Document:

fs1nov09ex10xxix_celsius.htm

    EXHIBIT
10.6

     

    CELSIUS
HOLDINGS, INC.

     

    AUDIT
COMMITTEE CHARTER

     

    November
6, 2009

     

    Purpose

     

     

    The Audit
Committee is appointed by the Board of Directors (the “Board”)
of Celsius Holdings, Inc. (the “Corporation”)
to assist the Board in overseeing (1) the accounting and financial reporting
processes of the Corporation, the audits of the Corporation’s financial
statements and the integrity of the Corporation’s financial statements, (2) the
independent auditor’s qualifications and independence, (3) the performance of
the Corporation’s internal audit function and independent auditors, (4) the
effectiveness of the Corporation’s internal control structure, and (5) the
compliance by the Corporation with significant legal and regulatory
requirements.

     

    The Audit
Committee shall prepare the report required by the rules of the Securities and
Exchange Commission (the “Commission”)
to be included in the Corporation’s annual proxy statement.

     

    Guiding Principles and Limitation of
Committee’s Role

     

    The Audit
Committee is dedicated to fostering a proper control structure in the
Corporation, from the environment in which the controls operate to the
activities that are performed on a daily basis. The Audit Committee will support
management and the Corporation's internal audit function to assess, develop,
implement and monitor controls over critical business processes to promote
effective and efficient operations, reliable financial reporting, compliance
with laws and regulations and the safeguarding of the Corporation's
assets.

     

    With
regard to financial reporting, the guiding principles to be considered by the
Audit Committee in carrying out its responsibilities in reviewing a particular
matter shall include consideration of (1) whether the financial statements
fairly present the results of operations of the Corporation in accordance with
generally accepted accounting principles; (2) whether the treatment of the
matter is consistent with the Corporation's practices in prior accounting
periods; (3) whether the presentation of the matter is reasonably comprehensive
under the circumstances; (4) whether the disclosure regarding the matter
contains any material misstatement or fails to disclose a matter which
reasonably would be considered material to the Corporation's stakeholders; and
(5) whether the presentation varies in a material way from principles of
convention or conservatism.

     

    While the
Audit Committee has the responsibilities and powers set forth in this Charter,
it is not the duty of the Audit Committee to plan or conduct audits or to
determine that the Corporation’s financial statements and disclosures are
complete and accurate and are in accordance with generally accepted accounting
principles and applicable rules and regulations. These are the responsibilities
of management and the independent auditor.

     

    Committee
Membership

     

    The Audit
Committee shall consist of no fewer than three members. The members of the Audit
Committee shall satisfy the independence requirements of the NASDAQ Stock Market
(“NASDAQ”)

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    and the
Securities Exchange Act of 1934 (the “Exchange
Act”) and the rules and regulations of the Commission, in each case with
respect to audit committees. All members of the Audit Committee shall be able to
read and understand fundamental financial statements. In addition, members of
the Audit Committee may not have participated in the preparation of the
financial statements of the Corporation or any current subsidiary of the
Corporation at any time during the past three years. At least one member of the
Audit Committee shall be an “audit committee financial expert” as defined by the
Commission. The name of such audit committee financial expert shall be disclosed
in the Corporation’s filings with the Commission.

     

    The
members of the Audit Committee shall be appointed by the Board. Audit Committee
members may be replaced by the Board.

     

    Meetings

     

    The Audit
Committee shall meet as often as it determines necessary, but not less
frequently than quarterly. The Audit Committee shall meet periodically with
management, the internal auditors and the independent auditor in separate
executive sessions, and shall meet no less frequently than twice per year in
executive sessions composed solely of members of the Audit Committee. The Audit
Committee may request any officer or employee of the Corporation or the
Corporation’s outside counsel or independent auditor to attend a meeting of the
Committee or to meet with any members of, or consultants to, the
Committee.

     

    Committee Authority and
Responsibilities

     

    The Audit
Committee shall have the sole authority to appoint, determine funding for,
retain, terminate and oversee the outside auditors (subject, if applicable, to
shareholder ratification). The Audit Committee shall be directly responsible for
the compensation and oversight of the work of the independent auditor (including
resolution of disagreements between management and the independent auditor
regarding financial reporting) for the purpose of preparing or issuing an audit
report or related work. The independent auditor shall report directly to the
Audit Committee.

