			2.         Term of PRSUs
		

		
			 
		

		
			This Award Agreement shall remain in effect until the PRSUs have fully vested and been settled or been forfeited by the Grantee as provided in this Award Agreement.
		

		
			 
		

		
			3.         Vesting of PRSUs
		

		
			 
		

		
			(a)       Subject to the Grantee’s not having Terminated, except as specifically provided herein or in the Plan, the PRSUs granted hereunder will fully vest on the earliest to occur of (i) January 1, 2023,  (ii) the Grantee’s Retirement and (iii) the occurrence of a Change in Control (such applicable date, the  “Vesting Date”). For purposes of this Award Agreement, “Retirement” means a Grantee’s voluntary resignation upon six months’ notice to the Company for any reason after attaining a combination of (A) age 55 with at least 10 years of credited service or (B) age 65 with at least 5 years of credited service. PRSUs that have vested as described herein are referred to as “Vested PRSUs.”
		

		
			(b)       If the Grantee Terminates before the Vesting Date (other than on account of Retirement), no amounts will be payable hereunder unless the Grantee is Terminated by the Company without Cause within 180 days before the “Settlement Date” (as defined below), or on account of his or her death or Disability, in which case the Grantee or the Grantee’s estate will be entitled to retain a pro rated number of PRSUs, which shall remain eligible for settlement in accordance with Section 5 below (including application of any “Performance Modifier,” as defined below).  For purposes of the foregoing, the pro rated number of PRSUs the Grantee or the Grantee’s estate shall be entitled to retain shall be calculated by multiplying the total number
		

		
			
		

		
			

		 

		

			 

		

		

		
			of PRSUs awarded hereunder by a fraction, the numerator of which is the number of days worked since January 1, 2020 and the denominator of which is the total number of days in the normal vesting period (i.e., the number of days between January 1, 2020 and January 1, 2023).
		

		
			(c)       Notwithstanding anything herein, if a Grantee is Terminated by the Company for Cause at any time prior to the Settlement Date, the Grantee shall forfeit all rights  hereunder (including with respect to Vested PRSUs).
		

		
			4.         Dividend Equivalent Rights
		

		
			 
		

		
			The PRSUs granted hereunder will accumulate dividend equivalent rights in respect of any dividends paid on Shares (on a one Share to one PRSU basis) from January 1, 2020 through the Settlement Date (as defined below).  To the extent the PRSUs that gave rise to any dividend equivalent rights are forfeited pursuant to this Award or the Plan, those dividend equivalent rights will also be forfeited.  The aggregate dollar amount of dividend equivalent rights accumulated under this Section 4 and not forfeited shall be added to, and be settled at the same time as the related PRSUs pursuant to Section 5 below.
		

		
			 
		

		
			5.         Settlement of PRSUs
		

		
			 
		

		
			(a)       This Award shall entitle the Grantee to receive a number of Shares equal to the Settlement Number (as defined below), less a number of Shares having an aggregate Fair Market Value equal to the withholding and employment taxes associated with the settlement of the PRSUs. The “Settlement Number” is equal to the sum of (i) the product of the number of Vested PRSUs multiplied by the Performance Modifier plus (ii) the number of Shares that results from the quotient of (a) the product of any dividend equivalent rights payable pursuant to Section 4 above multiplied by the Performance Modifier, divided by (b) the Fair Market Value as of the Settlement Date. As used in this Award Agreement, “Performance Modifier” means that certain percentage range established by the Board in the calendar year following the calendar year in which the Date of Grant occurs, after consultation with the Company’s Chief Executive Officer, to be based on the Company’s EPS calculation (or other performance metrics approved by the Board) applicable to the year in which the Date of Grant occurs;  provided,  however, that if a Change in Control occurs prior to the establishment of the Performance Modifier, the Performance Modifier shall be 100%.
		

