Document:

Prepared by R.R. Donnelley Financial -- Preferred Stock Certificate

 EXHIBIT 4.2 
  
  
 
	
	 	 	
	

	 NUMBER
 	 	 [GRAPHIC]
 	 	 SHARES
 
	
	 	 	
	

	  	 	  	 	  
	
	 	 	
	

 
  
  
 VCG HOLDING CORP.

  
 AUTHORIZED CAPITALIZATION: FIFTY-ONE MILLION (51,000,000) SHARES, $.0001 PAR VALUE PER SHARE, CONSISTING OF FIFTY
MILLION (50,000,000) SHARES OF COMMON STOCK AND ONE MILLION (1,000,000) SHARES OF PREFERRED STOCK. 
  
  
 THIS CERTIFIES THAT
                                        
                                        
                                        
                                        
 is the 
 registered holder of
                                        
                                        
                                        
                                        
     Shares 
 of Preferred Stock, $.0001 par value per share, of VCG Holding Corp., fully paid and nonassessable, transferable only on the
books of the Corporation by the holder hereof in person or by Attorney upon surrender of this Certificate properly endorsed. 
  
 IN WITNESS WHEREOF, the said Corporation has caused this Certificate to be signed by its duly authorized officers and its Corporate Seal to be hereunto affixed
this ________________ day of _____________________ A.D. __________ 
  
  
 
	 
	 	 [SEAL]
 	 	 

	 Mary E. Bowles-Cook, Secretary
 	 	  	 	 Michael L. Ocello, PresidentPrepared by R.R. Donnelley Financial -- Stock Option & Stock Bonus Plan

 EXHIBIT 4.3 
  
 VCG HOLDING CORP. 
  
 STOCK OPTION AND STOCK BONUS PLAN 
  
 PURPOSES OF AND BENEFITS UNDER THE PLAN. This Stock Option and Stock Bonus Plan (the “Plan”) is intended to encourage stock
ownership by employees, officers, directors and consultants of VCG Holding Corp., its divisions, subsidiary corporations and parent corporation (the “Company”), so that they may acquire or increase their proprietary interest in the
Company, to: (i) induce qualified persons to become employees, officers, directors or consultants of the Company; (ii) reward employees, officers, directors and consultants for past services to the Company; and (iii) encourage such persons to remain
in the employ of or associated with the Company and to put forth maximum efforts for the success of the business of the Company. 
  
 The Plan was adopted by resolution of the Board of Directors on April 23, 2002. 
  
 It is intended
that options granted by the Committee pursuant to Section 4 of this Plan shall constitute “incentive stock options” (“Incentive Stock Options”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended,
and options granted by the Committee pursuant to Section 5 of this Plan shall constitute “non-qualified stock options” (“Non-qualified Stock Options”). 
  
 1.  DEFINITIONS.    The following definitions shall apply under this Plan: 
  
 (a)  “Board” means the Board of Directors of the Company. 
  
 (b)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (c)  “Committee” means a Committee appointed by the Board to oversee this Plan that is composed solely of two or more Non-Employee
Directors, as defined in Rule 16b-3(b)(3) or a sub-Committee, composed solely of two or more Non-Employee Directors, of a Committee of the Board. If no Committee has been appointed, the term “Committee” shall mean the Board. 

 
 (d)  “Common Stock” means the Company’s $.0001 par value common stock. 

 
 (e)  “Disability” means a Recipient’s inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than 12 months, or such other meaning ascribed
in Section 22(e)(3) or any successor provision of the Code. If the Recipient has a disability insurance policy, the term “Disability” shall be as defined therein; provided that said definition is not inconsistent with the meaning ascribed
in Section 22(e)(3) of the Code. 

 (f)  “Exchange Act” means the Securities Exchange Act of 1934, as amended.

  
 (g)  “Fair Market Value” per share as of a particular date means the last
sale price of the Common Stock as reported on a national securities exchange or on the Nasdaq National Market System or, if the quotation for the last sale reported is not available for the Common Stock, the closing price of the Common Stock as
reported by Nasdaq, or the average of the closing bid and ask prices reported on the electronic bulletin board or, if such quotations are unavailable, the value determined by the Committee in accordance with its discretion in making a bona fide,
good faith determination of fair market value. Fair Market Value shall be determined without regard to any restriction other than a restriction which, by its terms, will never lapse. In the case of Bonuses and/or Options granted with the
corresponding shares of common stock not covered by an effective registration statement, Fair Market Value may be determined by the Committee at a reasonable discount to reflect the restricted nature of the shares to be issued and the inability of
the Recipient to sell those shares promptly. 
  
