Document:

Exhibit
10.5

EXECUTION COPY - 1

BUSINESS LEASE

THIS LEASE (“Lease”),
dated the 14 day of Sept., 2007, is by and between K & R
Properties, Inc., a South Carolina Corporation (“Landlord”) and KenKevII Inc.,
a Maine corporation (“Tenant”).

1.                                      DEFINITIONS.  Unless otherwise indicated, capitalized terms
used in this Lease shall have the meanings set forth below:

(a)                      “Additional Rent” shall mean
all charges payable by Tenant under this Lease other than Minimum Rent.

(b)                     “Building” shall mean
the building in which the Demised Premises is located.

(c)                      “Operating Costs” shall mean all costs incurred to insure,
maintain, repair and replace all elements of the Premises.  Operating
Costs include, but are not limited to, costs and expenses for the following:
maintenance, repair and replacement (as necessary) of all structural and
mechanical components of the Building including, but not limited to, exterior
and interior walls, the roof , foundation and all components of the parking
lots, driveways and sidewalks surrounding the Building and located on the
Premises; gardening and landscaping; utilities, water and storm sewer charges;
maintenance of signs; fire alarm monitoring service; premiums for liability,
property damage, fire and other types of insurance on the Premises and worker’s
compensation insurance; all property taxes and assessments levied on or
attributable to the Premises; all real and personal property taxes levied on or
attributable to such property used in connection with the maintenance and
operation of the Premises; fees for required licenses and permits; repairing,
resurfacing, painting, lighting, cleaning, refuse removal, security, if any,
and similar items.  Operating
Costs shall also include any parking charges, utilities surcharges, or other
costs levied, assessed or imposed on the Premises by or at the direction of any
governmental authority in connection with the use or occupancy of the Premises
or the parking facilities included in the Premises, or pursuant to any
covenants, conditions or restrictions to which the Premises are subject.

(d)                     “Effective Date” shall mean September 14, 2007 beginning at
11:00 am.

(e)                      “Guarantor:  shall mean VCG Holding Corp. a Colorado
corporation, the sole owner of Tenant.

(f)                        “Hazardous Material”
shall mean any hazardous, radioactive or toxic substance, material or waste,
including, but not limited to, those substances, materials and wastes (whether
or not mixed, commingled or otherwise combined with other substances, materials
or wastes) listed in the United States Department Transportation Hazardous
Material Table (49 CFR 172.101) or by the Environmental Protection Agency as
hazardous substances (40 CFR Part 302) and amendments thereto, or such
substances, materials and wastes which are or become regulated under any applicable
local, state or federal law including, without limitation, any material, waste
or substance which is (i) a petroleum product, crude oil or any fraction
thereof, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) designated as a “hazardous
substance” pursuant to Section 311 of the Clean Water Act, 33 U.S.C. Section
1251, et seq. (33 U.S.C. Section 1321) or listed pursuant to Section 307 of the
Clean Water Act (33 U.S.C Section 1317), (v) defined as a “hazardous waste”
pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42
U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (vi) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.C. Section 9601, et seq. (42 U.S.C.
Section 9601).

(h)                     “Demised Premises” or “Premises” shall mean all improvements
located on the property depicted on the Site Plan, attached as Exhibit A, for
property located at 200 Riverside Street, Portland, Maine, including any
parking, driveways, sidewalks, alleyways or other appurtenances thereto. Said
Demised Premises shall include the roof, exterior walls and structural members
thereof, together with utility lines, ducting, pipes, and the like to serve
adjoining Premises other than those specifically herein Demised.

(i)                         “Lease Term” shall mean a period of 25 years and 0 months
beginning on the Rent Commencement Date, plus any extended term granted by
Landlord and timely and properly elected by Tenant pursuant to subparagraph
3(b) below.

(j)                         “Lease Year” shall mean a period of twelve consecutive
months during the Lease Term which begins on the first day of the first
calendar month after the Rent Commencement Date or any anniversary thereof.

