Document:

Exhibit 10.15 

ESCROW AGREEMENT 

        THIS
ESCROW AGREEMENT dated as of April 28, 2006 (the “Agreement”) by and among MSO
Holdings, Inc., a corporation duly organized and existing under the laws of the state of
Delaware having its principal place of business at 2333 Waukegan Road, Suite 150,
Bannockburn, Illinois 60015, (hereinafter referred to as (“MSO”); Commonwealth
Associates, L.P., 830 Third Avenue, 8th Floor, (51st and
50th Cross Streets), New York, NY 10022, as representative of the holders of
the Notes issued by MSO to such holders (the “Noteholders”) pursuant to that
certain Securities Purchase Agreement dated as of even date herewith among MSO and such
Noteholders (hereinafter referred to as (“Representative”); and Union Bank of
California, N.A , a national banking association with a corporate trust office located at
120 S. San Pedro Street, 4th Floor, Los Angeles, CA 90012 acting as escrow agent
(hereinafter referred to as Escrow Agent). 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereto, intending to be legally bound, do hereby covenant
and agree as follows: 

        Section
1.  Appointment of Escrow Agent.  MSO and Representative hereby appoint Escrow Agent
to act as escrow agent in accordance with the terms and conditions set forth herein, and
Escrow Agent hereby accepts such appointment.  

        Section
2.  Establishment of Escrow Account.  Escrow Agent shall open and maintain an
account on the terms and conditions set forth herein (the “Escrow Account”).  

        Wire
transfer instructions for sending the Escrow Funds, as hereinafter defined, to Escrow
Agent are as follows: 

	 	
Union
Bank of California, N.A.
ABA #122000496
Monterey Park, CA 91755
Acct #: 37130196431
Acct.
Name: TRUSDG
For Further Credit To: 6711783200
Attn: Lorraine McIntire  

        Section
3.  Deposits into the Escrow Account.  Simultaneously with the execution and
delivery of this Agreement, the Noteholders will make a deposit with Escrow Agent in the
sum of $2,076,994.01 in immediately available funds (the “Escrow Funds”),
which Escrow Funds shall be held by Escrow Agent under the terms and conditions
hereinafter set forth. The Escrow Funds, plus all interest, dividends and other
distributions and payments thereon received by Escrow Agent from time to time, less any
property distributed and/or disbursed in accordance with this Escrow Agreement, from time
to time are collectively referred to hereinafter as (the “Escrow Property”).
Escrow Agent shall have no duty to solicit the Escrow Property.  

        Section
4.  (a) Investment of the Escrow Property.  As soon as practicable after the receipt
thereof, Escrow Agent shall cause the Escrow Property to be invested in such Permitted
Investments as defined below as Representative may specify in writing from time to time.
During the term of this Agreement, Representative shall bear and retain the sole
responsibility for the selection of the investments of the Escrow Property and all risks
from any such investments. If Escrow Agent does not receive written instructions from an
Authorized Person of Representative requesting that the Escrow Funds be invested in a
specific Permitted Investments, Escrow Agent shall so invest the Escrow Property in an
interest bearing deposit account of the Escrow Agent such as Union Bank of California’s
Money Market Account Trust Unlimited.  

		    (b)              Permitted
Investments shall be one or more of the following:  

               	 	(1) 	
                    Money Market or Mutual Funds registered under the Investment Act of
                    1940*(1) and the parties acknowledge that the Escrow Agent may render
                    administrative services and receive additional fees from the administrator or
                    distributor of said Fund; 

                    

               	 	(2) 	
                    commercial paper (having original maturities of not more than 270 days) of any
                    corporation which on the date of acquisition has been rated by any nationally
                    recognized statistical rating organization in its highest short-term unsecured
                    debt rating category available; or 

                    

               	 	(3) 	
                    direct obligations of, or obligations fully guaranteed as to principal and
                    interest by, the United States or any agency or instrumentality thereof,
                    provided such obligations are backed by the full faith and credit of the United
                    States. 

                    

        Escrow
Agent shall have no obligation to invest or reinvest the Escrow Property if deposited with
Escrow Agent after 11:00 a.m. (P.S.T.) on the day of deposit. Instructions received after
11:00 a.m. (P.S.T.) will be treated as if received on the following business day. Escrow
Agent shall have no responsibility for any investment losses resulting from the
investment, reinvestment or liquidation of the Escrow Property. Any interest or other
income received on such investment and reinvestment of the Escrow Property shall become
part of the Escrow Property and losses incurred on such investment and reinvestment of the
Escrow Property shall be reflected in the value of the Escrow Property from time to time.
Any such interest or other income shall be distributed by the Escrow Agent in accordance
with each Distribution Instruction received by Escrow Agent in accordance with Section 5
hereof. Notwithstanding the foregoing, Escrow Agent shall have the power to sell or
liquidate the foregoing investments whenever Escrow Agent shall be required to release all
or any portion of the Escrow Property pursuant to Section 5 hereof. In no event shall
Escrow Agent be deemed an investment manager or adviser in respect of any selection of
investments hereunder. 

