Document:

Unassociated Document

    
      

    

    PROMISSORY
      NOTE

    

    

    
      	
              $2,400,000.00

            	
              April
                23, 2007

            

    

    

    RCI
      HOLDINGS, INC., a Texas Corporation ("Maker"), for value received, hereby
promises
      to pay to the order of
      THOMAS FELSENTHAL and CONRAD E. SCHUBERTH, or
      their
      successors and permitted assigns (individually and collectively, the
      "Holder"), the principal
      sum of Two
      Million Four Hundred Thousand Dollars and 00/100 cents ($2,400,00.00)
      and
      to
      pay interest (computed on a "simple interest" basis and on the basis of a
365/366
      day year) on the unpaid principal balance of this Promissory Note (the
      "Note"), from and after the date hereof until maturity, at the following
      rate: (a) for the first two years of this note,
      interest shall accrue at the rate of seven and one-half percent (7.25%) per
      annum; (b) during the
      third
      and fourth years of this note, interest shall accrue at the rate of eight and
      one-quarter percent
      (8.25%) per annum; and (c) during the fifth and sixth years of this note,
      interest shall accrue
      at
      the rate of nine and one-quarter percent (9.25%) per annum. After maturity
      of
      this Note,
      the
      interest rate on the matured and unpaid amount due hereunder shall be fifteen
      percent (15%) or the Maximum Rate, whichever is greater.

    

    
      	
              1.

            	
              Terms
                of this Note.

            

    

    

    1.1    Interest
      and Principal. Except
      as
      otherwise provided for herein, the principal of, and
      all
      accrued interest thereon, shall be due and payable in twenty-four (24) equal
      monthly installments
      of Thirty
      Thousand Three Hundred Nineteen Dollars and 86/100 cents ($30,319.86),
      on
      the
      23rd
      day of
      each month, beginning May 23, 2007 and continuing through April 23, 2009. After
      that date the unpaid principal balance and interest are payable in twenty-
      four
      (24)
      equal monthly installments of Thirty
      One Thousand Three Hundred Eight Dollars and
      01/100 Cents ($31,308.01), on
      the
      23rd
      day of
      each month, beginning May 23, 2009 and continuing
      through April 23, 2011. After that date the unpaid principal balance and
      interest are payable
      in twenty-four (24) equal monthly installments of Thirty
      Two Thousand Fifty Dollars and
      37/100 Cents ($32,050.37),
      on the 23rd
      day of
      each month, beginning May 23, 2011 and continuing
      through April 23, 2013, and in one final installment on May 23, 2013 in the
      amount of
      the
      unpaid principal and accrued, unpaid interest as of that date. Payments will
      be
      applied first
      to
      accrued interest and the remainder to reduction of the Principal
      Amount.

    

    1.2    Payments.
      All
      payments on or in respect of this Note shall be made to Holder at 8949
      Random Road, Fort Worth, Texas 76179-2741, or, at such address as Holder may
      designate
      to Maker in writing pursuant to the provisions of this Note.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    1.3    Conformance
      with Laws. Notwithstanding
      any other term of this Note to the contrary,
      it is the intention of the Maker and the Holder to conform strictly to any
      applicable usury
      laws. Accordingly, if the Holder contracts for, charges or receives any
      consideration that constitutes
      interest in excess of the maximum rate permitted by applicable law (the
"Maximum
      Rate"),
      then such excess will be canceled automatically and if previously paid will,
      at
      the Holder's
      option, be applied to the outstanding principal amount under this Note or
      refunded to the
      Maker. In determining whether any interest exceeds the Maximum Rate, such
      interest will, to the extent permitted by applicable law, be amortized,
      prorated, allocated and spread in equal parts
      throughout the term of this Note. All agreements made in this Note are expressly
      limited so that in no event whatsoever, whether by reason of advancement of
      the
      proceeds of this Note, acceleration of maturity of the unpaid balance of this
      Note or otherwise, will the amount paid or agreed
      to
      be paid to the Holder for the use of the money advanced or to be advanced under
      this Note exceed an amount calculated at the Maximum Rate. If any circumstances
      whatsoever, including
      the fulfillment of any provision of this Note or any other agreement or
      instrument now or
      hereafter evidencing, securing or in any way relating to the indebtedness
      evidenced by this Note,
      will involve the payment of interest in excess of an amount calculated at the
      Maximum Rate,
      then, ipso
      facto, the
      obligation to pay interest under this Note will be reduced to such amount.
      This Section 1.3 will control every other provision in any and all other
      agreements and instruments
      existing or hereafter arising between the Maker and the Holder with respect
      to
      the indebtedness
      evidenced by this Note.

