Document:

EdgarFiling

Exhibit 10.5

 

 

 

STANDSTILL AGREEMENT

(SOL Global Investments)

 

This Standstill Agreement (this “Agreement”),
dated as of July 11, 2019, is entered into by and between Jones Soda Co., a Washington corporation (the “Company”),
and SOL Global Investments Corp., an Ontario corporation (“Investor”).

 

RECITALS

 

WHEREAS, Investor currently owns approximately
4,066,048 shares of Common Stock of the Company (“Common Stock”), representing approximately 6.7% ownership
interest in the Company;

 

WHEREAS, Investor is a minority shareholder
of Heavenly RX Ltd., a British Columbia corporation (“Heavenly”), and Heavenly and the Company intend to enter
into certain transactions, of which Investor shall be an indirect beneficiary as result of its minority ownership of Heavenly;
and

 

WHEREAS, as an inducement to the Company
to enter into the transactions with Heavenly, Investor desires to enter into this Agreement with the Company.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Agreement, intending to be legally
bound, hereby agree as follows:

 

1.                 
Definitions. For purposes of this Agreement:

 

1.1             
“Agreement” has the meaning set forth in the Preamble.

 

1.2             
“Affiliate” means, with respect to any Person, any other Person that is directly or indirectly controlled
by such Person, where “control” and derivative terms mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract,
or otherwise. For the sake of clarity, Heavenly shall not be deemed to be an Affiliate of Investor for purposes of this Agreement.

 

1.3             
“Board” means the board of directors of the Company.

 

1.4             
“Common Stock” has the meaning set forth in the Recitals.

 

1.5             
“Company” has the meaning set forth in the Preamble.

 

1.6             
“Exchange Act” has the meaning set forth in Section 2.2.

 

1.7             
“Heavenly” has the meaning set forth in the Recitals.

 

1.8             
“Investor” has the meaning set forth in the Preamble.

 

1.9             
“Investor Group” means Investor and its Affiliates.

 

     

     

    

1.10         
“Person” means any individual, corporation, limited or general partnership, limited liability company,
limited liability partnership, trust, association, joint venture, governmental entity, or other entity.

 

1.11         
“Representative” means, as to any Person, such Person’s Affiliates, and its and their respective
directors, officers, employees, managing members, general partners, agents and consultants (including attorneys, financial advisors
and accountants), solely in their capacity as representatives acting on the direction of and on behalf of such Person.

 

2.                 
Investor Group Covenants. Unless approved in advance in writing by the Board (acting by a simple majority not including
any director that is an interested party as determined by the Board in good faith with the advice of legal counsel, which may include
any designees of Heavenly), each of whom shall abstain from any vote on the matter), no member of the Investor Group, nor any of
their respective Representatives in their capacities as such, will (and Investor will cause each member of the Investor Group and
their respective Representatives acting in such capacity not to), directly or indirectly, acting on behalf of themselves or in
concert with the Company (or any of its Representatives in their capacities as such):

 

2.1             
acquire (or propose or agree to acquire), of record or beneficially, on the open market or otherwise, by purchase or otherwise,
any loans, debt securities, equity securities, or assets of the Company or any of its subsidiaries, or rights or options to acquire
interests in any of the Company’s loans, debt securities, equity securities, or assets, except as provided in Section
3 below;

 

2.2             
make any statement or proposal to the Board or to any of the Company’s shareholders regarding, or make any public
announcement, proposal, or offer (including any “solicitation” of “proxies” as such terms are defined or
used in Regulation 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) with respect
to, or otherwise solicit, seek or offer to effect (including, for the avoidance of doubt, indirectly by means of communication
with the press or media): (a) any business combination, merger, tender offer, exchange offer, or similar transaction involving
the Company or any of its subsidiaries; (b) any restructuring, recapitalization, liquidation, or similar transaction involving
the Company or any of its subsidiaries; (c) any acquisition of any of the Company’s loans, debt securities, equity securities
or assets, or rights or options to acquire interests in any of the Company’s loans, debt securities, equity securities, or
assets; (d) any proposal to seek representation on the Board or otherwise seek to control or influence the management, Board, or
policies of the Company; (e) make any request or proposal to waive, terminate, or amend the provisions of this Section 2;
or (f) make any proposal, arrangement, or other statement that is inconsistent with the terms of this Section 2; provided,
however, none of the foregoing shall limit or prevent any such Representative from serving as a member of the Board if appointed
or elected, including participation and consideration of matters properly brought before the Board;

 

2.3             
instigate, encourage, or assist any third party (including forming a “group” (as defined in Rule 13d-5(b)(1)
of the Exchange Act) with any such third party) to do, or enter into any discussions or agreements with any third party with respect
to, any of the actions set forth in Section 2.2 above; or

 

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2.4             
take any action that would reasonably be expected to require the Company or any of its Affiliates to make a public announcement
regarding any of the actions set forth in Section 2.2 above.