 (h)  “Option” means either an
Incentive Stock Option or a Non-qualified Stock Option, or both of them. 
  
 (i)  “Option Price” means the purchase price of the shares of Common Stock covered by an Option determined in accordance with Section 6(c) hereunder. 
  
 (j)  “Parent” means any corporation which is a “parent corporation” as defined in Section 424(e) of the Code, with respect to
the Company. 
  
 (k)  “Plan” means this Stock Option and Stock Bonus Plan.

  
 (l)  “Recipient” means any person granted an Option or awarded a Bonus
hereunder. 
  
 (m)  “Securities Act” means the Securities Act of 1933, as amended
from time to time. 
  
 (n)  “Subsidiary” means any corporation which is a
“subsidiary corporation” as defined in Section 424(f) of the Code, with respect to the Company. 
  
 2.  ADMINISTRATION. 
  
 (a)  The Plan shall be
administered by the Committee. The Committee shall have the authority in its discretion, subject to and not inconsistent with the express provisions of the Plan, to administer the Plan and to exercise all the powers and authorities either
specifically conferred under the Plan or necessary or advisable in the administration of the Plan, including the authority to grant Options and Bonuses; to determine which Options shall be Incentive Stock Options and which shall be Non-qualified
Stock Options; to determine the vesting schedules and other restrictions, if any, relating to Options and Bonuses; to determine the Option Price; to determine the persons to whom, and the time or times at which, Options 
 

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 and Bonuses shall be granted; to determine the number of shares to be covered by each Option and Bonus; to determine Fair
Market Value per share; to determine whether or not Bonus shares and/or shares underlying Options are covered by an effective registration statement; to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan;
to determine the terms and provisions of the Option agreements (which need not be identical) entered into in connection with Options granted under the Plan; and to make all other determinations deemed necessary or advisable for the administration of
the Plan. 
  
 (b)  Options and Bonuses granted under the Plan shall be evidenced by duly
adopted resolutions of the Committee included in the minutes of the meeting at which they are adopted or in a unanimous written consent. 
  
 (c)  By resolution, the Committee may delegate to one or more executive officers the power to grant options or stock bonuses to employees, consultants or advisors of the Company; provided,
however, that grants to directors or executive officers of the Company, or any other person subject to Section 16 of the Exchange Act may not be made pursuant to such delegated authority. With respect to persons subject to Section 16 of the Exchange
Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or any successor regulation under the Exchange Act. To the extent any provision of this Plan or action by the Committee fails to so comply, it
shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. Any Option or Bonus granted hereunder which would subject or subjects the Recipient to liability under Section 16(b) of the Exchange Act is void AB
INITIO as if it had never been granted. 
  
 (d)  No member of the Committee or the Board,
nor any agent, shall be liable for any action taken or determination made in good faith with respect to the Plan or any Option or Bonus granted hereunder. 
  
 (e)  The Committee may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and
the Committee or any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan. 
  
 3.  ELIGIBILITY. 
  
 (a)  Subject to certain limitations hereinafter set forth, Options and Bonuses may be granted to employees, officers, directors and consultants of the Company. In determining the persons to
whom Options or Bonuses shall be granted and the number of shares to be covered by each Option or Bonus, the Committee shall take into account the duties of the respective persons, their present and potential contributions to the success of the
Company and such other factors as the Committee shall deem relevant to accomplish the purposes of the Plan. 
 

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 (b)  A Recipient shall be eligible to receive more than one grant of an Option or Bonus during
the term of the Plan, on the terms and subject to the restrictions herein set forth. 
  
 4.  INCENTIVE
STOCK OPTIONS.    Options granted pursuant to this Section 4 are intended to constitute Incentive Stock Options and shall be subject to the following special terms and conditions, in addition to the general terms and
conditions specified in Section 6 hereof. Only employees of the Company (as the term “employees” is defined for the purposes of the Code) shall be entitled to receive Incentive Stock Options. 
  
 (a)  The aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the
shares of Common Stock with respect to which Incentive Stock Options granted under this and any other plan of the Company or any Parent corporation or Subsidiary corporation are exercisable for the first time by a Recipient during any calendar year
may not exceed the amount set forth in Section 422(d) of the Code. 
  
