Document:

Exhibit 10.1

Draft: September 14,
2007

STOCK
PURCHASE AGREEMENT  RE:

KENJA II, INC F/K/A MARK R. DEAN, INC. a Florida Corporation and KENKJA 

VENTURES, INC. a Florida Corporation.

THIS AGREEMENT is
made on                       ,
between the persons identified on the signature pages as “Seller Equityholders”
(the “Seller Equityholders”) and VCG HOLDING CORPORATION, a Colorado
Corporation on behalf of Florida corporation to be formed (“Buyer”).

BACKGROUND

A.                                        Seller,
KenJa II, Inc (“KenjaII”) a Florida corporation owns and operates a business
commonly known as “Platinum Plus”, located at                 ,
Hialeah Florida. KenjaII operates an adult entertainment business which
presents adult entertainment at its business location. Seller Kenja Ventures,
Inc (“Kenja”) owns a duly issued Florida Liquor License and an Adult
Entertainment License from the City Hialeah, Florida. Collectively the assets
of Kenja and KenjaII are referred to as the “Business”). Kenja and KenjaII are
sometimes referred to as “Seller” and/or “Sellers.”

B.                                          Third
Properties, Inc., a wholly owned by Seller Equityholders, is the sole owner of
the real property located                   ,
          .Florida.

C.                                          That
the term “Seller” shall mean Kenja and Kenja II, either individually or
collectively, whichever is appropriate in the context in which it is used.

D.                                         Gregroy
Kenwood Gaines (“Seller Equityholders”) is the sole and only shareholder in
Sellers, all of whom having consented to this Agreement.

E.                                           Seller
Equityholders own all of Seller’s issued and outstanding capital stock in
both  Kenja and in KenjaII. (“Seller
Equity Interests”).

F.                                           Buyer
desires to purchase from Seller, Equityholders, and Seller Equityholders desire
to sell to Buyer, all of the issued and outstanding Seller Equity Interests
(the “Purchased Equity Interests”) on the terms of and subject to the
conditions of this Agreement.

G.                                          Gregory
Kenwood Gaines (the “Principal”) is Seller’s chief executive officer and
controlling shareholder.

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H.                                         As
a further condition to Buyer’s willingness to purchase the Purchased Equity
Interests, Seller Equityholders have agreed to not compete with Buyer or Seller
in the conduct of the Business, as provided in noncompetition agreements in the
form agreed upon by the parties on the date of this Agreement (the “Noncompetition
Agreements”).

AGREEMENTS  

NOW, THEREFORE, in
consideration of the Background and the terms and conditions set forth in this
Agreement, each of the Seller Equityholders and Buyer agree as follows:

1.                                      Agreement
of Purchase and Sale of the Purchased Equity Interests. On the terms and
subject to the conditions set forth in this Agreement, Seller Equityholders,
jointly and severally, agree to sell and deliver to Buyer on the Closing Date
the Purchased Equity Interests, free from all Encumbrances (as defined in
Section 8.4), and Buyer agrees to purchase the Purchased Equity Interests from
Seller Equityholders.

2.                                      Purchase
Price for Purchased Equity Interests.

2.1                                Shares
to be Purchased.  On the terms and
conditions set forth in this Agreement, the Seller and Selling Shareholders
hereby sell, assign, transfer set over and convey to the Buyer on the Closing
Dates described below, the Purchased Shares (as defined below). The Purchased
Shares are free and clear from any and all encumbrances (as defined in Section
8.  4). 
The shares to be purchased (the “Purchased Shares”) consist of all of
the issued and outstanding stock in Kenja, Inc. and all of the issued and
outstanding shares of stock in Kenja II (sometimes collectively referred to as
the “Companies”).

2.2                                Share
Purchase Price.  On the Closing Dates
described herein, the Buyer shall pay the following per share purchase price in
the manner set forth in Paragraph 2.3 and 2.4 below to Seller and Selling
Shareholder against receipt of the certificates for the Purchased Shares, duly
endorsed for transfer or accompanied by duly executed stock powers as follows: SIX MILLION EIGHT HUNDRED AND SEVENTY FIVE THOUSAND ($6,875,000.00)
DOLLARS allocated as follows:

Kenja:                             /per
share (Total price: $         )

KenjaII:              /per
share (Total Price: $                  )

In addition, Seller and Buyer shall make appropriate adjustment for
operating costs that straddle the Closing Date, such as property taxes,
insurance and utilities (the “Closing Adjustments”)

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2.3                                Payment
of Purchase Price –.  On the Closing
Date, the Buyer shall pay to the Seller in cash or by certified check for the
purchase of all of the issued and outstanding shares in sellers., the sum of SIX MILLION EIGHT HUNDRED AND SEVENTY FIVE THOUSAND ($6 ,875,000.00)
DOLLARS) as follows:

a.                                                                                       $50,000.00
from escrow deposited at the time of the of the execution of the letter of
intent;

b.                                                                                      $1,000,000.00
credit from the closing involving an affiliate of Seller and Seller
Equityholder pursuant to a purchase agreement dated 8-21-07; and

c.                                                                                       $
5,825,000.00 at closing.

2.4                                The
allocation of the purchase price is set forth in Exhibit 2.3a attached hereto [To be reviewed
by Seller’s accountants and tax lawyer] and incorporated by reference herein.  In addition, Buyer shall pay at closing all
pre-paid items set forth on Exhibit 2.3b.  In addition, Seller shall pay to Buyer, or
Buyer shall pay to Seller, as the case may be, an amount equal to the net
Closing Adjustment as defined in Article 2.2 hereinabove found in Exhibit 2.3b.

2.5                                Transfer
of License(s): Seller shall transfer and Purchaser shall purchase, if a
transfer is permitted by law, and if not, Seller shall assist Purchaser in
transferring and/or acquiring, all liquor licenses and permits used in
connection with the Business, as well all City/County/State issued adult
entertainment licenses, which shall permit the Purchaser to operate the
business in substantially the same manner it is presently being operated. In
the event that the Purchaser is not approved for transfer of the liquor license
or any City/County/State issued license on or before the Closing Date, then
this Agreement shall terminate and the Purchaser shall be entitled to a full
refund of any payments, whether to escrow or to the seller.

2.6                                Asset
in Business: As of the Closing Date, the Seller will inusre that Kenja and
KenjaII own all of the leases presently in existence, along with all equipment,
furniture, and fixtures, and  personal
property of the business in substantially the same  form as they existed as of the date this
Agreement is executed.

2.7                                No
Liabilities.  Prior to the Closing Date,
Seller and Seller Equityholders shall 
have caused all known liabilities and obligations sellers, other than
with respect to liabilities arising from the contracts accepted by Buyer (the “Assumed
Contracts”) and set forth on Schedule 8.17,
and with respect to such contracts only for products and services provided to
the Companies after the Closing Date (the “Future Liabilities”).  Seller and Selling Shareholder represent and
warrant that as of the Closing Date, the Sellers will have satisfied, in cash,
all of the liabilities for all products and services received by the Companies
prior to the Closing Date, and that the Companies will not have any liabilities
whatsoever, other than with respect to the Future Liabilities.

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2.8                                Excluded
Assets.  Buyer is not entitled to, and
Seller may distribute from Kenkev to the “Seller Equityholder), the following
assets of Sellers, to the extent existing or arising out of facts occurring
before the Closing Date: cash, cash equivalents, bank accounts, accounts
receivable, credit card processing agreements and other similar assets relating
to amounts earned before the Closing Date but subject to the “Closing
Adjustments.”

3.                                      Related
Agreements.

3.1                                Noncompetition
Agreements. At the Closing, VCG Holding Corporation the “Buyer”  and the Seller and the Seller Equityholder,
shall execute and deliver to each other the Noncompetition
Agreements and Confidentiality Agreement
in the form attached hereto as Exhibit 3.1.
The Non-Compete Agreements shall provide for the Seller Equityholder not to
compete with VCG Holding Corporation, the Buyer, for a period of 5 years and a
radius of 50 miles from Sellers location and for VCG Holding Corporation, the
Buyer not to compete with Seller or Seller Equityholder for a period of three
years in any area within 50 miles of any existing businesses of Seller or
Seller Equityholder or in which Seller Equityholder has a controlling interest,
except for Florida, a listing of all such business is attached as an addendum
to this Agreement, for which Seller and Seller Equityholder have granted VCG a
first right of refusal on the sale of such businesses as consideration for this
provision  In each case, the restrictions
shall apply to all affiliate businesses of Buyer and Seller Equityholder.   It is the intent of the parties that neither
Buyer nor Seller will operate within fifty (50) miles of a present or future
location of the other, large metropolitan areas and Florida excluded, and which
shall include the metropolitan markets with greater then 3 million persons in
terms of overall population, along with all present locations where either
party presently operates.

3.2                                Buy-Sell
Agreement. At or before the Closing, Seller and Seller Equityholders shall
terminate any and all Buy-Sell Agreements relating to the company’s.

3.3                                Lease.
At the time of closing, Buyer and Landlord will enter into a commercially
reasonable lease, to be mutually agreed upon by the parties with Third
Properties, Inc., a South Carolina Corporation which owns the real property
upon which the Business is located, in the form attached hereto as Exhibit 3.4 for the lease of the Real Property located                        ,
Florida. The minimum term of the lease shall be for a period of at least 25
years, with a base rent of $10,000.00 and the lease shall provide a right of
first refusal to acquire the property should Offer to Sell the property be
received from any party or upon death of all owners of Landlord, but a sale
between the present shareholders of Landlord to one another or among their
respective heirs, will not trigger the right of first refusal, nor shall any
gifts to the heirs of such owner. Both the lease and the Right of First Refusal
shall include the adjoining property, described on Exhibit 3.4
which is presently being used as a parking lot, for no additional
consideration. The Lease shall also contain an Option to Purchase the real
property.

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4.                                      Preclosing
Actions. Before the Closing:

4.1                                Conduct
of Business. Seller Equityholders shall cause Seller to carry on and conduct
the Business only in the ordinary course consistent with past practice, without
any material change in the policies, practices, and methods Seller pursued
before the date of this Agreement. Seller Equityholders will use their best
efforts and cause Seller to use its best efforts to preserve the Business
organization intact; to preserve the relationships with Seller’s customers,
suppliers, and others having business dealings with Seller; and to preserve the
services of Seller’s employees, agents, and representatives. Without limitation
of the foregoing, (a) Seller Equityholders will cause Seller not to undertake
without Buyer’s prior written consent (not to be unreasonably withheld or
delayed) any action that, if taken before the date of this Agreement, would be
required to be disclosed on Schedule 8.12, and (b) Seller Equityholders will
cause Seller not to alter the physical contents or character of any of its
inventories in a way that materially affects the nature of the Business or
results in a material change in the total dollar valuation of the
inventories or otherwise take action or refrain from taking action that would
result in any material change in Seller’s assets or liabilities, in each case
other than in the ordinary course of business consistent with past business
practices.

4.2                                Access
to Buyer. From the date of this Agreement through the Closing, Seller  Equityholders shall cause Seller to permit
Buyer and its representatives to make a full business, financial, accounting,
and legal investigation of Seller. Seller Equityholders shall cause Seller to
take all reasonable steps necessary to cooperate with Buyer in conducting this
investigation. No such investigation by Buyer or its representatives or any
knowledge obtained or that could have been obtained shall affect the
representations and warranties of Seller Equityholders or Buyer’s reliance on
them.

4.3                                UCC
Filings. Buyer will conduct a Uniform Commercial Code search result for the
State of Florida, the County of       and in
South Carolina     , and each State and County in
which Seller Equityholders reside showing no security interests or liens naming
the Company’s as a debtor, other than those acceptable to the Buyer or released
prior to or at the time of the Closings described herein.

4.4                                Accuracy
of Representations and Warranties and Satisfaction of Conditions. Seller
Equityholders will immediately advise Buyer in writing if (a) any of the
representations or warranties of Seller Equityholders is untrue or incorrect in
any material respect, or (b) Seller Equityholders become aware of the
occurrence of any event or state of facts that results in any of the representations
and warranties of Seller Equityholders being untrue or incorrect as if Seller
Equityholders were then making them. Seller Equityholders will not take any
action, or omit to take any action, and shall cause Seller not to take any
action, or omit to take any action, that would result in any of Seller
Equityholders representations and warranties set forth in this Agreement to be
untrue or incorrect as of the Closing Date. Seller Equityholders will use their
best efforts to cause all conditions set forth in Section 5 that are within
their control to be satisfied as promptly as practicable under the
circumstances.

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5.                                      Conditions
Precedent to Buyer’s Obligations.

Buyer’s obligation
to consummate the transactions contemplated by this Agreement is subject to the
fulfillment (or waiver by Buyer) before or at the Closing of each of the
following conditions:

5.1                                Accuracy
of Representations and Warranties. The representations and warranties of Seller
and Seller Equityholder contained in Article 8, and elsewhere in this Agreement
and all related documents shall be true and correct on the date of this
Agreement and at and as of the Closing.

5.2                                Performance
of Covenants. Seller Equityholders shall have in all respects performed and
complied with all covenants, agreements, and conditions that this Agreement
requires, and with all other related documents to be performed or complied with
before or at the Closing. The Seller Equityholders shall have executed and
delivered the Noncompetition Agreements, the Waivers, the Forms W-9 referred to
in Section 8.22(e), and the Certificates of Non-foreign Status referred to in
Section 11.3. To the extent that any buy-sell agreements exist between any
parties relative to the shares being sold in Sellers they have been terminated
any and all Buy-Sell Agreement and executed and delivered an instrument of
termination and release in form and substance acceptable to Buyer.

5.3                                Satisfactory
Due Diligence Review. All due diligence by Buyer has been completed. Seller
Equityholder represents that all materials provided to Buyer during the course
of due diligence are truthful and accurate, to the best of Seller’s knowledge.

5.4                                Permits.
Buyer shall have acquired all licenses and permits that in Buyer’s opinion are
necessary to operate the Business after the Closing. These include, but are not
limited to, a Liquor License issued by the State of Florida and an Adult
Entertainment License issued by the City/County/State of Florida. There shall
be no material change in the ability of the Buyer to conduct business in the
manner in which it is currently being operated.

5.5                                No
Casualty. Before the Closing Date, Seller shall not have incurred, or be
threatened with, a material liability or casualty that would materially impair
the value of its assets or the Business.

5.6                                Opinion
of Counsel. Buyer shall have received the favorable opinion of counsel to
Seller Equityholders dated the Closing Date and in form and substance
satisfactory to Buyer’s counsel that the Seller is a corporation in good
standing, and that Seller and Seller Equityholders are lawfully entitled to
sell the stock in the Companies, that all disclosure required hereunder have
been made, and that upon execution of this Closing of this Agreement, the Buyer
will be the sole and absolute owner of all assets and stock in the Sellers.

5.7                                Equity
Interest Certificates. Seller Equityholders shall have delivered to Buyer
certificates representing all of the Purchased Equity Interests registered in
the name of the Seller Equityholders (without any restrictive legend or
together with such instruments and items that shall permit, in the reasonable
opinion of Buyer’s counsel, the sale and transfer of such equity interests free
of any such legend). The certificates shall be endorsed in blank or with
accompanying signed assignments. Seller Equityholders shall 

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also deliver to Buyer such other instruments or documents that shall,
in the reasonable opinion of the Buyer’s counsel, be reasonably required to
vest good title in Buyer to the Purchased Equity Interests free from all
Encumbrances.

5.8                                Certificates
Regarding Conditions Precedent. The Seller Equityholders shall have delivered
to Buyer certificates of the Seller 
Equityholders certifying that as of the Closing Date all of the
conditions set forth in Sections 5.1, 5.2, 5.5, 5.7, 5.10, and 5.12 have been
complied with, satisfied or waived by Buyer.

5.9                                No
Litigation. No proceeding or investigation shall have been instituted before or
by any court or governmental body to restrain or prevent the carrying out of
the transactions contemplated by this Agreement or that might affect Buyer’s
right to own the Purchased Equity Interests or for Buyer to own, operate, and
control the Business after the Closing Date.

5.10                          Lien
Search. Buyer shall have obtained a UCC lien searches in form and content
satisfactory to Buyer.

5.11                           Consents.
Seller Equityholders shall have obtained in writing all consents necessary or
desirable to consummate or facilitate consummation of this Agreement and any
related transactions. The consents shall be delivered to Buyer before Closing
and shall be reasonably acceptable to Buyer in form and substance.

5.12                          Environmental
Investigation. Buyer waives the right to perform a environmental investigation
of the property at this time, however reserve the right to conduct such a
investigation at the time that it exercises its first right of offer to acquire
the property. Nothing shall affect the Seller’s 
or  Seller Equityholders’
representations and warranties in Section 8.25 or Buyer’s reliance on them or
Seller Equityholders’s indemnification obligations under Section 10
hereinafter.

5.13                          Waivers.
Seller Equityholders shall have delivered to Buyer a statement from each of the
Seller Equityholders and each of Seller’s officers and directors, in form and
substance acceptable to Buyer, that each either waives or has no claim, as
appropriate, against the Sellers for unpaid dividends, bonuses, profit sharing,
rights, or other claims of any kind, nature, or description except salaries and
fringe benefits normally accrued and described in the statement or otherwise
contemplated under this Agreement.

5.14                          Resignations.
Each director and officer of Sellers shall have delivered to Buyer resignations
from their positions with Sellers.

5.15                          Other
Documents and Instruments. Buyer shall have received any other documents and
instruments from Seller as it may reasonably request.

5.16                          Approvals
by Buyer’s Counsel. Buyer’s counsel shall have reasonably approved all legal
matters and the form and substance of all documents Buyer, Seller, or Seller
Equityholder are  required to deliver at the Closing.

5.17                          Payment
of all Liabilities. All known liabilities (including all vendors, personal and
real property taxes, and utilities) of the Sellers incurred prior to the
Closing date of the respective purchase shall have been paid in full by the
respective company or the 

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corporate funds necessary to pay such expenses shall be escrowed or
allocated from the Corporate Operating Accounts until such time as satisfactory
evidence of the payment of the expense has been received by the Buyer.

6.                                      Conditions
Precedent to Seller Equityholders Obligations.

Seller and Seller Equityholders
obligations to consummate the transactions contemplated by this Agreement are
subject to the fulfillment (or waiver by Seller Equityholders) of each
of the following conditions before or at the Closing:

6.1                                Accuracy
of Representations and Warranties. Buyer’s representations and warranties
contained in this Agreement and all related documents shall be true and correct
on the date of this Agreement and at and as of the Closing.

6.2                                Performance
of Covenants. Buyer shall have in all respects performed and complied with
all covenants, agreements, and conditions required by this Agreement and all
related documents that must be performed or complied with before or at the
Closing.

7.                                      Closing
Matters.

7.1                                Closing.
The closing of the transactions contemplated in this Agreement  (the “Closing”) shall take place at the
offices of                        within
14 days of the date that all license and permits are approved for transferor               
at 10:00 a.m. on                 or
at another place and/or on another date that the parties agree on (the “Closing
Date”).

All transactions and all documents executed and delivered at the time
of Closing shall be deemed to have occurred simultaneously, and no transaction
shall be deemed to have occurred and no document shall be deemed to have been
executed or delivered unless all transactions have occurred and all documents
have been executed and delivered. For the purposes of this Agreement, the term Business Day means a day other than a
Saturday or Sunday on which banks are generally open for business in Florida

7.2                                Certain
Closing Expenses. Seller Equityholders shall be liable for and shall pay all
federal, state, and local sales, use, excise, and documentary stamp taxes and
all other similar taxes, duties, or other like charges properly payable on and
in connection with the conveyance and transfer of the Purchased Equityholder Interests
to Buyer.

7.3                                Further
Assurances. Seller Equityholders shall cooperate with and assist Buyer and take
all other reasonable actions to ensure a smooth transition of the Business to
Buyer. From time to time after the Closing Date, Seller Equityholders shall, at
the request-and expense of Buyer, execute and deliver additional conveyances,
transfers, documents, instruments, assignments, applications, certifications,
papers, and other assurances that Buyer requests as required to effectively
carry out this Agreement’s intent in good faith and to transfer the Purchased
Equity Interests to Buyer.

7.4                                Title
and Liens. At the Closing, title to the assets owned by the Sellers shall be
free, clear, and unencumbered, as specifically set forth in this Agreement. To
this end at the closing, the Selling Equityholder shall causeto be delivered
all of the following:

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a.                                       Lien
Search. Buyer at its expense shall have obtaind a tax lien search and financing
statement search, both certified to a date at or near the Closing Date and each
showing that no tax, mechanics, or other liens have been filed against the
property.-Seller shall reasonably cooperate with Buyer to conduct such a
search.

b.                                      Application
for Conditional Tax Clearance. Within a reasonable period following the
Closing, Seller shall provide Buyer a letter from the appropriate Florida
authorities concerning liability of Sellers for sales or withholding taxes,
both as of a date near the Closing Date and each showing that Sellers are not
in arrears on payments relating to the above referenced taxes.

7.5                                 Income
Taxes.  Buyer and Seller agree that Buyer
shall be responsible for all taxes based on Seller’s taxable income, to the
extent accrued on and after the Closing Date and that Seller shall be
responsible for those amounts before the Closing Date.  In order to effect this provision, the
parties agree that Seller shall close its books and determine the net taxable
income and federal and state taxes for the pro rated year ending on the day
before the Closing Date and shall include the tax due as a closing adjustment
under Article 2.2 and Exhibit 2.4.

