Document:

Exhibit 4.2

 

THE AGENT’S WARRANT REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”).  NEITHER
THIS AGENT’S WARRANT NOR SUCH SECURITIES MAY BE TRANSFERRED EXCEPT (A) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR (B) UPON RECEIPT BY THE ISSUER OF AN OPINION OF
COUNSEL, WHICH OPINION OF COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE
ISSUER, TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE
ACT AND SUCH STATE SECURITIES LAWS.

 

AGENT’S WARRANT

 

TO PURCHASE COMMON STOCK

 

OF

 

MSO HOLDINGS, INC.

 

Warrant No. C-      

 

THIS CERTIFIES that, for
value received,                                        -,
or its permitted assigns registered on the books of the Company (collectively,
the “Holder”), is entitled to purchase from MSO Holdings, Inc., a Delaware
corporation (the “Company”), at any time, and from time to time, during the exercise
period referred to in Section 1 hereof,                                     
shares (the “Warrant Shares”) of the Company’s Common Stock, par value $0.001
per share (the “Common Stock”), at a purchase price of $         
per share (as may be adjusted, the “Warrant Share Price”).  Securities issuable upon exercise of this
Agent’s Warrant and the price payable therefor are subject to adjustment from
time to time as hereinafter set forth. 
As used herein, the term “Agent’s Warrant” shall include any warrant or
warrants hereafter issued in consequence of the exercise of this Agent’s
Warrant in part or transfer of this Agent’s Warrant in whole or in part.

 

1.                                       Exercise;
Payment for Ownership Interest.  The
Company shall have reserved sufficient Common Stock (given all other Common
Stock share reservations) to allow for the exercise of this Agent’s Warrant and
the securities issuable in connection herewith.

 

1.1.                              Upon
the terms and subject to the conditions set forth herein, this Agent’s Warrant
may be exercised in whole or in part by the Holder hereof at any time, or from
time to time, on or after the date hereof and prior to 5:30 p.m., New York
time, on                         ,
2009, by presentation and surrender of this Agent’s Warrant to the principal offices
of the Company, together with the Purchase Form annexed hereto, duly
executed, and accompanied by payment to the Company of an amount equal to the
Warrant Share Price multiplied by the number of Warrant Shares as to which this
Agent’s Warrant is then being exercised. 
Moreover, any transfer of Agent’s Warrants obtained by the Holder in
exercise of this Agent’s Warrant is subject to the requirement that such
securities be registered under the Securities Act of 1933, as amended (the “1933 Act”), and applicable state securities
laws or exempt from registration under such laws.  The Holder of this Agent’s Warrant shall be
deemed to be a shareholder owning the 

 

 

Warrant Shares as to which this Agent’s
Warrant is exercised in accordance herewith effective immediately after the
close of business on the date on which the Holder shall have delivered to the
Company this Agent’s Warrant in proper form for exercise and payment by
certified or official bank check or wire transfer of the cash purchase price
for the number of Warrant Shares as to which this Agent’s Warrant is then being
exercised, or by delivery to the Company of securities of the Company having a
value equal to the cash purchase price for such number of Warrant Shares
determined as of the date of delivery in accordance with a Cashless Exercise
(as defined below).

 

1.2.                              All
or any portion of the Warrant Share Price may be paid by surrendering Warrant
Shares effected by presentation and surrender of this Agent’s Warrant to the
Company with a Cashless Exercise Form annexed hereto duly executed (a “Cashless
Exercise”).  Such presentation and
surrender shall be deemed a waiver by the Company, of the Holder’s obligation
to pay all or any portion of the aggregate Warrant Share Price in cash.  In the event of a Cashless Exercise, the
Holder shall exchange its Agent’s Warrant for that number of shares of Common
Stock determined by multiplying the number of Warrant Shares for which the
Holder desires to exercise this Agent’s Warrant by a fraction, the numerator of
which shall be the difference between the then current market price per share
of the Common Stock and the Warrant Share Price, and the denominator of which
shall be the then current market price per share of Common Stock.  For purposes of any computation under this Section 1.2,
the then current market price per share of Common Stock at any date shall be
deemed to be the average for the ten consecutive business days immediately
prior to the Cashless Exercise of the daily closing prices of the Common Stock
on the principal national securities exchange on which the Common Stock is
admitted to trading or listed, including the National Association of Securities
Dealer’s Over-The-Counter Bulletin Board, or if not listed or admitted to
trading on any such exchange, the closing prices as reported by the Nasdaq
National Market, or if not then listed on the Nasdaq National Market, the
average of the highest reported bid and lowest reported asked prices as
reported by the National Association of Securities Dealers, Inc. Automated
Quotations System (“Nasdaq”) or if not then publicly traded, the fair market
price of the Common Stock as determined by the Board of Directors of the
Company in good faith.

 

1.3.                              If
this Agent’s Warrant shall be exercised in part only, the Company shall, upon
surrender of this Agent’s Warrant for cancellation, execute and deliver a new
Agent’s Warrant evidencing the rights of the Holder thereof to purchase the
balance of the Warrant Shares purchasable hereunder as to which this Agent’s
Warrant has not been exercised.  If this
Agent’s Warrant is exercised in part, such exercise shall be for a whole number
of Warrant Shares.  Upon any exercise and
surrender of this Agent’s Warrant, the Company (i) will issue and deliver
to the Holder a certificate or certificates in the name of the Holder for the
largest whole number of Warrant Shares to which the Holder shall be entitled
and, if this Agent’s Warrant is exercised in whole, in lieu of any fractional
Warrant Share to which the Holder otherwise might be entitled, cash in an
amount equal to the fair value of such fractional Warrant Share (determined in
such reasonable and equitable manner as the Board of Directors of the Company
shall in good faith decide), and (ii) will deliver to the Holder such other
securities, properties and cash which the Holder may be entitled to receive
upon such exercise, or the proportionate part thereof if this Agent’s Warrant
is exercised in part, pursuant to the provisions of this Agent’s Warrant.

 

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2.                                       Adjustments.  Securities issuable upon exercise of this
Agent’s Warrant and the Warrant Share Price shall be subject to adjustment from
time to time as follows:

 

2.1.                              Stock
Dividends, Reorganization, Reclassification, Consolidation, Merger or Sale.  In case the Company shall hereafter (i) declare
a dividend or make a distribution on its outstanding shares of Common Stock in
shares of Common Stock, (ii) subdivide or reclassify its outstanding
shares of Common Stock into a greater number of shares, or (iii) combine
or reclassify its outstanding shares of Common Stock into a smaller number of
shares, the Exercise Price in effect at the time of such dividend or
distribution or of the effective date of such subdivision, combination or
reclassification shall be adjusted so that it shall equal the price determined
by multiplying the Exercise Price by a fraction, the denominator of which shall
be the number of shares of Common Stock outstanding after giving effect to such
action, and the numerator of which shall be the number of shares of Common
Stock outstanding immediately prior to such action and the number of shares of
Common Stock issuable upon exercise of this Warrant shall be proportionately
increased or decreased as the case may be. 
Such adjustment shall be made successively whenever any event listed
above shall occur.

