Document:

Promissory Note and Security Agreement

 Exhibit 10.19 
  
 PROMISSORY NOTE AND SECURITY AGREEMENT 
  

			
	 $4,000,000.00
	 	Lakewood, Colorado
	 	 	July 21, 2004

  
 FOR VALUE RECEIVED,
the undersigned, VCG HOLDING CORP., a Colorado corporation (“VCG”) a Colorado corporation, hereby promises to pay to the order of LOWRIE MANAGEMENT LLLP, a Colorado Limited Liability Limited Partnership (“Lowrie”),
at 390 Union Blvd, Suite 540, Lakewood, Colorado 80228, or at such other place as Lowrie or any subsequent holder hereof (the “Holder”) may, from time to time, designate in writing, the principal sum of FOUR MILLION AND 00/100 DOLLARS
($4,000,000.00). 
  
 1. Principal and Interest. Interest
shall accrue on the unpaid principal from the date hereof at a simple annual rate of nine percent (7.5%) (the “Interest Rate”). Interest shall be paid $25,000 per month until the balance is reduced and then adjusted to reflect the amount
due with the new balance. Interest shall be payable monthly on the fifteenth day of each month, beginning on August 15, 2004. On January 15, 2005 or before a principal reduction of $2,000,000 is due and payable to the holder, and on January 15, 2006
(the “Maturity Date”), the entire unpaid principal amount and any interest accrued but unpaid and all other sums due under this Promissory Note (“Note”) shall be paid in full to the Holder. 
  
 All payments under this Note shall be made only in lawful money of the United
States of America, at the address above or such place as the Holder hereof may designate in writing from time to time. 
  
 2. Collateral. In consideration of the Loan, upon execution of this Agreement, Borrower will grant to Holder, (a) a security interest in the
general assets of VCG Holding Corp, (b) the Limited Partnership holdings of the night club located at 4451 E Virginia Street, Glendale, CO., (c) VCG consents to the transfer of the adult permit and liquor license to Holder and/or its assigns.

  
 3. Prepayment. This Note may be prepaid in part (or in
full) at any time prior to the Maturity Date (except as expressly provided herein), and from time to time, without premium or penalty, and without the prior consent of the Holder hereof, on the conditions that Borrower shall concurrently pay all
accrued but unpaid interest on the amount of principal outstanding due at the time of each prepayment. 
  
 4. Default and Acceleration. Upon the occurrence of a default by the Borrower in any payment of interest or principal due hereunder, at the option
of the Holder hereof, (i) the entire outstanding principal balance and all accrued but unpaid interest shall become immediately due and payable upon written notice to Borrower and (ii) the Holder may pursue all other rights and remedies available
under this Note, any instrument securing payment of this Note, or by law. 
  

					
	 	 	 	 	

	 	 	 	 	(Borrower)

 5. Default Rate of Interest. Upon the occurrence of a Default, Borrower promises to pay interest
on the outstanding principal balance of this Note at a simple rate of interest equal to fifteen percent (15%) per annum (“Default Rate”). 
  
 6. Enforcement of Collateral. In addition to any other remedies which Holder has hereunder or by law, upon Default, Holder shall have the right to
enforce its rights in the Collateral by giving notice of the Default to Borrower and foreclosing on the Collateral. 
  
 7. Cumulative Remedies. All remedies of Holder provided for herein are cumulative and shall be in addition to all other rights and remedies
provided by law. The exercise of any right or remedy by Holder hereunder shall not in any way constitute a cure or waiver of default hereunder or invalidate any act done pursuant to any notice of default, or prejudice Holder in the exercise of any
of its rights hereunder unless, in the exercise of its rights, Lowrie realizes all amounts owed to it under the Loan. 
  
 8. Early Discharge. Upon full payment of the outstanding principal balance and all accrued but unpaid interest, this Note shall be fully
discharged, cancelled and surrendered to Borrower. 
  
 9.
Forbearance. Any forbearance of the Holder in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any right or remedy. The acceptance by the Holder of payment
of any sum payable hereunder after the due date of such payment shall not be a waiver of the Holder’s right to require prompt payment when due of all other sums payable hereunder. 
  