8.                                       Seller
and Seller Equityholder’s Representations and Warranties.

The Seller
Equityholder, represents and warrants to Buyer as follows as of the date of
this Agreement and as of the Closing Date, and acknowledges and confirms, that
Buyer is relying on these representations and warranties in entering into this
Agreement:

8.1                                Organization
and Standing. Sellers are corporations organized, validly existing, and in good
standing under the laws of the state of incorporation, and have all requisite
corporate power and authority to own its property and conduct its business as
it is now being conducted. The nature of the business and the character of the
properties Seller owns or leases do not make licensing or qualification of
Seller as a foreign entity necessary under the laws of any other jurisdiction.
Except for the use of the name “Platinum Plus” or otherwise as set forth in
Schedule 8.1 (need Schedule) Seller has not in the last five years used or
assumed any other name in connection with the conduct of its business.

8.2                                Articles
and Bylaws. Schedule 8.2 contains true and complete copies of Sellers Articles
of Incorporation and Bylaws.

8.3                                Capitalization.
Kenja’s authorized capital stock consists solely of            shares
of Seller common stock, of which          shares
are issued and outstanding.  KenjaII’s
authorized capital stock consists solely of 
          shares of
Seller common stock, of which          shares
are issued and outstanding-respectively. All of the issued and outstanding
Seller Equity Interests are owned of record and beneficially by the Seller
and/or Seller Equityholders as the case may be. A true and complete list of the
certificate numbers and number of all shares held by each of the Seller
Equityholders is set forth in Schedule 8.3. There are no options, calls,
subscriptions, warrants, agreements, or other 

 9
 

securities or rights outstanding for the purchase or other acquisition
of Seller’s Equity Interests; that are convertible into, exercisable for, or
relate to Seller’s Equity Interests; or that have any voting rights.  Neither Corporation has any outstanding
contractual obligations to repurchase, redeem, or otherwise acquire any
outstanding shares of Seller’s Equity Interests. Seller is not a party to any
Buy-Sell Agreement that would affect in any manner any of the transactions
contemplated in this Agreement.

8.4                                Seller
Equityholder Interests. Seller Equityholders is the lawful owner of the
Purchased Equity Interests, free from all pledges, liens, security interests,
encumbrances, mortgages, adverse claims, charges, options, equity interests,
proxies, voting agreements or trusts, leases, tenancies, easements, or other
interests (“Encumbrances”). All shares of the Purchased Equity Interests have
been authorized and validly issued and are fully paid, non-assessable, and free
of preemptive rights. On delivery to Buyer at the Closing of the Purchased
Equity Interests, endorsed for transfer, Buyer will be the absolute owner of
the Purchased Equity Interests, free from all Encumbrances arising through
either Seller.

8.5                                Authorization.
Each of the Seller Equityholders has the requisite legal capacity to execute,
deliver, and perform this Agreement and the Noncompetition Agreements, Lease,
and the Waivers (the “Related Agreements”) to which they are a party and to
consummate any related transactions. Each of the Seller  Equityholders has duly executed and delivered
this Agreement. This Agreement is, and the Related Agreements when executed and
delivered by the parties to them will be, legal, valid, and binding obligations
of each Seller Equityholder that is a party to them, enforceable against each
of them in accordance with their respective terms, except as such enforcement
may be limited by bankruptcy, insolvency, moratorium, or similar laws relating
to the enforcement of creditors’ rights and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law
or in equity).

8.6                                 Existing
Agreements and Governmental Approvals.

(a)                                  Except
as set forth in Schedule 8.6, the execution, delivery, and performance of this
Agreement and the Related Agreements by Seller  and the consummation of
the transactions contemplated by them (i)
do not and will not violate any provisions of law applicable to Sellers or any
of the Seller Equityholders;(ii)
do not and will not conflict with, result in the breach or termination of any
provision of, or constitute a default under (in each case whether with or
without the giving of notice or the lapse of time, or both) Seller’s respective
Articles of Incorporation or Bylaws or any indenture, mortgage, lease, deed of
trust; other instrument, contract, or agreement; or any order, judgment,
arbitration award, or decree to which Seller or any of the Seller Equityholder
is a party or by which it or any of its  respective assets and properties are bound;
and (iii) do not and will not
result in the creation of any Encumbrance on any of the properties, assets, or
business of Seller, or any of the Seller Equityholders.

(b)                                 Except
as set forth in Schedule 8.6, no approval, authority, or consent of or filing
by Seller, any of the Seller Equityholders with, or notification to, any
federal, state, or local court, authority, or governmental or regulatory body
or agency, or any other corporation, limited liability company, partnership,
individual, or other entity is necessary 

 10
 

to authorize the execution and delivery of this Agreement or any of the
Related Agreements or the consummation of the transactions contemplated by this
Agreement or any of the Related Agreements. As of the date of closing, the
Seller owns all state and city Licenses and Permits necessary to operate an
adult entertainment facility, with liquor and a adult entertainment license
from the City/County/State of Florida necessary to permit operation of the
Business in the manner it is currently operating.

8.7                                No
Subsidiaries. Seller and Selling Equityholder do not have any subsidiaries or
directly or indirectly own any interest or have any investment in any other
corporation, partnership, or other entity related to Sellers.

8.8                                No
Insolvency. No insolvency proceeding of any character, including, without
limitation, bankruptcy, receivership, reorganization, composition, or
arrangement with creditors, voluntary or involuntary, affecting Seller or any
of its assets or properties is pending or, to the Best Knowledge of Seller
Equityholder, threatened. Neither Seller nor any of the Seller Equityholder
have taken any action in contemplation of, or that would constitute the basis
for, the institution of any such insolvency proceedings. For the purposes of
this Agreement, the phrase Best Knowledge of
Seller Equityholders means the knowledge that any of the Seller Equityholder
has or would have after due inquiry into the matter in question.

8.9                                Permits
and Licenses. Sellers have all necessary permits, certificates, licenses,
approvals, consents, and other authorizations required to carry on and conduct
the Business and to own, lease, use, and operate its assets at the place and in
the manner in which the Business is presently conducted. A complete list of all
Seller’s permits, certificates, licenses, approvals, consents, and other
authorizations is included in Schedule 8.9.

8.10                          Financial
Statements. [To be reviewed by Seller’s accountants] Seller and Seller
Equityholder  has delivered to Buyer the
financial statements for the Corporations listed in Schedule 8.10, and Seller
Equityholders shall deliver, before the Closing, copies of all financial
statements Seller has prepared for each full month before the Closing after the
periods reflected in such listed financial statements-(the “Financial
Statements”). The Financial Statements fairly and accurately present the financial
position of Sellers as of the dates indicated and the results of its operations
as of the dates indicated and for the periods covered thereby, and are and will
be true and correct in all material respects, subject to year-end adjustments.
All inventories reflected in the Financial Statements have been and will be
valued at the lower of cost or market value, with cost determined using the
last-in, first-out method; adequate provision has been and will be timely made
in the Financial Statements for doubtful accounts or other receivables; sales
are stated in the Financial Statements net of discounts, returns, and
allowances; all Taxes (as defined in Section 8.22) due or paid are and will be
timely reflected in the Financial Statements; and all Taxes not yet due and
payable are and will be fully accrued or otherwise provided for in the
Financial Statements. Any items of income or expense that are unusual or of a
nonrecurring nature during any such period or at any such balance sheet date
are and will be separately disclosed in the Financial Statements. Except as
otherwise disclosed on Schedule 8.10, Seller’s books, records, and work papers
are complete and correct and accurately reflect, and will accurately reflect,
in all material respects  the basis for the 

 11
 

financial condition and the results of Seller’s operations that are set
forth in the Financial Statements.

8.11                          No
Undisclosed Liabilities. Except as otherwise disclosed on Schedule 8.11 or in
the Financial Statements, (none of which have or will have arisen as a result
of negligence, gross negligence, strict liability, tort, toxic tort,
environmental liabilities, violations of law, or default under any Contract or
Commitment attributable to Seller or for which Seller shall be responsible),
Sellers do  not have any debts,
liabilities, or obligations or any kind or character whatsoever, whether
accrued, absolute, contingent, matured, not matured, known, unknown, or
otherwise,  and whether or not of a
character as would be required to be reflected in any balance sheet of Seller
prepared in accordance with GAAP.

8.12                          Conduct
of Business. Except as otherwise disclosed on attached Schedule 8.12, since the
date of execution of the Letter Agreement dated June 7, 2007 (“the Letter
Agreement),-Sellers have not:

(a)                                  Issued
any capital stock  or other
securities convertible into or exchangeable or exercisable for capital stock   or
having voting rights; declared or paid any dividend; made any other payment
from capital or surplus or other distribution of any nature; or directly or
indirectly redeemed, purchased, or otherwise acquired, recapitalized, or
reclassified any of its capital stock.

(b)                                 Merged
with any other entity.

(c)                                  Altered
or amended its Articles of Incorporation or Bylaws.

(d)                                 Entered
into, materially amended, or terminated any contract, license, lease,
commitment or permit, except in the ordinary course of business consistent with
past practices.

(e)                                  Experienced
any labor disturbance.

(f)                                    Incurred
or become subject to any obligation or liability (absolute, accrued,
contingent, or otherwise), matured, not matured, except (i) in the ordinary course of business
consistent with past practices and (ii)
in connection with the performance of this Agreement.

(g)                                 Discharged
or satisfied any Encumbrance or paid or satisfied any obligation or liability
(absolute, accrued, contingent, or otherwise) other than (i) liabilities shown or reflected in the
respectiveSeller’s balance sheet dated                  
or (ii) liabilities incurred
since the date of the balance sheet, in each such case only in the ordinary
course of business consistent with past practices and in accordance with the
express terms of such obligation or liability.

(h)                                 Mortgaged,
pledged, or subjected to any Encumbrance any of its assets.

 12
 

(i)                                     Sold,
transferred, or agreed to sell or transfer any asset or business; cancelled or
agreed to cancel any debt or claim; or waived any right, except in the ordinary
course of business consistent with past practices.

(j)                                     Disposed
of or permitted to lapse any Intellectual Property.

(k)                                  Granted
any increase in employee rates of pay or any increases in salary payable or to
become payable to any officer, employee, consultant, or agent, or by means of
any bonus or pension plan, contract, or other commitment increased the compensation
of any officer, director, employee, consultant, or agent, or hired any new
officer, employee, consultant, or agent, except in the ordinary course of
business.

(l)                                  Made or authorized
any capital expenditures for additions to plant or equipment accounts in excess
of $10,000.00.

(m)                               Entered
into any transaction (including, without limitation, any contract or other
arrangement providing for employment, furnishing of services, rental of real or
personal property, or otherwise requiring payments) with any shareholder,
officer, or director of Sellers; any member of their immediate families; or any
of their affiliates.

(n)                                 Experienced
any material damage, destruction, or loss (whether or not covered by insurance)
affecting its properties, assets, or Business.

(o)                                 Failed
to regularly maintain and repair its assets in the ordinary course of business
consistent with past practices.

(p)                                 Instituted
or settled any litigation, action, or proceeding before any court or
governmental body relating to it or its property.

(q)                                 Made
any change in any method of accounting or any accounting practice or suffered
any deterioration in accounting controls.

(r)                                    Varied,
cancelled, or allowed to expire any insurance coverage, except as agreed by the
parties in writing.

(s)                                  Made
any payment or disbursement of moneys or property or declared or paid any
dividend or other distribution to or on behalf of any officer, director, or
shareholder of Seller or any member of the immediate families of any of the
Seller Equityholder, or any affiliate, other than for payment of compensation
or reimbursement of expenses in accordance with past practices.

(t)                                    Entered
into any other transaction other than in the ordinary course of business
consistent with past practices.

(u)                                 Agreed
or committed to do any of the foregoing.

8.13                           No
Adverse Changes. Except as otherwise disclosed in Schedule 8.13, since the date
of execution of the Letter Agreement, there has not been any occurrence,
condition, or development that has adversely affected, or is likely to adversely

 13
 

affect, Sellers, or its prospects, condition (financial or otherwise),
operations, assets, or the Business.

8.14                           Employees.
That except as disclosed on Schedule 8.14 (Schedule),
there is not now, nor has there been at any time during the past five years,
any strike, lockout, grievance  filing, other similar labor dispute
against Seller or that in any manner affects Seller is and has been, to the
best of its knowledge, in compliance with all rules regulating employee wages
and hours. Buyer acknowledges that Kenkev has not treated the entertainers as
employees and that such treatement is of an uncertain nature.   This acknowledgement pertains to the
entertainer/employee issue every where it is mentioned in this Agreement.  On or before the Closing Date, Sellers shall
have paid all its accrued obligations relating to employees (whether arising by
operation of law, by contract, or by past service) or payments to trusts or
other funds, to any governmental agency, or to any individual employee (or his or
her legal representatives) with respect to unemployment compensation benefits,
profit sharing, retirement benefits, or Social Security benefits. Sellers has,
to the best of its knowledge, complied with all requirements of the U.S.
Immigration and Nationality Act, as amended, including without limitation all
employment verification and antidiscrimination provisions applicable to current
and former employees of Seller.

8.15                           Employee
Benefit Plans.[Subject to review by Seller’s accountants.]

(a)                                  Schedule
8.15 contains a true and complete list of all plans, contracts, programs, and
arrangements (including, but not limited to, collective bargaining agreements,
pensions, bonuses, deferred compensation, retirement, severance,
hospitalization, insurance, salary continuation, and other benefit plans,
programs, or arrangements) maintained currently or at any time within the
previous five years by Seller or under which Seller has had any obligations
with respect to an employee, director, or shareholder of Seller (the “Plans”).

(b)                                 True,
correct, and complete copies of the following documents, with respect to each
of the Plans, if applicable, have been made available or delivered to the
Buyer: (i) any plans and related
trust documents, and amendments thereto; (ii)
the two most recent Forms 5500; (iii)
the last IRS determination letter, if applicable; (iv) the most recent actuarial report; (v) summary plan descriptions; (vi) the two most recent Forms PBGC-1, and
(vii) with respect to any Plan
that is maintained pursuant to a collective bargaining agreement, all
collective bargaining agreements pursuant to which contributions are being made
or obligations are owed to such Plan, and all contracts with third-party
administrators, actuaries, investment managers, consultants, and other
independent contractors that relate to any such Plan.

(c)                                  Except
as specifically set forth in Schedule 8.15, (i)
each Plan that is an employee pension
benefit plan, (if any) as defined in Section 3(2) of 

 14
 

ERISA, 29 USC 1002(2), and its related trust (“Pension
Plan and Trust”) now meet, and since their inception have met, the requirements
for qualification under Sections 401(a) and, if applicable, 401(k) of the
Internal Revenue Code of 1986, as amended (the “Code”), and are now, and since
their inception have been, exempt from taxation under IRC 501(a), and the
Internal Revenue Service (IRS) has issued a current favorable determination
letter with respect to the qualified status of each Pension Plan and Trust and
has not taken any action to revoke such letter; (ii) Seller has performed all obligations required to be
performed by it under the Plans (including, but not limited to, the making of
all contributions) and is not in default under and has no knowledge of any
default by any other party to the Plans; (iii)
each Plan is in material compliance as to form and operation, in accordance
with all applicable provisions of the Code and ERISA and any other applicable
federal and state laws (including rules and regulations thereunder), and each
Plan has been operated in compliance with such laws and written plan documents;
(iv) neitherSeller nor, to the
Best Knowledge of Seller Equityholder, any other disqualified person or party
in interest, within the meaning of IRC 4975 or Section 3(14) of
ERISA, 29 USC 1002(14), has engaged in any prohibited
transaction, as this term is defined in IRC 4975 or Section 406 of
ERISA, 29 USC 1106, that could, following the Closing Date, subject any Plan
(or its related trust), Buyer, Seller, or any officer, director  or employee of Buyer or Seller, to any tax
or penalty imposed under the Code or ERISA; (v)
there are no actions or claims pending (other than routine claims for benefits)
or, to the Best Knowledge of Selling Parties, threatened against any Plan or
against the assets of any Plan; (vi)
no Plan is subject to Part 3 of Title I of ERISA, Section 412 of the Code, or
Title IV of ERISA; (vii) each
Plan’s plan official, as defined
in Section 412 of ERISA, 29 USC 1112, is bonded to the extent required by
Section 412; (viii) no proceeding
has been initiated to terminate any Plan, and any such termination will not
subject Seller or Buyer to liability to any person; (ix) no Plan is a multiemployer
plan, as defined in Section 3(37) of ERISA, 29 USC 1002(37); (     x)
no retiree benefits are payable under any Plan that is an employee welfare benefit plan (“Welfare
Plan”), as this term is defined in Section 3(1) of ERISA, 29 USC 1002(1); and (xi) each Welfare Plan that is a group health plan within the meaning of
IRC 5000 complies with and in each case has complied with the applicable
requirements of Sections 601 through 608 of ERISA, 29 USC 1161–1168, and IRC
4980B.

(d)                                 Seller
has not incurred or will not incur with respect to any Plan that is an employee benefit plan, as defined in Section
(3)(3) of ERISA, 29 USC 1002(3), any actual or contingent liability, including,
but not limited to, liability under Section 601 through 608 of ERISA, 29 USC
1161–1168, and IRC 4980B, any withdrawal liability from any multiemployer
pension plan, any termination or withdrawal liability under Sections 4062,
4063, or 

 15
 

4064 of ERISA, 29 USC 1362, 1363, or 1364, any accumulated funding deficiency as such
term is defined in Section 302 of ERISA, 29 USC 1082, and IRC 412 (whether or
not waived), any requirement to make any contributions to any multiemployer
plan, solely as a result of Seller being a member of a controlled group of corporations, or
treated as a single employer with any other entity within the meaning of IRC
414(b), 414(c), 414(m), or 414(n) arising from or incurred with respect to any
period before the Closing Date.

8.16                           Certain
Employees. Each of the following is included in the list of agreements in
Schedule 8.15: all collective bargaining agreements, employment and consulting
agreements, executive compensation plans, bonus plans, deferred compensation
plans, pension or retirement plans, participation plans, tip-pooling
arrangements,  profit-sharing plans, equity interest purchase and equity
interest option plans, hospitalization insurance, and other plans and
arrangements, providing for compensation and/or benefits to Seller’s
employees, directors, or shareholders.

(a)                                  Schedule
8.16 contains a true and complete list of the following: the names, positions,
and compensation of the present directors, officers, employees, and current
independent contractors of the Seller. Except as listed in Schedule 8.16, all
Seller’s employees are employees-at-will, may be terminated at any time in
accordance with the written policies (copies of which are contained in Schedule
8.16) of Seller for any lawful reason or for no reason, and are not entitled to
employment by virtue of any oral or written contract, employer policy, or
otherwise.

(b)                                 No
retired employees are receiving or are entitled to receive any payments or
health or other benefits from Sellers.

(c)                                  Buyer
agrees to continue employment of all employees post closing as at-will
employees. Seller Equityholder agrees that he will not solicit/hire any
employee provided that Buyer maintains its current compensation program, and
provided Buyer does so, then Seller Equityholder may not solicit or hire any
employee to work for him or any related entity for 6 months from the Closing
Date; furthermore, for the 6 months after such initial 6-month period, Seller
Equityholder agrees that he will consult with Buyer before soliciting/hiring
any such employee.  If Buyer changes the
Compensation Program and such change results in the Employee making
substantially less income, then the non-hiring provision shall not apply. The
same provisions shall apply to entertainers, except that if an entertainer
shows up unsolicited to another location owned or affiliated with Seller
Equityholder, they will be permitted to work. It is the general intent of the
Buyer and Seller that should any manager’s net income be reduced by 10% or more
on the average, during any forty-five (45) day period, that the Seller would
have the option of hiring such manager.

 16
 

8.17                          Contracts
and Commitments.

(a)                                  Schedule
8.17 contains a true and complete list of all of all Sellers written, and a
description of all of Sellers unwritten, contracts, obligations, agreements,
plans, arrangements, and commitments of any kind or nature (the “Contracts and
Commitments”), except for

(i)                                  those contracts that
are described in another Schedule;

(ii)                              each purchase contract
with a customer made in the ordinary course of business consistent with past
practices under which Sellers are obligated to deliver less than $500.00  in goods and/or services in each transaction
or series of related transactions; and

(iii)                          each purchase commitment made
in the ordinary course of business at prevailing prices, consistent with past
practices, that is not in excess of $1000.00 in each transaction or series of
related transactions.

(b)                                 All
Contracts and Commitments are in full force and effect without amendment
(unless the amendments are clearly noted), and Sellers are and shall be
entitled to all benefits from all Contracts and Commitments.

(c)                                  True
and complete copies of all Contracts and Commitments have been delivered to
Buyer. All Contracts and Commitments are the result of bona fide, arm’s-length
transactions and are legal, valid, and binding obligations of the parties to
them enforceable in accordance with their respective terms, subject to laws
generally governing bankruptcy and the enforcement of creditors’ rights.

(d)                                 Except
as set forth in attached Schedule 8.17, no default or alleged default exists on
the part of Sellers nor, to the Best Knowledge of Seller Equityholders, on the
part of any other person or entity, under any Contract or Commitment.

8.18                          Title to
Assets. Except as set forth in attached Schedule 8.18, Sellers are the sole and
absolute owner of all the assets used in and/or connected with the operation of
the Business and/or purported to be owned by Sellers, and has good and
marketable title to all such assets, free from all Encumbrances (or, in the
case of its interest as lessee, a good leasehold interest, and in the case of
licenses, is the license holder). Schedule 8.18 lists or describes all property
used in the conduct of the Business and/or situated on the Premises that is
owned by or an interest in which is claimed by any other person or entity
(whether a customer, supplier, or other person or entity) for which Seller is
responsible, together with copies of all related agreements. All such property
is situated on the Premises and is in such condition that, upon return to its
owner, Seller will not be liable in any amount to the owner.

8.19                          Condition
of Assets. Each item situated at the Premises and listed on the respective
balance sheet is being sold as is, where is, with all defects. Between the date
of this Agreement and Closing, Seller agrees to reasonably maintain all
equipment and assets as may be need to reasonably operate the business.
Furthermore, Seller agrees not to commit waste.