(k)                      “Minimum Rent” shall mean the base rental for the Demised
Premises set forth in subparagraph 5(a) below.

(l)                         “Permitted Use” shall mean operation of a restaurant/bar
with Nude Activities and no other uses.

(m)                   “Property” shall mean that certain real property owned by
Landlord upon which the Premises are is located.

(n)                     “Real Property Taxes” shall mean (i) any fee, license fee, license tax, business license fee, commercial
rental tax, levy, charge, assessment, penalty or tax imposed by any taxing
authority against the land and buildings comprising the Premises, (ii) any tax
or charge for fire protection, streets, sidewalks, road maintenance, refuse or
other services provided to the Property by any governmental agency, (iii) any
tax imposed upon this transaction or based upon a re-assessment of the Property
due to a transfer of all or part of Landlord’s interest in the Property.  In the event that it shall not be lawful for
Tenant and Landlord to apportion such future taxes, if any, then in that event,
the minimum rent payable to Landlord under this Lease shall be revised to net
Landlord the same rental after imposition of any such future tax upon Landlord
as would have been payable to Landlord prior to the impositions of any such
tax. “Real Property Tax” does not, however, include Landlord’s federal or state
income, franchise, inheritance or estate taxes.

(o)                     “Rent” shall mean Minimum Rent and any Additional Rent.

(p)                     “Rent Commencement Date” shall mean that date that Tenant’s
obligation to pay rent, which shall commence upon the date the Tenant obtains
possession under this Lease. For the period between the date Tenant obtains
possession of the premise pursuant to this Lease and September 30, 2007, the
rent will be pro-rated and payable with the first rental payment which shall be
due on October 1, 2007.

(q)                      “Site Plan” shall mean the site plan for the Property
attached hereto as Exhibit A.

2.                                      LEASE OF  DEMISEDD PREMISES.  Landlord hereby leases the Demised 

Landlord’s Initials KW

Tenant’s Initials TL

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Premises to Tenant, and Tenant hereby leases the
Demised Premises from Landlord, subject to the terms, covenants and conditions
herein set forth, and Tenant covenants as a material part of the consideration
for this Lease to keep and perform each and all of such terms, covenants and
conditions by Tenant to be kept and performed.

3.                                      LEASE
TERM/OPTION TO RENEW.

(a)                      The Lease
Term shall begin at twelve o’clock noon on the Rent Commencement Date and shall
end at twelve o’clock noon on the last day of the Twenty Fifth Lease Year.  Promptly after the Rent Commencement Date,
Landlord and Tenant shall execute a Certificate of Commencement setting forth
the Rent Commencement Date and the expiration date of the Lease Term.

(b)                     Upon the
condition that Tenant (a) is not in default at the time of the exercise of any
option contained in this subparagraph, and (b) has, during the Lease Term and
Option Periods, fulfilled all of Tenant’s obligations completely and in a
timely manner, Landlord hereby grants to Tenant two (2) separate Options to
Renew the Lease Term for two (2) separate additional five (5) year periods upon
the same and terms and conditions as set forth in this Lease (each an “Option”),
except that the Rent payable during each Option Period will be as described in
Section 4 below.  Unless Tenant provides
the Landlord with written notice of its intention not to renew the Lease at
least Six (6) months prior to the end of either the Lease Term or any Extended
Term of this Lease, the lease shall automatically be extended for the Renewal
Term.

