Document:

Unassociated Document

    Exhibit
10.3

     

    ADVISORY
AGREEMENT

     

    THIS
ADVISORY AGREEMENT (“Agreement”) is made and entered into on this the 5th day of
November 2009, by and between Halter Financial Group, L.P. (“HFG”) and SMSA El
Paso II Acquisition Corp, a Nevada corporation (the “Company”).

     

    W I T N E
S S E T H:

     

    WHEREAS,
the Company desires to engage HFG to provide certain advisory and consulting
services as specifically enumerated below commencing as of the date hereof
related to Combination Transaction and the Post-Transaction Period (each as
hereinafter defined), and HFG is willing to be so engaged;

     

    NOW,
THEREFORE, for and in consideration of the covenants set forth herein and the
mutual benefits to be gained by the parties hereto, and other good and valuable
consideration, the receipt and adequacy of which are now and forever
acknowledged and confessed, the parties hereto hereby agree and intend to be
legally bound as follows:

     

    1.           Retention. As of the
date hereof, the Company hereby retains and HFG hereby agrees to be retained as
the Company’s advisor during the term of this Agreement.  The Company
acknowledges that HFG shall have the right to engage third parties to assist it
in its efforts to satisfy its obligations hereunder.  In its capacity
as an advisor to the Company, HFG will:

     

    
      	
               
      

            	
              A.

            	
              Going
      Public Transaction. HFG shall assist the Company in identifying
      possible merger candidates and evaluating the manner of effecting a
      combination transaction (a “Combination Transaction”) with a private
      corporation that is seeking to effect a combination transaction with a
      public shell corporation.

            

    

     

    
      	
               
      

            	
              B.

            	
              Post
      Transaction Period

            

    

     

    Upon consummation of the Combination
Transaction, HFG agrees to:

     

    (i)           provide
assistance and guidance in the preparation and assembly of application materials
for the listing of the Company’s common capital stock on a national exchange or
quotation medium that may include, but shall not necessarily be limited to the
NYSE AMEX or the NASDAQ Stock Market; and

     

    (ii)           provide
such other assistance as shall be mutually agreed upon by the parties
hereto.

     

    2.           Authorization.  Subject
to the terms and conditions of this Agreement, the Company hereby appoints HFG
to act on a best efforts basis as its consultant until the Termination Date (as
hereinafter defined).  HFG hereby accepts such appoint, with it being
expressly acknowledged that HFG is acting in the capacity of independent
contractor and not as agent of either the Company.

     

    
      
         

      

      
        ADVISORY
AGREEMENT - Page 1

        
          

        

      

      
         

      

    

     

    3.           Authorization
Period.  HFG’s engagement hereunder shall become effective on
the date hereof (the “Effective Date”) and will automatically terminate (the
“Termination Date”) 12 months from the Effective Date.  This Agreement
may be extended beyond the Termination Date if both parties mutually agree in
writing.

     

    4.           Fees and
Expenses.  On or before December 15, 2009, the Company shall
deliver to HFG a fee of $250,000 to be paid via wire transferred
funds.

     

    In addition, the Company shall
reimburse HFG for all documented travel and lodging expenses incurred by HFG
personnel during the term of this Agreement within 10 days of submission to the
Company by HFG of documentation evidencing the expenses incurred. .

     

    5.           Miscellaneous.

    

    5.1           This
Agreement shall be construed without regard to any presumption or other rule
requiring construction against the party causing such instrument to be
drafted.  The terms “hereby,” “hereof,” “hereunder,” and any similar
terms, as used in this Agreement, refer to the Agreement in its entirety and not
only to the particular portion of this Agreement where the term is
used.  The word “person” shall mean any natural person, partnership,
corporation, government and any other form of business of legal
entity.  All words or terms used in this Agreement, regardless of the
number or gender in which they were used, shall be deemed to include any other
number and any other gender as the context may require.  This
Agreement shall not be admissible in evidence to construe the provisions of any
prior agreement.

    

    5.2           This
Agreement and the rights and obligations hereunder of the parties to this
Agreement may not be assigned.  This Agreement shall be binding upon
and inure to the benefit of each party’s respective successors, heirs and
permitted assigns.  No other person shall acquire or have any rights
under or by virtue of this Agreement. This Agreement may not be changed orally
or modified, amended or supplemented without an express written agreement
executed by the parties hereto.  This Agreement is intended to be for
the sole benefit of the parties hereto and their respective successors, heirs
and permitted assigns, and none of the provisions of this Agreement are intended
to be, nor shall they be construed to be, for the benefit of any third
person.

