Document:

Exhibit 10.4

     

CELSIUS HOLDINGS, INC.

 

2015 STOCK INCENTIVE PLAN

 

1.          Purposes
of the Plan. The purposes of this Plan are to attract and retain the best available personnel, to provide additional incentives
to Employees, Directors and Consultants and to promote the success of the Company’s business.

 

2.          Definitions.
The following definitions shall apply as used herein and in the individual Award Agreements except as defined otherwise in an individual
Award Agreement. In the event a term is separately defined in an individual Award Agreement, such definition shall supersede the
definition contained in this Section 2.

 

(a)          “Administrator”
means the Board or any of the Committees appointed to administer the Plan.

 

(b)          “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 promulgated
under the Exchange Act.

 

(c)          “Applicable
Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of federal securities
laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and
the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein.

 

(d)          “Assumed”
means that pursuant to a Corporate Transaction either (i) the Award is expressly affirmed by the Company or (ii) the
contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity
or its Parent in connection with the Corporate Transaction with appropriate adjustments to the number and type of securities of
the successor entity or its Parent subject to the Award and the exercise or purchase price thereof which at least preserves the
compensation element of the Award existing at the time of the Corporate Transaction as determined in accordance with the instruments
evidencing the agreement to assume the Award.

 

(e)          “Award”
means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit or other right or benefit
under the Plan.

 

(f)          “Award
Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee,
including any amendments thereto.

 

(g)          “Board”
means the Board of Directors of the Company.

 

(h)          “Cause”
means, with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous Service, that such
termination is for “Cause” as such term (or word of like import) is expressly defined in a then-effective written
agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement
and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act or
failure to perform any act in bad faith and to the detriment of the Company or a Related Entity; (ii) dishonesty, intentional
misconduct or material breach of any agreement with the Company or a Related Entity; or (iii) commission of a crime involving
dishonesty, breach of trust, or physical or emotional harm to any person; provided, however, that with regard to any agreement
that defines “Cause” on the occurrence of or in connection with a Corporate Transaction or a Change in Control,
such definition of “Cause” shall not apply until a Corporate Transaction or a Change in Control actually occurs.

 

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(i)          “Change
in Control” means a change in ownership or control of the Company after the Registration Date effected through
either of the following transactions:

 

(i)          the
direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by
a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common
control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender
or exchange offer made directly to the Company’s stockholders which a majority of the Continuing Directors who are not Affiliates
or Associates of the offeror do not recommend such stockholders accept, or

 

(ii)         a
change in the composition of the Board over a period of twelve (12) months or less such that a majority of the Board members (rounded
up to the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals
who are Continuing Directors.

 

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

 

(k)          “Committee”
means any committee composed of members of the Board appointed by the Board to administer the Plan.

 

(l)           “Common
Stock” means the common stock of the Company.

 

(m)         “Company”
means Celsius Holdings, Inc., a Nevada corporation, or any successor entity that adopts the Plan in connection with a Corporate
Transaction.

 

(n)          “Consultant”
means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity
as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or
such Related Entity.

 

(o)          “Continuing
Directors” means members of the Board who either (i) have been Board members continuously for a period of at
least twelve (12) months or (ii) have been Board members for less than twelve (12) months and were elected or nominated
for election as Board members by at least a majority of the Board members described in clause (i) who were still in office
at the time such election or nomination was approved by the Board.

 

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(p)          “Continuous
Service” means that the provision of services to the Company or a Related Entity in any capacity of Employee, Director
or Consultant is not interrupted or terminated. In jurisdictions requiring notice in advance of an effective termination as an
Employee, Director or Consultant, Continuous Service shall be deemed terminated upon the actual cessation of providing services
to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before a termination as an
Employee, Director or Consultant can be effective under Applicable Laws. A Grantee’s Continuous Service shall be deemed to
have terminated either upon an actual termination of Continuous Service or upon the entity for which the Grantee provides services
ceasing to be a Related Entity. Continuous Service shall not be considered interrupted in the case of (i) any approved leave
of absence, (ii) transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director
or Consultant, or (iii) any change in status as long as the individual remains in the service of the Company or a Related
Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). Notwithstanding
the foregoing, except as otherwise determined by the Administrator, in the event of any spin-off of a Related Entity, service as
an Employee, Director or Consultant for such Related Entity following such spin-off shall be deemed to be Continuous Service for
purposes of the Plan and any Award under the Plan. An approved leave of absence shall include sick leave, military leave, or any
other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds three
months, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option
shall be treated as a Non-Qualified Stock Option on the day three months and one day following the expiration of such three month
period.

 

(q)          “Corporate
Transaction” means any of the following transactions, provided, however, that the Administrator shall determine under
parts (iv) and (v) whether multiple transactions are related, and its determination shall be final, binding and conclusive:

 

(i)          a
merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which
is to change the state in which the Company is incorporated;

 

(ii)         the
sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

(iii)        the
complete liquidation or dissolution of the Company;

 

(iv)        any
reverse merger or series of related transactions culminating in a reverse merger (including, but not limited to, a tender offer
followed by a reverse merger) in which the Company is the surviving entity but (A) the shares of Common Stock outstanding
immediately prior to such merger are converted or exchanged by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, or (B) in which securities possessing more than forty percent (40%) of the total combined voting
power of the Company’s outstanding securities are transferred to a person or persons different from those who held such securities
immediately prior to such merger or the initial transaction culminating in such merger, but excluding any such transaction
or series of related transactions that the Administrator determines shall not be a Corporate Transaction; or

 

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(v)         acquisition
in a single or series of related transactions by any person or related group of persons (other than the Company or by a Company-sponsored
employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities but excluding any
such transaction or series of related transactions that the Administrator determines shall not be a Corporate Transaction.

 

(r)          “Covered
Employee” means an Employee who is a “covered employee” under Section 162(m) (3) of the Code.

 

(s)          “Director”
means a member of the Board or the board of directors of any Related Entity.

 

(t)          “Disability”
means as defined under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services
regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee provides
service does not have a long-term disability plan in place, “Disability” means that a Grantee is unable to carry out
the responsibilities and functions of the position held by the Grantee by reason of any medically determinable physical or mental
impairment for a period of not less than ninety (90) consecutive days. A Grantee will not be considered to have incurred a
Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion.

 

(u)          “Dividend
Equivalent Right” means a right entitling the Grantee to compensation measured by dividends paid with respect to
Common Stock.

 

(v)         “Employee”
means any person, including an Officer or Director, who is in the employ of the Company or any Related Entity, subject to the control
and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance.
The payment of a Director’s fee by the Company or a Related Entity shall not be sufficient to constitute “employment”
by the Company.

 

(w)          “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(x)          “Fair
Market Value” means, as of any date, the value of Common Stock determined as follows:

 

(i)          If
the Common Stock is listed on one or more established stock exchanges or national market systems, including without limitation
The NASDAQ Global Select Market, The NASDAQ Global Market, The NASDAQ Capital Market of The NASDAQ Stock Market LLC, the New York
Stock Exchange or the New York MKT, its Fair Market Value shall be the closing sales price for such stock (or the closing
bid, if no sales were reported) as quoted on the principal exchange or system on which the Common Stock is listed (as determined
by the Administrator) on the date of determination (or, if no closing sales price or closing bid was reported on that date, as
applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable;

 

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(ii)         If
the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities
dealer, its Fair Market Value shall be the closing sales price for such stock as quoted on such system or by such securities dealer
on the date of determination or the average of any such prices for such period as determined by the Administrator in good faith
not to exceed thirty (30) trading days prior to the date of determination, but if selling prices are not reported, the Fair Market
Value of a share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the date of
determination (or, if no such prices were reported on that date, on the last date such prices were reported) or the average thereof
for such period prior to the date of determination as established by the Administrator above, as reported in The Wall Street Journal
or such other source as the Administrator deems reliable; or

 

(iii)        In
the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof
shall be determined by the Administrator in good faith.