4.                                      MINIMUM RENT.

During the term hereof,
Tenant agrees to pay the Landlord at the address as shown herein, or at such
other place as the Landlord may from time to time designate in writing, “Minimum
Rent” for the Demised Premises. Said rent shall be payable in advance on the
first of each month, without deduction or set-off, except as provided in a
Seller Indemnification Agreement executed by Landlords affiliate and the
Guarantor, without notice or demand, as follows: OHE HUNDRED
SEVENTY SEVEN THOUSAND ($177,000.00) DOLLARS PER ANNUM, payable in
equal monthly installment of FOURTEEN THOUSAND SEVEN
HUNDRED AND FIFTY ($14,750.00) DOLLARS and ZERO CENTS for the first
year of the lease. In each subsequent year, the lease shall increase Three (3%) Percent per annum, with the rent for each
subsequent lease year payable in equal monthly installments. In the event the Rent Commencement Date is other
than the first day of a month, Tenant will pay Rent for said partial month on a
pro-rata basis; provided, however, the end of the Term shall be on the last day
of the one hundred twentieth (120th) month of the Term of this
Lease.

5.                                      SECURITY
DEPOSIT.  Concurrently with execution
of this Lease, Tenant shall deposit with Landlord the sum of $15,000.00, which
shall be held by Landlord as security for the faithful performance by Tenant of
all terms, covenants and conditions of this Lease to be kept and performed by
Tenant during the term hereof.  If Tenant
defaults with respect to any provision of this Lease, including but not limited
to the provisions relating to the payment of Rent, Landlord may from time to
time (but shall not be required to) use, apply or retain all or any part of
this security deposit for the payment of any rent or any other sum in default,
or for the payment of any amount which Landlord may spend or become obligated
to spend by reason of Tenant’s default, or to compensate Landlord for any other
loss or damage which Landlord may suffer by reason of Tenant’s default without
any prejudice to any other remedy provided herein, or provided by law.  If any portion of such deposit is so used or
applied Tenant shall, within five 

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(5) days after
written demand therefore, deposit cash with Landlord in an amount sufficient to
restore the security deposit to its original amount and Tenant’s failure to do
so shall be a default under this Lease. 
Landlord shall not be required to keep this security deposit separate
from its general funds, and Tenant shall not be entitled to interest on such
deposit.  If Tenant shall fully and
faithfully perform every provision of this Lease to be performed by it, the
security deposit or any balance thereof shall be returned to Tenant (or, at
Landlord’s option, to the last assignee of Tenant’s interest hereunder) within
three (3) months following expiration of the Lease Term.  In the event of termination of Landlord’s
interest in this Lease, Landlord shall transfer the security deposit to
Landlord’s successor in interest and Landlord will have no further liability to
Tenant with respect thereto.

6.                                      OPERATING
COSTS.

(a)                      This Lease
is totally net to the Landlord.  Tenant shall maintain the Premises in first-class
condition at Tenant’s sole cost and expense. 
Landlord may inspect the Premises and, if Landlord reasonably determines
that Tenant is not maintaining the Premises in a first-class condition,
Landlord may provide Tenant with written notice of any such maintenance
concern, and Tenant shall promptly make such repairs.  If Tenant fails to complete such repairs within
thirty (30) days of receipt of such notice, Landlord may undertake such repairs
and Tenant shall be obligated to reimburse Landlord for its costs within ten
(10) days of receipt of an invoice therefore.

(b)                           Tenant shall pay all Operating Costs during the
Lease Term and shall not permit the placement of any lien upon the Premises by
any materialmen, laborer or other provider of goods and services to the
Premises.

7.                                      TAXES.
Landlord shall pay all Real Property Taxes
on the land, buildings and other improvements constituting the Property and the
Premises (including any fees, taxes or assessments against, or as a result of,
any tenant improvements installed in the Demised Premises by or for the benefit
of Tenant) attributable to the Lease Term. 
Tenant shall re-pay Landlord with 10 business days of receipt of a tax
bill from Landlord.

(b)                     Tenant shall pay before delinquency all taxes
charged against trade fixtures, furnishings, equipment or any other personal
property belonging to Tenant which become payable during the Lease Term.
 In
the event any or all of Tenant’s leasehold improvements, equipment, furniture,
fixtures and other personal property shall be assessed and taxed with the
Property, Tenant shall pay to Landlord its equitable share of such taxes within
ten (10) days after delivery to Tenant by Landlord of a statement in writing
setting forth the amount of such taxes determined by Landlord to be applicable
to Tenant’s property.