 

3.                 
Exceptions to Investor Group Covenants. Notwithstanding anything to the contrary in this Agreement:

 

3.1             
Investor shall be permitted (as an exception to the restrictions in Section 2) to acquire in the open market, from
time to time and in the aggregate, up to such additional number of shares of Common Stock such that Investor’s aggregate
ownership of Common Stock equals (but does not exceed) 9.99% of the Company’s outstanding Common Stock as of such time (on
an outstanding basis and not on a fully diluted basis); and

 

3.2             
Investor shall be permitted (as an exception to the restrictions in Section 2) to exercise all of its rights set
forth in any written agreement it may enter into with the Company from time to time, if any, in full and without restriction.

 

4.                 
Investor Group Acknowledgement. Investor acknowledges and agrees that the Company has not approved the Investor or
any member of the Investor Group becoming an “acquiring person” as defined in RCW 23B.19.020(1) for purposes of RCW
23B.19.040(1)(a)(ii) or otherwise, and any approval given by the Company in connection therewith shall only apply to Heavenly and
not to Investor nor to any Affiliates of Heavenly or Investor.

 

5.                 
Termination. This Agreement, including the restrictions set forth in Section 2, shall terminate and
be of no further force and effect on the earlier to occur of (i) the two-year anniversary of the date of this Agreement and (ii)
the date on which the Warrant issued to Heavenly by the Company on the date hereof, which provides Heavenly with the right to
purchase up to 15,000,000 shares of Common Stock, is exercised in full by Heavenly in accordance with its terms. Upon termination,
the Investor Group and their Representatives may acquire in the open market or otherwise additional shares of Common Stock or
other securities of the Company in compliance with applicable state and federal laws.

 

6.                 
Miscellaneous.

 

6.1             
Successors and Assigns. The terms and conditions of this Agreement inure to the benefit of and are binding upon the
respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations
or liabilities under or by reason of this Agreement, except as expressly provided herein.

 

6.2             
Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all
of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

 

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6.3             
Titles and Subtitles. The titles and subtitles used in this Agreement are for convenience only and are not to be
considered in construing or interpreting this Agreement.

 

6.4             
Notices. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement
shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b)
when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by
facsimile or e-mail of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient,
and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed,
by certified or registered mail, return receipt requested, postage prepaid. Any communication to the Investor or the Company shall
be sent in accordance with the contact information set forth below (or at such other contact information as specified in a notice
given in accordance with this Section 6.4).

 

If to the Company:              Jones Soda Co.

66 S Hanford St., Suite 150

Seattle, WA 98134

Facsimile: (206) 624-6857

E-mail:       
finance@jonessoda.com

Attention: Chief Executive Officer

 

with a copy (which shall not constitute notice)
to:

 

Summit Law Group, PLLC

315 Fifth Avenue S., Suite 1000

Seattle, WA 98104

Facsimile: (206) 676-7001

E-mail: andys@summitlaw.com and laurab@summitlaw.com

Attention: Andy Shawber and Laura Bertin

 

If to Investor:                      SOL Global Investments
Corp.

Suite 301, 366 Bay Street

Toronto, ON,

Canada

M5H 4B2

Attention: Chief Executive Office and Chief
Legal Officer

 

And

 

2300 E. Las Olas Blvd, 5th Floor

Fort Lauderdale, FL, 33301

Attention: Chief
Executive Office and Chief Legal Officer

 

with a copy (which shall not constitute
notice) to:

 

Dorsey & Whitney LLP

TD Canada Trust Tower

 

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Brookfield Place

161 Bay Street, Suite 4310

Toronto, ON, Canada M5J 2S1

Email: Raymer.richard@dorsey.com; van.horn.jonathan@dorsey.com

Attention: Richard Raymer; Jonathan A.
Van Horn

 

6.5             
Amendments and Waivers. Any term of this Agreement may be amended, modified or terminated and the observance of any
term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively)
only with the written consent of each of the parties hereto.

 

6.6             
Severability. In case any one or more of the provisions contained in this Agreement is for any reason held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision
of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid,
legal, and enforceable to the maximum extent permitted by law.