     

    The Audit
Committee shall pre-approve all auditing services and permitted non-audit
services (including the fees and terms thereof) to be performed for the
Corporation by its independent auditor, as required by applicable law and
Commission rules. The Audit Committee may form and delegate authority to
subcommittees consisting of one or more members when appropriate, including the
authority to grant pre-approvals of audit and permitted non-audit services,
provided that decisions of such subcommittee to grant pre-approvals shall be
presented to the full Audit Committee at its next scheduled
meeting.

     

    The Audit
Committee shall have the authority, to the extent it deems necessary or
appropriate, to engage and determine funding for independent legal, accounting
or other advisors. The Corporation shall provide for appropriate funding, as
determined by the Audit Committee, for payment of compensation to the
independent auditor for the purpose of rendering or issuing an audit report or
performing other audit, review or attest services for the Corporation and to any
advisors employed by the Audit Committee, as well as funding for the payment of
ordinary administrative expenses of the Audit Committee that are necessary or
appropriate in carrying out its duties.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The Audit
Committee shall make regular reports to the Board. The Audit Committee shall
review and reassess the adequacy of this Charter annually and recommend any
proposed changes to the Board for approval.

     

    The Audit
Committee, to the extent it deems necessary or appropriate, shall:

     

    Financial Statement and Disclosure
Matters

     

    
      	
              1.  

            	
              Review
      and discuss with management and the independent auditor the annual audited
      financial statements, including disclosures made in management’s
      discussion and analysis, and recommend to the Board whether the audited
      financial statements should be included in the Corporation’s Form
      10-K.

            

    

     

    
      	
              2.  

            	
              Review
      and discuss with management and the independent auditor the Corporation’s
      quarterly financial statements prior to the filing of its Form 10-Q,
      including the results of the independent auditor’s review of the quarterly
      financial statements.

            

    

     

    
      	
              3.  

            	
              Discuss
      with management and the independent auditor significant financial
      reporting issues and judgments made in connection with the preparation of
      the Corporation’s financial statements, including any significant changes
      in the Corporation’s selection or application of accounting
      principles.

            

    

     

    
      	
              4.  

            	
              Review
      and discuss quarterly reports from the independent auditors
      on:

            

    

     

    (a) All
critical accounting policies and practices to be used.

     

    (b) All
alternative treatments of financial information within generally accepted
accounting principles related to material items that have been discussed with
management, ramifications of the use of such alternative disclosures and
treatments, and the treatment preferred by the independent auditor.

     

    (c) Other
material written communications between the independent auditor and management,
such as any management letter or schedule of unadjusted
differences.

     

    
      	
              5.  

            	
              Discuss
      with management the Corporation’s earnings press releases, including the
      use of “pro forma” or “adjusted” non-GAAP information, as well as
      financial information and earnings guidance provided to analysts and
      rating agencies. Such discussion may be done generally (consisting of
      discussing the types of information to be disclosed and the types of
      presentations to be made).

            

    

     

    
      	
              6.  

            	
              Discuss
      with management and the independent auditor the effect of regulatory and
      accounting initiatives as well as off-balance sheet structures on the
      Corporation’s financial statements.

            

    

     

    
      	
              7.  

            	
              Discuss
      with management the Corporation’s major financial risk exposures and the
      steps management has taken to monitor and control such exposures,
      including the Corporation’s risk assessment and risk management
      policies.

            

    

     

    
      	
              8.  

            	
              Discuss
      with the independent auditor the matters required to be discussed by
      Statement on Auditing Standards No. 61 relating to the conduct of the
      audit, including any difficulties encountered in the course of the audit
      work, any restrictions on the scope of activities or access to requested
      information, and any significant disagreements with
      management.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              9.  

            	
              Ensure
      that a public announcement of the Corporation’s receipt of an audit
      opinion that contains a going concern qualification is made
      promptly.

            

    

     

    
      	
              10.  

            	
              Review
      and discuss with management and the independent auditor the Corporation’s
      disclosure controls and procedures.

            

    

     

    
      	
              11.  

            	
              Review
      significant new, or changes to existing, accounting, financial, external
      reporting and asset-safeguarding policies and
  practices.