8.                                      USE
OF DEMISED PREMISES/MAINTENANCE OF LIQUOR LICENSES.

(a)                      Tenant shall
use the Demised Premises for the Permitted Use only, and not for any other
purpose, without the prior written consent of Landlord, which may not be
unreasonably withheld.

(b)                     Tenant shall
not do or permit anything to be done in or about the Demised Premises nor bring
or keep anything therein which is not within the Permitted Use of the Demised
Premises or which will in any way increase the existing rate of or affect any
fire or other insurance upon the Building or any of its contents, or cause a
cancellation of any insurance 

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policy covering the Building or any of its
contents.  Tenant shall not use or allow
the Demised Premises to be used for any improper, immoral, unlawful or
objectionable purpose, however, the use of the property in its present format shall
not be deemed to be an improper, immoral, unlawful or objectionable purpose ;
nor shall Tenant cause, maintain or permit any nuisance in, on or about the
Demised Premises inconsistent with the use of the Premises for its Permitted
Use.  Tenant shall not commit any waste
or permit any nuisance upon the Demised Premises or overload the floors
thereof. All work performed at the premises shall comply with the building code
requirements and Tenant shall acquire all permits required by any governmental
agency necessary to perform the work on the Premise. The Landlord shall
reasonably cooperate with the tenant in obtaining any required
approvals/permits.

(c)                      Tenant shall
not cause or permit any Hazardous Material (as herein after defined) to be
brought upon, transported through, stored, kept, used, discharged or disposed
in or about the Property by Tenant, its agents, employees or contractors.  Any such Hazardous Material brought upon,
transported, used, kept or stored in or about the Property which is necessary
for Tenant to operate its business for the Permitted Use will be brought upon
transported, used, kept and sorted in only such quantities as are necessary for
the usual and customary operation of Tenant’s business and in a manner that
complies with (i) all laws, rules, regulations, ordinances, codes or any other
governmental restrictions or requirements of all federal, state and local
government authorities having jurisdiction thereof regulating such Hazardous
Material, (ii) any permits issued for any such Hazardous Material (copies of
which must be delivered to Landlord before any Hazardous Material is brought
in, on or about the Property), and (iii) all products and manufacturers’
instructions and recommendations, to the extent they are stricter than laws,
rules, regulations, ordinances, codes or permits.  If Tenant, its agents, employees or
contractors, in any way breach the obligations stated in this paragraph, or if
the presence of Hazardous Materials on the Property caused or permitted by
Tenant results in release or threatened release of such Hazardous Material, on
from or under the Property, or if the presence on, from or under the Property
of Hazardous Materials otherwise arises out of the operation of Tenant’s
business, then without limitation of any other rights or remedies available to
Landlord hereunder or at law or in equity, Tenant shall indemnify, defend,
protect and hold harmless Landlord (and Landlord’s directors, shareholders,
officers, employees, partners, agents, mortgagees or successors to Landlord’s
interest in the Demised Premises) (collectively, herein “Indemnity”) from any
and all claims, sums paid in settlement of claims, judgments, damages, clean-up
costs, penalties, fines, liabilities, losses or expenses (including without
limitation attorney, consultant and expert fees and any fees incurred by
Landlord to enforce the Indemnity) which arise during or after the Term as a
result of Tenant’s breach of such obligations or such release or such
contamination of the Property, including, without limitation, diminution in
value of the Property, damages for the loss of, or the restriction on the use
of, rentable or usable space or any amenity of the Property, damages arising
from any adverse impact on the sale or lease of the Property, and damage and
diminution in value to the Property or other properties, whether owned by
Landlord or by third parties.  The
Indemnity includes, without limitation, costs incurred in connection with any
investigation of site conditions or any clean-up, remedial, removal or
restoration work required by any federal, state, or local governmental agency
or political subdivision because of Hazardous Material present in the soil or
groundwater on, under or originating from the Property.  Without limiting the foregoing, if the
presence of any Hazardous Material on the Property caused or permitted by
Tenant results in any contamination, release or threatened release of Hazardous
Material on, from or under the Property or other properties, Tenant shall
promptly take all actions at its sole cost and expense which are necessary to
return the Property and any other affected property to the condition existing
prior to the 