    

    5.3           This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of Texas.  The headings in this Agreement are for
purposes of reference only and shall not limit or otherwise affect any of the
terms thereof.

    

    6.           Execution of
Counterparts.  This Agreement may be executed in a number of
counterparts, by facsimile, each of which shall be deemed to be an original as
of those whose signature appears thereon, and all of which shall together
constitute one and the same instrument.  This Agreement shall become
binding when one or more of the counterparts hereof, individually or taken
together, are signed by all the parties.

     

    
      
         

      

      
        ADVISORY
AGREEMENT - Page 2

        
          

        

      

      
         

      

    

     

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

     

    
      
        	 	HFG:	 
	 	 	 
	 	Halter Financial Group,
      L.P.	 
	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Timothy P. Halter 	 
	 	Name:  Timothy
      P. Halter,	 
	 	Its: Chairman	 

      

    

     

     

    
      	
            	The
      Company:	 
	 	 	 
	 	SMSA El Paso II
      Acquisition Corp.	 
	 	 	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/ Gerard Pascale	 
	 	Name:  Gerard
      Pascale	 
	 	Its:  President	 

    

     

    
      
         

      

      
        ADVISORY
AGREEMENT - Page 3Unassociated Document

    Exhibit
10.4

    

    ESCROW
AGREEMENT

     

    This Escrow Agreement, dated as of
November 5, 2009 (this “Agreement”), is entered into
by and among SMSA El Paso II Acquisition Corp, Inc., a Nevada corporation (the
“Company”), Michael
Campbell, an individual residing in Tustin, California (the “Escrowing Party”), Halter
Financial Group, L.P., a Texas limited partnership (“HFG”), and Securities Transfer
Corporation, with its principal offices located at 2591 Dallas Parkway, Suite
102, Frisco, TX 75034 (the “Escrow Agent”).

     

    WITNESSETH:

    

    WHEREAS, the Escrowing Party is the
holder of 20 million shares  (the “Escrowed Shares”) of the
Company’s common stock, par value $.001 per share, and

    

    WHEREAS, pursuant to the terms of that
certain Advisory Agreement, dated as of even date, and entered into by the
Company and HFG, a copy of which is attached hereto as Exhibit “A”, the Company is
obligated to pay to HFG the amount of $250,000 (the “Fee”) on or before December
15, 2009 (the “Payment
Date”); and

    

    WHEREAS, to secure the payment of the
Fee the Escrowing Party desires to deposit the Escrowed Shares with the Escrow
Agent, to be held in escrow until their release in accordance with the terms
hereof; and

    

    WHEREAS, Escrow Agent is willing to
hold the Escrowed Shares in escrow subject to the terms and conditions of this
Agreement.

    

    NOW, THEREFORE, in consideration of the
mutual promises herein contained and intending to be legally bound, the parties
hereby agree as follows:

    

    1.           
Appointment of Escrow
Agent.  The Company, the Escrowing Party and HFG hereby appoint
Escrow Agent as escrow agent in accordance with the terms and conditions set
forth herein and the Escrow Agent hereby accepts such appointment.

    

    2.           
Delivery of the
Escrowed Shares.  On the date hereof, the Escrowing Party shall
deliver to the Escrow Agent a stock certificate evidencing the Escrowed Shares
along with a Medallion Guaranteed Stock Power executed in blank.

    

    3.           
Escrow Agent to Hold
and Disburse Escrowed Shares.  The Escrow Agent will hold and
disburse the Escrowed Shares pursuant to the terms of this Agreement, as
follows:

    

    3.1           Upon
receipt of written evidence from a third party bank or written confirmation from
HFG that the Fee was paid prior to the Payment Date, the Escrow Agent shall
release the Escrowed Shares to the Escrowing Party.

    

    3.2           In
the event the Escrow Agent does not receive evidence of payment of the Fee prior
to the Payment Date, the Escrow Agent shall deliver the Escrowed Shares to HFG
upon the receipt of written instruction from HFG requesting the delivery of
same. If HFG receives the Escrowed Shares, SMSA shall return to the Escrowing
Party the amount of $20,000 representing the amount paid by the Escrowing Party
for the Escrowed Shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     The parties also authorizes the
Escrow Agent, if it receives conflicting claims to the Escrowed Shares, to
interplead all interested parties in any court of competent jurisdiction and to
deposit the Escrowed Shares with the clerk of that court and thereupon the
Escrow Agent shall be fully relieved and discharged of any further
responsibility hereunder to the parties from which they were
received.