 

6.7             
Entire Agreement. This Agreement, the Rights Agreement, the Purchase Agreement, the other documents and agreements
delivered pursuant to the Purchase Agreement constitute the sole and entire agreement of the parties to this Agreement with respect
to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements,
both written and oral, with respect to such subject matter, including the Term Sheet for Common Stock Financing of Jones Soda Co.,
dated as of June 7, 2019.

 

6.8             
Specific Performance. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the
event any of the provisions of this Agreement are not performed by the parties in accordance with their specific terms or are otherwise
breached. Accordingly, it is agreed that each party to this Agreement shall be entitled to an injunction to prevent breaches of
this Agreement, and to specific enforcement of this Agreement and its terms and provisions.

 

6.9             
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)              
This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

 

(b)              
ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF WASHINGTON IN EACH CASE LOCATED
IN THE CITY OF SEATTLE AND COUNTY OF KING, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY
SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET
FORTH IN THIS AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN
SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

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(c)              
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH
PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY
HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.9(C).

 

6.10         
Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this
Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of
such non-breaching or non-defaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default,
or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver
of any other breach or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise
afforded to any party, shall be cumulative and not alternative.

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first written above.

 

COMPANY:

 

JONES SODA CO.

 

By_/s/ Jennifer Cue____________________

Name: Jennifer Cue

Title: President and Chief Executive Officer

 

 

 

INVESTOR:

 

SOL GLOBAL INVESTMENTS CORP.

 

By _/s/_Andrew De Francesco_____________

Name: Andrew De Francesco

Title: Chairman

 

 

 

 

 

 

[Signature Page to SOL Standstill Agreement]EdgarFiling

Exhibit 10.6

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (“Agreement”),
dated as of ____________________, is by and between Jones Soda Co., a Washington corporation (the “Company”),
and _________________ (“Indemnitee”).

 

WHEREAS, Indemnitee is currently a director
and/or officer of the Company, or the Company expects Indemnitee to join the Company as a director and/or an officer;

 

WHEREAS, both the Company and Indemnitee recognize
the increased risk of litigation and other claims being asserted against directors and officers of public companies;

 

WHEREAS, the board of directors of the Company
(the “Board”) has determined that enhancing the ability of the Company to retain and attract as directors and
officers the most capable persons is in the best interests of the Company and that the Company therefore should seek to assure
such persons that indemnification and insurance coverage is available; and

 

WHEREAS, in recognition of the need to provide
Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s service, or continued
service as a director and/or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective
manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of,
among other things, any amendment to the Company’s Articles of Incorporation or Bylaws (collectively, the “Constituent
Documents”), any change in the composition of the Board or any change in control or business combination transaction
relating to the Company), the Company wishes to provide in this Agreement for the indemnification of, and the advancement of Expenses
(as defined in Section 1(e) below) to, Indemnitee as set forth in this Agreement and, to the extent insurance is maintained,
for the coverage, or continued coverage of Indemnitee under the Company’s directors’ and officers’ liability
insurance policies.

 

NOW, THEREFORE, in consideration of the foregoing
and the Indemnitee’s agreement to provide services, or continue to provide services, to the Company, the parties agree as
follows:

 

1.             
Definitions. For purposes of this Agreement, the following terms shall have the following meanings:

 

(a)           
“Beneficial Owner” has the meaning given to the term “beneficial owner” in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(b)           
“Change in Control” means the occurrence after the date of this Agreement of any of the following events:

 

(i)            
any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 30% or more of
the Company’s then outstanding Voting Securities unless the change in relative Beneficial Ownership of the Company’s
securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to
vote generally in the election of directors;

 

     

     

    

 

(ii)           
the consummation of a reorganization, merger or consolidation, unless immediately following such reorganization, merger or consolidation,
all of the Beneficial Owners of the Voting Securities of the Company immediately prior to such transaction beneficially own, directly
or indirectly, more than 50% of the combined voting power of the outstanding Voting Securities of the entity resulting from such
transaction;

 

(iii)         
during any period of two consecutive years, not including any period prior to the execution of this Agreement, individuals who
at the beginning of such period constituted the Board (including for this purpose any new directors whose election by the Board
or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or whose election or nomination for election was
previously so approved) cease for any reason to constitute at least a majority of the Board; or

 

(iv)         
the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale
or disposition by the Company of all or substantially all of the Company’s assets.

 

(c)           
“Claim” means:

 

(i)            
any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or

 

(ii)           
any inquiry, hearing or investigation that Indemnitee determines might lead to the institution of any such action, suit, proceeding
or alternative dispute resolution mechanism.

 

(d)           
“Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect
of which indemnification is sought by Indemnitee.