		
			(b)       The settlement described in this Section 5 shall occur on the Settlement Date. For purposes of this Award Agreement, the “Settlement Date” means January 2, 2023; provided,  however, that if a “Qualified Change in Control” (as defined below) occurs prior to such date, settlement shall occur at the time(s) and in the same form of consideration as the consideration delivered to the Company’s stockholders in connection with such transaction, to the extent permitted by Code Section 409A. For purposes of the foregoing, a “Qualified Change in Control” is a Change in Control that also constitutes a change of ownership or effective control of, or in the ownership of a substantial portion of the assets of, the Company for purposes of Code Section 409A.
		

		
			
		

		
			

		 

		

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			6.         Restrictive Covenants
		

		
			 
		

		
			By signing the Notice, the Grantee acknowledges that he or she has entered into a Restricted Covenant Agreement with the Company on or about the date hereof which supersedes any prior restrictive covenant agreements entered into by the Grantee and the Company (if any).
		

		
			 
		

		
			7.         Prohibited Activities
		

		
			 
		

		
			(a)        No Sale or Transfer. Unless otherwise required by law, the PRSUs shall not be (i) sold, transferred or otherwise disposed of, (ii) pledged or otherwise hypothecated or (iii) subject to attachment, execution or levy of any kind, other than by will or by the laws of descent or distribution; provided,  however, that any transferred PRSUs will be subject to all of the same terms and conditions as provided in the Plan and this Award Agreement and the Grantee’s estate or beneficiary appointed in accordance with the Plan will remain liable for any withholding tax that may be imposed by any federal, state or local tax authority.
		

		
			 
		

		
			(b)        Right to Terminate PRSUs and Recovery. The Grantee understands and agrees that the Company has granted the PRSUs to the Grantee to reward the Grantee for the Grantee’s future efforts and loyalty to the Company and its Affiliates by giving the Grantee the opportunity to participate in the potential future appreciation of the Company.  Accordingly, if (a) the Grantee materially violates the Grantee’s obligations relating to the non-disclosure or non-use of confidential or proprietary information under any Restrictive Agreement to which the Grantee is a party, or (b) the Grantee materially breaches or violates the Grantee’s obligations relating to non-disparagement under any Restrictive Agreement to which the Grantee is a party, or (c) the Grantee engages in any activity prohibited by this Section 7 of this Award Agreement, or (d) the Grantee materially breaches or violates any non-solicitation obligations under any Restrictive Agreement to which the Grantee is a party, or  (e) the Grantee is convicted of a felony against the Company or any of its Affiliates or (f) the Grantee breaches or violates any non-competition obligations under any Restrictive Agreement to which the Grantee is a party (as applicable), then, in addition to any other rights and remedies available to the Company, the Company shall be entitled, at its option, exercisable by written notice, to terminate the PRSUs (including the Vested PRSUs) without consideration, which shall be of no further force and effect.  “Restrictive Agreement” shall mean (i) for any Grantee who is not a resident of the State of California, any agreement between the Company or any Subsidiary and the Grantee that contains non-competition, non-solicitation, non-hire, non-disparagement, or confidentiality restrictions applicable to the Grantee and (ii) for any Grantee who is a resident of the State of California, any agreement between the Company or any Subsidiary and the Grantee that contains non-solicitation, non-hire, non-disparagement, or confidentiality restrictions applicable to the Grantee.
		

		
			 
		

		
			(c)        Other Remedies. The Grantee specifically acknowledges and agrees that its remedies under this Section 7 shall not prevent the Company or any Subsidiary from seeking injunctive or other equitable relief in connection with the Grantee’s breach of any Restrictive Agreement.  In the event that the provisions of this Section 7 should ever be deemed to exceed
		

		
			
		

		
			

		 

		

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			the limitation provided by applicable law, then the Grantee and the Company agree that such provisions shall be reformed to set forth the maximum limitations permitted.
		

		
			 
		

		
			8.         No Rights as Stockholder
		

		
			 
		

		
			The Grantee shall have no rights as a stockholder with respect to the Shares covered by the PRSUs until the effective date of issuance of the Shares and the entry of the Grantee’s name as a shareholder of record on the books of the Company following delivery of the Shares in settlement of the PRSUs.
		