 (b)  Incentive Stock
Options granted under this Plan are intended to satisfy all requirements for incentive stock options under Section 422 of the Code and the Treasury Regulations thereunder and, notwithstanding any other provision of this Plan, the Plan and all
Incentive Stock Options granted under it shall be so construed, and all contrary provisions shall be so limited in scope and effect and, to the extent they cannot be so limited they shall be void. 
  
 (c)  Except as provided herein, or in the Stock Option Agreement approved by the Committee for a specific
Recipient, an Incentive Stock Option may not be exercised unless the Recipient then is an employee of the Company or a Subsidiary or Parent of the Company, and unless the Recipient has remained continuously as an employee of the Company since the
date of grant of the Option. The provisions set forth herein will govern unless otherwise determined by the Committee. 
  
 (d)  If the Recipient ceases to be an employee of the Company or a Subsidiary or Parent of the Company (other than by reason of death, disability or retirement), other than for cause, all Options theretofore
granted to such Recipient but not theretofore exercised shall terminate three months after the date the Recipient ceased to be an employee of the Company. 
  
 5.  NON-QUALIFIED STOCK OPTIONS.    Options granted pursuant to this Section 5 are intended to constitute Non-qualified Stock Options and shall be subject only to
the general terms and conditions specified in Section 6 hereof. 
  
 6.  TERMS AND CONDITIONS OF
OPTIONS.    Each Option granted pursuant to the Plan shall be evidenced by a written Option agreement between the Company and the Recipient, which agreement shall be in substantially the form of Exhibit A hereto as modified
from time to time by the Committee in its discretion, and which shall comply with and be subject to the following terms and conditions: 
 

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 (a)  NUMBER OF SHARES.    Each Option agreement shall state the
number of shares of Common Stock covered by the Option. 
  
 (b)  TYPE OF
OPTION.    Each Option agreement shall specifically identify the portion, if any, of the Option which constitutes an Incentive Stock Option and the portion, if any, which constitutes a Non-qualified Stock Option.

  
 (c)  OPTION PRICE.    Each Option agreement shall state the
Option Price, which shall be determined by the Committee subject only to the following restrictions: 
  
 (i)  The Option Price of any Incentive Stock Option shall be not less than 100% of the Fair Market Value per share on the date of grant of the Option; provided, however, that any Incentive Stock Option granted under the
Plan to a person owning more than ten percent of the total combined voting power of the Common Stock shall have an Option Price of not less than 110% of the Fair Market Value per share on the date of grant of the Incentive Stock Option.

  
 (ii)  Any Non-qualified Stock Option granted under the Plan shall be at a price not
less than 85% of the Fair Market Value per share on the date of grant. 
  
 (iii)  The
Option Price shall be subject to adjustment as provided in Section 6(i) hereof. 
  
 (d)  TERM OF OPTION.    Each Option agreement shall state the period during and times at which the Option shall be exercisable; provided, however: 
  
 (i)  The date on which the Committee adopts a resolution expressly granting an Option shall be considered the
day on which such Option is granted, unless a future date is specified in the resolution; provided, however, the Recipient shall have no rights under the grant until the Recipient has executed an Option agreement with respect to such Option.

  
 (ii)  Except as further restricted in paragraph 6(d)(iii), the exercise period shall
not exceed ten years from the date of grant of the Option. 
  
 (iii)  Incentive Stock
Options granted to a person owning more than ten percent of the total combined voting power of the Common Stock of the Company shall be exercisable for no more than five years. 
  
 (iv)  The Committee shall have the authority to accelerate or extend the exercisability of any outstanding Option at such time and under such
circumstances as it, in its sole discretion, deems appropriate. No exercise period may be extended to increase the term of the Option beyond ten years from the date of the grant, or five years in the case of Incentive Stock Options granted to any
person owning more than ten percent of the total combined voting power of the Common Stock of the Company. 
 

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 (v)  The exercise period shall be subject to earlier termination as provided in Sections 6(f)
and 6(g) hereof and, furthermore, shall be terminated upon surrender of the Option by the holder thereof if such surrender has been authorized in advance by the Committee. 
  
 (e)  METHOD OF EXERCISE AND MEDIUM AND TIME OF PAYMENT.  
  
 (i)  An Option may be exercised as to any or all whole shares of Common Stock as to which it then is exercisable subject to any applicable vesting
provisions or other restrictions. 
  