         1  
          The Company hereby acknowledges that it has received and read the Prospectus for
          the selected investment of the Escrow Property and understands that investments
          in the Money Market or Mutual Fund are not insured by the Federal Deposit
          Insurance Corporation and are not obligations of or guaranteed by the Escrow
          Agent. 

2 

        Section
5.  Distribution of the Escrow Property.  Escrow Agent shall hold the Escrow
Property in its possession and disburse the Escrow Property or any specified portion
thereof only upon receipt of and in accordance with written instructions duly executed by
an Authorized Person of each of MSO and Representative (each, a “Disbursement
Instruction”).  

        Escrow
Agent shall and is hereby authorized to withdraw and pay all or any portion of the Escrow
Property as specified in such Disbursement Instruction. Escrow Agent may act upon the
facsimile transmission of such Disbursement Instruction and rely upon the fax signature(s)
of an Authorized Person regardless of by whom or by what means the actual or purported
facsimile signature(s) thereon may have been affixed thereto if such facsimile
signature(s) resemble the facsimile specimen on Schedule I attached hereto or as provided
to the Escrow Agent from time to time. Escrow Agent shall incur no liability to
(Representative) or (MSO) or otherwise for having acted in accordance with instructions on
which it is authorized to rely pursuant to the provisions hereof; 

        All
payments of the Escrow Property requested pursuant to a Disbursement Instruction will be
effected by wire transfer in immediately available funds in accordance with the wire
instructions set forth in the Disbursement Instruction. 

        Section
6.  Compensation of Escrow Agent.  Escrow Agent shall be entitled to receive payment
from MSO for fees, costs and expenses for all services rendered by it hereunder in
accordance with Schedule II to this Agreement. MSO shall reimburse Escrow Agent on demand
for all losses, liabilities, damages, disbursements, advances or expenses paid or
incurred by it in the administration of its duties hereunder, including, but not limited
to, all counsel, advisor and agent fees and disbursements. At all times, Escrow Agent
will have a right of set off and first lien upon the Escrow Account for payment of
customary fees, costs and expenses and all such losses, liabilities, damages or expenses
from time to time. Such fees, costs and expenses shall be paid from the Escrow Property
to the extent not otherwise paid hereunder and Escrow Agent may sell, convey or otherwise
dispose of any Escrow Property for such purpose. The obligations contained in this
Section 6 shall survive the termination of this Escrow Agreement and the resignation or
removal of Escrow Agent.  

        Section
7.  Resignation of Escrow Agent.  Escrow Agent may resign and be discharged from its
duties hereunder at any time by giving written notice thirty (30) calendar days prior to
such resignation to MSO and Representative as provided in this Section. MSO and
Representative may remove Escrow Agent at any time by giving written notice signed by an
Authorized Person from each Party at least (30) calendar days prior to such removal to
Escrow Agent. Together with or following such notice, a successor Escrow Agent shall be
appointed by MSO and Representative, who shall provide written notice of such to the
resigning Escrow Agent. Such successor Escrow Agent shall become Escrow Agent hereunder,
and all Escrow Property shall be transferred to it upon the resignation or removal date
specified in such notice. If Representative is unwilling to appoint a successor Escrow
Agent from a nationally recognized banking institution within thirty (30) days after such
notice, Escrow Agent may, in its sole discretion, deliver the Escrow Property to MSO at
the address provided herein or may petition any court of competent jurisdiction for the
appointment of a successor Escrow Agent or for other appropriate relief. The costs and
expenses (including but not limited to its attorney fees and expenses) incurred by Escrow
Agent in connection with such proceeding shall be paid by MSO. On the resignation/removal
date in accordance with customary arrangements and receipt of the identity of the
successor Escrow Agent, Escrow Agent shall either deliver and/or disburse the Escrow
Property then held hereunder to the successor Escrow Agent, less Escrow Agent’s
fees, costs and expenses or other obligations owed to Escrow Agent. Upon its resignation
and delivery and/or disbursement of the Escrow Property in its entirety as set forth in
this Section 7, Escrow Agent shall be discharged of and from any and all further
obligations arising in connection with the Escrow Property or this Agreement.  

3 

        Section
8.  Indemnification of Escrow Agent.  MSO and Representative jointly and severally
agree to indemnify and hold Escrow Agent harmless with respect to any acts Escrow Agent
takes in accordance with the terms and conditions of this Agreement. MSO and
Representative jointly and severally agree to indemnify and hold Escrow Agent harmless
against any and all liabilities, losses, claims, damages or expenses, including
reasonable attorney’s fees, that Escrow Agent may incur by reason of or based upon
its actions under this Agreement other than as a result of the gross negligence or
willful misconduct of Escrow Agent.  

        Section
9.  Rights, Duties and Immunities of Escrow Agent.  Acceptance by Escrow Agent of
its duties under this Agreement is subject to the following terms and conditions, which
all parties to this Agreement hereby agree shall govern and control the rights, duties
and immunities of Escrow Agent.  