		
			 
		

		
			9.         Withholding
		

		
			 
		

		
			All payments made pursuant to this Award Agreement shall be subject to all applicable U.S. federal, state and local and applicable non-U.S. tax, social security and similar withholdings. The Grantee shall be solely responsible for the payment of all taxes relating to the payment or provision of any amounts or benefits hereunder. The Company shall have the right and is hereby authorized to withhold, any applicable withholding taxes in respect of the PRSUs, or any payment or transfer under, or with respect to, the PRSUs and to take such other action as may be necessary in the reasonable opinion of the Board to satisfy all obligations for the payment of such withholding taxes.
		

		
			 
		

		
			10.       Securities Laws
		

		
			 
		

		
			Upon the acquisition of any Shares pursuant to the settlement of the PRSUs, the Grantee will make such written representations, warranties, and agreements as the Committee may reasonably request in order to comply with securities laws or with this Award Agreement. The Grantee hereby agrees not to offer, sell or otherwise attempt to dispose of any Shares issued to the Grantee upon settlement of the PRSUs in any way which would: (x) require the Company to file any registration statement with the Securities and Exchange Commission (or any similar filing under state law or the laws of any other county) or to amend or supplement any such filing or (y) violate or cause the Company to violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, or any other Federal, state or local law, or the laws of any other country. The Company reserves the right to place restrictions on any Shares the Grantee may receive as a result of the settlement of the PRSUs.
		

		
			 
		

		
			11.       Modification, Amendment, and Termination of PRSUs
		

		
			 
		

		
			Except as set forth in Section 13(b) hereof, this Award Agreement may not be modified, amended, terminated and no provision hereof may be waived in whole or in part except by a written agreement signed by the Company and the Grantee and no modification shall, without the consent of the Grantee, alter to the Grantee’s material detriment or materially impair any rights of the Grantee under this Award Agreement except to the extent permitted under the Plan.
		

		
			 
		

		
			
		

		
			

		 

		

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			12.       Notices
		

		
			 
		

		
			Unless otherwise provided herein, any notices or other communication given or made pursuant to the Notice, this Award Agreement or the Plan shall be in writing and shall be deemed to have been duly given (i) as of the date delivered, if personally delivered (including receipted courier service) or overnight delivery service, with confirmation of receipt; (ii) on the date of delivery by email to the address indicated or through an electronic administrative system designated by the Company; (iii) one (1) business day after being sent by reputable commercial overnight delivery service courier, with confirmation of receipt; or (iv) three (3) business days after being mailed by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below:
		

		
			 
		

		
			(a)        If to the Company at the address below:
		

		
			 
		

		
			Tradeweb Markets Inc.
1177 Avenue of the Americas
		

		
			New York, New York 10036
Attention: Douglas Friedman, General Counsel
Email: Douglas.Friedman@tradeweb.com
		

		
			 
		

		
			(b)        If to the Grantee, at the most recent address or email contained in the Company’s records.
		

		
			 
		

		
			13.       Award Agreement Subject to Plan and Applicable Law
		

		
			 
		

		
			(a)       This Award Agreement is made pursuant to the Plan and shall be interpreted to comply therewith. Any provision of this Award Agreement inconsistent with the Plan shall be considered void and replaced with the applicable provision of the Plan. The Plan shall control in the event there shall be any conflict between the Plan, the Notice, and this Award Agreement, and it shall control as to any matters not contained in this Award Agreement. The Committee shall have authority to construe this Award Agreement, and to correct any defect or supply any omission or reconcile any inconsistency in this Award Agreement, and to prescribe rules and regulations relating to the administration of this Award.
		

		
			 
		

		
			(b)       For the avoidance of doubt, with respect to any Grantee resident outside of the U.S., if the application of the vesting provisions as set forth in Section 3 hereof are invalid or impracticable under applicable local law, the terms of Section 3 hereof shall either be amended or be deemed not to apply to such Grantee, as determined in the sole discretion of the Committee. All determinations made and actions taken with respect to this Section 13(b) shall be made in the sole discretion of the Committee.
		

