Document:

Subordinated Security Agreement

 Exhibit 10.2 
 SUBORDINATED SECURITY AGREEMENT 
 This Subordinated Security Agreement (this
“Agreement”) is made and entered into as of January 17, 2007 by and between the undersigned (“Grantor”) and the lender listed on the signature page hereto (the “Lender”). 
 RECITALS 
 Grantor proposes to
execute and deliver to Lender its Secured Subordinated Revolving Promissory Note of even date herewith in the stated principal amount of $2,000,000 (the “Note”). Grantor wishes to secure performance and payment of all obligations to
Lender now existing or hereafter arising under the Note (the “Obligations”) with substantially all of its assets. All terms used without definition in this Agreement shall have the meaning assigned to them in the Note. All terms
used without definition in this Agreement or in the Note shall have the meaning assigned to them in the Uniform Commercial Code. 
 NOW,
THEREFORE, Grantor and the Lender agree as follows: 
 1. Grant of Security Interest. To secure all of the
Obligations, Grantor grants to the Lender a security interest in the property described in Exhibit A (the “Collateral”). 
 2. Grantor’s Representations and Warranties. Grantor represents and warrants as follows: 
 (a) Authorization. Grantor has authority and has obtained all approvals and consents necessary to enter into this Agreement, and Grantor’s execution, delivery and performance of this Agreement will not violate or conflict with
the terms of Grantor’s Articles or Certificate of Incorporation, Bylaws or other charter document, or any law, agreement, or other instrument or writing to which Grantor is party or by which is it bound. 
 (b) Title. The Collateral is owned by Grantor and is free of all liens, encumbrances and other security interests other than liens
and security interests permitted by the Note (the “Permitted Liens”). 
 (c) Solvency, Payment of
Debts. Grantor is solvent and able to pay its debts (including trade debts) as they mature. 
 (d) Further
Representations. Grantor further represents, warrants, and covenants that (i) Grantor is not in default under any agreement under which Grantor owes any money, or any agreement, the violation or termination of which could have a material
adverse effect on Grantor on a consolidated or consolidating basis; (ii) the information provided to Lender on or prior to the date of this Agreement is true and correct in all material respects; (iii) all financial statements and other
information provided to Lender fairly present Grantor’s financial condition, and there has not been a material adverse change in the financial condition of Grantor since the date of the most recent of the financial statements submitted to
Lender; (iv) Grantor is in compliance with all laws and orders applicable to it the failure to comply with which could have a material adverse effect on Grantor on a consolidated or consolidating basis; (v) Grantor is not a party to any
litigation or is the subject of any government investigation, and Grantor has no knowledge of any pending litigation or investigation or the existence of circumstances that reasonably could be expected to give rise to such litigation or
investigation, in each case where such litigation or investigation could have a material adverse effect on Grantor on a consolidated or consolidating basis; (vi) Grantor’s principal place of business is located at the address specified in
Section 11; and (vii) no representation or other statement made by Grantor to Lender contains any untrue statement of a material fact or omits to state a material fact necessary to make any statements made to Lender not misleading.

 3. Covenants. 
 (a) Encumbrances. Grantor shall not grant a security interest in any of the Collateral other than (a) to Lender, or (b) Permitted Liens or execute any financing statements covering any of the Collateral in favor of any
person other than Lender or a holder of a Permitted Lien. 
  

 1 

 (b) Use of Collateral. The Collateral will not be used for any unlawful purpose or
in any way that will void any insurance required to be carried in connection therewith. Grantor will keep the Collateral free and clear of liens and adverse claims other than Permitted Liens and, as appropriate and applicable, will keep it in good
condition and repair, and will clean, shelter, and otherwise care for the Collateral in all such ways as are considered good practice by owners of like property. 
 (c) Indemnification. Grantor shall indemnify Lender against all losses, claims, demands and liabilities of any kind caused by the
Collateral except claims, losses or liabilities resulting from the Lender’s gross negligence or willful misconduct as determined by a final judgment of a court of competent jurisdiction. 
 (d) Perfection of Security Interest. Grantor shall execute and deliver such documents as Lender reasonably deems necessary to
create, perfect and continue the security interest in the Collateral contemplated hereby. 
 (e) Insurance of
Collateral. 
 (i) Grantor, at its expense, shall keep the Collateral insured against loss or damage by fire, theft,
explosion, sprinklers, and all other hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted in the locations where Grantor’s business is conducted on the date hereof. Grantor shall
also maintain insurance relating to Grantor’s ownership and use of the Collateral in amounts and of a type that are customary to businesses similar to Grantor’s. 
 (ii) All such policies of insurance shall be in such form, with such companies, and in such amounts as reasonably satisfactory to Lender.
All such policies of property insurance shall contain a Lender’s loss payable endorsement, in a form satisfactory to Lender, showing Lender as an additional loss payee thereof and all liability insurance policies shall show Lender as an
additional insured, and shall specify that the insurer must give at least twenty (20) days notice to Lender before canceling its policy for any reason. Upon Lender’s request, Grantor shall deliver to Lender certified copies of such
policies of insurance and evidence of the payments of all premiums therefor. At any time after the occurrence and during the continuance of any Event of Default, all proceeds payable under any such policy shall, at the option of Lender, be payable
to Lender to be applied on account of the Obligations. 
 (f) Inventory and Equipment. 
 (i) Grantor shall not store its Inventory or the Equipment with a bailee, warehouseman, or other third party unless the third party has
been notified of Lender’s security interest and Lender (a) has received an acknowledgment from the third party that it is holding or will hold the Inventory or Equipment for Lender’s benefit or (b) is in pledge possession of the
warehouse receipt, where negotiable, covering such Inventory or Equipment. Grantor shall not store or maintain any Equipment or Inventory at a location other than the location set forth in Section 11 of this Agreement. 
 (ii) Grantor shall maintain the Collateral in good and saleable condition, repair it if necessary and otherwise deal with the Collateral
in all such ways as are considered good practice by owners of like property, use it lawfully and only as permitted by insurance policies, and permit Lender to inspect the Collateral at any reasonable time. 
 (iii) Not sell, contract to sell, lease, encumber (other than Permitted Liens) or transfer the Collateral (other than permitted by the
Note) until the Obligations have been paid or performed in full, even though Lender has a security interest in the proceeds of such Collateral. 
  