               (a)              The
duties and obligations of Escrow Agent shall be determined solely by the
          express provisions of this Agreement and no duties, responsibilities, or
          obligations shall be inferred or implied. Escrow Agent shall not be liable
          except for the performance of such duties and obligations as are expressly and
          specifically set out in this Agreement. Escrow Agent shall not be liable for
the           accuracy of any calculations or the sufficiency of any funds for any
purpose.  

               (b)              Escrow
Agent shall not be required to expend or risk any of its own funds or           otherwise
incur any liability, financial or otherwise, in the performance of any           of its
duties hereunder.  

               (c)              Escrow
Agent shall not be required to inquire as to the performance or           observation of
any obligation, term or condition under any other agreements or           arrangements
between MSO and Representative.  

               (d)              Escrow
Agent shall not have any responsibility to determine the authenticity or
          validity of any notice, direction, instruction, instrument, document or other
          items delivered to it by any party, or for the identity, authority or rights of
          persons executing or delivering or purporting to execute or deliver any such
          notice, direction, instruction, instrument, document, or other items delivered
          to it by such party or parties. Escrow Agent is authorized to comply with and
          rely upon any notice, direction, instruction or other communication believed by
          it to have been sent or given by (Representative) and/or (MSO) and shall be
          fully protected in acting in accordance with such written direction or
          instructions given to it under, or pursuant to, this Agreement.  

4 

               (e)              Escrow
Agent is not a party to, and is not bound by, or required to comply with           any
agreement or other document out of which this Agreement may arise. Escrow           Agent
shall be under no liability to any party hereto by reason of any failure           on the
part of MSO, Representative or any maker, guarantor, endorser or other
          signatory of any document or any other third party to perform, such party’s
          obligations under any such document. Except for amendments to this Agreement
          referred to herein, and except for notifications or instructions to Escrow
Agent           under this Agreement, Escrow Agent shall not be obliged to recognize or
be           chargeable with knowledge of any of the terms or conditions of any agreement
          between MSO and Representative, notwithstanding that references thereto may be
          made herein and whether or not it has knowledge thereof.  

               (f)              Escrow
Agent shall not be bound by any waiver, modification, termination or           rescission
of this Agreement or any of the terms hereof, unless evidenced in           writing and
delivered to Escrow Agent signed by the proper party or parties and,           if the
duties or rights of Escrow Agent are affected, unless it shall give its           prior
written consent thereto. No person, firm or corporation will be recognized           by
Escrow Agent as a successor or assignee of MSO or Representative until there
          shall be presented to Escrow Agent evidence satisfactory to it of such
          succession or assignment. This Agreement shall not be deemed to create a
          fiduciary relationship among the parties hereto under state or federal law.  

               (g)              If
at any time Escrow Agent is served with any judicial or administrative order,
          judgment, decree, writ or other from of judicial or administrative process
which           in any way affects the Escrow Property (including but not limited to
orders of           attachment or any other forms of levies or injunctions or stays
relating to the           transfer of the Escrow Property), Escrow Agent is authorized to
comply therewith           in any manner as it or its legal counsel of its own choosing
deems appropriate;           and if Escrow Agent complies with any such judicial or
administrative order,           judgment, decree, writ or other form of judicial or
administrative process,           Escrow Agent shall not be liable to any of the parties
hereto or to any other           person or entity even though such order, judgment,
decree, writ or process may           be subsequently modified or vacated or otherwise
determined to have been without           legal force or effect.  

               (h)              Escrow
Agent shall not be liable for any action taken or omitted or for any loss           or
damage resulting from its actions or its performance of its duties hereunder           in
the absence of gross negligence or willful misconduct on its part. In no           event
shall Escrow Agent be liable (i) for acting in accordance with or relying           upon
any instruction, notice, demand, certificate or document from MSO and/or
          Representative, or any entity acting on behalf of either, (ii) for any
          consequential, punitive or special damages, (iii) for the acts or omissions of
          its nominees, designees, subagents or subcustodians, or (iv) for an amount in
          excess of the value of the Escrow Property, valued as of the date of loss.  

               (i)              In
the event of any ambiguity or uncertainty hereunder or in any notice or other
          communication received by Escrow Agent hereunder, Escrow Agent may, in its sole
          discretion, refrain from taking any action other than to retain possession of
          the Escrow Property, unless Escrow Agent receives written instructions, signed
          by MSO and Representative which eliminates such ambiguity or uncertainty.  

               (j)              Escrow
Agent may consult with legal counsel of its own choosing, at the expense           of MSO
and Representative, jointly and severally, as to any matter relating to           this
Escrow Agreement and the Escrow Agent shall incur no liability and shall be
          fully protected in respect of any action taken, omitted or suffered by it in
          good faith in accordance with the advice or opinion of such counsel.  