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introduction of such Hazardous Material; provided that
Landlord’s approval of such actions shall first be obtained (which approval
shall not be unreasonably withheld) and so long as such actions do not have or
would not potentially have any material adverse effect on Landlord, on the
Property or on other property.  The
Indemnity contained in this section shall survive the expiration or earlier
termination of this Lease and shall survive any transfer of Landlord’s interest
in the Property.

(d)                     In
conjunction with the operation of the Premises for its Permitted Use, Tenant
has obtained and shall maintain a liquor license and Nude Activities license
from the State of Maine and the City of Portland. (“Liquor Licenses”).  At all times during the terms of this Lease,
Tenant shall maintain the Liquor Licenses in full force and effect.  Tenant shall be solely responsible for and
Tenant shall pay any and all fees, assessments, charges, levies or other
monetary obligations imposed in connection with the Liquor Licenses to assure
that it is maintained in good standing throughout the term of this Lease.  In the event Tenant receives any notice of
violation, citation, written or oral warning, or any complaint, objection, or
challenge to the Liquor Licenses, Tenant shall notify Landlord in writing of
such information within three (3) days of receipt of such written or oral
notice and, if such notice was written, Tenant shall include in said notice a
copy of any notice, citation, correspondence or other written information
provided to Tenant.  Tenant shall utilize
its best efforts to maintain the Liquor Licenses in good standing and in full
compliance with the rules, regulations, ordinances and statutes of the City of
Portland and the State of Maine and shall take no action, which may place the
Liquor Licenses in jeopardy in any way. 
Tenant agrees that it shall utilize the benefits of the Liquor Licenses
only in connection with the operation of the Demised Premises for a
restaurant/Bar and Nude Activities and shall file no application to (i) amend
the status of the Liquor Licenses, (ii) amend the composition of the Tenant,
(iii) transfer the Liquor Licenses or (iv) amend the location of the Premises
served by the Liquor Licenses without the advance written approval of the
Landlord which may not be unreasonably withheld.

(e)                      The Demised
Premises may be operated under the name “ Platinum Plus” for a period of 6
months following execution of this lease and Landlord hereby consents to Tenant’s
use of such name and warrant it has lawful authority to license the use of the
name. The Tenant thereafter shall change the name to a name of its choosing.
The Landlord will be notified of the name change, but shall not be required to
approve the name change.

9.                                      COMPLIANCE
WITH LAW.  Tenant shall not use the
Demised Premises or permit anything to be done in or about the Demised Premises
which will in any way conflict with any law, statute, ordinance or governmental
rule or regulation now in force or which may hereafter be enacted or
promulgated including, without limitation, the Americans With Disabilities
Act.  Tenant shall, at its sole cost and
expense, promptly comply with all laws, statutes, ordinances and governmental
rules, regulations or requirements now in force or which may hereafter be in
force and with the requirements of any board of fire underwriters or other
similar bodies now or hereafter constituted relating to or affecting the
condition, use or occupancy of the Demised Premises, excluding structural
changes not related to or affected by Tenant’s improvements or acts.  The judgment of any court of competent
jurisdiction or the admission of Tenant in any action against Tenant, whether
Landlord be a party thereto or not, that Tenant has violated any law, statute,
ordinance or governmental rule, regulation or requirement, shall be conclusive
of that fact as between Landlord and Tenant.