 

2.2.                              Issuance
of Additional Stock.  If the Company
should issue, at any time after the date of this Warrant (the “Purchase Date”),
any Additional Stock (as defined below) without consideration or for a
consideration per share less than the Warrant Share Price in effect immediately
prior to the issuance of such Additional Stock, the Warrant Share Price in
effect immediately prior to each such issuance shall automatically be adjusted
to a price equal to the price at which such Additional Stock is being issued.

 

2.2.1                        Definition
of “Additional Stock.”  For purposes
of this Warrant, “Additional Stock” shall mean any shares of Common
Stock issued (or deemed to have been issued pursuant to this Section 2.2
by the Company after the Purchase Date) other than:

 

(i)                                     Shares
of Common Stock issued or issuable pursuant to stock dividends, stock splits,
dividends or similar transactions;

 

(ii)                                  Common
Stock (or options, warrants or rights therefor) (such number of shares to be
calculated net of any repurchases and cancellations of such shares by the Company
and net of any such expired or terminated options, or rights and to be
proportionally adjusted to reflect any stock
splits, stock dividends, recapitalizations or the like) granted, issued
or issuable to employees, officers, directors, contractors, consultants or
advisers to the Company pursuant to the Company’s 2004 Equity Incentive Plan,
or non-plan option agreements or other arrangements;

 

(iii)                               Shares
of Common Stock, or options, warrants or rights to purchase Common Stock,
issued to financial institutions or lessors in connection with equipment lease
financing arrangements, real estate leases, credit arrangements, debt financings
or other similar commercial transactions approved by the Board of Directors;

 

(iv)                              Shares
of Common Stock issuable upon exercise of options, warrants, convertible
securities or rights to purchase any securities of the Corporation 

 

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outstanding
as of the date of this Certificate and any securities issuable upon the
conversion thereof;

 

(v)                                 Shares
of Common Stock, or options, warrants or rights to purchase Common Stock,
issued for consideration other than cash pursuant to a merger, consolidation,
acquisition or similar business combination approved by the Board of Directors;

 

(vi)                              Shares
of Common Stock issued or issuable upon conversion of the Series A Convertible Preferred Stock of the Company; and

 

(vii)                           Shares
of Common Stock issued or issuable by the Company in a public offering prior to
or in connection with which all outstanding shares of Series A Convertible Preferred Stock of the Company will be
converted to Common Stock.

 

2.2.2                        No
Fractional Adjustments.  No adjustment
of the Warrant Share Price shall be made in an amount less than one cent per
share, provided that any adjustments which are not required to be made by
reason of this sentence shall be carried forward and shall be either taken into
account in any subsequent adjustment made prior to three years from the date of
the event giving rise to the adjustment being carried forward, or shall be made
at the end of three years from the date of the event giving rise to the
adjustment being carried forward.

 

2.2.3                        Determination
of Consideration.  In the case of the
issuance of Common Stock for cash, the consideration shall be deemed to be the
amount of cash paid therefor before deducting any reasonable discounts,
commissions or other expenses allowed, paid or incurred by the Company for any
underwriting or otherwise in connection with the issuance and sale
thereof.  In the case of the issuance of
the Common Stock for a consideration in whole or in part other than cash, the
consideration other than cash shall be deemed to be the fair value thereof as
determined in good faith by the Board of Directors.

 

2.2.4                        Deemed
Issuances of Common Stock.  In the
case of the issuance (whether before, on or after the Purchase Date) of
securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly, additional shares of Common Stock (the “Common
Stock Equivalents”), the following provisions shall apply for all purposes
of this Section 2.2:

 

(i)                                     The
aggregate maximum number of shares of Common Stock deliverable upon conversion,
exchange or exercise (assuming the satisfaction of any conditions to
convertibility, exchangeability or exercisability, including, without
limitation, the passage of time, but without taking into account potential
antidilution adjustments) of any Common Stock Equivalents and subsequent
conversion, exchange or exercise thereof shall be deemed to have been issued at
the time such securities were issued or such Common Stock Equivalents were
issued and for a consideration equal to the consideration, if any, received by
the Company for any such securities and related Common Stock Equivalents
(excluding any cash received on account of accrued interest or accrued
dividends), plus the minimum additional consideration, if any, to be received
by the Company (without taking into account potential antidilution adjustments)
upon the conversion, exchange or exercise of any Common Stock Equivalents.

 

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(ii)                                  In
the event of any change in the number of shares of Common Stock deliverable or
in the consideration payable to the Company upon conversion, exchange or
exercise of any Common Stock Equivalents, other than a change resulting from
the antidilution provisions thereof, the Warrant Share Price, to the extent in
any way affected by or computed using such Common Stock Equivalents, shall be
recomputed to reflect such change, but no further adjustment shall be made for
the actual issuance of Common Stock or any payment of such consideration upon
the conversion, exchange or exercise of such Common Stock Equivalents.

 

(iii)                               Upon
the termination or expiration of the convertibility, exchangeability or
exercisability of any Common Stock Equivalents, the Conversion Price of any of
the Series A Convertible Preferred Stock, to the extent in any way
affected by or computed using such Common Stock Equivalents, shall be
recomputed to reflect the issuance of only the number of shares of Common Stock
(and Common Stock Equivalents that remain convertible, exchangeable or
exercisable) actually issued upon the conversion, exchange or exercise of such
Common Stock Equivalents.

 

(iv)                              The
number of shares of Common Stock deemed issued and the consideration deemed
paid therefor pursuant to this Section 2.2 shall be appropriately adjusted
to reflect any change, termination or expiration of the type described in this Section 2.2.

 

2.2.5                        No
Increased Conversion Price. 
Notwithstanding any other provisions of this Section 2.2, except to
the limited extent set forth in this Section 2.2, no adjustment of the
Warrant Share Price pursuant to this Section 2.2 shall have the effect of
increasing the Warrant Share Price above the Warrant Share Price in effect
immediately prior to such adjustment.