 10. Application of Payments. All payments made on this Note shall be applied first to payment of accrued but unpaid
interest and the remainder of all such payments shall be applied to the reduction of the outstanding principal balance on this Note. 
  
 11. Usury. In the event the interest provisions hereof, any exactions provided for herein or any instrument securing this Note, shall result, in an
effective rate of interest which, exceeds the limit of the usury or any other applicable law, all sums in excess of those lawfully collectible as interest for the period in question shall, without further agreement or notice between or by any party
hereto, be applied upon the outstanding principal balance of this Note immediately upon receipt of such moneys by the Holder, and any such amount in excess of such outstanding principal balance shall be immediately returned to Borrower. 

 
 12. Jurisdiction. This Note is to be governed according to the laws
of the State of Colorado, without giving effect to conflict of law principles. 
  

					
	 	 	 Page 2 of 3
	 	

	 	 	 	 	(Borrower)

 13. Binding Effect. This Note shall be binding upon Borrower, and its successors and assigns and
shall inure to the benefit of the Holder and its successors and assigns. 
  
 14. Notice. Any notice required or permitted to be given hereunder shall be in writing and will be deemed received (a) on the date of receipted delivery by a courier service or (b) on the fifth business day
after mailing, by registered or certified United States mail, postage prepaid, to the appropriate party at its address set forth below: 
  
 If to VCG: 
  
 VCG Holding Corp. 
 C/O Donald W Prosser CFO

 390 Union Blvd, Suite 540 
 Lakewood, Colorado 80228 
  
 If to LOWRIE: 
  
 Lowrie Management LLLP. 
 C/O Troy H. Lowrie 
 390 Union Blvd., Suite
540 
 Lakewood, Colorado 80228 
  
 15. Attorneys’ Fees. Borrower further promises to pay all reasonable attorneys’ fees incurred by the Holder in connection with any
Default hereunder and in any proceeding brought to enforce any of the provisions of this Note. 
  
 IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note effective as of the day and year first above written. 
  

	
	BORROWER:
	
	 /s/ Donald W Prosser CFO

	 Donald W Prosser CFO

	
	 Date: July 21, 2004

  

					
	 	 	 Page 3 of 3
	 	

	 	 	 	 	(Borrower)AMENDED LOAN AGREEMENT

 Exhibit 10.27 
  
 FIRST AMENDMENT TO LOAN AGREEMENT 
  
 FIRST AMENDMENT TO LOAN AGREEMENT this First Amendment to Loan Agreement (this “First Amendment”) dated to
be effective as of June 30, 2004, is made and executed by TEXTRON FINANCIAL CORPORATION, a Delaware corporation (“Textron”), DORFINCO CORPORATION, a Delaware corporation (“Dorfinco”) (collectively Textron and
Dorfinco are referred to as Lender”), CLUBCORP, INC., a Delaware corporation (“ClubCorp”), and each of the undersigned affiliates of ClubCorp (referred to herein individually as a Borrower” and collectively as the
“Borrowers”). 
  
 RECITALS: 
  
 A. Pursuant to the terms of a certain Loan Agreement dated June 4, 2003 (the
“Loan Agreement”), Lender extended loans to each of the Borrowers in the aggregate principal amount of $56,645,000.00 (such loans are collectively called the “Loans”). Unless otherwise defined herein, terms used herein with
initial capital letters shall have the same meanings assigned to such terms in the Loan Agreement. 
  
 B. Lender, the Borrowers and ClubCorp no w wish to amend the Loan Agreement as provided herein. 
  
 NOW, THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00)
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Lender, the Borrowers and ClubCorp each agree as follows: 
  
 1. The final sentence of Section 1(q) of the Loan Agreement is hereby amended and restated in its entirety to provide as
follows: 
  
 “For the purpose of calculating Net Income,
operating expenses for each Property shall include (i) consulting fees and compensation equal to $200,000.00 for the first Fiscal Year, with such amount to be increased each Fiscal Year thereafter by the same percentage as any increase in the CPI
applicable to such Fiscal Year (as determined by Lender), and (ii) expenditures for capital improvements (or a reserve therefor) equal two percent (2%) of the annual gross revenues of each Property”. 
  