 2 

 (g) Accounts, Chattel Paper and General Intangibles. As to Collateral which are
Accounts, Chattel Paper, General Intangibles and Proceeds, Grantor warrants, represents and agrees: 
 (i) All such Collateral
is genuine, enforceable in accordance with its terms and conditions precedent (except as disclosed to and accepted by Lender in writing). Grantor will supply Lender with duplicate invoices or other evidence of Grantor’s rights on Lender’s
request. 
 (ii) All persons appearing to be obligated on such Collateral have authority and capacity to contract. 

(iii) All Chattel Paper is in compliance with applicable law as to form, content and manner of preparation and execution and has been
properly registered, recorded, and/or filed to protect Grantor’s interest thereunder. Grantor will mark conspicuously all Chattel Paper with a legend, in form and substance satisfactory to Lender, indicating that such Chattel Paper is subject
to the security interests of Lender and will, upon Lender’s request upon the occurrence of an Event of Default, deliver possession thereof to Lender. 
 (iv) Grantor agrees that following the occurrence and during the continuance of an Event of Default, Grantor shall not compromise, settle or adjust any Account or renew or extend the time of payment thereof without
Lender’s prior written consent. 
 (v) Until Lender exercises its rights to collect the Accounts pursuant hereto, Grantor
will collect with diligence all Grantor’s Accounts. Any collection of Accounts by Grantor, whether in the form of cash, checks, notes, or other instruments for the payment of money (properly endorsed or assigned where required to enable Lender
to collect same), shall be in trust for Lender. If an Event of Default has occurred and is continuing, Grantor shall keep all such collections separate and apart from all other funds and property so as to be capable of identification as the property
of Lender and deliver said collections daily to Lender in the identical form received. The proceeds of such collections when received by Lender may be applied by Lender directly to the payment of the Obligations. Any credit given by Lender upon
receipt of said proceeds shall be conditional credit subject to collection. Returned items at Lender’s option may be charged to the Grantor. All collections of the Accounts shall be set forth on an itemized schedule, showing the name of the
account debtor, the amount of each payment and such other information as Lender may request. 
 (vi) Until Lender exercises
its rights to collect the Accounts pursuant hereto, Grantor may continue its present policies with respect to returned merchandise and adjustments. However, Grantor shall immediately notify Lender of all cases involving repossessions, and material
loss or damage of or to merchandise represented by the Accounts. 
 (h) Binding Agreement. Anything herein to the
contrary notwithstanding, (a) Grantor shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this
Agreement had not been executed; (b) the exercise by Lender of any of the rights granted hereunder shall not release Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral; and
(c) Lender shall not have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Agreement, nor shall Lender be obligated to perform any of the obligations or duties of Grantor thereunder or
to take any action to collect or enforce any claim for payment assigned hereunder. 
 (i) Instruments. Grantor will
deliver and pledge to Lender all Instruments that are part of the Collateral duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance satisfactory to Lender. 
 (j) Records. Grantor shall prepare and keep, in accordance with generally accepted accounting principles consistently applied,
complete and accurate records regarding the Collateral and, if and when requested by Lender, shall prepare and deliver a complete and accurate schedule of all the Collateral in such detail as Lender may reasonably require. 
 (k) Inspection of Grantor’s Books. Grantor shall permit Lender or its designee at reasonable times, without interrupting
Grantor’s business and from time to time, but no more than twice a year (unless an Event 

  

 3 

 
of Default has occurred and is continuing) to inspect Grantor’s books, records and properties and to audit and to make copies of extracts from such
books and records. 
 (l) Fees and Costs. Grantor shall pay all reasonable expenses, including reasonable
attorneys’ fees, incurred by Lender in the preservation, realization, enforcement or exercise of any Lender’s rights under this Agreement. 
 (m) [Intentionally Omitted]. 
 (n) Corporate Existence. Grantor will maintain
its corporate existence and good standing and will maintain in force all licenses and agreements, the loss of which could have a material adverse effect on Grantor’s business. Grantor will pay all taxes on or before the date such taxes are due,
and will comply with all laws and orders applicable to it.; provided that Grantor need not make any payment on account of taxes if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against
(to the extent required by GAAP) by Grantor. 
 (o) Negative Covenants. Grantor will not (i) make any investments
in, or loans or advances to, any person other than as permitted in the Note, (ii) acquire any assets other than as permitted in the Note, (iii) make any distributions or pay any dividends to any person on account of Grantor’s shares
other than as permitted in the Note, (iv) create, incur, assume or be or remain liable with respect to any Indebtedness other than as permitted in the Note, (v) move, dispose of or encumber any portion of its assets, except as permitted in
the Note, (vi) merge or consolidate with or into any person or entity other than as permitted in the Note, (vii) create, incur, assume or suffer to exist any lien with respect to any of its property other than Permitted Liens, or assign or
otherwise convey any right to receive income, including the sale of any of Grantor’s Accounts, (viii) keep Inventory or Equipment at a location other than the address specified in Section 11 hereof; (ix) relocate its chief
executive office or state of incorporation, (x) or maintain or invest any of its property with a person other than Lender unless such person has entered into an account control agreement with Lender in form and substance satisfactory to Lender,
or (xi) permit the inclusion in any contract to which it becomes a party of any provisions that could restrict or invalidate the creation of a security interest in any of Grantor’s property. 
 (p) Further Assurances. At any time and from time to time, upon the written request of Lender, and at the sole expense of Grantor,
Grantor shall promptly and duly execute and deliver any and all such further instruments and documents and take such further action as Lender may reasonably deem desirable to obtain the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (a) to secure all consents and approvals necessary or appropriate for the grant of a security interest to Lender in any Collateral held by Grantor or in which Grantor has any rights not heretofore
assigned, (b) filing any financing or continuation statements under the UCC with respect to the security interests granted hereby, (c) transferring Collateral to Lender’s possession (if a security interest in such Collateral can be
perfected by possession), (d) placing the interest of Lender as lienholder on the certificate of title (or other evidence of ownership) of any vehicle owned by Grantor or in or with respect to which Grantor holds a beneficial interest and
(e) using its best efforts to obtain waivers of liens from landlords and mortgagees. Grantor also hereby authorizes Lender to file any such financing or continuation statement without the signature of Grantor. If any amount payable under or in
connection with any of the Collateral is or shall become evidenced by any Instrument, such Instrument, other than checks and notes received in the ordinary course of business, shall be duly endorsed in a manner satisfactory to Lender and delivered
to Lender promptly upon Grantor’s receipt thereof. 
 4. Events of Default. The occurrence of any Default under the Note or the
breach of any representation under this Agreement, or the failure to perform any obligation under Section 3 of this Agreement, shall constitute an “Event of Default” under this Agreement. 
 5. Remedies on Default. Upon the occurrence of an Event of Default, Lender shall have all rights, privileges, powers and remedies provided by law,
including, but not limited to, exercise of any or all of the following remedies. 
 (a) Lender may declare all amounts
outstanding under the Note to be immediately due and payable, and thereupon all such amounts shall be and become immediately due and payable to the Lender. 
  

