Document:

EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

     This Registration  Rights Agreement (this  "Agreement") is made and entered
into as of June 21, 2007 by and among Vasomedical,  Inc., a Delaware corporation
(the "Company"),  and each of Kerns Manufacturing  Corp., a New York corporation
("Kerns"),  and  Living  Data  Technology  Corporation,  a New York  corporation
("Living Data").

     This  Agreement is made pursuant to (1) the Securities  Purchase  Agreement
dated as of the date hereof (the "Securities Purchase Agreement") by and between
the Company and Kerns and (2) the  Distribution  Agreement  dated as of the date
hereof  (the  "Distribution  Agreement")  by and  between the Company and Living
Data,  pursuant  to which each of Kerns and  Living  Data is  acquiring  certain
equity securities of the Company, and this Agreement shall become effective only
upon a Closing pursuant to the Securities Purchase Agreement.

     The Company and the Purchasers hereby agree as follows:

     1.  Definitions.  Capitalized  terms used and not otherwise  defined herein
that are defined in the Securities Agreement or the Distribution Agreement shall
have the meanings given such terms in the Securities  Purchase  Agreement or the
Distribution  Agreement.  As used in this  Agreement,  the following terms shall
have the following meanings:

     "Holder"  or  "Holders"  means the holder or holders  (including  Kerns and
Living Data),  as the case may be from time to time, of  Registrable  Securities
(including any permitted assignee).

     "Registrable  Securities" means the Kerns Shares,  the Warrant Shares,  the
Living Data Shares and any shares of the Common  Stock  issued or issuable  upon
any stock split, dividend or other distribution, recapitalization, anti-dilution
adjustment or similar event with respect to the foregoing or in connection  with
any provision in the Securities Purchase Agreement,  the Distribution  Agreement
or the Warrant.

     2. Grant of Rights.  If the Company  intends to file with the SEC under the
Securities  Act at any time after  July 1, 2008 a  registration  statement  (the
"Registration Statement") with respect to shares of the Common Stock (other than
on the SEC's current Form S-8 or Form S-4 (or any  replacement  therefor)),  the
Company will offer each of the Holders the  opportunity to sell the  Registrable
Securities  pursuant to the Registration  Statement.  Each Holder shall have ten
(10) days from  receipt of the  Company's  notice to accept or reject the offer,
specifying as to the number of shares of the Registrable  Securities as to which
the Holder requests  registration.  Such registration shall be at no cost to the
Holders  other than for the fees of  counsel,  if any,  each  Holder may wish to
retain in connection  with such process or any applicable  transfer taxes or the
underwriting  discounts or  commissions  applicable  to the shares of the Common
Stock sold by each Holder pursuant thereto.  In connection with the Registration
Statement,  each Holder  shall,  within five (5) Business Days of receipt of any
notice  from the  Company  requesting  the same,  furnish  to the  Company  such
information as the Company may reasonably  request with respect to such Holder's
plan of distribution, such Holder's ownership of securities of the Company other
than  those  acquired  pursuant  to the  Securities  Purchase  Agreement  or the
Distribution  Agreement and such other  information as may be required to effect
such registration,  including information that is subsequently  requested by the
Staff of the SEC. The Holders may exercise these "piggyback" registration rights

<PAGE>
only twice.  Notwithstanding  the  foregoing,  in the event that (i) the Holders
seek to offer for sale at market on a delayed or  continuous  basis  Registrable
Securities and (ii) the number of Registrable Securities sought to be include in
the any such Registration  Statement by the Holders exceeds the number of shares
that may be sold on a delayed or continuous basis pursuant to Rule 415 under the
Securities  Act (or any successor  rule),  as determined by the Company based on
the advice of counsel or as set forth in a comment  letter from the staff of the
SEC, then the number of Registrable  Securities in such  Registration  Statement
shall be  reduced to the  maximum  number  that may be sold by the  Holders as a
"secondary'  offering  at market on a delayed or  continuous  basis.  As to such
Registrable  Securities  not include in a  Registration  Statement,  the Holders
shall be entitled to subsequently  exercise  "piggyback"  registration rights as
provided above in this Section 2, even if the Holders had  previously  exercised
"piggyback"  registration rights on two or more occasions. The Company shall not
be obligated to register the Holder's  shares of the  Registrable  Securities if
counsel to the Company  shall deliver an opinion to the Holder that the proposed
sale or other  transfer  of the Kerns  Shares,  the  Living  Data  Shares or the
Warrant Shares,  whichever is applicable,  is exempt from applicable federal and
state  securities  registration  requirements and would result in all purchasers
and transferees from such Holder obtaining  securities which are not "restricted
securities" as defined in SEC Rule 144(a)(3) under the Securities Act.

     3. Maintenance of  Registration.  The Company shall be required to maintain
the  effectiveness of the Registration  Statement  registering the shares of the
Registrable  Securities  until the  earlier of (a) the public sale of all of the
shares  of the  Common  Stock  registered  thereunder  for the  Holder,  (b) the
expiration  of one  year  from  the date  the  Registration  Statement  has been
declared  effective by the SEC, or (c) receipt of an opinion from counsel to the
Company  that the proposed  sale or other  transfer by the Holder is exempt from
applicable  federal and state  securities  registration  requirements  and would
result in all purchasers and transferees  from the Holder  obtaining  securities
which are not  "restricted  securities" as defined in Rule  144(a)(3)  under the
Securities  Act. If the Holder's right to sell is delayed as provided in Section
4 or Section 6 hereof,  then the period of delay shall be added to the  one-year
period in clause (b) of this  Section 3. The Company  shall comply with Rule 172
under the Securities Act.

     4. Underwriter's Hold on Selling.  If, during any time in which the Company
is required to keep effective the Registration  Statement,  it is the opinion of
the Company's managing underwriter that, in any underwritten offer of securities
then  contemplated by the Company,  the continued  offering of the shares of the
Common Stock of the Holder,  when added to the other securities being registered
by the Company  (plus those of any other selling  stockholder),  will exceed the
maximum  amount  of the  Company's  securities  which the  managing  underwriter
believes  can be marketed  (a) at a price  reasonably  related to their  current
market value, or (b) without materially  adversely affecting the offering by the
Company,  then the Holder  agrees to cease its  resales for a period of up to 90
days from the effective date of this new registration  statement as requested by
the managing underwriter.

                                       2
<PAGE>
     5.  Compliance with Regulation M. Each Holder shall, at any time it engages
in a distribution  of the shares of the Common Stock  registered for the Holder,
comply  with all  applicable  requirements  of  Regulation  M (or any  successor
provisions  then in force)  promulgated  under the Exchange Act and (a) will not
engage in any  stabilization  activity in connection  with the securities of the
Company  in  contravention  of the rules and  regulations  of the SEC,  (b) will
distribute  the shares of the Common Stock  registered  for the Holder solely in
the manner described in the Registration  Statement and (c) will not bid for, or
purchase,  any  securities of the Company,  or induce any person to purchase any
securities of the Company, other than as permitted under the Exchange Act.

     6.  Non-Current  Prospectus.  If the  Company  shall at any time during the
period it is obligated to keep the Registration  Statement  effective,  based on
the advice of its counsel,  conclude that the prospectus  constituting Part I of
the  Registration  Statement no longer  complies  with  Section  10(a)(3) of the
Securities  Act, the Company  shall  promptly  notify the Holder to cease use of
such prospectus and shall promptly take actions either to amend the Registration
Statement or to supplement  the  prospectus  so that the Holder will  thereafter
have a prospectus  complying  with  Section  10(a)(3) of the  Securities  Act to
resell the Holder's shares of the Shares.  The Holder shall, upon receipt of the
foregoing  notice from the Company,  forthwith  discontinue  disposition  of the
shares  of  the  Shares  offered  by the  Holder  pursuant  to the  Registration
Statement  until  receipt of copies of the  supplemented  or amended  prospectus
complying with Section 10(a)(3) of the Securities Act.

     7. Change in  Distribution.  At least five (5)  Business  Days prior to any
disposition  of the  Holder's  shares  (other than  pursuant to an  underwritten
offering)  by  the  Holder,  if  the  Holder  intends  to  change  its  plan  of
distribution from that described in the Registration Statement,  the Holder will
orally advise the Company (and  promptly  confirm such advice in writing) of the
change in the plan of distribution,  with such other  information as the Company
may reasonably request in order to supplement the prospectus constituting Part I
of the  Registration  Statement in accordance  with the rules and regulations of
the SEC.  Promptly after receiving such advice,  the Company will, if necessary,
prepare a supplement to the prospectus  based upon such advice and file the same
with the SEC pursuant to Rule 424(b) under the Securities Act.

     8.  Underwritten  Offering.  If  the  Registration  Statement  involves  an
underwritten public offering, then (a) the Company shall enter into, and perform
its obligations under, an underwriting  agreement,  in usual and customary form,
with the managing  underwriter  and (b) each Holder  shall also enter into,  and
perform its obligations under, the underwriting agreement.

     9. Indemnification

     (a)  Indemnification  by the Company.  The Company shall indemnify and hold
harmless,  to the full extent permitted by law, the Holders and their respective
directors and officers (if applicable) and each person, if any, who controls the
Holders or the  underwriter  within the meaning of Section 15 of the  Securities
Act or Section  20(a) of the Exchange Act against any losses,  claims,  damages,
liabilities  or  expenses   (including  all  expenses   reasonably  incurred  in
investigating,  preparing for, or defending  against,  any claim  whatsoever) to
which any of them may become subject under the Securities  Act, the Exchange Act
or otherwise,  arising from the  Registration  Statement,  except insofar as the
same are caused by, or contained in, any information  with respect to any Holder
furnished in writing to the Company by such Holder expressly for use therein.

                                       3
<PAGE>

     (b)  Indemnification  By the Holder.  Each Holder shall  indemnify and hold
harmless,  to the full extent permitted by law, the Company and any underwriter,
their  respective  officers and directors and each person,  if any, who controls
the  Company  or  the  underwriter  within  the  meaning  of  Section  15 of the
Securities Act or Section 20(a) of the Exchange Act, against all losses, claims,
damages,  liabilities or expenses (including all expenses reasonably incurred in
investigating, preparing for or defending against any claim whatsoever) to which
they may become subject under the Securities Act, the Exchange Act or otherwise,
arising from information  furnished with respect to the Holder in writing to the
Company by the Holder expressly for the use therein.

     (c) Conduct of  Indemnification  Proceedings.  If any  proceeding  shall be
brought or asserted  against  any Person  entitled to  indemnity  hereunder  (an
"Indemnified  Party"),  such Indemnified  Party shall promptly notify the Person
from whom  indemnity is sought (the  "Indemnifying  Party") in writing,  and the
Indemnifying Party shall have the right to assume the defense thereof, including
the employment of counsel  reasonably  satisfactory to the Indemnified Party and
the  payment  of all fees and  expenses  incurred  in  connection  with  defense
thereof; provided, that the failure of any Indemnified Party to give such notice
shall not relieve  the  Indemnifying  Party of its  obligations  or  liabilities
pursuant to this  Agreement,  except (and only) to the extent that such  failure
shall have materially prejudiced the Indemnifying Party.

     An Indemnified Party shall have the right to employ separate counsel in any
such  proceeding  and to participate  in the defense  thereof,  but the fees and
expenses of such counsel  shall be at the expense of such  Indemnified  Party or
Parties  unless:  (i) the  Indemnifying  Party has agreed in writing to pay such
fees and expenses;  (ii) the  Indemnifying  Party shall have failed  promptly to
assume  the  defense  of  such  proceeding  and  to  employ  counsel  reasonably
satisfactory  to such  Indemnified  Party in any such  proceeding;  or (iii) the
named parties to any such Proceeding  (including any impleaded  parties) include
both such  Indemnified  Party and the  Indemnifying  Party, and such Indemnified
Party shall have been  advised by counsel  that a conflict of interest is likely
to exist if the same counsel were to represent  such  Indemnified  Party and the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense  thereof and the reasonable fees and expenses of one
separate counsel for all Indemnified Parties in any matters related on a factual
basis shall be at the expense of the Indemnifying Party). The Indemnifying Party
shall not be liable for any settlement of any such Proceeding  affected  without
its written  consent,  which  consent  shall not be  unreasonably  withheld.  No
Indemnifying  Party shall,  without the prior written consent of the Indemnified
Party,  effect any settlement of any pending  proceeding in respect of which any
Indemnified Party is a party,  unless such settlement  includes an unconditional
release of such  Indemnified  Party from all  liability  on claims  that are the
subject of such proceeding.

                                       4
<PAGE>
     All  reasonable  fees and  expenses  of the  Indemnified  Party  (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating   or  preparing  to  defend  such   proceeding  in  a  manner  not
inconsistent  with this Section 9) shall be paid to the  Indemnified  Party,  as
incurred,  within  ten (10)  Business  Days of  written  notice  thereof  to the
Indemnifying  Party;  provided,   that  the  Indemnified  Party  shall  promptly
reimburse  the  Indemnifying  Party for that  portion of such fees and  expenses
applicable to such actions for which such  Indemnified  Party is not entitled to
indemnification  hereunder,  determined  based upon the  relative  faults of the
parties.

     (d) Contribution. If for any reason the indemnification provided for in the
preceding  subsections  (a) or (b) of this  Section  9 is  held  by a  court  of
competent jurisdiction to be unavailable to an Indemnified Party with respect to
any loss,  claim,  damage,  liability or expense  referred to therein,  then the
Indemnifying  Party, in lieu of indemnifying  such Indemnified Party thereunder,
shall  contribute  to the amount paid or payable by the  Indemnified  Party as a
result  of such  loss,  claim,  damage or  liability  in such  proportion  as is
appropriate  to  reflect  not  only  the  relative   benefits  received  by  the
Indemnified Party and the Indemnifying Party, but also the relative fault of the
Indemnified  Party and the  Indemnifying  Party,  as well as any other  relevant
equitable considerations.

     10. Company Covenant.  The Company covenants that it shall file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and  regulations  adopted by the SEC thereunder so long as any Holder owns
any Registrable Securities, but in no event longer than two (2) years; provided,
however,  the Company may delay any such filing but only pursuant to Rule 12b-25
under the  Exchange  Act and shall take such  further  reasonable  action as any
Holder may reasonably request (including, without limitation, promptly obtaining
any required legal opinions from Company counsel necessary to effect the sale of
Registrable  Securities  under Rule 144 and paying the related fees and expenses
of such  counsel),  all to the extent  required from time to time to enable such
Holder to sell Registrable  Securities without registration under the Securities
Act within the limitation of the  exemptions  provided by (a) Rule 144 under the
Securities  Act,  as such  Rule may be  amended  from  time to time,  or (b) any
similar rule or regulation hereafter adopted by the SEC. Upon the request of any
Holder of  Registrable  Securities,  the Company  will  deliver to such Holder a
written statement as to whether it has complied with such requirements.

     11. Entire  Agreement.  The  Transaction  Documents  constitute  the entire
agreement of the parties with respect to the  transactions  contemplated  hereby
and supersede all prior  agreements  and  understandings  with respect  thereto,
whether written or oral.