 2. In the event either (a) the Borrowers fail at any time to maintain an
Aggregate DSCR of 1.40:1 or greater or (b) any Borrower fails at any time to maintain a DSCR of 1.30:1 or greater, each as required by Section 2(a) of the Loan Agreement, Lender shall deliver written notice of such failure to ClubCorp, and the
Borrowers shall have a period of thirty (30) days after the date of Lender’s delivery of such notice to ClubCorp in which to either (i) exercise the prepayment right described in Section 3(b) of the Loan Agreement or (ii) deliver the Letter of
Credit (as hereinafter defined) in accordance with Section 3 below. 
  
 3. In the event of any violation of Section 2(a) of the Loan Agreement, then in addition to the right of prepayment set forth in Section 3(b) of the Loan Agreement, ClubCorp shall have the right to deliver to Lender an irrevocable, standby
letter of credit issued by a lending institution acceptable to Lender and in form and content acceptable to Lender (each such 

  

 1 

 
letter of credit is hereinafter called a “Letter of Credit”). The Letter of Credit shall be in the amount which the Borrowers or the applicable
Borrower would be required to prepay pursuant to Section 3(b) of the Loan Agreement in order to cure the applicable violation of Section 2(a) of the Loan Agreement (such amount is hereafter called the “DSCR Cure Amount”). The Letter of
Credit shall be for a term of at least one (1) year, and shall provide that it may be drawn by Lender in whole or in part upon (a) the occur rence of an Event of Default, (b) in the event a replacement of the Letter of Credit is not delivered to
Lender at least thirty (30) days prior to the expiration of such Letter of Credit, or (c) twenty- four (24) months after the original date of the Letter of Credit (as provided in Section 6 below). Amounts drawn on the Letter of Credit pursuant to
either subpart (a) or subpart (b) of the immediately preceding sentence shall be applied by Lender to the Loans in such order and manner as Lender may elect, and amounts drawn on the Letter of Credit pursuant to subpart (c) of the immediately
preceding sentence shall be applied with Section 6 below. 
  
 4.
It is the intent of Lender, ClubCorp and the Borrowers that only one (1) Letter of Credit be held by Lender under the terms of this First Amendment at any time. Therefore, in the event (a) a Letter of Credit has been issued to Le nder in accordance
with Section 3 above, (b) a separate violation of Section 2(a) of the Loan Agreement occurs, and (c) ClubCorp desires to deliver a Letter of Credit to Lender as provided in Section 3 above in lieu of exercising the prepayment right provided in
Section 3(b) of the Loan Agreement, then the new Letter of Credit delivered by ClubCorp to Lender shall be in an amount equal to the then-current DSCR Cure Amount (including the amount which would be required to be prepaid in accordance with Section
3(b) of the Loan Agreement to cure the new violation of Section 2(a) of the Loan Agreement). 
  
 5. At such time as ClubCorp and/or the Borrowers cure all violations of Section 2(a) of the Loan Agreement as determined by Lender in the exercise of Lender’s reasonable business judgment, then provided that no
other Event of Default has occurred, any Letter of Credit held by Lender shall be returned to ClubCorp. In addition, if Lender determines that the Aggregate DSCR or DSCR as applicable, have increased such that the DSCR Cure Amount has been reduced,
then provided that no other Event of Default has occurred, ClubCorp shall be entitled to deliver to Lender a replacement of the Letter of Credit in the same form as required pursuant to the terms of this First Amendment, but in an amount equal to
the then-current DSCR Cure Amount. Notwithstanding anything contained herein to the contrary, ClubCorp shall not have the right to replace the Letter of Credit as provided in the immediately preceding sentence more than four (4) times in any Fiscal
Year. 
  