    

    1.4    Prepayment.
      This
      Note
      may be prepaid in whole or in part without penalty by the
      Maker
      without the prior consent of the Holder, provided that any partial prepayment
      shall not be
      in an
      amount less than $50,000.00. Any prepayment to which the Holder consents will
      be
      applied first against accrued and unpaid expenses owing under this Note (if
      any), then against accrued
      and unpaid interest then payable pursuant to the provisions of this Note, and
      then against unpaid principal.

    

    1.5    Waivers.
      Except
      as
      otherwise provided in this Note, Maker waives diligence, presentment,
      demand, protest and notice of every kind whatsoever. The failure of the Holder
      to exercise
      any of its rights under this Note in any particular instance will not constitute
      a waiver of the
      same
      or of any other right in that or any subsequent instance.

    

    1.6    Purchase
      Agreement. This
      Note
      is being given to Holder by Maker in partial payment
      of the purchase price set forth in that certain Real Estate Sales Contract
      dated
      April 4, 2007
      by
      and between Holder and RCI HOLDINGS, INC., a Texas corporation (the "Purchase
      Agreement").

    

    1.7    Deed
      of Trust. This
      Note
      is secured by the collateral described in that certain Deed
      of
      Trust and Security Agreement of even date herewith by and among the Maker and
      the Holder
      (the "Deed of Trust") and is subject to all of the agreements, terms and
      conditions contained
      therein, all of which are incorporated herein by this reference.

    

    1.8    Late
      Charge. If
      a
      payment is 10 days or more late, Maker will be charged $1,000.00
      of
      the unpaid portion of the regularly scheduled payment.

    

    
      	
              2.

            	
              Events
                of Default and Remedies.

            

    

    

    2.1    DEFAULT.
      Each
      of
      the following constitute an event of default ("Event of Default")
      under this Note:

    

    (a)    Payment
      Default. Maker
      fails to make any payment when due under this Note.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    (b)    Other
      Defaults. Maker
      fails to comply with or to perform any other term, obligation,
      covenant or condition contained in this Note, the Deed of Trust, or in any
      of
the
      related documents or to comply with or to perform any term, obligation, covenant
      or condition
      contained in any other agreement between Holder and Maker.

    

    (c)    False
      Statements. Any
      warranty, representation or statement made or furnished to
      Holder
      by Maker or on Maker's behalf under this Note or the related documents is
false
      or
      misleading in any material respect, either now or at the time made or furnished
      or becomes false or misleading at any time thereafter.

    

    (d)    Death
      or Insolvency. The
      dissolution of Maker (regardless of whether election to
      continue is made), any member withdraws from Maker, or any other termination
      of
Maker's
      existence as a going business or the death of any member, the insolvency of
      Maker,
      the appointment of a receiver for any part of Maker's property, any assignment
      for the benefit of creditors, any type of creditor workout, or the commencement
      of any proceeding
      under any bankruptcy or insolvency laws by or against Maker.

    

    (e)    Creditor
      or Forfeiture Proceedings. Commencement
      of foreclosure or forfeiture
      proceedings, whether by judicial proceeding, self-help, repossession or any
      other
      method, by any creditor of Maker or by any governmental agency against any
      collateral
      securing the loan. This includes a garnishment of any of Maker's accounts,
      including
      deposit accounts, with Holder. However, this Event of Default shall not apply
      if
      there is a good faith dispute by Maker as to the validity of reasonableness
      of
      the claim which
      is
      the basis of the creditor or forfeiture proceeding and if Maker gives Holder
      written
      notice of the creditor or forfeiture proceeding.

    

    2.2    Remedies.
      In
      case
      any one or more of the Events of Default specified in Section
      2.1 has occurred, Holder will have the right to accelerate payment of the entire
      principal of,
      and
      all interest accrued on, this Note, and, upon such acceleration, this Note
      will
      thereupon become
      due and payable, without any presentment, demand, protest or other notice of
      any
      kind, all
      of
      which are expressly waived, and the Maker will forthwith pay to the Holder
      the
      entire outstanding
      principal of, and interest accrued on, this Note. Additionally, Holder shall
      have all of
      the
      rights and remedies available to Holder pursuant to the Deed of
      Trust.