 

2.3.                              Recapitalizations.  If at any time or from time to time there
shall be a recapitalization of the Common Stock (other than a subdivision,
combination or merger or sale of assets transaction provided for elsewhere in
this Warrant) provision shall be made so that the holder hereof shall
thereafter be entitled to receive upon exercise of this Warrant the number of
shares of stock or other securities or property of the Company or otherwise, to
which a holder of Common Stock would have been entitled on such
recapitalization.  In any such case,
appropriate adjustment shall be made in the application of the provisions of
this Section 2.3 with respect to the rights of the holders of this Warrant
after the recapitalization to the end that the provisions of this Section 2.3
shall be applicable after that event and be as nearly equivalent as
practicable.

 

2.4.                              All
calculations under this Section 2 shall be made to the nearest cent or to
the nearest one-hundredth of a share, as the case may be.  Anything in this Section 2 to the
contrary notwithstanding, the Company shall be entitled, but shall not be
required, to make such changes in the Exercise Price, in addition to those
required by this Section 2, as it shall determine, in its sole discretion,
to be advisable in order that any dividend or distribution in shares of Common
Stock, or any subdivision, reclassification or combination of Common Stock,
hereafter made by the Company shall not result in any federal income tax
liability to the holders of Common Stock or securities convertible into Common
Stock (including the Warrants).

 

2.5.                              In
the event that at any time, as a result of an adjustment made pursuant to this Section 2,
the Holder of this Warrant thereafter shall become entitled to receive any
shares of the 

 

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Company, other than Common Stock, thereafter
the number of such other shares so receivable upon exercise of this Warrant
shall be subject to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Common
Stock contained in this Section 2.

 

2.6.                              In
case of any reclassification or capital reorganization, or in case of any
consolidation or merger of the Company with or into another corporation (other
than a merger with a subsidiary in which merger the Company is the continuing
corporation and which does not result in any reclassification or capital
reorganization) or in case of any sale, lease or conveyance to another
corporation of the property of the Company as an entirety, the Company shall,
as a condition precedent to such transaction, cause effective provisions to be
made so that the holder of this Warrant shall have the right thereafter upon
conversion of this Warrant in accordance with the provisions of this Section 2,
to purchase the kind and amount of shares of stock and other securities and
property receivable upon such reclassification, capital reorganization,
consolidation, merger, sale or conveyance by a holder of the number of shares
of Common Stock which might have been received upon conversion of this Warrant
immediately prior to such reclassification, consolidation, merger, sale or
conveyance.  Any such provision shall
include provision for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Warrant.  The Company shall not effect any such
consolidation, merger, sale, transfer or other disposition, unless prior to or
simultaneously with the consummation thereof the successor corporation (if other
than the Company) resulting from such consolidation or merger or the
corporation purchasing or otherwise acquiring such properties shall assume, by
written instrument executed and mailed or delivered to the holder of this
Warrant at the last address of such holder appearing on the books of the
Company, the obligation to deliver to such holder such shares of stock,
securities, cash or properties as, in accordance with the foregoing provisions,
such holder may be entitled to acquire. 
The above provisions of this paragraph shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales,
transfers or other dispositions.

 

2.7.                              Other
Action Affecting Warrant Shares.  If
the Company takes any action affecting its shares of Common Stock after the
date hereof, that would be covered by Sections 2.1, 2.2 or 2.3 but for the
manner in which such action is taken or structured, other than an action
described in Sections 2.1, 2.2 or 2.3 which would in any way diminish the value
of this Agent’s Warrant, then the Warrant Share Price shall be adjusted in such
manner as the Board of Directors of the Company shall in good faith determine
to be equitable under the circumstances.

 

2.8.                              Notice
of Adjustments.  Upon the occurrence
of each adjustment or readjustment of the Warrant Share Price pursuant to this Section 2,
the Company at its expense will promptly compute such adjustment or
readjustment in accordance with the terms of this Agent’s Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based.  The Company will forthwith mail, by first
class mail, postage prepaid, a copy of each such
certificate to the Holder of this Agent’s Warrant at the address of such Holder
as shown on the books of the Company.

 

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2.9.                              Other
Notices.  If at any time:

 

2.9.1                        the
Company shall (i) offer for subscription pro rata to the holders of shares
of the Common Stock any additional equity in the Company or other rights; (ii) pay
a dividend in additional shares of the Common Stock or distribute securities or
other property to the holders of shares of the Common Stock (including, without
limitation, evidences of indebtedness and equity and debt securities); or (iii) issue
securities convertible into, or rights or warrants to purchase, securities of
the Company;

 

2.9.2                        there shall be any capital reorganization or
reclassification or consolidation or merger of the Company with, or sale,
transfer or lease of all or substantially all of its assets to, another entity;
or

 

2.9.3                        there shall be a voluntary or involuntary dissolution,
liquidation or winding up of the Company;

 

then, in any one or more
of said cases, the Company shall give, by first class mail, postage prepaid, to
the Holder of this Agent’s Warrant at the address of such Holder as shown on
the books of the Company, (a) at least 15 days’ prior written notice of
the date on which the books of the Company shall close or a record shall be
taken for such subscription rights, dividend, distribution or issuance, and (b) in
the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, at least 15 days’ prior written
notice of the date when the same shall take place if no stockholder vote is
required and at least 15 days’ prior written notice of the record date for
stockholders entitled to vote upon such matter if a stockholder vote is
required.  Such notice in accordance with
the foregoing clause (a) shall also specify, in the case of any such
subscription rights, the date on which the holders of shares of Common Stock
shall be entitled to exercise their rights with respect thereto, and such
notice in accordance with the foregoing clause (b) shall also specify the
date on which the holders of shares of Common Stock shall be entitled to
exchange their shares of Common Stock for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, as the case may be.  Failure to give the notice referred to herein
shall not affect the validity or legality of the action which should have been
the subject of the notice.

 

3.                                       No
Voting Rights.  Except as otherwise
provided herein, this Agent’s Warrant shall not be deemed to confer upon the
Holder any right to vote or to consent to or receive notice as a stockholder of
the Company, as such, in respect of any matters whatsoever, or any other rights
or liabilities as a stockholder, prior to the exercise hereof.

 

4.                                       Agent’s
Warrant Transferable.  This Agent’s
Warrant and all rights hereunder are transferable, in whole or in part, at the
principal offices of the Company by the Holder hereof, upon surrender of this
Agent’s Warrant properly endorsed; provided, however, that without the prior
written consent of the Company, this Agent’s Warrant and all rights hereunder
may be transferred only (i) to an affiliate of the initial Holder hereof
or successor in interest to any such person in a transaction exempt from
registration under the 1933 Act; or (ii) pursuant to the registration of
this Agent’s Warrant or the Warrant Shares under the 1933 Act or subsequent to
one year from the date hereof under Rule 144 or other exemption from such
registration.