     12. No Waiver;  Modifications in Writing. No failure or delay by a party in
exercising  any  right,  power or remedy  hereunder  shall  operate  as a waiver
thereof,  nor shall any single or partial  exercise of any such right,  power or
remedy  preclude  any other or further  exercise  thereof or the exercise of any
other right, power or remedy. Except as otherwise expressly provided herein with
respect to any right of  indemnification,  the remedies  provided for herein are
cumulative  and are not  exclusive of any remedies  that may be available to any
party at law or in equity or otherwise. No waiver of or consent to any departure
by a party from any provision of this Agreement shall be effective unless signed

                                       5
<PAGE>
in  writing  by  the  party  entitled  to the  benefit  thereof.  No  amendment,
modification  or  termination  of any  provision  of  this  Agreement  shall  be
effective unless signed in writing by all parties. Any amendment,  supplement or
modification  of or to any  provision  of  this  Agreement,  any  waiver  of any
provision of this Agreement,  and any consent to any departure from the terms of
any  provision  of this  Agreement,  shall  be  effective  only in the  specific
instance and for the specific purpose for which made or given.

     13. Notices.  All notices,  demands and other  communications  provided for
hereunder  shall be in writing,  shall be given by (a)  registered  or certified
mail,  return receipt  requested,  (b) telecopy with electronic  confirmation of
such  transmission,  (c) national  courier service or (d) personal  delivery and
shall be deemed  delivered  (a) three  Business Days after deposit with the U.S.
Postal Service, (b) the date given by electronic or e-mail delivery,  (c) on the
business  day next  following  deposit  with a  courier  service  for  overnight
delivery  with  written  confirmation  of such  delivery  or (d)  upon  personal
delivery, addressed to the parties, as follows:

                  If to the Company, to:

                           Vasomedical, Inc.
                           180 Linden Avenue
                           Westbury, NY 11590
                           Attention:  Chief Financial Officer
                           Telecopy:  (516) 997-2299
                           E-Mail: TEfstathiou@vasomedical.com

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

                           David H. Lieberman, Esq.
                           Beckman, Lieberman & Barandes, LLP
                           Suite 1313, 116 John Street
                           New York, NY 10038
                           Telecopy:  (212) 608-9687
                           E-Mail:  DLieberman@blbllp.com

                      If to Kerns or Living Data, to:
                           Kerns Manufacturing Corp.
                           37-14 29th Street
                           Long Island City, NY 11101
                           Attention: Chief Financial Officer
                           Telecopy: (718) 786-0534
                           E-Mail:  kernsmfg@optonline.net

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

                      Robert W. Berend, Esq.
                      Wachtel & Masyr, LLP
                      110 East 59th Street
                      New York NY 10022
                      Telecopy: (212)909-9455
                      E-Mail:  berend@wmllp.com

                                       6
<PAGE>
or to such other address as any party shall designate in writing in compliance
with the provisions of this Section 13.

     14. Execution in Counterparts;  Facsimile Signatures. This Agreement may be
executed  in any  number of  counterparts  and by  different  parties  hereto on
separate  counterparts,  each  of  which  counterparts,  when  so  executed  and
delivered,  shall be deemed  to be an  original  and all of which  counterparts,
taken together,  shall  constitute but one and the same  Agreement.  The parties
agree that they may rely on the facsimile signature of any party with respect to
this Agreement or any waiver, amendment, supplement or consent relating thereto,
with the same effect as if such signature was an original.

     15. Binding Effect;  Assignment.  The rights and obligations of the parties
under this  Agreement may not be assigned or otherwise  transferred to any other
person or entity, without the prior written consent of the other parties hereto.
Except as expressly  provided in this  Agreement,  this  Agreement  shall not be
construed  so as to confer any right or benefit  upon any person or entity other
than the parties to this Agreement and their respective successors and permitted
assigns.  This Agreement shall be binding upon and shall inure to the benefit of
the Company,  Kerns, Living Data and their respective  permitted  successors and
assigns.

     16.  Governing  Law. This  Agreement  shall be deemed to be a contract made
under and shall be governed by and  construed  in  accordance  with the internal
laws of the  State  of New York  without  giving  effect  to the  principles  of
conflict of laws.

     17. Consent to  Jurisdiction  and Service of Process.  Any suit,  action or
proceeding  arising  out of or relating to this  Agreement  or the  transactions
contemplated  hereby may be  instituted  in any  federal  court  situated in the
Southern or Eastern Districts of New York or any state court of the State of New
York,  in each case,  in the Borough of  Manhattan,  City of New York, or Nassau
County in the State of New York, and each party agrees not to assert,  by way of
motion, as a defense or otherwise,  in any such suit, action or proceeding,  any
claim that it is not subject  personally to the jurisdiction of such court, that
the suit,  action or proceeding is brought in an  inconvenient  forum,  that the
venue of the suit,  action or proceeding  is improper or that this  Agreement or
the subject  matter  hereof may not be enforced in or by such court.  Each party
further  irrevocably submits to the jurisdiction of such court in any such suit,
action or proceeding. Any and all service of process and any other notice in any
such suit,  action or proceeding  shall be effective  against any party if given
personally or by registered or certified mail,  return receipt requested if sent
to such party at the  address for such party set forth  herein,  or by any other
means of mail that requires a signed receipt,  postage fully prepaid,  mailed to
such  party as herein  provided.  Nothing  herein  contained  shall be deemed to
affect the right of any party to serve process in any manner permitted by law or
to commence legal  proceedings or otherwise  proceed  against any other party in
any other jurisdiction.

     18. Waiver of Jury Trial. The parties hereto hereby  irrevocably  waive all
right to a trial by jury in any action,  proceeding or counterclaim  arising out
of or relating to this Agreement or the transactions contemplated hereby.

                                       7
<PAGE>
     19. Severability of Provisions.  Any provision hereof that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render  unenforceable such provision in any
other jurisdiction. To the extent permitted by law, the parties hereto waive any
provision of law that renders any such provision  prohibited or unenforceable in
any respect.

     20.  Headings.  The  Article,  Section  and  subsection  headings  used  or
contained in this Agreement are for  convenience of reference only and shall not
affect the construction of this Agreement.

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

                               VASOMEDICAL, INC.

                               By:/s/ John C. K. Hui
                                  -------------------------------
                                   Name: John C. K. Hui
                                   Title: Chief Executive Officer

                               KERNS MANUFACTURING CORP.

                               By:/s/ Simon Srybnik
                                  ------------------------------
                                   Name: Simon Srybnik
                                   Title: Chairman of the Board

                               LIVING DATA TECHNOLOGY
                                 CORPORATION

                               By: /s/ Simon Srybnik
                                   ------------------------------
                                   Name: Simon Srybnik
                                   Title: Chairman of the Boardf8k062507ex10i_celcius.htm

    EXHIBIT
      10.1                                

    COMMON
      STOCK PURCHASE AGREEMENT

    

    COMMON
      STOCK PURCHASE
      AGREEMENT (the “Agreement”), dated as of June 22, 2007, by and between
Celsius Holdings, Inc., a Nevada corporation (the “Company”),
      and Fusion Capital Fund II, LLC, an Illinois limited liability
      company (the “Buyer”).  Capitalized terms used herein and not
      otherwise defined herein are defined in Section 10 hereof.

    

    WHEREAS:

    

    Subject
      to the terms and conditions set
      forth in this Agreement, the Company wishes to sell to the Buyer, and the Buyer
      wishes to buy from the Company, up to Sixteen Million Dollars ($16,000,000.00)
      of the Company's common stock, par value $0.001 per share (the “Common
      Stock”).  The shares of Common Stock to be purchased hereunder are
      referred to herein as the "Purchase Shares."

    

    NOW
      THEREFORE, the
      Company and the Buyer hereby agree as follows:

    

    1.           PURCHASE
      OF COMMON STOCK.

    

    Subject
      to the terms and conditions set
      forth in this Agreement, the Company has the right to sell to the Buyer, and
      the
      Buyer has the obligation to purchase from the Company, Purchase Shares as
      follows:

    

    (a)           Initial
      Purchases; Commencement of Base and Block Purchases of Common
      Stock.  Within one Business Day after the execution of this
      Agreement, the Buyer shall purchase from the Company 2,057,194 Purchase Shares
      and upon receipt of such Purchase Shares pay to the Company as the purchase
      price therefor, via wire transfer, Five Hundred Thousand Dollars ($500,000.00)
      (such purchase an “Initial Purchase” and such Purchase Shares are referred to
      herein as “Initial Purchase Shares”).  Upon issuance and payment
      therefor as provided herein, such 2,057,194 Initial Purchase Shares shall be,
      validly issued and are fully paid and nonassessable.  In addition, on
      the Filing Date (as defined in Section 4(a) hereof), the Buyer shall purchase
      from the Company 1,111,111 additional Purchase Shares and upon receipt of such
      Purchase Shares pay to the Company as the purchase price therefor, via wire
      transfer, Five Hundred Thousand Dollars ($500,000.00) (such purchase an “Initial
      Purchase” and such Purchase Shares are referred to herein as “Initial Purchase
      Shares”).  Upon issuance and payment therefor as provided herein, such
      1,111,111 Initial Purchase Shares shall be, validly issued and are fully paid
      and nonassessable.  The two Initial Purchases hereunder shall be One
      Million Dollars ($1,000,000.00) in aggregate and the Buyer shall receive
      3,168,305 shares in the aggregate relating to the two Initial Purchases.
      The Initial Purchase Shares shall be issued in
      certificated form and (subject to Section 5 hereof) shall bear only the
      restrictive legend set forth in Section 4(e) hereof. Thereafter, the purchase
      and sale of Purchase Shares hereunder shall occur from time to time upon written
      notices by the Company to the Buyer on the terms and conditions as set forth
      herein following the satisfaction of the conditions (the “Commencement”) as set
      forth in Sections 6 and 7 below  (the date of satisfaction of such
      conditions, the "Commencement Date").

    

    (b)           The
      Company’s Right to Require Purchases.  Any time on or after the
      Commencement Date, the Company shall have the right but not the obligation
      to
      direct the Buyer by its delivery to the Buyer of Base Purchase Notices from
      time
      to time to buy Purchase Shares (each such purchase a “Base Purchase”) in any
      amount up to One Hundred Thousand Dollars ($100,000.00) per Base Purchase Notice
      (the “Base Purchase Amount”) at the Purchase Price on the Purchase
      Date.

     

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

     

    The
      Company may deliver multiple Base Purchase Notices to the Buyer so long as
      at
      least three (3) Business Days have passed since the most recent Base Purchase
      was completed.  Notwithstanding the forgoing, any time on or after the
      Commencement Date, the Company shall also have the right but not the obligation
      by its delivery to the Buyer of Block Purchase Notices from time to time to
      direct the Buyer to buy Purchase Shares (each such purchase a “Block Purchase”)
      in any amount up to One Million Dollars ($1,000,000.00) per Block Purchase
      Notice at the Block Purchase Price on the Purchase Date as provided
      herein.  For a Block Purchase Notice to be valid the following
      conditions must be met: (1) the Block Purchase Amount shall not exceed One
      Hundred Thousand Dollars ($100,000.00) per Block Purchase Notice, (2) the
      Company must deliver the Purchase Shares before 11:00 a.m. eastern time on
      the
      Purchase Date and (3) the Sale Price of the Common Stock must not be below
      $0.50
      (subject to equitable adjustment for any reorganization, recapitalization,
      non-cash dividend, stock split or other similar transaction) during the Purchase
      Date, the date of the delivery of the Block Purchase Notice and during the
      Business Day prior to the delivery of the Block Purchase Notice.  The
      Block Purchase Amount may be increased to up to Two Hundred Fifty Thousand
      Dollars ($250,000.00) per Block Purchase Notice if the Sale Price of the Common
      Stock is not below $0.75 (subject to equitable adjustment for any
      reorganization, recapitalization, non-cash dividend, stock split or other
      similar transaction) during the Purchase Date, the date of the delivery of
      the
      Block Purchase Notice and during the Business Day prior to the delivery of
      the
      Block Purchase Notice.  The Block Purchase Amount may be increased to
      up to Five Hundred Thousand Dollars ($500,000.00) per Block Purchase Notice
      if
      the Sale Price of the Common Stock is not below $1.50 (subject to equitable
      adjustment for any reorganization, recapitalization, non-cash dividend, stock
      split or other similar transaction) during the Purchase Date, the date of the
      delivery of the Block Purchase Notice and during the Business Day prior to
      the
      delivery of the Block Purchase Notice.  The Block Purchase Amount may
      be increased to up to One Million Dollars ($1,000,000.00) per Block Purchase
      Notice if the Sale Price of the Common Stock is not below $3.00 (subject to
      equitable adjustment for any reorganization, recapitalization, non-cash
      dividend, stock split or other similar transaction) during the Purchase Date,
      the date of the delivery of the Block Purchase Notice and during the Business
      Day prior to the delivery of the Block Purchase Notice.  As used
      herein, the term “Block Purchase Price” shall mean the lesser of (i) the lowest
      Sale Price of the Common Stock on the Purchase Date or (ii) the lowest Purchase
      Price during the previous ten  (10) Business Days prior to the date
      that the valid Block Purchase Notice was received by the
      Buyer.  However, if at any time during the Purchase Date, the date of
      the delivery of the Block Purchase Notice or during the Business Day prior
      to
      the delivery of the Block Purchase Notice, the Sale Price of the Common Stock
      is
      below the applicable Block Purchase threshold price, such Block Purchase shall
      be void and the Buyer’s obligations to buy Purchase Shares in respect of that
      Block Purchase Notice shall be terminated.  Thereafter, the Company
      shall again have the right to submit a Block Purchase Notice as set forth herein
      by delivery of a new Block Purchase Notice only if the Sale Price of the Common
      Stock is above the applicable Block Purchase threshold price during the date
      of
      the delivery of the Block Purchase Notice and during the Business Day prior
      to
      the delivery of the Block Purchase Notice.  The Company may deliver
      multiple Block Purchase Notices to the Buyer so long as at least two (2)
      Business Days have passed since the most recent Block Purchase was
      completed.

    

    (c)           Payment
      for Purchase Shares.  The Buyer shall pay to the Company an amount
      equal to the Purchase Amount with respect to such Purchase Shares as full
      payment for such Purchase Shares via wire transfer of immediately available
      funds on the same Business Day that the Buyer receives such Purchase Shares
      if
      they are received by the Buyer before 11:00 a.m. eastern time or if received
      by
      the Buyer after 11:00 a.m. eastern time, the next Business Day.  The
      Company shall not issue any fraction of a share of Common Stock upon any
      purchase.  If the issuance would result in the issuance of a fraction
      of a share of Common Stock, the Company shall round such fraction of a share
      of
      Common Stock up or down to the nearest whole share.

     

     

    
      
         

      

      
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    All
      payments made under this Agreement shall be made in lawful money of the United
      States of America or wire transfer of immediately available funds to such
      account as the Company may from time to time designate by written notice in
      accordance with the provisions of this Agreement.  Whenever any amount
      expressed to be due by the terms of this Agreement is due on any day that is
      not
      a Business Day, the same shall instead be due on the next succeeding day that
      is
      a Business Day.