 4 

 (b) Lender may dispose of the Collateral in accordance with applicable law. 

(c) Lender may use, operate, consume and sell the Collateral in its possession as appropriate for the purpose of performing
Grantor’s obligations with respect thereto to the extent necessary to satisfy the obligations of Grantor. 
 (d) All
payments received and amounts realized by Lender shall be promptly applied and distributed by the Lender in the following order of priority: 
 (i) first, to the payment of all costs and expenses, including reasonable legal expenses and attorneys fees, incurred or made hereunder by Lender, including any such costs and expenses of foreclosure or suit, if any,
and of any sale or the exercise of any other remedy under this Section 5, and of all taxes, assessments or liens superior to the lien granted under this Agreement; and 
 (ii) second, to the payment to Lender of the amount then owing under the Note. 
 6. Power of Attorney. Grantor hereby appoints Lender, its attorney-in-fact to prepare, sign and file or record, for Grantor in Grantor’s
name, any financing statements, applications for registration and like papers and to take any other action deemed by Lender necessary or desirable in order to perfect the security interest of the Lender hereunder, to dispose of any Collateral, and,
upon the occurrence and during the continuance of an Event of Default, to perform any obligations of Grantor hereunder, at Grantor’s expense, but without obligation to do so. 
 7. Remedies Cumulative. Lender’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative.
Lender shall have all other rights and remedies not inconsistent herewith as provided under the Texas Uniform Commercial Code (the “UCC”), by law, or in equity. No exercise by Lender of one right or remedy shall be deemed an
election, and no waiver by Lender of any Event of Default on Borrower’s or Grantor’s part shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it. No waiver by Lender shall be
effective unless made in a written document signed on behalf of Lender and then shall be effective only in the specific instance and for the specific purpose for which it was given. 
 8. Amendment of Loan Documents. Grantor authorizes Lender, without notice or demand and without affecting its liability hereunder, from time to
time to (a) renew, extend, or otherwise change the terms of any Loan Document, or any part thereof; (b) take and hold security for the payment of any Loan Document, and exchange, enforce, waive and release any such security; and
(c) apply such security and direct the order or manner of sale thereof as Lender in its sole discretion may determine. 
 9. Grantor
Waivers. Grantor waives any right to require Lender to (a) proceed against any other person obligated on the Obligations; (b) proceed against or exhaust any security held from any other person obligated on the Obligations;
(c) marshal any assets of any other person obligated on the Obligations; or (d) pursue any other remedy in Lender’s power whatsoever. Lender may, at its election, exercise or decline or fail to exercise any right or remedy it may have
against any other person obligated on the Obligations or any security held by Lender, including without limitation the right to foreclose upon any such security by judicial or nonjudicial sale, without affecting or impairing in any way the liability
of Grantor hereunder. Grantor waives any defense arising by reason of any disability or other defense of any other person obligated on the Obligations or by reason of the cessation from any cause whatsoever of the liability of any other person
obligated on the Obligations. Grantor waives any setoff, defense or counterclaim that any other person obligated on the Obligations may have against Lender. Grantor waives any defense arising out of the absence, impairment or loss of any right of
reimbursement or subrogation or any other rights against any other person obligated on the Obligations. 
 10. [Intentionally
Omitted]. 
 11. Notices. Unless otherwise provided in this Agreement, all notices or demands by any party relating to this
Agreement or any other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) 

  

 5 

 
shall be personally delivered or sent by a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by
telefacsimile to Grantor or to Lender, as the case may be, at its addresses set forth below: 
  

			
	 If to Grantor:
	  	OPTEX SYSTEMS, INC.
		  	c/o 3001 Red Hill Ave., Bldg. 4-108
		  	Costa Mesa, CA 92626
		  	Attn: Chief Financial Officer
		  	FAX: (714) 444-8773
		
	 If to Lender:
	  	TWL GROUP, LP
		  	4306 Savannah
		  	Parker, TX 75002
		  	Attn: Timothy Looney

 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
 12. Choice of Law and Venue; Jury Trial Waiver. 
 This Agreement shall be governed by the laws of the State of Texas, without regard to conflicts of laws principles. GRANTOR WAIVES ANY RIGHT TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED THEREIN, INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES. Grantor submits to the
exclusive jurisdiction of the state and federal courts located in the County of Dallas, State of Texas. If the jury waiver set forth in this Section is not enforceable, then any dispute, controversy or claim arising out of or relating to this
Agreement or any of the transactions contemplated herein will be finally settled by binding arbitration in Dallas, Texas in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association by one arbitrator
appointed in accordance with said rules. The arbitrator shall apply Texas law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this paragraph.
The expenses of the arbitration, including the arbitrator’s fees and expert witness fees, incurred by the parties to the arbitration, may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the
parties in any manner deemed appropriate by the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such expenses, both parties shall share equally in the payment of the arbitrator’s fees as and
when billed by the arbitrator. 
 13. General Provisions. 
 13.1 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns
of each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Grantor without Lender’s prior written consent, which consent may be granted or withheld in Lender’s sole discretion. Lender
shall have the right without the consent of or notice to Grantor to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Lender’s obligations, rights and benefits hereunder. 
 13.2 Indemnification. Grantor shall defend, indemnify and hold harmless Lender and its officers, employees, and agents against:
(a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement; and (b) all losses or Lender Expenses in any way suffered, incurred, or paid
by Lender as a result of or in any way arising out of, following, or consequential to transactions between Lender and Grantor whether under this Agreement, or otherwise (including without limitation reasonable attorneys’ fees and expenses),
except for losses caused by Lender’s gross negligence or willful misconduct. 
  