    

    2.3    Attorney's
      Fees; Expenses. Holder
      may hire an attorney to help collect this Note
      if
      Maker does not pay, and Maker will pay Holder's reasonable attorneys' fees.
      Maker also will
      pay
      Holder all other amounts Holder actually incurs as court costs, lawful fees
      for
      filing, recording,
      releasing to any public office any instrument securing this Note; the reasonable
      cost actually
      expended for repossessing, storing, preparing for sale, and selling any
      security; and fees for
      noting a lien on or transferring a certificate of title to any motor vehicle
      offered as security for
      this
      Note, or premiums or identifiable charges received in connection with the sale
      of authorized
      insurance.

    

    2.4    Cure
      Provisions.

    

    (a)    In
      the
      event of a default in payment, it may be cured if Maker, after receiving
written
      notice from Holder demanding cure of such default, cures the default (including
      payment
      of the late fee) within seven (7) days; provided, however, in no event will
      Holder
      be
      required to provide more than two (2) notices in any calendar
      year.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    (b)    If
      any
      default, other than a default in payment is curable, it may be cured if
Maker,
      after receiving written notice from Holder demanding cure of such default:
      (1)
cures
      the
      default within twenty (20) days; or (2) if the cure requires more than twenty
      (20)
      days, immediately initiates steps which Holder deems in Holder's sole discretion
      to be
      sufficient to cure the default and thereafter continues and completes all
      reasonable and necessary steps sufficient to produce compliance as soon as
      reasonably practical.

    

    Miscellaneous.

    

    3.1    Jurisdiction.
      Any
      action or proceeding seeking to enforce any provision of
      this
      Note must be brought in any of the courts of the State of Texas sitting in
      Tarrant County,
      or, if it has or can acquire jurisdiction, in the United States District Court
      for the Northern
      District of Texas, and each of the Maker and the Holder consents to the
exclusive
      jurisdiction of such courts (and of the appropriate appellate courts) in any
      such action
      or
      proceeding and waives any objection to venue in such courts. If the Holder
      commences
      any action or proceeding seeking to enforce any provision of this Note in any
      other
      jurisdiction, then the Maker will be entitled to have such action or proceeding
      transferred to one of the jurisdictions described above, or, if such transfer
      may not be accomplished under applicable law, then to have such action or
      proceeding dismissed without
      prejudice.

    

    3.2    Amendment
      and Waiver. This
      Note
      may be amended, and the observance of any
      term
      of this Note may be waived or consented to, with and only with the written
      consent of the
      Maker
      and the Holder.

    

    3.3    Waiver.
      Any
      waiver or failure to insist upon strict compliance with any obligation,
      covenant, agreement or condition of this Note will not operate as a waiver
      of,
      or estoppel
      with respect to, any subsequent or other failure. Any waiver of any provision
      of
      this Note
      shall be made pursuant to the provisions of Section 3.2.

    

    3.4    Notices.
      All
      notices and other communications under this Note must be in writing
      and will be deemed given (a) when received if delivered personally or by courier
      (with written confirmation of receipt), or (b) five (5) days after being
      deposited in the mail if sent by registered
      or certified mail (postage prepaid, return receipt requested) to the Holder
      or
      the Maker, as
      the
      case may be, at the following addresses (or at such other address as may be
      specified in a notice
      in
      accordance with this Section):

    

    If
      to the
      Holder, to both:

    

    THOMAS
      FELSENTHAL

    8949
      Random Road

    Fort
      Worth, TX 76179-2741; and

    CONRAD
      E.
      SCHUBERTH 

    2502
      N.
      Clark Street 

    Chicago,
      IL 60614

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    If
      to
      Maker:

    

    RCI
      HOLDINGS, INC. 

    c/o
      Eric
      Langan, President 

    10959
      Cutten Road 

    Houston,
      Texas 77066

    

    3.5    Governing
      Law. This
      Note
      will be governed by the laws of the State of Texas without
      regard to the conflicts of law principles of any jurisdiction.

    

    3.6    Entire
      Agreement. This
      Note, the Purchase Agreement and the Deed of Trust constitute
      the entire agreement of the Maker and the Holder with respect to the subject
      matter contained
      in this Note and supersede all prior agreements and undertakings between the
      Maker and
      the
      Holder with respect to the transactions contemplated hereby. There are no
      restrictions, promises,
      representations, warranties, covenants or undertakings, other than those
      expressly provided
      for in this Note.