    

    (d)           Purchase
      Price Floor.  The Company and the Buyer shall not effect any sales
      under this Agreement on any Purchase Date where the Purchase Price for any
      purchases of Purchase Shares would be less than the Floor
      Price.   “Floor Price” means $0.45, which shall
      be
      appropriately adjusted for any reorganization, recapitalization, non-cash
      dividend, stock split or other similar transaction.

    

    (e)           Records
      of Purchases.  The Buyer and the Company shall each maintain
      records showing the remaining Available Amount at any give time and the dates
      and Purchase Amounts for each purchase or shall use such other method,
      reasonably satisfactory to the Buyer and the Company.

    

    (f)           Taxes.  The
      Company shall pay any and all transfer, stamp or similar taxes that may be
      payable with respect to the issuance and delivery of any shares of Common Stock
      to the Buyer made under this Agreement.

     

    2.           BUYER'S
      REPRESENTATIONS AND WARRANTIES.

    

    The
      Buyer
      represents and warrants to the Company that as of the date hereof and as of
      the
      Commencement Date:

    

    (a)           Investment
      Purpose.  The Buyer is entering into this Agreement and acquiring
      the Securities (the Purchase Shares and the Signing Shares (as defined in
      Section 5 hereof) are collectively referred to herein as the "Securities"),
      for
      its own account for investment only and not with a view towards, or for resale
      in connection with, the public sale or distribution thereof; provided however,
      by making the representations herein, the Buyer does not agree to hold any
      of
      the Securities for any minimum or other specific term.

    

    (b)           Accredited
      Investor Status.  The Buyer is an "accredited investor" as that
      term is defined in Rule 501(a)(3) of Regulation D.

    

    (c)           Reliance
      on Exemptions.  The Buyer understands that the Securities are
      being offered and sold to it in reliance on specific exemptions from the
      registration requirements of United States federal and state securities laws
      and
      that the Company is relying in part upon the truth and accuracy of, and the
      Buyer's compliance with, the representations, warranties, agreements,
      acknowledgments and understandings of the Buyer set forth herein in order to
      determine the availability of such exemptions and the eligibility of the Buyer
      to acquire the Securities.

    

    (d)           Information.  The
      Buyer has been furnished with all materials relating to the business, finances
      and operations of the Company and materials relating to the offer and sale
      of
      the Securities that have been reasonably requested by the Buyer, including,
      without limitation, the SEC Documents (as defined in Section 3(f)
      hereof).  The Buyer understands that its investment in the Securities
      involves a high degree of risk.

     

     

     

    
      
         

      

      
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    The
      Buyer
      (i) is able to bear the economic risk of an investment in the Securities
      including a total loss, (ii) has such knowledge and experience in financial
      and
      business matters that it is capable of evaluating the merits and risks of the
      proposed investment in the Securities and (iii) has had an opportunity to ask
      questions of and receive answers from the officers of the Company concerning
      the
      financial condition and business of the Company and others matters related
      to an
      investment in the Securities.  Neither such inquiries nor any other
      due diligence investigations conducted by the Buyer or its representatives
      shall
      modify, amend or affect the Buyer's right to rely on the Company's
      representations and warranties contained in Section 3 below.  The
      Buyer has sought such accounting, legal and tax advice as it has considered
      necessary to make an informed investment decision with respect to its
      acquisition of the Securities.

    

    (e)           No
      Governmental Review.  The Buyer understands that no United States
      federal or state agency or any other government or governmental agency has
      passed on or made any recommendation or endorsement of the Securities or the
      fairness or suitability of the investment in the Securities nor have such
      authorities passed upon or endorsed the merits of the offering of the
      Securities.

    

    (f)           Transfer
      or Sale.  The Buyer understands that except as provided in the
      Registration Rights Agreement (as defined in Section 4(a) hereof): (i) the
      Securities have not been and are not being registered under the 1933 Act or
      any
      state securities laws, and may not be offered for sale, sold, assigned or
      transferred unless (A) subsequently registered thereunder or (B) an exemption
      exists permitting such Securities to be sold, assigned or transferred without
      such registration; (ii) any sale of the Securities made in reliance on Rule
      144
      may be made only in accordance with the terms of Rule 144 and further, if Rule
      144 is not applicable, any resale of the  Securities under
      circumstances in which the seller (or the person through whom the sale is made)
      may be deemed to be an underwriter (as that term is defined in the 1933 Act)
      may
      require compliance with some other exemption under the 1933 Act or the rules
      and
      regulations of the SEC thereunder; and (iii) neither the Company nor any other
      person is under any obligation to register the Securities under the 1933 Act
      or
      any state securities laws or to comply with the terms and conditions of any
      exemption thereunder.

    

    (g)           Validity;
      Enforcement.  This Agreement has been duly and validly authorized,
      executed and delivered on behalf of the Buyer and is a valid and binding
      agreement of the Buyer enforceable against the Buyer in accordance with its
      terms, subject as to enforceability to general principles of equity and to
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      and
      other similar laws relating to, or affecting generally, the enforcement of
      applicable creditors' rights and remedies.

    

    (h)           Residency.  The
      Buyer is a resident of the State of Illinois.

    

    (i)           No
      Prior Short Selling.  The Buyer represents and warrants to the
      Company that at no time prior to the date of this Agreement has any of the
      Buyer, its agents, representatives or affiliates engaged in or effected, in
      any
      manner whatsoever, directly or indirectly, any (i) "short sale" (as such term
      is
      defined in Section 242.200 of Regulation SHO of the Securities Exchange Act
      of
      1934, as amended (the "1934 Act")) of the Common Stock or (ii) hedging
      transaction, which establishes a net short position with respect to the Common
      Stock.

    

    

    3.           REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

    

    The
      Company represents and warrants to the Buyer that as of the date hereof and
      as
      of the Commencement Date:

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
 

    (a)           Organization
      and Qualification.  The Company and its "Subsidiaries" (which for
      purposes of this Agreement means any entity in which the Company, directly
      or
      indirectly, owns 50% or more of the voting stock or capital stock or other
      similar equity interests) are corporations duly organized and validly existing
      in good standing under the laws of the jurisdiction in which they are
      incorporated, and have the requisite corporate power and authority to own their
      properties and to carry on their business as now being
      conducted.  Each of the Company and its Subsidiaries is duly qualified
      as a foreign corporation to do business and is in good standing in every
      jurisdiction in which its ownership of property or the nature of the business
      conducted by it makes such qualification necessary, except to the extent that
      the failure to be so qualified or be in good standing could not reasonably
      be
      expected to have a Material Adverse Effect.  As used in this
      Agreement, "Material Adverse Effect" means any material adverse effect on any
      of: (i) the business, properties, assets, operations, results of operations
      or
      financial condition of the Company and its Subsidiaries, if any, taken as a
      whole, or (ii) the authority or ability of the Company to perform its
      obligations under the Transaction Documents (as defined in Section 3(b)
      hereof).  The Company has no Subsidiaries except as set forth on
      Schedule 3(a).

    

    (b)           Authorization;
      Enforcement; Validity.  (i) The Company has the requisite
      corporate power and authority to enter into and perform its obligations under
      this Agreement, the Registration Rights Agreement  and each of the
      other agreements entered into by the parties on the Commencement Date and
      attached hereto as exhibits to this Agreement (collectively, the "Transaction
      Documents"), and to issue the Securities in accordance with the terms hereof
      and
      thereof, (ii) the execution and delivery of the Transaction Documents by the
      Company and the consummation by it of the transactions contemplated hereby
      and
      thereby, including without limitation, the issuance of the Initial Purchase
      Shares and the reservation for issuance and the issuance of additional Purchase
      Shares issuable under this Agreement, have been duly authorized by the Company's
      Board of Directors and no further consent or authorization is required by the
      Company, its Board of Directors or its shareholders, (iii) this Agreement has
      been, and each other Transaction Document shall be on the Commencement Date,
      duly executed and delivered by the Company and (iv) this Agreement constitutes,
      and each other Transaction Document upon its execution on behalf of the Company,
      shall constitute, the valid and binding obligations of the Company enforceable
      against the Company in accordance with their terms, except as such
      enforceability may be limited by general principles of equity or applicable
      bankruptcy, insolvency, reorganization, moratorium, liquidation or similar
      laws
      relating to, or affecting generally, the enforcement of creditors' rights and
      remedies.  The Board of Directors of the Company has approved the
      resolutions (the “Signing Resolutions”) substantially in the form as set forth
      as Exhibit C-1 attached hereto to authorize this Agreement and the
      transactions contemplated hereby.  The Signing Resolutions are valid,
      in full force and effect and have not been modified or supplemented in any
      respect other than by the resolutions set forth in Exhibit C-2 attached
      hereto regarding the registration statement referred to in Section 4
      hereof.  The Company has delivered to the Buyer a true and correct
      copy of a unanimous written consent adopting the Signing Resolutions executed
      by
      all of the members of the Board of Directors of the Company.  No other
      approvals or consents of the Company’s Board of Directors and/or shareholders is
      necessary under applicable laws and the Company’s Certificate of Incorporation
      and/or Bylaws to authorize the execution and delivery of this Agreement or
      any
      of the transactions contemplated hereby, including, but not limited to, the
      issuance of the Initial Purchase Shares and the issuance of any additional
      Purchase Shares.

    

    (c)           Capitalization.
       As of the date
      hereof, the authorized capital stock of the Company consists of (i) 350,000,000
      shares of Common Stock, of which as of the date hereof,
      101,266,558  shares are issued and outstanding, none are held as
      treasury shares,  16,046,956 shares are reserved for issuance pursuant
      to the Company's stock option plans of which only approximately 5,275,518 shares
      remain available for future grants and no shares are issuable and reserved
      for
      issuance pursuant to securities (other than stock options issued pursuant to
      the
      Company's stock option plans) exercisable or exchangeable for, or convertible
      into, shares of Common Stock and (ii) 50,000,000 shares of Preferred Stock,
      $0.001 par value with a $no per share liquidation preference, of which as of
      the
      date hereof no shares are issued and outstanding and no other Preferred Stock
      is
      outstanding.

     

     

     

    
      
         

      

      
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    All
      of
      such outstanding shares have been, or upon issuance will be, validly issued
      and
      are fully paid and nonassessable.  Except as disclosed in Schedule
      3(c), (i) no shares of the Company's capital stock are subject to preemptive
      rights or any other similar rights or any liens or encumbrances suffered or
      permitted by the Company, (ii) there are no outstanding debt securities, (iii)
      there are no outstanding options, warrants, scrip, rights to subscribe to,
      calls
      or commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company or any of its
      Subsidiaries, or contracts, commitments, understandings or arrangements by
      which
      the Company or any of its Subsidiaries is or may become bound to issue
      additional shares of capital stock of the Company or any of its Subsidiaries
      or
      options, warrants, scrip, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities or rights convertible into,
      any
      shares of capital stock of the Company or any of its Subsidiaries, (iv) there
      are no agreements or arrangements under which the Company or any of its
      Subsidiaries is obligated to register the sale of any of their securities under
      the 1933 Act (except the Registration Rights Agreement and except for agreements
      disclosed in Schedule 3 (c)), (v) there are no outstanding securities or
      instruments of the Company or any of its Subsidiaries which contain any
      redemption or similar provisions, and there are no contracts, commitments,
      understandings or arrangements by which the Company or any of its Subsidiaries
      is or may become bound to redeem a security of the Company or any of its
      Subsidiaries, (vi) there are no securities or instruments containing
      anti-dilution or similar provisions that will be triggered by the issuance
      of
      the Securities as described in this Agreement and (vii) the Company does not
      have any stock appreciation rights or "phantom stock" plans or agreements or
      any
      similar plan or agreement.  The Company has furnished to the Buyer
      true and correct copies of the Company's Certificate of Incorporation, as
      amended and as in effect on the date hereof (the "Certificate of
      Incorporation"), and the Company's By-laws, as amended and as in effect on
      the
      date hereof (the "By-laws"), and summaries of the terms of all securities
      convertible into or exercisable for Common Stock, if any, and copies of any
      documents containing the material rights of the holders thereof in respect
      thereto.

    

    (d)           Issuance
      of Securities.  The 3,168,305 Initial Purchase Shares have been
      duly authorized and, upon issuance in accordance with the terms hereof, the
      Initial Purchase Shares shall be (i) validly issued, fully paid and
      non-assessable and (ii) free from all taxes, liens and charges with respect
      to
      the issue thereof. 10,000,000 shares of Common Stock have been duly authorized
      and reserved for issuance upon purchase under this Agreement after the
      Commencement.  Upon issuance and payment therefor in accordance with
      the terms and conditions of this Agreement, the Purchase Shares shall be validly
      issued, fully paid and nonassessable and free from all taxes, liens and charges
      with respect to the issue thereof, with the holders being entitled to all rights
      accorded to a holder of Common Stock.

    

    (e)           No
      Conflicts.  Except as disclosed in Schedule 3(e), the execution,
      delivery and performance of the Transaction Documents by the Company and the
      consummation by the Company of the transactions contemplated hereby and thereby
      (including, without limitation, the reservation for issuance and issuance of
      the
      Purchase Shares) will not (i) result in a violation of the Certificate of
      Incorporation, any Certificate of Designations, Preferences and Rights of any
      outstanding series of preferred stock of the Company or the By-laws or (ii)
      conflict with, or constitute a default (or an event which with notice or lapse
      of time or both would become a default) under, or give to others any rights
      of
      termination, amendment, acceleration or cancellation of, any agreement,
      indenture or instrument to which the Company or any of its Subsidiaries is
      a
      party, or result in a violation of any law, rule, regulation, order, judgment
      or
      decree (including federal and state securities laws and regulations and the
      rules and regulations of the Principal Market applicable to the Company or
      any
      of its Subsidiaries) or by which any property or asset of the Company or any
      of
      its Subsidiaries is bound or affected, except in the case of conflicts,
      defaults, terminations, amendments, accelerations, cancellations and violations
      under clause (ii), which could not reasonably be expected to result in a
      Material Adverse Effect.

     

     

    
      
         

      

      
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    Except
      as
      disclosed in Schedule 3(e), neither the Company nor its Subsidiaries is in
      violation of any term of or in default under its Certificate of Incorporation,
      any Certificate of Designation, Preferences and Rights of any outstanding series
      of preferred stock of the Company or By-laws or their organizational charter
      or
      by-laws, respectively.  Except as disclosed in Schedule 3(e), neither
      the Company nor any of its Subsidiaries is in violation of any term of or is
      in
      default under any material contract, agreement, mortgage, indebtedness,
      indenture, instrument, judgment, decree or order or any statute, rule or
      regulation applicable to the Company or its Subsidiaries, except for possible
      conflicts, defaults, terminations or amendments which could not reasonably
      be
      expected to have a Material Adverse Effect.  The business of the
      Company and its Subsidiaries is not being conducted, and shall not be conducted,
      in violation of any law, ordinance, regulation of any governmental entity,
      except for possible violations, the sanctions for which either individually
      or
      in the aggregate could not reasonably be expected to have a Material Adverse
      Effect.  Except as specifically contemplated by this Agreement and as
      required under the 1933 Act or applicable state securities laws, the Company
      is
      not required to obtain any consent, authorization or order of, or make any
      filing or registration with, any court or governmental agency or any regulatory
      or self-regulatory agency in order for it to execute, deliver or perform any
      of
      its obligations under or contemplated by the Transaction Documents in accordance
      with the terms hereof or thereof.  Except as disclosed in Schedule
      3(e), all consents, authorizations, orders, filings and registrations which
      the
      Company is required to obtain pursuant to the preceding sentence shall be
      obtained or effected on or prior to the Commencement Date.  Except as
      listed in Schedule 3(e), since January 1, 2006, the Company has not received
      nor
      delivered any notices or correspondence from or to the Principal
      Market.  The Principal Market has not commenced any delisting
      proceedings against the Company.