 

(e)           
“Expenses” means any and all expenses, including attorneys’ and experts’ fees, court costs, transcript
costs, travel expenses, duplicating, printing and binding costs, telephone charges, and all other costs and expenses incurred in
connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend,
be a witness or participate in, any Claim. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting
from any Claim, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas
bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 5 only, Expenses incurred by Indemnitee in connection
with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(f)            
“Expense Advance” means any payment of Expenses advanced to Indemnitee by the Company pursuant to Section
4 or Section 5 hereof.

 

(g)           
“Indemnifiable Event” means any event or occurrence, whether occurring before, on or after the date of this
Agreement, related to the fact that Indemnitee is or was a director, officer, employee or agent of the Company or any subsidiary
of the Company, or is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or
agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise (collectively
with the Company, “Enterprise”) or by reason of an action or inaction by Indemnitee in any such capacity (whether
or not serving in such capacity at the time any Loss is incurred for which indemnification can be provided under this Agreement).

 

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(h)           
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation
law and neither presently performs, nor in the past five years has performed, services for either: (i) the Company or Indemnitee
(other than in connection with matters concerning Indemnitee under this Agreement or of other indemnitees under similar agreements)
or (ii) any other party to the Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term “Independent Counsel” shall not include any Person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

 

(i)            
“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil,
criminal or other), ERISA excise taxes, amounts paid or payable in settlement, including any interest, assessments, any federal,
state, local or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement and all
other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on
appeal), or preparing to defend, be a witness or participate in, any Claim.

 

(j)            
“Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate,
trust, business association, organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d)
and 14(d) of the Exchange Act.

 

(k)           
“Standard of Conduct Determination” shall have the meaning ascribed to it in Section  9(b) below.

 

(l)            
“Voting Securities” means any securities of the Company that vote generally in the election of directors.

 

(m)         
“Washington Court” shall have the meaning ascribed to it in Section 9(e) below.

 

2.             
Services to the Company. Indemnitee agrees to serve or continue to serve as a director or officer of the Company for so
long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is no longer serving in such
capacity. This Agreement shall not be deemed an employment agreement between the Company (or any of its subsidiaries or Enterprise)
and Indemnitee. Indemnitee specifically acknowledges that his or her employment with or service to the Company or any of its subsidiaries
or Enterprise, as applicable, is at will and Indemnitee may be discharged at any time for any reason, with or without cause, except
as may be otherwise provided in any written employment agreement between Indemnitee and the Company (or any of its subsidiaries
or Enterprise), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director
or officer of the Company, by the Company’s Constituent Documents or Washington law. This Agreement shall continue in force
after Indemnitee has ceased to serve as a director or officer of the Company or, at the request of the Company, of any of its subsidiaries
or Enterprise, as provided in Section 12 hereof.

 

3.             
Indemnification. Subject to Section 9 and Section 10 of this Agreement, the Company shall indemnify Indemnitee,
to the fullest extent permitted by the laws of the State of Washington in effect on the date hereof, or as such laws may from time
to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Losses if Indemnitee
was or is or becomes a party to or participant in, or is threatened to be made a party to or participant in, any Claim by reason
of or arising in part out of an Indemnifiable Event, including, without limitation, Claims brought by or in the right of the Company,
Claims brought by third parties, and Claims in which Indemnitee is solely a witness.

 

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4.             
Advancement of Expenses. Indemnitee shall have the right to advancement by the Company, prior to the final disposition of
any Claim by final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably
paid or incurred by Indemnitee in connection with any Claim arising out of an Indemnifiable Event. Indemnitee’s right to
such advancement is not subject to the satisfaction of any standard of conduct. Without limiting the generality or effect of the
foregoing, within 30 days after any request by Indemnitee, the Company shall, in accordance with such request, (a) pay such Expenses
on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee
for such Expenses. In connection with any request for Expense Advances, Indemnitee shall not be required to provide any documentation
or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. In connection
with any request for Expense Advances, Indemnitee shall execute and deliver to the Company an undertaking (which shall be accepted
without reference to Indemnitee’s ability to repay the Expense Advances), in the form attached hereto as Exhibit A,
to repay any amounts paid, advanced, or reimbursed by the Company for such Expenses to the extent that it is ultimately determined,
following the final disposition of such Claim, that Indemnitee is not entitled to indemnification hereunder. Indemnitee’s
obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.