5 

               (k)              In
the event of any dispute or conflicting claim with respect to the payment,
          ownership or right of possession of the Escrow Account or the Escrow Property,
          Escrow Agent shall be entitled, in its sole discretion, to refuse to comply
with           any and all claims, demands or instructions. Escrow Agent is authorized
and           directed to retain in its possession, without liability to anyone, except
for           its own gross negligence or willful misconduct, all or any part of the
Escrow           Property until such dispute shall have been settled either by mutual
agreement           of the parties concerned or by final order, decree or judgment of a
court or           other tribunal of competent jurisdiction in the United States of
America (as           notified to the Escrow Agent in writing by the parties to the
dispute or their           authorized representatives and setting forth the resolution of
the dispute.           Escrow Agent shall be under no duty whatsoever to institute,
defend or partake           in such proceedings. The rights of Escrow Agent under this
paragraph are in           addition to all other rights which it may have by law or
otherwise including,           without limitation, the right to file an action in
interpleader.  

               (l)              Escrow
Agent shall not incur liability for not performing any act or not           fulfilling
any duty, obligation or responsibility hereunder by reason of any           occurrence
beyond the control of Escrow Agent (including but not limited to any           act or
provision of any present or future law or regulation or governmental           authority,
any act of God or war, or the unavailability of the Federal Reserve           Bank or
telex or other wire or communication facility).  

               (m)              Unless
otherwise specifically set forth herein, Escrow Agent shall proceed as           soon as
practicable to collect any checks or other collection items at any time
          deposited hereunder. All such collections shall be subject to Escrow
          Agent’s usual collection practices and terms regarding items received by
          Escrow Agent for deposit or collection. Escrow Agent shall not be required, or
          have any duty to notify anyone of any payment or maturity under the terms of
any           instrument deposited hereunder, nor to take any legal action to enforce
payment           of any check, note or security deposited hereunder or to exercise any
right or           privilege which may be afforded to the holder of any such security.  

               (n)              When
Escrow Agent acts on any instruction, communication, (including, but not
          limited to, communication with respect to the delivery of securities or the
wire           transfer of funds) sent by telex, facsimile, email or other form of
electronic           or data transmission, Escrow Agent, absent gross negligence or
willful           misconduct, shall not be responsible or liable in the event such
communication           is not an authorized or authentic communication of the party
involved or is not           in the form the party involved sent or intended to send
(whether due to fraud,           distortion or otherwise).  

6 

Section 10.  Notices.  All
notices, consents, requests, instructions, approvals and other communications provided for
in this Agreement shall be in writing and shall become effective when delivered to the
addresses noted below or such other address as may be substituted therefor by written
notification to Escrow Agent, MSO and Representative. Notices to Escrow Agent shall be
deemed to be given when actually received by Escrow Agent’s Corporate Trust
Department. 

	 	If to MSO:	MSO Holdings, Inc.
2333 Waukegan Road, Suite
175
Bannockburn, Illinois 60015
Attn: Tom Mason, Chief Financial Officer

	 	With a
copy to:	Foley & Lardner LLP
402
W. Broadway, 23rd Floor
San Diego, California 92101
Attn:  Adam Lenain, Esq.

	 	If to
Representative:	 Commonwealth Associates, L.P.
830 Third Avenue, 8th
Floor
(51st and 50th Cross Streets)
New York, NY 10022
Attn: Carl Kleidman, Esq.

	 	With a
copy to:	 Miller, Canfield, Paddock and Stone, P.L.C.

101 North Main Street, 7th Floor
Ann Arbor, Michigan 48104
Attn:
David N. Parsigian, Esq. 

	 	         If to
Escrow Agent:	Union Bank of California, N.A.

120 S. San Pedro Street, Suite 400
Los Angeles, CA 90012
Attn: Corporate Trust Dept.

                                       Facsimile: (213) 972-5694

7 

        Section
11.  Termination.  This Agreement shall terminate when all the Escrow Property has
been disbursed or returned pursuant to Section 5 or Section 7 of this Agreement.  

        Section
12.  Continuing  Obligations.  The  obligations  under  Sections 6, 8 and 10 hereof
shall  survive the resignation  or  removal of Escrow  Agent,  the  termination  of this
 Agreement  and the  payment  of all  amounts hereunder. 

        Section
13.  Inconsistent Provisions.  MSO and Representative agree that to the extent that
the provisions of any other agreement relating to the Escrow Property are inconsistent
with the terms of this Agreement, the terms of this Agreement shall control.  

        Section
14.  Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of California.  

        Section
15.  Counterparts.  This Agreement may be executed in any number of counterparts
(including by fax), each of which shall be deemed to be an original, and all of which
together shall constitute but one and the same instrument.  

        Section
16.  Severability.  The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any
other provision; and if any provision is held to be unenforceable as a matter of law, the
other provisions shall not be affected thereby and shall remain in full force and effect.  

        Section
17.  Authorized Person.  Each of MSO and Representative hereby identify to Escrow
Agent the officers, employees or agents designated on Schedule I attached hereto as
Authorized Person with respect to any notice, certificate, instrument, demand, request,
direction, instruction, waiver, receipt, consent or other document or communication
required or permitted to be furnished to Escrow Agent.. Such Schedule I may be amended
and updated by written notice to Escrow Agent with a copy to the other party to this
Agreement provided that failure to furnish such copy shall not effect the validity of
such notice to the Escrow Agent. Escrow Agent shall be entitled to rely on such original
or amended Schedule I with respect to any party until a new Schedule I is furnished by
such party to Escrow Agent.  