 

(y)          “Good
Reason” means the occurrence after a Corporate Transaction or Change in Control of any of the following events or
conditions unless consented to by the Grantee (and the Grantee shall be deemed to have consented to any such event or condition
unless the Grantee provides written notice of the Grantee’s non-acquiescence within thirty (30) days of the effective
time of such event or condition):

 

(i)          a
change in the Grantee’s responsibilities or duties that represents a material and substantial diminution in the Grantee’s
responsibilities or duties as in effect immediately preceding the consummation of a Corporate Transaction or Change in Control;

 

(ii)         a
reduction in the Grantee’s base salary to a level below that in effect at any time within six months preceding the consummation
of a Corporate Transaction or Change in Control or at any time thereafter; provided that an across-the-board reduction in
the salary level of substantially all other individuals in positions similar to the Grantee’s by substantially the same percentage
amount shall not constitute such a salary reduction; or

 

(iii)        requiring
the Grantee to be based at any place outside a 50-mile radius from the Grantee’s job location or residence prior to the Corporate
Transaction or Change in Control except for reasonably required travel on business that is not materially greater than such travel
requirements prior to the Corporate Transaction or Change in Control. 

 

(z)          “Grantee”
means an Employee, Director or Consultant who receives an Award under the Plan.

 

(aa)         “Incentive
Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422
of the Code.

 

(bb)         “Non-Qualified
Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

 

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(cc)         “Officer”
means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and
the rules and regulations promulgated thereunder.

 

(dd)         “Option”
means an option to purchase Shares pursuant to an Award Agreement granted under the Plan.

 

(ee)         “Parent”
means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

(ff)         “Performance-Based
Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m)
of the Code.

 

(gg)         “Plan”
means this 2015 Stock Incentive Plan.

 

(hh)         “Registration
Date” means the first to occur of (i) the closing of the first sale, subsequent to the date this Plan is adopted,
to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, of (A) the Common Stock or (B) the same class of securities of a successor
corporation (or its Parent) issued pursuant to a Corporate Transaction in exchange for or in substitution of the Common Stock;
(ii) the date the Common Stock is otherwise registered under and the Company becomes subject to the reporting requirements of Sections
13 or 15 (d) or the Exchange Act; and (iii) in the event of a Corporate Transaction, the date of the consummation of the Corporate
Transaction if the same class of securities of the successor corporation (or its Parent) issuable in such Corporate Transaction
shall have been sold to the general public pursuant to a registration statement filed with and declared effective by the Securities
and Exchange Commission under the Securities Act of 1933, as amended, on or prior to the date of consummation of such Corporate
Transaction.

 

(ii)           “Related
Entity” means any Parent or Subsidiary of the Company.

 

(jj)           “Replaced”
means that pursuant to a Corporate Transaction the Award is replaced with a comparable stock award or a cash incentive program
of the Company, the successor entity (if applicable) or Parent of either of them which preserves the compensation element of such
Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance with the same (or a more
favorable) vesting schedule applicable to such Award. The determination of Award comparability shall be made by the Administrator
and its determination shall be final, binding and conclusive.

 

(kk)         “Restricted
Stock” means Shares issued under the Plan to the Grantee for such consideration, if any, and subject to such restrictions
on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established
by the Administrator.

 

(ll)           “Restricted
Stock Units” means an Award that may be earned in whole or in part upon the passage of time or the attainment of
performance criteria established by the Administrator and that may be settled for cash, Shares or other securities or a combination
of cash, Shares or other securities as established by the Administrator.

 

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(mm)        “Rule 16b-3”
means Rule 16b-3 promulgated under the Exchange Act or any successor thereto.

 

(nn)         “SAR”
means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured
by appreciation in the value of Common Stock.

 

(oo)         “Share”
means a share of the Common Stock.

 

(pp)         “Subsidiary”
means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

3.          Stock
Subject to the Plan.

 

(a)          Subject
to the provisions of Section 10, below, the maximum aggregate number of Shares that may be issued pursuant to all Awards
is 5,000,000 Shares, plus an annual increase to be added on the first day of the calendar year beginning January 1, 2016, equal
to 15% of the number of Shares outstanding as of such date or a lesser number of Shares determined by the Administrator. Notwithstanding
the foregoing, subject to the provisions of Section 10, below, of the number of Shares specified above, the maximum
aggregate number of Shares available for grant of Incentive Stock Options shall be 1,000,000 Shares, plus an annual increase to
be added on the first day of the calendar year beginning January 1, 2016, equal to the least of (x) 250,000 Shares, (y) 2%
of the number of Shares outstanding as of such date, or (z) a lesser number of Shares determined by the Administrator. The
Shares to be issued pursuant to Awards may be authorized, but unissued or reacquired Common Stock.

 

(b)          Any
Shares covered by an Award (or portion of an Award) that is forfeited, canceled or expires (whether voluntarily or involuntarily)
shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares that may be issued under
the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall
not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company
at the lesser of their original purchase price or their Fair Market Value at the time of repurchase, such Shares shall become available
for future grant under the Plan

 

(c)          To
the extent not prohibited by the listing requirements of The NASDAQ Stock Market LLC (or other established stock exchange or national
market system on which the Common Stock is traded) or Applicable Law, any Shares covered by an Award that are surrendered (i) in
payment of the Award exercise or purchase price (including pursuant to the “net exercise” of an option pursuant to
Section 7(b)(v)) or (ii) in satisfaction of tax withholding obligations incident to the exercise of an Award shall be
deemed not to have been issued for purposes of determining the maximum number of Shares that may be issued pursuant to all Awards
under the Plan, unless otherwise determined by the Administrator.

 

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4.          Administration
of the Plan.

 

(a)          Plan
Administrator.

 

(i)          Administration
with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees who are also Officers
or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board,
which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions
under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such
Committee shall continue to serve in its designated capacity until otherwise directed by the Board.

 

(ii)         Administration
With Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither
Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board,
which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more Officers to grant
such Awards and may limit such authority as the Board determines from time to time.

 

(iii)        Administration
With Respect to Covered Employees. Notwithstanding the foregoing, as of and after the date that the exemption for the Plan
under Section 162(m) of the Code expires, as set forth in Section 18 below, grants of Awards to any Covered Employee
intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) that is
comprised solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based Compensation.
In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee”
shall be deemed to be references to such Committee or subcommittee.

 

(iv)        Administration
Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a),
such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable Laws.

 

(b)          Powers
of the Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion:

 

(i)          to
select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder;

 

(ii)         to
determine whether and to what extent Awards are granted hereunder;

 

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(iii)        to
determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder;

 

(iv)        to
approve forms of Award Agreements for use under the Plan;

 

(v)         to
determine the terms and conditions of any Award granted hereunder;

 

(vi)        to
amend the terms of any outstanding Award granted under the Plan, provided that

 

(A)         any
amendment that would adversely affect the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s
written consent, provided, however, that an amendment or modification that may cause an Incentive Stock Option to
become a Non-Qualified Stock Option shall not be treated as adversely affecting the rights of the Grantee;

 

(B)         the
reduction of the exercise price of any Option awarded under the Plan and the base appreciation amount of any SAR awarded under
the Plan shall be subject to stockholder approval; and

 

(C)         canceling
an Option or SAR at a time when its exercise price or base appreciation amount (as applicable) exceeds the Fair Market Value of
the underlying Shares, in exchange for another Option, SAR, Restricted Stock, or other Award or for cash shall be subject to stockholder
approval, unless the cancellation and exchange occurs in connection with a Corporate Transaction. Notwithstanding the foregoing,
canceling an Option or SAR in exchange for another Option, SAR, Restricted Stock, or other Award or for cash with an exercise price,
purchase price or base appreciation amount (as applicable) that is equal to or greater than the exercise price or base appreciation
amount (as applicable) of the original Option or SAR shall not be subject to stockholder approval;

 

(vii)       to
construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or Award Agreement,
granted pursuant to the Plan;

 

(viii)      to
grant Awards to Employees, Directors and Consultants employed outside the United States on such terms and conditions different
from those specified in the Plan as may, in the judgment of the Administrator, be necessary or desirable to further the purpose
of the Plan; and

 

(ix)         to
take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

 

The express grant in
the Plan of any specific power to the Administrator shall not be construed as limiting any power or authority of the Administrator;
provided that the Administrator may not exercise any right or power reserved to the Board. Any decision made, or action taken,
by the Administrator or in connection with the administration of this Plan shall be final, conclusive and binding on all persons
having an interest in the Plan.