     

    4.           
Exculpation and
Indemnification of Escrow Agent.

    

    4.1           The
Escrow Agent shall have no duties or responsibilities other than those expressly
set forth herein.  The Escrow Agent shall have no duty to enforce any
obligation of any person other than itself to make any payment or delivery, or
to direct or cause any payment or delivery to be made, or to enforce any
obligation of any person to perform any other act.  The Escrow Agent
shall be under no liability to the other parties hereto or anyone else, by
reason of any failure, on the part of any other party hereto or any maker,
guarantor, endorser or other signatory of a document or any other person, to
perform such person’s obligations under any such document.  Except for
amendments to this Agreement referenced below, and except for written
instructions given to the Escrow Agent relating to the Escrowed Shares, the
Escrow Agent shall not be obligated to recognize any agreement between or among
any of the parties hereto, notwithstanding that references hereto may be made
herein and whether or not it has knowledge thereof.

    

    4.2           The
Escrow Agent shall not be liable to the parties hereto or to anyone else for any
action taken or omitted by it, or any action suffered by it to be taken or
omitted, in good faith and acting upon any order, notice, demand, certificate,
opinion or advice of counsel (including counsel chosen by the Escrow Agent),
statement, instrument, report, or other paper or document (not only as to its
due execution and the validity and effectiveness of its provisions, but also as
to the truth and acceptability of any information therein contained), which is
believed by the Escrow Agent to be genuine and to be signed or presented by the
proper person or persons.  The Escrow Agent shall not be bound by any
of the terms thereof, unless evidenced by written notice delivered to the Escrow
Agent signed by the proper party or parties and, if the duties or rights of the
Escrow Agent are affected, unless it shall give its prior written consent
thereto.

    

    4.3           The
Escrow Agent shall not be responsible for the sufficiency or accuracy of the
form, or of the execution, validity, value or genuineness of, any document or
property received, held or delivered to it hereunder, or of any signature or
endorsement thereon, or for any lack of endorsement thereon, or for any
description therein; nor shall the Escrow Agent be responsible or liable to the
other parties hereto, or to anyone else in any respect on account of the
identity, authority or rights, of the person executing or delivering or
purporting to execute or deliver any document or property or this Agreement. The
Escrow Agent shall have no responsibility with respect to the use or application
of the Escrowed Shares pursuant to the provisions hereof.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    4.4           The
Escrow Agent shall have the right to assume, in the absence of written notice to
the contrary from the proper person or persons, that a fact or an event, by
reason of which an action would or might be taken by the Escrow Agent, does not
exist or has not occurred, without incurring liability to the other parties
hereto or to anyone else for any action taken or omitted to be taken or omitted,
in good faith and in the exercise of its own best judgment, in reliance upon
such assumption.

    

    4.5           The
Escrow Agent will be indemnified and held harmless by the other parties hereto
from and against all expenses, including all reasonable counsel fees and
disbursements, or loss suffered by the Escrow Agent in connection with any
action, suit or proceedings involving any claim, or in connection with any claim
or demand, which in any way, directly or indirectly, arises out of or relates to
this Agreement, the services of the Escrow Agent hereunder, except for claims
relating to gross negligence or willful misconduct by Escrow Agent or breach of
this Agreement by the Escrow Agent, or the property held by it
hereunder.

    

    4.6           For
purposes hereof, the term “expense or loss” shall include all amounts paid or
payable to satisfy any claim, demand or liability, or in settlement of any
claim, demand, action, suit or proceeding settled with the express written
consent of the Escrow Agent, and all costs and expenses, including, but not
limited to, reasonable counsel fees and disbursements, paid or incurred in
investigating or defending against any such claim, demand, action, suit or
proceeding.

    

    5.           
Termination of
Agreement and Resignation of Escrow Agent.

    

    5.1           This
Agreement shall terminate upon disbursement of all of the Escrowed
Shares.

    

    5.2           The
Escrow Agent may resign at any time and be discharged from its duties as Escrow
Agent hereunder by giving the other parties at least five (5) business days
written notice thereof (the “Notice
Period”).  Upon providing such
notice, the Escrow Agent shall have no further obligation hereunder except to
hold as depositary the Escrowed Shares that it receives until the end of such
five Business Day period.  In such event, the Escrow Agent shall not
take any action until the Company has designated a banking corporation, trust
company, attorney or other person as successor. As soon as practicable after its
resignation, the Escrow Agent shall, if it receives notice from the Company
within the Notice Period, turn over to a successor escrow agent appointed by the
Company all Escrowed Shares upon presentation of the document appointing the new
escrow agent and its acceptance thereof.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    6.           
Compensation.  HFG
shall pay a documentation fee to the Escrow Agent of $10.00.