 

5.             
Indemnification for Expenses in Enforcing Rights. To the fullest extent allowable under applicable law, the Company shall
also indemnify against, and, if requested by Indemnitee, shall advance to Indemnitee subject to and in accordance with Section
4, any Expenses actually and reasonably paid or incurred by Indemnitee in connection with any action or proceeding by Indemnitee
for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or
under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Claims relating to Indemnifiable
Events, and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification or insurance recovery, as the
case may be. However, in the event that Indemnitee is ultimately determined not to be entitled to such indemnification or insurance
recovery, as the case may be, then all amounts advanced under this Section 5 shall be repaid. Indemnitee shall be required
to reimburse the Company in the event that a final judicial determination is made that such action brought by Indemnitee was frivolous
or not made in good faith.

 

6.             
Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for
a portion of any Losses in respect of a Claim related to an Indemnifiable Event but not for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

7.             
Notification and Defense of Claims.

 

(a)           
Notification of Claims. Indemnitee shall notify the Company in writing as soon as practicable of any Claim which could relate
to an Indemnifiable Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information
then available to Indemnitee) of the nature of, and the facts underlying, such Claim. The failure by Indemnitee to timely notify
the Company hereunder shall not relieve the Company from any liability hereunder unless and to the extent such failure materially
prejudices the Company. If at the time of the receipt of such notice, the Company has directors’ and officers’ liability
insurance in effect under which coverage for Claims related to Indemnifiable Events is potentially available, the Company shall
give prompt written notice to the applicable insurers in accordance with the procedures set forth in the applicable policies. The
Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, and copies of all subsequent correspondence
between the Company and such insurers regarding the Claim, in each case substantially concurrently with the delivery or receipt
thereof by the Company.

 

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(b)           
Defense of Claims. The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable
Event at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense
thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume
the defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses
subsequently directly incurred by Indemnitee in connection with Indemnitee’s defense of such Claim other than reasonable
costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own legal counsel in such
Claim, but all Expenses related to such counsel incurred after notice from the Company of its assumption of the defense shall be
at Indemnitee’s own expense; provided, however, that if (i) Indemnitee’s employment of its own legal counsel has been
authorized by the Company, (ii) Indemnitee has reasonably determined upon the advice of counsel that there may be a conflict of
interest between Indemnitee and the Company in the defense of such Claim, (iii) after a Change in Control, Indemnitee’s employment
of its own counsel has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to
assume the defense of such Claim, then Indemnitee shall be entitled to retain its own separate counsel (but not more than one law
firm plus, if applicable, local counsel in respect of any such Claim) and all Expenses related to such separate counsel shall be
borne by the Company.

 

8.             
Procedure upon Application for Indemnification. In order to obtain indemnification pursuant to this Agreement, Indemnitee
shall submit to the Company a written request therefor, including in such request such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification
following the final disposition of the Claim, provided that documentation and information need not be so provided to the extent
that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Indemnification shall be made insofar
as the Company determines Indemnitee is entitled to indemnification in accordance with Section 9 below.

 

9.             
Determination of Right to Indemnification.

 

(a)           
Mandatory Indemnification; Indemnification as a Witness.

 

(i)            
To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Claim relating to an Indemnifiable
Event or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice,
Indemnitee shall be indemnified against all Losses relating to such Claim in accordance with Section 3 to the fullest extent
allowable by law, and no Standard of Conduct Determination (as defined in Section 9(b)) shall be required.

 

(ii)           
To the extent that Indemnitee’s involvement in a Claim relating to an Indemnifiable Event is to prepare to serve and serve
as a witness, and not as a party, the Indemnitee shall be indemnified against all Losses incurred in connection therewith to the
fullest extent allowable by law and no Standard of Conduct Determination (as defined in Section 9(b)) shall be required.

 

(b)           
Standard of Conduct. To the extent that the provisions of Section 9(a) are inapplicable to a Claim related to an
Indemnifiable Event that shall have been finally disposed of, any determination of whether Indemnitee has satisfied any applicable
standard of conduct under Washington law that is a legally required condition to indemnification of Indemnitee hereunder against
Losses relating to such Claim and any determination that Expense Advances must be repaid to the Company (a “Standard of
Conduct Determination”) shall be made as follows:

 

    	5

     

    

 

(i)            
if no Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the
Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though
less than a quorum or (C) if there are no such Disinterested Directors, by Independent Counsel in a written opinion addressed to
the Board, a copy of which shall be delivered to Indemnitee; and

 

(ii)           
if a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested
Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed
to the Board, a copy of which shall be delivered to Indemnitee.

The Company shall indemnify and hold harmless Indemnitee against
and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within 30 days of such request, any
and all Expenses incurred by Indemnitee in cooperating with the person or persons making such Standard of Conduct Determination.