 

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(c)          Indemnification.
In addition to such other rights of indemnification as they may have as members of the Board or as Officers or Employees of the
Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom authority
to act for the Board, the Administrator or the Company is delegated shall be defended and indemnified by the Company to the extent
permitted by law on an after-tax basis against all reasonable expenses, including attorneys’ fees, actually and necessarily
incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with
the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement
is approved by the Company) or paid by them in satisfaction of a judgment in any such claim, investigation, action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such
person is liable for gross negligence, bad faith or intentional misconduct; provided, however, that within 30 days after the
institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity
at the Company’s expense to defend the same.

 

5.          Eligibility.
Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. Incentive Stock Options may be
granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant, who has
been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees, Directors
or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine from time to time.

 

6.          Terms
and Conditions of Awards.

 

(a)          Types
of Awards. The Administrator is authorized under the Plan to award any type of arrangement to an Employee, Director or
Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance
of (i) Shares, (ii) cash, (iii) an Option, (iv) a SAR, or (v) a similar right with a fixed or variable price related
to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence
of one or more events, or the satisfaction of performance criteria or other conditions. Such awards include, without limitation,
Options, SARs, sales or bonuses of Restricted Stock, Restricted Stock Units or Dividend Equivalent Rights, and an Award may consist
of one such security or benefit, or two or more of them in any combination or alternative.

 

(b)          Designation
of Award. Each Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated
as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, an Option will
qualify as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code
is not exceeded. The $100,000 limitation of Section 422(d) of the Code is calculated based on the aggregate Fair Market Value
of the Shares subject to Options designated as Incentive Stock Options that become exercisable for the first time by a Grantee
during any calendar year (under all plans of the Company or any Parent or Subsidiary of the Company). For purposes of this calculation,
Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares
shall be determined as of the grant date of the relevant Option. In the event that the Code or the regulations promulgated thereunder
are amended after the date the Plan becomes effective to provide for a different limit on the Fair Market Value of Shares permitted
to be subject to Incentive Stock Options, then such different limit will be automatically incorporated herein and will apply to
any Options granted after the effective date of such amendment.

 

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(c)          Conditions
of Award. Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of
each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture
provisions, form of payment (cash, Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction
of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or combination
of, the following: (i) increase in share price, (ii) earnings per share, (iii) total stockholder return, (iv) operating margin,
(v) gross margin, (vi) return on equity, (vii) return on assets, (viii) return on investment, (ix) operating income,
(x) net operating income, (xi) pre-tax profit, (xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest,
taxes and depreciation, (xvi) economic value added and (xvii) market share. The performance criteria may be applicable
to the Company, Related Entities and/or any individual business units of the Company or any Related Entity. Partial achievement
of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award
Agreement. In addition, the performance criteria shall be calculated in accordance with generally accepted accounting principles,
but excluding the effect (whether positive or negative) of any change in accounting standards and any extraordinary, unusual or
nonrecurring item, as determined by the Administrator, occurring after the establishment of the performance criteria applicable
to the Award intended to be performance-based compensation. Each such adjustment, if any, shall be made solely for the purpose
of providing a consistent basis from period to period for the calculation of performance criteria in order to prevent the dilution
or enlargement of the Grantee’s rights with respect to an Award intended to be performance-based compensation.

 

(d)          Acquisitions
and Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for,
outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity,
an interest in another entity or an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or
other form of transaction.

 

(e)          Deferral
of Award Payment. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator
may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or
other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures
that the Administrator deems advisable for the administration of any such deferral program.

 

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(f)          Separate
Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular
forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to
time. 

 

(g)          Individual
Limitations on Awards.

 

(i)          Individual
Limit for Options and SARs.  Following the date that the exemption from application of Section 162(m) of the
Code described in Section 18 (or any exemption having similar effect) ceases to apply to Awards, the maximum number
of Shares with respect to which Options and SARs may be granted to any Grantee in any calendar year shall be 100,000 Shares. In
connection with a Grantee’s commencement of Continuous Service, a Grantee may be granted Options and SARs for up to an additional
150,000 Shares that shall not count against the limit set forth in the previous sentence. The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company’s capitalization pursuant to Section 10, below.
To the extent required by Section 162(m) of the Code or the regulations thereunder, in applying the foregoing limitations
with respect to a Grantee, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum
number of Shares with respect to which Options and SARs may be granted to the Grantee. For this purpose, the repricing of an Option
(or in the case of a SAR, the base amount on which the stock appreciation is calculated is reduced to reflect a reduction in the
Fair Market Value of the Common Stock) shall be treated as the cancellation of the existing Option or SAR and the grant of a new
Option or SAR.

 

(ii)         Individual
Limit for Restricted Stock and Restricted Stock Units. Following the date that the exemption from application of Section 162(m)
of the Code described in Section 18 (or any exemption having similar effect) ceases to apply to Awards, for awards
of Restricted Stock and Restricted Stock Units that are intended to be Performance-Based Compensation, the maximum number of Shares
with respect to which such Awards may be granted to any Grantee in any calendar year shall be 250,000 Shares. The foregoing limitation
shall be adjusted proportionately in connection with any change in the Company’s capitalization pursuant to Section 10.

 

(h)          Deferral.
If the vesting or receipt of Shares under an Award is deferred to a later date, any amount (whether denominated in Shares or cash)
paid in addition to the original number of Shares subject to such Award will not be treated as an increase in the number of Shares
subject to the Award if the additional amount is based either on a reasonable rate of interest or on one or more predetermined
actual investments such that the amount payable by the Company at the later date will be based on the actual rate of return of
a specific investment (including any decrease as well as any increase in the value of an investment).

 

(i)          Early
Exercise. The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an
Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares
received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any other
restriction the Administrator determines to be appropriate.

 

    	12 	| Page	 

     

    

 

(j)          Term
of Award. The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term of an
Award shall be no more than ten years from the date of grant thereof. However, in the case of an Incentive Stock Option granted
to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of
all classes of stock of the Company or any Parent or Subsidiary of the Company, the term of the Incentive Stock Option shall be
five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. Notwithstanding the
foregoing, the specified term of any Award shall not include any period for which the Grantee has elected to defer the receipt
of the Shares or cash issuable pursuant to the Award.

 

(k)          Transferability
of Awards. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only
by the Grantee. Other Awards shall be transferable (i) by will and by the laws of descent and distribution and (ii) during
the lifetime of the Grantee, to the extent and in the manner authorized by the Administrator but only to the extent such transfers
are made to family members, to family trusts, to family controlled entities, to charitable organizations, and pursuant to domestic
relations orders or agreements, in all cases without payment for such transfers to the Grantee. Notwithstanding the foregoing,
the Grantee may designate one or more beneficiaries of the Grantee’s Award in the event of the Grantee’s death on a
beneficiary designation form provided by the Administrator.

 

(l)          Time
of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the
determination to grant such Award, or such other later date as is determined by the Administrator.

 

7.          Award
Exercise or Purchase Price, Consideration and Taxes.

 

(a)          Exercise
or Purchase Price. The exercise or purchase price, if any, for an Award shall be as follows:

 

(i)          In
the case of an Incentive Stock Option:

 

(A)         granted
to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the per Share exercise price
shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or

 

(B)         granted
to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than
one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(ii)         In
the case of a Non-Qualified Stock Option, the per Share exercise price shall be not less than one hundred percent (100%) of the
Fair Market Value per Share on the date of grant.

 

    	13 	| Page	 

     

    

 

(iii)        In
the case of Awards intended to qualify as Performance-Based Compensation, the exercise or purchase price, if any, shall be not
less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

 

(iv)        In
the case of SARs, the base appreciation amount shall not be less than one hundred percent (100%) of the Fair Market Value per Share
on the date of grant.

 

(v)         In
the case of other Awards, such price as is determined by the Administrator.

 

(vi)        Notwithstanding
the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(d),
above, the exercise or purchase price for the Award shall be determined in accordance with the provisions of the relevant instrument
evidencing the agreement to issue such Award.