    

    (f)           SEC
      Documents; Financial Statements. Except as disclosed in Schedule 3(f), since
      January 1, 2006, the Company has timely filed all reports, schedules, forms,
      statements and other documents required to be filed by it with the SEC pursuant
      to the reporting requirements of the 1934 Act (all of the foregoing filed prior
      to the date hereof and all exhibits included therein and financial statements
      and schedules thereto and documents incorporated by reference therein being
      hereinafter referred to as the "SEC Documents").  As of their
      respective dates (except as they have been correctly amended), the SEC Documents
      complied in all material respects with the requirements of the 1934 Act and
      the
      rules and regulations of the SEC promulgated thereunder applicable to the SEC
      Documents, and none of the SEC Documents, at the time they were filed with
      the
      SEC (except as they may have been properly amended), contained any untrue
      statement of a material fact or omitted to state a material fact required to
      be
      stated therein or necessary in order to make the statements therein, in light
      of
      the circumstances under which they were made, not misleading.  As of
      their respective dates (except as they have been properly amended), the
      financial statements of the Company included in the SEC Documents complied
      as to
      form in all material respects with applicable accounting requirements and the
      published rules and regulations of the SEC with respect thereto.  Such
      financial statements have been prepared in accordance with generally accepted
      accounting principles, consistently applied, during the periods involved (except
      (i) as may be otherwise indicated in such financial statements or the notes
      thereto or (ii) in the case of unaudited interim statements, to the extent
      they
      may exclude footnotes or may be condensed or summary statements) and fairly
      present in all material respects the financial position of the Company as of
      the
      dates thereof and the results of its operations and cash flows for the periods
      then ended (subject, in the case of unaudited statements, to normal year-end
      audit adjustments).  Except as listed in Schedule 3(f), the Company
      has received no notices or correspondence from the SEC since January 1,
      2006.  The SEC has not commenced any enforcement
      proceedings against the Company or any of its subsidiaries.

     

     

    
      
         

      

      
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    (g)           Absence
      of Certain Changes.  Except as disclosed in Schedule 3(g), since
      March 31, 2007, there has been no material adverse change in the business,
      properties, operations, financial condition or results of operations of the
      Company or its Subsidiaries.  The Company has not taken any steps, and
      does not currently expect to take any steps, to seek protection pursuant to
      any
      Bankruptcy Law nor does the Company or any of its Subsidiaries have any
      knowledge or reason to believe that its creditors intend to initiate involuntary
      bankruptcy or insolvency proceedings.  The
      Company is financially solvent and is generally able to pay its debts as they
      become due.

    

    (h)           Absence
      of Litigation. There is no action, suit, proceeding, inquiry or
      investigation before or by any court, public board, government agency,
      self-regulatory organization or body pending or, to the knowledge of the Company
      or any of its Subsidiaries, threatened against or affecting the Company, the
      Common Stock or any of the Company's Subsidiaries or any of the Company's or
      the
      Company's Subsidiaries' officers or directors in their capacities as such,
      which
      could reasonably be expected to have a Material Adverse
      Effect.   A description of each action, suit, proceeding, inquiry
      or investigation before or by any court, public board, government agency,
      self-regulatory organization or body which, as of the date of this Agreement,
      is
      pending or threatened in writing against or affecting the Company, the Common
      Stock or any of the Company's Subsidiaries or any of the Company's or the
      Company's Subsidiaries' officers or directors in their capacities as such,
      is
      set forth in Schedule 3(h).

    

    (i)           Acknowledgment
      Regarding Buyer's Status.  The Company acknowledges and agrees
      that the Buyer is acting solely in the capacity of arm's length purchaser with
      respect to the Transaction Documents and the transactions contemplated hereby
      and thereby.  The Company further acknowledges that the Buyer is not
      acting as a financial advisor or fiduciary of the Company (or in any similar
      capacity) with respect to the Transaction Documents and the transactions
      contemplated hereby and thereby and any advice given by the Buyer or any of
      its
      representatives or agents in connection with the Transaction Documents and
      the
      transactions contemplated hereby and thereby is merely incidental to the Buyer's
      purchase of the Securities.  The Company further represents to the
      Buyer that the Company's decision to enter into the Transaction Documents has
      been based solely on the independent evaluation by the Company and its
      representatives and advisors.

    

    (j)           No
      General Solicitation.  Neither the Company, nor any of its
      affiliates, nor any person acting on its or their behalf, has engaged in any
      form of general solicitation or general advertising (within the meaning of
      Regulation D under the 1933 Act) in connection with the offer or sale of the
      Securities.

    

     (k)           Intellectual
      Property Rights.  The Company and its Subsidiaries own or possess
      adequate rights or licenses to use all material trademarks, trade names, service
      marks, service mark registrations, service names, patents, patent rights,
      copyrights, inventions, licenses, approvals, governmental authorizations, trade
      secrets and rights necessary to conduct their respective businesses as now
      conducted.  Except as set forth on Schedule 3(k), none of the
      Company's material trademarks, trade names, service marks, service mark
      registrations, service names, patents, patent rights, copyrights, inventions,
      licenses, approvals, government authorizations, trade secrets or other
      intellectual property rights have expired or terminated, or, by the terms and
      conditions thereof, could expire or terminate within two years from the date
      of
      this Agreement.  The Company and its Subsidiaries do not have any
      knowledge of any infringement by the Company or its Subsidiaries of any material
      trademark, trade name rights, patents, patent rights, copyrights, inventions,
      licenses, service names, service marks, service mark registrations, trade secret
      or other similar rights of others, or of any such development of similar or
      identical trade secrets or technical information by others and, except as set
      forth on Schedule 3(k), there is no claim, action or proceeding being made
      or
      brought against, or to the Company's knowledge, being threatened against, the
      Company or its Subsidiaries regarding trademark, trade name, patents, patent
      rights, invention, copyright, license, service names, service marks, service
      mark registrations, trade secret or other infringement, which could reasonably
      be expected to have a Material Adverse Effect.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
 

    (l)           Environmental
      Laws.  The Company and its Subsidiaries (i) are in compliance with
      any and all applicable foreign, federal, state and local laws and regulations
      relating to the protection of human health and safety, the environment or
      hazardous or toxic substances or wastes, pollutants or contaminants
      (“Environmental Laws”), (ii) have received all permits, licenses or other
      approvals required of them under applicable Environmental Laws to conduct their
      respective businesses and (iii) are in compliance with all terms and conditions
      of any such permit, license or approval, except where, in each of the three
      foregoing clauses, the failure to so comply could not reasonably be expected
      to
      have, individually or in the aggregate, a Material Adverse Effect.

    

    (m)           Title.  The
      Company and its Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and marketable title to all personal property owned
      by
      them which is material to the business of the Company and its Subsidiaries,
      in
      each case free and clear of all liens, encumbrances and defects except such
      as
      are described in Schedule 3(m) or such as do not materially affect the value
      of
      such property and do not interfere with the use made and proposed to be made
      of
      such property by the Company and any of its Subsidiaries.  Any real
      property and facilities held under lease by the Company and any of its
      Subsidiaries are held by them under valid, subsisting and enforceable leases
      with such exceptions as are not material and do not interfere with the use
      made
      and proposed to be made of such property and buildings by the Company and its
      Subsidiaries.

    

    (n)           Insurance.  The
      Company and each of its Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its Subsidiaries are engaged.  Neither the
      Company nor any such Subsidiary has been refused any insurance coverage sought
      or applied for and neither the Company nor any such Subsidiary has any reason
      to
      believe that it will not be able to renew its existing insurance coverage as
      and
      when such coverage expires or to obtain similar coverage from similar insurers
      as may be necessary to continue its business at a cost that would not materially
      and adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its Subsidiaries, taken as a
      whole.

    

    (o)           Regulatory
      Permits.  The Company and its Subsidiaries possess all material
      certificates, authorizations and permits issued by the appropriate federal,
      state or foreign regulatory authorities necessary to conduct their respective
      businesses, and neither the Company nor any such Subsidiary has received any
      notice of proceedings relating to the revocation or modification of any such
      certificate, authorization or permit.

    

    (p)           Tax
      Status.  The Company and each of its Subsidiaries has made or
      filed all federal and state income and all other material tax returns, reports
      and declarations required by any jurisdiction to which it is subject (unless
      and
      only to the extent that the Company and each of its Subsidiaries has set aside
      on its books provisions reasonably adequate for the payment of all unpaid and
      unreported taxes) and has paid all taxes and other governmental assessments
      and
      charges that are material in amount, shown or determined to be due on such
      returns, reports and declarations, except those being contested in good faith
      and has set aside on its books provision reasonably adequate for the payment
      of
      all taxes for periods subsequent to the periods to which such returns, reports
      or declarations apply.  There are no unpaid taxes in any material
      amount claimed to be due by the taxing authority of any jurisdiction, and the
      officers of the Company know of no basis for any such claim.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
 

    (q)           Transactions
      With Affiliates.  Except as set forth on Schedule 3(q) and other
      than the grant or exercise of stock options disclosed on Schedule 3(c), none
      of
      the officers, directors, or employees of the Company is presently a party to
      any
      transaction with the Company or any of its Subsidiaries (other than for services
      as employees, officers and directors), including any contract, agreement or
      other arrangement providing for the furnishing of services to or by, providing
      for rental of real or personal property to or from, or otherwise requiring
      payments to or from any officer, director or such employee or, to the knowledge
      of the Company, any corporation, partnership, trust or other entity in which
      any
      officer, director, or any such employee has an interest or is an officer,
      director, trustee or partner.

    

    (r)           Application
      of Takeover Protections.  The Company and its board of directors
      have taken or will take prior to the Commencement Date all necessary action,
      if
      any, in order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Certificate of Incorporation
      or the laws of the state of its incorporation which is or could become
      applicable to the Buyer as a result of the transactions contemplated by this
      Agreement, including, without limitation, the Company's issuance of the
      Securities and the Buyer's ownership of the Securities.

    

    (s)           Foreign
      Corrupt Practices.  Neither the Company, nor any of its
      Subsidiaries, nor any director, officer, agent, employee or other person acting
      on behalf of the Company or any of its Subsidiaries has, in the course of its
      actions for, or on behalf of, the Company, used any corporate funds for any
      unlawful contribution, gift, entertainment or other unlawful expenses relating
      to political activity; made any direct or indirect unlawful payment to any
      foreign or domestic government official or employee from corporate funds;
      violated or is in violation of any provision of the U.S. Foreign Corrupt
      Practices Act of 1977, as amended; or made any unlawful bribe, rebate, payoff,
      influence payment, kickback or other unlawful payment to any foreign or domestic
      government official or employee.

    

    

    4.           COVENANTS.

    

    (a)           Filing
      of Form 8-K and Registration Statement.  Subject to the Buyer’s
      prior approval, the Company agrees that it shall, within the time required
      under
      the 1934 Act file a Report on Form 8-K disclosing this Agreement and the
      transaction contemplated hereby.  The Company shall also file within
      ten (10) Business Days (the “Filing Date”) from the date hereof a new
      registration statement covering  the sale of the 3,168,305 Initial
      Purchase Shares, the 25,000 Signing Shares and an additional 10,000,000 Purchase
      Shares (which does not include the 3,168,305 Initial Purchase Shares) in
      accordance with the terms of the Registration Rights Agreement between the
      Company and the Buyer, dated as of the date hereof (“Registration Rights
      Agreement”).

    

    (b)           Blue
      Sky. The Company shall take such action, if any, as is reasonably necessary
      in order to obtain an exemption for or to qualify (i) the sales of any Purchase
      Shares to the Buyer under this Agreement and (ii) any subsequent sales of any
      Purchase Shares by the Buyer, in each case, under applicable securities or
      "Blue
      Sky" laws of the states of the United States in such states as is reasonably
      requested by the Buyer from time to time, and shall provide evidence of any
      such
      action so taken to the Buyer.

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
 

    (c)           Listing.  The
      Company shall promptly secure the listing of all of the Purchase Shares and
      the
      Signing Shares upon each national securities exchange and automated quotation
      system, if any, upon which shares of Common Stock are then listed (subject
      to
      official notice of issuance) and shall maintain, so long as any other shares
      of
      Common Stock shall be so listed, such listing of all such securities from time
      to time issuable under the terms of the Transaction Documents.  The
      Company shall maintain the Common Stock's authorization for quotation on the
      Principal Market.  Neither the Company nor any of its Subsidiaries
      shall take any action that would be reasonably expected to result in the
      delisting or suspension of the Common Stock on the Principal
      Market.  The Company shall promptly, and in no event later than the
      following Business Day, provide to the Buyer copies of any notices it receives
      from the Principal Market regarding the continued eligibility of the Common
      Stock for listing on such automated quotation system or securities
      exchange.  The Company shall pay all fees and expenses in connection
      with satisfying its obligations under this Section.

    

    (d)           Limitation
      on Short Sales and Hedging Transactions.  The Buyer agrees that
      beginning on the date of this Agreement and ending on the date of termination
      of
      this Agreement as provided in Section 11(k), the Buyer and its agents,
      representatives and affiliates shall not in any manner whatsoever enter into
      or
      effect, directly or indirectly, any (i) "short sale" (as such term is defined
      in
      Section 242.200 of Regulation SHO of the 1934 Act) of the Common Stock or (ii)
      hedging transaction, which establishes a net short position with respect to
      the
      Common Stock.

    

    (e)           Issuance
      of Initial Purchase Shares; Limitation on Sales of Purchase
      Shares.  The Initial Purchase Shares shall be issued in
      certificated form and (subject to Section 5 hereof) shall bear only the
      following restrictive legend:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
      IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
      APPLICABLE STATE SECURITIES LAWS.

    

      The
      Buyer agrees that the Buyer shall not transfer or sell 641,221 of the Initial
      Purchase Shares until the earlier of (a) 500 Business Days (25 Monthly Periods)
      from the date hereof or (b) the date on which this Agreement has been
      terminated, provided, however, that such restrictions shall not apply: (i)
      in
      connection with any transfers to or among affiliates (as defined in the 1934
      Act), (ii) in connection with any pledge in connection with a bona fide loan
      or
      margin account, (iii) in the event that the Commencement does not occur on
      or
      before October 1, 2007, due to the failure of the Company to satisfy the
      conditions set forth in Section 7 or (iv) if an Event of Default has occurred,
      or any event which, after notice and/or lapse of time, would become an Event
      of
      Default, including any failure by the Company to timely issue Purchase Shares
      under this Agreement.  Notwithstanding the forgoing, the Buyer may
      transfer Initial Purchase Shares to a third party in order to settle a sale
      made
      by the Buyer where the Buyer reasonably expects the Company to deliver
      additional Purchase Shares to the Buyer under this Agreement so long as the
      Buyer maintains ownership of the 641,221 Initial Purchase Shares overall by
      "replacing" such Initial Purchase Shares so transferred with new Purchase Shares
      when the new Purchase Shares are actually issued by the Company to the
      Buyer.