 6 

 13.3 Time of Essence. Time is of the essence for the performance of all
obligations set forth in this Agreement. 
 13.4 Severability of Provisions. Each provision of this Agreement shall be
severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 13.5 Amendments in Writing, Integration. This Agreement cannot be amended or terminated orally. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto
with respect to the subject matter of this Agreement, if any, are merged into this Agreement and the Loan Documents. 
 13.6
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. 
 13.7 Survival. All covenants, representations and
warranties made in this Agreement shall continue in full force and effect so long as any Obligations remain outstanding. The obligations of Grantor to indemnify Lender with respect to the expenses, damages, losses, costs and liabilities described in
Section shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Lender have run. 
 14. Subordination. Notwithstanding anything contained herein that may be to the contrary, the security interest created hereby, and the rights and remedies of Lender hereunder, are subordinate, inferior and subject to the security
interest in the Collateral of, and the rights and remedies in respect of such security interest of, Longview Fund, L.P. and Alpha Capital Anstalt, as provided in that certain Subordination Agreement of even date herewith, among Lender, Longview
Fund, L.P. and Alpha Capital Anstalt. 
 IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth above.

  

					
	GRANTOR:
	
	OPTEX SYSTEMS, INC.
		
	By:	 	/s/ JOHN J. STUART, JR.
		 	Name:	 	 John J. Stuart, Jr.

		 	Title:	 	 Chief Financial Officer

  

					
	LENDER:
	
	TWL GROUP, LP
		
	By:	 	TWL Group Management, LLC,
		 	its General Partner
			
		 	By:	 	 /s/ TIMOTHY W. LOONEY

		 	    Name:	 	 Timothy W. Looney

		 	    Title:	 	 President

 Signature Page to Subordinated Security Agreement 
  

 7 

 EXHIBIT A  
 COLLATERAL DESCRIPTION ATTACHMENT 
 TO SUBORDINATED SECURITY AGREEMENT 
 All personal property of Debtor (herein referred to as “Debtor”) whether presently existing or hereafter created or acquired, and
wherever located, including, but not limited to: 
 (a) all accounts (including health-care-insurance receivables), chattel paper
(including tangible and electronic chattel paper), deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks,
copyrights, goodwill, payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including
returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment
containing said books and records; 
 (b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including,
without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the Texas Uniform Commercial Code, as amended or supplemented from time
to time. 
  

 8Sales Agreement

 Exhibit 10.29 
 SALE OF VCG’S 100% MEMBERSHIP INTEREST IN EPICUREAN ENTERPRISES, L.L.C., 
 [An Arizona Limited
Liability Company] 
 THIS SALE AGREEMENT FOR VCG’S 100% MEMBERSHIP INTEREST IN EPICUREAN ENTERPRISES, L.L.C., hereinafter
referred to as the “Agreement,” is made and entered into as of the 15th day of January 2007, by and between VCG Holding Corp., a Colorado corporation, hereinafter referred to as the “Seller,” and Cory James Anderson,
an individual resident of Arizona, hereinafter referred to as the “Buyer.” 
 RECITALS 
 WHEREAS, the Seller is, or will be at the closing of this transaction (the “Close” or “Closing”), the owner of a 100%
membership interest in Epicurean Enterprises, L.L.C., an Arizona limited liability company, doing business as The Penthouse Club at 1902 N. Black Canyon Freeway, Phoenix, Arizona; and, 
 WHEREAS, the Seller intends and desires to sell, and the Buyer intends and desires to purchase, all of Seller’s 100% Membership Interest in
Epicurean on the terms and conditions hereinafter stated. 
 NOW, THEREFORE, in furtherance of the parties intents and desires, and in
consideration of the premises and mutual covenants, conditions and agreements between the parties as hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the
parties agree as follows: 
 SECTION I 
 TERMS OF SALE 
  

	 	1.1	SALE OF MEMBERSHIP INTEREST: Seller shall sell to Buyer, and Buyer shall purchase and acquire from Seller, free of all liabilities and encumbrances, except those hereinafter
expressly provided, and subject to all the terms and conditions hereinafter set forth, all of the right, title and interest of Seller in and to Epicurean, which will equal one hundred percent (100%) of all membership interests in Epicurean at
the time of Close. 

  

	 	1.2	 ASSETS OF EPICUREAN: The Assets of Epicurean include, but are not limited to the following: A certain Arizona Series 6 Liquor License # 06070572 

  

 1 

	 	 
and the inventory and liquor currently situated at 1902 N. Black Canyon Freeway, Arizona; These assets are currently utilized in the operation of an adult
live entertainment establishment at 1902 N. Black Canyon Freeway, Phoenix, Arizona. A more precise itemization of Epicurean’s assets that are included with this sale is set out in the attached Schedule A. 

  

	 	1.3	EXCLUDED ASSETS: The following assets are excluded from this membership interest sale and shall be transferred from Epicurean to VCG: 

 

	 	(i)	All cash on hand and amounts on deposit with financial institutions at the time of closing. 

  

	 	(ii)	All utility deposits of Epicurean existing at the time of Closing. 

  

	 	(iii)	All claims, rights and causes of action against third parties accrued to Epicurean up to the moment of Closing. 

  

	 	(iv)	All credit card receivables accrued to Epicurean up to the time of Closing. 

  

	 	1.4	SIMULTANEOUS CLOSING CONDITIONS: This Agreement is conditioned on the simultaneous execution of a new lease for the property located at 1902 N. Black Canyon Freeway, Phoenix,
Arizona. This condition may not be waived by either Buyer or Seller. The new lease is attached as schedule B and will contain a Option to Purchase for the real property and will contain terms normally and customarily used in such an agreement.

  

	 	1.5	TRADENAME: The Buyer will own the interest in the name “Epicurean Enterprises,” however, there is no other name, tradename or logo that is a part of the assets
involved in this sale. 

  

	 	1.6	MEMBERSHIP PURCHASE PRICE: The parties agree the Purchase Price for all of the Seller’s membership interest in Epicurean is Two Million Five Hundred Thousand
($2,500,000.00) Dollars. The parties agree the value associated with the purchase of the above referenced Liquor License is $200,000.00. The parties further agree this Purchase Price shall be paid by the Buyer to the Seller as follows:

  

			
	 At Closing
	 	$ 2,500,000.00
	 The above payments can be made in cash or common stock of VCG

  

 2 

	 	1.7	INDEMNIFICATION: Seller agrees to indemnify Buyer and hold Buyer harmless as to any expenses, damages, losses, or liabilities incurred by Buyer as a direct result of claims,
obligations, or liabilities attempted to be enforced against Epicurean after Closing for an event, act or omission that arose prior to Closing, or as a result of any breach of any of Seller’s representations or warranties contained in this
Agreement. 