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10.                               ALTERATIONS
AND ADDITIONS.  Tenant shall not make
or allow to be made any alterations, additions or improvements to or of the
Demised Premises or any part thereof without first obtaining the written
consent of Landlord, whose consent shall not be unreasonably withheld, and any
alterations, additions or improvements to or of the Demised Premises,
including, but not limited to, wall covering, paneling and built in cabinet
work, but excepting movable furniture and trade fixtures, shall at once become
a part of the realty and belong to Landlord and shall be surrendered with the
Demised Premises.  In the event Landlord
consents to the making of any alterations, additions or improvements to the
Demised Premises by Tenant, the same shall be made by Tenant at Tenant’s sole
cost and expense and shall be completed in a good and workmanlike manner, free
of any liens. All work performed at the premises shall comply with the building
code requirements and Tenant shall acquire all permits required by any
governmental agency necessary to perform the work on the Premise. The Landlord
shall reasonably cooperate with the tenant in obtaining any required
approvals/permits. Upon the expiration or sooner termination of the Term,
Tenant shall, upon written demand by Landlord, at Tenant’s sole cost and
expense, forthwith and with all due diligence, remove any alterations,
additions or improvements made by Tenant which are designated by Landlord to be
removed, and Tenant shall, forthwith and with all due diligence, at its sole
cost and expense, repair any damage to the Demised Premises caused by such
removal.

11.                               MAINTENANCE
AND REPAIR.

(a)                      By its entry
into the Demised Premises, Tenant shall be deemed to have accepted the Demised
Premises as being in good order, condition and repair.  Tenant shall, at Tenant’s sole cost and
expense, keep the Demised Premises and every part thereof in good condition and
repair, including without limitation, the maintenance, replacement and repair
of any storefront, doors, window casements, glazing, plumbing, pipes,
electrical wiring and conduits, and the heating and air conditioning (“HVAC”)
system.  Tenant shall obtain a service
contract for repairs and maintenance of the HVAC system and shall provide to
Landlord a copy of the service contract along with written details of any and
all scheduled and other repairs and maintenance performed on the HVAC system
within ten (10) days of the date of such performance.  Tenant shall, upon the expiration or sooner
termination of this Lease, surrender the Demised Premises to Landlord in good
condition, broom clean, ordinary wear and tear excepted.  Any damage caused by Tenant’s use of the
Demised Premises shall be repaired at the sole cost and expense of Tenant.

(b)                     Tenant shall
repair and maintain the structural portions of the Building, including the exterior
walls and roof.  Landlord shall not be
liable for Tenant’s failure to make such repairs or to perform any
maintenance.  There shall be no abatement
of Rent and no liability of Landlord by reason of any injury to or interference
with Tenant’s business arising from the making of any repairs, alterations or
improvements in or to any portion of the Building or the Demised Premises or in
or to fixtures, appurtenances and equipment therein.  Tenant waives any right to make repairs at
Landlord’s expense under any law, statute or ordinance now or hereafter in
effect.

(c)                      If Tenant
refuses or neglects to repair or maintain the Premises, as required herein, to
the reasonable satisfaction of Landlord, Landlord shall provide Tenant with
written notice of any such refusal or neglect and Tenant shall repair any item
mentioned in said notice within thirty (30) days thereafter.  If Tenant has not made such repairs within
the 30-day period, Landlord may make such repairs without liability to the
Tenant for any loss or damage it may 

 7
 

accrue to Tenant’s merchandise, fixtures or other
property or to Tenant’s business by reason thereof and, upon completion
thereof, Tenant shall pay Landlord’s costs for making such repairs upon
presentation of a bill thereof.  In the
event Tenant does not pay such bill within ten (10) days of its receipt, such
failure shall be an event of default hereunder, Landlord shall be entitled to
utilize all of its remedies herein and such amount shall bear interest at the
rate of eighteen percent (18%) per annum.