 

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5.                                       Agent’s
Warrant Exchangeable; Loss, Theft, Destruction, Etc.  This Agent’s Warrant is exchangeable, upon
surrender hereof by the Holder hereof at the principal offices of the Company,
for new Agent’s Warrants of like tenor representing in the aggregate the right
to subscribe for and purchase the Warrant Shares which may be subscribed for
and purchased hereunder, each such new Agent’s Warrant to represent the right
to subscribe for and purchase such Warrant Shares (not to exceed the maximum
aggregate Warrant Shares which may be purchased hereunder) as shall be
designated by such Holder hereof at the time of such surrender.  Upon receipt of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this Agent’s Warrant
and, in the case of any such loss, theft or destruction, upon delivery of a
bond or indemnity satisfactory to the Company, or, in the case of any such
mutilation, upon surrender or cancellation of this Agent’s Warrant, the Company
will issue to the Holder hereof a new Agent’s Warrant of like tenor, in lieu of
this Agent’s Warrant, representing the right to subscribe for and purchase the
Warrant Shares which may be subscribed for and purchased hereunder.

 

6.                                       Legends;
Investment Representations.  Any
certificate evidencing the securities issued upon exercise of this Agent’s
Warrant shall bear a legend in substantially the following form:

 

THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”). 
SUCH SECURITIES MAY NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR (B) UPON RECEIPT BY THE ISSUER OF AN OPINION OF
COUNSEL, WHICH OPINION OF COUNSEL SHALL BE REASONABLY SATISFACTORY TO THE
ISSUER, TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE
ACT AND SUCH STATE SECURITIES LAWS.

 

7.                                       Modifications
and Waivers. The terms of the Agent’s Warrant may be amended, modified or
waived by written agreement of the Company and the Holder.

 

8.                                       Miscellaneous.
The Company shall pay all expenses and other charges payable in connection with
the preparation, issuance and delivery of this Agent’s Warrant and all
substitute Agent’s Warrants other than as set forth in this Section 8.  The Holder shall pay all taxes (other than
any issuance taxes, documentary stamp taxes and transfer taxes, which shall be
paid by the Company) in connection with such issuance and delivery of the
Warrant Shares and the Agent’s Warrants.

 

The Company shall
maintain, at the office or agency of the Company maintained by the Company,
books for the registration and transfer of the Agent’s Warrant.

 

9.                                       Reservation
of Warrant Shares.  The Company will
at all times reserve and keep available, free from preemptive rights, out of
the aggregate of its authorized but unissued Common Stock or its authorized and
issued Common Stock held in its treasury, solely for the purpose of enabling it
to satisfy any obligation to issue Warrant Shares upon exercise of this Agent’s
Warrant, the maximum number of shares of Common Stock which may then be
deliverable upon the exercise of this Agent’s Warrant.

 

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The Company or, if
appointed, the transfer agent for the Common Stock (the “Transfer Agent”) and
every subsequent transfer agent for any shares of the Company’s capital stock
issuable upon the exercise of any of the rights of purchase aforesaid will be
irrevocably authorized and directed at all times to reserve such number of
authorized shares as shall be required for such purpose.  The Company will keep a copy of this Agent’s
Warrant on file with the Transfer Agent and with every subsequent transfer
agent for any shares of the Company’s capital stock issuable upon the exercise
of the rights of purchase represented by this Agent’s Warrant.  The Company will furnish such Transfer Agent
a copy of all notices of adjustments and certificates related thereto
transmitted to the Holder pursuant to Section 2.8 hereof.

 

The Company covenants
that all Warrant Shares which may be issued upon exercise of this Agent’s
Warrant will, upon issue, be fully paid, nonassessable, free of preemptive
rights and free from all taxes, liens, charges and security interests arising
through the Company with respect to the issue thereof.

 

10.                                 Registration
Rights.  The Company agrees to
register the Warrant Shares for resale under the Securities Act on the terms
and subject to the conditions set forth in the Registration Rights Agreement
between the Company and each of the investors in the Offering.

 

11.                                 Descriptive
Headings and Governing Law.  The
descriptive headings of the several paragraphs of this Agent’s Warrant are
inserted for convenience only and do not constitute a part of this Agent’s
Warrant.  This Agent’s Warrant shall be
construed and enforced in accordance with the laws of the State of New York,
and the rights of the parties shall be governed by, the law of such State.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the
Company has caused this Agent’s Warrant Certificate to be duly executed by its
officer thereunto duly authorized as of the       
day of                      
       .

 

	
   

  	
   

  	
  MSO Holdings, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Albert Henry

  
	
   

  	
   

  	
   

  	
  Title: Chief Executive Officer

  
						

 

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PURCHASE FORM

 

Dated:                    ,
       

 

The undersigned hereby
irrevocably elects to exercise the within Agent’s Warrant to the extent of
purchasing                          
Warrant Shares (as such Warrant Shares have been adjusted to date) and hereby
makes payment of $          in
payment of the exercise price thereof.

 

	
   

  	
   

  	
   

  	
   

  

 

11

 

CASHLESS EXERCISE

 

Dated:                    ,
       

 

The undersigned
irrevocably elects to exercise the within Agent’s Warrant for  Warrant Shares (as such Warrant Shares
have been adjusted to date) and hereby makes payment pursuant to the Cashless
Exercise provision of the within Agent’s Warrant, and directs that the payment
of the Warrant Share Price be made by cancellation as of the date of exercise of
a portion of the within Agent’s Warrant in accordance with the terms and
provisions of Section 1(b) of the within Agent’s Warrant.

 

	
   

  	
   

  	
   

  	
   

  

 

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ASSIGNMENT

 

TO BE EXECUTED BY THE HOLDER

IN ORDER TO ASSIGN WARRANTS

 

FOR VALUE RECEIVED,                                            
hereby sells, assigns and transfers unto

 

PLEASE INSERT SOCIAL
SECURITY OR OTHER IDENTIFYING NUMBER

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [please print or type name and address]

  	
   

  	
   

  

 

                                                  
of the Warrants represented by this Warrant
Certificate, and hereby irrevocably constitutes and appoints                                                                                                                            
Attorney to transfer this Warrant Certificate on the books of the Company, with
full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  
	
  X

  	
   

  	
   

  
	
   

  
	
  Signature Guaranteed

  	
   

  
	
   

  	
   

  
				

 

THE SIGNATURE TO THE
ASSIGNMENT OR THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME AS WRITTEN
UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION (A BANK, STOCKBROKER, SAVINGS AND LOAN
ASSOCIATION OR CREDIT UNION WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE
MEDALLION PROGRAM) PURSUANT TO RULE 17Ad-15 OF THE SECURITIES EXCHANGE ACT OF
1934.