		
			 
		

		
			(c)       This Award Agreement shall be governed by the laws of the State of Delaware, without regard to the conflicts of law principles thereof, and subject to the exclusive jurisdiction of the courts therein. The Grantee hereby consents to personal jurisdiction in any action brought in any court, federal or state, within the State of Delaware having subject matter jurisdiction in the matter.
		

		
			 
		

		
			
		

		
			

		 

		

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			14.       Section 409A
		

		
			 
		

		
			The PRSUs are intended to be compliant with Section 409A of the Code and, accordingly, to the maximum extent permitted, this Award Agreement shall be interpreted in a manner consistent therewith.  Nothing contained herein shall constitute any representation or warranty by the Company regarding compliance with Section 409A of the Code.  The Company shall have no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section 409A of the Code on any Person and none of the Company, its Subsidiaries or Affiliates, nor any of their respective employees or representatives, shall have any liability to the Grantee with respect thereto.
		

		
			 
		

		
			15.       Headings and Capitalized Terms
		

		
			 
		

		
			Unless otherwise provided herein, capitalized terms used herein that are defined in the Plan and not defined herein shall have the meanings set forth in the Plan. Headings are for convenience only and are not deemed to be part of this Award Agreement. Unless otherwise indicated, any reference to a Section herein is a reference to a Section of this Award Agreement.
		

		
			 
		

		
			16.       Severability and Reformation
		

		
			 
		

		
			If any provision of this Award Agreement shall be determined by a court of law of competent jurisdiction to be unenforceable for any reason, such unenforceability shall not affect the enforceability of any of the remaining provisions hereof. In that case, this Award Agreement, to the fullest extent lawful, shall be reformed and construed as if such unenforceable provision, or part thereof, had never been contained herein, and such provision or part thereof shall be reformed or construed so that it would be enforceable to the maximum extent legally possible.
		

		
			 
		

		
			17.       Binding Effect
		

		
			 
		

		
			This Award Agreement shall be binding upon the parties hereto, together with their personal executors, administrator, successors, personal representatives, heirs and permitted assigns.
		

		
			 
		

		
			18.       Entire Agreement
		

		
			 
		

		
			This Award Agreement, together with the Plan, supersedes all prior written and oral agreements and understandings among the parties as to its subject matter and constitutes the entire agreement of the parties with respect to the subject matter hereof.  If there is any conflict between the Notice, this Award Agreement and the Plan, then the applicable terms of the Plan shall govern.
		

		
			 
		

		
			19.       Waiver
		

		
			 
		

		
			Waiver by any party of any breach of this Award Agreement or failure to exercise any right hereunder shall not be deemed to be a waiver of any other breach or right whether or not of the same or a similar nature. The failure of any party to take action by reason of such breach or to
		

		
			
		

		
			

		 

		

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			exercise any such right shall not deprive the party of the right to take action at any time while or after such breach or condition giving rise to such rights continues.
		

		 

		

			7Exhibit 101

		
			JONES SODA CO.
		

		
			SEPARATION AND CONSULTING AGREEMENT
		

		
			This Separation and Consulting Agreement is made and entered into as of April 6, 2020 (“Effective Date”) between JONES SODA CO., a Washington corporation (“Company”), and Jennifer Cue, CEO of Company, who will become a consultant for the Company (“Consultant”).  In consideration of the mutual promises contained in this Agreement, the parties agree as follows:
		

		
			﻿
		

		
			 
		

			
	
			
				 1.
			SEPARATION; SERVICES; COMPENSATION AND RELEASE

			
	
			
				 1.1
			Separation.  Consultant’s employment as an employee of the Company shall terminate effective April 6, 2020 (the “Termination Date”). 

			
	
			
				 1.2
			Services. Subject to the terms and conditions of this Agreement and at Company’s request and direction, Consultant will perform for Company the services (“Services”) described in Exhibit A and will report to the Company contact described in Exhibit A.