  

	 	1.8	TRANSFER EXPENSES: The Buyer agrees to pay any expenses associated with any liquor license transfer or recording expenses or expenses related to notices to the State of
Epicurean’s change of Members, Agents or Officers. 

  

	 	1.9	CLOSING DATE: The Closing Date for this transaction is five (5) days after complete satisfaction, or waiver by Buyer and Seller, of the Conditions contained in
Section 5.2 of this Agreement. Closing shall occur at any place the parties agree. The closing date shall be prior to February 1, 2007. 

  

	 	1.10	BUYER POSSESSION OF THE ASSETS: Buyer’s actual possession of the Assets in Exhibit A shall occur simultaneous with Closing this transaction and complete payment of the
sums due at Closing pursuant to this Agreement. 

  

	 	1.11	INCORPORATION OF EXHIBITS: The parties agree that all of the Exhibits referenced in this Agreement shall be incorporated into this Agreement and are as effective as integral
and material parts of this Agreement. 

 SECTION II 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 Seller makes the following representations and
warranties to Buyer. All representations and warranties that are made are made to the best of Seller’s pre-closing knowledge and shall refer to the actual knowledge of Seller, as well as the pre-closing officers and Members for Epicurean
Enterprises, L.L.C. and VCG Holding Corp. These representations and warranties shall survive the Closing. 
  

	 	2.1	ORGANIZATION: Seller represents and warrants that at the time of Closing, he will be the sole owner of 100% of the membership interests in Epicurean; that Epicurean is an
Arizona limited liability company and duly organized, validly existing and in good standing under the laws of the State of Arizona, with all the requisite power and authority to conduct its lawful business in the State of Arizona, and otherwise to
carry on an adult live entertainment establishment at 1902 North Black Canyon Freeway, Phoenix, Arizona, and otherwise to carry on its operation and business as it is now being carried on at such location. 

  

 3 

	 	2.2	ORGANIZATION AUTHORITY: The Seller has the necessary and requisite power and capacity to enter into this Agreement. 

  

	 	2.3	NO VIOLATION OF ARTICLES OR OPERATING AGREEMENT: Neither the execution and delivery of this Agreement by the Seller, nor the performance by the Seller of his obligations
hereunder, nor the consummation by him of the transactions contemplated by this Agreement (a) Violates any provision of the Articles of Organization or Operating Agreement of Epicurean, nor (b) to the best of the Seller’s knowledge,
does it violate any statute or law or any judgment, decree, order, regulation or rule of any court or government authority to which the Seller or Epicurean are subject, and which would have a material, adverse effect on Epicurean or the Buyer as
Epicurean’s owner. 

  

	 	2.4	LITIGATION/CLAIMS: Seller has no actual knowledge of any litigation, claims, arbitration, or administrative proceeding pending or threatened against Epicurean or its assets,
including its liquor license. 

  

	 	2.5	KNOWLEDGE OF CURRENT VIOLATIONS/ADMINISTRATIVE ACTIONS INVOLVING EPICUREAN: Epicurean is not in violation of any law, regulation, consent order, order, judgment, injunction
or decree against it the effect of which would be materially adverse to the Epicurean ownership in the hands of the Buyer. 

  

	 	2.6	NO WARRANTIES: Seller makes no warranty of fitness for use or merchantability respecting the Assets set forth in Exhibit A. THIS PROVISION DOES NOT APPLY TO
EPICUREAN’S LIQUOR LICENSE, WHICH IS WARRANTED BY Seller TO BE CURRENT AND IN GOOD STANDING AND NOT SUBJECT TO ANY ADVERSE OR EQUITABLE CLAIMS AND ALSO NOT SUBJECT TO ANY PENDING ADMINISTRATIVE ACTIONS. 

  

	 	2.7	SELLER’S REPRESENTATION RESPECTING THE USE OF THE EPICUREAN BUSINESS PREMISE: The property located at 1902 N. Black Canyon Freeway is an “A-1” zoned District
in Phoenix, and Epicurean has used these premises since November 2, 1998 as a “bar” and “adult live entertainment establishment,” as those words in quotes are defined by the Phoenix Zoning Ordinances,.

  

	 	2.8	 DUTY TO COOPERATE. Seller and Seller’s attorney will reasonably cooperate with the Buyer and Buyer’s attorney to determine conclusively, 

  

 4 

	 	 
prior to Closing, that the location of 1902 N. Black Canyon Freeway may lawfully be currently used as a “bar” and “adult live
entertainment” establishment, as these terms are defined by the Phoenix Zoning Ordinance. 

  

	 	2.9	SELLER’S REPRESENTATIONS RESPECTING TAX RETURNS. The Seller, as Managing Member of Epicurean, will cause to be filed and paid in a timely manner all applicable federal,
state and local taxes related to income received from Epicurean up to and through December 31, 2006. Seller warrants that all tax returns filed or to be filed by or on behalf of VCG., and related to income or loss from Epicurean are, or will
be, substantially accurate, and to the best of Seller’s knowledge will not result in any future claim against the assets of Epicurean in Buyer’s hands. Seller also warrants that no examination of any of the tax returns of VCG is pending,
and that neither Epicurean or VCG has been notified by any taxing authority of an intent to conduct an examination of any such tax return. Seller further warrants that VCG is responsible for and will timely pay all income tax liabilities of
Epicurean up to the date of Closing. 

  

	 	2.10	TITLE TO ASSETS: Seller warrants that as of the Closing Epicurean has good, marketable unencumbered title to the Assets referred to herein free and clear of all liens, claims
and encumbrances. 

  

	 	2.11	CURRENT LEASE NOT IN DEFAULT: Seller warrants that neither he nor Epicurean are currently, and at the time of the Closing will not be, in default of any lease applicable to
the Epicurean business premises and any such lease shall be terminated without any further liability on the part of Epicurean prior to Closing. 

  

	 	2.12	REPRESENTATIONS CONCERNING ENTERTAINERS WHO HAVE APPEARED, OR ARE APPEARING, AT EPICUREAN’S BUSINESS PREMISES: The Seller represents that Epicurean:

  

	 	(i)	Has always properly classified workers, lessees, licensees, employees, and independent contractors for tax and minimum wage payment purposes. 