12.                               LIENS.  Tenant shall keep the Property free from any
liens arising out of any work performed, materials furnished or obligations
incurred by or on behalf of Tenant. 
Landlord may require, at Landlord’s sole option, that Tenant provide to Landlord,
at Tenant’s sole cost and expense, a lien and completion bond in an amount
equal to one and one-half (11⁄2) times the estimated cost of any improvements,
additions or alterations in the Demised Premises which Tenant desires to make,
to insure Landlord against any liability for mechanics and materialmen’s liens
and to insure completion of the work. 
Landlord shall have the right to post notices on the Demised Premises,
that the Demised Premises are not subject to liens of those providing labor
and/or materials to the Demised Premises at the request of the Tenant pursuant
to Maine Statutes.  Tenant shall provide
Landlord with ten (10) days prior written notice prior to commencing any
improvements at the Property, to allow Landlord adequate time to post said
notices.

13.                               ASSIGNMENT
AND SUBLETTING.

(a)                      Tenant shall
not (voluntarily, by operation of law or otherwise) assign, transfer, mortgage,
pledge, hypothecate or encumber this Lease or any interest therein, and shall
not sublet the Demised Premises or any part thereof, or any right or privilege
appurtenant thereto, or allow any other person (the employees, agents, servants
and invitees of Tenant excepted) to occupy or use the Demised Premises, or any
portion thereof, without first obtaining the written consent of Landlord, which
consent may not be unreasonably withheld, except that a transfer to a wholly
owned subsidiary of VCG shall not require advance approval. The transfer of
more than five percent (25%) of the shareholder interest of Tenant, however accomplished,
and whether in a single transaction or in a series of related or unrelated
transactions, will be deemed an assignment of this Lease or such sublease
requiring the Landlord’s consent in each instance.  Any assignment or subletting without such
consent shall be void, and shall, at the option of Landlord, constitute a
default under the terms of this Lease.  Acceptance of Rent by Landlord from anyone
other than Tenant shall not be construed as a consent or waiver by Landlord,
nor as a release of Tenant, but the same shall be taken to be a payment on
account of Tenant.  A consent to
one assignment, subletting, occupation or use by any other person shall not be
deemed to be a consent to any subsequent assignment, subletting, occupation or
use by another person.

(b)                                 Tenant
shall provide Landlord with a copy of any proposed sublease or assignment that
contains the name and address of the proposed subtenant or assignee, a copy of
any purchase and sale agreement for the assets of Tenant, the anticipated effective
date of the proposed sublease or assignment, the duration of the term of any
proposed sublease, and the amount of space any proposed subtenant will
occupy.  In addition, Tenant shall
provide detailed information regarding the proposed subtenant’s or assignee’s
financial condition and credit history, relevant business history and
experience, together with any other pertinent information which Landlord
reasonably requires.  Landlord may
require an opportunity to meet and interview the proposed subtenant or assignee
as well.  For purposes of Landlord’s
consent to a proposed sublease or assignment, it shall be considered reasonable
for Landlord to consider (i) the relative financial strength, business
reputation and operational/management experience of Tenant and the 

 8
 

proposed subtenant or assignee, (ii) any history that
the proposed subtenant or anyone has with the liquor licensing agencies of the
City and County of Denver and the State of Maine, and (iii) whether the use of
the Demised Premises after such sublease or assignment would create any
nuisance or violate any federal, state or local laws or any lease or agreement
affecting the Shopping Center or involve Hazardous Materials.

Tenant shall deliver all documents pertaining to any
such assignment or subletting to Landlord upon Landlord’s demand. Such profit
shall not include any lump-sum payment made to Tenant from its assignee or
subtenant in consideration of the transfer of Tenant’s business, trade name,
inventory, or goodwill: but any amount attributed to lease assignment or sale
on any document concerning the transaction (including the assignee’s tax
return) by assignee shall be conclusively established as not
attributable to Tenant’s business, trade name, inventory or goodwill, and
therefore, shall be included in Tenant’s profits as described herein.