		
			1.3Company Board of Directors.  Neither the termination of Consultant’s employment with Company nor this Agreement shall affect Consultant’s status as a director on Company’s Board of Directors; provided, that Consultant acknowledges and agrees that she shall not be eligible to receive any fees for service on Company’s Board of Directors during the Term of this Agreement. Consultant’s resignation as a director on Company’s Board of Directors will not have any effect or impact on this Agreement which will continue in full force and effect. 
		

			
	
			
				 1.1
			Compensation.  As consideration for Consultant’s proper performance of the Services, Company will pay Consultant the compensation set forth in Exhibit A. 

		
			1.5  Payment of Attorney’s Fees. As consideration for Consultant entering into this Agreement, Company agrees to pay the attorney’s fees Consultant incurs in the drafting, negotiating and finalizing of this Agreement, up to a maximum of $7,500.00. On or before April 24,  2020, Company agrees to provide to the law firm of Frank Freed Subit & Thomas LLP the sum of $7,500.00 as and for attorney’s fees. This $7,500.00 will be paid to Frank Freed Subit & Thomas LLP through an ACH payment or by wiring the funds. 
		

		
			Release.  
		

			
	
			
				 (a)
			Nonadmission of Liability.  This Agreement shall not be construed as an admission by Company that it acted wrongfully with respect to Consultant during her term as an employee of the Company.  Additionally, this Agreement shall not be construed as an admission by Consultant of any misconduct during her term as an employee of the Company.

			
	
			
				 (b)
			Release of Claims:  In exchange for the consideration and other benefits contained in this Agreement, which Consultant is not otherwise entitled to receive, Consultant and Consultant’s successors and assigns forever release and discharge Company, any of Company's subsidiaries or related or affiliated companies, and all of their respective officers, directors, shareholders, agents, employees, and all of their respective successors and assigns (collectively “Releasees”) from any and all claims, actions, causes of action, rights, or damages related in any way to Consultant’s employment by Company as an employee or the termination of such employment, including costs and attorneys' fees (collectively “Claims”) whether known, unknown, or later discovered, arising from any acts or omissions that occurred prior to the date Consultant signs this Agreement.

		
			This release includes but is not limited to:  (i) any Claims under any local, state, or federal laws regulating employment, including without limitation, the Age Discrimination in Employment Act, the Civil Rights Acts, the Americans with Disabilities Act, and the Washington Law Against Discrimination (RCW 49.60 et seq.); (ii) Claims under the Employee Retirement Income Security Act; (iii) Claims under any local, state, or federal wage and hour laws; (iv) Claims alleging any legal restriction on Company’s right to terminate its employees; (v) Claims under express or implied contracts; or (vi) Claims alleging personal injury, including without limitation defamation, tortious interference with business expectancy, black listing, or infliction of emotional distress.
		

			
	
			
				 (c)
			No Claims:  Consultant represents that she has not filed any Claim with any court or agency against Company or Releasees concerning Claims released in this Agreement; provided, however, that this will not limit Consultant from filing an action to enforce the terms of this Agreement.  Consultant further represents that she has not transferred or assigned, or purported to assign, to any person or entity any claim, or any portion thereof or interest therein, related in any way to Company, its officers, employees, or agents (including, without limitation, any Claims). Consultant waives any right she may have to recover any damages or any other relief in any claim or suit brought by the Equal Employment Opportunity Commission or anyone else.

			
	
			
				 (d)
			Consideration Period.  Consultant acknowledges that she was advised that she has the right to have an attorney review this Agreement before signing it and that she has been given 21 calendar days in which to consider this Agreement and was given the option to sign the Agreement in fewer than 21 calendar days if she desired. 

			
	
			
				 (e)
			Revocation Period.    Consultant understands that this Agreement will not be effective for 7 calendar days after it is signed by Company and Consultant, and that she can revoke this Agreement at any time during that 7 calendar-day period.  Company shall make no payments under this Agreement prior to expiration of this 7 calendar-day period.