 17

8.20                        Receivables.
Sellers  are entitled to all accounts
receivable relating to activity prior to the Closing Date and Buyer shall
assist in collecting any such amounts and Buyer shall promptly forward to
Seller any such amounts that Buyer receives on or after the Closing Date, which
amounts shall be applied to the closing adjustments and any net amount
distributed to Equityholder.

8.21                        Sufficiency
of Assets. The assets reflected in the Financial Statements, constitute and
will constitute all of the property and assets, real, personal, and mixed,
tangible and intangible (including, without limitation, contract rights), that
are used or useful in, or are necessary for the conduct of, the Business in
accordance with present practices, other than (i) those permits and licenses
that Buyer will be obtaining as a condition to its obligation to close, (ii)
assets used or consumed in the ordinary course of business prior to the Closing
date,  and (iii) the Excluded Assets that
are referred to above and that Seller shall be entitled to retain (including
cash and receivables), and such assets are sufficient for Buyer to continue to
operate the Business in the ordinary course of business after the Closing Date.
By closing this agreement, the Buyer shall be deemed to be satisfied with the
assets of the Business.

8.22                        Taxes. [To
be reviewed by Seller’s accountants.]

(a)                                  For
the purposes of this Agreement, Tax
or Taxes shall mean all federal,
state, county, local, foreign, and other taxes (including, without limitation,
income taxes; premium taxes; single-business taxes; excise taxes; sales taxes;
use taxes; value-added taxes; gross receipts taxes; franchise taxes; ad valorem
taxes; real estate taxes; severance taxes; capital levy taxes; transfer taxes;
stamp taxes; employment, unemployment, and payroll-related taxes; withholding
taxes; and governmental charges and assessments), and include interest,
additions to tax, and any penalties. For purposes of this Agreement, (i) a Tax is “imposed” upon a person if
such person is responsible under applicable law for the payment, withholding,
or collection of such Tax; (ii) a
person is “subject to” a Tax if such Tax is imposed on either (A) such person
or (B) a third party based on the activities or assets of such person; and (iii) a Tax is “of” a person if either
clause (i) or (ii) of this Section 8.22(a) pertains to
such Tax and such person.

(b)                                 For
purposes of this Agreement, Tax Return
shall mean any return (including any information return), report, statement,
schedule, notice, form, or other document or information filed with or
submitted to, or required to be filed with or submitted to, any governmental
authority in connection with the determination, assessment, collection, or
payment of any Tax.

(c)                                  Except
as otherwise disclosed on Schedule 8.22, Sellers has filed on a timely basis
(within any applicable extension periods) all Tax Returns it is required to
file under any federal, state, local, or foreign law and has paid or
established an adequate reserve with respect to all Taxes imposed on 

 18
 

said corporation for the periods covered by such
returns. No claim has ever been made by a governmental authority in a
jurisdiction where Sellers  does not file
Tax Returns that it is or may be subject to Taxes imposed by that jurisdiction.
No agreements have been made by or on behalf of Seller for any waiver or for
the extension of any statute of limitations governing the time of assessment or
collection of any Taxes. Seller and its officers have received no notice of any
pending or threatened audit by the IRS or any state, local, or foreign agency
related to Seller’s Tax Returns or Tax liability for any period, and no claim
for assessment or collection of Taxes has been asserted against Seller. There
are no federal, state, or local Tax Encumbrances outstanding against any of
Seller’s assets. There are no outstanding powers of attorney issued by Seller
with respect to any matter relating to Taxes.

(d)                                 Seller
has withheld and paid all Taxes required to have been withheld and paid in
connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other person or entity. Seller has, in accordance
with Treasury Regulation Section 1.6662-3(c), “adequately disclosed” on its Tax
Returns all positions taken therein that could give rise to a substantial understatement of federal
income Tax within the meaning of IRC 6662, or, as applicable, such disclosure
would meet the conditions of any provision analogous or similar to Treasury
Regulation Section 1.6662-3(c) contained in any state, local, or foreign tax
law to which it is asserted that is or could be subject. There are no Tax
rulings or requests for rulings relating to Seller that could affect Seller’s
Tax liability for any period (or portion of a period) after the Closing Date.

(e)                                  Seller
and Seller Equityholder will as of the Closing Date provide to Buyer their
correct taxpayer identification numbers on executed IRS Forms W-9. Buyer is not
required to withhold any Taxes on any payments under this Agreement including,
without limitation, any withholding pursuant to IRC 3406 or Chapter 3 of the
Code. Seller and each Seller 
Equityholder is a United States
person (as defined in IRC 7701(a)(30)).

(f)                                    If
Seller is an S corporation, Seller is now and has been at all times since      N.A     
a validly electing S corporation within the meaning of IRC 1361 and 1362 and
will be a validly electing S corporation up to and including the Closing Date.

(g)                                 No
property of Seller is tax-exempt use
property within the meaning of IRC 168(h) or tax-exempt bond financed property within
the meaning of IRC 168(g). Seller has not made, nor is obligated to make, any
payment nor is a party to any agreement that could obligate it to make any
payments that, under IRC 280G or IRC 162(m), were or will not be deductible for
Tax purposes.

 19
 

(h)                                 Seller
is not a United States real property holding
corporation within the meaning of IRC 897. If Seller is a foreign
(non-U.S.) Seller has not made the election provided for in IRC 897(i).

(i)                                     Seller
is not subject to any Tax sharing or similar agreement or arrangement (whether
or not written) pursuant to which it will have any obligation to make any
payments after the Closing Date.

(j)                                     Seller
will not be required to include any item of income or gain in, or to exclude
any item of deduction or loss from, taxable income for any taxable period (or
portion thereof) ending after the Closing Date as a result of any (i) change in method of accounting for a
taxable period ending on or before the Closing Date under IRC 481(c), or any
corresponding or similar provision of state, local, or foreign Tax law; (ii)  closing
agreement as described in IRC 7121, or any corresponding or similar
provision of state, local, or foreign Tax law, executed on or before the
Closing Date; or (iii)
installment sale made on or before the Closing Date.

(k)                               Any adjustment of Tax of
Seller made by the IRS in any examination that is required to be reported to
the appropriate state, local, or foreign taxing authorities has been reported,
and any additional Taxes due with respect thereto have been paid, to the best
knowledge of Seller.

(l)                                     (i)
Seller has not, within the last six years, been a member of an affiliated group (as defined in IRC
1504(a)) filing a consolidated United States federal income Tax Return, or
similar Tax Return under the provisions of state, local or foreign law; and
(ii) no claim has been asserted against Seller based upon liability for the
Taxes of another person (A) under Treasury Regulation Section 1.1502-6 or any
corresponding or similar provisions of state, local, or foreign law, (B) as a
transferee or successor, or (C) by contract or otherwise. Seller does not have
a subsidiary investment that could reasonably be expected to be subject to the
loss disallowance rules of Temporary Treasury Regulation Section 1.337(d)-2T.

8.23                        Litigation.
There are no claims, disputes, actions, suits, proceedings, or investigations
pending or, to the Best Knowledge of the Seller Equityholders, threatened
against or affecting Seller, its business, or its assets, except as disclosed
on Schedule 8.23.

8.24                        INTENTIONALLY
DELETED.

 

8.25                        INTENTIONALLY
DELETED

 

8.26                        Compliance
with Laws. At all times before the Closing Date, Sellers, to the best of their
knowledge,  have complied with all laws,
orders, regulations, rules, decrees, and ordinances affecting to any extent or
in any manner any aspects of the Business or its assets.

 20
 

8.27                        Suppliers
and Customers.

(a)                                  A
complete and accurate list of all suppliers or vendors of products or services
to Seller in connection with the Business (other than legal or accounting
services) aggregating more than $10,000.00 (at cost) annually during Seller’s
last fiscal year, and the address of each supplier or vendor and the amount
sold to Seller during that period, is set forth in Schedule 8.27. The names of
any suppliers of goods or services with respect to which practical alternative
sources of supply are not available on comparable terms and conditions are
separately listed in Schedule 8.27.

(b)                                 Seller
does not keep records of its customers.

(c)                                  Seller
Equityholder has no information that might reasonably indicate that any
supplier of Seller intends to cease purchasing from, selling to, or dealing
with Seller. No information has been brought to the attention of  any Seller Equityholder that might reasonably
lead any of him to believe that any supplier intends to alter, in any material
respect, the amount of its sales or the extent of its dealings with Seller, or
would alter in any material respect its sales to, or dealings with Seller, in
the event the transactions contemplated by this Agreement are consummated.

8.28                        No
Brokers. Neither Seller nor Seller Equityholder have engaged, or are
responsible for any payment to, any finder, broker, or consultant in connection
with the transactions contemplated by this Agreement,  except for Frank
Bain, who will be compensated by Buyer, pursuant to an agreement exclusive
between Buyer and Mr. Bain that is acceptable to Mr. Bain, as verified by a
letter from Mr. Bain.

8.29                        Insider Transactions.Seller
has furnished Buyer a complete and accurate list and a brief description of all
contracts or other transactions involving Seller in which any officer,
director, employee, or shareholder of Seller; any member of their immediate
families; or any affiliate has any interest is set forth on Schedule 8.29.

8.30                        Bank
Accounts. The Buyer shall establish a new separate bank account in the name of
Kenja and/or KenjaII However,  Seller
shall  close its bank accounts for Kenja
and KenjaII within 60 days after Closing.

8.31                        Intellectual
Property.  Schedule 8.31 lists or briefly
describes all of Seller’s material Intellectual Property (other than know-how,
trade secrets, and confidential and proprietary processes and technology) that
Seller directly or indirectly owns, licenses, uses, requires for use, or
controls in whole or in part, including rights relating to the playing of music
and video,  and all licenses and other agreements allowing the Seller to
use the intellectual property of third parties. Seller does not own, directly
or indirectly, or use any patents, copyrights, trademarks, or service marks in
the Business, except as disclosed on Schedule 8.31. Except as set forth in
Schedule 8.31, Seller is the sole and exclusive owner of the Intellectual Property,
free and clear of all Encumbrances. The Seller’s Intellectual Property, or its
use by Seller or any activity of Seller in the conduct of the Business, does
not infringe on any other person’s intellectual property, and, to the Best
Knowledge of the Seller Equityholder, no activity of any other person infringes
on any of the Intellectual Property. Seller has been and is now conducting the
Business in a 

 21
 

manner that has not been and is not now in violation of any other
person’s intellectual property, and Seller does not require a license or other
proprietary right to so operate the Business. For the purposes of this
Agreement, Intellectual Property
means all intellectual property and intellectual property rights owned or
licensed by Seller including, but not limited to, all inventions, discoveries,
improvements, designs, prototypes, trade secrets, manufacturing and engineering
drawings, process sheets, specifications, bills of material, patents, patent
applications, registered and unregistered copyrights and copyright rights in
both published and unpublished works, registered and unregistered trademarks,
registered and unregistered trade names, formulae and secret and confidential
processes, know-how, technology, process technology, customer lists, computer
software, data, databases and other industrial property (whether patentable or
unpatentable), all rights to sue for infringement of any of the foregoing, all
renewals or extensions of any of the foregoing, and all goodwill of Seller
relating to any of the foregoing.

8.32                        Insurance.
All insurance policies covering Seller’s property or providing for business
interruption, personal, and other insurance are described in Schedule 8.32
(which specifies the insurer, policy number, type of insurance, and any pending
claims). Such insurance is in amounts Seller deems sufficient with respect to
its assets, properties, business, operations, products, and services as the
same are presently owned or conducted, and all such policies are in full force
and effect and the premiums have been paid. There are no claims, actions,
suits, or proceedings arising out of or based on any of these insurance
policies, and no basis for any such claim, action, suit, or proceeding exists. Seller
is not in default with respect to any provisions contained in any such
insurance policies and has not failed to give any notice or present any claim
under any such insurance policy in due and timely fashion.

8.33                        Materiality.
No statement in this Agreement, in any schedule to this Agreement, or in any
certificate delivered to Buyer pursuant to this Agreement fails or will fail to
contain any material fact necessary to make the statement(s) not misleading.

9.                                    Buyer’s
Representations and Warranties. Both VCG Holding Corporation and Buyer
represents and warrants to Seller Equityholders as of the date of this
Agreement and the Closing Date that:

9.1                              Organization
and Standing. Buyer is a corporation  which
will be formed and organized and validly existing under the laws of the State
of Colorado, and Buyer has all the requisite power and authority to own its
properties and to perform its obligations hereunder.

9.2                              Authorization.
VCG Holding Corporation  has taken, and
Buyer will have taken on or before the Closing,-all necessary action (a) to
approve the execution, delivery, and performance of this Agreement and each of
the Related Agreements and (b) to consummate the transactions contemplated
under these agreements. VCG Holding Corporation 
has duly executed and delivered this Agreement. This Agreement is, and
each of the Related Agreements when executed by the parties will be, the legal,
valid, and binding obligations of VCG Holding Corporation and  Buyer,
enforceable against VCG Holding Corporation 
and  Buyer in accordance with their respective terms, except as
such 

 22
 

enforcement may be limited by bankruptcy, insolvency, moratorium, or
similar laws relating to the enforcement of creditors’ rights and by general
principles of equity (regardless of whether such enforceability is considered
in a proceeding at law or in equity).

9.3                              Existing
Agreements and Governmental Approvals.

(a)                                  Except
as set forth on Schedule 8.6, the execution, delivery, and performance of this
Agreement and the consummation of the transactions contemplated by it (i) do not and will not violate any
provisions of law applicable to VCG Holding Corporation or Buyer; (ii) do not and will not conflict with,
result in the breach or termination of any provision of, or constitute a
default under (in each case whether with or without the giving of notice or the
lapse of time, or both) VCG Holding Corporation’s  or  Buyer’s Articles of Incorporation
or Bylaws or any indenture, mortgage, lease, deed of trust, or other
instrument, contract, or agreement or any order, judgment, arbitration award,
or decree to which VCG Holding Corporation or  Buyer is a party or by
which either of them or any of their respective assets and properties are
bound; and (iii) do not and will
not result in the creation of any Encumbrance on any of VCG Holding Corporation’s
or the Buyer’s properties, assets, or business.

(b)                                 Except
as set forth on Schedule 8.6, no approval, authority, or consent of, or filing
by VCG Holding Corporation or Buyer with, or notification to, any federal,
state, or local court, authority, or governmental or regulatory body or agency
or any other corporation, limited liability company, partnership, individual,
or other entity is necessary to authorize VCG Holding Corporation or Buyer’s
execution and delivery of this Agreement or the consummation of the transactions
contemplated by this Agreement.

9.4                              Investment
Intent. Buyer is acquiring the Purchased Equity Interests for its own account,
for investment, and without any present intention to resell the Purchased
Equity Interests.

10.                              Indemnification-
Limits on Liability

10.1                        Indemnification
by Seller. Seller represents to Buyer that, to the best of Seller’s
knowledge,  at all times relevant to this
agreement; the Seller has maintained at least $1,000,000.00 in liability
insurance, including liquor liability insurance.  Seller Equityholder shall shall pay,
reimburse, indemnify, and hold harmless Buyer, Sellers and their respective
directors, officers, shareholders, successors, and permitted assigns from and
against any and all claims, suits, actions, assessments, losses, diminution in
value, liabilities, Taxes, fines, penalties, damages (compensatory,
consequential, direct, indirect, and other), costs, and expenses (including
reasonable legal fees) (“Losses”), and including any Losses that arise in the
absence of a third-party claim, to the extent of a total aggregate of
$500,000.00 beyond the amount of insurance. In addition, Seller and Seller
Equity holder agree to indemnify Buyer for (a) Any inaccuracy in any
representation or breach of any warranty of the Seller Equityholders contained
in this Agreement (whether at the date of this Agreement or the Closing Date)
and (b) Seller Equityholders’ failure to perform or observe in full, or to have
performed or observed in full, any covenant, agreement, or condition to be
performed or observed by the Seller Equityholders under this Agreement or any
Related Agreement.

 23
 

10.2                        Limitation
on Liability.  Notwithstanding anything
in this Agreement to the contrary, Selling Shareholder shall have no personal
liability for any matter arising under or relating to this Agreement, beyond
the amount of $500,000.00 for a period of three years, which Seller Shareholder
may permit to be offset, in whole or in part against Rent to the Landlord.  Seller and Selling Shareholder acknowledge
that they may have liability under one or more of the Related Agreements, to
the extent set forth therein, and this limitation applies only to this
Agreement.

10.3                        Waiver of
Claims Against Seller. Each Seller Equityholder irrevocably waives and agrees that
Seller Equityholders will make no claim against Seller of any kind or
character, whether by way of subrogation, indemnity, contribution, breach of
contract, or any other theory regarding any claim made by Buyer, Seller, or any
other person under Section 10 or otherwise, and each Seller Equityholder
irrevocably releases and discharges Seller from any such claim.

10.4                        Indemnification
by Buyer. Buyer shall pay, reimburse, indemnify, and hold harmless Seller and
Seller Equityholder-and their respective directors, officers, shareholders,
heirs,-successors, and permitted assigns from and against any and all Losses,
and including any Losses that arise in the absence of a third-party claim, in
connection with or resulting from-any claim arising from or relating to Buyer’s
operation of the Seller or which arises from a claim that occurred after the
Closing Date. In addition, Buyer agrees to indemnify Seller and Seller
Equityholder Buyer from (a) Any inaccuracy in any representation or breach of
any warranty of the Buyer contained in this Agreement (whether at the date of
this Agreement or the Closing Date), and (b) Buyer’s failure to perform or
observe in full, or to have performed or observed in full, any covenant,
agreement, or condition to be performed or observed by the Buyer under this
Agreement or any Related Agreement.

11.                              Taxes:

11.1                           Indemnification
for Taxes.

(a)                                  Seller
and Seller Equityholder, jointly and severally, agree to pay, reimburse,
indemnify, and hold harmless Buyer and Seller and their respective directors,
officers, shareholders, successors, and permitted assigns, from and against any
and all Taxes imposed upon Seller payable with respect to, and any and all
other Losses arising out of or in any manner incident, relating, or
attributable to Taxes imposed upon Seller payable with respect to, or Tax
Returns required to be filed by Seller with respect to, income of Sellers for (i) any taxable year (or other applicable
reporting period) (a “Reporting Period”) of Seller ending on or before the
Closing Date (“Pre-closing Tax Period”) other than Losses arising from
transactions occurring after the Closing, and (ii)
to any Reporting Period of Seller that begins before the Closing Date and that
ends after the Closing Date (a “Straddle Period”), except that with respect to
any Straddle Period, Seller Equityholder shall be responsible for the payment
of such Taxes only to the extent that they relate to the portion of such
Straddle Period ending on the Closing Date and except with respect to any
Reporting Period to the extent of any reserve on the Closing Balance Sheet
relating to any such Taxes.  In addition,
Seller shall be responsible up to the aggregate amount set forth in Paragraph
10.1 above, for any amounts which become due 

 24
 

for the period of time that the Seller operated the business as a
result of any recharacterization of entertainers at the business as employees.

(b)                                 Buyer
and VCG Holding Corporation agrees to pay, reimburse, indemnify, and hold
harmless Seller  Equityholders and its
directors, officers, shareholders, successors, and permitted assigns (including
any in their capacities as officers or directors of Kenkev prior to the
Closing)  from and against any and all Taxes imposed upon Seller payable
with respect to, and any and all other Losses arising out of or in any manner
incident, relating, or attributable to (i)
Taxes imposed upon Seller payable with respect to, or Tax Returns required to
be filed by Seller with respect to, income of Seller for  any Reporting
Period of Seller beginning after the Closing Date, (ii) Taxes imposed upon income of Seller for the Straddle
Period to the extent attributable to the portion of the Straddle Period
beginning on or after the Closing Date, and 
(iii) Taxes imposed upon eller,
or for which the Seller may otherwise be liable, as a result of transactions
occurring on or after the Closing, (c) The indemnities set forth in this
Section 11.1 shall survive, in each case, until the applicable statute of
limitations has expired for each respective fiscal tax year.

11.2                           Preparation
of Tax Returns. [To be reviewed by Seller’s accountants]

(a)                                  Seller
and Seller Equityholder shall prepare or cause to be prepared all Tax Returns
for income of Seller for any closing Tax Period of Seller (including amended
Tax Returns) (“Pre-closing Period Returns”). Seller Equityholders shall timely
file, or cause to be timely filed, all such Period Returns that are due on or
before the Closing Date (giving effect to any extensions thereto). Seller
Equityholders, jointly and severally, shall timely pay, or cause to be paid,
all Taxes imposed upon Seller with respect to such Pre-closing Period Returns.

(b)                                 Seller
Equityholders shall prepare or cause to be prepared and provide Buyer with
Pre-closing Period Returns that are due after the Closing Date (giving effect
to any extensions thereto). Promptly upon the finalization of such Tax Returns
and in any case not later than 60 30 days before the last date for
timely filing of such Tax Returns (giving effect to any valid extensions
thereof), Seller Equityholder shall deliver to Buyer (1) an original of such
Tax Return and (2) a check payable to the appropriate taxing authority in the
amount of any Taxes payable by Seller shown as due thereon in accordance with
Article 7.5 hereinabove). Buyer shall cause such Pre-closing Period Returns to
be executed by the appropriate officer of Seller and shall file such returns,
together with the appropriate payment, if any, on a timely basis.

(c)                                  All
Tax Returns that Seller Equityholders are required to prepare or cause to be
prepared in accordance with this Section 11.2 shall be prepared in a manner
consistent with past practice, and on such Tax Returns no positions shall be
taken, elections made, or method adopted that is inconsistent with positions
taken, elections made, or methods used in preparing and filing similar Tax
Returns in prior periods (including, but not limited to, positions that would
have the effect of deferring income to periods for which Buyer is liable or
accelerating deductions to period for which Seller Equityholder is liable).