            

    

     

    Oversight of the Corporation’s
Relationship with the Independent Auditor

     

    
      	
              12.  

            	
              Review
      and evaluate the lead partner of the independent auditor
    team.

            

    

     

     

    
      	
              13.  

            	
              Obtain
      and review a report from the independent auditor at least annually
      regarding (a) the independent auditor’s internal quality-control
      procedures, (b) any material issues raised by the most recent internal
      quality-control review, or Public Corporation Accounting Oversight Board
      (“PCAOB”) review, of the firm, or by any inquiry or investigation by
      governmental or professional authorities within the preceding five years
      respecting one or more independent audits carried out by the firm, (c) any
      steps taken to deal with any such issues, and (d) all relationships
      between the independent auditor and the Corporation. Evaluate the
      qualifications, performance and independence of the independent auditor,
      including considering whether the auditor’s quality controls are adequate
      and the provision of permitted non-audit services is compatible with
      maintaining the auditor’s independence, taking into account the opinions
      of management and internal auditors. The Audit Committee shall present its
      conclusions with respect to the independent auditor to the
      Board.

            

    

     

    
      	
              14.  

            	
              Obtain
      from the independent auditor a formal written statement delineating all
      relationships between the independent auditor and the Corporation. It is
      the responsibility of the Audit Committee to actively engage in a dialogue
      with the independent auditor with respect to any disclosed relationships
      or services that may impact the objectivity and independence of the
      auditor and for purposes of taking, or recommending that the full board
      take, appropriate action to oversee the independence of the outside
      auditor.

            

    

     

    
      	
              15.  

            	
              Ensure
      the rotation of the audit partners if and as required by law, and consider
      whether, in order to assure continuing auditor independence, it is
      appropriate to adopt a policy of rotating the independent auditing firm on
      a regular basis.

            

    

     

    
      	
              16.  

            	
              Recommend
      to the Board policies for the Corporation’s hiring of employees or former
      employees of the independent auditor who participated in any capacity in
      the audit of the Corporation.

            

    

     

    
      	
              17.  

            	
              Discuss
      with the independent auditor material issues on which the national office
      of the independent auditor was consulted by the Corporation’s audit
      team.

            

    

     

    
      	
              18.  

            	
              Meet
      with the independent auditor prior to the audit to discuss the planning
      and staffing of the audit.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Effectiveness of Internal
Controls

     

    
      	
              19.  

            	
              Review
      and discuss with management, the senior internal auditing executive and
      the independent auditor management’s plan for establishing and maintaining
      internal controls, the framework used to evaluate its control structure
      and management’s subsequent assessment of the effectiveness of the
      internal controls.

            

    

     

    
      	
              20.  

            	
              Review
      and discuss with management, the senior internal auditing executive and
      the independent auditor disclosures made to the Audit Committee by the
      Corporation’s CEO and CFO during their certification process for the Form
      10-K and Form 10-Q about any significant deficiencies in the design or
      operation of internal controls or material weaknesses therein and any
      fraud involving management or other employees who have a significant role
      in the Corporation’s internal
controls.

            

    

     

    
      	
              21.  

            	
              Review
      and discuss with management and the independent auditor any major issues
      as to the adequacy of the Corporation’s internal controls, any special
      steps adopted in light of material or significant control deficiencies and
      the adequacy of disclosures about changes in internal control over
      financial reporting.

            

    

     

    
      	
              22.  

            	
              Review
      and discuss with management and the independent auditor the Corporation’s
      internal controls report prior to the filing of the Corporation’s Form
      10-K.

            

    

     

    Compliance Oversight
Responsibilities

     

    
      	
              26.  

            	
              Obtain
      from the independent auditor assurance that Section 10A (b) of the
      Exchange Act has not been
implicated.

            

    

     

    
      	
              27.  

            	
              Obtain
      reports from management, the Corporation’s senior internal auditing
      executive and the independent auditor that the Corporation and its
      subsidiary/foreign affiliated entities are in conformity with applicable
      legal requirements and the Corporation’s Code of Conduct Advise the Board
      with respect to the Corporation’s policies and procedures regarding
      compliance with applicable laws and regulations and with the Corporation’s
      Code of Conduct.

            

    

     

    
      	
              28.  

            	
              To
      the extent required by NASDAQ rules, approve all related party
      transactions.