     

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
 

    (g)           Due
      Diligence.  The Buyer shall have the right, from time to time as
      the Buyer may reasonably deem appropriate, to perform reasonable due diligence
      on the Company during normal business hours.  The Company and its
      officers and employees shall provide information and reasonably cooperate with
      the Buyer in connection with any reasonable request by the Buyer related to
      the
      Buyer's due diligence of the Company, including, but not limited to, any such
      request made by the Buyer in connection with (i) the filing of the registration
      statement described in Section 4(a) hereof and (ii) the
      Commencement.  Each party hereto agrees not to disclose any
      Confidential Information of the other party to any third party and shall not
      use
      the Confidential Information for any purpose other than in connection with,
      or
      in furtherance of, the transactions contemplated hereby.  Each party
      hereto acknowledges that the Confidential Information shall remain the property
      of the disclosing party and agrees that it shall take all reasonable measures
      to
      protect the secrecy of any Confidential Information disclosed by the other
      party.

    

    

    5.           TRANSFER
      AGENT INSTRUCTIONS.

    

    Immediately
      upon the execution of this Agreement, the Company shall deliver to the Transfer
      Agent a letter in the form as set forth as Exhibit E attached hereto with
      respect to the issuance of the 2,057,194 Initial Purchase Shares to be purchase
      by the Buyer upon execution hereof. On the Filing Date,
      the Company shall also deliver to the Transfer Agent a letter in the form as
      set
      forth as Exhibit E attached hereto with respect to the issuance of the
      1,111,111 Initial Purchase Shares to be purchase by the Buyer on the Filing
      Date. On the Commencement Date, the Company shall cause
      any restrictive legend on the 2,057,194 Initial Purchase Shares and the 25,000
      shares of Common Stock issued to the Buyer upon signing that certain Term Sheet
      between the Buyer and the Company and dated as of June 14, 2007 (the “Signing
      Shares”) to be removed and all of the remaining Purchase
      Shares to be issued under this Agreement shall be issued without any restrictive
      legend unless the Buyer expressly consents otherwise.  The Company
      shall issue irrevocable instructions to the Transfer Agent, and any subsequent
      transfer agent, to issue Purchase Shares in the name of the Buyer for the
      Purchase Shares (the "Irrevocable Transfer Agent Instructions").  The
      Company warrants to the Buyer that no instruction other than the Irrevocable
      Transfer Agent Instructions expressly referred to in this Agreement will be
      given by the Company to the Transfer Agent with respect to the Signing Shares
      or
      the Purchase Shares (including the Initial Purchase Shares), and Signing Shares
      and the Purchase Shares (including the Initial Purchase Shares), shall otherwise
      be freely transferable on the books and records of the Company as and to the
      extent provided in this Agreement and the Registration Rights Agreement subject
      to the provisions of Section 4(e) in the case of 641,221 Initial Purchase
      Shares.

    

    

    
      	
               

            	
              6.

            	
              CONDITIONS
                TO THE COMPANY'S RIGHT TO COMMENCE SALES
                OF SHARES OF COMMON STOCK UNDER THIS
                AGREEMENT.

            

    

    

    The
      right
      of the Company hereunder to commence sales of the Purchase Shares is subject
      to
      the satisfaction of each of the following conditions on or before the
      Commencement Date (the date that the Company may begin sales):

    

    (a)           The
      Buyer shall have executed each of the Transaction Documents and delivered the
      same to the Company;

     

     

     

    
      
         

      

      
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    (b)           A
      registration statement covering the sale of all of the Signing
      Shares and Purchase Shares (including the 3,168,305
      Initial Purchase Shares), shall have been declared effective under the 1933
      Act
      by the SEC and no stop order with respect to the registration statement shall
      be
      pending or threatened by the SEC.

    

    

    
      	
               

            	
              7.

            	
              CONDITIONS
                TO THE BUYER'S OBLIGATION TO
                MAKE

            

    

    PURCHASES
      OF SHARES OF COMMON STOCK.

    

    The
      obligation of the Buyer to buy Purchase Shares (other than the 3,168,305 Initial
      Purchase Shares) under this Agreement is subject to the satisfaction of each
      of
      the following conditions on or before the Commencement Date (the date that
      the
      Company may begin sales other than the 3,168,305 Initial Purchase Shares) and
      once such conditions have been initially satisfied, there shall not be any
      ongoing obligation to satisfy such conditions after the Commencement has
      occurred:

    

    (a)           The
      Company shall have executed each of the Transaction Documents and delivered
      the
      same to the Buyer;

    

    (b)           The
      Company shall have issued to the Buyer 3,168,305 Initial Purchase Shares and
      shall have removed the restrictive transfer legend from the certificate
      representing all the Initial Purchase Shares and
      the Signing Shares;

    

    (c)           The
      Common Stock shall be authorized for quotation on the Principal Market, trading
      in the Common Stock shall not have been within the last 365 days suspended
      by
      the SEC or the Principal Market and the Purchase Shares and the Signing Shares
      shall be approved for listing upon the Principal Market;

    

    (d)           The
      Buyer shall have received the opinions of the Company's legal counsel dated
      as
      of the Commencement Date substantially in the form of Exhibit
      A attached hereto;

    

    (e)           The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Commencement
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied with the covenants, agreements and conditions required by the
      Transaction Documents to be performed, satisfied or complied with by the Company
      at or prior to the Commencement Date.  The Buyer shall have received a
      certificate, executed by the CEO, President or CFO of the Company, dated as
      of
      the Commencement Date, to the foregoing effect in the form attached hereto
      as
Exhibit B;

    

    (f)           The
      Board of Directors of the Company shall have adopted resolutions in the form
      attached hereto as Exhibit C which shall be in full
      force and effect without any amendment or supplement thereto as of the
      Commencement Date;

    

    (g)           As
      of the Commencement Date, the Company shall have reserved out of its authorized
      and unissued Common Stock, solely for the purpose of effecting future purchases
      of Purchase Shares hereunder, 10,000,000 shares of Common Stock not including
      the 3,168,305 Initial Purchase Shares;

     

     

    
      
         

      

      
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    (h)           The
      Irrevocable Transfer Agent Instructions, in form acceptable to the Buyer shall
      have been delivered to and acknowledged in writing by the Company and the
      Company's Transfer Agent;

    

    (i)           The
      Company shall have delivered to the Buyer a certificate evidencing the
      incorporation and good standing of the Company in the State of Nevada issued
      by
      the Secretary of State of the State of Nevada as of a date within ten (10)
      Business Days of the Commencement Date and the Company shall have delivered
      to
      the Buyer a certificate evidencing good standing of the Company in the State
      of
      Florida issued by the Secretary of State of the State of Florida as of a date
      within ten (10) Business Days of the Commencement Date;

    

    (j)           The
      Company shall have delivered to the Buyer a certified copy of the Certificate
      of
      Incorporation as certified by the Secretary of State of the State of Nevada
      within ten (10) Business Days of the Commencement Date;

    

    (k)           The
      Company shall have delivered to the Buyer a secretary's certificate executed
      by
      the Secretary of the Company, dated as of the Commencement Date, in the form
      attached hereto as Exhibit D;

    

    (l)           A
      registration statement covering the sale of all of the 3,168,305 Initial
      Purchase Shares, the Signing Shares and Purchase Shares shall have been declared
      effective under the 1933 Act by the SEC and no stop order with respect to the
      registration statement shall be pending or threatened by the SEC.  The
      Company shall have prepared and delivered to the Buyer a final and complete
      form
      of prospectus, dated and current as of the Commencement Date, to be used by
      the
      Buyer in connection with any sales of any Signing Shares or any Purchase Shares,
      and to be filed by the Company one Business Day after the Commencement Date.
      The
      Company shall have made all filings under all applicable federal and state
      securities laws necessary to consummate the issuance of the Signing Shares
      and
      the Purchase Shares pursuant to this Agreement in compliance with such
      laws;

    

    (m)           No
      Event of Default has occurred, or any event which, after notice and/or lapse
      of
      time, would become an Event of Default has occurred;

    

    (n)           On
      or prior to the Commencement Date, the Company shall take all necessary action,
      if any, and such actions as reasonably requested by the Buyer, in order to
      render inapplicable any control share acquisition, business combination,
      shareholder rights plan or poison pill (including any distribution under a
      rights agreement) or other similar anti-takeover provision under the Certificate
      of Incorporation or the laws of the state of its incorporation which is or
      could
      become applicable to the Buyer as a result of the transactions contemplated
      by
      this Agreement, including, without limitation, the Company's issuance of the
      Securities and the Buyer's ownership of the Securities; and

    

    (o)           The
      Company shall have provided the Buyer with the information requested by the
      Buyer in connection with its due diligence requests made prior to, or in
      connection with, the Commencement, in accordance with the terms of Section
      4(g)
      hereof.

    

     

    
      
         

      

      
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              8.

            	
              INDEMNIFICATION.

            

    

    

    In
      consideration of the Buyer's execution and delivery of the Transaction Documents
      and acquiring the Securities hereunder and in addition to all of the Company's
      other obligations under the Transaction Documents, the Company shall defend,
      protect, indemnify and hold harmless the Buyer and all of its affiliates,
      shareholders, officers, directors, employees and direct or indirect investors
      and any of the foregoing person's agents or other representatives (including,
      without limitation, those retained in connection with the transactions
      contemplated by this Agreement) (collectively, the "Indemnitees") from and
      against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys' fees
      and disbursements (the "Indemnified Liabilities"), incurred by any Indemnitee
      as
      a result of, or arising out of, or relating to (a) any misrepresentation or
      breach of any representation or warranty made by the Company in the Transaction
      Documents or any other certificate, instrument or document contemplated hereby
      or thereby, (b) any breach of any covenant, agreement or obligation of the
      Company contained in the Transaction Documents or any other certificate,
      instrument or document contemplated hereby or thereby, or (c) any cause of
      action, suit or claim brought or made against such Indemnitee and arising out
      of
      or resulting from the execution, delivery, performance or enforcement of the
      Transaction Documents or any other certificate, instrument
      or  document contemplated hereby or thereby, other than with respect
      to Indemnified Liabilities which directly and primarily result from the gross
      negligence or willful misconduct of the Indemnitee.  To the extent
      that the foregoing undertaking by the Company may be unenforceable for any
      reason, the Company shall make the maximum contribution to the payment and
      satisfaction of each of the Indemnified Liabilities which is permissible under
      applicable law.

    

    

    9.           EVENTS
      OF DEFAULT.

    

    An
      "Event
      of Default" shall be deemed to have occurred at any time as any of the following
      events occurs:

    

    (a)           while
      any registration statement is required to be maintained effective pursuant
      to
      the terms of the Registration Rights Agreement, the effectiveness of such
      registration statement lapses for any reason (including, without limitation,
      the
      issuance of a stop order) or is unavailable to the Buyer for sale of all of
      the
      Registrable Securities (as defined in the Registration Rights Agreement) in
      accordance with the terms of the Registration Rights Agreement, and such lapse
      or unavailability continues for a period of ten (10) consecutive Business Days
      or for more than an aggregate of thirty (30) Business Days in any 365-day
      period;

    

    (b)           the
      suspension from trading or failure of the Common Stock to be listed on the
      Principal Market for a period of three (3) consecutive Business
      Days;

    

    (c)           the
      delisting of the Company’s Common Stock from the Principal Market, provided,
      however, that the Common Stock is not immediately thereafter trading on the
      New
      York Stock Exchange, the Nasdaq Global Market, the Nasdaq Capital Market, or
      the
      American Stock Exchange;

    

    (d)           the
      failure for any reason by the Transfer Agent to issue Purchase Shares to the
      Buyer within five (5) Business Days after the applicable Purchase Date which
      the
      Buyer is entitled to receive;

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
 

    (e)           the
      Company breaches any representation, warranty, covenant or other term or
      condition under any Transaction Document if such breach could have a Material
      Adverse Effect and except, in the case of a breach of a covenant which is
      reasonably curable, only if such breach continues for a period of at least
      five
      (5) Business Days;

    

    (f)           if
      any Person commences a proceeding against the Company pursuant to or within
      the
      meaning of any Bankruptcy Law;

    

    (g)           if
      the Company pursuant to or within the meaning of any Bankruptcy Law; (A)
      commences a voluntary case, (B) consents to the entry of an order for relief
      against it in an involuntary case, (C) consents to the appointment of a
      Custodian of it or for all or substantially all of its property, (D) makes
      a
      general assignment for the benefit of its creditors, (E) becomes insolvent,
      or
      (F) is generally unable to pay its debts as the same become due;

    

    (h)           a
      court of competent jurisdiction enters an order or decree under any Bankruptcy
      Law that (A) is for relief against the Company in an involuntary case, (B)
      appoints a Custodian of the Company or for all or substantially all of its
      property, or (C) orders the liquidation of the Company or any Subsidiary;
      or

    

    (i)           a
      material adverse change in the business, properties, operations, financial
      condition or results of operations of the Company and its Subsidiaries taken
      as
      a whole.

    

    In
      addition to any other rights and remedies under applicable law and this
      Agreement, including the Buyer termination rights under Section 11(k) hereof,
      so
      long as an Event of Default has occurred and is continuing, or if any event
      which, after notice and/or lapse of time, would become an Event of Default,
      has
      occurred and is continuing, or so long as the Purchase Price is below the
      Purchase Price Floor, the Buyer shall not be obligated to purchase any shares
      of
      Common Stock under this Agreement.  If pursuant to or within the
      meaning of any Bankruptcy Law, the Company commences a voluntary case or any
      Person commences a proceeding against the Company, a Custodian is appointed
      for
      the Company or for all or substantially all of its property, or the Company
      makes a general assignment for the benefit of its creditors, (any of which
      would
      be an Event of Default as described in Sections 9(f), 9(g) and
      9(h) hereof) this Agreement shall automatically terminate
      without any liability or payment to the Company without further action or notice
      by any Person.  No such termination of this Agreement under Section
      11(k)(i) shall affect the Company's or the Buyer's obligations under this
      Agreement with respect to pending purchases and the Company and the Buyer shall
      complete their respective obligations with respect to any pending purchases
      under this Agreement.

     

    10.           CERTAIN
      DEFINED TERMS.

    

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

    

    (a)           “1933
      Act” means the Securities Act of 1933, as amended.

    

    (b)           “Available
      Amount” means initially Sixteen Million Dollars ($16,000,000.00) in the
      aggregate which amount shall be reduced by the Purchase Amount each time the
      Buyer purchases shares of Common Stock pursuant to Section 1 hereof including
      the Initial Purchases.

    

    (c)           “Bankruptcy
      Law” means Title 11, U.S. Code, or any similar federal or state law for the
      relief of debtors.

     

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    
 

    (d)           “Base
      Purchase Notice” shall mean an irrevocable written notice from the Company to
      the Buyer directing the Buyer to buy up to the Base Purchase Amount in Purchase
      Shares as specified by the Company therein at the applicable Purchase Price
      on
      the Purchase Date.