    

    7.           
Representations of
HFG.   HFG hereby represents and warrants to Escrowing
Party that as of the date that Escrowing Party acquired the Escrowed Shares from
the Company, the Company had no assets and no liabilities, and that all amounts
owed to HFG and its affiliates as reflected in the Company’s periodic reports as
filed with the U.S. Securities and Exchange Commission have been forgiven as a
result of the contribution of same to the paid in capital of the Company. This
representation and warranty shall survive for a period of twelve months
following the date of the release of the Escrowed Shares to Escrowing
Party.

    

    8.           
Notices.  All
notices, requests, demands, and other communications provided herein shall be in
writing, shall be delivered by hand or by first-class mail, shall be deemed
given when received and shall be addressed to parties hereto at their respective
addresses first set forth on the signature page hereof.

    

    9.           
Consent to Service of
Process.  The parties hereby irrevocably consent to the
jurisdiction of the courts of the State of New York and of any Federal court
located in such state in connection with any action, suit or proceedings arising
out of or relating to this Agreement or any action taken or omitted hereunder,
and waives personal service of any summons, complaint or other process and
agrees that the service thereof may be made by certified or registered mail
directed to it at the address listed on the signature page hereof.

    

    10.           
Miscellaneous.

    

    10.1           This
Agreement shall be construed without regard to any presumption or other rule
requiring construction against the party causing such instrument to be
drafted.  The terms “hereby,” “hereof,” “hereunder,” and any similar
terms, as used in this Agreement, refer to the Agreement in its entirety and not
only to the particular portion of this Agreement where the term is
used.  The word “person” shall mean any natural person, partnership,
corporation, government and any other form of business of legal
entity.  All words or terms used in this Agreement, regardless of the
number or gender in which they were used, shall be deemed to include any other
number and any other gender as the context may require.  This
Agreement shall not be admissible in evidence to construe the provisions of any
prior agreement.

    

    10.2           This
Agreement and the rights and obligations hereunder of the parties to this
Agreement may not be assigned.  This Agreement shall be binding upon
and inure to the benefit of each party’s respective successors, heirs and
permitted assigns.  No other person shall acquire or have any rights
under or by virtue of this Agreement. This Agreement may not be changed orally
or modified, amended or supplemented without an express written agreement
executed by the Escrow Agent and the Escrowing Parties.  This
Agreement is intended to be for the sole benefit of the parties hereto and their
respective successors, heirs and permitted assigns, and none of the provisions
of this Agreement are intended to be, nor shall they be construed to be, for the
benefit of any third person.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    10.3           This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of New York. The representations and warranties contained in
this Agreement shall survive the execution and delivery hereof and any
investigations made by any party.  The headings in this Agreement are
for purposes of reference only and shall not limit or otherwise affect any of
the terms thereof.

    

    11.           Execution of
Counterparts.  This Agreement may be executed in a number of
counterparts, by facsimile, each of which shall be deemed to be an original as
of those whose signature appears thereon, and all of which shall together
constitute one and the same instrument.  This Agreement shall become
binding when one or more of the counterparts hereof, individually or taken
together, are signed by all the parties.

    

    

    IN WITNESS WHEREOF, the parties have
executed and delivered this Agreement on the day and year first above
written.

    

    

    ESCROW
AGENT:

    

    SECURITIES
TRANSFER CORPORATION

    Securities
Transfer Corporation

    2591
Dallas Parkway, Suite 102

    Frisco,
TX 75034

    Telephone:
(469) 033-0101

    Attention:
Kevin B. Halter Jr.

    Telephone:
(972) 963-0001 Fax: (469) 633 0088

    Email
kevinjr@stctransfer.com

    

    

    By:   /s/ Kevin
B. Halter Jr.

       Kevin
B. Halter Jr., President

     

    

    HFG:

     

    Halter
Financial Group, L.P.

     

     

    By:   /s/
Timothy P. Halter 

    Timothy
P. Halter, Chairman

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     
COMPANY:

     

     

    
       
SMSA
El Paso II Acquisition Corp.

    

     

    

    
       
By:            /s/
Michael
Campbell       

    

    
       
      Name:
Michael Campbell

    

    
       
      Title:   President

    

    

    

    

    
       
ESCROWING
PARTY:

    

    

    
       
By:             /s/
Michael Campbell      

    

    
       
      Name:  Michael
Campbell

    

     

    
      
         

      

      
        6

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