        Section
18.  Consent to Jurisdiction.  Each of the parties hereto hereby irrevocably agrees
that any action, suit or proceedings against any of them by any of the other
aforementioned parties with respect to this Agreement shall be brought before the
jurisdiction of any federal or state court of competent jurisdiction located in Los
Angeles, California to trial by jury and to assert counterclaims in any such proceedings.
Each party hereto further irrevocably consents to the service of any complaint, summons,
notice or other process relating to any such action or proceeding by delivery thereof to
it by hand or by registered or certified mail, return receipt requested, in the manner
provided for herein. Each party hereto hereby expressly and irrevocably waives any claim
or defense in any such action or proceeding based on improper venue or forum non
conveniens or any similar basis.  

8 

        Section
19.  Disputes.  ALL CLAIMS, CAUSES OF ACTION OR OTHER DISPUTES CONCERNING THIS AGREEMENT
AND ANY DOCUMENTS EXECUTED IN CONNECTION HEREWITH (COLLECTIVELY, “CLAIMS” AND
INDIVIDUALLY, A “CLAIM”), INCLUDING ANY AND ALL QUESTIONS OF LAW OR FACT
RELATING THERETO, SHALL, AT THE WRITTEN REQUEST OF ANY PARTY, BE DETERMINED BY JUDICIAL
REFERENCE (“REFERENCE”). THE PARTIES SHALL SELECT A SINGLE NEUTRAL REFEREE, WHO
SHALL BE A RETIRED STATE OR FEDERAL JUDGE WITH AT LEAST FIVE YEARS OF JUDICIAL EXPERIENCE
IN CIVIL MATTERS. IN THE EVENT THAT THE PARTIES CANNOT AGREE UPON A REFEREE, THE REFEREE
SHALL BE APPOINTED BY THE COURT. THE PARTIES SHALL EQUALLY BEAR THE FEES AND EXPENSES OF
THE REFEREE UNLESS THE REFEREE OTHERWISE PROVIDES IN THE STATEMENT OF DECISION. THE
REFEREE SHALL DETERMINE ALL ISSUES RELATING TO THE APPLICABILITY, INTERPRETATION,
LEGALITY AND ENFORCEABILITY OF THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT ONE
CONSEQUENCE OF A REFERENCE IS THAT THE CLAIMS WILL NOT BE ADJUDICATED BY A JURY.  

        Section
20.  Withholding Forms.  Due to the requirement that all escrow accounts have
Taxpayer Identification Numbers documented by appropriate W-8 or W-9 forms, Escrow Agent
shall promptly provide such forms to MSO and Representative, and MSO and Representative
shall return the appropriate form to Escrow Agent, duly completed and signed, within five
(5) days of receipt thereof. MSO and Representative acknowledge that failure to provide
such forms may prevent or delay disbursement of the Escrow Funds hereunder.  

        Section
21.  Miscellaneous.  

               (a)              The
rights and remedies conferred upon the parties hereto shall be cumulative,           and
the exercise or waiver of any such right or remedy shall not preclude or
          inhibit the exercise of any additional rights or remedies. The waiver of any
          right or remedy hereunder shall not preclude the subsequent exercise of such
          right or remedy.  

               (b)              This
Agreement is for the exclusive benefit of the parties hereto and their
          respective successors hereunder, and shall not be deemed to give, either
express           or implied, any legal or equitable right, remedy, or claim to any other
entity           or person whatsoever.  

               (c)              Each
party hereby represents and warrants (s) that this Escrow Agreement has           been
duly authorized, executed and delivered on its behalf and constitutes its
          legal, valid and binding obligation and (b) that the execution, delivery and
          performance of this Escrow Agreement by it does not and will not violate any
          applicable law or regulation.  

               (d)              The
headings contained in this Agreement are for convenience of reference only           and
shall have no effect on the interpretation or operation hereof.  

9 

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

		
		
MSO Holdings, Inc.
		

By /s/ Steven Straus
		       Name: Steven Straus
		       Title: President
		

Commonwealth Associates, L.P.
		

By /s/ Robert A. O'Sullivan
		       Name: Robert A. O'Sullivan
		       Title: CEO/President
		

UNION BANK OF CALIFORNIA, N.A.
		as Escrow Agent
		

By /s/ Lorraine McIntire
		       Name: Lorraine McIntire
		       Title: Vice President

[Signature Page to
Escrow Agreement} 

10 

SCHEDULE I 

Authorized Representatives 

	Name		Title		Specimen Signature
	
Thomas M. Mason		MSO Holdings, Inc.		/s/ Thomas Mason
			Chief Financial Officer		
	
Carl Kleidman		Commonwealth Associates, L.P.		/s/ Carl Kleidman
			Managing Director		

I-1  

SCHEDULE II 

ESCROW AGENT
COMPENSATION 

UNION BANK OF
CALIFORNIA, N.A.
CORPORATE TRUST SERVICES 

Schedule of Fees
for
Escrow
Agent Services

Escrow Agreement
among
MSO Holdings, Inc.,
Commonwealth
Associates, L.P.,
and
Union Bank of California, N.A. 