 

(b)          Consideration.
Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award including
the method of payment shall be determined by the Administrator. In addition to any other types of consideration the Administrator
may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following, provided
that the portion of the consideration equal to the par value of the Shares must be paid in cash or other legal consideration permitted
by the Nevada Business Corporations Law:

 

(i)          cash;

 

(ii)         check;

 

(iii)        surrender
of Shares, or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require, that
have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which
said Award shall be exercised;

 

(iv)        with
respect to Options, if the exercise occurs on or after the Registration Date, payment through a broker-dealer sale and remittance
procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect
the immediate sale of some or all of the purchased Shares and remit to the Company sufficient funds to cover the aggregate exercise
price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for
the purchased Shares directly to such brokerage firm in order to complete the sale transaction;

 

(v)         with
respect to Options, payment through a “net exercise” such that, without the payment of any funds, the Grantee
may exercise the Option and receive the net number of Shares equal to (i) the number of Shares as to which the Option is being
exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market Value per Share (on such date as is determined
by the Administrator) less the exercise price per Share, and the denominator of which is such Fair Market Value per Share (the
number of net Shares to be received shall be rounded down to the nearest whole number of Shares); or

 

    	14 	| Page	 

     

    

 

(vi)        any
combination of the foregoing methods of payment.

 

The Administrator may
at any time or from time to time, by adoption of or by amendment to the standard forms of Award Agreement described in Section 4(b)
(iv), or by other means, grant Awards that do not permit all of the foregoing forms of consideration to be used in payment
for the Shares or that otherwise restrict one or more forms of consideration.

 

(c)          Taxes.
No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any non-U.S., federal, state, or local income and employment tax withholding
obligations, including, without limitation, obligations incident to the receipt of Shares. Upon exercise or vesting of an Award
the Company shall withhold or collect from the Grantee an amount sufficient to satisfy such tax obligations, including, but not
limited to, by surrender of the whole number of Shares covered by the Award sufficient to satisfy the minimum applicable tax withholding
obligations incident to the exercise or vesting of an Award (reduced to the lowest whole number of Shares if such number of Shares
withheld would result in withholding a fractional Share with any remaining tax withholding settled in cash).

 

8.           Exercise
of Award.

 

(a)          Procedure
for Exercise; Rights as a Shareholder.

 

(i)          Any
Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the
terms of the Plan and specified in the Award Agreement.

 

(ii)         An
Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the
terms of the Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award
is exercised has been made, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the
purchase price as provided in Section 7(b) (iv).

 

(b)          Exercise
of Award Following Termination of Continuous Service. In the event of termination of a Grantee’s Continuous Service
for any reason other than Disability or death (but not in the event of a Grantee’s change of status from Employee to Consultant
or from Consultant to Employee), such Grantee may, but only during the post-termination exercise period (but in no event later
than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion of the Grantee’s
Award that was vested at the date of such termination or such other portion of the Grantee’s Award as may be determined by
the Administrator. The Grantee’s Award Agreement may provide that upon the termination of the Grantee’s Continuous
Service for Cause, the Grantee’s right to exercise the Award shall terminate concurrently with the termination of Grantee’s
Continuous Service. In the event of a Grantee’s change of status from Employee to Consultant, an Employee’s Incentive
Stock Option shall convert automatically to a Non-Qualified Stock Option on the day three months and one day following such change
of status. To the extent that the Grantee’s Award was unvested at the date of termination, or if the Grantee does not exercise
the vested portion of the Grantee’s Award within the post-termination exercise period, the Award shall terminate.

 

    	15 	| Page	 

     

    

 

(c)          Disability
of Grantee. In the event of termination of a Grantee’s Continuous Service as a result of his or her Disability, such
Grantee may, but only within six months from the date of such termination (or such longer period as specified in the Award Agreement
but in no event later than the expiration date of the term of such Award as set forth in the Award Agreement), exercise the portion
of the Grantee’s Award that was vested at the date of such termination; provided, however, that if such Disability is not
a “disability” as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock Option
such Incentive Stock Option shall automatically convert to a Non-Qualified Stock Option on the day three months and one day following
such termination. To the extent that the Grantee’s Award was unvested at the date of termination, or if Grantee does not
exercise the vested portion of the Grantee’s Award within the time specified herein, the Award shall terminate.

 

(d)          Death
of Grantee. In the event of a termination of the Grantee’s Continuous Service as a result of his or her death, or
in the event of the death of the Grantee during the post-termination exercise period or during the six month period following the
Grantee’s termination of Continuous Service as a result of his or her Disability, the Grantee’s estate or a person
who acquired the right to exercise the Award by bequest or inheritance may exercise the portion of the Grantee’s Award that
was vested as of the date of termination, within six months from the date of death (or such longer period as specified in the Award
Agreement but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). To the extent
that, at the time of death, the Grantee’s Award was unvested, or if the Grantee’s estate or a person who acquired the
right to exercise the Award by bequest or inheritance does not exercise the vested portion of the Grantee’s Award within
the time specified herein, the Award shall terminate.

 

(e)          Extension
if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Award within the applicable time periods
set forth in this Section 8 is prevented by the provisions of Section 9 below, the Award shall remain exercisable
until one month after the date the Grantee is notified by the Company that the Award is exercisable, but in any event no later
than the expiration of the term of such Award as set forth in the Award Agreement and only in a manner and to the extent permitted
under Code Section 409A.

 

9.           Conditions
Upon Issuance of Shares.

 

(a) If at any time the
Administrator determines that the delivery of Shares pursuant to the exercise, vesting or any other provision of an Award is or
may be unlawful under Applicable Laws, the vesting or right to exercise an Award or to otherwise receive Shares pursuant to the
terms of an Award shall be suspended until the Administrator determines that such delivery is lawful and shall be further subject
to the approval of counsel for the Company with respect to such compliance. The Company shall have no obligation to effect any
registration or qualification of the Shares under federal or state laws.

 

(b) As a condition to
the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such
Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable Laws.

 

    	16 	| Page	 

     

    

 

10.         Adjustments
Upon Changes in Capitalization. Subject to any required action by the stockholders of the Company and Section 11
hereof, the number of Shares covered by each outstanding Award, and the number of Shares that have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or that have been returned to the Plan, the exercise or purchase
price of each such outstanding Award, the maximum number of Shares with respect to which Awards may be granted to any Grantee in
any calendar year, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted
for (i) any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend,
recapitalization, combination or reclassification of the Shares, or similar transaction affecting the Shares; (ii) any other
increase or decrease in the number of issued Shares effected without receipt of consideration by the Company; or (iii)  any
other transaction with respect to Common Stock including a corporate merger, consolidation, acquisition of property or stock, separation
(including a spin-off or other distribution of stock or property), reorganization, liquidation (whether partial or complete) or
any similar transaction; provided, however that conversion of any convertible securities of the Company shall not
be deemed to have been “effected without receipt of consideration.” In the event of any distribution of cash or other
assets to stockholders other than a normal cash dividend, the Administrator shall also make such adjustments as provided in this
Section 10 or substitute, exchange or grant Awards to effect such adjustments (collectively “adjustments”).
Any such adjustments to outstanding Awards will be effected in a manner that precludes the enlargement of rights and benefits under
such Awards. In connection with the foregoing adjustments, the Administrator may, in its discretion, prohibit the exercise of Awards
or other issuance of Shares, cash or other consideration pursuant to Awards during certain periods of time. Except as the Administrator
determines, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect,
and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award.

 

11.         Corporate
Transactions and Changes in Control.

 

(a)          Termination
of Award to Extent Not Assumed in Corporate Transaction. Effective upon the consummation of a Corporate Transaction, all
outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate to the extent they are Assumed
in connection with the Corporate Transaction.

 

(b)          Acceleration
of Award Upon Corporate Transaction or Change in Control. The Administrator shall have the authority, exercisable either
in advance of any actual or anticipated Corporate Transaction or Change in Control or at the time of an actual Corporate Transaction
or Change in Control and exercisable at the time of the grant of an Award under the Plan or any time while an Award remains outstanding,
to provide for the full or partial automatic vesting and exercisability of one or more outstanding unvested Awards under the Plan
and the release from restrictions on transfer and repurchase or forfeiture rights of such Awards in connection with a Corporate
Transaction or Change in Control, on such terms and conditions as the Administrator may specify. The Administrator also shall have
the authority to condition any such Award vesting and exercisability or release from such limitations upon the subsequent termination
of the Continuous Service of the Grantee within a specified period following the effective date of the Corporate Transaction or
Change in Control. The Administrator may provide that any Awards so vested or released from such limitations in connection with
a Change in Control, shall remain fully exercisable until the expiration or sooner termination of the Award.

 

    	17 	| Page	 

     

    

 

(c)          Effect
of Acceleration on Incentive Stock Options. Any Incentive Stock Option accelerated under this Section 11 in
connection with a Corporate Transaction or Change in Control shall remain exercisable as an Incentive Stock Option under the Code
only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded.