 

13Exhibit 10.5

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Amended and Restated Executive Employment
Agreement (“Agreement”) is made effective as of May 26, 2005 (“Effective
Date”), by and between MSO Medical, Inc., a Delaware corporation (“Company”),
MSO Holdings, Inc., a Delaware corporation (“Parent”) and Albert J. Henry
(“Executive”).

 

RECITALS

 

A.                                   Company
and Executive have previously entered into that certain Executive Employment
Agreement dated October 1, 2004 (the “Prior Agreement”).

 

B.                                     Company
and Parent are parties to that certain Agreement and Plan of Merger dated January 4,
2005 (the “Merger Agreement”) pursuant to which the Company shall become a
wholly-owned subsidiary of Parent at the effective time of the merger
contemplated by such Merger Agreement.

 

C.                                     The
parties to the Prior Agreement desire to amend and restate the Prior Agreement
to clarify certain provisions set forth in the Prior Agreement in light of the
Merger and to add the Parent as a party hereto.

 

D.                                    Company,
Parent and Executive desire to enter into this Agreement to provide for
Executive’s employment by the Parent and Company, upon the terms and conditions
set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing
facts and mutual agreements set forth below, the parties intending to be
legally bound, agree to amend and restate the Prior Agreement as follows:

 

1.                                       Employment.

 

1.1.                              Employment Term.  The term of Executive’s employment commenced
as of October 1, 2004 and shall continue until and through December 31,
2005 (the “Initial Term”), unless earlier terminated in accordance
herewith.  Upon the expiration of the
Initial Term, this Agreement shall automatically renew for successive one (1) year
periods unless the Company and/or Parent provides Executive written notice of
its intent to terminate the Agreement no later than one hundred eighty (180)
days prior to the expiration of the then-current term.  The period commencing as of the Effective
Date and ending on the date in which this Agreement expires or is terminated in
accordance herewith is hereinafter referred to as the “Employment Term.”

 

1.2.                              Duties;
Responsibilities.  Executive shall
serve as Chairman of the Parent’s Board of Directors (the “Parent Board”) and Chief
Executive Officer of the Parent.  In
addition, the Executive shall serve as the Chairman of the Company’s Board of
Directors (the “Company Board”) and Chief Executive Officer of the Parent.  During the Term, Executive shall perform all
duties and accept all responsibilities incident to such position or other
appropriate duties as may be assigned to him by the Parent Board.  Executive shall perform his duties consistent
with his experience and abilities in furtherance of the Parent’s and Company’s
interests and shall devote 

 

1

 

such amount of his business time, attention,
skill and energy as is required for the competent performance and fulfillment
of his duties and services specified herein or as delegated by the Parent Board
from time to time, and the Parent and Company will be entitled to all of the
benefits and profits arising from or incident to all such work and
services.  Executive may attend to other
business interests so long as such activities do not interfere with the
performance of Executive’s duties hereunder and do not compete with the Parent
or Company.  Notwithstanding the
foregoing, as of January 1, 2006, Executive may, in his sole and absolute
discretion, elect to and resign as the Parent’s and Company’s Chief Executive
Officer and, in such event, Executive shall only serve as the Parent’s and Company’s
Chairman.  In the event Executive elects
to resign as the Parent’s and Company’s Chief Executive Officer, Executive’s
Annual Base Salary (as defined in Section 2.1 below) shall be adjusted to an
amount commensurate with Executive’s then-current responsibilities and
involvement in the Parent and Company as may be determined by the Parent Board
in its reasonable discretion; provided, however that the annual vesting of
187,500 shares of the Restricted Securities as described in Section 2.3
below shall continue in full force and effect. 
Notwithstanding the foregoing, nothing herein shall be construed as
preventing Executive from resigning as Chairman of the Parent or Company at any
time in his sole discretion.

 

1.3.                              Best
Efforts.  Executive will expend his
best efforts on behalf of Parent and Company, and will abide by all policies
and decisions made by Parent and Company, as well as all applicable federal,
state and local laws, regulations or ordinances.  Executive will act in the best interest of Parent
and Company at all times.

 

2.                                       Compensation.

 

2.1.                              Base
Salary.  As compensation for
Executive’s performance of all of his duties hereunder, effective as of January 1,
2005, Company or Parent shall pay to Executive an annual base salary of Three
Hundred Thousand Dollars ($300,000) (“Annual Base Salary”), payable in
installments at such times as the Company or Parent, as the case may be, shall
pay its other senior level executives (but in any event no less often than
monthly), less required deductions for state and federal withholding tax,
social security and all other employment taxes and payroll deductions.

 

2.2.                              Annual Bonus.  In addition to the Annual Base Salary, Executive shall be eligible
to receive an annual cash bonus in an amount to be determined by the Parent Board
(“Annual Bonus”), based on the satisfaction of objective criteria and
performance standards established in advance by the Parent Board with respect
to each fiscal year, which such criteria shall include, without limitation, the
achievement of specified (i) revenue milestones, (ii) gross profit
margins; and (iii) other bonus programs as determined by the Parent Board,
in its sole discretion.  Any Annual Bonus
shall be determined and approved by, and at the sole discretion of, the Parent Board.  The Annual Bonus, if any, shall be paid to
Executive within thirty (30) days after the end of the applicable fiscal year.

 

2.3.                              Stock Options.  Executive shall be eligible for grants of
stock options, restricted stock and other equity incentives pursuant to the one
or more equity incentive plans offered by the Parent from time to time on the
same terms applicable to the Parent’s other executive officers, subject to the
approval of the Parent Board.  The Parent Board, in its
discretion, may provide for the acceleration of unvested shares under certain
circumstances in the applicable option agreement.  Pursuant to the Merger Agreement, Executive was
issued 1,534,458 shares of the Parent’s Common Stock in exchange for 1,000,000
shares of the Company’s Common Stock, 

 

2

 

671,325 of the
Parent Common Stock were vested on the date of issuance and 863,133 shares were
subject to vesting (the “Restricted Securities”).  Subject to the terms and conditions of that
certain Founder Stock Restriction Agreement dated as of even date herewith, an
additional 287,711 shares shall vest on each January 1st hereafter until
January 1, 2008 at which time all of the Restricted Securities shall be fully
vested.

 

2.4.                              Automobile Allowance.  During the Employment Term, Executive shall
be entitled to receive a Seven Hundred Dollar ($700) monthly automobile allowance,
payable monthly in advance, which shall include all costs of attendant to the
use of the automobile, including, but not limited to, liability and property
insurance coverage, costs of maintenance and fuel.  Notwithstanding the foregoing, the amount of
the foregoing monthly allowance shall be reviewed by the Parent annually.