(d)                                 Buyer
shall prepare or cause to be prepared all Tax Returns of Seller for any and all
Reporting Periods ending on and after the Closing Date. Buyer shall timely
file, or cause 

 25
 

to be timely filed, all such Tax Returns and Buyer shall timely pay, or
cause to be paid, all Taxes imposed upon with respect to such Tax Returns.

(e)                                  Buyer
shall prepare, or cause to be prepared, all Tax Returns of Seller for any and
all Straddle Periods. All Tax Returns for a Straddle Period shall be submitted
to Seller Equityholder at least 45 days before the last date for timely filing
of such Tax Return (giving effect to any valid extensions thereof), accompanied
by a statement calculating in reasonable detail and in accordance with Section 11.2(f)
any payments required of Seller Equityholder with respect to the amounts
payable by Seller shown as due on such Tax Returns after giving effect to any
Tax payments made before the Closing Date. The amount of any Tax payment
required of Seller Equityholder under this Section 11.2(e) shall be paid by
Seller Equityholder  on or before the
last date for timely filing such Tax Return (including any valid extensions
thereof).

(f)                                    With
respect to any Straddle Period, Seller Equityholder shall be responsible only
for such Taxes imposed upon income of Seller as are allocable to the portion of
the Straddle Period ending on the day before the Closing Date (less any reserve
on the Closing Balance Sheet relating to any such Taxes). Buyer shall be
responsible for, and shall timely pay, or cause to be paid, all other Taxes
with respect to all Straddle Periods. The Tax liabilities for each Straddle
Period for Seller shall, except as otherwise required by applicable law, be
determined by closing the books and records of Seller as of the Closing Date by
treating each such Straddle Period as if it were a separate Reporting Period,
and by employing accounting methods that are consistent with those employed in
preparing the Tax Returns for Seller in Pre-closing Period Returns and that do
not have the effect of distorting income, receipts, or expenses (taking into
account the transactions contemplated by this Agreement), except that (a)
transactions occurring on the Closing Date and after the Closing shall be
allocated to the taxable year or period that is deemed to begin at the
beginning of the day following the Closing Date, (b) exemptions, allowances, or
deductions that are calculated on an annual basis (including depreciation and
amortization deductions) shall be allocated between the period ending on the
Closing Date and the period after the Closing Date in proportion to the number
of days in each such period, and (c) in the case of any Tax imposed upon the
ownership or holding of real or personal property, such Taxes shall be prorated
based on the percentage of the actual period to which such Taxes relate that
precedes the Closing Date

(g)                                 All
Tax Returns that Buyer is required to prepare or cause to be prepared in
accordance with this Section 11.2 shall be prepared in a manner consistent with
past practice and, on such Tax Returns, no positions shall be taken, elections
made, or method adopted that is inconsistent with positions taken, elections
made, or methods used in preparing and filing similar Tax Returns in prior periods
(including, but not limited to, positions that would have the effect of
accelerating income to periods for which Seller or its Equityholder is liable
or deferring deductions to period for which Buyer is liable).

(h)                                 Seller
Equityholders shall be entitled to any credits, rebates, or refunds of Taxes of
Seller payable with respect to any Pre-closing Tax Period of Seller and, with
respect to any Straddle Period, the portion of the Straddle Period ending on
and including the Closing Date. Buyer shall cause the amount of the credits,
rebates, or refunds of Taxes to which 

 26
 

Seller or its Equityholders are entitled under this Section 11.2(h),
but which were received by or credited to Seller after the Closing Date, to be
paid to Seller Equityholder (pro rata) within 10 Business Days following such
receipt or crediting. Buyer shall send written notice to Seller Equityholder of
any such credit, rebate, or refund as soon as possible after Buyer becomes
aware of them.

(i)                                     Buyer
and Seller Equityholder shall cooperate with one another with respect to Tax
matters as more fully set forth in this Section 11. Buyer and Seller
Equityholders shall cooperate fully as and to the extent reasonably requested
by the other party, at the other party’s expense,-in connection with the filing
of Tax Returns pursuant to this Section 11 and any audit, litigation, or other
proceeding with respect to Taxes. Such cooperation shall include the retention
and (upon the other party’s request and at the other party’s expense)the
provision of records and information that are reasonably relevant to any such
Tax Return, audit, litigation, or other proceeding and making employees
available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. Buyer and Seller Equityholder agree
(i) to retain all books and
records with respect to Tax matters pertinent to the Seller relating to any
taxable period beginning before the Closing Date until the expiration of the
statute of limitations (and, to the extent notified by Buyer or Seller
Equityholder, any extensions thereof) of the respective taxable periods, and to
abide by all record retention agreements entered into with any taxing
authority, and (ii) to give the
other party reasonable written notice before transferring, destroying, or
discarding any such books and records and, if the other party so requests,
Buyer or Seller Equityholder, as the case may be, shall allow the other party
to take possession of such books and records to the extent they would otherwise
be destroyed or discarded.

11.3                        Certificate
of Nonforeign Status. Each of the Seller and Seller Equityholder shall deliver
to Buyer at the Closing a certificate of nonforeign status (the “Certificate of
Nonforeign Status”) in accordance with Treasury Regulation Section
1.1445-2(b)(2).

12.                              Expenses.
Each of the parties shall pay all of the costs that it incurs incident to the
preparation, execution, and delivery of this Agreement and the performance of
any related obligations, whether or not the transactions contemplated by this
Agreement shall be consummated, and Seller Equityholders shall pay all of the
cost and expenses incurred by Seller.

13.                              Termination.

13.1                        This
Agreement may be terminated at any time before the Closing Date as follows:

(a)                                  By
Buyer and Seller Equityholder in a written instrument.

(b)                                 By
Buyer or Seller-if the Closing does not occur on the Closing Date or within a
reasonable time thereafter.

(c)                                  By
Buyer or Seller Equityholder if there shall have been a material breach of any
of the representations or warranties set forth in this Agreement on the part of
the other, and this breach by its nature cannot be cured before the Closing.

 27
 

(d)                                 By
Buyer or Seller Equityholder if there has been a breach of any of the covenants
or agreements set forth in this Agreement on the part of the other, and this
breach is not cured within 10 Business Days after the breaching party or
parties receive written notice of the breach from the other party.

13.2                        If
terminated as provided in Section 13.1, this Agreement shall forthwith become
void and have no effect, except for Sections 13.3 and 14, and except that no
party shall be relieved or released from any liabilities or damages arising out
of the party’s breach of any provision of this Agreement.

13.3                        Buyer and
VCG Holding Corporation, jointly and severally, on the one hand, and the Seller
and Seller Equityholder, jointly and severally, on the other, agree that if
this Agreement is terminated, each party will not (and, in the case of Seller
Equityholder, shall cause to not), during the one-year period following the
termination, directly or indirectly solicit any employee of the other party to
leave the employment of the other party.

14.                              Miscellaneous
Provisions.

14.1                        Representations
and Warranties. All of the-representations and, warranties made by the Buyer
and Seller pursuant to this Agreement shall survive the consummation of the
transactions contemplated by this Agreement, except for those specifically
terminated at closing by this Agreement.

14.2                        Notices.
All notices, demands, and requests required or permitted to be given under the
provisions of this Agreement shall be in writing and shall be deemed given (a)
when personally delivered or sent by facsimile transmission to the party to be
given the notice or other communication or (b) on the business day following
the day such notice or other communication is sent by overnight courier to the
following:

	
  

  	
  if to Seller Equityholders:

  
	
   

  	
   

  
	
   

  	
  Mr. Ken Wood

  
	
   

  	
  St. Croix, USVI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  With a Copy to:

  
	
   

  	
   

  
	
   

  	
  Mr. Harry T.
  Heizer, Esq.

  
	
   

  	
  6300 St. Andrews Road, Suite C

  
	
   

  	
  Columbia, South Carolina 29212

  
	
   

  	
  Facsimile: (803) 750-6457

  
	
   

  	
   

  
	
  if to Buyer:

  	
   

  
	
   

  	
   

  
	
   

  	
  Troy Lowrie

  
	
   

  	
  VCG Holding Corp.

  
	
   

  	
  390 Union St., Suite 540

  

 

 28
 

 

	
  

  	
  Lakewood, CO
  80228

  
	
   

  	
  Facsimile: (303)
  922-0746

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Michael L.
  Ocello

  
	
   

  	
  VCG Holding
  Corp.

  
	
   

  	
  1401 Mississippi
  Avenue, #10

  
	
   

  	
  Sauget, IL 62201

  
	
   

  	
  Facsimile: (681)
  271-8384

  
	
   

  	
   

  
	
   

  	
  With a Copy to

  
	
   

  	
   

  
	
   

  	
  Allan S. Rubin, Esq.

  
	
   

  	
  Draper, Rubin & Shulman, P.L.C.

  
	
   

  	
  29800 Telegraph Road

  
	
   

  	
  Southfield, Michigan 48034

  
	
   

  	
  Facsimile:  248-358-9729

  
			

 

or to such other address or facsimile number that the parties may
designate in writing.

14.3                        Assignment.
Neither Seller Equityholder nor Seller, on one hand, nor VCG Holding Corporation
or Buyer, on the other, shall assign this Agreement, or any interest in it,
without the prior written consent of the other, except that VCG Holding
Corporation may assign any or all of its rights to any wholly owned-subsidiary
of VCG Holding Corporation, without Seller Equityholder consent. In no event
shall consent be unreasonably withheld.

14.4                        Parties in
Interest and Expenses. This Agreement shall inure to the benefit of, and be
binding on, the named parties and their respective successors and permitted
assigns, but not any other person or entity. Each party to this agreement shall
be responsible for there own costs, expenses, and professional fees relating to
this agreement.

14.5                        Choice of
Law. This Agreement shall be governed, construed, and enforced in accordance
with the laws of the State of Florida.

14.6                        Counterparts/Fax
Signatures. This Agreement may be signed in any number of counterparts with the
same effect as if the signature on each counterpart were on the same
instrument. Fax signatures shall have the same force and effect as originals.

14.7                        Entire
Agreement. This Agreement and all related documents, schedules, exhibits, or
Certificates represent the entire understanding and agreement between the
parties with respect to the subject matter and supersede all prior agreements
or negotiations between the parties. This Agreement may be amended,
supplemented, or changed only by an agreement in writing that makes specific
reference to this Agreement or the agreement 

 29
 

delivered pursuant to it, and must be signed by the party against whom
enforcement of any such amendment, supplement, or modification is sought. The
terms of the Letter Agreement dated June 9, 2007 and attached hereto as Schedule 14.7 are incorporated herein. To
the extent that any provision of the Letter Agreement contradicts any provision
of this Agreement, then this Agreement shall control.

14.8                        Buyer and
Seller agree that this Agreement memorializes their binding agreement and
intent, as set forth in the Letter of Intent dated July 9, 2007 as “Schedule
14.7”.  However, both Buyer and Seller
acknowledge and agree that there may be need for minor revisions to minor terms
of the Agreement.  Buyer and Seller agree
that they will in good faith cooperate with each other to modify or amend this
Agreement as may be necessary to accomplish the binding  intent of the parties.  Any change that the Buyer or Seller might
request shall be approved by Buyer and Seller, acting in good faith, prior to
closing.  In the event the Buyer and
Seller are unable to agree and the requested change is not a material item or
material issue, the closing shall be completed on the closing date and the
issue shall be resolved by arbitration in accordance with the laws of the State
of Florida.

THIS SPACE INTENTIONALLY LEFT
BLANK

SIGNATURE PAGE TO FOLLOW ON NEXT
PAGE

 

The parties have
executed this Agreement on the date set forth on the first page of this
Agreement.

	
  

  	
  SELLER — KENJA,
  INC.

  
	
   

  	
   

  
	
   

  	
  /s/

  	
  Gregory Kenwood
  Gaines

  	
   

  
	
   

  	
   

  	
  By: Gregory
  Kenwood Gaines

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  KENJA II, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
  Gregory Kenwood
  Gaines

  	
   

  
	
   

  	
   

  	
  By: Gregory
  Kenwood Gaines

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  

 

 30
 

 

	
  

  	
  THIRD
  PROPERTIES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
  Gregory Kenwood
  Gaines

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SELLER
  EQUITYHOLDER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/

  	
  Gregory Kenwood
  Gaines

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BUYER: VCG
  HOLDING 

  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: /s/

  	
  Troy Lowrie

  	
   

  
	
   

  	
  Its:

  	
   CEO

  	
   

  
						

 

 31
 

EXHIBIT
2.3b

Pre-Paid
Items

(To
be supplied by Seller Equityholders)

 32
 

EXHIBIT
2.4

Purchase
Price Allocation

 33
 

EXHIBIT
2.8

BALANCE
SHEET AND PHYSICAL INVENTORY\

(To
be supplied by Seller Equityholders)

 34
 

EXHIBIT
3.1

NON-COMPETITION
AGREEMENT

 35
 

EXHIBIT
3.4

PROPOSED
LEASE

 36
 

SCHEDULE
5.3

DUE
DILIGENCE LIST

 37
 

SCHEDULE
8.2

ARTICLES
OF INCORPORATION AND BY-LAWS

(To
be supplied by Seller Equityholders)

 38

SCHEDULE
8.3

SHAREHOLDERS
AND STOCK CERTIFICATE NUMBERS

(To
be supplied by Seller Equityholders)

 39
 

SCHEDULE 8.6

 

GOVERNMENTAL
AND SHAREHOLDER APPROVALS

(To
be supplied by Seller Equityholders)

	
  1.

  	
  Governmental Approvals

  
	
   

  	
   

  	
   

  
	
   

  	
  a.

  	
  The Florida Alcoholic Beverage Commission –
  Transfer of Liquor Licenses and Permits

  
	
   

  	
   

  	
   

  
	
   

  	
  b.

  	
  City of Hialeah Adult Entertainment Licenses

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Shareholder Approvals

  
	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Gregory Kenwood Gaines

  

 

 40
 

SCHEDULE
8.9

Licenses
and Permits

(To
be supplied by Seller Equityholders)

 41
 

SCHEDULE
8.10

FINANCIAL
INFORMATION

(To
be supplied by Seller Equityholders)

 42
 

SCHEDULE
8.11

UNDISCLOSED
LIABILITIES

(To
be supplied by Seller Equityholders)

 43
 

SCHEDULE
8.12

CHANGES
IN ORDINARY COURSE OF BUSINESS

(To
be supplied by Seller Equityholders)

 44
 

SCHEDULE
8.13

ADVERSE
CHANGES TO BUSINESS

(To
be supplied by Seller Equityholders)

 45
 

SCHEDULE
8.15

EMPLOYEE
BENEFIT PLANS

(To
be supplied by Seller Equityholders)

 46
 

SCHEDULE
8.16

LIST
OF EMPLOYEES AND INDEPENDENT CONTRACTORS

(To
be supplied by Seller Equityholders)

 47
 

SCHEDULE
8.17

CONTRACTS
AND COMMITMENTS

(To
be supplied by Seller Equityholders)

 48
 

SCHEDULE
8.18

ASSETS
NOT OWNED BY SELLER USED IN BUSINESS

(To
be supplied by Seller Equityholders)

 49
 

SCHEDULE
8.23

LITIGATION

1.                                      The
Ragland Workers Compensation matter (Uninsured)

2.                                      A
potential assault and battery claim which may be presented by Amado Cuenca Jr.,
which is alleged to have occurred May 30, 2007 and which is believed to be
insured by Sellers insurance carrier.

SCHEDULE
8.22

TAX
DISCLOSURES

(To
be supplied by Seller Equityholders)

 50
 

SCHEDULE
8.25

ENVIRONMENTAL
DISCLOSURES

(To
be supplied by Seller Equityholders)

 51
 

SCHEDULE
8.27

SUPPLIERS,
VENDORS, AND CUSTOMERS

(To
be supplied by Seller Equityholders)

 52
 

SCHEDULE
8.27a

VIP
CUSTOMERS

(To
be supplied by Seller Equityholders)

 53
 

SCHEDULE
8.29

INSIDER
TRANSACTIONS

(To
be supplied by Seller Equityholders)

 54
 

SCHEDULE
8.30

BANK
ACCOUNTS

(To
be supplied by Seller Equityholders)

 55
 

SCHEDULE
8.31

INTELLECTUAL
PROPERTY

(To
be supplied by Seller Equityholders)

 56
 

SCHEDULE
8.32

INSURANCE

(To
be supplied by Seller Equityholders)

 57
 

SCHEDULE 14.7

Letter Agreement dated June 9, 2007

 58Exhibit
10.2

EXECUTION
COPY

STOCK
PURCHASE AGREEMENT  RE:

KENKEV II
F/K/A MARK R. DEAN, INC. a Maine Corporation.

THIS AGREEMENT is
made on September 14, 2007, between KEN-KEV INC., a South Carolina
corporation, Ken-KEV, Inc. and the person identified on the signature pages as “Seller
Equityholder” hereinafter referred to as (the “Seller Equityholder” and
sometimes “Seller”,) and VCG HOLDING CORPORATION, a Colorado Corporation on
behalf of a Maine corporation to be formed (“Buyer”).

BACKGROUND

A.                                         Seller
owns KEN-KEV, Inc. (“KEN-KEV”) KENKEV II, Inc (“KenkevII”) a Maine corporation
that operates a business commonly known as “Platinum Plus”, located at 200
Riverside Street, Portland, Maine (the “City”). KenkevII operates an adult
entertainment business which presents adult entertainment at its business
location pursuant to a duly issued Maine Liquor License, along with a Nude
Activity License from the City (the “Business”).

B.                                           Seller,
KENKEV, Inc. a South Carolina corporation, owns 100% of the outstanding stock in
KENKEV, II Inc.

C.                                           K
& R Properties, Inc., a South Carolina Corporation and an affiliate of
Seller (“Landlord”) is the sole owner of the real property located at 200
Riverside Street, Portland Maine, which it leases, on a completely TRIPLE net
basis, to KenkevII.

D.                                          Gregory
Kenwood Gaines (“Seller Equityholder”) is the sole and only shareholder in
Seller.

E.                                            Seller
owns all of KenKevII’s issued and outstanding capital stock.

F.                                            Buyer
desires to purchase from Seller, and Seller desires to sell to Buyer, all of
the issued and outstanding stock in KenKevII (the “Purchased Equity Interests”
or the “Purchased Shares”) on the terms of and subject to the conditions of
this Agreement.

G.                                           The
Seller Equityholder is Seller’s chief executive officer and sole shareholder.

H.                                          VCG
Holding Corporation and Buyer, on one hand, and Seller and Seller Equityholder,
on the other, have also agreed to not compete with each other in certain
geographic areas, as provided in noncompetition agreements in the form 

 1
 

agreed upon by the
parties on the date of this Agreement (the “Noncompetition Agreements”).

AGREEMENTS  

NOW, THEREFORE, in
consideration of the Background and the terms and conditions set forth in this
Agreement, each of the Seller, Seller Equityholder, VCG Holding Corporation  and Buyer agree as follows:

1.                                       Agreement
of Purchase and Sale of the Purchased Equity Interests. On the terms and
subject to the conditions set forth in this Agreement, Seller agrees to sell
and deliver to Buyer on the Closing Date the Purchased Equity Interests, free
from all Encumbrances (as defined in Section 8.4), and Buyer agrees to purchase
the Purchased Equity Interests from Seller.

2.                                       Purchase
Price for Purchased Equity Interests.

2.1                                 Shares
to be Purchased.  On the terms and
conditions set forth in this Agreement, the Seller hereby sells, assigns,
transfers, sets over and conveys to the Buyer on the Closing Date described
below, the Purchased Equity Interests.

2.2                                 Share
Purchase Price.  On the Closing Date,
the Buyer shall pay the following purchase price in the manner set forth in
Paragraph 2.3 and 2.4 below to Seller against receipt of the certificates for
the Purchased Shares, duly endorsed for transfer or accompanied by duly
executed stock powers as follows:

FOUR MILLION FIVE HUNDRED THOUSAND ($4,500,000.00)
DOLLARS) for the Purchased Shares, together with a payment of One
Million Dollars ($1,000,000) for the right to purchase the 100% of the shares
of Kenja II, Inc. a Florida corporation which owns and operates an adult
entertainment business in Hialeah, Florida (the “Florida Business”)
(hereinafter, “Option Payors.  The $1
million payment is non refundable, but shall be applied to the purchase price
owed to Seller by Buyer for the purchase of the Florida Business as long as
Buyer acquires the Florida Business within 90 days of execution of a definitive
agreement relative to the Florida Business, or a reasonable time thereafter,
provided both parties are acting in good faith towards a closing.

In addition, Seller and Buyer shall make appropriate
adjustment for operating costs that straddle the Closing Date, such as property
taxes, insurance and utilities (the “Closing Adjustments”)

2.3                                 Payment of
Purchase Price. 
On the Closing Date, the Buyer shall pay to the Seller in cash or by
certified check for the purchase of all of the issued and outstanding shares in
KenKevII, and for the Florida Business purchase option, the sum of FIVE MILLION FIVE HUNDRED THOUSAND ($5,500,000.00) DOLLARS)
payable as follows:

 2
 

a.                                                                                       $50,000.00
from escrow deposited at the time of the of the execution of the letter of
intent;

b.                                                                                      $5,450,000.00
in immediately available funds, by wire transfer to an account designated by
Seller.

2.4                                 The
allocation of the purchase price is set forth in Exhibit 24a
attached hereto [To be reviewed by Seller’s accountants and tax lawyer] and
incorporated by reference herein.  In
addition, Buyer shall pay at closing all pre-paid items set forth on Exhibit 2.3b.  In addition,
Seller shall pay to Buyer, or Buyer shall pay to Seller, as the case may be, an
amount equal to the net Closing Adjustment as
defined in Article 2.2 hereinabove.