 

12.         Effective
Date and Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval
by the shareholders of the Company. It shall continue in effect for a term of ten years unless sooner terminated. Subject to Section 17,
below, and Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

 

13.         Amendment,
Suspension or Termination of the Plan.

 

(a)          The
Board may at any time amend, suspend or terminate the Plan; provided, however, that no such amendment shall be made without the
approval of the Company’s stockholders to the extent such approval is required by Applicable Laws.

 

(b)          No
Award may be granted during any suspension of the Plan or after termination of the Plan.

 

(c)          No
suspension or termination of the Plan (including termination of the Plan under Section 11, above) shall adversely affect
any rights under Awards already granted to a Grantee.

 

14.         Reservation
of Shares.

 

(a)          The
Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient
to satisfy the requirements of the Plan.

 

(b)          The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

15.         No
Effect on Terms of Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with respect
to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company
or any Related Entity to terminate the Grantee’s Continuous Service at any time, with or without cause, including, but not
limited to, Cause, and with or without notice. The ability of the Company or any Related Entity to terminate the employment of
a Grantee who is employed at will is in no way affected by its determination that the Grantee’s Continuous Service has been
terminated for Cause for the purposes of this Plan.

 

    	18 	| Page	 

     

    

 

16.         No
Effect on Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of
the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under
any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind
or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.
The Plan is not a “Pension Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of
1974, as amended.

 

17.         Shareholder
Approval. The grant of Incentive Stock Options under the Plan shall be subject to approval of the Plan by the shareholders
of the Company within twelve (12) months before or after the date the Plan is adopted excluding Incentive Stock Options issued
in substitution for outstanding Incentive Stock Options pursuant to Section 424(a) of the Code. Such stockholder approval
shall be obtained in the degree and manner required under Applicable Laws. The Administrator may grant Incentive Stock Options
under the Plan prior to approval by the stockholders, but until such approval is obtained, no such Incentive Stock Option shall
be exercisable. In the event that stockholder approval is not obtained within the twelve (12) month period provided above, all
Incentive Stock Options previously granted under the Plan shall be exercisable as Non-Qualified Stock Options.

 

18.         Effect
of Section 162(m) of the Code. Section 162(m) of the Code does not apply to the Plan prior to the Registration
Date. Following the Registration Date, the Plan, and all Awards issued thereunder, are intended to be exempt from the application
of Section 162(m) of the Code, which restricts under certain circumstances the Federal income tax deduction for compensation
paid by a public company to named executives in excess of $1 million per year. The exemption is based on Treasury Regulation
Section 1.162-27 (f), in the form existing on the effective date of the Plan, with the understanding that such regulation
generally exempts from the application of Section 162(m) of the Code compensation paid pursuant to a plan that existed before
a company becomes publicly held. Under such Treasury Regulation, this exemption is available to the Plan for the duration of the
period that lasts until the earlier of (i) the expiration of the Plan; (ii) the material modification of the Plan; (iii) the
exhaustion of the maximum number of shares of Common Stock available for Awards under the Plan, as set forth in Section 3(a);
(iv) the first meeting of shareholders at which Directors are to be elected that occurs after the close of the third calendar year
following the calendar year in which the Company first becomes subject to the reporting obligations of Section 13 or 15(d)
of the Exchange Act; or (v) such other date required by Section 162(m) of the Code and the rules and regulations promulgated
thereunder. To the extent that the Administrator determines as of the date of grant of an Award that (i) the Award is intended
to qualify as Performance-Based Compensation; and (ii) the exemption described above is no longer available with respect to
such Award, such Award shall not be effective until any stockholder approval required under Section 162(m) of the Code has
been obtained.

 

    	19 	| Page	 

     

    

 

19.         Unfunded
Obligation. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees
pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I
of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required
to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such
obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which
the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust
or any Grantee account shall not create or constitute a trust or fiduciary relationship between the Administrator, the Company
or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s
creditors in any assets of the Company or a Related Entity. The Grantees shall have no claim against the Company or any Related
Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan.

 

20.         Construction.
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision
of the Plan. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

21.         Nonexclusivity
of the Plan. Neither the adoption of the Plan by the Board, the submission of the Plan to the stockholders of the Company
for approval, nor any provision of the Plan will be construed as creating any limitations on the power of the Board to adopt such
additional compensation arrangements as it may deem desirable, including, without limitation, the granting of Awards otherwise
than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.

 

    	20 	| Pagefsb20707ex14_celsius.htm

    Exhibit
    10.5

         

    CODE
      OF ETHICAL CONDUCT

    

    

    

    

    

    

    

    

    

    

     

    Celsius
      Holdings, Inc. and subsidiaries

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    To
      All Celsius Employees:

     
      
        

      

    

    

     

    At
      Celsius, we are committed to conducting our business with integrity. This Code
      of Ethical Conduct is a guide for every Company employee in applying legal
      and
      ethical practices to their everyday work. The Code describes not only our
      standards of integrity but also some of the specific principles and areas of
      the
      law that are most likely to affect us.

     

    There
      is
      no quality more important than integrity. This applies to a business just as
      it
      does to an individual. Integrity is a core value in our Code of Ethical
      Conduct.

     

    Celsius
      is a good corporate citizen not just because we comply with the law, but because
      our employees are also expected to act according to our ethical principles.
      We
      are committed to go beyond mere compliance – beyond simply "doing things right."
      We aspire to "do the right thing" by being faithful to and executing the
      principles and guidelines cited in this Code of Ethical Conduct and to act
      in
      ways that exceed the minimum standards set by law. Each of us is personally
      responsible for meeting this obligation.

     

    Certain
      situations may arise that are not covered in our Code of Ethical Conduct.
If you have any questions concerning the legality or propriety of
      an
      action, or the meaning of the Code, you should contact (1) your immediate
      supervisor, (2) Celsius’ Chief Financial Officer, our Compliance Director, or
      (3) Roger Shaffer of Baritz & Colman LLP, our outside counsel, at 1075
      Broken Sound Parkway, NW, Suite 102, Boca Raton, Florida 33487, phone: (561)
      864-5100, fax: (561) 864-5101, email:
      rshaffer@baritzcolman.com.

     

    Compliance
      with the law and honesty and integrity in our dealings with others are not
      to be
      sacrificed in the name of profits. We do not and will not condone any such
      action. We will attain our success through compliance with the law, dealings
      evidencing fairness and integrity, and a commitment to quality. We expect your
      wholehearted support of these Company values and principles.

     

    You
      will
      discover that many of the guidelines in this Code of Ethical Conduct are simple
      common sense and good business practice; others reflect our desire to emphasize
      integrity and compliance with the law. Our business mission will only be
      successful if every Celsius employee follows this Code.

     

    

     

    

     

    /s/
       Gerry David

     

    

    Gerry David, CEO

     

    

     

    

     

    
      	
              This
                Code of Ethical Conduct is a summary of Celsius business practice
                policies
                and guidelines, which must be followed as a condition of
                employment.

            

    

     

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

     

     

    TABLE
      OF CONTENTS

    

    
      	 	 	
              Page

            
	
              I.

            	
              PURPOSE
                OF THE CODE OF ETHICAL CONDUCT / POLICY STATEMENT

            	
              1

            
	
              II.

            	
              GENERAL
                POLICY REGARDING LAWS AND BUSINESS CONDUCT

            	
              1

            
	
              III.

            	
              DISCRIMINATION
                AND HARASSMENT

            	
              1

            
	
              IV.

            	
              ETHICAL
                BUSINESS PRACTICES

            	
              1

            
	 	
              Accuracy
                of Books and Records

            	
              2

            
	 	
              Fraud
                and Similar Irregularities

            	
              2

            
	
              V.

            	
              GIFTS,
                BUSINESS COURTESIES AND BRIBES

            	
              2

            
	
              VI.

            	
              CONFLICTS
                OF INTEREST

            	
              3

            
	
              VII.

            	
              USE
                OF CELSIUS ASSETS AND RESOURCES

            	
              4

            
	 	
              Corporate
                Opportunities

            	
              5

            
	
              VIII.