     

		
	
Acceptance and Set-up Fee:	$1,000.00
	(Due and payable on the closing date.)	
	
Annual Escrow Administration Fee:	$3,000.00
	(First year's fee is due and payable in advance on the closing date)	
	
Legal Counsel Fee:	No Charge
	(use of Union Bank in-house legal counsel)	
	
Transactional Charges:
	
       Disbursements / wires (each):	$    35.00
	
Investments (per sale/purchase/transfer):	$    60.00
	
Out-of-Pocket Expenses:	As Invoiced
	
Extraordinary Services:	By Appraisal

Fees subject to acceptance and
review by Union Bank of California, N.A.. of all documents pertaining to this transaction.
If we are called upon to perform additional services such as tax reporting, paying agent,
or any services not described above, an extra charge may apply. 

II-1EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT is made on June 7, 2006 between SteelCloud,
Inc. ("SteelCloud") and Cliff Sink ("Employee").

         WHEREAS, SteelCloud desires to employ Employee as SteelCloud's
President and Chief Executive Officer and Employee desires to accept such
employment from SteelCloud; and
         WHEREAS the parties desire to record the arrangements made for such
         employment; NOW, THEREFORE, the parties agree as follows:

         1. TERM OF EMPLOYMENT. Employee's employment with SteelCloud shall
continue from the date first above written through June 30, 2009, subject to the
termination rights of either party as set forth in sections 5 or 7 below. This
Agreement shall continue thereafter from year to year unless terminated by
either party pursuant to the terms of this Agreement.

         2. DUTIES AND POSITION. Employee shall be the President and Chief
Executive Officer of SteelCloud, and shall exert his best efforts to provide day
to day executive management in furtherance of SteelCloud's business, which shall
include, but not be limited to, all aspects of the operating of the business,
development and cultivation of business relationships and opportunities,
marketing, advertising, promotion, hiring, firing and supervision of all
employees, office management, and fulfilling all administrative functions in the
operation of SteelCloud's business. Employee shall report directly to
SteelCloud's Board of Directors. The parties contemplate that Employee shall
work not less than full time, and shall be available seven days a week, as
needed, throughout the period of this Agreement.

<PAGE>

         3. SALARY / BENEFITS.

                  a. For his services, SteelCloud shall pay Employee a Base
         Salary as follows: Fiscal Year 2006 $200,000 (prorated through October
         31, 2006, including credit for amounts paid by SteelCloud through the
         date of this Agreement.)

         Fiscal Year       2007             $237,500
         Fiscal Year       2008             $237,500
         Fiscal Year       2009             $237,500

The Employee's base salary shall be payable pro rata on the regular payroll days
of the company, less federal, state, and local taxes and other required
withholdings. The Base Salary is subject to section 5 of this Agreement. In
addition, as Additional Salary, SteelCloud shall pay Employee a bonus as
follows:

         Fiscal Year 2006                   $20,833 (payable in equal monthly
         increments on the last business day of each month between the date of
         this agreement and October 31, 2006)

         Fiscal Year 2007                   Up to $37,500 if Employee meets the
         Financial Plan, and up to $100,000 if Employee exceeds Financial Plan

         Fiscal Year 2008                   Up to $37,500 if Employee meets the
         Financial Plan, and up to $100,000 if Employee exceeds Financial Plan

         Fiscal Year 2009                   Up to $37,500 if Employee meets the
         Financial Plan, and up to $100,000 if Employee exceeds Financial Plan

The precise amount of the Additional Salary in fiscal years 2007,2008 and 2009
shall be determined in the reasonable discretion of the Board of Directors.

                  b. For purposes of calculating Employee's Additional Salary,
if any, the term "Financial Plan" shall mean that Plan to which SteelCloud's
Board of Directors and Employee agree at least 90 days before the end of each of
SteelCloud's fiscal years and applicable to the next fiscal year, addressing the
following criteria separately for each fiscal quarter: revenue, profits, If the
parties cannot agree on a Financial Plan, then SteelCloud's Board of Directors
may unilaterally adopt the plan it reasonably believes is appropriate for
SteelCloud.

                  c. In addition to the salary set forth above, SteelCloud shall
provide to Employee the following employee benefits: (1) paid family coverage
health and dental insurance under the standard SteelCloud policies for said
insurance and (2) paid vacation and sick leave pursuant to the standard
SteelCloud policies.

                                      -2-
<PAGE>

                  d. In addition, upon presentation of satisfactory
documentation, Employee shall be reimbursed those out of pocket expenses
reasonably incurred in the performance of his duties. SteelCloud reserves the
right to refuse reimbursement of expenditures which were not pre-approved and
which SteelCloud finds are not appropriate.

                  e. In addition to the foregoing, SteelCloud shall offer
Employee stock options subject to a stock option agreement to be entered into by
the parties, allowing the exercise of the option for 100,000 shares of
SteelCloud stock (SCLD) over a three (3) year period beginning on the date the
stock option agreement is executed.