 

2.5.                              Incentive
Compensation/Savings/Retirement.  In
addition to the Annual Base Salary and the Annual Bonus, if any, payable as
hereinabove provided, Executive shall be entitled to participate in all
incentive compensation, savings and retirement plans, practices, policies and
programs generally applicable to senior level executives of Parent and/or
Company that are in effect during Executive’s employment with Parent and/or
Company.

 

3.                                       Benefits.

 

3.1.                              Health
and Welfare Benefit Plans.  During the
Employment Term, Executive and/or Executive’s family, as the case may be, shall
be eligible for participation in, and shall receive all benefits under, health
and welfare benefit plans, practices, policies and programs provided by Company
and/or Parent (including, without limitation, medical prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent generally
applicable to senior level executives of Company and/or Parent, subject to the
terms and conditions of Parent’s and/or Company’s benefit plan documents,
policies or programs (collectively, the “Benefit Coverages”).  Parent and Company each reserves the right to
change or eliminate Parent’s or Company’s benefit plans, practices, policies or
programs on a company-wide, prospective basis, at any time.

 

3.2.                              Customary
Fringe Benefits.  Executive shall be
entitled to all customary and usual fringe benefits generally available to
senior level executives of Parent and Company, subject to the terms and
conditions of Parent’s and Company’s benefit plan documents, policies or
programs.  Parent and Company each
reserves the right to change or eliminate the fringe benefits on a
company-wide, prospective basis, at any time.

 

3.3.                              Business
Expenses.  Executive shall be
entitled to receive prompt reimbursement for all reasonable, out-of-pocket
business expenses incurred in the performance of his duties on behalf of Parent
and/or Company (including mobile telephone usage).  To obtain reimbursement, expenses must be
submitted promptly with appropriate supporting documentation in accordance with
Parent’s or Company’s policies, as the case may be.

 

3.4.                              Vacation.  Executive shall be entitled to paid vacation
in accordance with the plans, policies, and programs of Parent and/or Company as
in effect for senior level executives of Parent and/or Company.

 

3

 

4.                                       Board Seat.  So long as Executive holds the position of
either Chairman and/or Chief Executive Officer of Parent, Executive shall be a
member of the Parent Board and Parent shall take any and all corporate action
required to perfect the foregoing.

 

5.                                       Termination.  The Agreement shall terminate upon the
occurrence of any of the following events.

 

5.1.                              Disability.  The Company and Parent may terminate this
Agreement if Executive is unable substantially to perform his essential duties
and responsibilities hereunder, with or without accommodation, by reason of
illness, injury or incapacity for a period of six (6) consecutive months,
or for more than six (6) months in the aggregate during any twelve (12)
month period.  In the event of such
termination, the Company or Parent shall pay Executive his Annual Base Salary
through the date of such termination, plus any amounts payable under Section 3.3
that were unreimbursed as of the date of termination.  In addition, Executive shall be entitled,
subject to applicable law, to the following: (i) a lump sum severance
payment in an aggregate amount equal to one times (1x) Executive’s then-current
Annual Base Salary; (ii) a number of Restricted Shares shall vest that
would have vested during the calendar year in which such termination was
effective had executive been employed on January 1st of the
following year (iii) a pro rata Annual Bonus for the year of termination; (iv) any
other amounts earned, accrued or owing but not yet paid under Section 2
above; (v) continued participation for what would have been the remaining
Employment Term in those Benefit Coverages in which he was participating on the
date of termination and which, by their terms, permit a former employee to
participate; and (vi) any other benefits in accordance with applicable
plans and programs of the Company or Parent, as the case may be; provided,
however that the Company or Parent, as the case may be, shall only be required
to pay for a continuation of health insurance the Executive received during the
Employment Term or other insurance comparable thereto (i.e., COBRA health
insurance) for so long as permitted under the applicable insurance policy and
by law.  In such event, the Company and
Parent shall have no further liability or obligation to Executive for
compensation under this Agreement except as otherwise specifically provided in
this Agreement.  Executive agrees, in the
event of a dispute under this Section 5.1, to submit to a physical
examination by a licensed physician selected by the Parent.  The Parent agrees that Executive shall have
the right to have his personal physician present at any examination conducted
by the physician selected by the Parent.

 

5.2.                              Death.
 This Agreement shall terminate in the
event of Executive’s death.  In such
event, the Company or Parent shall pay to Executive’s executors, legal
representatives or administrators, as applicable, Executive’s Annual Base
Salary through the date of such termination, plus any amounts due under Section 3.3
that were unreimbursed as of the date of termination.  In addition, Executive’s estate shall be entitled
to (i) a lump sum severance payment in an aggregate amount equal to one
times (1x) Executive’s then-current Annual Base Salary; (ii) a number of
Restricted Shares shall vest that would have vested during the calendar year in
which such termination was effective had executive been employed on January 1st
of the following year a pro rata Annual Bonus for the year of termination; (iii) any
other amounts earned, accrued or owing but not yet paid under Section 2
above; and (iv) any other benefits in accordance with applicable plans and
programs of the Company or Parent, as the case may be.  The Company and Parent shall have no further
liability or obligation under this Agreement to Executive’s executors, legal
representatives, administrators, heirs or assigns or any other person claiming
under or through him except as otherwise specifically provided in this
Agreement.

 

4

 

5.3.                              Cause.
 The Parent and Company may terminate this
Agreement, at any time, for “Cause,” in which event all payments under this
Agreement shall cease, except for Annual Base Salary to the extent already
accrued.  For purposes of this Agreement,
Executive’s employment may be terminated for “Cause” (i) immediately if
Executive is convicted of, or pleads guilty or “no contest” to, a felony; (ii) following
the determination by the Parent Board (without Executive’s participation) that
Executive has engaged in fraud, intentional misconduct or intentional
misappropriation of Parent or Company funds or property; (iii) in the
event of a material breach of any material provision under this Agreement by
Executive (for reasons other than an inability to perform due to a documented
physical or mental condition), which breach, if capable of being cured, is not
cured by Executive within thirty (30) days following notice of same from the Parent
Board.

 

5.4.                              Constructive
Termination Without Cause.

 

(a)                                  “Constructive
Termination Without Cause” shall mean a termination of the Executive’s
employment at his initiative following the occurrence, without the Executive’s
written consent, of one or more of the following events:

 

(i)                                     a
reduction in Executive’s then current Annual Base Salary, unless such reduction
is made as part of and is generally consistent with a reduction of senior
executive salaries;

 

(ii)                                  a
material diminution in Executive’s duties, title, responsibilities, authority
as Chief Executive Officer or the assignment to Executive of duties which are
materially inconsistent with his duties or which materially impair the
Executive’s ability to function in his then current position; and

 

(iii)                               a
requirement by the Company that Executive move his residence.