            	
              CONFIDENTIAL
                INFORMATION

            	
              5

            
	 	
              Insider
                Trading

            	
              5

            
	
              IX

            	
              INTERNATIONAL
                OPERATIONS

            	
              5

            
	 	
              Foreign
                Corrupt Practices and the OECD Anti-Bribery Convention

            	
              6

            
	
              X

            	
              IMPLEMENTATION

            	
              6

            
	 	
              Scope
                of Application

            	
              6

            
	 	
              Communication
                Responsibilities

            	
              6

            
	 	
              Waiver
                of the Code of Ethical Conduct

            	
              6

            
	 	
              Potential
                Violations

            	
              6

            
	
              XI.

            	
              WHISTLE
                BLOWER POLICY

            	
              6

            
	
              XII.

            	
              COMPLIANCE
                PROCEDURES

            	
              7

            
	
              XIII.

            	
              VIOLATIONS

            	
              8

            

    

     

     

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

     

     

     

     

    I.           PURPOSE
      OF THE CODE OF ETHICAL CONDUCT / POLICY STATEMENT

     

    This
      Code
      of Ethical Conduct sets forth the standards for business conduct at Celsius
      Holdings, Inc. and its affiliated companies (“Celsius”). It is intended to guide
      each employee in making business decisions to ensure that Celsius achieves
      its
      mission and its commitment to integrity.

     

    Celsius
      strives to comply with all laws and regulations that are applicable to its
      business worldwide. Though customs vary country by country and standards may
      vary by business environment, Celsius emphasizes good faith efforts to follow
      the spirit and intent of the law. Good business results do not justify a
      violation of business ethics, the law, or regulations. Ethical business behavior
      should exist at a level well above what the law requires. Celsius’ reputation
      for integrity is one of its most valued assets, and integrity is expected of
      everyone.

     

    Neither
      this Code of Ethical Conduct nor any book of rules can provide all the answers.
      A Celsius employee must consider each situation carefully to ensure that he
      or
      she is acting ethically and in the best interest of the Company. Employees
      should consider whether their actions would withstand full examination by
      friends and associates or public disclosure in the press. If questions arise,
      employees should discuss the circumstances with our Compliance Director or
      their
      immediate supervisor.

     

    Each
      employee is responsible for adhering to the Code of Ethical Conduct as a
      condition of continued employment; however, compliance with the Code of Ethical
      Conduct shall in no way alter your employment-at-will status. In addition,
      employees in Finance, Purchasing, or other specialized areas must comply with
      their own functional policies and requirements.

     

    Violations
      of the Code may result in sanctions imposed by Celsius up to and including
      immediate termination of employment. Violations of the Code may also subject
      the
      individual employee to civil and criminal sanctions and shall be considered
      as
      an act outside of the scope of your employment.

     

    II.           GENERAL
      POLICY REGARDING LAWS AND BUSINESS CONDUCT

     

    Celsius
      operates within the bounds of the laws, rules, and regulations that are relevant
      to our business. The rule of law is fundamental to civil society, to the
      democratic process, and to the conduct of business in a dynamic global
      marketplace. However, today's market demands that companies meet higher
      standards – simply obeying the law is not enough. To achieve higher standards of
      behavior, we need to make business decisions that are aligned with our ethical
      principles.

     

    Supervisors
      must ensure that employees understand the values and are informed of the
      requirements relating to their jobs. They must also be available to answer
      employee questions or concerns and to guide them to other Celsius subject-matter
      experts when necessary. There are serious consequences for failing to follow
      these laws, up to and including termination of employment. Laws and regulations
      are sometimes ambiguous and difficult to interpret. In such situations, contact
      our Compliance Director for assistance.

     

    III.           DISCRIMINATION
      AND HARASSMENT

     

    The
      diversity of the Company’s employees is a tremendous asset. The Company is
      firmly committed to providing equal opportunity in all aspects of employment
      and
      will not tolerate any illegal discrimination or harassment of any kind. Examples
      include derogatory comments based on racial or ethnic characteristics and
      unwelcome sexual advances.

     

    IV.           ETHICAL
      BUSINESS PRACTICES

     

    Our
      success in the marketplace is based on the quality of our products and services,
      the value our products and services provide our customers, and the competence
      and honesty of our product and sales presentations. Celsius prospers only to
      the
      degree that we serve our customers well – and treat them, our suppliers,
      partners, teammates, and competitors fairly and honestly. When we fail to
      negotiate, perform, or market in good faith, we seriously damage our reputation
      and lose the loyalty of our customers.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    Fair
      competition is the hallmark of our relationships – our business dealings will be
      frank and respectful, and we strive to generate mutually advantageous, long-term
      relationships.

     

    Accuracy
      of Books and Records

     

    The
      Company requires honest and accurate recording and reporting of information
      in
      order to make responsible business decisions. Many employees regularly use
      business expense accounts, which must be documented and recorded accurately.
      If
      an employee is not sure whether a certain expense is legitimate, the employee
      should ask his or her supervisor or the Company’s CFO. All of the Company’s
      books, records, accounts and financial statements must be maintained in
      reasonable detail, must appropriately reflect the Company’s transactions and
      must conform both to applicable legal requirements and to the Company’s system
      of internal controls. Unrecorded or “off the books” funds or assets should not
      be maintained.

     

    Fraud
      and Similar Irregularities

     

    Celsius
      prohibits fraud and has established procedures to be followed concerning the
      recognition, reporting, and investigation of suspected fraud. Fraud includes,
      but is not limited to

     

    
      	
              ·  

            	
              Dishonest
                or fraudulent acts:

            

    

     

    
      	
              ·  

            	
              Embezzlement;

            

    

     

    
      	
              ·  

            	
              Forgery
                or alteration of negotiable instruments such as Celsius checks and
                drafts;

            

    

     

    
      	
              ·  

            	
              Misappropriation
                of Celsius, employee, customer, partner, or supplier
                assets;

            

    

     

    
      	
              ·  

            	
              Personal
                use of cash, securities, supplies, or any other Celsius
                assets;

            

    

     

    
      	
              ·  

            	
              Unauthorized
                handling and reporting of Celsius transactions;
                and

            

    

     

    
      	
              ·  

            	
              Falsification
                of Celsius records or financial statements for personal or other
                reasons.

            

    

     

    
      	
              ·  

            	
              Use
                of illegal, not licensed, software
                programs.

            

    

     

    Any
      employee or agent who suspects that any fraudulent activity may have occurred
      should report such concern to our Compliance Director, or Roger Shaffer of
      Baritz & Colman LLP, our outside counsel, at 1075 Broken Sound Parkway, NW,
      Suite 102, Boca Raton, Florida 33487, phone: (561) 864-5100, fax: (561)
      864-5101, email: rshaffer@baritzcolman.com.

     

    V.           GIFTS,
      BUSINESS COURTESIES AND BRIBES

     

    To
      maintain trust in our business relationships, we must always act with integrity.
      We must steer clear of giving or receiving gifts that are intended to influence,
      or appear to influence, business decisions. When we accept or give such gifts,
      it can undermine customer relationships, hurt our reputation, and put Celsius
      in
      legal jeopardy.

     

    Celsius
      recognizes that gifts, gratuities, and other business courtesies may
      occasionally be appropriate in building and maintaining business relationships
      with customers, suppliers, and other stakeholders. However, our employees,
      representatives, and agents must avoid even the perception of favorable
      treatment or the appearance of impropriety when offering or accepting any item
      of value in conducting our business.

     

    When
      considering whether to accept or offer a gift, gratuity, or other business
      courtesy, Celsius employees are expected to use moderation and prudent judgment.
      Begin by assuring yourself that any offer you would make or courtesy that you
      would accept would leave you feeling comfortable if known by your manager,
      coworker, family member, or the public.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    If
      you
      are a buyer, influence buying, or are involved in procurement transactions
      in
      any way (e.g., determine specifications, evaluate bids, etc.), you must be
      especially careful not to create the appearance of special treatment. In other
      words, you must refrain from accepting gifts or business courtesies that could
      be perceived as affecting your objectivity or influencing your decisions. If
      the
      "right thing to do" is not obvious, seek guidance from your supervisor or the
      Compliance Director. In addition, each Celsius employee should promptly advise
      his or her immediate supervisor upon receipt of any cash gift from a Celsius
      supplier or other business partner, or upon the receipt of any gift (other
      than
      customary business meals) with a value of more than $100.