            

    

     

    
      	
              29.  

            	
              Establish
      procedures for the receipt, retention and treatment of complaints received
      by the Corporation regarding accounting, internal accounting controls or
      auditing matters, and the confidential, anonymous submission by employees
      of concerns regarding questionable accounting or auditing
      matters.

            

    

     

    
      	
              30.  

            	
              Discuss
      with management and the independent auditor any correspondence with
      regulators or governmental agencies and any published reports which raise
      material issues regarding the Corporation’s financial statements or
      accounting policies.

            

    

     

    
      	
              31.  

            	
              Discuss
      with the Corporation’s General Counsel legal matters that may have a
      material impact on the financial statements or the Corporation’s
      compliance policies.fs1nov09ex10xxx_celsius.htm

    Exhibit
10.7

     

    CELSIUS
HOLDINGS, INC.

     

    COMPENSATION
COMMITTEE CHARTER

     

    NOVEMBER
6, 2009

     

    Purpose

     

    The
purpose of the Compensation Committee (the "Committee")
of the Board of Directors (the "Board")
of Celsius Holdings, Inc. (the "Corporation")
shall be to evaluate and approve and recommend officer and director compensation
arrangements, plans, policies and programs of the Corporation, and to administer
the Corporation's equity-based compensation plans for employees, whether adopted
prior to or after the date of adoption of this Charter.

     

    Composition
of the Compensation Committee

     

    The
Committee will be appointed by, and shall serve at the discretion of, the Board,
and will consist of not fewer than two members of the Board, with the exact
number being determined by the Board. Each of the members of the Committee will
be:

     

    
      	
              ·  

            	
              an
      "independent director" as defined under the applicable rules and
      regulations of The NASDAQ Stock Market, as amended from time to time (the
      "Rules"),
      except as may otherwise be permitted by such
  Rules;

            

    

     

    
      	
              ·  

            	
              a
      "non-employee director," as defined in Rule 16b-3 under Section 16 of the
      Securities Exchange Act of 1934, as amended (the "Exchange
      Act"); and

            

    

     

    
      	
              ·  

            	
              an
      "outside director" under Regulation Section 1.162-27 promulgated under
      Section 162(m) of the Internal Revenue Code of 1986, as
      amended.

            

    

     

    Unless a
Chairperson of this Committed is elected by the Board, the members of this
Committee may designate a Chairperson.

     

    Responsibilities

     

    The
following shall be the principal recurring duties of the Committee in carrying
out its responsibilities. These duties are set forth as a guide with the
understanding that the Committee may supplement them as appropriate and may
establish policies and procedures from time to time that it deems necessary or
advisable in fulfilling its responsibilities under this Charter, the
Corporation's By-Laws and governing law.

     

    
      	
              1.  

            	
              The
      Committee will have the authority to determine and approve and recommend
      the form and amount of compensation to be paid or awarded to the
      Corporation's officers, including executive officers as defined under
      Section 16 of the Exchange Act and the rules promulgated thereunder
      ("Executive
      Officers"). Without limiting the foregoing, the Committee will
      annually review and approve the corporate goals and objectives relevant to
      the compensation of the Chief Executive Officer ("CEO")
      and the Corporation's other Executive Officers. The Committee shall have
      the authority to make decisions respecting (i) CEO and Executive Officer
      employment and severance contracts and arrangements, (ii) salary paid to
      the CEO and Executive Officers, (iii) the grant of all cash-based bonuses
      and equity-based compensation to the CEO and Executive Officers, (iv) the
      entering into or amendment or extension of any employment contract or
      similar arrangement with the CEO and Executive Officers, (v) any
      

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      
        	
                  

              	
                CEO
      and Executive Officers severance or change in control arrangement, and
      (vi) any other CEO and Executive Officers compensation matters as from
      time to time directed by the Board. The Committee shall take account of
      the recommendations of the Corporation's CEO for other Executive Officers
      with respect to each of the foregoing items. The Committee may delegate
      authority to subcommittees of the Committee or to Executive Officers with
      respect to compensation determinations for persons who are not Executive
      Officers.

              

      

       

    

    
      	
              2.  

            	
              The
      Committee will have the authority to determine the form and amount of cash
      and equity compensation to be paid or awarded to the Corporation's
      non-employee directors, including compensation for service on the Board or
      on committees of the Board.