    

    3.7    Severability.
      If
      any
      term, provision, covenant, agreement or restriction of this Note is held by
      a
      court of competent jurisdiction to be invalid, void or unenforceable, then
      the
remainder
      of the terms, provisions, covenants, agreements and restrictions of this Note
      will continue
      in full force and effect and will in no way be affected, impaired or
      invalidated.

    

    
      	 	
              MAKER:

            
	 	 
	 	
              RCI
                HOLDINGS, INC. a Texas Corporation

            
	 	 
	 	
              By:

            	
              /s/
                Eric Langan

            
	 	 	
              Eric
                Langan, President

            

    

     

    
-5-ex10_5.htm

    
      

    

    NOTICE
      OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE
      ANY OR ALL OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
      FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
      LICENSE NUMBER.

    

    Deed
      of Trust 

    Security
      Agreement - Financing Statement

    

    Terms

    

    Date:  
      April
      23,
      2007

    

    
      	
              Grantor:

            	
              RCI
                HOLDINGS, INC., a Texas corporation

            

    

    

    Grantor's
      Mailing Address:

    

    RCI
      HOLDINGS, INC. c/o 

    Eric
      Langan, President 

    10959
      Cutten Road 

    Houston,
      Texas 77066

    

    
      	
              Trustee:

            	
              Carey
                Walker 

            

    

    

    Trustee's
      Mailing Address:

    

    2501
      Parkview Drive, Suite 123 

    Fort
      Worth, Texas 76102 

    Tarrant
      County

    

    
      	
              Lenders:

            	
              THOMAS
                FELSENTHAL and CONRAD E. SCHUBERTH 

            

    

    

    Lenders'
      Mailing Address:

    

    8949
      Random Road

    Fort
      Worth, TX 76179-2741

    

    Obligation

    

    Note

    

    

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    

      
        
          
          

        

        
          Page
            1

          
            

          

        

        
          
          

        

      

    

     

    Date:    April
      23,
      2007

    

    Original
      principal amount:    $2,400,000.00

    

    Borrower:    RCI
      HOLDINGS, INC.

    

    Lenders:    THOMAS
      FELSENTHAL and CONRAD E. SCHUBERTH

    

    Maturity
      date:    April
      23,
      2013

    

    Terms
      of
      Payment:    As
      provided in the note.

    

    Other
      Debt:

    

    None.
      

    

    Property
      (including any improvements):

    

    See
      Exhibit "A" attached hereto and incorporated herein for all
      purposes.

    

    Personal
      Property: All of Grantor's property constituting personal property located
      in or
      on and used in the enjoyment of the Property.

    

    DESCRIPTION
      OF COLLATERAL COVERED BY SECURITY AGREEMENT/FINANCING
      STATEMENT:

    

    Any
      and
      all of Grantor's equipment, furniture, licenses, permits and fixtures located
      on
      the Property.

    

    In
      addition to creating a deed-of-trust lien on all the real and other property
      described above, Grantor also grants to Lenders a security interest in all
      of
      the above-described personal property pursuant to and to the extent permitted
      by
      the Texas Uniform Commercial Code.

    

    In
      the
      event of a foreclosure sale under this deed of trust, Grantor agrees that all
      the Property may be sold as a whole at Lenders' option and that the Property
      need not be present at the place of sale.

    

    Prior
      Lien:

    

    None.

    

    

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          2

        
          

        

      

      
        
        

      

    

    Other
      Exceptions to Conveyance and Warranty:

    

    Liens
      described as part of the Consideration and any other liens described in the
      deed
      to Grantor as being either assumed or subject to which title is taken; all
      presently recorded and validly existing easements, rights-of-way, and
      prescriptive rights; all presently recorded and validly existing instruments,
      other than conveyances of the surface fee estate, that affect the Property;
      and
      taxes for 2007, and subsequent assessments for that and prior years due to
      change in land usage, ownership, or both.

    

    For
      value
      received and to secure payment of the Obligation, Grantor conveys the Property
      to Trustee in trust. Grantor warrants and agrees to defend the title to the
      Property, subject to the Other Exceptions to Conveyance and Warranty. On payment
      of the Obligation and all other amounts secured by this deed of trust, this
      deed
      of trust will have no further effect, and Lenders will release it at Grantor's
      expense.