 (ii)  Each exercise of an Option granted hereunder,
whether in whole or in part, shall be by written notice to the secretary of the Company designating the number of shares as to which the Option is being exercised, and shall be accompanied by payment in full of the Option Price for the number of
shares so designated, together with any written statements required by any applicable securities laws. 
  
 (iii)  The Option Price shall be paid in cash or in shares of Common Stock having a Fair Market Value equal to such Option Price and, subject to approval of the Committee, may be effected in whole or in part (A) with monies
received from the Company at the time of exercise as a compensatory cash payment, or (B) with monies borrowed from the Company pursuant to repayment terms and conditions as shall be determined from time to time by the Committee, in its discretion,
separately with respect to each exercise of an Option and each Recipient; provided, however, that each such method and time for payment and each such borrowing and the terms and conditions of repayment shall be permitted by and be in compliance with
applicable law. 
  
 (iv)  The Committee shall have the sole and absolute discretion to
determine whether or not property other than cash or Common Stock may be used to purchase the shares of Common Stock hereunder and, if so, to determine the value of the property received. 
  
 (v)  Applicable withholding taxes shall be paid in the manner specified by Section 9 hereof. 
  

(f)  TERMINATION.  
  
 (i)  Unless otherwise provided with respect to a particular Option, if the Recipient ceases to be an employee, officer, director or consultant of the Company or a Subsidiary or Parent to the
Company other than by reason of death, disability or retirement, all Options theretofore granted to such Recipient but not theretofore exercised shall terminate three months after the date the Recipient ceases to be an employee, officer, director or
consultant of the Company, and shall terminate upon the date of termination as an employee, officer, director and/or consultant terminated for cause. 
 

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 (ii)  Nothing in the Plan or in any Option granted hereunder shall confer upon a Recipient any
right to continue in the employ of or to continue any other relationship with the Company nor interfere in any way with the right of the Company to terminate such employment or other relationship between a Recipient and the Company. 

 
 (g)  DEATH, DISABILITY OR RETIREMENT OF RECIPIENT.    If a Recipient shall
die while an employee, officer, director or consultant of the Company, or if the Recipient’s employment, officer or director status or consulting relationship shall terminate by reason of Disability or retirement, all Options theretofore
granted to such Recipient, whether or not otherwise exercisable, unless earlier terminated in accordance with their terms, may be exercised by the Recipient or by the Recipient’s estate or other permitted assignee, at any time within one year
after the date of death, Disability or retirement of the Recipient; provided, however, that in the case of Incentive Stock Options such one-year period shall be limited to three months in the case of retirement. 
  
 (h)  TRANSFERABILITY RESTRICTION 
  
 (i)  Options granted under the Plan shall not be transferable other than by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, or the rules thereunder. Options may be exercised during the lifetime of the Recipient only by the Recipient, and thereafter
only by his legal representative or permitted assignee. 
  
 (ii)  Any attempted sale,
pledge, assignment, hypothecation or other transfer of an Option contrary to the provisions hereof and the levy of any execution, attachment or similar process upon an Option shall be null and void and without force or effect and shall result in a
termination of the Option. 
  
 (iii)  (A) As a condition to the transfer of any shares of
Common Stock issued upon exercise of an Option granted under this Plan, the Company may require an opinion of counsel, satisfactory to the Company, to the effect that such transfer will not be in violation of the Securities Act or any other
applicable securities laws or that such transfer has been registered under federal, state and all other applicable securities laws. (B) Further, the Company shall be authorized to refrain from delivering or transferring shares of Common Stock issued
under this Plan until the Committee determines that such delivery or transfer will not violate applicable securities laws and the Recipient has tendered to the Company any federal, state or local tax owed by the Recipient as a result of exercising
the Option or disposing of any Common Stock when the Company has a legal liability to satisfy such tax. (C) The Company shall not be liable for damages due to delay in the delivery or issuance of any stock certificate for any reason whatsoever,
including, but not limited to, a delay caused by listing requirements of any securities exchange or the National Association of Securities Dealers, or any registration requirements under the Securities Act, the Exchange Act, or under any other state
or federal law, rule or regulation. (D) The Company is under no obligation to take any action or incur any expense in order to register or qualify the delivery or transfer of 
 

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 shares of Common Stock under applicable securities laws or to perfect any exemption from such registration or
qualification. (E) Furthermore, the Company will not be liable to any Recipient for failure to deliver or transfer shares of Common Stock if such failure is based upon the provisions of this paragraph. 
  