  

	 	(ii)	Has never, since the inception of the formal organizational status of Epicurean, treated any topless performer appearing on the Epicurean business premises as an employee of
Epicurean, or paid any employer’s share of withholding tax on the earnings of any such person. 

  

 5 

	 	(iii)	Has never, since the inception of the formal organizational status of Epicurean been the object of any claim or suit by any person or government entity asserting failure to pay
minimum wage to any person or report income or tips of any person. 

  

	 	2.13	REPRESENTATIONS RESPECTING CUSTOMERS AND EMPLOYEES: The Seller makes no warranty or representation that the present customers of the business will continue patronizing his
business following the Buyer’s execution or closing of this Agreement, or that Epicurean’s current employees will continue to remain as employees of Epicurean after the execution or Closing of this transaction. 

  

	 	2.14	INSURANCE: Epicurean maintained in full force and effect a policy of general liability insurance without any lapses in coverage. 

  

	 	2.15	MEMBERSHIP OWNERSHIP: Seller’s interest in Epicurean to be transferred hereunder represents one hundred percent (100%) of all the equitable, beneficial or legal
interest in Epicurean Enterprises, L.L.C. There are no other interests in Epicurean that are outstanding or promised, and there are no options, warrants or debt instruments, nor any other interest in Epicurean Enterprises, L.L.C. that at Closing
shall be, issued or outstanding.  

  

	 	2.16	TERMINATION OF LEASE. At the time of Closing, the prior lease with Epicurean for the use of the property located at 1902 North Black Canyon Highway, Phoenix, Arizona shall be
terminated by Seller and there shall be no residual liability owed by or behalf of Epicurean related to such lease. The new lease is attached as schedule B. 

  

	 	2.17	COOPERATION. VCG will promptly cooperate following the Closing with respect to any reasonably required paperwork necessary to approve and notify the Arizona Department of
Liquor Licenses and Control of a change of agent and control of Licensee. 

  

	 	2.18	OCCUPANCY PERMIT AND USE OF THE PREMISES: Epicurean Enterprises, LLC. has been issued in 1996 an Occupancy Permit for 1902 N. Black Canyon Freeway which states that this
property may be used for a bar and adult live entertainment purposes. 

  

 6 

 SECTION THREE 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby covenants, represents
and warrants to the Seller as follows: 
  

	 	3.1	BUYER’S FINANCIAL ABILITY TO PURCHASE SELLER’S MEMBERSHIP INTEREST: Buyer has, or has immediate access to, funds sufficient to purchase the Seller’s interest
in Epicurean within the time periods, and within the manner and at the amounts specified in this Agreement. 

  

	 	3.2	BINDING OBLIGATION OF BUYER: This Agreement is a legal, valid and binding obligation of the Buyer and any person executing this Agreement on behalf of Buyer represents and
warrants that they have the requisite authority to execute this Agreement on behalf of Buyer and to bind Buyer to this Agreement. 

  

	 	3.3	QUALIFICATIONS TO HOLD AN ARIZONA LIQUOR LICENSE. Buyer is familiar with Arizona liquor law regarding qualifications to hold an Arizona liquor license and Buyer reasonably
believes it is qualified and eligible to be a controlling person/entity of Arizona liquor license #06070572. 

  

	 	3.4	NO VIOLATION: Neither the execution and delivery of this Agreement by the Buyer, the performance by the Buyer of its obligations hereunder, nor the consummation by him/it of
the transactions contemplated by this Agreement will (a) violate any provision of the Articles of Incorporation or Bylaws of the Buyer, (b) to the best of the Buyer’s knowledge, violate any statute, law, regulation, or any judgment,
decree, order, regulation or rule of any court or government authority to which the Buyer is subject, or (c) violate or constitute a breach of any agreement to which the Buyer is subject. 

  

	 	3.5	CORRECTIONS TO IDENTIFY NEW MEMBER: Buyer will delete and correct after Closing any materials or references it receives from third parties showing VCG as having any position
or ownership of Epicurean, and further agrees to not hold itself or Epicurean out, after Closing, as having any connection with VCG other than with respect to acts or omissions occurring prior to Closing. 

  

	 	3.6	LEGAL REPRESENTATION. Buyer has consulted its own counsel respecting the terms and conditions of this Agreement. 

  

	 	3.7	LEGAL CAPACITY. Buyer is an individual residing in Arizona duly and is qualified to do business in the State of Arizona. 

  

 7 

	 	3.8	DUE DILIGENCE. The Buyer has visually inspected the Property and is familiar with ARS Title 4, Chapter 6 of the Phoenix City Code, and the Phoenix Zoning Ordinance provisions
respecting bars and adult live entertainment establishments. 

  

	 	3.9	CONTINUED USE. Following the Closing, Buyer and its successors or assigns, if any, will continue to use the Property for a “bar” and an “adult live
entertainment” establishment and may use some portion of the Property for a “sexually oriented business,” as those terms are defined in the City of Phoenix Code and Zoning Ordinances, in a manner that is consistent with all applicable
statutes, regulations and ordinances issued or enforced by any governmental body, department or agency, including, without limitation, the Code of the City of Phoenix, Chapter 6 and Chapter 10, Art. XII, Sections 10-131 through 10-148, and will not
act or fail to act, nor will it permit any of its officers, directors, employees, agents, lessees, or independent contractors to act or fail to act, in any manner which would result in the inability to continue conducting any business on the
Property which constitutes an “adult live entertainment” use. 

  

	 	3.10	PROTECTION OF LIQUOR LICENSE. Following the Closing, the Buyer, its officers, employees, agents, lessees, and independent contractors will use their best faith efforts
employing the highest standard of care to prevent any act, failure to act or violation of any statute, ordinance, regulation or code section of any governmental entity to occur which would effect or jeopardize in any material way the validity or
value of Liquor License No. 06070572. 

 SECTION FOUR 
 ADDITIONAL COVENANTS 
  

	 	4.1	DOCUMENTS ON AGREEMENT EXECUTION: On execution of this Agreement the Buyer and Seller shall each receive a fully executed copy of this Agreement, all Exhibits and Attachments
to this Agreement including the following Documents: 

  

			
	 Document Number 1
	 	Articles of Organization of Epicurean.
	 Document Number 2
	 	Operating Agreement of Epicurean.
	 Document Number 3
	 	Copy of all versions of independent contractor agreements used with entertainers at the Epicurean business premises.
	 Document Number 4
	 	All Books and Records of Epicurean, including evidence of all required regulatory filings, in the possession of Seller or Seller’s attorneys, and all records required to be maintained by
a

  

 8 

			
		 	liquor licensee pursuant to Title 4 of the Arizona Revised Statutes and any regulations promulgated thereto.
	 Document Number 5
	 	Copies of Epicurean casualty insurance policies for the period from 2003 until 2007.
	 Document Number 6
	 	Copies of all original licenses and permits in the name of Epicurean Enterprises, L.L.C. or referencing 1902 North Black Canyon Freeway [including Liquor License # 06070572], with the
originals to be provided to Seller at the Closing.