    

    Clauses
      and Covenants

    

    
      	
              A.

            	
              Grantor's
                Obligations

            

    

    

    Grantor
      agrees to-

    

    1.    keep
      the
      Property in good repair and condition;

    

    2.    pay
      all
      taxes and assessments on the Property before delinquency;

    

    3.    defend
      title to the Property subject to the Other Exceptions to Conveyance and Warranty
      and preserve the lien's priority as it is established in this deed of
      trust;

    

    4.    maintain,
      in a form acceptable to Lenders, an insurance policy that contains:

    

    (i)
      comprehensive general liability insurance in an amount of no less than
      $3,000,000 per occurrence and (ii) casualty insurance covering the Improvements
      in an amount of no less than $2,000,000 ("Required Insurance Coverages"), issued
      by insurers reasonably acceptable to Lenders, and deliver evidence of the
      Required Insurance Coverages in a form reasonably acceptable to Lenders at
      least
      ten days before the expiration of the Required Insurance Coverages. Both
      policies shall name Lenders as an additional insured and the casualty insurance
      policy shall name Lenders as the loss payee thereunder; and contain such other
      coverage as Lenders may reasonably require; (iii) Lenders may obtain the
      above-described insurance coverages at Grantor's expense in the event that
      Grantor fails to obtain the required insurance coverages;

     

     

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          3

        
          

        

      

      
        
        

      

    

    5.    deliver
      the insurance policies to Lenders within ten days of the date of this deed
      of
      trust and deliver renewals to Lenders at least fifteen days before
      expiration;

    

    6.    obey
      all
      laws, ordinances, and restrictive covenants applicable to the
      Property;

    

    7.    keep
      any
      buildings occupied as required by the insurance policies;

    

    8.    if
      the
      lien of this deed of trust is not a first lien, pay or cause to be paid all
      prior lien notes and abide by or cause to be abided by all prior lien
      instruments; and

    

    9.    notify
      Lenders of any change of address. 

    

    
      	
              B.

            	
              Lenders'
                Rights

            

    

    

    1.    Lenders
      or Lenders' mortgage servicer may appoint in writing a substitute trustee,
      succeeding to all rights and responsibilities of Trustee.

    

    2.    If
      the
      proceeds of the Obligation are used to pay any debt secured by prior liens,
      Lenders are subrogated to all the rights and liens of the holders of any debt
      so
      paid.

    

    3.    If
      Lenders reasonably determine that repairs to the improvements are economically
      feasible, Lenders will make the insurance proceeds available to Grantor for
      repairs or replacement; otherwise, Lenders may apply any proceeds received
      under
      the insurance policies to reduce the Note.

    

    4.    Notwithstanding
      the terms of the Note to the contrary, and unless applicable law prohibits,
      all
      payments received by Lenders from Grantor with respect to the Obligation or
      this
      deed of trust may, at Lenders' discretion, be applied first to amounts payable
      under this deed of trust and then to amounts due and payable to Lenders with
      respect to the Obligation, to be applied to late charges, principal, or interest
      in the order Lenders in their discretion determine.

    

    5.    If
      Grantor fails to perform any of Grantor's obligations, Lenders may perform
      those
      obligations and be reimbursed by Grantor on demand for any amounts so paid,
      including attorney's fees, plus interest on those amounts from the dates of
      payment at the rate stated in the Note for matured, unpaid amounts. The amount
      to be reimbursed will be secured by this deed of trust.

    

    6.    If
      there
      is a default on the Obligation or if Grantor fails to perform any of Grantor's
      obligations and the default continues after any required notice of the default
      and the time allowed to cure, Lenders may-

    

    a.    declare
      the unpaid principal balance and earned interest on the Obligation immediately
      due;

     

     

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          4

        
          

        

      

      
        
        

      

    

    b.    direct
      Trustee to foreclose this lien, in which case Lenders or Lenders' agent will
      cause notice of the foreclosure sale to be given as provided by the Texas
      Property Code as then in effect; and

    

    c.    purchase
      the Property at any foreclosure sale by offering the highest bid and then have
      the bid credited on the Obligation.

    

    7.    Lenders
      may remedy any default without waiving it and may waive any default without
      waiving any prior or subsequent default.

    

    
      	
              C.