 

(b)                                 In
the event of a Constructive Termination Without Cause, Executive shall be
entitled to receive:  (i) any
amounts earned, accrued or owing but not yet paid pursuant to Section 2
above; (ii) a lump sum severance payment in an aggregate amount equal to
(x) the lesser of one times (1x) Executive’s then-current Annual Base Salary or
the Base Salary due for the remainder of the Employment Term, plus (y) a
prorated portion of Executive’s then-current maximum Annual Bonus; and (iii) a
continuation of all Benefit Coverages for which Executive is eligible to
participate as of the date of termination in a fashion which is similar to
those which Executive is receiving immediately prior to the date of termination
for so long after such termination without cause as permitted under the
applicable insurance policy and by law.  Amounts
payable and benefits to be received pursuant to subsections (i), (ii), and (iii) of
the preceding sentence will be collectively referred to herein as the “Severance
Package.”

 

5.5.                              Termination
for Convenience.  Executive may
terminate this Agreement, at any time, with or without Cause, upon thirty (30)
days prior written notice to Parent and Company.

 

6.                                       Non-Exclusivity
of Rights. Nothing in this Agreement shall prevent or limit Executive’s
continuing or future participation in or rights under any benefit, bonus,
incentive or 

 

5

 

other plan or
program provided by the Company, Parent or any affiliate of either of the
foregoing and for which Executive may qualify; provided, however, that if
Executive becomes entitled to and receives all of the payments provided for in
this Agreement, Executive hereby waives his right to receive payments under any
severance plan or similar program applicable to all employees of the Parent or Company.

 

7.                                       Survivorship.
The respective rights and obligations of the parties hereunder shall survive
any termination of the Executive’s employment to the extent necessary to the
intended preservation of such rights and obligations.

 

8.                                       Indemnification;
Insurance.  The Company and Parent
shall indemnify Executive to the fullest extent allowed by applicable law
pursuant to an Indemnification Agreement substantially in the form attached
hereto as Exhibit A, as the same may be amended from time to
time.  Executive shall be covered by the Parent’s
and/or Company’s director and officer liability insurance, if any.  In addition, Company and Parent agree to
defend, indemnify, and hold harmless Executive from and against any claim,
action, proceeding, liability, loss, damage, cost, or expense, including,
without limitation, attorneys’ fees, arising out of or relating to any claim,
proceeding or other action brought against Executive by any employee of the
Company and/or Parent and/or any of their affiliated entities and any of their
respective vendors, contract hospitals, patients, consultants, contract
physicians or any other third party with whom the Company, Parent or any of
their affiliated entities has or had a business or patient relationship.

 

9.                                       Confidentiality and
Proprietary Rights.  If not already done so, concurrently with the
execution and delivery of this Agreement, Executive shall execute and
deliver to the Company the Company’s standard form Confidentiality and
Assignment of Creative Works Agreement (the “Confidentiality Agreement”), a
copy of which is attached hereto as Exhibit B.  The Confidentiality Agreement shall remain in
full force and effect in accordance with the terms thereof and shall survive
the termination of this Agreement.

 

10.                                 Nonsolicitation.  Executive understands and agrees that Parent’s
and Company’s employees and customers and any information regarding Parent’s
and Company’s employees and/or customers is confidential and constitutes trade
secrets.  Accordingly, Executive agrees
that during the term of this Agreement, and for a period of one (1) year following
the termination of this Agreement, Executive will not, either directly or
indirectly, separately or in association with others: (a) interfere with,
impair, disrupt or damage Parent’s or Company’s relationship with any of its respective
customers, customer prospects, vendors, contractors, collaborators, joint
venturers, partners, licensors, or licensees by soliciting or encouraging
others to solicit any of them for the purpose of diverting or taking away
business or opportunities from Parent or Company; or (b) interfere with,
impair, disrupt or damage Parent’s or Company’s business by soliciting or
attempting to hire any of Parent’s or Company’s employees or causing others to
solicit or encourage any of Parent’s or Company’s employees to discontinue their
employment with Parent or Company; provided, however, that Executive being
named as a referral on the resume of a Parent or Company employee and Executive
responding to inquiries resulting therefrom shall not violate this Agreement.

 

6

 

11.                                 Nondisparagement.  Executive agrees not to disparage, defame or
make any negative or critical public statements, whether verbally or in
writing, regarding the personal or business reputation, technology, products,
practices or conduct of Parent or Company or any of Parent’s or Company’s
officers or directors.  In addition,
except as required by law, Executive shall not make any public statements
regarding Parent or Company without the prior written approval of the Parent Board.  Likewise, Parent and Company agree that their
respective officers and directors will not disparage, defame or make negative
or critical statements, written or oral, regarding the personal or business
reputation, practices or conduct of Executive.

 

12.                                 Injunctive Relief.  Executive acknowledges that Executive’s
breach of the covenants contained in Sections 9-11, inclusive, would cause
irreparable injury to Parent and Company and agrees that in the event of any
such breach, Parent and Company shall be entitled to seek temporary,
preliminary and permanent injunctive relief without the necessity of proving
actual damages or posting any bond or other security.

 

13.                                 Release.  Receipt of the Severance Package pursuant hereto
shall be in lieu of all other amounts payable by the Parent and Company to
Executive and shall be received by Executive in settlement and complete release
of all claims Executive may have against the Parent and Company other than
those arising pursuant to payment of the Severance Package.  Executive acknowledges and agrees that
execution of the general release of claims in favor of the Parent and Company
setting forth the terms of this Section 13 and otherwise reasonably
acceptable to the Parent and Company and Executive shall be a condition
precedent to the Parent’s and Company’s obligation to pay the Severance Package
to Executive.  The cash portion of the
Severance Package shall be due and payable by the Parent or Company within thirty
(30) days after the date of termination.

 

14.                                 Mitigation.
There shall be no offset against amounts due to Executive under this Agreement
on account of any remuneration attributable to any subsequent employment that
he may obtain.

 

15.                                 Arbitration;
Expenses.

 

(a)                                  In
the event of any dispute under the provisions of this Agreement other than a
dispute in which the sole relief sought is an equitable remedy such as an
injunction, the parties shall be required to have the dispute, controversy or
claim settled by binding arbitration in the City of Chicago, Illinois in
accordance with the commercial arbitration rules then in effect of the
American Arbitration Association, before a panel of three arbitrators, two of
whom shall be selected by the Parent and Executive, respectively, and the third
of whom shall be selected by the other two arbitrators.  Any award entered by the arbitrators shall be
final, binding and nonappealable and judgment may be entered thereon by either
party in accordance with applicable law in any court of competent jurisdiction.
This arbitration provision shall be specifically enforceable.  The fees of the American Arbitration
Association and the arbitrators and any expenses relating to the conduct of the
arbitration (including reasonable attorneys’ fees and expenses) shall be paid
as determined by the arbitrators.