 

(c)           
Making the Standard of Conduct Determination. The Company shall use its reasonable best efforts to cause any Standard of
Conduct Determination required under Section 9(b) to be made as promptly as practicable. If the person or persons designated
to make the Standard of Conduct Determination under Section 9(b) shall not have made a determination within 30 days after
the later of (A) receipt by the Company of a written request from Indemnitee for indemnification pursuant to Section  8
(the date of such receipt being the “Notification Date”) and (B) the selection of an Independent Counsel, if
such determination is to be made by Independent Counsel, then Indemnitee shall be deemed to have satisfied the applicable standard
of conduct; provided that such 30-day period may be extended for a reasonable time, not to exceed an additional 30 days, if the
person or persons making such determination in good faith requires such additional time to obtain or evaluate information relating
thereto. Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification
under this Agreement shall be required to be made prior to the final disposition of any Claim.

 

(d)           
Payment of Indemnification. If, in regard to any Losses:

 

(i)            
Indemnitee shall be entitled to indemnification pursuant to Section 9(a);

 

(ii)           
no Standard Conduct Determination is legally required as a condition to indemnification of Indemnitee hereunder; or

 

(iii)         
Indemnitee has been determined or deemed pursuant to Section 9(b) or Section  9(c) to have satisfied the Standard
of Conduct Determination,

then the Company shall pay to Indemnitee, within fifteen (15) days
after the later of (A) the Notification Date or (B) the earliest date on which the applicable criterion specified in clause (i),
(ii) or (iii) is satisfied, an amount equal to such Losses.

 

    	6

     

    

 

(e)           
Selection of Independent Counsel for Standard of Conduct Determination. If a Standard of Conduct Determination is to be
made by Independent Counsel pursuant to Section 9(b)(i), the Independent Counsel shall be selected by the Board, and the
Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If
a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 9(b)(ii), the Independent Counsel
shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent
Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within five (5) days after receiving written
notice of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition
of “Independent Counsel” in Section 1(h), and the objection shall set forth with particularity the factual basis
of such assertion. Absent a proper and timely objection, the person or firm so selected shall act as Independent Counsel. If such
written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit; and (ii) the
non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising
such other party of the identity of the alternative Independent Counsel so selected, in which case the provisions of the two immediately
preceding sentences, the introductory clause of this sentence and numbered clause (i) of this sentence shall apply to such subsequent
selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive
alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 9(e)
to make the Standard of Conduct Determination shall have been selected within twenty (20) days after the Company gives its initial
notice pursuant to the first sentence of this Section 9(e) or Indemnitee gives its initial notice pursuant to the second
sentence of this Section 9(e), as the case may be, either the Company or Indemnitee may petition the King County Superior
Court of the State of Washington (“Washington Court”) to resolve any objection which shall have been made by
the Company or Indemnitee to the other’s selection of Independent Counsel and/or to appoint as Independent Counsel a person
to be selected by the Court or such other person as the Court shall designate, and the person or firm with respect to whom all
objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall
pay all of the reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel’s
determination pursuant to Section 9(b).

 

(f)            
Presumptions and Defenses.

 

(i)            
Indemnitee’s Entitlement to Indemnification. In making any Standard of Conduct Determination, the person or persons
making such determination shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification,
and the Company shall have the burden of proof to overcome that presumption and establish that Indemnitee is not so entitled. Any
Standard of Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Washington Court. No
determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable
standard of conduct may be used as a defense to any legal proceedings brought by Indemnitee to secure indemnification or reimbursement
or advance payment of Expenses by the Company hereunder or create a presumption that Indemnitee has not met any applicable standard
of conduct.

 

(ii)           
Reliance as a Safe Harbor. For purposes of this Agreement, and without creating any presumption as to a lack of good faith
if the following circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner he or she reasonably
believed to be in or not opposed to the best interests of the Company if Indemnitee’s actions or omissions to act are taken
in good faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports
or statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their
duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as to
matters Indemnitee reasonably believes are within such other Person’s professional or expert competence and who has been
selected with reasonable care by or on behalf of the Company. In addition, the knowledge and/or actions, or failures to act, of
any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right
to indemnity hereunder.

 

    	7

     

    

 

(iii)         
No Other Presumptions. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether
with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption
that Indemnitee did not meet any applicable standard of conduct or have any particular belief, or that indemnification hereunder
is otherwise not permitted.

 

(iv)         
Defense to Indemnification and Burden of Proof. It shall be a defense to any action brought by Indemnitee against the Company
to enforce this Agreement (other than an action brought to enforce a claim for Losses incurred in defending against a Claim related
to an Indemnifiable Event in advance of its final disposition) that it is not permissible under applicable law for the Company
to indemnify Indemnitee for the amount claimed. In connection with any such action or any related Standard of Conduct Determination,
the burden of proving such a defense or that the Indemnitee did not satisfy the applicable standard of conduct shall be on the
Company.