            	
              Trustee's
                Rights and Duties

            

    

    

    If
      directed by Lenders to foreclose this lien, Trustee will-

    

    1.    either
      personally or by agent give notice of the foreclosure sale as required by the
      Texas Property Code as then in effect;

    

    2.    sell
      and
      convey all or part of the Property "AS IS" to the highest bidder for cash with
      a
      general warranty binding Grantor, subject to the Prior Lien and to the Other
      Exceptions to Conveyance and Warranty and without representation or warranty,
      express or implied, by Trustee;

    

    3.    from
      the
      proceeds of the sale, pay, in this order-

    

    a.    expenses
      of foreclosure, including a reasonable commission to Trustee;

    

    b.    to
      Lenders, the full amount of principal, interest, attorney's fees, and other
      charges due and unpaid;

    

    c.    any
      amounts required by law to be paid before payment to Grantor; and

    

    d.    to
      Grantor, any balance; and

    

    4.    be
      indemnified, held harmless, and defended by Lenders against all costs, expenses,
      and liabilities incurred by Trustee for acting in the execution or enforcement
      of the trust created by this deed of trust, which includes all court and other
      costs, including attorney's fees, incurred by Trustee in defense of any action
      or proceeding taken against Trustee in that capacity.

    

    
      	
              D.

            	
              General
                Provisions

            

    

    

    1.    If
      any of
      the Property is sold under this deed of trust, Grantor must immediately
      surrender possession to the purchaser. If Grantor fails to do so, Grantor will
      become a tenant at sufferance of the purchaser, subject to an action for
      forcible detainer. 

     

     

    Deed
      of Trust 

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          5

        
          

        

      

      
        
        

      

    

    2.    Recitals
      in any trustee's deed conveying the Property will be presumed to be
      true.

    

    3.    Proceeding
      under this deed of trust, filing suit for foreclosure, or pursuing any other
      remedy will not constitute an election of remedies.

    

    4.    This
      lien
      will remain superior to liens later created even if the time of payment of
      all
      or part of the Obligation is extended or part of the Property is
      released.

    

    5.    If
      any
      portion of the Obligation cannot be lawfully secured by this deed of trust,
      payments will be applied first to discharge that portion.

    

    6.    Grantor
      assigns to Lenders all amounts payable to or received by Grantor from
      condemnation of all or part of the Property, from private sale in lieu of
      condemnation, and from damages caused by public works or construction on or
      near
      the Property. After deducting any expenses incurred, including attorney's fees
      and court and other costs, Lenders will either release any remaining amounts
      to
      Grantor or apply such amounts to reduce the Obligation. Lenders will not be
      liable for failure to collect or to exercise diligence in collecting any such
      amounts. Grantor will immediately give Lenders notice of any actual or
      threatened proceedings for condemnation of all or part of the
      Property.

    

    7.    Grantor
      assigns to Lenders absolutely, not only as collateral, all present and future
      rent and other income and receipts from the Property. Grantor warrants the
      validity and enforceability of the assignment. Grantor may as Lenders' licensee
      collect rent and other income and receipts as long as Grantor is not in default
      with respect to the Obligation or this deed of trust. Grantor will apply all
      rent and other income and receipts to payment of the Obligation and performance
      of this deed of trust, but if the rent and other income and receipts exceed
      the
      amount due with respect to the Obligation and deed of trust, Grantor may retain
      the excess. If Grantor defaults in payment of the Obligation or performance
      of
      this deed of trust, Lenders may terminate Grantor's license to collect rent
      and
      other income and then as Grantor's agent may rent the Property and collect
      all
      rent and other income and receipts. Lenders neither have nor assume any
      obligations as lessor or landlord with respect to any occupant of the Property.
      Lenders may exercise Lenders' rights and remedies under this paragraph without
      taking possession of the Property. Lenders will apply all rent and other income
      and receipts collected under this paragraph first to expenses incurred in
      exercising Lenders' rights and remedies and then to Grantor's obligations with
      respect to the Obligation and this deed of trust in the order determined by
      Lenders. Lenders are not required to act under this paragraph, and acting under
      this paragraph does not waive any of Lenders' other rights or remedies. If
      Grantor becomes a voluntary or involuntary debtor in bankruptcy, Lenders' filing
      a proof of claim in bankruptcy will be deemed equivalent to the appointment
      of a
      receiver under Texas law.