 

(b)                                 In
the event of an arbitration or lawsuit by either party to enforce the provisions
of this Agreement, if Executive prevails on any material issue which is the
subject of

 

7

 

such arbitration
or lawsuit, he shall be entitled to recover from the Parent or Company the
reasonable costs, expenses and attorneys’ fees he has incurred attributable to
such issue.

 

16.                                 General
Provisions.

 

16.1.                        Notices.  Any notice required to be given hereunder
shall be delivered personally, shall be sent by first class mail, postage
prepaid, return receipt requested, by overnight courier, or by facsimile, to
the respective parties at the addresses given below, which addresses may be
changed by the parties by notice conforming to the requirements of this
Agreement. 

 

	
  If to the
  Company or Parent, to:

  	
   

  	
  MSO
  Medical, Inc. 

  Attn: President 

  2333 Waukegan Road, Suite 175 

  Bannockburn, Illinois 60015

  
	
   

  	
   

  	
   

  
	
  With a required
  copy to:

  	
   

  	
  Kenneth D.
  Polin, Esq. 

  Foley & Lardner LLP 

  402 West Broadway, Suite 2300 

  San Diego, California 92101

  
	
   

  	
   

  	
   

  
	
  If to Executive,
  to:

  	
   

  	
  Albert Henry 

  1265 Loch Lane 

  Lake Forest, Illinois 60045

  

 

Any such notice deposited
in the mail shall be conclusively deemed delivered to and received by the
addressee four (4) days after deposit in the mail, if all of the foregoing
conditions of notice shall have been satisfied. All facsimile communications
shall be deemed delivered and received on the date of the facsimile, if (a) the
transmittal form showing a successful transmittal is retained by the sender,
and (b) the facsimile communication is followed by mailing a copy thereof
to the addressee of the facsimile in accordance with this paragraph. Any
communication sent by overnight courier shall be deemed delivered on the
earlier of proof of actual receipt or the first day upon which the overnight
courier will guarantee delivery.

 

16.2.                        Contents
of Agreement; Amendment and Assignment.

 

(a)                                  This
Agreement supersedes all prior agreements, including, without limitation, the
Prior Agreement, and sets forth the entire understanding between the parties
hereto with respect to the subject matter hereof and cannot be changed,
modified, extended or terminated except upon written amendment approved by the
Company and Parent and executed on their behalf by a duly authorized officer.  The parties acknowledge and agree that the
Company shall remain Executive’s employer hereunder and shall be directly
responsible for any payments due hereunder to Executive and that Parent agrees
to be bound by the terms and conditions of this Agreement as well.

 

(b)                                 All
of the terms and provisions of this Agreement shall be binding upon and inure
to the benefit of and be enforceable by the respective heirs, executors,
administrators, legal representatives, successors and assigns of the parties
hereto, except that the 

 

8

 

duties and
responsibilities of Executive hereunder are of a personal nature and shall not
be assignable or delegable in whole or in part by Executive.

 

16.3.                        Severability.
If any provision of this Agreement or application thereof to anyone or under
any circumstances is adjudicated to be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect any other
provision or application of this Agreement which can be given effect without
the invalid or unenforceable provision or application and shall not invalidate
or render unenforceable such provision or application in any other
jurisdiction.  If any provision is held
void, invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances.

 

16.4.                        Remedies
Cumulative; No Waiver. No remedy conferred upon a party by this Agreement
is intended to be exclusive of any other remedy, and each and every such remedy
shall be cumulative and shall be in addition to any other remedy given
hereunder or now or hereafter existing at law or in equity.  No delay or omission by a party in exercising
any right, remedy or power hereunder or existing at law or in equity shall be
construed as a waiver thereof, and any such right, remedy or power may be
exercised by such party from time to time and as often as may be deemed
expedient or necessary by such party in its sole discretion.

 

16.5.                        Beneficiaries;
References.  Executive shall be
entitled, to the extent permitted under any applicable law, to select and
change a beneficiary or beneficiaries to receive any compensation or benefit
payable hereunder following Executive’s death by giving the Parent and Company
written notice thereof.  In the event of
Executive’s death or a judicial determination of his incompetence, reference in
this Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative.

 

16.6.                        Captions.
All section headings and captions used in this Agreement are for
convenience only and shall in no way define, limit, extend or interpret the
scope of this Agreement or any particular section hereof.

 

16.7.                        Executed
Counterparts. This Agreement may be executed in one or more counterparts,
all of which when fully-executed and delivered by all parties hereto and taken
together shall constitute a single agreement, binding against each of the
parties. To the maximum extent permitted by law or by any applicable
governmental authority, any document may be signed and transmitted by facsimile
with the same validity as if it were an ink-signed document.  Each signatory below represents and warrants
by his signature that he is duly authorized (on behalf of the respective entity
for which such signatory has acted) to execute and deliver this instrument and
any other document related to this transaction, thereby fully binding each such
respective entity.

 

16.8.                        Governing
Law. This Agreement shall be governed by and interpreted under the laws of
the State of Delaware without giving effect to any conflict of laws provisions.

 

THE PARTIES TO THIS
AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT
ON THE DATES SHOWN BELOW.

 

[Remainder of Page Intentionally Left Blank]

 

9

 

IN WITNESS WHEREOF, the undersigned, intending to be
legally bound, have executed this Agreement as of the date first above written.

 

	
  “Company”

  	
  MSO
  MEDICAL, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Straus

  	
   

  
	
   

  	
  Print Name and
  Title: Steven Straus, President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2333 Waukegan
  Road, Suite 175,

  Bannockburn, Illinois 60015

  
	
   

  	
   

  
	
   

  	
   

  
	
  “Parent”

  	
  MSO
  HOLDINGS, INC., a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Straus

  	
   

  
	
   

  	
  Print Name and
  Title: Steven Straus, President

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  2333 Waukegan
  Road, Suite 175,

  Bannockburn, Illinois 60015

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Executive”

  	
  By:

  	
  /s/ Albert Henry

  	
   

  
	
   

  	
  Print Name:

  	
  Albert Henry

  
	
   

  	
  Address:

  	
  1265 Loch Lane 

  Lake Forest, Illinois 60045

  
					

 

 

[Signature Page to Executive Employment Agreement]

 

10

 

EXHIBIT A

INDEMNIFICATION AGREEMENT

 

A-1

 

EXHIBIT B

CONFIDENTIALITY AGREEMENT

 

B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]