2.5                                 Transfer
of License(s): Seller shall assist Buyer in acquiring, in Buyer’s own name,
all liquor licenses and permits used in connection with the Business, as well as
the Nude Activity license issued by the City, which shall permit the Buyer to
operate the Business in substantially the same manner it is presently being
operated. In the event that the Buyer is not able to acquire the liquor license
or any City issued license on or before the Closing Date, then this Agreement
shall close in Escrow, consistent with Exhibit 2.5

2.6                                 No
Liabilities.  Prior to the Closing
Date, Seller shall have caused all known liabilities and obligations of Kenkev
to be satisfied, other than with respect to liabilities arising from the
contracts accepted by Buyer (the “Assumed Contracts”) and set forth on Schedule 8.17, and with respect to such contracts only for
products and services provided to Kenkev after the Closing Date (the “Future Liabilities”).

2.7                                 Asset
in Business: As of the Closing Date, the Seller will insure that Kenkev
owns all of the leases presently in existence, along with all equipment,
furniture, and fixtures, and  personal
property in substantially the same  form
as they existed as of the date this Agreement is executed.

2.8                                 Excluded
Assets.  Buyer is not
entitled to, and Seller may distribute from Kenkev to the “Seller
Equityholder), the following assets of Kenkev, to the extent existing or
arising out of facts occurring before the Closing Date:  cash, cash equivalents, bank accounts,
accounts receivable, credit card processing agreements and other similar assets
relating to amounts earned before the Closing Date but subject to the “Closing
Adjustments.”

 3.                                    Related
Agreements.

3.1                                 Noncompetition
Agreements. At the Closing, VCG Holding Corporation the “Buyer,”  and the Seller and the Seller Equityholder,
shall execute and deliver to each other the Noncompetition
Agreements and Confidentiality Agreement
in the form attached hereto as Exhibit 3.1.
The Non-Compete Agreements shall provide for the Seller Equityholder not to
compete with VCG Holding Corporation, the Buyer, for a period of 3 years and a
radius of 50 miles from Kenkev’s location and for VCG Holding

 3
 

Corporation, the Buyer not to compete with Seller or Seller
Equityholder for a period of three years in any area within 50 miles of any
existing businesses of Seller or Seller Equityholder or in which Seller
Equityholder has a controlling interest, except for Florida, a listing of all
such business is attached as an addendum to this Agreement, for which Seller
and Seller Equityholder have granted VCG a first right of refusal on the sale
of such businesses as consideration for this provision  In each case, the restrictions shall apply to
all affiliate businesses of Buyer and Seller Equityholder.   It is the intent of the parties that neither
Buyer nor Seller will operate within fifty (50) miles of a present or future
location of the other, large metropolitan areas and Florida excluded, and which
shall include the metropolitan markets with greater then 3 million persons in
terms of overall population, along with all present locations where either
party presently operates.

3.2                                 Lease.
At the time of closing, Buyer and Landlord will enter into a commercially
reasonable lease, to be mutually agreed upon by the parties for the lease of
the Real Property located at 200 Riverside Street, Portland, Maine. The minimum
term of the lease shall be for a period of at least 25 years and the lease
shall provide a right of first refusal to acquire the property should Landlord
desire to sell the property or upon death of all owners of Landlord, but a sale
between the present shareholders of Landlord to one another or among their
respective heirs, will not trigger the right of first refusal, nor shall any
gifts to the heirs of such owner.

4.             Pre-closing
Actions. Before the Closing:

4.1                                 Conduct
of Business. Seller shall cause Kenkev to carry on and conduct the Business
only in the ordinary course consistent with past practice, without any material
change in the policies, practices, and methods Kenkev pursued before the date
of this Agreement. Seller will use its best efforts and cause Kenkev to use its
best efforts to preserve the Business organization intact; to preserve the
relationships with Kenkev’s customers, suppliers, and others having business
dealings with Kenkev; and to preserve the services of Kenkev’s employees,
agents, and representatives. Without limitation of the foregoing, (a) Seller
will cause Kenkev not to undertake without Buyer’s prior written consent (not
to be unreasonably withheld or delayed) any action that, if taken before the
date of this Agreement, would be required to be disclosed on Schedule 8.12, and
(b) Seller will cause Kenkev not to alter the physical contents or character of
any of its inventories in a way that materially affects the nature of the
Business or results in a material change in the total dollar valuation of the
inventories or otherwise take action or refrain from taking action that would
result in any material change in Kenkev’s assets or liabilities, in each case
other than in the ordinary course of business consistent with past business
practices.

4.2                                 Access
to Buyer. From the date of this Agreement through the Closing, Seller  shall cause Kenkev to permit Buyer and its
representatives to make a full business, financial, accounting, and legal
investigation of Kenkev. Seller shall cause Kenkev to take all reasonable steps
necessary to cooperate with Buyer in conducting this investigation. No such
investigation by Buyer or its representatives or any knowledge obtained or that
could have been obtained shall affect the representations and warranties of
Seller or Buyer’s reliance on them.

 4
 

4.3                                 UCC
Filings. Buyer will conduct a Uniform Commercial Code search result for the
State of Maine, the County of Cumberland, and in South Carolina showing no
security interests or liens naming KenKev as a debtor, other than those
acceptable to the Buyer or released prior to or at the time of the Closing
described herein.

4.4                                 Accuracy
of Representations and Warranties and Satisfaction of Conditions. Seller
will immediately advise Buyer in writing if (a) any of the representations or
warranties of Seller is untrue or incorrect in any material respect, or (b)
Seller becomes aware of the occurrence of any event or state of facts that
results in any of the representations and warranties of Seller being untrue or
incorrect as if Seller were then making them. Seller will not take any action,
or omit to take any action, and shall cause Kenkev not to take any action, or
omit to take any action, that would result in any of Seller’s representations
and warranties set forth in this Agreement to be untrue or incorrect as of the
Closing Date. Seller will use its best efforts to cause all conditions set
forth in Section 5 that are within its control to be satisfied as promptly as
practicable under the circumstances.

5.             Conditions
Precedent to Buyer’s Obligations.

Buyer’s obligation to consummate the transactions contemplated by this
Agreement is subject to the fulfillment (or waiver by Buyer) before or at the
Closing of each of the following conditions:

5.1                                 Accuracy
of Representations and Warranties. The representations and warranties of
Seller in Article 8, hereinafter and all related documents shall be true and
correct on the date of this Agreement and at and as of the Closing.

5.2                                 Performance
of Covenants. Seller shall have in all respects performed and complied with
all covenants, agreements, and conditions that this Agreement requires, and
with all other related documents to be performed or complied with before or at
the Closing. The Seller shall have executed and delivered the Non-competition
Agreements, the Waivers, the Forms W-9 referred to in Section 8.22(e), and the
Certificates of Non-foreign Status referred to in Section 11.3. To the extent
that any buy-sell agreements exist between any parties relative to the shares
being sold in KenkevII,  they have been
terminated.

5.3                                 Satisfactory
Due Diligence Review. All due diligence by Buyer has been completed, and
Buyer has notified Seller Equityholder in writing of the successful completion
of the Due Diligence.  Seller
represents that all materials provided to Buyer during the course of due diligence
are truthful and accurate, to the best of Seller’s knowledge.

5.4                                 Permits.
Buyer shall have acquired all licenses and permits that in Buyer’s opinion are
necessary to operate the Business after the Closing. These include, but are not
limited to, a Liquor License issued by the State of Maine and a Nude Activity
License issued by the City of Portland. There shall be no material change in
the ability of the Buyer to conduct business in the manner in which it is
currently being operated.

5.5                                 No
Casualty. Before the Closing Date, Seller shall not have incurred, or be
threatened with, a material liability or casualty that would materially impair
the value of the Business.

5.6                                 Opinion
of Counsel. Buyer shall have received the favorable opinion of counsel to
Seller dated the Closing Date and in form and substance satisfactory to Buyer’s
counsel that the

 5
 

Seller is a corporation in good standing and that Seller is lawfully
entitled to sell the stock in KEN-KEV, Inc and KenkevII, Inc..

5.7                                 Equity
Interest Certificates. Seller shall have delivered to Buyer stock
certificates representing all of the Purchased Equity Interests registered in
the name of the Seller (without any restrictive legend). The certificates shall
be endorsed in blank or with accompanying signed assignments. Seller shall also
deliver to Buyer such other instruments or documents that shall, in the
reasonable opinion of the Buyer’s counsel, be reasonably required to vest good
title in Buyer to the Purchased Equity Interests free from all Encumbrances.

5.8                                 Certificates
Regarding Conditions Precedent. The Seller shall have delivered to Buyer
certificates of the Seller  certifying
that as of the Closing Date all of the conditions set forth in Sections 5.1,
5.2, 5.5, 5.7, 5.10, and 5.12 have been complied with, satisfied or waived by
Buyer.

5.10                           No
Litigation. No proceeding or investigation shall have been instituted
before or by any court or governmental body to restrain or prevent the carrying
out of the transactions contemplated by this Agreement or that might affect
Buyer’s right to own the Purchased Equity Interests or for Buyer to own,
operate, and control the Business after the Closing Date.

5.11                           Lien
Search. Buyer shall have obtained UCC lien searches in form and content
satisfactory to Buyer.

5.12                           Consents.
Seller shall have obtained in writing all consents necessary or desirable to
consummate or facilitate consummation of this Agreement and any related
transactions. The consents shall be delivered to Buyer before Closing and shall
be reasonably acceptable to Buyer in form and substance.

5.13                           Environmental
Investigation. Buyer waives the right to perform a environmental
investigation of the property at this time, however reserve the right to
conduct such a investigation at the time that it exercises its first right of
offer to acquire the property. Nothing shall affect the Seller’s  representations and warranties in Section
8.25 or Buyer’s reliance on them or Seller’s indemnification obligations under
Section 10 hereinafter.

5.14                           Waivers.
Seller shall have delivered to Buyer a statement from each of the Seller and
each of KEN-KEV, Inc, and KenkevII’s officers and directors, in form and
substance acceptable to respective Buyer, that each either waives or has no
claim, as appropriate, against the corporation for unpaid dividends, bonuses,
profit sharing, rights, or other claims of any kind, nature, or description
except salaries and fringe benefits normally accrued and described in the
statement or otherwise contemplated under this Agreement.

5.15                           Resignations.
Each director and officer of KEN-KEV, Inc. and KenkevII shall have delivered to
Buyer resignations from their positions.

5.16                           Other
Documents and Instruments. Buyer shall have received any other documents
and instruments from Seller as it may reasonably request.

 6
 

5.17                           Approvals
by Buyer’s Counsel. Buyer’s counsel shall have reasonably approved all
legal matters and the form and substance of all documents Seller, or Seller
Equityholder are required to deliver at the Closing.

5.18                           Payment
of all Liabilities. All known liabilities (including all vendors, personal
and real property taxes, and utilities) of the Sellers incurred prior to the
Closing date of the respective purchase shall have been paid in full by the
respective company or the corporate funds necessary to pay such expenses shall
be escrowed or allocated from the Corporate Operating Account until such time
as satisfactory evidence of the payment of the expense has been received by the
Buyer.

6.                                       Conditions
Precedent to Seller’s Obligations.

Seller’s
obligations to consummate the transactions contemplated by this Agreement are
subject to the fulfillment (or waiver by Seller ) of each of the following
conditions before or at the Closing:

6.1                                 Accuracy
of Representations and Warranties. Buyer’s representations and warranties
contained in this Agreement and all related documents shall be true and correct
on the date of this Agreement and at and as of the Closing.

6.2                                 Performance
of Covenants. Buyer shall have in all respects performed and complied with
all covenants, agreements, and conditions required by this Agreement and all
related documents that must be performed or complied with before or at the
Closing.

7.                                       Closing
Matters.

7.1                                 Closing.
The closing of the transactions contemplated in this Agreement  (the “Closing”) shall take place at the
offices of William C. Knowles, Verrill Dana, LLC, One Portland Square,
Portland, ME 04112 within 14 days of the date that all license and permits are
approved for transferor at another place and/or on another date that the
parties agree on (the “Closing Date”).

All transactions and all
documents executed and delivered at the time of Closing shall be deemed to have
occurred simultaneously, and no transaction shall be deemed to have occurred
and no document shall be deemed to have been executed or delivered unless all
transactions have occurred and all documents have been executed and delivered.
For the purposes of this Agreement, the term Business Day
means a day other than a Saturday or Sunday on which banks are generally open
for business in Maine.

7.2                                 Certain
Closing Expenses. Seller shall be liable for and shall pay all federal,
state, and local sales, use, excise, and documentary stamp taxes and all other
similar taxes, duties, or other like charges properly payable on and in
connection with the conveyance and transfer of the Purchased Equityholder
Interests to Buyer.

7.3                                 Further
Assurances. Seller shall cooperate with and assist Buyer and take all other
reasonable actions to ensure a smooth transition of the Business to Buyer. From
time to time after the Closing Date, Seller shall, at the request and expense
of Buyer, execute and deliver additional conveyances, transfers, documents,
instruments, assignments,

 7
 

applications, certifications, papers, and other assurances that Buyer
requests as required to effectively carry out this Agreement’s intent in good
faith and to transfer the Purchased Equityholder Interests to Buyer.

7.4                                 Title
and Liens. At the Closing, title to the assets owned by KEN-KEV, Inc. and
KenkevII shall be free, clear, and unencumbered, as specifically set forth in
this Agreement. To this end at the closing, the Seller shall cause to be
delivered all of the following:

a.                                       Lien
Search. Buyer at its expense shall have obtained a tax lien search and financing
statement search, both certified to a date at or near the Closing Date and each
showing that no tax, mechanics, or other liens have been filed against the
property. Seller shall reasonably cooperate with Buyer to conduct such a
search.

b.                                      Application
for Conditional Tax Clearance. Seller shall provide Buyer a letter from the
appropriate Maine authorities concerning liability of KEN-KEV, Inc. and  KenkevII for sales or withholding taxes, both
as of a date near the Closing Date and each showing that KEN-KEV, Inc. and
KenkevII are not in arrears on payments relating to the above referenced taxes.

7.5                                 Income
Taxes.  Buyer and Seller agree that
Buyer shall be responsible for all taxes based on KEN-KEV, Inc. and KenkevII’s
taxable income, to the extent accrued on and after the Closing Date and that
Seller shall be responsible for those amounts before the Closing Date.  In order to effect this provision, the
parties agree that Seller shall cause KEN-KEV, Inc. and KenkevII to close its
books and determine the net taxable income and federal and state taxes for the
pro rated year ending on the day before the Closing Date and shall include the
tax due as a closing adjustment under Article 2.2 and Exhibit 2.4.

8.                                       Seller’s
Representations and Warranties.

The Seller represents and warrants to Buyer as follows as of the date
of this Agreement and as of the Closing Date, and acknowledges and confirms,
that Buyer is relying on these representations and warranties in entering into
this Agreement:

8.1                                 Organization
and Standing. KEN-KEV, Inc. and KenkevII are corporations organized,
validly existing, and in good standing under the laws of the state of
incorporation, and have all requisite corporate power and authority to own its
property and conduct its business as it is now being conducted. The nature of
the business and the character of the properties KEN-KEV, Inc. and  KenkevII own or lease do not make licensing
or qualification of as a foreign entity necessary under the laws of any other
jurisdiction. Except for the use of the name “Platinum Plus” or otherwise as
set forth in Schedule 8.1 (need Schedule). 
KEN-KEV, Inc. and KenkevII have not in the last five years used or
assumed any other name in connection with the conduct of its business.

8.2                                 Articles
and Bylaws. Schedule 8.2 contains true and complete copies of KEN-KEV, Inc.
KenkevII’s Articles of Incorporation and Bylaws.

 8
 

8.3                                 Capitalization.
KEN-KEV, Inc. and KenkevII’s authorized capital stock consists solely of 100,000
shares of common stock, of which 1,000 shares are issued and outstanding
respectively. All of the issued and outstanding Seller Equity Interests are
owned of record and beneficially by the Seller . A true and complete list of
the certificate numbers and number of all shares  held
by the Seller is set forth in Schedule 8.3. There are no options, calls,
subscriptions, warrants, agreements, or other securities or rights outstanding
for the purchase or other acquisition of Seller’s Equityholders Interests; that
are convertible into, exercisable for, or relate to Seller’s Equityholder  Interests; or that have any voting
rights.  Neither Corporation has any
outstanding contractual obligations to repurchase, redeem, or otherwise acquire
any outstanding shares of Seller’s Equityholder Interests. Seller is not a
party to any Buy-Sell Agreement that would affect in any manner any of the
transactions contemplated in this Agreement.

8.4                                 Seller
Equityholder Interests. Seller is the lawful owner of the Purchased Equity
Interests, free from all pledges, liens, security interests, encumbrances,
mortgages, adverse claims, charges, options, equity interests, proxies, voting
agreements or trusts, leases, tenancies, easements, or other interests (“Encumbrances”).
All shares of the Purchased Equityholder Interests have been authorized and
validly issued and are fully paid, non-assessable, and free of preemptive
rights. On delivery to Buyer at the Closing of the Purchased Equityholder
Interests, endorsed for transfer, Buyer will be the absolute owner of the
Purchased Equityholder Interests, free from all Encumbrances arising by or
through Seller, KEN-KEV, Inc. or KenkevII, Inc..

8.5                                 Authorization.
Seller has the requisite legal capacity to execute, deliver, and perform this
Agreement and the Noncompetition Agreements (the “Related Agreements”) to which
they are a party and to consummate any related transactions. Seller  has duly executed and delivered this
Agreement. This Agreement is, and the Related Agreements when executed and
delivered by the parties to them will be, legal, valid, and binding obligations
of Seller, enforceable against Seller in accordance with their respective
terms, except as such enforcement may be limited by bankruptcy, insolvency,
moratorium, or similar laws relating to the enforcement of creditors’ rights
and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity).

8.6           Existing Agreements
and Governmental Approvals.

(a)           Except as
set forth in Schedule 8.6, the execution, delivery, and performance of this
Agreement and the Related Agreements by Seller and the consummation of the
transactions contemplated by them (i) do not and
will not violate any provisions of law applicable to Seller or KEN-KEV, Inc. or
KenkevII;(ii) do not and will not conflict with,
result in the breach or termination of any provision of, or constitute a
default under (in each case whether with or without the giving of notice or the
lapse of time, or both) Seller’s respective Articles of Incorporation or Bylaws
or any indenture, mortgage, lease, deed of trust; other instrument, contract,
or agreement; or any order, judgment, arbitration award, or decree to which
Seller or Seller Equityholder is a party or by which it or any of its assets
and properties are bound; and (iii) do not
and will not result in the creation of any Encumbrance on any of the
properties, assets, or business of Seller, KEN-KEV, Inc. or KenkevII, Inc..

 9
 

(b)           Except as set forth in
Schedule 8.6, no approval, authority, or consent of or filing by Seller,
KEN-KEV, Inc. or KenkevII, Inc. with, or notification to, any federal, state,
or local court, authority, or governmental or regulatory body or agency, or any
other corporation, limited liability company, partnership, individual, or other
entity is necessary to authorize the execution and delivery of this Agreement
or any of the Related Agreements or the consummation of the transactions
contemplated by this Agreement or any of the Related Agreements.

8.7                                 No
Subsidiaries. KEN-KEV, Inc. does not have any subsidiaries or directly or
indirectly own any interest or have any investment in any other corporation,
partnership, or other entity, other than a 100% interest in KenkevII, Inc.

8.8                                 No
Insolvency. No insolvency proceeding of any character, including, without
limitation, bankruptcy, receivership, reorganization, composition, or
arrangement with creditors, voluntary or involuntary, affecting Seller or any
of its assets or properties is pending or, to the Best Knowledge of Seller
Equityholder, threatened. Neither Seller nor KenkevII have taken any action in
contemplation of, or that would constitute the basis for, the institution of
any such insolvency proceedings. For the purposes of this Agreement, the phrase
Best Knowledge of Seller Equityholders
means the knowledge that the Seller Equityholder has or would have after due
inquiry into the matter in question.

8.9                                 Permits
and Licenses. KEN-KEV, Inc. and KenkevII, Inc. have all necessary permits,
certificates, licenses, approvals, consents, and other authorizations required
to carry on and conduct the Business and to own, lease, use, and operate its
assets at the place and in the manner in which the Business is presently
conducted. A complete list of all 
permits, certificates, licenses, approvals, consents, and other
authorizations is included in Schedule 8.9.

8.10                           Financial
Statements. [To be reviewed by Seller’s accountants]Seller has delivered to
Buyer the financial statements for the Corporations listed in Schedule 8.10,
and Seller shall deliver, before the Closing, copies of financial statements
for each full month before the Closing after the periods reflected in such
listed financial statements (the “Financial Statements”). The Financial
Statements fairly and accurately present the financial position of Kenkev and
its affiliates as of the dates indicated and the results of its operations as
of the dates indicated and for the periods covered thereby, and are and will be
true and correct in all material respects, subject to year-end adjustments. All
inventories reflected in the Financial Statements have been and will be valued
at the lower of cost or market value, with cost determined using the last-in,
first-out method; adequate provision has been and will be timely made in the
Financial Statements for doubtful accounts or other receivables; sales are
stated in the Financial Statements net of discounts, returns, and allowances;
all Taxes (as defined in Section 8.22) due or paid are and will be timely
reflected in the Financial Statements; and all Taxes not yet due and payable
are and will be fully accrued or otherwise provided for in the Financial
Statements. Any items of income or expense that are unusual or of a
nonrecurring nature during any such period or at any such balance sheet date
are and will be separately disclosed in the Financial Statements. Except as
otherwise disclosed on Schedule 8.10, Seller’s books, records, and work papers
are complete and correct and accurately reflect,

 10
 

and will accurately reflect, in all material respects the basis for the
financial condition and the results of KEN-KEV, Inc. and  KenkevII’s operations that are set forth in
the Financial Statements.