    

    

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          6

        
          

        

      

      
        
        

      

    

    8.    Interest
      on the debt secured by this deed of trust will not exceed the maximum amount
      of
      nonusurious interest that may be contracted for, taken, reserved, charged,
      or
      received under law. Any interest in excess of that maximum amount will be
      credited on the principal of the debt or, if that has been paid, refunded.
      On
      any acceleration or required or permitted prepayment, any such excess will
      be
      canceled automatically as of the acceleration or prepayment or, if already
      paid,
      credited on the principal of the debt or, if the principal of the debt has
      been
      paid, refunded. This provision overrides any conflicting provisions in this
      and
      all other instruments concerning the debt.

    

    9.    In
      no
      event may this deed of trust secure payment of any debt that may not lawfully
      be
      secured by a lien on real estate or create a lien otherwise prohibited by
      law.

    

    10.    When
      the
      context requires, singular nouns and pronouns include the plural.

    

    11.    The
      term
Note
      includes
      all extensions, modifications, and renewals of the Note and all amounts secured
      by this deed of trust.

    

    12.    Grantor
      represents to Lenders that no part of the Property is exempt as homestead from
      forced sale under the Texas Constitution or other laws.

    

    13.    Grantor
      agrees to furnish on Lenders' request evidence satisfactory to Lenders that
      all
      taxes and assessments on the Property have been paid prior to
      delinquency.

    

    14.    This
      deed
      of trust binds, benefits, and may be enforced by the successors in interest
      of
      all parties.

    

    15.    If
      Grantor and Borrower are not the same person, the term Grantor
      includes
      Borrower.

    

    16.    Grantor
      and each surety, endorser, and guarantor of the Obligation waive all demand
      for
      payment, presentation for payment, notice of intention to accelerate maturity,
      notice of acceleration of maturity, protest, and notice of protest, to the
      extent permitted by law.

    

    17.    Grantor
      agrees to pay reasonable attorney's fees, trustee's fees, and court and other
      costs of enforcing Lenders' rights under this deed of trust if this deed of
      trust is placed in the hands of an attorney for enforcement.

    

    18.    If
      any
      provision of this deed of trust is determined to be invalid or unenforceable,
      the validity or enforceability of any other provision will not be
      affected.

    

    19.    The
      term
Lenders
      include
      any mortgage servicer for Lenders.

    

    

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          7

        
          

        

      

      
        
        

      

    

    20.    Grantor
      represents that this deed of trust and the Note are given for the following
      purposes:

    

    The
      debt
      evidenced by the Note is in part payment of the purchase price of the Property;
      the debt is secured both by this deed of trust and by a vendor's lien on the
      Property, which is expressly retained in a deed to Grantor of even date. This
      deed of trust does not waive the vendor's lien, and the two liens and the rights
      created by this deed of trust are cumulative. Lenders may elect to foreclose
      under either of the liens without waiving the other or may foreclose under
      both.

     

    
      	 	
              RCI
                HOLDINGS, INC., a Texas corporation,

            
	 	 
	 	 
	 	
              /s/
                Eric Langan

            
	 	
              ERIC
                LANGAN, President

            

    

     

    
      	
              STATE
                OF TEXAS

            	
              )

            
	 	 
	
              COUNTY
                OF TARRANT

            	
              )

            

    

    

    This
      instrument was acknowledged before me on April
      23rd
      , 2007,
      by ERIC LANGAN, as the President of RCI HOLDINGS, INC , a Texas corporation,
      on
      behalf of said corporation.

    

    
      	 	
              /s/
                Drex Baker

            
	 	
              Notary
                Public, State of Texas

            
	 	
              My
                commission expires: 10/5/2008

            
	 	
              NOTARY
                SEAL

            

    

    

    AFTER
      RECORDING RETURN TO:

    

    Orth,
      Hrabal & Orth 

    2501
      Parkview Drive 

    Fort
      Worth, TX 76102 

    Tel:
      (817) 332-7103 

    Fax:
      (817) 870-2997

    

    

    Deed
      of Trust

    Security
      Agreement - Financing Statement

    
      
        
        

      

      
        Page
          8

        
          

        

      

      
        
        

      

    

     

    

    Lot
      6-A-R2, in Block 5, of ALTA MERE ADDITION, an addition to the City of Fort
      Worth, Tarrant County, Texas, according to the Map or Plat thereof recorded
      in
      Cabinet B, Slide 2751, Plat Records, Tarrant County, Texas.

    

     

     

    Exhibit
      "A"

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