 

(v)           
Resolution of Claims. The Company acknowledges that a settlement or other disposition short of final judgment may be successful
on the merits or otherwise for purposes of Section  9(a)(i) if it permits a party to avoid expense, delay, distraction,
disruption and uncertainty. In the event that any Claim relating to an Indemnifiable Event to which Indemnitee is a party is resolved
in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim
or proceeding with our without payment of money or other consideration) it shall be presumed that Indemnitee has been successful
on the merits or otherwise for purposes of Section 9(a)(i). The Company shall have the burden of proof to overcome this
presumption.

 

10.          
Exclusions from Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated
to:

 

(a)           
indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by Indemnitee, including
any proceedings against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except:

 

(i)            
proceedings referenced in Section 5 above (unless a court of competent jurisdiction determines that each of the material
assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous); or

 

(ii)           
where the Company has joined in or the Board has consented to the initiation of such proceedings,

 

(b)           
indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited
by applicable law, including, without limitation, (i) in connection with a proceeding by or in the right of the Company in which
Indemnitee was adjudged liable to the Company; or (ii) in connection with any other proceeding charging improper personal benefit
to Indemnitee, whether or not involving action in Indemnitee’s official capacity, in which Indemnitee was adjudged liable
on the basis that personal benefit was improperly received by Indemnitee;

 

(c)           
indemnify Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company
in violation of Section 16(b) of the Exchange Act, or any similar successor statute; or

 

    	8

     

    

 

(d)           
indemnify or advance funds to Indemnitee for Indemnitee’s reimbursement to the Company of any bonus or other incentive-based
or equity-based compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of
securities of the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304
of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of
profits arising from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).

 

The Company and Indemnitee acknowledge that, in
certain instances, federal law or public policy may override applicable state law and prohibit the Company from indemnifying Indemnitee
under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the Securities and Exchange Commission
(the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under certain
federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations. Furthermore, Indemnitee
understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy
to indemnify Indemnitee.

 

11.          
Settlement of Claims. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement
of any threatened or pending Claim related to an Indemnifiable Event effected without the Company’s prior written consent,
which shall not be unreasonably withheld; provided, however, that if a Change in Control has occurred, the Company shall be liable
for indemnification of Indemnitee for amounts paid in settlement if an Independent Counsel has approved the settlement. The Company
shall not settle any Claim related to an Indemnifiable Event in any manner that would impose any Losses on Indemnitee without Indemnitee’s
prior written consent.

 

12.          
Duration. All agreements and obligations of the Company contained herein shall continue during the period that Indemnitee
is a director or officer of the Company (or is serving at the request of the Company as a director, officer, employee, member,
trustee or agent of another Enterprise) and shall continue thereafter (i) so long as Indemnitee may be subject to any possible
Claim relating to an Indemnifiable Event (including any rights of appeal thereto) and (ii) throughout the pendency of any proceeding
(including any rights of appeal thereto) commenced by Indemnitee to enforce or interpret his or her rights under this Agreement,
even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.

 

13.          
Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the
Constituent Documents, the Washington Business Corporation Act, any other contract or otherwise (collectively, “Other
Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right
to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b)
to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification than
that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder.

 

14.          
Liability Insurance. For the duration of Indemnitee’s service as a director or officer of the Company, and thereafter
for so long as Indemnitee shall be subject to any pending Claim relating to an Indemnifiable Event, the Company shall use commercially
reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to continue to
maintain in effect policies of directors’ and officers’ liability insurance providing coverage that is at least substantially
comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’
liability insurance. In all policies of directors’ and officers’ liability insurance maintained by the Company, Indemnitee
shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are provided to the most
favorably insured of the Company’s directors, if Indemnitee is a director, or of the Company’s officers, if Indemnitee
is an officer (and not a director) by such policy. Upon request, the Company will provide to Indemnitee copies of all directors’
and officers’ liability insurance applications, binders, policies, declarations, endorsements and other related materials.

 

    	9

     

    

 

15.          
No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect
of any Losses to the extent Indemnitee has otherwise received payment under any insurance policy, the Constituent Documents, Other
Indemnity Provisions or otherwise of the amounts otherwise indemnifiable by the Company hereunder.

 

16.          
Subrogation. In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee. Indemnitee shall execute all papers required and shall do everything
that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively
to bring suit to enforce such rights.

 

17.          
Amendments. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed
by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions
hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein,
no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

 

18.          
Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto
and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to
all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives.
The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise)
to all, substantially all or a substantial part of the business and/or assets of the Company, by written agreement in form and
substances satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had taken place.