    

    (e)           “Block
      Purchase Amount” shall mean such Block Purchase Amount as specified by the
      Company in a Block Purchase Notice subject to Section 1(b) hereof.

    

    (f)           “Block
      Purchase Notice” shall mean an irrevocable written notice from the Company to
      the Buyer directing the Buyer to buy the Block Purchase Amount in Purchase
      Shares as specified by the Company therein at the Block Purchase Price as of
      the
      Purchase Date subject to Section 1 hereof.

    

    (d)           “Business
      Day” means any day on which the Principal Market is open for trading including
      any day on which the Principal Market is open for trading for a period of time
      less than the customary time.

    

    (e)           “Closing
      Sale Price” means, for any security as of any date, the last closing trade price
      for such security on the Principal Market as reported by the Principal Market,
      or, if the Principal Market is not the principal securities exchange or trading
      market for such security, the last closing trade price of such security on
      the
      principal securities exchange or trading market where such security is listed
      or
      traded as reported by  the Principal Market.

    

    (f)           “Confidential
      Information” means any information disclosed by either party to the other party,
      either directly or indirectly, in writing, orally or by inspection of tangible
      objects (including, without limitation, documents, prototypes, samples, plant
      and equipment), which is designated as "Confidential," "Proprietary" or some
      similar designation. Information communicated orally shall be considered
      Confidential Information if such information is confirmed in writing as being
      Confidential Information within ten (10) business days after the initial
      disclosure. Confidential Information may also include information disclosed
      to a
      disclosing party by third parties. Confidential Information shall not, however,
      include any information which (i) was publicly known and made generally
      available in the public domain prior to the time of disclosure by the disclosing
      party; (ii) becomes publicly known and made generally available after disclosure
      by the disclosing party to the receiving party through no action or inaction
      of
      the receiving party; (iii) is already in the possession of the receiving party
      at the time of disclosure by the disclosing party as shown by the receiving
      party’s files and records immediately prior to the time of disclosure; (iv) is
      obtained by the receiving party from a third party without a breach of such
      third party’s obligations of confidentiality; (v) is independently developed by
      the receiving party without use of or reference to the disclosing party’s
      Confidential Information, as shown by documents and other competent evidence
      in
      the receiving party’s possession; or (vi) is required by law to be disclosed by
      the receiving party, provided that the receiving party gives the disclosing
      party prompt written notice of such requirement prior to such disclosure and
      assistance in obtaining an order protecting the information from public
      disclosure.

    

    (g)           “Custodian”
      means any receiver, trustee, assignee, liquidator or similar official under
      any
      Bankruptcy Law.

    

    (h)           “Maturity
      Date” means the date that is 500 Business Days (25 Monthly Periods) from the
      Commencement Date.

    

    (i)           “Monthly
      Period” means each successive 20 Business Day period commencing with the
      Commencement Date.

     

     

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
 

    (j)           “Person”
      means an individual or entity including any limited liability company, a
      partnership, a joint venture, a corporation, a trust, an unincorporated
      organization and a government or any department or agency thereof.

    

    (k)           “Principal
      Market” means the Nasdaq OTC Bulletin Board; provided however, that in the event
      the Company’s Common Stock is ever listed or traded on the Nasdaq Global Market,
      the Nasdaq Capital Market, the New York Stock Exchange or the American Stock
      Exchange, then the “Principal Market” shall mean such other market or exchange
      on which the Company’s Common Stock is then listed or traded.

    

    (l)           “Purchase
      Amount” means, with respect to any particular purchase made hereunder, the
      portion of the Available Amount to be purchased by the Buyer pursuant to Section
      1 hereof in connection with the Initial Purchases or as set forth in a valid
      Base Purchase Notice or a valid Block Purchase Notice which the Company delivers
      to the Buyer.

    

    (m)           “Purchase
      Date” means with respect to any particular purchase made hereunder, the Business
      Day after receipt by the Buyer of a valid Base Purchase Notice or a valid Block
      Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section
      1
      hereof.

    

    (n)           
      “Purchase Price” means the lower of the (A) the lowest Sale Price of the Common
      Stock on the Purchase Date and (B) the arithmetic average of the three (3)
      lowest Closing Sale Prices for the Common Stock during the twelve (12)
      consecutive Business Days ending on the Business Day immediately preceding
      such
      Purchase Date (to be appropriately adjusted for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar
      transaction).

    

    (o)           “Sale
      Price” means, any trade price for the shares of Common Stock on the Principal
      Market as reported by the Principal Market.

    

    (q)           “SEC”
      means the United States Securities and Exchange Commission.

    

    (r)           “Transfer
      Agent” means the transfer agent of the Company as set forth in Section 11(f)
      hereof or such other person who is then serving as the transfer agent for the
      Company in respect of the Common Stock.

    

    

    11.           MISCELLANEOUS.

    

    (a)           Governing
      Law; Jurisdiction; Jury Trial.  The corporate laws of the State of
      Nevada shall govern all issues concerning the relative rights of the Company
      and
      its shareholders. All other questions concerning the construction, validity,
      enforcement and interpretation of this Agreement and the other Transaction
      Documents shall be governed by the internal laws of the State of Illinois,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of Illinois or any other jurisdictions) that would cause
      the application of the laws of any jurisdictions other than the State of
      Illinois.  Each party hereby irrevocably submits to the exclusive
      jurisdiction of the state and federal courts sitting in the City of Chicago,
      for
      the adjudication of any dispute hereunder or under the other Transaction
      Documents or in connection herewith or therewith, or with any transaction
      contemplated hereby or discussed herein, and hereby irrevocably waives, and
      agrees not to assert in any suit, action or proceeding, any claim that it is
      not
      personally subject to the jurisdiction of any such court, that such suit, action
      or proceeding is brought in an inconvenient forum or that the venue of such
      suit, action or proceeding is improper.

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

     

     

    Each
      party hereby irrevocably waives personal service of process and consents to
      process being served in any such suit, action or proceeding by mailing a copy
      thereof to such party at the address for such notices to it under this Agreement
      and agrees that such service shall constitute good and sufficient service of
      process and notice thereof.  Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by
      law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
      HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
      DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
      OR
      ANY TRANSACTION CONTEMPLATED HEREBY.

    

    (b)           Counterparts.  This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other party;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

    

    (c)           Headings.  The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

    

    (d)           Severability.  If
      any provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

    

    (e)           Entire
      Agreement.  With the exception of the Mutual Nondisclosure
      Agreement between the parties dated as of June 14, 2007, this Agreement
      supersedes all other prior oral or written agreements between the Buyer, the
      Company, their affiliates and persons acting on their behalf with respect to
      the
      matters discussed herein, and this Agreement, the other Transaction Documents
      and the instruments referenced herein contain the entire understanding of the
      parties with respect to the matters covered herein and therein and, except
      as
      specifically set forth herein or therein, neither the Company nor the Buyer
      makes any representation, warranty, covenant or undertaking with respect to
      such
      matters.  The Company acknowledges and agrees that is has not relied
      on, in any manner whatsoever, any representations or statements, written or
      oral, other than as expressly set forth in this Agreement.

    

    (f)           Notices.  Any
      notices, consents or other communications required or permitted to be given
      under the terms of this Agreement must be in writing and will be deemed to
      have
      been delivered: (i) upon receipt when delivered personally; (ii) upon receipt
      when sent by facsimile (provided confirmation of transmission is mechanically
      or
      electronically generated and kept on file by the sending party); or (iii) one
      Business Day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
 

    If
      to the
      Company:

    Celsius,
      Holdings, Inc.

    140
      NE
      4th Avenue, Suite C

    Delray
      Beach, FL 33483

    Telephone:  561-276-2239

    Facsimile:     561-276-2268

    Attention:    Chief
      Financial Officer

    

    With
      a
      copy to:

    Baritz
      & Colman, LLP

    1075
      Broken Sound Parkway, NW, Suite 102

    Boca
      Raton, FL 33487

    Telephone:
      561-862-5535

    Facsimile:
      561-368-9903

    Attention:
      Roger L. Shaffer, Esq.

    

    If
      to the
      Buyer:

    Fusion
      Capital Fund II, LLC

    222
      Merchandise Mart Plaza, Suite 9-112

    Chicago,
      IL 60654

    Telephone:  312-644-6644

    Facsimile:     312-644-6244

    Attention:    Steven
      G. Martin

    

    If
      to the
      Transfer Agent:

    Holladay
      Stock Transfer, Inc.

    2939
      North 67th Place, Suite C

    Scottsdale,
      AZ 85152

    Telephone:  480-481-3940

    Facsimile:     480-481-3941

    

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) Business Days prior to the effectiveness of such
      change.  Written confirmation of receipt (A) given by the recipient of
      such notice, consent or other communication, (B) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, and
      recipient facsimile number or (C) provided by a nationally recognized overnight
      delivery service, shall be rebuttable evidence of personal service, receipt
      by
      facsimile or receipt from a nationally recognized overnight delivery service
      in
      accordance with clause (i), (ii) or (iii) above, respectively.

    

    (g)           Successors
      and Assigns.  This Agreement shall be binding upon and inure to
      the benefit of the parties and their respective successors and
      assigns.  The Company shall not assign this Agreement or any rights or
      obligations hereunder without the prior written consent of the Buyer, including
      by merger or consolidation.  The Buyer may not assign its rights or
      obligations under this Agreement.

    

    (h)           No
      Third Party Beneficiaries.  This Agreement is intended for the
      benefit of the parties hereto and their respective permitted successors and
      assigns, and is not for the benefit of, nor may any provision hereof be enforced
      by, any other person.

     

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
 

    (i)           Publicity.  The
      Buyer shall have the right to approve before issuance any press release, SEC
      filing or any other public disclosure made by or on behalf of the Company
      whatsoever with respect to, in any manner, the Buyer, its purchases hereunder
      or
      any aspect of this Agreement or the transactions contemplated hereby; provided,
      however, that the Company shall be entitled, without the prior approval of
      the
      Buyer, to make any press release or other public disclosure (including any
      filings with the SEC) with respect to such transactions as is required by
      applicable law and regulations so long as the Company and its counsel consult
      with the Buyer in connection with any such press release or other public
      disclosure at least two (2) Business Days prior to its release.  The
      Buyer must be provided with a copy thereof at least two (2) Business Days prior
      to any release or use by the Company thereof.  The Company agrees and
      acknowledges that its failure to fully comply with this provision constitutes
      a
      material adverse effect on its ability to perform its obligations under this
      Agreement.

    

    (j)           Further
      Assurances.  Each party shall do and perform, or cause to be done
      and performed, all such further acts and things, and shall execute and deliver
      all such other agreements, certificates, instruments and documents, as the
      other
      party may reasonably request in order to carry out the intent and accomplish
      the
      purposes of this Agreement and the consummation of the transactions contemplated
      hereby.

    

    (k)           Termination.  This
      Agreement may be terminated only as follows:

    

    (i)           By
      the Buyer any time an Event of Default exists without any liability or payment
      to the Company.  However, if pursuant to or within the meaning of any
      Bankruptcy Law, the Company commences a voluntary case or any Person commences
      a
      proceeding against the Company, a Custodian is appointed for the Company or
      for
      all or substantially all of its property, or the Company makes a general
      assignment for the benefit of its creditors, (any of which would be an Event
      of
      Default as described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement
      shall automatically terminate without any liability or payment to the Company
      without further action or notice by any Person.  No such termination
      of this Agreement under this Section 11(k)(i) shall affect the Company's or
      the
      Buyer's obligations under this Agreement with respect to pending purchases
      and
      the Company and the Buyer shall complete their respective obligations with
      respect to any pending purchases under this Agreement.

    

    (ii)           In
      the event that the Commencement shall not have occurred, the Company shall
      have
      the option to terminate this Agreement for any reason or for no reason without
      any liability whatsoever of any party to any other party under this
      Agreement.

    

    (iii)           In
      the event that the Commencement shall not have occurred on or before December
      31, 2007, due to the failure to satisfy the conditions set forth in Sections
      6
      and 7 above with respect to the Commencement, at any time prior to Commencement
      either party shall have the option to terminate this Agreement at the close
      of
      business on such date or thereafter without any liability whatsoever of any
      party to any other party under this Agreement.

    

     (iv)           
      At any time after the Commencement Date, the Company shall have the option
      to
      terminate this Agreement for any reason or for no reason by delivering notice
      (a
“Company Termination Notice”) to the Buyer electing to terminate this Agreement
      without any liability whatsoever of any party to any other party under this
      Agreement.  The Company Termination Notice shall not be effective
      until one (1) Business Day after it has been received by the Buyer.

     

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    
 

    (v)           This
      Agreement shall automatically terminate on the date that the Company sells
      and
      the Buyer purchases the full Available Amount as provided herein, without any
      action or notice on the part of any party and without any liability whatsoever
      of any party to any other party under this Agreement.

    

    (vi)           If
      by the Maturity Date for any reason or for no reason the full Available Amount
      under this Agreement has not been purchased as provided for in Section 1 of
      this
      Agreement, this Agreement shall automatically terminate on the Maturity Date,
      without any action or notice on the part of any party and without any liability
      whatsoever of any party to any other party under this Agreement.

    

    Except
      as
      set forth in Sections 11(k)(i) (in respect of an Event of Default under Sections
      9(f), 9(g) and 9(h)) and 11(k)(vi), any termination of this Agreement pursuant
      to this Section 11(k) shall be effected by written notice from the Company
      to
      the Buyer, or the Buyer to the Company, as the case may be, setting forth the
      basis for the termination hereof.  The representations and warranties
      of the Company and the Buyer contained in Sections 2, 3 and 5 hereof, the
      indemnification provisions set forth in Section 8 hereof and the agreements
      and
      covenants set forth in Section 11, shall survive the
      Commencement and any termination of this Agreement.  No termination of
      this Agreement shall affect the Company's or the Buyer's rights or obligations
      (i) under the Registration Rights Agreement which shall survive any such
      termination or (ii) under this Agreement with respect to pending purchases
      and
      the Company and the Buyer shall complete their respective obligations with
      respect to any pending purchases under this Agreement.

    

    (l)           Financial
      Advisor, Placement Agent, Broker or Finder.  The Company
      acknowledges that it has retained Growth Capital Partners, LLC as financial
      advisor in connection with the transactions contemplated hereby.  The
      Company represents and warrants to the Buyer that it has not engaged any other
      financial advisor, placement agent, broker or finder in connection with the
      transactions contemplated hereby.  The Buyer represents and warrants
      to the Company that it has not engaged any financial advisor, placement agent,
      broker or finder in connection with the transactions contemplated
      hereby.  The Company shall be responsible for the payment of any fees
      or commissions, if any, of any financial advisor, placement agent, broker or
      finder relating to or arising out of the transactions contemplated
      hereby.  The Company shall pay, and hold the Buyer harmless against,
      any liability, loss or expense (including, without limitation, attorneys' fees
      and out of pocket expenses) arising in connection with any such
      claim.

    

    (m)           No
      Strict Construction.  The language used in this Agreement will be
      deemed to be the language chosen by the parties to express their mutual intent,
      and no rules of strict construction will be applied against any
      party.