8.11                           No
Undisclosed Liabilities. Except as otherwise disclosed on Schedule 8.11 or
in the Financial Statements, (none of which have or will have arisen as a
result of negligence, gross negligence, strict liability, tort, toxic tort,
environmental liabilities, violations of law, or default under any Contract or
Commitment attributable to KenkevII or for which KenkevII shall be responsible),
KEN-KEV, Inc. and KenkevII do not have any debts, liabilities, or obligations
or any kind or character whatsoever, whether accrued, absolute, contingent,
matured, not matured, known, unknown, or otherwise,  of a character as would be required to be reflected
in any balance sheet prepared in accordance with GAAP.

8.12                           Conduct
of Business. Except as otherwise disclosed on attached Schedule 8.12, since
the date of execution of the Letter Agreement dated June 7, 2007 (“the Letter
Agreement), KEN-KEV, Inc, and KenkevII have not:

(a)                                  Issued
any capital stock  or other securities convertible
into or exchangeable or exercisable for capital stock   or having voting rights; declared or paid any
dividend; made any other payment from capital or surplus or other distribution
of any nature; or directly or indirectly redeemed, purchased, or otherwise
acquired, recapitalized, or reclassified any of its capital stock.

(b)                                 Merged
with any other entity.

(c)                                  Altered
or amended its Articles of Incorporation or Bylaws.

(d)                                 Entered
into, materially amended, or terminated any contract, license, lease,
commitment or permit, except in the ordinary course of business consistent with
past practices.

(e)                                  Experienced
any labor disturbance.

(f)                                    Incurred
or become subject to any obligation or liability (absolute, accrued, contingent
or otherwise), matured, not matured, except (i) in the
ordinary course of business consistent with past practices and (ii) in connection with the performance of this Agreement.

(g)                                 Discharged
or satisfied any Encumbrance or paid or satisfied any obligation or liability
(absolute, accrued, contingent, or otherwise) other than (i)
liabilities shown or reflected in the respective balance sheet dated August 31,
2007 or (ii) liabilities incurred since the date
of the balance sheet, in each such case only in the ordinary course of business
consistent with past practices and in accordance with the express terms of such
obligation or liability.

(h)                                 Mortgaged,
pledged, or subjected to any Encumbrance any of its assets.

 11
 

(i)                                     Sold,
transferred, or agreed to sell or transfer any asset or business; cancelled or
agreed to cancel any debt or claim; or waived any right, except in the ordinary
course of business consistent with past practices.

(j)                                     Disposed
of or permitted to lapse any Intellectual Property.

(k)                                  Granted
any increase in employee rates of pay or any increases in salary payable or to
become payable to any officer, employee, consultant, or agent, or by means of
any bonus or pension plan, contract, or other commitment increased the
compensation of any officer, director, employee, consultant, or agent, or hired
any new officer, employee, consultant, or agent, except in the ordinary course
of business.

(l)                                  Made or authorized
any capital expenditures for additions to plant or equipment accounts in excess
of $10,000.00.

(m)                               Entered
into any transaction (including, without limitation, any contract or other
arrangement providing for employment, furnishing of services, rental of real or
personal property, or otherwise requiring payments) with any shareholder,
officer, or director of KenkevII; any member of their immediate families; or
any of their affiliates.

(n)                                 Experienced
any material damage, destruction, or loss (whether or not covered by insurance)
affecting its properties, assets, or Business.

(o)                                 Failed
to regularly maintain and repair its assets in the ordinary course of business
consistent with past practices.

(p)                                 Instituted
or settled any litigation, action, or proceeding before any court or
governmental body relating to it or its property.

(q)                                 Made
any change in any method of accounting or any accounting practice or suffered
any deterioration in accounting controls.

(r)                                    Varied,
cancelled, or allowed to expire any insurance coverage, except as agreed by the
parties in writing.

(s)                                  Made
any payment or disbursement of moneys or property or declared or paid any
dividend or other distribution to or on behalf of any officer, director, or
shareholder of KenkevII or any member of the immediate families of any of the
Seller Equityholder, or any affiliate, other than for payment of compensation
or reimbursement of expenses in accordance with past practices.

(t)                                    Entered
into any other transaction other than in the ordinary course of business
consistent with past practices.

(u)                                 Agreed
or committed to do any of the foregoing.

8.13                           No
Adverse Changes. Except as otherwise disclosed in Schedule 8.13, since the
date of execution of the Letter Agreement, there has not been any occurrence,
condition, or development that has adversely affected, or is likely to
adversely affect, the Seller, or its prospects, condition (financial or
otherwise), operations, assets, or the Business.

 12
 

8.14                           Employees.
That except as disclosed on Schedule 8.14 (Schedule),
there is not now, nor has there been at any time during the past five years,
any strike, lockout, grievance filing, other similar labor dispute against
KenkevII or that in any manner affects KenkevII. KenkevII is and has been, to
the best of its knowledge, in compliance with all rules regulating employee
wages and hours. Buyer acknowledges that Kenkev has not treated the
entertainers as employees and that such treatment is of an uncertain
nature.   This acknowledgement pertains
to the entertainer/employee issue every where it is mentioned in this Agreement.  On or before the Closing Date, Kenkev shall
have paid all its accrued obligations relating to employees (whether arising by
operation of law, by contract, or by past service) or payments to trusts or
other funds, to any governmental agency, or to any individual employee (or his
or her legal representatives) with respect to unemployment compensation
benefits, profit sharing, retirement benefits, or Social Security benefits.
Kenkev has, to the best of its knowledge, 
complied with all requirements of the U.S. Immigration and Nationality
Act, as amended, including without limitation all employment verification and
antidiscrimination provisions applicable to current and former employees of
Kenkev.

8.15         Employee Benefit Plans.[Subject
to review by Seller’s accountants.]

(a)           Schedule
8.15 contains a true and complete list of all plans, contracts, programs, and
arrangements (including, but not limited to, collective bargaining agreements,
pensions, bonuses, deferred compensation, retirement, severance, hospitalization,
insurance, salary continuation, and other benefit plans, programs, or
arrangements) maintained currently or at any time within the previous five
years by Kenkev or under which Kenkev has had any obligations with respect to
an employee, director, or shareholder of Kenkev (the “Plans”).

(b)           True,
correct, and complete copies of the following documents, wit respect to each of
the Plans, if applicable, have been made available or delivered to the Buyer: (i) any plans and related trust documents, and amendments
thereto; (ii) the two most recent Forms 5500; (iii) the last IRS determination letter, if applicable; (iv) the most recent actuarial report; (v)
summary plan descriptions; (vi) the two
most recent Forms PBGC-1, and (vii) with
respect to any Plan that is maintained pursuant to a collective bargaining
agreement, all collective bargaining agreements pursuant to which contributions
are being made or obligations are owed to such Plan, and all contracts with
third-party administrators, actuaries, investment managers, consultants, and
other independent contractors that relate to any such Plan.

(c)           Except as
specifically set forth in Schedule 8.15, (i) each Plan
that is an employee pension benefit plan, (if any)
as defined in Section 3(2) of ERISA, 29 USC 1002(2), and its related trust (“Pension
Plan and Trust”) now meet, and since their inception have met, the requirements
for qualification under Sections 401(a) and, if applicable, 401(k) of the
Internal Revenue Code of 1986, as amended (the “Code”), and are now, and since
their inception have been, exempt from taxation under IRC 501(a), and the
Internal Revenue Service (IRS) has issued a current favorable determination
letter with respect to the qualified status of each Pension Plan and Trust and
has not taken any action to revoke such letter; (ii)
Kenkev has

 13
 

performed all obligations required to be performed by it under the
Plans (including, but not limited to, the making of all contributions) and is
not in default under and has no knowledge of any default by any other party to
the Plans; (iii) each Plan is in material
compliance as to form and operation, in accordance with all applicable
provisions of the Code and ERISA and any other applicable federal and state
laws (including rules and regulations thereunder), and each Plan has been
operated in compliance with such laws and written plan documents; (iv) neither Kenkev nor, to the Best Knowledge of Seller
Equityholder, any other disqualified person
or party in interest, within the meaning of
IRC 4975 or Section 3(14) of ERISA, 29 USC 1002(14), has engaged in any prohibited transaction, as this term is defined in IRC 4975
or Section 406 of ERISA, 29 USC 1106, that could, following the Closing Date,
subject any Plan (or its related trust), Buyer, Kenkev, or any officer,
director  or employee of Buyer or Kenkev, to any
tax or penalty imposed under the Code or ERISA; (v)
there are no actions or claims pending (other than routine claims for benefits)
or, to the Best Knowledge of Selling Equityholder, threatened against any Plan
or against the assets of any Plan; (vi) no Plan is
subject to Part 3 of Title I of ERISA, Section 412 of the Code, or Title IV of
ERISA; (vii) each Plan’s plan
official, as defined in Section 412 of ERISA, 29 USC 1112, is bonded
to the extent required by Section 412; (viii) no
proceeding has been initiated to terminate any Plan, and any such termination
will not subject Kenkev or Buyer to liability to any person; (ix) no Plan is a multiemployer plan,
as defined in Section 3(37) of ERISA, 29 USC 1002(37); (     x) no retiree benefits are
payable under any Plan that is an employee welfare benefit
plan (“Welfare Plan”), as this term is defined in Section 3(1) of
ERISA, 29 USC 1002(1); and (xi) each
Welfare Plan that is a group health plan
within the meaning of IRC 5000 complies with and in each case has complied with
the applicable requirements of Sections 601 through 608 of ERISA, 29 USC 1161–1168,
and IRC 4980B.

(d)           Kenkev
has not incurred or will not incur with respect to any Plan that is an employee benefit plan, as defined in Section (3)(3) of
ERISA, 29 USC 1002(3), any actual or contingent liability, including, but not
limited to, liability under Section 601 through 608 of ERISA, 29 USC 1161–1168,
and IRC 4980B, any withdrawal liability from any multiemployer pension plan,
any termination or withdrawal liability under Sections 4062, 4063, or 4064 of
ERISA, 29 USC 1362, 1363, or 1364, any accumulated funding
deficiency as such term is defined in Section 302 of ERISA, 29 USC
1082, and IRC 412 (whether or not waived), any requirement to make any
contributions to any multiemployer plan, solely as a result of Seller being a
member of a controlled group of corporations, or
treated as a single employer with any other entity within the meaning of IRC 414(b),
414(c), 414(m), or 414(n) arising from or incurred with respect to any period
before the Closing Date.

8.16                           Certain
Employees. Each of the following is included in the list of agreements in Schedule 8.15: all collective bargaining agreements, employment
and consulting agreements, executive compensation plans, bonus plans, deferred
compensation plans, pension or retirement plans, participation plans,
tip-pooling arrangements,

 14
 

profit-sharing plans, equity interest purchase and equity interest
option plans, hospitalization insurance, and other plans and arrangements,
providing for compensation and/or benefits to Kenkev’s employees, directors, or
shareholders.

(a)                                  Schedule
8.16 contains a true and complete list of the following: the names, positions,
and compensation of the present directors, officers, employees, and current
independent contractors of Kenkev. Except as listed in Schedule 8.16, all
Kenkev’s employees are employees-at-will, may be terminated at any time in
accordance with the written policies (copies of which are contained in Schedule
8.16) of Kenkev for any lawful reason or for no reason, and are not entitled to
employment by virtue of any oral or written contract, employer policy, or
otherwise.

(b)                                 No
retired employees of Kenkev are receiving or are entitled to receive any
payments or health or other benefits from Kenkev.

(c)                                  Buyer
agrees to continue employment of all employees post closing as at-will
employees. Seller Equityholder agrees that he will not solicit/hire any
employee provided that Buyer maintains its current compensation program, and
provided Buyer does so, then Seller Equityholder may not solicit or hire any
employee to work for him or any related entity for 6 months from the Closing
Date; furthermore, for the 6 months after such initial 6-month period, Seller
Equityholder agrees that he will consult with Buyer before soliciting/hiring
any such employee.  If Buyer changes the
Compensation Program and such change results in the Employee making
substantially less income, then the non-hiring provision shall not apply. The
same provisions shall apply to entertainers, except that if an entertainer
shows up unsolicited to another location owned or affiliated with Seller
Equityholder, they will be permitted to work. None of the above shall apply to
Kevin Fox, whom Buyer has agreed to pay a salary of $2,500.00 a week for a
minimum of 60 days, provided Mr. Fox agrees to work for this same period of
time, and thereafter, an additional 30 days at Mr. Fox’s option. Thereafter,
Seller Equityholder may solicit or hire Mr. Fox.   It is the general intent of the Buyer and
Seller that should any manager’s net income be reduced by 10% or more on the
average, during any forty-five (45) day period, that the Seller would have the
option of hiring such manager.

8.17                           Contracts
and Commitments.

(a)                                  Schedule
8.17 contains a true and complete list of all of KEN-KEV, Inc, and KenkevII ‘s
written, and a description of all of KenkevII’s unwritten, contracts,
obligations, agreements, plans, arrangements, and commitments of any kind or
nature (the “Contracts and Commitments”), except for

(i)                                  those contracts that
are described in another Schedule;

(ii)                              each purchase contract
with a customer made in the ordinary course of business consistent with past
practices under which

 15

KEN-KEV, Inc. or KenkevII is obligated to deliver less
than $500.00  in goods and/or services in
each transaction or series of related transactions; and

(iii)                          each purchase commitment made
in the ordinary course of business at prevailing prices, consistent with past
practices, that is not in excess of $1000.00 in each transaction or series of
related transactions.

(b)                                 All
Contracts and Commitments are in full force and effect without amendment
(unless the amendments are clearly noted), and Buyer is and shall be entitled
to all benefits from all Contracts and Commitments.

(c)                                  True
and complete copies of all Contracts and Commitments have been delivered to
Buyer. All Contracts and Commitments are the result of bona fide, arm’s-length
transactions and are legal, valid, and binding obligations of the parties to
them enforceable in accordance with their respective terms, subject to laws
generally governing bankruptcy and the enforcement of creditors’ rights.

(d)                                 Except
as set forth in attached Schedule 8.17, no default or alleged default exists on
the part of KEN-KEV, Inc. or KenkevII nor, to the Best Knowledge of Seller
Equityholder, on the part of any other person or entity, under any Contract or
Commitment.

8.18                           Title
to Assets. Except as set forth in attached Schedule 8.18, KEN-KEV, Inc. or
KenkevII is the sole and absolute owner, lessee or license holder of all the
assets used in the operation of the Business and/or purported to be owned by
KEN-KEV, Inc. and KenkevII, and has good and marketable title to all such
assets, free from all Encumbrances (or, in the case of its interest as lessee,
a good leasehold interest, and in the case of licenses, is the license holder).
Schedule 8.18 lists or describes all property used in the conduct of the
Business and/or situated on the Premises that is owned by or an interest in
which is claimed by any other person or entity (whether a customer, supplier,
or other person or entity) for which KEN-KEV, Inc. or KenkevII is responsible,
together with copies of all related agreements. All such property is situated
on the Premises and is in such condition that, upon return to its owner,
KEN-KEV, Inc. KenkevII will not be liable in any amount to the owner.

8.19                           Condition
of Assets. Each item situated at the Premises and listed on the respective
balance sheet is being sold as is, where is, with all defects. Between the date
of this Agreement and Closing, Seller agrees to reasonably maintain all
equipment and assets as may be need to reasonably operate the business.
Furthermore, Seller agrees not to commit waste.

8.20                           Receivables.
KEN-KEV, Inc. and KenkevII, Inc. are entitled to all accounts receivable
relating to activity prior to the Closing Date and Buyer shall assist in
collecting any such amounts and Buyer shall promptly forward to Seller any such

 16
 

amounts that Buyer receives on or after the Closing Date, which amounts
shall be applied to the closing adjustments and any net amount distributed to
Equityholder.

8.21                           Sufficiency
of Assets. The assets reflected in the Financial Statements, constitute and
will constitute all of the property and assets, real, personal, and mixed,
tangible and intangible (including, without limitation, contract rights), that
are used or useful in, or are necessary for the conduct of, the Business in
accordance with present practices, other than (i) those permits and licenses
that Buyer will be obtaining as a condition to its obligation to close, (ii)
assets used or consumed in the ordinary course of business prior to the Closing
date,  and (iii) the Excluded Assets that
are referred to above and that Seller shall be entitled to retain (including
cash and receivables), and such assets are sufficient for Buyer to continue to
operate the Business in the ordinary course of business after the Closing Date.
By closing this agreement, the Buyer shall be deemed to be satisfied with the
assets of the Business.

8.22                           Taxes.[To
be reviewed by Seller’s accountants.]

(a)                                  For
the purposes of this Agreement, Tax or Taxes shall mean all federal, state, county, local, foreign,
and other taxes (including, without limitation, income taxes; premium taxes;
single-business taxes; excise taxes; sales taxes; use taxes; value-added taxes;
gross receipts taxes; franchise taxes; ad valorem taxes; real estate taxes;
severance taxes; capital levy taxes; transfer taxes; stamp taxes; employment,
unemployment, and payroll-related taxes; withholding taxes; and governmental
charges and assessments), and include interest, additions to tax, and any
penalties. For purposes of this Agreement, (i) a Tax is “imposed”
upon a person if such person is responsible under applicable law for the
payment, withholding, or collection of such Tax; (ii)
a person is “subject to” a Tax if such Tax is imposed on either (A) such person
or (B) a third party based on the activities or assets of such person; and (iii) a Tax is “of” a person if either clause (i) or (ii) of this
Section 8.22(a) pertains to such Tax and such person.

(b)                                 For
purposes of this Agreement, Tax Return
shall mean any return (including any information return), report, statement,
schedule, notice, form, or other document or information filed with or
submitted to, or required to be filed with or submitted to, any governmental
authority in connection with the determination, assessment, collection, or payment
of any Tax.

(c)                                  Except
as otherwise disclosed on Schedule 8.22, KEN-KEV, Inc. and KenkevII, Inc. has
filed on a timely basis (within any applicable extension periods) all Tax
Returns it is required to file under any federal, state, local, or foreign law
and has paid or established an adequate reserve with respect to all Taxes
imposed on said corporation for the periods covered by such returns. No claim
has ever been made by a governmental authority in a jurisdiction where Kenkev
does not file Tax Returns that it is or may be

 17
 

subject to Taxes imposed by that jurisdiction. No
agreements have been made by or on behalf of Kenkev for any waiver or for the
extension of any statute of limitations governing the time of assessment or
collection of any Taxes. Kenkev and its officers have received no notice of any
pending or threatened audit by the IRS or any state, local, or foreign agency
related to Kenkev’s Tax Returns or Tax liability for any period, and no claim
for assessment or collection of Taxes has been asserted against Kenkev. There
are no federal, state, or local Tax Encumbrances outstanding against any of
Kenkev’s assets. There are no outstanding powers of attorney issued by Kenkev
with respect to any matter relating to Taxes.

(d)                                 Kenkev
has withheld and paid all Taxes required to have been withheld and paid in
connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other person or entity. KenkevII has, in accordance
with Treasury Regulation Section 1.6662-3(c), “adequately disclosed” on its Tax
Returns all positions taken therein that could give rise to a substantial understatement of federal income Tax within the
meaning of IRC 6662, or, as applicable, such disclosure would meet the
conditions of any provision analogous or similar to Treasury Regulation Section
1.6662-3(c) contained in any state, local, or foreign tax law to which it is
asserted that KenkevII is or could be subject. There are no Tax rulings or
requests for rulings relating to KenkevII that could affect KenkevII’s Tax
liability for any period (or portion of a period) after the Closing Date.

(e)                                  Seller  will as of the Closing Date provide to Buyer
its correct taxpayer identification number on executed IRS Form W-9. Buyer is
not required to withhold any Taxes on any payments under this Agreement
including, without limitation, any withholding pursuant to IRC 3406 or Chapter
3 of the Code. Seller and Seller  is a United States person (as defined in IRC 7701(a)(30)).

(f)                                    If
Seller is an S corporation, Seller is now and has been at all times since           
N.A.            a
validly electing S corporation within the meaning of IRC 1361 and 1362 and will
be a validly electing S corporation up to and including the Closing Date.

 (g)                              No
property of Kenkev is tax-exempt use property
within the meaning of IRC 168(h) or tax-exempt bond financed
property within the meaning of IRC 168(g). Kenkev has not made, nor
is obligated to make, any payment nor is a party to any agreement that could
obligate it to make any payments that, under IRC 280G or IRC 162(m), were or
will not be deductible for Tax purposes.

(h)                                 Kenkev
is not a United States real property holding corporation
within the meaning of IRC 897.

 18
 

(i)                                     Kenkev
is not subject to any Tax sharing or similar agreement or arrangement (whether
or not written) pursuant to which it will have any obligation to make any
payments after the Closing Date.

(j)                                     Kenkev
will not be required to include any item of income or gain in, or to exclude
any item of deduction or loss from, taxable income for any taxable period (or
portion thereof) ending after the Closing Date as a result of any (i) change in method of accounting for a taxable period
ending on or before the Closing Date under IRC 481(c), or any corresponding or
similar provision of state, local, or foreign Tax law; (ii)
closing agreement as described in IRC
7121, or any corresponding or similar provision of state, local, or foreign Tax
law, executed on or before the Closing Date; or (iii)
installment sale made on or before the Closing Date.

(k)                               Any adjustment of Tax of
Kenkev made by the IRS in any examination that is required to be reported to
the appropriate state, local, or foreign taxing authorities has been reported,
and any additional Taxes due with respect thereto have been paid, to the best
knowledge of Seller.