 (i)  EFFECT OF CERTAIN CHANGES. 
  
 (i)  If there is any change in the number of shares of Common Stock through the declaration of stock dividends, or through a recapitalization
resulting in stock splits, or combinations or exchanges of such shares, the number of shares of Common Stock available for Options and the number of such shares covered by outstanding Options, and the exercise price per share of the outstanding
Options, shall be proportionately adjusted by the Committee to reflect any increase or decrease in the number of issued shares of Common Stock; provided, however, that any fractional shares resulting from such adjustment shall be eliminated.

  
 (ii)  In the event of the proposed dissolution or liquidation of the Company, or any
corporate separation or division, including, but not limited to, split-up, split-off or spin-off, merger or consolidation of the Company with another corporation, or any sale or transfer by the Company of all or substantially all its assets or any
tender offer or exchange offer for or the acquisition, directly or indirectly, by any person or group for more than 50% of the then outstanding voting securities of the Company, the Committee may provide that the holder of each Option then
exercisable shall have the right to exercise such Option (at its then current Option Price) solely for the kind and amount of shares of stock and other securities, property, cash or any combination thereof receivable upon such dissolution,
liquidation, corporate separation or division, merger or consolidation, sale or transfer of assets or tender offer or exchange offer, by a holder of the number of shares of Common Stock for which such Option might have been exercised immediately
prior to such dissolution, liquidation, or corporate separation or division, merger or consolidation, sale or transfer of assets or tender offer or exchange offer; or in the alternative the Committee may provide that each Option granted under the
Plan shall terminate as of a date fixed by the Committee; provided, however, that not less than 30 days’ written notice of the date so fixed shall be given to each Recipient, who shall have the right, during the period of 30 days preceding such
termination, to exercise the Option to the extent then exercisable. To the extent that Section 422(d) of the Code would not permit the provisions of this paragraph to apply to any outstanding Incentive Stock Options, such Incentive Stock Options
shall immediately upon the occurrence of the event described in this paragraph, be treated for all purposes of the Plan as Non-qualified Stock Options and shall be immediately exercisable as such as provided in this paragraph. 

 
 (iii)  Paragraph (ii) of this Section 6(i) shall not apply to a merger or consolidation in which the
Company is the surviving corporation and shares of Common Stock are not converted into or exchanged for stock, securities of any other corporation, cash or any other thing of value. Notwithstanding the preceding sentence, in case of any
consolidation or merger of another corporation into the Company in which the Company is the surviving corporation and in which there is a reclassification or change (including a change which results 
 

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 in the right to receive cash or other property) of the shares of Common Stock (other than a change in par value, or from
par value to no par value, or as a result of a subdivision or combination, but including any change in such shares into two or more classes or series of shares), the Committee may provide that the holder of each Option then exercisable shall have
the right to exercise such Option solely for the kind and amount of shares of stock and other securities (including those of any new direct or indirect Parent of the Company), property, cash or any combination thereof receivable upon such
reclassification, change, consolidation or merger by the holder of the number of shares of Common Stock for which such Option might have been exercised. 
  
 (iv)  If there is a change in the Common Stock of the Company as presently constituted, which is limited to a change of all of its authorized
shares with par value into the same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the Common Stock within the meaning of the Plan. 
  
 (v)  To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments
shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive, provided that each Incentive Stock Option granted pursuant to this Plan shall not be adjusted in a manner that causes such option to fail to
continue to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code, except as otherwise provided in Section 6(i)(ii) hereof. 
  
 (vi)  Except as expressly provided in this Section 6(i), the Recipient shall have no rights by reason of any subdivision or consolidation of
shares of stock of any class or the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class or by reason of any dissolution, liquidation, merger, or consolidation or split-up, split-off or
spin-off of assets or stock of another corporation; and any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to the Option. The grant of an Option under the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes
of its capital or business structures or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or part of its business or assets. 
  
 (j)  RIGHTS AS SHAREHOLDER—NON-DISTRIBUTIVE INTENT. 
  
 (i)  Neither a person to whom an Option is granted nor a permitted assignee shall be deemed to be the holder of, or to have any rights of a holder
with respect to, any shares of Common Stock subject to such Option until after the Option is exercised and the shares are issued to the person exercising such Option. 
  