 

19.          
Severability. The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including
any portion thereof) are held by a court of competent jurisdiction to be invalid, illegal, void or otherwise unenforceable, and
the remaining provisions shall remain enforceable to the fullest extent permitted by law. Upon such determination that any term
or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

20.          
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have
been duly given if delivered by hand, against receipt, or mailed, by postage prepaid, certified or registered mail:

 

(a)           
if to Indemnitee, to the address set forth on the signature page hereto.

 

(b)           
if to the Company, to:

Jones Soda Co.

66 South Hanford Street, Suite 150

Seattle, Washington 98134

Attn.: Corporate Secretary

 

    	10

     

    

 

Notice of change of address shall be effective
only when given in accordance with this Section 20. All notices complying with this Section 20 shall be
deemed to have been received on the date of hand delivery or on the third business day after mailing.

 

21.          
Governing Law and Forum. This Agreement shall be governed by and construed and enforced in accordance with the laws of the
State of Washington applicable to contracts made and to be performed in such state without giving effect to its principles of conflicts
of laws. The Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out
of or in connection with this Agreement shall be brought only in the Washington Court and not in any other state or federal court
in the United States, (b) consent to submit to the exclusive jurisdiction of the Washington Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (c) waive, and agree not to plead or make, any claim that the Washington
Court lacks venue or that any such action or proceeding brought in the Washington Court has been brought in an improper or inconvenient
forum.

 

22.          
Headings. The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

 

23.          
Entire Agreement. This Agreement, together with the Other Indemnity Provisions, constitutes the entire agreement between
the Company and Indemnitee with respect to the subject matter hereof and thereof and supersedes any prior indemnification agreement
by and between the Company and Indemnitee in its entirety.

 

24.          
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed
to be an original, but all of which together shall constitute one and the same Agreement.

 

 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

    	11

     

    

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

 

	 	 	JONES SODA CO.
	 	 	 
	 	 	By:  	 
	 	 	Name:  	 
	 	 	Title:  	 
	 	 	 	 
	 	 	INDEMNITEE: 
	 	 	 
	 	 	By: 	 
	 	 	Name:  	 
	 	 	 
	 	 	Address:   
	 	 	 
	 	 	 
	 	 	 
	 	 	Email:  	 

 

 

 

 

 

    	12

     

    

 

EXHIBIT A

 

FORM OF UNDERTAKING TO REPAY ADVANCEMENT OF EXPENSES

 

[DATE]

 

Jones Soda Co.

Attn: Chief Executive Officer

66 South Hanford Street, Suite 150

Seattle, Washington 98134

 

Re: Undertaking to Repay Advancement of Expenses.

 

To whom it may concern:

 

This undertaking is being provided pursuant
to that certain Indemnification Agreement, dated [DATE], by and between Jones Soda Co., a Washington corporation (the “Company”),
and the undersigned as Indemnitee (the “Indemnification Agreement”). Terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Indemnification Agreement. Pursuant to the Indemnification Agreement, among other
things, I am entitled to the advancement of Expenses paid or incurred in connection with Claims relating to Indemnifiable Events.

 

I have become subject to [DESCRIPTION OF PROCEEDING]
(the Proceeding) based on [my status as [an officer/[TITLE OF OFFICER]/a director] of the Company/alleged actions or failures to
act in my capacity as [an officer/[TITLE OF OFFICER]/a director] of the Company. [This undertaking also constitutes notice to the
Company of the Proceeding pursuant to Section 7 of the Indemnification Agreement.] The following is a brief description of the
[current status of the] Proceeding:

 

[DESCRIPTION OF PROCEEDING]

 

[Pursuant to Section 4 of the Indemnification
Agreement, the Company can (a) pay such Expenses on my behalf, (b) advance funds in an amount sufficient to pay such Expenses,
or (c) reimburse me for such Expenses.] [Pursuant to Section 4 of the Indemnification Agreement, I hereby request an Expense Advance
in connection with the Proceeding. The Expenses for which advances are requested are as follows:]

 

[DESCRIPTION OF EXPENSES]

 

In connection with the request for Expense Advances
[set out above/delivered to the Company separately on [DATE]], I hereby undertake to repay any amounts paid, advanced or reimbursed
by the Company for such Expense Advances to the extent that it is ultimately determined that I am not entitled to indemnification
under the Indemnification Agreement.

 

This undertaking shall be governed by and construed
in accordance with the laws of the State of Washington, without regard to the principles of conflicts of laws thereof.

 

Very truly yours,

 

 

13

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