(l)                                     (i)
Kenkev has not, within the last six years, been a member of an affiliated group (as defined in IRC 1504(a)) filing a
consolidated United States federal income Tax Return, or similar Tax Return under
the provisions of state, local or foreign law; and (ii) no claim has been
asserted against KenkevII based upon liability for the Taxes of another person
(A) under Treasury Regulation Section 1.1502-6 or any corresponding or similar
provisions of state, local, or foreign law, (B) as a transferee or successor,
or (C) by contract or otherwise. KenkevII does not have a subsidiary investment
that could reasonably be expected to be subject to the loss disallowance rules
of Temporary Treasury Regulation Section 1.337(d)-2T.

8.23                           Litigation.
There are no claims, disputes, actions, suits, proceedings, or investigations
pending or, to the Best Knowledge of the Seller Equityholder, threatened
against or affecting KenkevII, its business, or its assets.

8.24                           INTENTIONALLY
DELETED.

8.25                           Environmental
Matters.

INTENTIONALLY DELETED

8.26                           Compliance
with Laws. At all times before the Closing Date, KEN-KEV, Inc. and KenkevII
have, to the best of its knowledge, 
complied with all laws, orders, regulations, rules, decrees, and
ordinances affecting to any extent or in any manner any aspects of the Business
or its assets or, to the extent an issue has been raised, KenkevII has
responded.

8.27                           Suppliers
and Customers.

(a)                                  A
complete and accurate list of all suppliers or vendors of products or services
to Kenkev in connection with the Business (other than legal or

 19
 

accounting services) aggregating more than $10,000.00
(at cost) annually during Kenkev’s last fiscal year, and the address of each
supplier or vendor and the amount sold to Kenkev during that period, is set
forth in Schedule 8.27. The names of any suppliers of goods or services with
respect to which practical alternative sources of supply are not available on
comparable terms and conditions are separately listed in Schedule 8.27.

(b)                                 KenkevII
does not keep records of its customers.

(c)                                  Seller
Equityholder has no information that might reasonably indicate that any
supplier of Kenkev intends to cease purchasing from, selling to, or dealing
with Kenkev. No information has been brought to the attention of  Seller Equityholder that might reasonably
lead any of him to believe that any supplier intends to alter, in any material
respect, the amount of its sales or the extent of its dealings with Kenkev, or
would alter in any material respect its sales to, or dealings with Kenkev, in
the event the transactions contemplated by this Agreement are consummated.

8.28                           No
Brokers. Neither Seller nor Seller Equityholder have engaged, or are
responsible for any payment to, any finder, broker, or consultant in connection
with the transactions contemplated by this Agreement, except for Frank Bain,
who will be compensated by Buyer, pursuant to an agreement exclusive between
Buyer and Mr. Bain that is acceptable to Mr. Bain, as verified by a letter from
Mr. Bain.

8.29                           Insider
Transactions. Seller has furnished Buyer a complete and accurate list and a
brief description of all contracts or other transactions involving Kenkev in
which any officer,  director,
employee, or shareholder of Kenkev or any member of their immediate families;
or any affiliate has any interest is set forth on Schedule 8.29.

8.30                           Bank
Accounts. The Buyer shall establish a new separate bank account in the name
of Kenkev. However,  Seller shall  close its bank accounts for Ken-Kev, Inc. and
Kenkev within 60 days after Closing. 8.31 Intellectual Property.

Schedule 8.31 lists or briefly describes all of Kenkev’s material
Intellectual Property (other than know-how, trade secrets, and confidential and
proprietary processes and technology) that Kenkev directly or indirectly owns,
licenses, uses, requires for use, or controls in whole or in part, including
rights relating to the playing of music and video, and all licenses and other
agreements allowing the Kenkev to use the intellectual property of third
parties. Kenkev does not own, directly or indirectly, or use any patents,
copyrights, trademarks, or service marks in the Business, except as disclosed
on Schedule 8.31. Except as set forth in Schedule 8.31, Kenkev is the sole and
exclusive owner of the Intellectual Property, free and clear of all
Encumbrances. Kenkev’s Intellectual Property, or its use by Kenkev or any
activity of Kenkev in the conduct of the Business, does not infringe on any
other person’s intellectual property, and, to the Best Knowledge of the Seller
Equityholder, no activity of any other person infringes on any of the
Intellectual Property. Kenkev has been and is now conducting the

 20
 

Business in a manner that has not been and is not now in violation of
any other person’s intellectual property, and Kenkev does not require a license
or other proprietary right to so operate the Business. For the purposes of this
Agreement, Intellectual Property means all
intellectual property and intellectual property rights owned or licensed by
Kenkev including, but not limited to, all inventions, discoveries,
improvements, designs, prototypes, trade secrets, manufacturing and engineering
drawings, process sheets, specifications, bills of material, patents, patent
applications, registered and unregistered copyrights and copyright rights in
both published and unpublished works, registered and unregistered trademarks,
registered and unregistered trade names, formulae and secret and confidential
processes, know-how, technology, process technology, customer lists, computer
software, data, databases and other industrial property (whether patentable or
unpatentable), all rights to sue for infringement of any of the foregoing, all
renewals or extensions of any of the foregoing, and all goodwill of Kenkev
relating to any of the foregoing.

8.32                           Insurance.
All insurance policies covering Kenkev’s property or providing for business
interruption, personal, and other insurance are described in Schedule 8.32
(which specifies the insurer, policy number, type of insurance, and any pending
claims). Such insurance is in amounts Kenkev deems sufficient with respect to
its assets, properties, business, operations, products, and services as the
same are presently owned or conducted, and all such policies are in full force
and effect and the premiums have been paid. There are no claims, actions,
suits, or proceedings arising out of or based on any of these insurance
policies, and no basis for any such claim, action, suit, or proceeding exists.
Kenkev is not in default with respect to any provisions contained in any such
insurance policies and has not failed to give any notice or present any claim
under any such insurance policy in due and timely fashion.

8.33                           Materiality.
No statement in this Agreement, in any schedule to this Agreement, or in any
certificate delivered to Buyer pursuant to this Agreement fails or will fail to
contain any material fact necessary to make the statement(s) not misleading.

9.                                       Buyer’s
Representations and Warranties. Each of VCG Holding Corporation and Buyer
represents and warrants to Seller Equityholders as of the date of this
Agreement and the Closing Date that:

9.1                                 Organization
and Standing. Buyer is a corporation  which will be
formed and organized and validly existing under the laws of the State of Maine,
and Buyer will have all the requisite power and authority to own its properties
and to perform its obligations hereunder.

9.2                                 Authorization.
VCG Holding Corporation  has taken, and
Buyer will have taken on or before the Closing, all necessary action (a) to
approve the execution, delivery, and performance of this Agreement and each of
the Related Agreements and (b) to consummate the transactions contemplated
under these agreements. VCG Holding Corporation 
has duly executed and delivered this Agreement. This

 21
 

Agreement is, and each of the Related Agreements when executed by the
parties will be, the legal, valid, and binding obligations of VCG Holding
Corporation and Buyer, enforceable against VCG Holding Corporation  and Buyer in accordance with their respective
terms, except as such enforcement may be limited by bankruptcy, insolvency,
moratorium, or similar laws relating to the enforcement of creditors’ rights
and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding at law or in equity).

9.3                                 Existing
Agreements and Governmental Approvals.

(a)                                  Except
as set forth on Schedule 8.6, the execution, delivery, and performance of this
Agreement and the consummation of the transactions contemplated by it (i) do not and will not violate any provisions of law
applicable to VCG Holding Corporation or Buyer; (ii)
do not and will not conflict with, result in the breach or termination of any
provision of, or constitute a default under (in each case whether with or
without the giving of notice or the lapse of time, or both) VCG Holding
Corporation’s  or Buyer’s Articles of
Incorporation or Bylaws or any indenture, mortgage, lease, deed of trust, or
other instrument, contract, or agreement or any order, judgment, arbitration
award, or decree to which VCG Holding Corporation or Buyer is a party or by
which either of them or any of their respective assets and properties are
bound; and (iii) do not and will not result in the
creation of any Encumbrance on any of VCG Holding Corporation’s or the Buyer’s
properties, assets, or business.

(b)                                 Except
as set forth on Schedule 8.6, no approval, authority, or consent of, or filing
by VCG Holding Corporation or Buyer with, or notification to, any federal,
state, or local court, authority, or governmental or regulatory body or agency
or any other corporation, limited liability company, partnership, individual,
or other entity is necessary to authorize VCG Holding Corporation or Buyer’s
execution and delivery of this Agreement or the consummation of the
transactions contemplated by this Agreement.

9.4                                 Investment
Intent. Buyer is acquiring the Purchased Equity Interests for its own
account, for investment, and without any present intention to resell the
Purchased Equity Interests.

10.                                 Indemnification;
Limitation on Liability.

10.1                           Indemnification
by Seller. Seller represents to Buyer that, to the best of Seller’s
knowledge,  at all times relevant to this
agreement; the Seller has maintained at least $1,000,000.00 in liability insurance,
including liquor liability insurance. 
Seller Equityholder shall pay, reimburse, indemnify, and hold harmless
Buyer, KEN-KEV, Inc. and KenkevII and their respective directors, officers,
shareholders, successors, and permitted assigns from and against any and all
claims, suits, actions, assessments, losses, diminution in value, liabilities,
fines,

 22
 

penalties, damages (compensatory, consequential, direct, indirect, and
other), costs, and expenses (including reasonable legal fees) (“Losses”), and
including any Losses that arise in the absence of a third-party claim, to the
extent of a total aggregate of $500,000.00 beyond the amount of insurance. In
addition, Seller and Seller Equity holder agree to indemnify Buyer for (a) Any
inaccuracy in any representation or breach of any warranty of the Seller
Equityholders contained in this Agreement (whether at the date of this
Agreement or the Closing Date), and (b) Seller Equityholders’ failure to
perform or observe in full, or to have performed or observed in full, any
covenant, agreement, or condition to be performed or observed by the Seller
Equityholders under this Agreement or any Related Agreement.

10.2                           Limitation
on Liability.  Notwithstanding
anything in this Agreement to the contrary, Selling Shareholder shall have no
personal liability for any matter arising under or relating to this Agreement,
beyond the amount of $500,000.00 for a period of three years, which Seller
Shareholder may permit to be offset, in whole or in part against Rent to the
Landlord.  Seller and Selling Shareholder
acknowledge that they may have liability under one or more of the Related
Agreements, to the extent set forth therein, and this limitation applies only
to this Agreement.

10.3                           Waiver
of Claims Against Seller. Each Seller Equityholder irrevocably waives and
agrees that Seller Equityholders will make no claim against Seller of any kind
or character, whether by way of subrogation, indemnity, contribution, breach of
contract, or any other theory regarding any claim made by Buyer, Seller, or any
other person under Section 10 or otherwise, and each Seller Equityholder
irrevocably releases and discharges Seller from any such claim.

10.4                           Indemnification
by Buyer. Buyer shall pay, reimburse, indemnify, and hold harmless Seller
and Seller Equityholder and their respective directors, officers, shareholders,
heirs, successors, and permitted assigns from and against any and all Losses,
and including any Losses that arise in the absence of a third-party claim, in
connection with or resulting from any claim arising from or relating to Buyer’s
operation of the Seller or which arises from a claim that occurred after the
Closing Date. In addition, Buyer agrees to indemnify Seller and Seller
Equityholder Buyer from (a) Any inaccuracy in any representation or breach of
any warranty of the Buyer contained in this Agreement (whether at the date of
this Agreement or the Closing Date), and (b) Buyer’s failure to perform or
observe in full, or to have performed or observed in full, any covenant,
agreement, or condition to be performed or observed by the Buyer under this
Agreement or any Related Agreement.

11.1                           Indemnification
for Taxes.

(a)           Seller
and Seller Equityholder agree to pay, reimburse, indemnify, and hold harmless
Buyer and its directors, officers, shareholders, successors, and permitted
assigns, from and against any and all Taxes imposed upon Kenkev payable with
respect to, and any and all other Losses arising out of or in any manner
incident, relating, or attributable to Taxes imposed upon Kenkev

 23
 

payable with respect to, or Tax Returns required to be filed by Kenkev
with respect to, income of Kenkev for (i) any taxable
year (or other applicable reporting period) (a “Reporting Period”) of Kenkev
ending on or before the Closing Date (“Pre-closing Tax Period”) other than
Losses arising from transactions occurring after the Closing, and (ii) any Reporting Period of Kenkev that begins before the
Closing Date and that ends after the Closing Date (a “Straddle Period”), except
that with respect to any Straddle Period, Seller Equityholder shall be
responsible for the payment of such Taxes only to the extent that they relate
to the portion of such Straddle Period ending on the Closing Date.  In addition, Seller shall be responsible up
to the aggregate amount set forth in Paragraph 10.1 above, for any amounts
which become due for the period of time that the Seller operated the business
as a result of any recharacterization of entertainers at the business as
employees.

(b)           Buyer and
VCG Holding Corporation agrees to pay, reimburse, indemnify, and hold harmless
Seller  and its directors, officers,
shareholders, successors, and permitted assigns (including any in their
capacities as officers or directors of Kenkev prior to the Closing) from and
against any and all Taxes imposed upon Kenkev payable with respect to, and any
and all other Losses arising out of or in any manner incident, relating, or
attributable to (i) Taxes imposed upon Kenkev
payable with respect to, or Tax Returns required to be filed by Kenkev with
respect to, income of Kenkev for any Reporting Period of Kenkev beginning after
the Closing Date, (ii) Taxes imposed upon income of
Kenkev for the Straddle Period to the extent attributable to the portion of the
Straddle Period beginning on or after the Closing Date, and  (iii) Taxes
imposed upon Kenkev, or for which Kenkev may otherwise be liable, as a result
of transactions occurring on or after the Closing .

(c)           The
indemnities set forth in this Section 11.1 shall survive, in each case, until
the applicable statute of limitations has expired for each respective fiscal
tax year.

11.2                           Preparation
of Tax Returns. [To be reviewed by Seller’s accountants]

(a)                                  Seller
and Seller Shareholder shall prepare or cause to be prepared all Tax Returns
for income of Kenkev for any Pre-closing Tax Period of Kenkev (including
amended Tax Returns) (“Pre-closing Period Returns”). Seller shall timely file,
or cause to be timely filed, all such Pre-closing Period Returns that are due
on or before the Closing Date (giving effect to any extensions thereto). Seller
shall timely pay, or cause to be paid, all Taxes imposed upon Seller with
respect to such Pre-closing Period Returns.

(b)                                 Seller
shall prepare or cause to be prepared and provide Buyer with Pre-closing Period
Returns that are due after the Closing Date (giving effect to any extensions
thereto). Promptly upon the finalization of such Tax Returns and in any case
not later than 60 30 days before the last date for

 24
 

timely filing of such Tax Returns (giving effect to
any valid extensions thereof), Seller shall deliver to Buyer (1) an original of
such Tax Return and (2) a check payable to the appropriate taxing authority in
the amount of any Taxes payable by Kenkev shown as due thereon in accordance
with Article 7.5 hereinabove. Buyer shall cause such Pre-closing Period Returns
to be executed by the appropriate officer of Seller and shall file such
returns, together with the appropriate payment, if any, on a timely basis.[Can
we avoid this by doing a stub period filing?]

(c)                                  All
Tax Returns that Seller is required to prepare or cause to be prepared in
accordance with this Section 11.2 shall be prepared in a manner consistent with
past practice, and on such Tax Returns no positions shall be taken, elections
made, or method adopted that is inconsistent with positions taken, elections
made, or methods used in preparing and filing similar Tax Returns in prior
periods (including, but not limited to, positions that would have the effect of
deferring income to periods for which Buyer is liable or accelerating
deductions to period for which Kenkev is liable).

(d)                                 Buyer
shall prepare or cause to be prepared all Tax Returns of Kenkev for any and all
Reporting Periods ending on and after the Closing Date. Buyer shall timely
file, or cause to be timely filed, all such Tax Returns and Buyer shall timely
pay, or cause to be paid, all Taxes imposed upon with respect to such Tax
Returns.

(e)                                  Buyer
shall prepare, or cause to be prepared, all Tax Returns of Kenkev for any and
all Straddle Periods.

All Tax Returns for a Straddle Period shall be
submitted to Seller at least 45 days before the last date for timely filing of
such Tax Return (giving effect to any valid extensions thereof), accompanied by
a statement calculating in reasonable detail and in accordance with Section
11.2(f) any payments required of Seller with respect to the amounts payable by
Kenkev shown as due on such Tax Returns after giving effect to any Tax payments
made before the Closing Date. The amount of any Tax payment required of Seller
under this Section 11.2(e) shall be paid by Seller on or before the last date
for timely filing such Tax Return (including any valid extensions thereof).

(f)                                    With
respect to any Straddle Period, Seller shall be responsible only for such Taxes
imposed upon income of Kenkev as are allocable to the portion of the Straddle
Period ending on the day before the Closing Date. Buyer shall be responsible
for, and shall timely pay, or cause to be paid, all other Taxes with respect to
all Straddle Periods. The Tax liabilities for each Straddle Period for Kenkev
shall, except as otherwise required by applicable law, be determined by closing
the books and records of Kenkev as of the Closing Date by treating each such
Straddle Period as if it were a separate Reporting Period, and by employing
accounting methods that are

 25
 

consistent with those employed in preparing the Tax
Returns for Kenkev in Pre-closing Period Returns and that do not have the
effect of distorting income, receipts, or expenses (taking into account the
transactions contemplated by this Agreement), except that (a) transactions
occurring on the Closing Date and after the Closing shall be allocated to the
taxable year or period that is deemed to begin at the beginning of the day
following the Closing Date, (b) exemptions, allowances, or deductions that are
calculated on an annual basis (including depreciation and amortization
deductions) shall be allocated between the period ending on the Closing Date
and the period after the Closing Date in proportion to the number of days in
each such period, and (c) in the case of any Tax imposed upon the ownership or
holding of real or personal property, such Taxes shall be prorated based on the
percentage of the actual period to which such Taxes relate that precedes the
Closing Date.

(g)                                 All
Tax Returns that Buyer is required to prepare or cause to be prepared in
accordance with this Section 11.2 shall be prepared in a manner consistent with
past practice and, on such Tax Returns, no positions shall be taken, elections
made, or method adopted that is inconsistent with positions taken, elections
made, or methods used in preparing and filing similar Tax Returns in prior
periods (including, but not limited to, positions that would have the effect of
accelerating income to periods for which Seller is liable or deferring
deductions to period for which Buyer is liable).

(h)                                 Seller
shall be entitled to any credits, rebates, or refunds of Taxes of Kenkev
payable with respect to any Pre-closing Tax Period of Kenkev and, with respect
to any Straddle Period, the portion of the Straddle Period ending on and
including the Closing Date. Buyer shall cause the amount of the credits,
rebates, or refunds of Taxes to which Seller is entitled under this Section
11.2(h), but which were received by or credited to Kenkev after the Closing
Date, to be paid to Seller within 10 Business Days following such receipt or
crediting. Buyer shall send written notice to Seller of any such credit,
rebate, or refund as soon as possible after Buyer becomes aware of them.

(i)                                     Buyer
and Seller shall cooperate with one another with respect to Tax matters as more
fully set forth in this Section 11. Buyer and Seller shall cooperate fully as
and to the extent reasonably requested by the other party, at the other party’s
expense, in connection with the filing of Tax Returns pursuant to this Section
11 and any audit, litigation, or other proceeding with respect to Taxes. Such
cooperation shall include the retention and (upon the other party’s request and
at the other party’s expense)the provision of records and information that are
reasonably relevant to any such Tax Return, audit, litigation, or other
proceeding and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided

 26
 

hereunder. Buyer and Seller agree (i)
to retain all books and records with respect to Tax matters pertinent to Kenkev
relating to any taxable period beginning before the Closing Date until the
expiration of the statute of limitations (and, to the extent notified by Buyer
or Seller, any extensions thereof) of the respective taxable periods, and to
abide by all record retention agreements entered into with any taxing
authority, and (ii) to give the other party
reasonable written notice before transferring, destroying, or discarding any
such books and records and, if the other party so requests, Buyer or Seller ,
as the case may be, shall allow the other party to take possession of such
books and records to the extent they would otherwise be destroyed or discarded.

11.3                           Certificate
of Nonforeign Status. Each of the Seller and Seller Equityholder shall
deliver to Buyer at the Closing a certificate of nonforeign status (the “Certificate
of Nonforeign Status”) in accordance with Treasury Regulation Section
1.1445-2(b)(2).

12.                                 Expenses.
Each of the parties shall pay all of the costs that it incurs incident to the
preparation, execution, and delivery of this Agreement and the performance of
any related obligations, whether or not the transactions contemplated by this
Agreement shall be consummated, and Seller Equityholders shall pay all of the
cost and expenses incurred by Seller.

13.                                 Termination.

13.1                           This
Agreement may be terminated at any time before the Closing Date as follows:

(a)                                  By
Buyer and Seller in a written instrument.

(b)                                 By
Buyer or Seller if the Closing does not occur on the Closing Date or within a
reasonable time thereafter.

(c)                                  By
Buyer or Seller if there shall have been a material breach of any of the
representations or warranties set forth in this Agreement on the part of the
other, and this breach by its nature cannot be cured before the Closing.

(d)                                 By
Buyer or Seller if there has been a breach of any of the covenants or
agreements set forth in this Agreement on the part of the other, and this
breach is not cured within 10 Business Days after the breaching party or
parties receive written notice of the breach from the other party.

13.2                           If
terminated as provided in Section 13.1, this Agreement shall forthwith become
void and have no effect, except for Sections 13.3 and 14, and except that no
party shall be relieved or released from any liabilities or damages arising out
of the party’s breach of any provision of this Agreement.

13.3                           Buyer
and VCG Holding Corporation, jointly and severally, on the one hand, and the
Seller and Seller Equityholder, jointly and severally, on the other, agree that
if this Agreement is terminated, each party will not (and, in the case of
Seller, shall cause KenkevII to not), during the one-year period following the
termination,

 27
 

directly or indirectly solicit any employee of the other party to leave
the employment of the other party.