                  5. SteelCloud shall takes all steps available to it to seek to
have its Board of Directors appoint employee to a now-vacant seat on the Board,
pursuant to Article III, section 4 of SteelCloud's bylaws.

        4. EMPLOYEE TO DEVOTE FULL TIME TO COMPANY.

                  a. Employee will exert his best efforts, energies and
attention on a full time basis to the business of SteelCloud. During this
employment, Employee will not engage in any other non-passive business activity,
regardless of whether such activity is pursued for profit, gain, or other
pecuniary advantage.

                  b. Employee agrees that he will not compete, directly or
indirectly, with the business of SteelCloud during the period of his employment
relationship with SteelCloud. Employee understands that the term "not compete"
as used in this paragraph shall mean that he shall not own, manage, operate,
consult with, or be employed by, a business similar to or competitive with the
present business of SteelCloud or such other business activity in which
SteelCloud may engage during the term of his employment relationship with
SteelCloud. He understands that the "present business of SteelCloud" as used in
this paragraph shall mean any business related directly or indirectly to the
design, development, distribution, or sale of hardware or software. "Own" does
not include an ownership interest in the securities of a publicly traded company
which is an interest less than 1% of the outstanding publicly traded shares of
the company.

                                      -3-
<PAGE>

         5. DISABILITY/ILLNESS. If Employee is unable to perform his duties (as
described in paragraph number 2, as a result of illness and such illness
continues for more than sixty consecutive (60) days, SteelCloud may terminate
Employee's employment, and/or modify this Agreement with regard to Employee's
compensation and duties.

         6. CONFIDENTIALITY/PROPRIETARY INFORMATION. Employee acknowledges that
during the course of his employment relationship with SteelCloud, there may be
disclosed to him certain trade secrets, methodology, or other proprietary data
of SteelCloud and others with which SteelCloud has contractual relationships
(hereinafter "Confidential Information"); said Confidential Information
consisting of, but not limited to: customer lists, pricing data, SteelCloud's
financial information, technical information, and marketing, production, or
merchandising systems or plans. Employee agrees that he shall not during, or at
any time after the termination of, his employment relationship with SteelCloud,
use for himself or others, or disclose or divulge to others, including but not
limited to future employers or other businesses with which he may have a
contractual relationship, any Confidential Information. Should Employee reveal
or threaten to reveal any of this information, SteelCloud shall be entitled to
an injunction restraining Employee from disclosing same, or from rendering any
services to any entity to whom said information has been or is threatened to be
disclosed. The right to secure an injunction is not exclusive, and SteelCloud
may pursue any other remedies it has against Employee for a breach or threatened
breach of this condition, including the recovery of damages from Employee.

         7.       TERMINATION OF AGREEMENT.
                  a. If SteelCloud shall terminate Employee without cause,
SteelCloud shall pay Employee severance equal his base salary through the
balance of the term. SteelCloud may pay this severance, at its option, in a lump
sum, or in installments no less often than SteelCloud's regular salary payment
schedule.

                                      -4-
<PAGE>

                  b. In the event that SteelCloud underperforms relative to the
Financial Plan as defined in paragraph 3.b., the Board of Directors may
terminate Employee at any time after June 7, 2007 by paying the lesser of (a)
one year base salary, or (b) the balance of the base salary for the remaining
term of the contract. Underperforms means either (i) two consecutive quarters in
which the Financial Plan is missed by a margin of at least 15 percent of planned
revenue or 10% of planned net income or (ii) the annual plan is missed by a
margin of 15% percent of planned annual revenue or 10% of planned net income.

                  c. If SteelCloud shall terminate the Employee for cause other
than underperforming relative to the Financial Plan, Employee shall have no
right to receive any notice or severance pay. "For cause" as used in this
paragraph shall mean: (a) a deliberate and willful disregard of standards of
behavior which SteelCloud has a right to expect. The standards of behavior which
SteelCloud has a right to expect shall include, but shall not be limited to, the
following: (i) commits a crime, (ii) convicted of a felony (iii) fails to comply
with instructions of the Board of Directors (iv) habitual abuse of drugs and/or
alcohol (v) deliberately participating in conduct that harms or injures
SteelCloud including: misappropriation of SteelCloud assets, competition with
SteelCloud, total failure to perform assigned work, and breach of fiduciary
duty.

                  d. Employee agrees that, immediately upon the termination of
his relationship with SteelCloud, regardless of the reason, he shall return to
SteelCloud all Confidential Information and also all other documents and
property of SteelCloud, including, but not necessarily limited to: data
descriptions, reports, manuals, correspondence, customer lists, computers, and
all other materials and all copies thereof relating in any way to SteelCloud's
business, or in any way obtained by him during the course of his employment
relationship with SteelCloud. Employee further agrees that he shall not retain
copies, notes or abstracts of the foregoing.