 (ii)  Upon exercise of an Option at a time when there is no registration statement in effect under the Securities Act relating to the shares
issuable upon 
 

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 exercise, shares may be issued to the Recipient only if the Recipient represents and warrants in writing to the Company
that the shares purchased are being acquired for investment and not with a view to the distribution thereof and provides the Company with sufficient information to establish an exemption from the registration requirements of the Securities Act and
all other applicable securities laws. 
  
 (iii)  No shares shall be issued upon the
exercise of an Option unless and until there shall have been compliance with any then applicable requirements of the Securities and Exchange Commission, or any other regulatory agencies having jurisdiction over the Company or the shares.

  
 (iv)  No adjustment shall be made for dividends (ordinary or extraordinary, whether in
cash, securities or other property) or distribution or other rights for which the record date is prior to the date a stock certificate is issued to the Recipient is issued, except as provided in Section 6(i) hereof. 
  
 (k)  OTHER PROVISIONS.    Option agreements evidencing Options granted under the Plan
shall contain such other provisions, including, without limitation, the imposition of restrictions upon the exercise of an Option, and, in the case of an Incentive Stock Option, the inclusion of any condition not inconsistent with such Option
qualifying as an Incentive Stock Option, as the Committee shall deem advisable. 
  
 7.  STOCK
RESERVED. 
  
 (a)  The stock subject to Options or Bonuses hereunder shall be shares of
Common Stock. Such shares, in whole or in part, may be authorized but unissued shares or shares that shall have been or that may be reacquired by the Company. The aggregate number of shares of Common Stock as to which Options and Bonuses may be
granted from time to time under the Plan (the “Available Shares”) initially shall not exceed 700,000 shares. The number of Available Shares shall be subject to adjustment as provided in Section 6(i) hereof. 
  
 (b)  If any Option outstanding under the Plan for any reason expires or is terminated without having been
exercised in full, or if any Bonus granted is forfeited because of vesting or other restrictions imposed at the time of grant, the shares of Common Stock allocable to the unexercised portion of such Option or the forfeited portion of the Bonus shall
become available for subsequent grants of Options and Bonuses under the Plan, unless the Plan shall have been terminated. 
  
 8.  GRANT OF STOCK BONUSES.    In addition to, or in lieu of, the grant of an Option, the Committee may grant Bonuses of Common Stock. 
  
 (a)  At the time of grant of a Bonus, the Committee may impose a vesting period of up to five years, and such other restrictions which it deems
appropriate. Unless otherwise directed by the Committee at the time of grant of a Bonus, the Recipient shall be considered a shareholder of the Company as to the Bonus shares which have vested in the Recipient at any time regardless of any
forfeiture provisions which have not yet arisen. 
 

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 (b)  The grant of a Bonus and the issuance and delivery of shares of Common Stock pursuant
thereto shall be subject to approval by the Company’s counsel of all legal matters in connection therewith, including compliance with the requirements of the 1933 Act, the 1934 Act, other applicable securities laws, rules and regulations, and
the requirements of any stock exchanges or other services upon which the Common Stock then may be listed or quoted. Any certificates prepared to evidence Common Stock issued pursuant to a Bonus grant shall bear legends as the Company’s counsel
may seem necessary or advisable. Included among the foregoing requirements, but without limitation, any Recipient of a Bonus at a time when a registration statement relating thereto is not effective under the 1933 Act shall execute a Subscription
Agreement in a form acceptable to the Company. 
  
 9.  AGREEMENT BY RECIPIENT REGARDING WITHHOLDING
TAXES.    Each Recipient agrees that the Company, to the extent permitted or required by law, shall deduct a sufficient number of shares due to the Recipient upon exercise of the Option or grant of a Bonus to allow the
Company to pay federal, state and local taxes of any kind required by law to be withheld upon the exercise of such Option or payment of such Bonus from any payment of any kind otherwise due to the Recipient. The Company shall not be obligated to
advise any Recipient of the existence of any tax or the amount which the Company will be so required to withhold. 
  
 10.  TERM OF PLAN.    Options and Bonuses may be granted under this Plan from time to time until April 23, 2012, which is ten years from the date the Plan was originally adopted by the Board.

  
 11.  AMENDMENT AND TERMINATION OF THE PLAN.    The Committee at any time and
from time to time may suspend, terminate, modify or amend the Plan. Except as provided in Section 6 hereof, no suspension, termination, modification or amendment of the Plan may adversely affect any Option or Bonus previously granted, unless the
written consent of the Recipient is obtained. 
  