			
	
			
				 (f)
			Voluntary Agreement.  Consultant understands and acknowledges the significance and consequences of this Agreement, that it is voluntary, that it has not been given as a result of any coercion or duress, and expressly confirms that it is to be given full force and effect according to all of its terms, including those relating to unknown Claims.  Consultant acknowledges that Company advised Consultant to consult with legal counsel regarding any and all aspects of this Agreement, and that she has availed herself of that opportunity to the extent desired.  Consultant acknowledges that Consultant has carefully read and fully understands all of the provisions of this Agreement and has signed this Agreement only after full reflection and analysis.

			
	
			
				 2.
			TERM AND TERMINATION

			
	
			
				 2.1
			Term.  This term of this Agreement (the “Term”) shall commence on the Effective Date and will continue until the earlier of  April 6, 2021 or  termination as provided below.

			
	
			
				 2.2
			Termination.  Company may terminate this Agreement immediately and without prior notice for “Cause.”  For the avoidance of doubt, any termination by Company of the Services shall not be deemed to in any way terminate the release provided by Consultant hereunder, which shall remain in full effect in accordance with its terms.  For purposes of this Agreement, “Cause” shall mean: 

			
	
			
				 (a)
			Conviction of any or plea of guilty or nolo contendere to a crime that constitutes a felony or of a misdemeanor;

			
	
			
				 (b)
			Breach of Company’s Code of Ethics, Code of Conduct, Insider Trading Policy or Regulation FD Policy, or any other policy adopted by Company applicable to Consultant, as now in effect or as modified in the future;

			
	
			
				 (c)
			Breach and failure to cure within thirty (30) days of written notice by Company of any agreement between Consultant and Company (including, without limitation, this Agreement);

			
	
			
				 (d)
			Theft or embezzlement from Company; or

			
	
			
				 (e)
			Any attempt to obstruct or failure to cooperate with any investigation authorized by Company or any governmental or self-regulatory entity.

		 

		

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				 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 Consultant for Services through the date of termination; and

			
	
			
				 (b)
			Sections1.4, 2,  3,  4,  5,  6,  7,  8,  9  and 10 survive termination of this Agreement.

			
	
			
				 (c)
			This Agreement shall survive the filing for bankruptcy by the Company, a reverse merger of the Company,  ,a merger or consolidation of the Company with or into any other Company,  an acquisition by an entity of the Company or its successor, a change in the interim CEO of the Company or the appointment of a new CEO of the Company, a change in the current Chairman of the Board of the Company or the election of a new Chairman of the Board of the Company.

			
	
			
				 2.4
			Return of Materials.  Upon the termination of this Agreement, or upon Company’s earlier request, Consultant will deliver to Company all of Company’s property and Confidential Information (as defined in Section 3.1) that is in Consultant’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 Consultant 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 Consultant,   became publicly known and made generally available, after disclosure to Consultant by Company, through no wrongful action or inaction of Consultant or others who were under confidentiality obligations, or  was in Consultant’s possession, without confidentiality restrictions, at the time of disclosure by Company, as shown by Consultant’s files and records.

			
	
			
				 3.3
			Nondisclosure and Nonuse.  Consultant 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.  Consultant will take all reasonable precautions to prevent any unauthorized disclosure of the Confidential Information.

			
	
			
				 3.4
			Former Client Confidential Information.  Consultant will not improperly use or disclose any proprietary information or trade secrets of any former or concurrent client of Consultant prior to her employment as an employee of Company or other person or entity.  Furthermore, Consultant 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.  Consultant 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.  Consultant is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Consultant 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.    Consultant is further hereby notified that if Consultant files a lawsuit for retaliation by an employer for reporting a suspected violation of law, Consultant may disclose the employer's trade secrets to Consultant’s attorney and use the trade secret information in the court proceeding if Consultant: (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 Consultant 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, Consultant 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.  Consultant 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.  Consultant will disclose to Company all pertinent information and data with respect to Inventions and related intellectual property rights.  Consultant will execute all applications, specifications, oaths, assignments, and other instruments that Company deems necessary 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.  Consultant’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, Consultant incorporates into any Invention any other work of authorship, invention, improvement, or proprietary information, or other materials owned by Consultant or in which Consultant has an interest, Consultant 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 Consultant’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 Consultant irrevocably designates and appoints Company as Consultant’s agent and attorney in fact.  Accordingly, Company may act for and in Consultant’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 Consultant.