    

    (n)           Remedies,
      Other Obligations, Breaches and Injunctive Relief.  The Buyer’s
      remedies provided in this Agreement shall be cumulative and in addition to
      all
      other remedies available to the Buyer under this Agreement, at law or in equity
      (including a decree of specific performance and/or other injunctive relief),
      no
      remedy of the Buyer contained herein shall be deemed a waiver of compliance
      with
      the provisions giving rise to such remedy and nothing herein shall limit the
      Buyer's right to pursue actual damages for any failure by the Company to comply
      with the terms of this Agreement.  The Company acknowledges that a
      breach by it of its obligations hereunder will cause irreparable harm to the
      Buyer and that the remedy at law for any such breach may be
      inadequate.

     

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

     

     

    The
      Company therefore agrees that, in the event of any such breach or threatened
      breach, the Buyer shall be entitled, in addition to all other available
      remedies, to an injunction restraining any breach, without the necessity of
      showing economic loss and without any bond or other security being
      required.

    

    (o)           Enforcement
      Costs.  If: (i) this Agreement is placed by the Buyer in the hands
      of an attorney for enforcement or is enforced by the Buyer through any legal
      proceeding; or (ii) an attorney is retained to represent the Buyer in any
      bankruptcy, reorganization, receivership or other proceedings affecting
      creditors' rights and involving a claim under this Agreement; or (iii an
      attorney is retained to represent the Buyer in any other proceedings whatsoever
      in connection with this Agreement, then the Company shall pay to the Buyer,
      as
      incurred by the Buyer, all reasonable costs and expenses including attorneys'
      fees incurred in connection therewith, in addition to all other amounts due
      hereunder.

    

    (p)           Failure
      or Indulgence Not Waiver.  No failure or delay in the exercise of
      any power, right or privilege hereunder shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of any such power, right or privilege
      preclude other or further exercise thereof or of any other right, power or
      privilege.

    

    

    *     *     *     *     *

     

     

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

     

    IN
      WITNESS WHEREOF, the Buyer and the Company have caused this Common
      Stock Purchase Agreement to be duly executed as of the date first written
      above.

    

    

    

    THE
      COMPANY:

    

    Celsius
      Holdings, Inc.

    

    

     
By:___/s/
      Jan
      Norelid________

     
Name:
      Jan
      Norelid

    Title:
      Chief Financial Officer

    

    

    BUYER:

    

    Fusion
      Capital Fund II, LLC

                  By:
      Fusion Capital Partners,
      LLC

     
By:
      SGM Holdings
      Corp.

    

    By:___/s/
      Steven G. Martin____

    Name:
      Steven G. Martin

    Title:
      President

     

    
 

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    

    

    SCHEDULES

    

    
      	
              Schedule
                3(a)

            	
              Subsidiaries

            
	
              Schedule
                3(c)

            	
              Capitalization

            
	
              Schedule
                3(e)

            	
              Conflicts

            
	
              Schedule
                3(f)

            	
              1934
                Act Filings

            
	
              Schedule
                3(g)

            	
              Material
                Changes

            
	
              Schedule
                3(h)

            	
              Litigation

            
	
              Schedule
                3(k)

            	
              Intellectual
                Property

            
	
              Schedule
                3(m)

            	
              Liens

            
	
              Schedule
                3(q)

            	
              Certain
                Transactions

            

    

    

    

    

    EXHIBITS

    

    
      	
              Exhibit
                A

            	
              Form
                of Company Counsel Opinion

            
	
              Exhibit
                B

            	
              Form
                of Officer’s Certificate

            
	
              Exhibit
                C

            	
              Form
                of Resolutions of Board of Directors of the Company

            
	
              Exhibit
                D

            	
              Form
                of Secretary’s Certificate

            
	
              Exhibit
                E

            	
              Form
                of Letter to Transfer Agent

            

    

     

     

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

     

     

    DISCLOSURE
      SCHEDULES

    

    

    Schedule
      3(a) – Subsidiaries

    

    

    Schedule
      3(c) - Capitalization

    

    

    Schedule
      3(e) - No Conflicts

    

    

    Schedule
      3(f) - 1934 Act Filings

    

    

    Schedule
      3(g) - Absence of Certain Changes

    

    

    Schedule
      3(h) - Litigation

    

    

    Schedule
      3(k) - Intellectual Property Rights

    

    

    Schedule
      3(m) - Title

    

    

    Schedule
      3(q) - Transactions with Affiliates

    

    

    

    

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    

    

    

    

    EXHIBIT
      A

    

    FORM
      OF COMPANY COUNSEL OPINION

    

    Capitalized
      terms used herein but not
      defined herein, have the meaning set forth in the Common Stock Purchase
      Agreement.  Based on the foregoing, and subject to the assumptions and
      qualifications set forth herein, we are of the opinion that:

    

    1.      The
      Company is a corporation existing and in good standing under the laws of the
      State of Nevada.  The Company is qualified to do business as a foreign
      corporation and is in good standing in the State of Florida.

     

    2.      The
      Company has the corporate power to execute and deliver, and perform its
      obligations under, each Transaction Document to which it is a
      party.  The Company has the corporate power to conduct its business
      as, to the best of our knowledge, it is now conducted, and to own and use the
      properties owned and used by it.

     

    3.      The
      execution, delivery and performance by the Company of the Transaction Documents
      to which it is a party have been duly authorized by all necessary corporate
      action on the part of the Company.  The execution and delivery of the
      Transaction Documents by the Company, the performance of the obligations of
      the
      Company thereunder and the consummation by it of the transactions contemplated
      therein have been duly authorized and approved by the Company's Board of
      Directors and no further consent, approval or authorization of the Company,
      its
      Board of Directors or its stockholders is required.  The Transaction
      Documents to which the Company is a party have been duly executed and delivered
      by the Company and are the valid and binding obligations of the Company,
      enforceable against the Company in accordance with their terms except as such
      enforceability may be limited by general principles of equity or applicable
      bankruptcy, insolvency, liquidation or similar laws relating to, or affecting
      creditor’s rights and remedies.

     

    4.      The
      execution, delivery and performance by the Company of the Transaction Documents,
      the consummation by the Company of the transactions contemplated thereby
      including the offering, sale and issuance of the Purchase Shares in accordance
      with the terms and conditions of the Common Stock Purchase Agreement, and
      fulfillment and compliance with terms of the Transaction Documents, does not
      and
      shall not: (i) conflict with, constitute a breach of or default (or an
      event which, with the giving of notice or lapse of time or both, constitutes
      or
      could constitute a breach or a default), under (a) the Certificate of
      Incorporation or the Bylaws of the Company, (b) any material agreement, note,
      lease, mortgage, deed or other material instrument to which to our knowledge
      the
      Company is a party or by which the Company or any of its assets are bound,
      (ii) result in any violation of any statute, law, rule or regulation
      applicable to the Company, or (iii) to our knowledge, violate any order, writ,
      injunction or decree applicable to the Company or any of its
      subsidiaries.

     

    5.      The
      issuance of the Purchase Shares and Signing Shares pursuant to the terms and
      conditions of the Transaction Documents has been duly authorized and the Signing
      Shares and the Initial Purchase Shares are validly issued, fully paid and
      non-assessable, to our knowledge, free of all taxes, liens, charges,
      restrictions, rights of first refusal and preemptive rights. 10,000,000 shares
      of Common Stock have been properly reserved for issuance under the Common Stock
      Purchase Agreement for future issuances of Purchase Shares.  When
      issued and paid for in accordance with the Common Stock Purchase Agreement,
      the
      Purchase Shares shall be validly issued, fully paid and non-assessable, to
      our
      knowledge, free of all taxes, liens, charges, restrictions, rights of first
      refusal and preemptive rights.

     

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

     

    To
      our
      knowledge, the execution and delivery of the Registration Rights Agreement
      do
      not, and the performance by the Company of its obligations thereunder shall
      not,
      give rise to any rights of any other person for the registration under the
      1933
      Act of any shares of Common Stock or other securities of the Company which
      have
      not been waived.

    

    6.      As
      of the date hereof, the authorized capital stock of the Company consists of
      _______ shares of common stock, par value $0.001 per share, of which to our
      knowledge __________ shares are issued and outstanding.  Except as set
      forth on Schedule 3(c) of the Common Stock Purchase Agreement, to our knowledge,
      there are no outstanding shares of capital stock or other securities convertible
      into or exchangeable or exercisable for shares of the capital stock of the
      Company.

     

    7.      Assuming
      the accuracy of the representations and your compliance with the covenants
      made
      by you in the Transaction Documents, the offering, sale and issuance of the
      3,168,305 Initial Purchase Shares and the 25,000 Signing Shares to you pursuant
      to the Transaction Documents was exempt from registration under the 1933 Act
      and
      the securities laws and regulations of the State of Florida.

     

    8.      Other
      than that which has been obtained and completed prior to the date hereof, no
      authorization, approval, consent, filing or other order of any federal or state
      governmental body, regulatory agency, or stock exchange or market, or any court,
      or, to our knowledge, any third party is required to be obtained by the Company
      to enter into and perform its obligations under the Transaction Documents or
      for
      the Company to issue and sell the Purchase Shares as contemplated by the
      Transaction Documents.

     

    9.  The
      Common Stock is
      registered pursuant to Section 12(g) of the 1934 Act.  To our
      knowledge, since January 1, 2006, the Company has been in compliance with the
      reporting requirements of the 1934 Act applicable to it.  To our
      knowledge, since January 1, 2006, the Company has not received any written
      notice from the Principal Market stating that the Company has not been in
      compliance with any of the rules and regulations (including the requirements
      for
      continued listing) of the Principal Market.

     

    We
      further advise you that to our knowledge, except as disclosed on Schedule 3(h)
      in the Common Stock Purchase Agreement, there is no action, suit, proceeding,
      inquiry or investigation before or by any court, public board or body, any
      governmental agency, any stock exchange or market, or self-regulatory
      organization, which has been threatened in writing or which is currently pending
      against the Company, any of its subsidiaries, any officers or directors of
      the
      Company or any of its subsidiaries or any of the properties of the Company
      or
      any of its subsidiaries.

    

    In
      addition, we have participated in
      the preparation of the Registration Statement (SEC File #________) covering
      the
      sale of the Signing Shares and the Purchase Shares (including the Initial
      Purchase Shares), including the prospectus dated ____________, contained therein
      and in conferences with officers and other representatives of the Company
      (including the Company’s independent auditors) during which the contents of the
      Registration Statement and related matters were discussed and reviewed and,
      although we are not passing upon and do not assume any responsibility for the
      accuracy, completeness or fairness of the statements contained in the
      Registration Statement, on the basis of the information that was developed
      in
      the course of the performance of the services referred to above, considered
      in
      the light of our understanding of the applicable law, nothing came to our
      attention that caused us to believe that the Registration Statement (other
      than
      the financial statements and schedules and the other financial and statistical
      data included therein, as to which we express no belief), as of their dates,
      contained any untrue statement of a material fact or omitted to state any
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

     

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
      B

    

    FORM
      OF OFFICER’S CERTIFICATE

    

    This
      Officer’s Certificate (“Certificate”) is being delivered
      pursuant to Section 7(e) of that certain Common Stock Purchase Agreement dated
      as of _________, (“Common Stock Purchase Agreement”), by and
      between Celsius Holdings, Inc., a Nevada corporation (the
“Company”), and Fusion Capital Fund II, LLC
(the “Buyer”).  Terms
      used herein and not
      otherwise defined shall have the meanings ascribed to them in the Common Stock
      Purchase Agreement.

    

    The
      undersigned, ___________, ______________ of the Company, hereby certifies as
      follows:

    

    1.           I
      am the _____________ of the Company and make the statements contained in this
      Certificate;

    

    2.           The
      representations and warranties of the Company are true and correct in all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality or pursuant to the schedules
      referenced in Section 3 of the Common Stock Purchase Agreement, in which case,
      such representations and warranties are true and correct without further
      qualification) as of the date when made and as of the Commencement Date as
      though made at that time (except for representations and warranties that speak
      as of a specific date);

    

    3.           The
      Company has performed, satisfied and complied in all material respects with
      covenants, agreements and conditions required by the Transaction Documents
      to be
      performed, satisfied or complied with by the Company at or prior to the
      Commencement Date.

     

    
      4.           The
        Company has not taken any steps, and does not currently expect to take any
        steps, to seek protection pursuant to any Bankruptcy Law nor does the Company
        or
        any of its Subsidiaries have any knowledge or reason to believe that its
        creditors intend to initiate involuntary bankruptcy or insolvency proceedings.
        The Company is financially solvent and is generally able to pay its debts
        as
        they become due.

       

    

     

    IN
      WITNESS WHEREOF, I have hereunder signed my name on this ___ day of
      ___________.

    

          ______________________

    Name:

    Title:

    

    The
      undersigned as Secretary of ________, a ________ corporation, hereby certifies
      that ___________ is the duly elected, appointed, qualified and acting ________
      of _________ and that the signature appearing above is his genuine
      signature.

    

    ___________________________________

    Secretary
      

     

     

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

     

     

     

    EXHIBIT
      C-1

    

    FORM
      OF COMPANY RESOLUTIONS

    FOR
      SIGNING PURCHASE AGREEMENT

    

    UNANIMOUS
      WRITTEN CONSENT OF

    

    Celsius
      Holdings, Inc.

    

    

    Pursuant
      to Section ______ of the _________, the undersigned, being all of the directors
      of Celsius Holdings, Inc., a Nevada corporation (the
“Corporation”) do hereby consent to and adopt the following resolutions
      as the
      action of the Board of Directors for and on behalf of the Corporation and hereby
      direct that this Consent be filed with the minutes of the proceedings of the
      Board of Directors:

    

    WHEREAS,
      there has been presented to
      the Board of Directors of the Corporation a draft of the Common Stock Purchase
      Agreement (the “Purchase Agreement”) by and between the Corporation and Fusion
      Capital Fund II, LLC (“Fusion”), providing for the purchase by Fusion of up to
      Sixteen Million Dollars ($16,000,000.00) of the Corporation’s common stock, par
      value $0.001 (the “Common Stock”); and

    

    WHEREAS,
      after careful consideration of
      the Purchase Agreement, the documents incident thereto and other factors deemed
      relevant by the Board of Directors, the Board of Directors has determined that
      it is advisable and in the best interests of the Corporation to engage in the
      transactions contemplated by the Purchase Agreement, including, but not limited
      to, the issuance and sale of shares of Common Stock to Fusion up to the
      available amount under the Purchase Agreement (the "Purchase
      Shares").