 12.  ASSUMPTION.    Subject to
Section 6(i) hereof, the terms and conditions of any outstanding Options granted under this Plan shall be assumed by, be binding upon and shall inure to the benefit of any successor corporation to the Company and continue to be governed by, to the
extent applicable, the terms and conditions of this Plan. Such successor corporation may but shall not be obligated to assume this Plan. 
  
 13.  TERMINATION OF RIGHT OF ACTION.    Every right of action arising out of or in connection with the Plan by or on behalf of the Company, or by any shareholder of the Company against
any past, present or future member of the Board, or against any employee, or by an employee (past, present or future) against the Company, irrespective of the place where an action may be brought and of the place of residence of any such
shareholder, director or employee, will cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action is alleged to have risen or such shorter period as may be provided by law.

 

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 14.  TAX LITIGATION.    The Company shall have the right, but not the obligation, to
contest, at its expense, any tax ruling or decision, administrative or judicial, on any issue which is related to the Plan and which the Committee believes to be important to holders of Options or Common Stock issued pursuant to Bonuses granted
under the Plan and to conduct any such contest or any litigation arising therefrom to a final decision. 
  
 15.  SHAREHOLDER APPROVAL.    If this Plan is not approved by the shareholders of the Company within 12 months following the date the Plan was approved by the Board as required by Section
422(b)(1) of the Code, this Plan and the Options granted hereunder shall be and remain effective for all Recipients, but the reference to Incentive Stock Options herein shall be deleted and all options granted hereunder shall be Non-qualified Stock
Options pursuant to Section 5 hereof. 
 

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 EXHIBIT A 
  
 FORM OF 
  
 STOCK OPTION AGREEMENT

  
 STOCK OPTION AGREEMENT made as of this    day
of        , 20    , between VCG Holding Corp., a Colorado corporation (the “Company”),
and                (the “Recipient”). 
  
 In accordance with its Stock Option and Stock Bonus Plan (the “Plan”), a copy of which has been provided to the Recipient and is incorporated herein by reference, the Company desires, in connection with the services of the
Recipient, to provide the Recipient with an opportunity to acquire $.0001 par value common stock (“Common Stock”) of the Company on favorable terms and thereby increase the Recipient’s proprietary interest in the Company and as
incentive to put forth maximum efforts for the success of the business of the Company. All capitalized terms not otherwise defined herein shall be as defined in the Plan. 
  
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein set forth and other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the Company and the Recipient agree as follows: 
  
 1.  CONFIRMATION OF GRANT OF OPTION; NATURE OF OPTION.    Pursuant to a determination of the Committee (as defined in the Plan) made
on                , 20    (the “Date of Grant”), the Company, subject to the terms of the Plan and of this Agreement, confirms that the
Recipient irrevocably has been granted on the Date of Grant, as a matter of separate inducement and agreement, and in addition to and not in lieu of salary or other compensation for services, [AN INCENTIVE/A NON-QUALIFIED] Stock Option pursuant to
Section [4/5] of the Plan (the “Option”) to purchase an aggregate of        shares of Common Stock on the terms and conditions herein set forth, subject to adjustment as provided in Paragraph 9
hereof. The holder of the Option will not have any rights to dividends or any other rights of a shareholder with respect to any shares of Common Stock subject to the Option until such shares shall have been purchased through the exercise of the
Option and have been evidenced on the stock transfer records of the Company maintained by the Company’s transfer agent. 
  
 2.  OPTION PRICE.    The Option Price per share of Common Stock covered by the Option will be $        (the “Option
Price”) subject to adjustment as provided in Paragraph 9 hereof. 
  
 3.  VESTING OF
OPTION.    [This Option shall vest as to 20% of the shares covered hereby on the one year anniversary of the Date of Grant. Thereafter, this Option shall 

 vest as to an additional 20% of the shares covered hereby, cumulatively, on the second, third, fourth and fifth
anniversary dates of the Date of Grant.] 
  
 4.  EXERCISE OF
OPTION.    Except as otherwise provided in Section 6 of the Plan and Paragraph 3 above, this Option may be exercised in whole or in part at any time during the term of the Option, provided, however, no portion of this Option
shall be exercisable after the expiration of the term thereof. The Option may be exercised, by notice and payment to the Company as provided in Paragraph 11 hereof and Section 6(e) of the Plan, subject to the limitations of Paragraph 12 below.

  
 5. TERM OF OPTION.    The term of the Option will be
through                ,        , subject to earlier termination or cancellation as provided in this Agreement or the Plan.