  

	 	4.2	CLOSING DOCUMENTS. In addition to the above, at Closing Date the Seller shall deliver to the Buyer the following: 

  

	 	(i)	Any existing maintenance and/or warranty records related to Assets conveyed by this Agreement. 

  

	 	(ii)	Certified Minutes of Epicurean acknowledging the sale of the 100% membership interest of VCG to Cory James Anderson., a change of statutory and Liquor Agent, and accepting
resignations of current Officers and acknowledging this sale. 

  

	 	(iii)	Completed Change of Agent notice as required by the Arizona Department of Liquor Licenses prepared by Buyer and singed by Seller. 

  

	 	(iv)	A Change of Statutory Agent prepared by Buyer and signed by Seller on behalf of Epicurean Enterprises, L.L.C. 

  

	 	(v)	Any other document reasonably required by Buyer, Seller, their attorneys, and any closing agent involved in this transaction. 

  

	 	4.3	BUYER TO DELIVER TO SELLER: At Closing the Buyer shall deliver to the Seller the following: 

  

	 	(i)	Cash and stock in VCG in the amount $2,500,000.00 payable to or in the name of VCG. 

  

 9 

 SECTION FIVE 
  

	 	5.1	SELLER’S MAINTENANCE OF USE OF PROPERTY AS A PHOENIX “ADULT LIVE ENTERTAINMENT” ESTABLISHMENT: Buyer has informed the Seller that Buyer’s sole intended
use of the 1902 N. Black Canyon Freeway property is as a “bar” and an “adult live entertainment establishment.” Without Buyer’s right and ability at the time of closing to so use the Property, the Buyer would have no use for
the Property or the Seller’s interest in Epicurean. Therefore, for this Agreement to close the 1902 Black Canyon Freeway property must, at the time of closing, be permitted, under Phoenix Ordinances and Zoning Code, to open and operate a
“bar” and an “adult live entertainment establishment.” 

  

	 	5.2	CONDITIONS OF THIS SALE: In addition to the condition set forth in Section 1.4 of this Agreement, the obligations of the Buyer to perform hereunder are conditioned on
the satisfaction of each of the following (all or any part of which may be waived by both the Buyer and the Seller, acting jointly) on or prior to the Closing Date: 

  

	 	(i)	The Representations and Warranties of the Seller contained in this Agreement shall be true and correct. 

  

	 	(ii)	The approval by Buyer of any documents ancillary to this Agreement. 

  

	 	(iii)	As of Closing that a “bar” and an “adult live entertainment establishment,” as those terms are defined by the Phoenix City Code and Zoning Ordinance, are all
currently lawful and “permitted uses” of the Property by Buyer [as an owner, lessee or licensee] pursuant to the City of Phoenix Ordinances, Phoenix Zoning Code and Arizona state law, unless such use is prohibited or restricted as the
result of the direct or indirect acts or omissions of the Buyer, its affiliates or related entities, or the officers, directors, members, shareholders, employees, agents or independent contractors of any of them. 

  

	 	(iv)	That prior to Closing the Seller provide to Buyer’s attorney, any and all records of Epicurean in Seller’s possession referring to: 

  

	 	a)	Classification of topless or bottomless entertainers who have appeared or are appearing at Epicurean’s business premises; and, 

  

	 	b)	Agreements between Epicurean and topless entertainers who have appeared or are appearing at Epicurean’s business premises respecting their status with Epicurean as
“employees” or “independent contractors.” 

  

 10 

	 	(v)	That as of Closing the Buyer is permitted by law, regulation, and/or license grant or transfer, to immediately operate at the Property a “bar” and an “adult live
entertainment establishment” as those terms are defined by the Phoenix City Code and Zoning Ordinance, unless such use is prohibited or restricted as the result of the direct or indirect acts or omissions of the Buyer, its affiliates or related
entities, or the officers, directors, members, shareholders, employees, agents or independent contractors of any of them. 

  

	 	(vi)	That prior to Closing, VCG will be the sole Member of EPICUREAN ENTERPRISES, L.L.C. at the time of Closing, has agreed to indemnify the Buyer for any losses or damages
suffered by the Buyer as a result of any Seller misrepresentations, fraud, or Seller caused performance failures related to this Agreement. 

  

	 	(vii)	That prior to Closing, Buyer has agreed to indemnify and hold Seller and Epicurean harmless for, from and against any losses, injuries, damages, claims and causes of action of any
type caused by the acts or omissions of Buyer, its affiliates or related entities, or the officers, directors, members, shareholders, employees, agents or independent contractors of any of them. 

  

	 	(viii)	That the Buyer has acquired, to its reasonable satisfaction, all final permits, licenses, and approvals from all regulatory bodies or agencies required to permit the Buyer to lease,
own, use, and operate the Property or business at 1902 N. Black Canyon Freeway, Phoenix, Arizona as an “adult live entertainment” establishment, as that quoted term is defined by Arizona law and the Phoenix City Code and Zoning Ordinance.

  

	 	(ix)	That the records of Epicurean Enterprises are complete and in good order. 

  

 11 

 SECTION SIX 
 MISCELLANEOUS 
  

	 	6.1	CONFIDENTIALITY: The Buyer and the Seller agree to keep the terms and timing related to this Agreement confidential to the extent legally permissible and practically
possible. 

  

	 	6.2	COOPERATION: Buyer and Seller agree to reasonably cooperate with one another to assure a smooth transition of the business license, ownership and control from Seller to
Buyer. 

  

	 	6.3	FURTHER ASSURANCES: Seller and Buyer jointly and severally agree to use their best efforts to obtain any consents or approvals by any third party or Government authority or
agency which are required or reasonably deemed desirable by Buyer in connection with the completion of the transactions contemplated by this Agreement. 

  

	 	6.4	FEES AND EXPENSES: Except as otherwise provided herein, the parties hereto shall bear their own costs and expenses incurred in connection with this transaction.