    

    Transaction
      Documents

     

    NOW,
      THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase
      Agreement are hereby approved and Stephen Haley and Jan Norelid (the “Authorized
      Officers”) are severally authorized to execute and deliver the Purchase
      Agreement, and any other agreements or documents contemplated thereby including,
      without limitation, a registration rights agreement (the “Registration Rights
      Agreement”) providing for the registration of the shares of the Company’s Common
      Stock issuable in respect of the Purchase Agreement on behalf of the
      Corporation, with such amendments, changes, additions and deletions as the
      Authorized Officers may deem to be appropriate and approve on behalf of, the
      Corporation, such approval to be conclusively evidenced by the signature of
      an
      Authorized Officer thereon; and

     

    FURTHER
      RESOLVED, that the terms and provisions of the Registration Rights Agreement
      by
      and among the Corporation and Fusion are hereby approved and the Authorized
      Officers are authorized to execute and deliver the Registration Rights Agreement
      (pursuant to the terms of the Purchase Agreement), with such amendments,
      changes, additions and deletions as the Authorized Officer may deem appropriate
      and approve on behalf of, the Corporation, such approval to be conclusively
      evidenced by the signature of an Authorized Officer thereon; and

     

    

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

     

    FURTHER
      RESOLVED, that the terms and provisions of the Form of Transfer Agent
      Instructions (the “Instructions”) are hereby approved and the Authorized
      Officers are authorized to execute and deliver the Instructions (pursuant to
      the
      terms of the Purchase Agreement), with such amendments, changes, additions
      and
      deletions as the Authorized Officers may deem appropriate and approve on behalf
      of, the Corporation, such approval to be conclusively evidenced by the signature
      of an Authorized Officer thereon; and

     

    Execution
      of Purchase Agreement

     

    FURTHER
      RESOLVED, that the Corporation be and it hereby is authorized to execute the
      Purchase Agreement providing for the purchase of common stock of the Corporation
      having an aggregate value of up to $16,000,000.00; and

     

    Issuance
      of Common Stock

     

           
      FURTHER RESOLVED, that the Corporation was authorized to issue 25,000 shares
      of
      Common Stock to Fusion pursuant to the Confidential Term Sheet between the
      Company and Fusion dated as of June 14, 2007 (the “Signing Shares”) and that
      upon issuance of the Signing Shares, the Signing Shares have been duly
      authorized, validly issued, fully paid and nonassessable with no personal
      liability attaching to the ownership thereof; and

     

    FURTHER
      RESOLVED, that the Corporation is hereby authorized to issue shares of Common
      Stock upon the purchase of Purchase Shares up to the available amount under
      the
      Purchase Agreement in accordance with the terms of the Purchase Agreement and
      that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
      the Purchase Shares will be duly authorized, validly issued, fully paid and
      nonassessable with no personal liability attaching to the ownership thereof;
      and

     

    FURTHER
      RESOLVED, that the Corporation shall initially reserve 10,000,000 shares of
      Common Stock for issuance as Purchase Shares after the Commencement under the
      Purchase Agreement (not including the 3,168,305 Initial Purchase Shares as
      defined in the Agreement),.

     

    Approval
      of Actions

     

    FURTHER
      RESOLVED, that, without limiting the foregoing, the Authorized Officers are,
      and
      each of them hereby is, authorized and directed to proceed on behalf of the
      Corporation and to take all such steps as deemed necessary or appropriate,
      with
      the advice and assistance of counsel, to cause the Corporation to consummate
      the
      agreements referred to herein and to perform its obligations under such
      agreements; and

     

    FURTHER
      RESOLVED, that the Authorized
      Officers be, and each of them hereby is, authorized, empowered and directed
      on
      behalf of and in the name of the Corporation, to take or cause to be taken
      all
      such further actions and to execute and deliver or cause to be executed and
      delivered all such further agreements, amendments, documents, certificates,
      reports, schedules, applications, notices, letters and undertakings and to
      incur
      and pay all such fees and expenses as in their judgment shall be necessary,
      proper or desirable to carry into effect the purpose and intent of any and
      all
      of the foregoing resolutions, and that all actions heretofore taken by any
      officer or director of the Corporation in connection with the transactions
      contemplated by the agreements described herein are hereby approved, ratified
      and confirmed in all respects.

     

     

     

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
 

    IN
      WITNESS WHEREOF, the Board of
      Directors has executed and delivered this Consent effective as of __________,
      2007.

    

    

    

    ______________________

    

    ______________________

    

    ______________________

    

    

    

    

    being
      all
      of the directors of ____________

     

     

     

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

     

     

     

    EXHIBIT
      C-2

    

    FORM
      OF COMPANY RESOLUTIONS APPROVING REGISTRATION STATEMENT

    

    UNANIMOUS
      WRITTEN CONSENT OF

    

    Celsius
      Holdings, Inc.

    

    

    Pursuant
      to Section ______ of the _________, the undersigned, being all of the directors
      of Celsius Holdings, Inc., a Nevada corporation (the
“Corporation”) do hereby consent to and adopt the following resolutions
      as the
      action of the Board of Directors for and on behalf of the Corporation and hereby
      direct that this Consent be filed with the minutes of the proceedings of the
      Board of Directors.

    

    

    WHEREAS,
      there has been presented to
      the Board of Directors of the Corporation a Common Stock Purchase Agreement
      (the
“Purchase Agreement”) by and among the Corporation and Fusion Capital Fund II,
      LLC (“Fusion”), providing for the purchase by Fusion of up to Sixteen Million
      Dollars ($10,500,000.00) of the Corporation’s common stock, par value $0.001
      (the “Common Stock”); and

    

    WHEREAS,
      after careful consideration of
      the Purchase Agreement, the documents incident thereto and other factors deemed
      relevant by the Board of Directors, the Board of Directors has approved the
      Purchase Agreement and the transactions contemplated thereby and the Company
      has
      executed and delivered the Purchase Agreement to Fusion; and

    

    WHEREAS,
      in connection with the transactions contemplated pursuant to the Purchase
      Agreement, the Company has agreed to file a registration statement with the
      Securities and Exchange Commission (the “Commission”) registering the Signing
      Shares (as defined in the Purchase Agreement) and the Purchase Shares (as herein
      defined in the Purchase Agreement);

     

    WHEREAS,
      the management of the Corporation has prepared and presented to the Board of
      Directors the attached draft of a Registration Statement on Form
      SB-2  (the “Registration Statement”) in order to register the sale of
      the Purchase Shares and the Signing Shares (collectively, the “Shares”);
      and

     

    WHEREAS,
      the Board of Directors has determined to approve the Registration Statement
      and
      to authorize the appropriate officers of the Corporation to take all such
      actions as they may deem appropriate to effect the offering.

     

    NOW,
      THEREFORE, BE IT RESOLVED, that the officers and directors of the Corporation
      be, and each of them hereby is, authorized and directed, with the assistance
      of
      counsel and accountants for the Corporation, to prepare, execute and file with
      the Commission the Registration Statement, which Registration Statement shall
      be
      filed substantially in the form presented to the Board of Directors, with such
      changes therein as the Chief Executive Officer of the Corporation or any Vice
      President of the Corporation shall deem desirable and in the best interest
      of
      the Corporation and its shareholders (such officer’s execution thereof including
      such changes shall be deemed to evidence conclusively such determination);
      and

     

    

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

     

    FURTHER
      RESOLVED, that the officers of the Corporation be, and each of them hereby
      is,
      authorized and directed, with the assistance of counsel and accountants for
      the
      Corporation, to prepare, execute and file with the Commission all amendments,
      including post-effective amendments, and supplements to the Registration
      Statement, and all certificates, exhibits, schedules, documents and other
      instruments relating to the Registration Statement, as such officers shall
      deem
      necessary or appropriate (such officer’s execution and filing thereof shall be
      deemed to evidence conclusively such determination); and

     

    FURTHER
      RESOLVED, that the execution of the Registration Statement and of any amendments
      and supplements thereto by the officers and directors of the Corporation be,
      and
      the same hereby is, specifically authorized either personally or by the
      Authorized Officers as such officer’s or director’s true and lawful
      attorneys-in-fact and agents; and

     

    FURTHER
      RESOLVED, that the Authorized Officers are hereby designated as “Agent for
      Service” of the Corporation in connection with the Registration Statement and
      the filing thereof with the Commission, and the Authorized Officers hereby
      are
      authorized to receive communications and notices from the Commission with
      respect to the Registration Statement; and

     

    FURTHER
      RESOLVED, that the officers of the Corporation be, and each of them hereby
      is,
      authorized and directed to pay all fees, costs and expenses that may be incurred
      by the Corporation in connection with the Registration Statement;
      and

     

    FURTHER
      RESOLVED, that it is desirable and in the best interest of the Corporation
      that
      the Shares be qualified or registered for sale in various states; that the
      officers of the Corporation be, and each of them hereby is, authorized to
      determine the states in which appropriate action shall be taken to qualify
      or
      register for sale all or such part of the Shares as they may deem advisable;
      that said officers be, and each of them hereby is, authorized to perform on
      behalf of the Corporation any and all such acts as they may deem necessary
      or
      advisable in order to comply with the applicable laws of any such states, and
      in
      connection therewith to execute and file all requisite papers and documents,
      including, but not limited to, applications, reports, surety bonds, irrevocable
      consents, appointments of attorneys for service of process and resolutions;
      and
      the execution by such officers of any such paper or document or the doing by
      them of any act in connection with the foregoing matters shall conclusively
      establish their authority therefor from the Corporation and the approval and
      ratification by the Corporation of the papers and documents so executed and
      the
      actions so taken; and

     

    FURTHER
      RESOLVED, that if, in any state where the securities to be registered or
      qualified for sale to the public, or where the Corporation is to be registered
      in connection with the public offering of the Shares, a prescribed form of
      resolution or resolutions is required to be adopted by the Board of Directors,
      each such resolution shall be deemed to have been and hereby is adopted, and
      the
      Secretary is hereby authorized to certify the adoption of all such resolutions
      as though such resolutions were now presented to and adopted by the Board of
      Directors; and

     

               FURTHER
      RESOLVED, that the officers of the Corporation with the assistance of counsel
      be, and each of them hereby is, authorized and directed to take all necessary
      steps and do all other things necessary and appropriate to effect the listing
      of
      the Shares on the Nasdaq OTC Bulletin Board market, if any.

     

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

     

    Approval
      of Actions

     

    FURTHER
      RESOLVED, that, without limiting the foregoing, the Authorized Officers are,
      and
      each of them hereby is, authorized and directed to proceed on behalf of the
      Corporation and to take all such steps as are deemed necessary or appropriate,
      with the advice and assistance of counsel, to cause the Corporation to take
      all
      such action referred to herein and to perform its obligations incident to the
      registration, listing and sale of the Shares; and

     

    FURTHER
      RESOLVED, that the Authorized
      Officers be, and each of them hereby is, authorized, empowered and directed
      on
      behalf of and in the name of the Corporation, to take or cause to be taken
      all
      such further actions and to execute and deliver or cause to be executed and
      delivered all such further agreements, amendments, documents, certificates,
      reports, schedules, applications, notices, letters and undertakings and to
      incur
      and pay all such fees and expenses as in their judgment shall be necessary,
      proper or desirable to carry into effect the purpose and intent of any and
      all
      of the foregoing resolutions, and that all actions heretofore taken by any
      officer or director of the Corporation in connection with the transactions
      contemplated by the agreements described herein are hereby approved, ratified
      and confirmed in all respects.

    

    

    

    IN
      WITNESS WHEREOF, the Board of Directors has executed and delivered this Consent
      effective as of __________, 2007.

    

    

    

    ______________________

    

    ______________________

    

    ______________________

    

    

    being
      all
      of the directors of ____________

     

     

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

     

     

     

    EXHIBIT
      D

    

    FORM
      OF SECRETARY’S
      CERTIFICATE

    

    This
      Secretary’s Certificate
      (“Certificate”) is being delivered pursuant to Section 7(k) of that certain
      Common Stock Purchase Agreement dated as of __________, (“Common Stock Purchase
      Agreement”), by and between Celsius Holdings, Inc., a Nevada
      corporation (the “Company”) and Fusion Capital Fund II, LLC
      (the “Buyer”), pursuant to which the Company may sell to the Buyer up to Sixteen
      Million Dollars ($16,000,000) of the Company's Common Stock, par value $0.001
      per share (the "Common Stock").  Terms used herein and not otherwise
      defined shall have the meanings ascribed to them in the Common Stock Purchase
      Agreement.

    

    The
      undersigned, ____________,
      Secretary of the Company, hereby certifies as follows:

    

    1.           I
      am the Secretary of the Company and make the statements contained in this
      Secretary’s Certificate.

    

    2.           Attached
      hereto as Exhibit A and Exhibit B are true, correct and complete
      copies of the Company’s bylaws (“Bylaws”) and Certificate of Incorporation
      (“Articles”), in each case, as amended through the date hereof, and no action
      has been taken by the Company, its directors, officers or shareholders, in
      contemplation of the filing of any further amendment relating to or affecting
      the Bylaws or Articles.

    

    3.           Attached
      hereto as Exhibit C are true, correct and complete copies of the
      resolutions duly adopted by the Board of Directors of the Company on
      _____________, at which a quorum was present and acting
      throughout.  Such resolutions have not been amended, modified or
      rescinded and remain in full force and effect and such resolutions are the
      only
      resolutions adopted by the Company’s Board of Directors, or any committee
      thereof, or the shareholders of the Company relating to or affecting (i) the
      entering into and performance of the Common Stock Purchase Agreement, or the
      issuance, offering and sale of the Purchase Shares and the Signing Shares and
      (ii) and the performance of the Company of its obligation under the Transaction
      Documents as contemplated therein.

    

    4.           As
      of the date hereof, the authorized, issued and reserved capital stock of the
      Company is as set forth on Exhibit D hereto.

    

    IN
      WITNESS WHEREOF, I
      have hereunder signed my name on this ___ day of ____________.

    

                                                                            _________________________

                    Secretary

    

    

    The
      undersigned as ___________ of __________, a ________ corporation, hereby
      certifies that ____________ is the duly elected, appointed, qualified and acting
      Secretary of _________, and that the signature appearing above is his genuine
      signature.

    

                                                                           ___________________________________

     

     

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

     

     

     

     

    EXHIBIT
      E

    

    FORM
      OF LETTER TO THE TRANSFER AGENT FOR THE ISSUANCE OF THE COMMITMENTS SHARES
      AT
      SIGNING OF THE PURCHASE AGREEMENT

    

    

    

    

    [COMPANY
      LETTERHEAD]

    

    

    

    [DATE]

    

    [TRANSFER
      AGENT]

    __________________

    __________________

    __________________

    

    Re:
      Issuance of Common Shares to Fusion Capital Fund II, LLC

    

    Dear
      ________,

    

    On
      behalf
      of Celsius Holdings, Inc., (the “Company”), you are hereby
      instructed to issue as soon as
      possible 2,057,194 shares of our common stock
      in the name of Fusion Capital Fund II,
      LLC.  The share certificate should be dated [DATE OF THE
      COMMON STOCK PURCHASE AGREEMENT].  I have included a true and correct
      copy of a unanimous written consent executed by all of the members of the Board
      of Directors of the Company adopting resolutions approving the issuance of
      these
      shares.  The shares should be issued subject to the following
      restrictive legend:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
      IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
      APPLICABLE STATE SECURITIES LAWS.

     

     

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

     

    
 

    The
      share
      certificate should be sent as soon as possible via overnight
      mail to the following address:

    

    Fusion
      Capital Fund II, LLC

    222
      Merchandise Mart Plaza, Suite 9-112

    Chicago,
      IL 60654

    Attention:
      Steven Martin

    

    Thank
      you
      very much for your help.  Please call me at ______________ if you have
      any questions or need anything further.

    

    

    

    

    Celsius
      Holdings, Inc.

    

    

    BY:_____________________________

    [name]

    [title]

    
 

    38

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