 6. In the event (a) ClubCorp delivers a Letter of Credit
to Lender in accordance with this First Amendment and (b) the applicable violation or violations of Section 2(a) of the Loan Agreement continue for a period of twenty-four (24) consecutive months, then upon the expiration of such twenty-four (24)
month period, Lender shall have the right, but not the obligation, to draw upon the Letter of Credit and apply the proceeds thereof to the payment of the applicable DSCR Cure Amount. To the extent any such application of proceeds results in a
prepayment of the unpaid principal balance of any of the Loans, then within ten (10) days after Lender delivers written notice to ClubCorp of any such application of the proceeds of the Letter of Credit, the Borrowers shall pay to Lender the
Prepayment Premium arising as the result of such prepayment. In addition, to the extent any proceeds drawn by Lender from the Letter of 

  

 2 

 
Credit are insufficient to pay in full the DSCR Cure Amount with respect to the violation of Section 2(a) of the Loan Agreement which has continued for
twenty-four (24) consecutive months, the Borrowers shall pay any remaining amount necessary to pay the DSCR Cure Amount in full to Lender within ten (10) days after written demand by Lender is delivered to ClubCorp. 
  
 7. ClubCorp and each Borrower hereby acknowledge and agree that Lender has
performed all of its obligations under the Loan Agreement and under the Loan Documents through the date of this First Amendment. 
  
 8. In order to facilitate execution of this First Amendment, (a) this First Amendment may be executed in as many counterparts as may be convenient or
required, (b) it shall not be necessary that the signature of, or on behalf of, each entity which is a party to this First Amendment appear on each such counterpart, (c) all counterparts shall collectively constitute single instrument, (d) it shall
not be necessary to make any proof of this First Amendment produce or count for more than a single counterpart containing the respective signatures of, or on behalf of, each of the parties hereto, (e) each signature page to each counterpart may be
detached from such counterpart without impairing the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached to it the additional signature pages and (f) delivery of an executed
counterpart of this First Amendment by facsimile shall be binding on the party so delivering. 
  
 EXECUTED AND DELIVERED as of the date first above written. 
  

			
	TEXTRON:
	
	TEXTRON FINANCIAL CORPORATION,
a Delaware corporation
		
	By:	 	/s/    SCOTT KENDALL        
	 Name:
	 	Scott Kendall
	 Title:
	 	SR. Vice president
	
	DORFINCO:
	
	DORFINCO CORPORATION,
a Delaware corporation
		
	By:	 	/s/    SCOTT KENDALL        
	 Name:
	 	Scott Kendall
	 Title:
	 	SR. Vice president

  

 3 

			
	CLUBCORP:
	
	 CLUBCORP, INC.,
 a Delaware corporation

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Treasurer
	
	BORROWERS:
	
	 CANYON GATE AT LAS VEGAS, INC.
 d/b/a Canyon Gate Country Club,
 a Nevada corporation

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President
	
	CLUBCORP GOLF OF NORTH CAROLINA,
L.L.C., a Delaware limited liability company
		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President
	
	 HEARTHSTONE COUNTRY CLUB, INC., 
 a Texas corporation

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President

  

 4 

			
	 IW GOLF CLUB, INC.,
d/b/a Indian Wells Golf Club,
 a California corporation

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President
	
	 INDIGO RUN ASSET CORP.,
d/b/a Golden Bear Golf Club at Indigo Run and
d/b/a The Golf Club at Indigo
Run,
 a South Carolina corporation

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President
	
	 CLUBCORP GOLF OF CALIFORNIA, L.L.C.,
 d/b/a Morgan Run Resort & Club,
 a Delaware limited liability company

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President
	
	 CLUBCORP GOLF OF NORTH CAROLINA,
L.L.C., d/b/a Nags Head Golf Links,
 a Delaware limited liability company

		
	By:	 	/s/    JOHN M. MASSEY
III        
	 	 	John M. Massey, III
	 	 	Vice President

  

 5 

			
	 RIVER CREEK COUNTRY CLUB, INC.,
 a
Virginia corporation

		
	By:	 	/s/    JOHN M. MASSEY III
        
	 	 	 John M. Massey, III
 Vice President

	
	 KNOLLWOOD COUNTRY CLUB, INC.,
 an
Indiana corporation

		
	By:	 	/s/    JOHN M. MASSEY III
        
	 	 	 John M. Massey, III
 Vice President

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]