On December 31, 2015, Jones Soda Co. entered into a third amendment to its existing revolving secured credit facility with CapitalSource Business Finance Group, a dba of BFI Business Finance. The Amendment is effective as of December 18, 2015.

The Amendment provides for the following changes to the Loan Facility: Increase the maximum amount under the Loan Facility to $3,000,000 (from $2,000,000). As amended, the company may borrow up to the lesser of $3,000,000 or the borrowing base, subject to the terms of the Loan Facility. Reduce the interest rate on advances under the Loan Facility, by eliminating the floor interest rate (e.g., reducing the deemed prime rate from 4.0% to 0.0%).

As amended, advances under the Loan Facility bear interest at the prime rate plus 2.00% per annum, with no minimum rate. The amendment provides for the following additional changes to the Loan Facility, to become effective on or before May 31, 2016, conditioned upon payment in full of the Note. Increase the maximum amount under the Loan Facility to $3,175,000 (from $3,000,000).

As amended, the Company will be able to borrow up to the lesser of $3,175,000 or the Borrowing Base (as defined in the Loan Facility), subject to the terms of the Loan Facility. Increase the Borrowing Base as follows: increase the domestic account receivable borrowing base to a maximum of $3,175,000 (from $3,000,000); increase the inventory borrowing base to a maximum of $475,000 (from $300,000); no change to the Canadian domestic account receivable borrowing base. Reduce the interest rate on advances under the Loan Facility, to the prime rate plus 1.00% per annum (decrease from 2.00%), with no minimum rate.