  
 6.  TRANSFERABILITY RESTRICTION.    The Option may not be
assigned, transferred or otherwise disposed of, or pledged or hypothecated in any way (whether by operation of law or otherwise) except in strict compliance with Section 6(h) of the Plan. Any assignment, transfer, pledge, hypothecation or other
disposition of the Option or any attempt to make any such levy of execution, attachment or other process will cause the Option to terminate immediately upon the happening of any such event, provided, however, that any such termination of the Option
under the foregoing provisions of this Paragraph 6 will not prejudice any rights or remedies which the Company may have under this Agreement or otherwise. 
  
 7.  EXERCISE UPON TERMINATION.    The Recipient’s rights to exercise this Option upon termination of employment or
cessation as an officer, director or consultant shall be as set forth in the Plan. 
  
 8.  DEATH, DISABILITY OR RETIREMENT OF RECIPIENT.    The Recipient’s rights to exercise this Option upon the death, disability or retirement of the Recipient shall be as set forth in Section
6(g) of the Plan. 
  
 9.  ADJUSTMENTS.    The Option shall be
subject to adjustment upon the occurrence of certain events as set forth in Section 6(i) of the Plan. 
  
 10.  NO REGISTRATION OBLIGATION.    The Recipient understands that the Option is not registered under the Securities Act of 1933, as amended (the “Securities Act”) and the Company has no
obligation to register under the Securities Act the Option or any of the shares of Common Stock subject to and issuable upon the exercise of the Option, although it may do so from time to time. The Recipient represents that the Option is being
acquired by him for investment and acknowledges that all certificates for the shares issued upon exercise of the Option will bear the substantially the following legend unless such shares are registered under the Securities Act prior to their
issuance: 
 

 2 

 The shares represented by this Certificate have not been registered under the Securities Act of 1933 (the
“Securities Act”), and are “restricted securities” as that term is defined in Rule 144 under the Securities Act. The shares may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration
statement under the Securities Act or pursuant to an exemption from registration under the Securities Act, the availability of which is to be established to the satisfaction of the Company. 
  
 The Recipient further understands and agrees that the Option may be exercised only if at the time of such exercise there is an effective registration under the Securities
Act or the Recipient and the Company are able to establish the existence of an exemption from registration under the Securities Act and all other applicable securities laws. 
  
 11.  NOTICES.    Each notice relating to this Agreement will be in writing and delivered in person or by certified mail
to the proper address. Notices to the Company shall be addressed to Micheal Ocello, President, VCG Holding Corp., 1601 W. Evans Avenue, Denver, Colorado 80223. Notices to the Recipient or other person or persons then entitled to exercise the Option
shall be addressed to the Recipient or such other person or persons at the Recipient’s address below specified. Anyone to whom a notice may be given under this Agreement may designate a new address by notice to that effect given pursuant to
this Paragraph 11. 
  
 12.  APPROVAL OF COUNSEL.    The exercise
of the Option and the issuance and delivery of shares of Common Stock pursuant thereto shall be subject to approval by the Company’s counsel of all legal matters in connection therewith, including compliance with the requirements of the
Securities Act, the Securities Exchange Act of 1934, as amended, applicable securities laws, the rules and regulations thereunder, and the requirements of any national securities exchange or association upon which the Common Stock then may be
listed. 
  
 13.  BENEFITS OF AGREEMENT.    This Agreement will
inure to the benefit of and be binding upon each successor and assign of the Company. All obligations imposed upon the Recipient and all rights granted to the Company under this Agreement will be binding upon the Recipient’s heirs, legal
representatives and successors. 
  
 14.  GOVERNMENTAL AND OTHER
REGULATIONS.    The exercise of the Option and the Company’s obligation to sell and deliver shares upon the exercise of rights to purchase shares is subject to all applicable federal, state and other laws, rules and
regulations, and to such approvals by any regulatory or governmental agency which, in the opinion of counsel for the Company, may be required. 
 

 3 

 15.  CONFLICTS WITH THE PLAN.    If any provision in this Agreement
conflicts with a provision in the Plan, the Plan shall govern. 
  
 Executed in the name and on behalf of the Company
by one of its duly authorized officers to be effective as of the date first above written. 
  
 
	 VCG HOLDING CORP. 
 
	 
	 By:
 	 	  
 

	  	 	 Micheal L. Ocello,
 President
 

 
 

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