			
	
			
				 5.
			CONSULTANT’S WARRANTIES

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

			
	
			
				 5.1
			Enforceability.  This Agreement constitutes a valid and binding obligation of Consultant that is enforceable in accordance with its terms.

			
	
			
				 5.2
			Compliance with Applicable Law and Company Policies.  Consultant 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.

		 

		

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				 5.3
			No Conflict.  The entering into and performance of this Agreement by Consultant 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 Consultant is a party or by which it or any of Consultant’s property is or may become subject or bound, or  violate any applicable law or government regulation.  Consultant 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.  Consultant has and will have all requisite ownership, rights, and licenses to fully perform her 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, Consultant’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.  Consultant will not, without Company’s prior written consent, incorporate any pre‐existing works or third-party materials into the Inventions.  Additionally, Consultant 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 Consultant 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.  Consultant 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 Consultant 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 Consultant 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, Consultant 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.  

			
	
			
				 5.11
			No Representations.  Consultant warrants that, except as expressly set forth herein, no representations of any kind or character have been made to Consultant by Company or by any of its agents, representatives, or attorneys to induce the execution of this Agreement.

			
	
			
				 6.
			INDEMNIFICATION

			
	
			
				 6.1
			Indemnification.  Consultant 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 Consultant or Consultant’s employees, or agents,  any breach by Consultant or Consultant’s employees, or agents of any of the covenants, warranties, or representations contained in this Agreement,  any failure of Consultant 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 Consultant 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, Consultant will, in addition to her obligations under Section 6.1, take one of the following actions at her 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-DISPARAGEMENT

			
	
			
				 7.1
			Non‐Solicitation.  During the term of this Agreement, Consultant will not directly or indirectly, for herself 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-Disparagement.    Consultant agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Company agrees that all directors and management-level employees shall refrain from any disparagement, defamation, libel or slander of Consultant, and agrees to refrain from any tortious interference with the contracts and relationships of Consultant.  This paragraph shall not in any way prohibit either party from making truthful statements in a legal or administrative proceeding, or as otherwise required by law or legal process.

			
	
			
				 7.3
			Severability.  The covenants contained in Section 7 will be construed as a series of separate covenants.  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.  

			
	
			
				 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 Consultant 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 Consultant’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 
		

		 

		

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			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 Consultant.  It is the express intention of the parties that Consultant perform the Services as an independent contractor.  Nothing in this Agreement will in any way be construed to constitute Consultant as an agent, employee, or representative of Company.  Without limiting the generality of the foregoing, Consultant is not authorized to bind Company to any liability or obligation or to represent that Consultant has any authority.  Consultant 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.  Consultant is obligated to report as income all compensation received by Consultant under this Agreement, and to pay all self‐employment and other taxes thereon.  Consultant 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 Consultant is not an independent contractor.

			
	
			
				 9.2
			Benefits.  Except as expressly provided in Exhibit A,  Consultant acknowledges that Consultant 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 Consultant is reclassified by a state or federal agency or court as an employee of Company, Consultant will become a reclassified employee and will receive no benefits except those expressly provided in Exhibit A or mandated by state or federal law, even if by the terms of Company's benefit plans in effect at the time of the reclassification Consultant would otherwise be eligible for benefits.

			
	
			
				 10.
			MISCELLANEOUS

			
	
			
				 10.1
			Nonassignment and No Subcontractors.  Neither this Agreement nor any rights under this Agreement may be assigned or otherwise transferred by Consultant, in whole or in part, whether voluntarily or by operation of law, without the prior written consent of Company.  Consultant may not utilize a subcontractor or other third party to perform her 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.