  

	 	6.5	BROKERAGE. The Buyer and Seller agree, represent and warrant that there is NO brokerage obligation or relationship related to this transaction. 

  

	 	6.6	NOTICES TO THIRD PARTIES, VENDORS. Following the Closing Date the Seller will notify all persons-entities-government agencies and regulatory authorities which had any
business or regulatory relationship with the Seller that the Seller has sold his interest in Epicurean, and that the Seller is no longer involved in any business at the 1902 N. Black Canyon Freeway, Phoenix, Arizona. 

  

	 	6.7	BULK SALES. The parties agree UCC Bulk Sales provisions are not applicable. 

  

	 	6.8	ASSIGNMENT. The benefits and burdens of this Agreement are personal in nature and no party, except as provided in Section 7.4, shall assign this Agreement or any of its
rights and obligations hereunder without the prior written consent of the other party. 

  

	 	6.9	SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, legal representatives, successors and permitted
assigns. 

  

	 	6.10	PRESERVATION OF THE BUSINESS. Without purporting to make any commitment, Seller shall exercise all reasonable efforts to: (i) preserve the present relationship of
Epicurean with all persons having business dealings with Epicurean; and, (ii) preserve and maintain in force all 

  

 12 

	 	 
licenses, permits, registrations, franchises, and other similar rights applicable to up until Closing and to reasonably accommodate the efforts and
activities of Buyer to accomplish a change of liquor agent, statutory agent, and transfer of a controlling interest in Epicurean Enterprises, L.L.C. from VCG to Buyer. 

  

	 	6.11	NOTICES. Any notice, demand or request required or permitted to be given under any provision of this Agreement shall be in writing and delivered personally or by certified or
registered mail (with return receipt requested, and postage prepaid) to the following address, or to such other address as either party or their legal representative may request by notice in writing to the other party: 

  

			
	 If to Seller:
	 	VCG Holding Corp.
		 	 Troy Lowrie

		 	 390 Union Blvd., Suite 540

		 	 Denver, CO 80228

  

			
	 If to Buyer:
	 	Cory James Anderson
		 	 10954 E. Southwind Lane

		 	 Scottsdale, AZ 85262

		 	 Tel: 602-615-3800

  

	 	6.12	ENTIRE AGREEMENT. This Agreement constitutes the entire agreement and understanding of the parties with respect to the subject matter hereof, and supersedes any and all prior
agreements, understanding, negotiations and discussions between the parties and/or their counsel on the subject of this Agreement or topic(s) related to this Agreement. No amendment, modification or waiver of this Agreement shall be binding unless
evidenced by an instrument in writing signed by the Buyer and Seller. 

  

	 	6.13	CONSTRUCTION. The captions and headings of this Agreement are for convenience and reference only, and shall not control or effect the meaning or construction of this
Agreement. 

  

	 	6.14	APPLICABLE LAW, VENUE: This Agreement is to be performed in Phoenix, Arizona and shall be governed by the internal substantive laws of the State of Arizona (without reference
to choice of law principles) and, to the extent they preempt the laws of such state, the laws of the United States. In the event any litigation is commenced relating to this Agreement, the parties hereby irrevocably submit to the process,
jurisdiction and venue of the courts of the State of Arizona, in and for the County of Maricopa, for the purpose of suit, action or other proceedings arising out of or relating to this Agreement and any such action shall be commenced only in such
courts. 

  

 13 

	 	6.15	SEVERABILITY. The invalidity or unenforceability of any provisions of this Agreement shall not effect the validity or enforceability of any other provision hereof, and this
Agreement shall be construed in all respects as if such invalid or unenforceable provision had been omitted. The invalidity or unenforceability of any provision of this Agreement to any person or circumstance shall not affect the validity or
enforceability of such provision as it may apply to any other persons or circumstances. 

  

	 	6.16	WAIVER. The failure in one or more instances of a party to insist upon performance of any of the terms, conditions and covenants set forth in this Agreement, or the failure
of a party to exercise any right or privilege conferred by this Agreement, shall not thereafter be construed thereafter as waiving their right to insist upon performance of such terms, conditions or covenants or the rights to exercise such
privileges and rights, which shall continue to remain in full force and effect as if no forbearance had occurred. 

  

	 	6.17	ATTORNEYS FEES. If either party to this Agreement should bring an action in any court of competent jurisdiction to enforce or obtain an interpretation of this Agreement, the
prevailing party in that litigation shall be entitled to a judgment for the costs of the action and reasonable attorneys’ fees incurred in prelitigation efforts to resolve the issues between the parties, investigation and research, as well as
the attorneys fees associated with actual action following its commencement, in addition to any other relief granted by the court. 

  

	 	6.18	MEDIATION. In the event of a dispute between the parties concerning the subject matter of this Agreement the parties agree to first to attempt to informally mediate their
dispute prior to instituting any litigation. 

  

	 	6.19	COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original instrument, but all of which together will constitute
for all purposes one and the same instrument. 

  

	 	6.20	FACSIMILE SIGNATURE. The parties agree a facsimile signature shall be as effective as an original. 

  

	 	6.21	AGREEMENT NOT TO COMPETE. The Seller agrees that for a period of three years after the Closing Date he will not, directly or indirectly, own or have any interest in an adult
oriented nightclub or bar within three (3) miles of the Property. 

  

 14 

	 	6.22	ASSISTANCE OF COUNSEL. Buyer states that it has had the assistance and counsel of their attorney in the review of the terms and conditions of this Agreement.

  

	 	6.23	SURVIVAL OF COVENANTS, REPRESENTATIONS, WARRANTIES AND INDEMNIFICATION’S. All covenants, representations and warranties made by any party to this Agreement shall be
deemed made for the purpose of inducing the other party to enter into this Agreement. The representations and warranties made by either party in this Agreement shall survive the Closing indefinitely. 

 IN WITNESS WHEREOF, the parties have executed this Agreement for the Sale Of VCG’s 100% Membership Interest In Epicurean Enterprises, L.L.C. as of the 15th day of
January, 2007. 
  

							
	“SELLER”	  	 	 	“BUYER”
				
	 /s/ Troy H. Lowrie
	  		 	By:	 	 /s/ Cory James Anderson

	 VCG Holding Corp.
	  		 		 	Cory James Anderson
	 Troy Lowrie
	  		 		 	Individually
	 CEO
	  		 		 	

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]