     

    A
      number
      of laws and regulations, including the Anti-Kickback Act and the Foreign Corrupt
      Practices Act, have been created to ensure that business decisions are free
      from
      unfair influence. Bribes and other corrupt offers not only violate Celsius
      policy; they are illegal – subjecting both Celsius and the individual to civil
      and criminal penalties. When dealing with government customers or officials,
      whether domestic or international, we must be especially mindful because these
      laws and regulations have been put in place to protect the public's interests.
      Any offer of money or gifts intended to influence a business decision should
      be
      reported to your the Compliance Director or our outside counsel.

     

    VI.           CONFLICTS
      OF INTEREST

     

    Integrity
      in a business relationship means that all participants are working together
      for
      the common good, and are not making decisions based on self-interest. When
      we
      act with integrity, we earn trust and build long-term customer relationships.
      When we act, or appear to be acting in our own self-interest, we lose trust
      and
      damage our reputation.

     

    Except
      as
      specifically authorized in this section, Celsius expects that our business
      will
      be conducted free from any actual or potential conflict that might arise when
      one's loyalty is split between personal interests or friendships and the
      interests of the company. Judgment can be affected in any transaction or
      relationship where an individual might find that Celsius’ interest competes with
      his or her own. Celsius wants loyalty to come easily, and we will work together
      to resolve disclosed conflicts in a mutually satisfactory manner. Our customers
      and suppliers can expect to be dealt with fairly and impartially, free from
      any
      conflicting interests.

     

    Except
      as
      specifically authorized in this section, Celsius employees have a duty to avoid
      financial, business, or other relationships that might interfere with this
      commitment. Each of us will scrupulously avoid even the appearance of a conflict
      between personal interests and those of Celsius in matters of importance to
      Celsius’ business, and we expect those with whom we deal to support us in this
      endeavor.

     

    You
      must
      disclose any matter that casts doubt on your ability to act objectively and
      in
      Celsius’ best interest. Employees, representatives, and agents of Celsius who
      may have an actual or potential conflict should report all pertinent details
      in
      writing to their supervisor or the Compliance Director.

     

    Any
      of
      the following situations could present a conflict of interest and must be
      disclosed:

     

    
      	
              ·  

            	
              Ownership
                of, or substantial interest in, a company that is a competitor of
                or does
                business with Celsius.

            

    

     

    
      	
              ·  

            	
              Employment
                by a competitor or any organization that does business with Celsius,
                regardless of the nature of the employment, while also employed by
                Celsius.

            

    

     

    
      	
              ·  

            	
              Placement
                of business with a firm in which an employee or close family members
                has a
                substantial ownership or management
                interest.

            

    

     

    
      	
              ·  

            	
              Acting
                independently as a consultant to a Celsius customer, supplier, or
                other
                business partner.

            

    

     

    
      	
              ·  

            	
              As
                more fully described in Section IV above, acceptance of anything
                of value
                – such as gifts, discounts, or compensation – from an individual or entity
                that does or seeks to do business with
                Celsius.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              ·  

            	
              Employing
                or discussing employment with current or former government employees,
                or
                using them as consultants or subcontractors in violation of relevant
                law
                or regulation.

            

    

     

    
      	
              ·  

            	
              Hiring
                friends or relatives to work directly for you at Celsius, especially
                when
                you have control or influence over their work assignments, compensation,
                or promotion opportunities.

            

    

     

    In
      certain instances, senior management, the Audit Committee or the Board may
      determine that notwithstanding an actual or potential conflict of interest,
      a
      particular relationship or transaction is in the best interest of Celsius.
      Any
      such relationship or transaction must be approved in advance by senior
      management of Celsius not having a direct or indirect interest in the
      relationship or transaction. If the interested party is an officer or director
      of the Company, further approval must be obtained from of a majority of the
      Audit Committee of the Board of Directors of Celsius or the Board of Directors,
      provided that only those that do not have a relationship or an interest in
      the
      transaction are eligible to cast a vote. In each such case, the full scope
      of
      the conflict of interest must be disclosed to senior management and the Audit
      Committee or the Board, and must also be publicly disclosed to the extent
      required by applicable securities laws.

     

    VII.           USE
      OF CELSIUS ASSETS AND RESOURCES

     

    Effective
      use of our resources is critical to our bottom line. When we use Celsius
      resources wisely, we demonstrate our efficiency. When we waste our resources,
      we
      increase costs and reduce productivity.

     

    Our
      employees should demonstrate good judgment and discretion when utilizing Celsius
      or customer-owned resources. Such resources include computers, telephones,
      Internet access, electronic mail (e-mail), voice mail, reproduction equipment,
      facsimile systems, production and operational materials, vehicles, and other
      equipment and facilities. Likewise, we will exercise prudence in our
      expenditures, pursuing best value and return on our investments.

     

    Employees
      must use Celsius or customer-owned assets first and foremost for business
      purposes and to advance Celsius’ strategic objectives. However, occasional
      limited personal use may occur when it does not compromise Celsius’ interests.
      Each of us is responsible for safeguarding these assets – never borrowing or
      removing them from Celsius’ premises without proper authorization and always
      being mindful not to deplete their value, add significant cost for Celsius,
      or
      use them in a manner that adversely affects Celsius’ reputation.

     

    When
      using Celsius’ assets for personal reasons, follow these guidelines, unless
      previously authorized by Celsius’ senior management to perform any of the
      following, provided that is lawful:

     

    
      	
              ·  

            	
              Do
                not sell, loan, give away, or dispose of Celsius materials, designs,
                ideas, data, or other property without proper authorization. Any
                improper
                transfer of Celsius property, even though it may not be apparent
                that an
                employee has personally gained by such action, constitutes unacceptable
                conduct.

            

    

     

    
      	
              ·  

            	
              Limit
                the time spent on personal business to reasonable duration and frequency
–
                always incidental to your workday and never charged to Celsius or
                a
                customer. Private use of computers and telephones must not interfere
                with
                or adversely affect your job performance or that of any other person
                or
                organizational requirements.

            

    

     

    
      	
              ·  

            	
              Do
                not use Celsius assets in support of a personal business, consulting
                effort, or similar private venture, or to support the business of
                another
                company or firm, outside fund raising activity, political activity,
                or
                lobbying.

            

    

     

    
      	
              ·  

            	
              Do
                not use Celsius assets to support any illegal or other purpose that
                could
                cause embarrassment to Celsius or otherwise adversely affect its
                interests.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	
              ·  

            	
              Do
                not use Celsius assets to be disruptive or offensive (e.g., involving
                sexually explicit materials, or materials that are discriminatory,
                hateful, or threatening) to others.

            

    

     

    
      	
              ·  

            	
              When
                unsure of what constitutes appropriate use of Celsius assets, talk
                to your
                supervisor or the Compliance
                Director.

            

    

    

    Corporate
      Opportunities

     

    Employees,
      officers and directors are prohibited from taking for themselves personally
      opportunities that are discovered through the use of corporate property,
      information or position without the consent of the Board of Directors. No
      employee may use corporate property, information or position for improper
      personal gain and no employee may compete with the Company directly or
      indirectly. Employees, officers and directors owe a duty to the Company to
      advance its legitimate interests when the opportunity to do so
      arises.

     

    VIII.           CONFIDENTIAL
      INFORMATION

     

    The
      protection of the confidential business information and trade secrets of Celsius
      and its customers is vital to the interests and the success of Celsius. Such
      confidential information includes, but is not limited to, the following
      examples:

     

    ·  compensation
      data of other employees

    ·  computer
      programs and codes

    ·  customer
      lists

    ·  financial
      information

    ·  labor
      relations strategies

    ·  minutes
      of the Board of Directors or any of its committees

    ·  new
      materials research

    ·  pending
      projects and proposals

    ·  proprietary
      production processes

    ·  research
      and development strategies

    ·  scientific
      data

    ·  scientific
      prototypes

    ·  technological
      data

    ·  technological
      prototypes

     

    All
      employees may be required to sign a non-disclosure agreement as a condition
      of
      employment. Employees who improperly use or disclose trade secrets or
      confidential business information will be subject to disciplinary action, up
      to
      and including termination of employment, even if they do not actually benefit
      from the disclosed information.