         8.       RESTRICTION ON POST EMPLOYMENT.

                  a. For a period of two (2) years after the termination of
Employee's employment, notwithstanding the cause or reason for termination,
Employee shall not compete, directly or indirectly, with SteelCloud. Employee
understands that the term "not compete" as used in this paragraph shall mean
that he shall not (i) own, manage, operate, consult with, or be employed by, a
competing business in the United States; (ii) solicit or assist in the
solicitation of any of SteelCloud's accounts or customer(s); or (iii) encourage
any of SteelCloud's other employees to cease their employment with SteelCloud.
Employee understands that the term "competing business" as used in this
paragraph means any business engaged in the design, development, distribution,
or sale of hardware or software that competes with SteelCloud branded appliances
(including antivirus, intrusion protection, and security appliances), or the
providing of any services that compete with the Company's consulting service
offerings.

                                      -5-
<PAGE>

                  b. Employee agrees that SteelCloud may notify any future or
prospective employer or third party business with which Employee may contract of
the existence of this agreement. Employee agrees that the foregoing
post-employment restrictions are reasonable given the national scope of
SteelCloud's products and services.

                  c. As an additional and cumulative remedy to any other remedy
available to SteelCloud, the covenants contained in this Agreement shall be
enforceable by specific performance and by preliminary and permanent injunctive
relief and if any court of record shall finally adjudicate that the constraints
provided for herein are too broad as to the area, activity, time covered, or any
other matter, then said area, activity, time covered, or any other matter may be
reduced to whatever extent the court deems reasonable and the covenants may be
enforced as to such reduced area, activity, time, or other matter.

         9. ASSISTANCE IN LITIGATION. Employee shall, upon reasonable notice,
furnish such information and proper assistance to SteelCloud as it may
reasonably require in connection with any litigation in which it is, or may
become, a party either during or after his employment. In the event that
Employee fails to assist SteelCloud, it shall reimburse SteelCloud all legal
fees, court costs and damages resulting in whole or in part from this failure to
assist.

         10.      ENFORCEMENT PROVISIONS.

                  a. Each party agrees that, if it breaches any of the terms of
this agreement, it shall pay the other party the costs that party may incur in
enforcing this agreement or seeking damages for his breach, including reasonable
attorney's fees. In the event that either party is required to seek legal
assistance to obtain compliance with this Agreement or to enforce the provisions
of this Agreement, the second party shall pay to the first party in addition to
all the sums that it may be called on to pay, all the first party's costs and
expenses, including, but not limited to, attorneys' fees actually incurred by
that party regardless of whether court action is initiated.

                  b. Any legal action brought to enforce any claim or right
arising from the provisions of this agreement shall be brought in the court of
appropriate jurisdiction in the County of Fairfax in the Commonwealth of
Virginia and the law of the Commonwealth of Virginia shall govern. If any of the
provisions of this Agreement shall contravene, or be invalid under, the laws of
the Commonwealth of Virginia, such contravention or invalidity shall not
invalidate the entire Agreement, but it shall be construed as if not containing
the particular provision or provisions held to be invalid, and the rights and
obligations of the parties shall be construed and enforced accordingly.
         11. NOTICES. Any notice or communication required or permitted by the
terms of this Agreement shall be deemed received when hand delivered to the
person to whom the notice is directed, or when otherwise received by that person
as demonstrated by any mail, facsimile, or commercial courier receipt:

                                      -6-
<PAGE>

                  If to the Company, notice shall be directed to:

                  Board of Directors, Compensation Committee Chairman
                  SteelCloud
                  14040 Park Center Road, Suite 210
                  Herndon, VA 20171

                  If to Employee, notice shall be directed to

                  Cliff Sink
                  11503 Turnbridge Lane
                  Reston, VA 20194

                  or to such other address as either party may designate from
time to time by written notice to the other party.

         12.      MISCELLANEOUS PROVISIONS.
                  a. This Agreement sets forth all of the parties' promises,
agreements, conditions, warranties and representations, oral or written, express
or implied, among them with respect to the terms of employment, and there are no
promises, agreements, conditions, warranties or representations, oral or
written, express or implied, among them with respect to the terms of employment
other than as set forth herein.

                  b. This Agreement supercedes any prior agreements between
Employee and SteelCloud or any predecessors of Employee and SteelCloud.

                  c. Any modification of this Agreement or additional obligation
assumed by either party in connection with this Agreement shall be binding only
if placed in writing and signed by each party or an authorized representative of
each party.

                  d. This Agreement shall inure to the benefit of, and shall be
binding upon, the parties and their respective successors, heirs, and personal
representatives.

                  e. This Agreement shall not be assignable by Employee.

                  f. The failure of either party to this Agreement to insist
upon the performance of any of the terms and conditions of this Agreement, or
the waiver of any breach of any of the terms and conditions of his Agreement,
shall not be construed as thereafter waiving any such terms and conditions, but
the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.

                  g. The parties hereto stipulate and agree that the rule of
construction to the effect that any ambiguities are to be or may be resolved
against the drafting party shall not be employed in the interpretation of this
Agreement to favor.

         IN WITNESS WHEREOF, each party to this Agreement has caused it to be
executed on the date indicated above.

/S/ JAMES BRUNO                                      /S/ CLIFTON W. SINK
---------------                                      -------------------
SteelCloud, Inc. by                                  Employee
its

                                      -7-

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