			
	
			
				 10.2
			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 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.

			
	
			
				 10.3
			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.

			
	
			
				 10.4
			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.

			
	
			
				 10.5
			Confidentiality of Agreement.  Consultant will not disclose any terms of this Agreement to any third party without the consent of Company, except as required by applicable laws.

			
	
			
				 10.6
			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.

			
	
			
				 10.7
			Governing Law.  The internal laws of Washington, but not the choice of law rules, govern this Agreement.

			
	
			
				 10.8
			Headings.  Headings are used in this Agreement for reference only and will not be considered when interpreting this Agreement.

			
	
			
				 10.9
			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.

					
					
						PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

					
						“Consultant”

					
						Jennifer Cue

				
	
					
						Name: Jeff Anderson

					
					
						Name: Jennifer Cue

				
	
					
						Title: Board Member and Audit Committee Chair

					
					
						Signature: /s/ Jennifer Cue                  

				
	
					
						Signature: /s/ Jeff Anderson                  

					
					
						 

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

					
					
						 

				
	
					
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		EXHIBIT A
		

		
			Services and Compensation
		

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

		
			Name: Jamie Colburn
		

		
			Title:  Interim CEO
		

		
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			Name: Michael M. Fleming
		

		
			Title:  Chairman of the Board
		

		
			﻿
		

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

		
			Consultant shall assist Company with the transition of Consultant’s former duties to Company’s interim and successor chief executive officer.  Consultant and Company shall mutually agree on the press release and all internal and external communication with respect to her departure as CEO of Company. Consultant shall be available on an as-needed basis to answer questions, meet with vendors and customers, provide advisory services regarding Company’s products and its industry,  and consult regarding sales and marketing plans and other strategic matters, in each case as directed by Company’s CEO and/or Chairman of the Board.
		

			
	
			
				 3.
			Compensation

		
			3.1During the Term, Consultant will be paid a consulting fee equal to $13,750 per month on the first (1st) day of each month, commencing on May 1, 2020.  The $13,750.00 monthly consulting fee will be paid each month by direct deposit or by ACH into Consultant’s bank account. If the $13,750.00 consulting fee is not paid by the fifth (5th) day of each month, then consultant will be entitled to receive from Company a $25.00 per day late fee for each day beyond the fifth (5th) day of each month that the consulting fee is not paid.
		

		
			3.2PTO Pay:  Any accrued Paid Time Off remaining as of the Termination Date will be paid on April  24,  2020, less applicable taxes and withholdings. Any and all accrued PTO pay will be paid by direct deposit or will be paid by ACH into Consultant’s bank account.
		

		
			3.3Bonus:  Consultant will not be entitled to receive any bonus for 2020 or 2021.
		

		
			3.4Post-Termination COBRA Continuation:  Effective May 1, 2020, Consultant and/or Consultant’s covered spouse and dependents may elect a temporary extension of medical, dental and vision plan coverage at group rates (called “COBRA continuation coverage”).  Consultant must pay all applicable premiums for any such COBRA continuation coverage.  Company will provide Consultant with a separate notice summarizing the COBRA continuation coverage rights and obligations, as well as an election form. So long as Consultant continues to elect COBRA continuation coverage,  Company will subsidize Consultant’s monthly COBRA cost to the same extent Company subsidizes other employees of Company with similar benefit elections provided that Company’s subsidization shall cease effective March 31, 2021. 
		

		
			3.6Expenses.  Company will reimburse Consultant for all reasonable expenses incurred by Consultant in performing Services pursuant to this Agreement, if Consultant receives written consent from an authorized agent of Company prior to incurring the expenses and submits receipts for the expenses to Company in accordance with Company policy.
		

		
			3.7Unemployment Compensation.  If Consultant files for unemployment compensation benefits, Company will not contest Consultant’s eligibility therefor.
		

		
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