14.                                 Miscellaneous
Provisions.

14.1                           Representations
and Warranties. All of  the
representations and warranties made by the Buyer and Seller pursuant to this
Agreement shall survive the consummation of the transactions contemplated by
this Agreement, except for those specifically terminated at closing by this
Agreement.

14.2                           Notices.
All notices, demands, and requests required or permitted to be given under the
provisions of this Agreement shall be in writing and shall be deemed given (a)
when personally delivered or sent by facsimile transmission to the party to be
given the notice or other communication or (b) on the business day following
the day such notice or other communication is sent by overnight courier to the
following:

if to Seller Equityholders:

Mr. Ken Wood

St. Croix, USVI

With a Copy to:

 

Mr. Harry T. Heizer, Esq.

6300 St. Andrews Road,
Suite C

Columbia, South Carolina
29212

Facsimile: (803) 750-6457

if to Buyer:

 

Troy Lowrie

VCG Holding Corp.

390 Union St., Suite 540

Lakewood, CO  80228

Facsimile: (303) 922-0746

and

Michael L. Ocello

VCG Holding Corp.

1401 Mississippi Avenue,
#10

Sauget, IL 62201

Facsimile: (681) 271-8384

 28
 

With a Copy to

Allan S. Rubin, Esq.

Draper, Rubin &
Shulman, P.L.C.

29800 Telegraph Road

Southfield, Michigan
48034

Facsimile: 248-358-9729

or to such other address or facsimile number that the parties may
designate in writing.

14.3                           Assignment.
Neither Seller Equityholder nor Seller, on one hand,  nor VCG Holding Corporation or Buyer, on the
other, shall assign this Agreement, or any interest in it, without the prior
written consent of the other, except that VCG Holding Corporation may assign any
or all of its rights to any wholly owned subsidiary of VCG Holding Corporation,
without Seller’s or Seller Equityholder’s consent. In no event shall consent be
unreasonably withheld.

14.4                           Parties
in Interest and Expenses. This Agreement shall inure to the benefit of, and
be binding on, the named parties and their respective successors and permitted
assigns, but not any other person or entity. Each party to this agreement shall
be responsible for there own costs, expenses, and professional fees relating to
this agreement.

14.5                           Choice
of Law. This Agreement shall be governed, construed, and enforced in
accordance with the laws of the State of Maine.

14.6                           Counterparts/Fax
Signatures. This Agreement may be signed in any number of counterparts with
the same effect as if the signature on each counterpart were on the same
instrument. Fax signatures shall have the same force and effect as originals.

14.7                           Entire
Agreement. This Agreement and all related documents, schedules, exhibits,
or certificates represent the entire understanding and agreement between the
parties with respect to the subject matter and supersede all prior agreements
or negotiations between the parties. This Agreement may be amended,
supplemented, or changed only by an agreement in writing that makes specific
reference to this Agreement or the agreement delivered pursuant to it, and must
be signed by the party against whom enforcement of any such amendment,
supplement, or modification is sought. The terms of the Letter Agreement dated
June 9, 2007 and attached hereto as Schedule 14.7
are incorporated herein. To the extent that any provision of the Letter
Agreement contradicts any provision of this Agreement, then this Agreement
shall control.

14.8                        Buyer and Seller agree that this Agreement
memorializes their binding agreement and intent, as set forth in the Letter of
Intent dated July 9, 2007 as “Schedule 14.7”. 
However, both Buyer and Seller acknowledge and agree that there may be
need for minor revisions to minor terms of the Agreement.  Buyer and Seller agree that they will in good
faith cooperate with each other to modify or amend this Agreement as may be
necessary to accomplish the binding 
intent of the parties.  Any change
that the Buyer or Seller might request shall be approved by Buyer and Seller,
acting in good faith, prior to closing. 
In the event the Buyer and Seller are unable to agree and the requested
change is not a material item or

 29
 

material issue, the closing shall be
completed on the closing date and the issue shall be resolved by arbitration in
accordance with the laws of the State of Maine.

The parties have
executed this Agreement on the date set forth on the first page of this
Agreement.

	
   

  	
  KENKEV, INC.

  
	
   

  	
   

  
	
   

  	
  /s/ 

  	
    Gregory
  Kenwood Gaines

  	
   

  
	
   

  	
   

  	
  By: Gregory Kenwood
  Gaines

  
	
   

  	
   

  	
  Its: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  K & R
  PROPERTIES, INC.

  
	
   

  	
   

  
	
   

  	
  /s/ 

  	
    Gregory
  Kenwood Gaines

  	
   

  
	
   

  	
  By: Gregory
  Kenwood Gaines

  
	
   

  	
  Its: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER
  EQUITYHOLDER

  
	
   

  	
   

  
	
   

  	
  /s/ 

  	
  Gregory Kenwood
  Gaines

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BUYER: VCG
  HOLDING 

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /s/ Troy Lowrie

  	
   

  
	
   

  	
  Its: 

  	
       CEO

  	
   

  
					

 

 30

EXHIBIT
2.3b

Pre-Paid
Items -NONE

(To be
supplied by Seller Equityholders)

 31
 

EXHIBIT
2.4

Purchase
Price Allocation/Payment

 32
 

 

	
  PAYEE

  	
   

  	
  AMOUNT

  	
   

  
	
  Gregory Kenwood Gaines \ Seller
  Equityholder

  	
   

  	
  $

  	
  4,950,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Alliance Management Partners,
  LLC KW Division

  	
   

  	
  500,000

  	
   

  
					

 

 33

EXHIBIT
2.8

BALANCE
SHEET AND PHYSICAL INVENTORY

KENKEV,
INC.

INCOME
STATEMENT

STATEMENT OF ASSETS AND LIABILITIES ENDED

	
  SALES

  	
   

  	
   

  	
   

  
	
  SALES BEVERAGES

  	
   

  	
  $

  	
  2,085,814.64

  	
   

  
	
  ADMISSIONS

  	
   

  	
  156,501.00

  	
   

  
	
  OTHER INCOME

  	
   

  	
  615,953.64

  	
   

  
	
  TOTAL
  SALES

  	
   

  	
  2,858,269.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  COST OF GOODS SOLD

  	
   

  	
   

  	
   

  
	
  PURCHASES –
  BEVERAGES

  	
   

  	
  542,566.69

  	
   

  
	
  PURCHASES –
  SUPPLIES

  	
   

  	
  95,498.46

  	
   

  
	
  PURCHASES –
  FASHION

  	
   

  	
  17,845.84

  	
   

  
	
  TOTAL
  COST OF GOODS SOLD

  	
   

  	
  855,910.99

  	
   

  
	
  GROSS
  PROFIT

  	
   

  	
  2,202,358.29

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OPERATING EXPENSES

  	
   

  	
   

  	
   

  
	
  ADVERTISING

  	
   

  	
  147,633.00

  	
   

  
	
  ADMINISTRATIVE
  SERVICES

  	
   

  	
  1,064,049.82

  	
   

  
	
  CREDIT CARDS

  	
   

  	
  28,385.79

  	
   

  
	
  DUES AND
  SUBSCRIPTIONS

  	
   

  	
  458.67

  	
   

  
	
  BANK CHARGES

  	
   

  	
  51,799.38

  	
   

  
	
  CLEANING

  	
   

  	
  15,816.21

  	
   

  
	
  COMMISSIONS

  	
   

  	
  10,765.00

  	
   

  
	
  EQUIPMENT RENTAL

  	
   

  	
  1,821.45

  	
   

  
	
  INSURANCE

  	
   

  	
  23,923.26

  	
   

  
	
  HEALTH INSURANCE

  	
   

  	
  (2,554.04

  	
  )

  
	
  LAWN CARE

  	
   

  	
  100.00

  	
   

  
	
  LICENSES &
  PERMITS

  	
   

  	
  1,584.34

  	
   

  
	
  MUSIC &
  ENTERTAINERS

  	
   

  	
  4,590.00

  	
   

  
	
  OFFICE EXPENSES

  	
   

  	
  2,333.75

  	
   

  
	
  OUTSIDE SERVICES

  	
   

  	
  10,132.95

  	
   

  
	
  PAYROLL EXPENSE

  	
   

  	
  342,892.68

  	
   

  
	
  LAWN SERVICE

  	
   

  	
  2,500.00

  	
   

  
	
  PAYROLL TAXES

  	
   

  	
  98,444.94

  	
   

  
	
  PRINTING

  	
   

  	
  3,112.22

  	
   

  
	
  PROFESSIONAL
  FEES

  	
   

  	
  61,762.65

  	
   

  
	
  RENT

  	
   

  	
  158,909.19

  	
   

  
	
  SUPPLIES

  	
   

  	
  22,938.74

  	
   

  
	
  REPAIRS &
  MAINTENANCE

  	
   

  	
  26,354.66

  	
   

  
	
  SECURITY

  	
   

  	
  454.80

  	
   

  
	
  TAXES – LOCAL

  	
   

  	
  6,070.30

  	
   

  
	
  TAXES – STATE

  	
   

  	
  25.00

  	
   

  
	
  TELEPHONE

  	
   

  	
  3,493.79

  	
   

  
	
  TRASH REMOVAL

  	
   

  	
  3,257.29

  	
   

  
	
  TRAVEL

  	
   

  	
  600.00

  	
   

  
	
  UNIFORMS

  	
   

  	
  (2,119.00

  	
  )

  
	
  UTILITIES – GAS
  & ELECTRIC

  	
   

  	
  40,825.68

  	
   

  
	
  UTILITIES –
  WATER

  	
   

  	
  17,787.36

  	
   

  
	
  UTILITIES –
  CABLE

  	
   

  	
  1,597.42

  	
   

  
	
  DEPRECIATION

  	
   

  	
  7,226.08

  	
   

  
	
  AMORTIZATION

  	
   

  	
  58,666.64

  	
   

  
	
  TOTAL
  OPERATING EXPENSES

  	
   

  	
  2,215,740.02

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NET INCOME (LOSS)

  	
   

  	
  $

  	
  (13,381.73

  	
  )

  

 

[PAGE STAMPED “DRAFT” AND INITIALED IN LEFT-HAND CORNER]

See Accountants’ Compilation Report

 34
 

KENKEV,
INC.

BALANCE
SHEET

AS OF AUGUST 31, 2007

LIABILITIES AND STOCKHOLDERS’ EQUITY

	
  CURRENT
  LIABILITIES

  	
   

  	
   

  	
   

  
	
  CHECKS IN EXCESS OF BANK BALANCE

  	
   

  	
  $

  	
  48,774.72

  	
   

  
	
  CHILD SUPPORT PAYABLE

  	
   

  	
  312.87

  	
   

  
	
  BANK OF AMERICA – LOC

  	
   

  	
  6,634.45

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CURRENT LIABILITIES

  	
   

  	
  55,722.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LONG-TERM
  LIABILITIES

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL LIABILITIES

  	
   

  	
  55,722.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  STOCKHOLDERS’
  EQUITY

  	
   

  	
   

  	
   

  
	
  CAPITAL STOCK

  	
   

  	
  393,151.00

  	
   

  
	
  RETAINED EARNINGS

  	
   

  	
  305,125.11

  	
   

  
	
  CURRENT INCOME

  	
   

  	
  (13,381.73

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL STOCKHOLDERS’ EQUITY

  	
   

  	
  684,894.38

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  LIABILITIES AND STOCKHOLDERS’ EQUITY

  	
   

  	
  $

  	
  740,616.42

  	
   

  

 

[PAGE STAMPED “DRAFT” AND INITIALED IN LEFT-HAND CORNER]

See Accountants’ Compilation Report

 35
 

KENKEV,
INC.

BALANCE
SHEET

AS OF AUGUST 31, 2007

ASSETS

	
  CURRENT
  ASSETS

  	
   

  	
   

  	
   

  
	
  CASH ON HAND

  	
   

  	
  $

  	
  5,000.00

  	
   

  
	
  CASH – FASHION

  	
   

  	
  344.48

  	
   

  
	
  CASH – PAYROLL

  	
   

  	
  1,397.42

  	
   

  
	
  CASH – CREDIT CARD

  	
   

  	
  24,212.70

  	
   

  
	
  EXCHANGE

  	
   

  	
  175,074.32

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CURRENT ASSETS

  	
   

  	
  206,028.92

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PREPAID
  TAXES

  	
   

  	
   

  	
   

  
	
  PREPAID TAXES – FEDERAL

  	
   

  	
  6,550.00

  	
   

  
	
  PREPAID TAXES – STATE

  	
   

  	
  3,035.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL PREPAID TAXES

  	
   

  	
  9,585.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  PROPERTY
  AND EQUIPMENT

  	
   

  	
   

  	
   

  
	
  FURNITURE & EQUIPMENT

  	
   

  	
  174,446.12

  	
   

  
	
  LEASEHOLD IMPROVEMENTS

  	
   

  	
  42,316.00

  	
   

  
	
  SIGNS

  	
   

  	
  10,393.10

  	
   

  
	
  ACCUM DEPN – FURN & EQUIP

  	
   

  	
  (169,351.16

  	
  )

  
	
  ACCUM DEPN – LEASEHOLD IMP

  	
   

  	
  (15,898.48

  	
  )

  
	
  ACCUM DEPN – SIGNS

  	
   

  	
  (10,094.44

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  NET PROPERTY AND EQUIPMENT

  	
   

  	
  31,811.14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OTHER
  ASSETS

  	
   

  	
   

  	
   

  
	
  DEPOSITS

  	
   

  	
  1,150.00

  	
   

  
	
  GOODWILL

  	
   

  	
  600,000.00

  	
   

  
	
  ACCUM AMORT – GOODWILL

  	
   

  	
  (268,666.64

  	
  )

  
	
  ACCOUNTS RECEIVABLE STOCKHOLDER

  	
   

  	
  20,000.00

  	
   

  
	
  NOTE RECEIVABLE KEN WOOD

  	
   

  	
  140,708.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   TOTAL OTHER ASSETS

  	
   

  	
  493,191.36

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  ASSETS

  	
   

  	
  $

  	
  740,616.42

  	
   

  

 

[PAGE STAMPED “DRAFT” AND INITIALED IN LEFT-HAND CORNER]

See Accountants’ Compilation Report

 36

(To be
supplied by Seller Equityholders)

EXHIBIT
3.1

NON-COMPETITION
AGREEMENT  -DONE

Confidentiality Agreement

 37
 

EXHIBIT
3.4

PROPOSED
LEASE -DONE

 38
 

SCHEDULE
5.3

DUE
DILIGENCE LIST -DONE

 39
 

SCHEDULE
8.2

KEN-KEV,
Inc, and KenkevII, Inc.

ARTICLES
OF INCORPORATION AND BY-LAWS

(To be
supplied by Seller Equityholders)

DONE

 40
 

SCHEDULE
8.3

KEN-KEV,
Inc. and KenkevII, Inc.

SHAREHOLDERS
AND STOCK CERTIFICATE NUMBERS

(To be
supplied by Seller Equityholders)

DONE

 41
 

SCHEDULE
8.6

GOVERNMENTAL
AND SHAREHOLDER APPROVALS

(To be supplied
by Seller Equityholders)

 42
 

1.             Governmental
Approvals

a.               The Maine Alcoholic
Beverage Commission – Transfer of Liquor Licenses and Permits

b.               City of Portland –
Adult Entertainment Licenses

2.             Shareholder
Approvals    DONE

A.            Ken Wood 

 43
 

SCHEDULE
8.9

Licenses
and Permits

(To be
supplied by Seller Equityholders)

WAIVED

 44
 

SCHEDULE
8.10

FINANCIAL
INFORMATION 

(To be
supplied by Seller Equityholders)

 45
 

SCHEDULE
8.11

UNDISCLOSED
LIABILITIES  -NONE

(To be
supplied by Seller Equityholders)

 46
 

SCHEDULE
8.12

CHANGES
IN ORDINARY COURSE OF BUSINESS  -NONE

(To be
supplied by Seller Equityholders)

 47
 

SCHEDULE
8.13

ADVERSE
CHANGES TO BUSINESS -NONE

(To be
supplied by Seller Equityholders)

 48
 

SCHEDULE
8.15

EMPLOYEE
BENEFIT PLANS -NONE

(To be
supplied by Seller Equityholders)

 49
 

SCHEDULE
8.16

LIST OF
EMPLOYEES AND INDEPENDENT CONTRACTORS

 50
 

SCHEDULE
8.16(C)

For purposed of Paragraph
8.16(c), the following persons are identified as managers and their present
salaries are as follows:

	
  Name

  	
   

  	
  Weekly Salary

  	
   

  	
  Yearly Salary

  
	
  1.

  	
   

  	
  Shawn Smetana

  	
   

  	
  $

  	
  2,900.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Mike St. Peter

  	
   

  	
  $

  	
  2,700.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Chad Burnett

  	
   

  	
  $

  	
  2,250.00

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Adam Currier

  	
   

  	
  $

  	
  1,600.00

  	
   

  	
   

  

 

(To be
supplied by Seller Equityholders)

 51
 

SCHEDULE
8.17

Assumed
Contracts

SCHEDULE
8.17

1.             Video Games- 50/50
Split on Video Games with Sparta Vending

2.                                       Red
Bull- Written Contract for 3 years expiring at the end of 2008. $2,000 Payment
is due to KenkevII at the beginning of 2008. Deal provides for 1 case free with
every 7 purchased.

3.                                       Verbal
Agreement with National Distributors to keep Bud Light on tap for Monday Night
Football. The agreement is a 3 year agreement, with one year remaining. A
payment is due KenKevII in the amount of $6,000.00 at the beginning of 2008.

4.                                       Victor
Coffee- Verbal agreement to purchase coffee exclusively, in exchange for
providing and maintaining the grinder and coffee maker located in kitchen.

5.                                       Coca
Cola- Verbal Agreement to only use Coke products in return for the supplying
and maintenance of dispensing equipment.

6.                                       Certain
advertising contracts.

 52

[HAND-WRITTEN
TEXT:  “8.17”]

[“Intelligent advertising
inc.” LOGO APPEARED ON ORIGINAL HARD COPY]

Intelligent Advertising Inc.

763 E Brookhaven Circle

Ste 205

Memphis, TN 38117

	
  

  	
   

  	
  KWE GROUP

  
	
  Bill to:

  	
   

  	
  800 Bush River Rd

  
	
   

  	
   

  	
  Columbia, SC 29210

  
	
   

  	
   

  	
   

  
	
  Invoice Number

  	
   

  	
  PPP306

  
	
   

  	
   

  	
   

  
	
  Invoice Date

  	
   

  	
  9/12/07

  
	
   

  	
   

  	
   

  
	
  Media Schedule for Week of :9.3-9.9

  
	
   

  	
   

  	
   

  
	
  WBLM Sched + MNF

  	
   

  	
  $1299.11 This runs through Dec 31 and is a weekly
  schedule plus MNF remote and talent fees

  
	
   

  	
   

  	
   

  
	
  WJAB SPORTS

  	
   

  	
  $250.00

  
	
   

  	
   

  	
   

  
	
  WCYY Sche + MNF

  	
   

  	
  $1299.11 This runs through Dec 31 and is a weekly
  schedule plus MNF remote and talent fees

  
	
   

  	
   

  	
   

  
	
  PORTLAND PRESS

  	
   

  	
  $1122.00 This is a 6 day a week run that runs thru
  January 2008. It is usually a 2x3 or 2x4

  
	
   

  	
   

  	
   

  
	
  TIME WARNER

  	
   

  	
  $425.00 This is TV advertising that runs through Jan
  23, 2008

  
	
   

  	
   

  	
   

  
	
  CLASSIFIED

  	
   

  	
  $0.00

  
	
   

  	
   

  	
   

  
	
  PRODUCTION

  	
   

  	
  $125.00

  
	
   

  	
   

  	
   

  
	
  PORTLAND PHOENIX

  	
   

  	
  $0.00

  
	
   

  	
   

  	
   

  
	
  Qremotefor Millennium

  	
   

  	
  $1150 (2 of 3 payments)

  

 

Remittance

Total Due:     $5670.22  A normal run of schedule is around $ 4500 per
week...

Paid:

Date:

[TWO SETS OF INITIALS
APPEAR IN RIGHT-HAND CORNER]

 53
 

CONTRACTS
AND COMMITMENTS

(To be
supplied by Seller Equityholders)

 54
 

SCHEDULE
8.18

ASSETS
NOT OWNED BY SELLER USED IN BUSINESS

(To be
supplied by Seller Equityholders)

SEE  8.17

 55
 

SCHEDULE
8.22

TAX
DISCLOSURES 

(To be
supplied by Seller Equityholders)

WAIVED

 56
 

SCHEDULE
8.25

ENVIRONMENTAL
DISCLOSURES 

(To be
supplied by Seller Equityholders)

WAIVED

 57
 

SCHEDULE
8.27

SUPPLIERS,
VENDORS, AND CUSTOMERS

(To be
supplied by Seller Equityholders)

WAIVED

 58
 

SCHEDULE
8.27a

VIP
CUSTOMERS 

(To be
supplied by Seller Equityholders)

NONE

 59
 

SCHEDULE
8.29

INSIDER
TRANSACTIONS

(To be
supplied by Seller Equityholders)

NONE

 60
 

SCHEDULE
8.30

BANK
ACCOUNTS

(To be
supplied by Seller Equityholders)

WAIVED

 61
 

SCHEDULE
8.31

INTELLECTUAL
PROPERTY

(To be
supplied by Seller Equityholders)

NONE

 62
 

SCHEDULE
8.32

INSURANCE

(To be
supplied by Seller Equityholders)

SATISFIED

 63
 

SCHEDULE 14.7 

Letter Agreement dated June 9, 2007

WAIVED

 64

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]