            

    

     

    
      	
              3.  

            	
              The
      Committee will annually review and make recommendations to the Board with
      respect to adoption and approval of, or amendments to, all cash-based and
      equity-based incentive compensation plans and arrangements, and the
      amounts and shares reserved thereunder after taking into consideration the
      Corporation's strategies with respect to short and long-term cash and
      equity-based compensation.

            

    

     

    
      	
              4.  

            	
              The
      Committee will: (i) approve grants of stock, stock options or stock
      purchase rights to individuals eligible for such grants (including grants
      in compliance with Rule 16b-3 promulgated under the Exchange Act to
      Executive Officers); (ii) interpret the Corporation's equity-based
      compensation plans and agreements thereunder; and (iii) determine
      acceptable forms of consideration for stock acquired pursuant to the
      Corporation's equity-based incentive compensation plans. The Committee may
      delegate to the Corporation's Chief Executive Officer the authority to
      approve options to employees of the Corporation or of any subsidiary of
      the Corporation who are not directors of the Corporation or Executive
      Officers, provided that such options are to purchase fewer than 100,001
      shares in any one year period, and provided further, that the price per
      share is no less than the fair market value of the Corporation's common
      stock on the date of grant.

            

    

     

    
      	
              5.  

            	
              The
      Committee will periodically review the Corporation's procedures with
      respect to employee loans, and will not approve any arrangement in which
      the Corporation, directly or indirectly, extends or maintains credit,
      arranges for the extension of credit or renews an extension of credit, in
      the form of a personal loan to or for any director of the Corporation or
      any Executive Officer (or equivalent thereof) of the Corporation. The
      Committee will assist the Board and management of the Corporation in
      complying with this prohibition.

            

    

     

    
      	
              6.  

            	
              The
      Committee will meet with the Corporation's Chief Executive Officer within
      90 days after the commencement of each fiscal year to discuss the
      incentive compensation programs to be in effect for the Corporation's
      Executive Officers for such fiscal year and the corporate goals and
      objectives relevant to those
programs.

            

    

     

    
      	
              7.  

            	
              The
      Committee will prepare an annual report on executive compensation to the
      Corporation's stockholders for inclusion in the proxy statement for the
      Corporation's annual meeting in accordance with the rules and regulations
      of the Securities and Exchange
Commission.

            

    

     

    
      	
              8.  

            	
              The
      Committee will review this Charter periodically and recommend to the Board
      any changes it determines are
appropriate.

            

    

     

    
      	
              9.  

            	
              The
      Committee will have the authority and right, at the expense of the
      Corporation, to retain and terminate compensation consultants, legal
      counsel and other advisors of its choosing to assist the Committee in
      connection with its functions. The Committee shall have the sole
      

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

          

    
       

      
        	
                  

              	
                authority
      to approve the fees and other retention terms of such consultants and
      advisors. The Corporation shall provide for appropriate funding, as
      determined by the Committee, for payment of compensation to any such
      advisors employed by the Committee pursuant to this Charter or the
      commission of any necessary studies or surveys concerning the levels of
      executive compensation payable in the industry in which the Corporation is
      engaged and in other related industries and to obtain recommendations from
      outside consultants concerning compatible pay programs, as
      appropriate.

              

      

       

    

    
      	
              10.  

            	
              The
      Committee will perform any other activities required by applicable law,
      rules or regulations, including the rules of the Securities and Exchange
      Commission and any exchange or market on which the Corporation's capital
      stock is traded, and perform other activities that are consistent with
      this Charter, the Corporation's Certificate of Incorporation and Bylaws,
      and applicable laws, rules or regulations as the Committee, any other
      committee of the Board or the Board deems necessary or
      appropriate.

            

    

     

    Proxy
Statement Disclosures

     

    The
Committee will be responsible for annually providing a report in the
Corporation's proxy statement in accordance with the requirements of Schedule
14A of the proxy rules.

     

    Meetings,
Minutes and Reports to the Board

     

    The
Committee will meet in response to the needs of the Board or as otherwise
determined by the Chairperson of the Committee.

     

    The
Committee will maintain written minutes of its meetings. The Committee will make
regular reports to the Board.

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