     

    Insider
      Trading

     

    Employees
      who have access to confidential information are not permitted to use or share
      that information for stock trading purposes or for any other purpose, except
      the
      conduct of the Company’s business. All non-public information about the Company
      should be considered confidential information. To use non-public information
      for
      personal financial benefit or to “tip” others who might make an investment
      decision on the basis of this information is not only unethical, but also
      illegal. If a question arises, the employee should consult the Company’s Chief
      Financial Officer.

     

    IX.           INTERNATIONAL
      OPERATIONS

     

    Success
      in global business depends on our compliance with country-specific constraints
      and conditions, and sensitivity to local customs. Laws, regulations, and
      conventions governing business relationships vary from country to
      country.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    However,
      Celsius’ obligation to comply with U.S. law and regulation does not end when we
      or our products exit the United States nor does our commitment to treat our
      customers, suppliers, and community stakeholders with concern and
      respect.

     

    Foreign
      Corrupt Practices and the OECD Anti-Bribery Convention

     

    Corruption
      undermines trust, impedes the pursuit of democracy, erodes social and economic
      development, and destroys the concept of fair play in a competitive global
      marketplace. In accordance with the U.S. Foreign Corrupt Practices Act (FCPA),
      the Organization for Economic Cooperation and Development's Anti-Bribery
      Convention (to which the U.S. is a signatory), and similar laws and regulations
      of other countries, our employees, agent, and representatives generally may
      not
      offer anything of value for the purpose of influencing a government official
      to
      make an improper decision in their official capacity. Likewise, we are committed
      to transparency in our record-keeping, accounting, and other business
      transactions.

     

    X.           IMPLEMENTATION

     

    Scope
      of Application

     

    The
      Code
      of Ethical Conduct applies to all employees of Celsius. The Code will be
      circulated annually to each officer, director, and manager, who will be
      responsible for ensuring that employees under his or her supervision understand
      and will comply with this Code.

     

    Communication
      Responsibilities

     

    Senior
    management should always be informed of matters that in any way could damage       Celsius’ reputation. Failure to
    disclose such matters may be interpreted,       wrongly, as an indication that Celsius policies and rules are to be ignored.
    Accordingly, any employee who discovers events of a questionable,       fraudulent, or illegal nature that could
    potentially violate this Code should       promptly discuss them with (1) his or her supervisor, (2) Celsius’
    Compliance       Director, or (3) Dale S.  Bergman, Esq. of Gutiérrez Bergman Boulris, P.L.L.C., our outside counsel
    at 100 Almeria Avenue, Suite 340, Coral Gables, Florida 33134, phone: (305) 358-5100 fax: (888) 281-1829,  email:
    dale.bergman@gbbpl.com.     Likewise, no     information     may be     concealed     from     internal     or
    independent     external         auditors.     You may report     ethical     violations in     confidence and     without
    fear     of     retaliation, in     particular to     the     Compliance     Director or     the outside     counsel.
    If        your situation     requires     that your     identity     be kept     secret, your     anonymity will         be
    protected. The     Company does not permit     retaliation     of     any kind     against         employees for good faith
    reports of ethical       violations.

     

    Waiver
      of the Code of Ethical Conduct

     

    Any
      waiver of this Code for executive officers or directors may be made only by
      the
      Board or a Board committee and will be promptly disclosed to stockholders as
      required by law or stock exchange regulation.

     

    Potential
      Violations

     

    The
      Compliance Director is responsible for investigating potential violations of
      the
      Code of Ethical Conduct. Any substantive instances or matters called to his
      or
      her attention will be reported to the Board of Directors. A record of all
      communications and investigations will be retained on file for five
      years.

     

    
      	
              XI.  

            	
              WHISTLE
                BLOWER POLICY

            

    

     

    
      	
              a.  

            	
              Reporting
                of Concerns or Complaints Regarding Accounting, Internal Controls,
                or
                Auditing Matters.

            

    

     

    Taking
      action to prevent problems is part of the Company's culture.  If you
      observe possible unethical or illegal conduct, you are encouraged to report
      your
      concerns.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    Employees
      and others involved with the Company are urged to come forward with any such
      information, without regard to the identity of position of the suspected
      offender.

     

    Employees
      and others may choose any of the following modes of communicating suspected
      violations of law, policy, or other wrongdoing, as well as any concerns
      regarding questionable accounting or auditing matters (including deficiencies
      in
      internal controls):

     

    
      	
              ·  

            	
              Report
                the matter to your supervisor; or

            

    

     

    
      	
              ·  

            	
              Report
                the matter to the Company's CEO or CFO;
                or

            

    

     

    
      	
              ·  

            	
              Report
                the matter to the Chairman of the Audit
                Committee.

            

    

     

    
      	
              b.  

            	
              Confidentiality.

            

    

     

    The
      Company will treat all communications under this Policy in a confidential
      manner, except to the extent necessary (a) to conduct a complete and fair
      investigation, or (b) for reviews of Company operations by the Company's Board
      of Directors, its Audit Committee, and the Company's independent public
      accountants.

     

    Moreover,
      if your situation requires that your identity be protected, please submit an
      anonymous report as set forth in the attached Schedule.  Please be
      aware that the address identified for the Chairman of the Audit Committee is
      under the complete control of the Audit Committee Chairman.

     

    
      	
              c.  

            	
              Retaliation.

            

    

     

    Any
      individual who in good faith reports a possible violation of the Company's
      Code
      of Business Conduct and Ethics, the Code of Ethics for the Chief Executive
      Officer and Chief Financial Officer, or of law, or any concerns regarding
      questionable accounting or auditing matters, even if the report is mistaken,
      or
      who assists in the investigation of a reported violation, will be protected
      by
      the Company.  Retaliation in any form against these individuals will
      not be tolerated.  Any act of retaliation should be reported
      immediately and will be disciplined appropriately.

     

    Specifically,
      the Company will not discharge, demote, suspend, threaten, harass, or in any
      other manner discriminate or retaliate against any employee in the terms and
      conditions of the employee's employment because of any lawful act done by that
      employee to either (a) provide information, cause information to be provided,
      or
      otherwise assist in any investigation regarding any conduct that the employee
      reasonably believes constitutes a violation of any Company code of conduct,
      law,
      rule, or regulation, including any rule or regulation of the Securities and
      Exchange Commission or any provision of Federal law relating to fraud against
      shareholders, or (b) file, cause to be filed, testify, participate in, or
      otherwise assist in a proceeding filed or, to the employee's knowledge, about
      to
      be filed relating to an alleged violation of any such law, rule, or
      regulation.

    

    XII           COMPLIANCE
      PROCEDURES

     

    We
      must
      all work to ensure prompt and consistent action against violations of this
      Code.
      However, in some situations it is difficult to know right from wrong. Since
      we
      cannot anticipate every situation that will arise, it is important that we
      have
      a way to approach a new question or problem. These are the steps to keep in
      mind:

     

    
      	
              ·  

            	
              Ask
                yourself: What specifically am I being asked to do? Does it seem
                unethical
                or improper? This will enable you to focus on the specific question
                you are faced with and the alternatives you have. Use your judgment
                and
                common sense; if something seems unethical or improper, it probably
                is.

            

    

     

    
      	
              ·  

            	
              Discuss
                the problem with your supervisor. This is the basic guidance for all
                situations. In many cases, your supervisor will be more knowledgeable
                about the question and will appreciate being brought into the
                decision-making process. Remember that it is your supervisor’s
                responsibility to help solve
                problems.

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    
      	
              ·  

            	
              Seek
                help from Company resources. In the rare case where it may not be
                appropriate to discuss an issue with your supervisor or where you
                do not
                feel comfortable approaching your supervisor with your question,
                discuss
                it locally with your office manager or island manager. If that also
                is not
                appropriate, call the Compliance Director, which will put you in
                direct
                contact with the appropriate people at Company headquarters. If you
                prefer
                to write, address your concerns to the Company’s Chief Executive Officer
                or Chief Financial Officer.

            

    

     

    
      	
              ·  

            	
              You
                must at all times comply with the Foreign Corrupt Practices Act
                (“FCPA”) and also any FCPA policy that the Company may have in
                effect.

            

    

     

    XIII           VIOLATIONS

     

    Any
      violation of the code of ethical conduct, or by not following the compliance
      procedures in item XII, will have serious consequences, up to and including
      termination of employment for cause. Violations of the Code may also subject
      the
      individual employee to civil and criminal sanctions and shall be considered
      as
      an act outside of the scope of your employment.

     

    

    8

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