(c)                      If Landlord
consents to a proposed assignment or sublease, the form of such assignment or
sublease shall be satisfactory to Landlord and shall (i) incorporate this Lease
in its entirety and be subject to its terms, (ii) provide that Tenant shall
remain liable under this Lease, (iii) provide that subtenant will comply with
all terms and conditions of this Lease, (iv) provide for assumption by an
assignee of all the terms, covenants and conditions which this Lease requires
Tenant to perform, and (v) include a requirement that any subtenant attorn to
the Landlord.  Landlord’s consent will
not be effective unless and until Tenant delivers to Landlord an original, duly
executed assignment or sublease, as the case may be, in a form satisfactory to
Landlord, as set forth herein.  Tenant
shall pay Landlord’s reasonable fees, not to exceed five thousand dollars
($5,000.00), incurred for review of such assignment or sublease and all other
materials submitted by Tenant in connection with the request for Landlord’s
consent, whether or not such assignment or sublease is approved.

(d)                     Any transfer
for which consent is required of any party having a mortgage, deed, or trust or
other encumbrance or of any lessor under any ground or underlying lease of all
or any part of the Property shall not be effective until such consent is given.

(e)                      Notwithstanding
anything else in this article contained, as a condition to Landlord’s written
approval of any assignment or sublease by Tenant, Landlord may require that it
shall be entitled to the receipt of fifty percent (50%) of any profit derived
by Tenant as a result of such assignment or sublease. Such profit is defined as
any amounts received by Tenant from its assignee or subtenant in excess of the
Rent required to be paid by Tenant hereunder. Tenant shall deliver all
documents pertaining to any such assignment or subletting to Landlord upon
Landlord’s demand. Such profit shall not include any lump-sum payment made to
Tenant from its assignee or subtenant in consideration of the transfer of
Tenant’s business, trade name, inventory, or goodwill: but any amount
attributed to lease assignment or sale on any document concerning the
transaction (including the assignee’s tax return) by assignee shall be
conclusively established as not attributable to Tenant’s business, trade
name, inventory or goodwill, and therefore, shall be included in Tenant’s
profits as described herein.  In no event
shall the payment received by Landlord pursuant to this subparagraph (b) be
less than $100,000.00.

 9
 

14.                               HOLD
HARMLESS.

(a)                      Tenant
shall indemnify and hold Landlord harmless against and from any and all claims
arising from Tenant’s use of the Demised Premises or from the conduct of its
business or from any activity, work or other things done, permitted or suffered
by Tenant in or about the Demised Premises, and shall further indemnify and
hold Landlord harmless against and from any and all claims arising from any
breach or default in the performance of any obligation on Tenant’s part to be
performed under the terms of this Lease, or arising from any act or negligence
of Tenant, or any officer, agent, employee, guest or invitee of Tenant, and
from all costs, attorney’s fees and liabilities incurred in or about the
defense of any such claim or any action or proceeding brought thereon, and in
case any action or proceeding be brought against Landlord by reason of such
claim, for events which arise subsequent to the date of this Agreement,
pursuant to the terms of an indemnification agreement contained in a Purchase
Agreement, previously executed by the parties. Tenant upon written notice from
Landlord shall defend the same at Tenant’s expense by counsel reasonably
satisfactory to Landlord.  Tenant, as a
material part of the consideration to Landlord, hereby assumes all risk of
damage to property or injury to persons in, upon or about the Demised Premises,
from any cause other then the gross negligence of Landlord, its agents,
servants or employees, and Tenant hereby waives all claims in respect thereof
against Landlord.  Tenant shall give
prompt written notice to Landlord in case of casualty or accidents in the
Demised Premises.

(b)                     Tenant, as a
material part of the consideration to Landlord for this Lease, hereby waives
and releases all claims against Landlord, its employees and agents with respect
to all matters for which Landlord has disclaimed liability pursuant to the
provisions of this Lease.  Tenant
covenants and agrees that Landlord and its employees will not at any time or to
any extent whatsoever be liable, responsible or in any way accountable for any
loss, injury, death or damage (including consequential damages) to persons,
property or Tenant’s business occasioned by any cause, either ordinary or extraordinary.

(c)                      Landlord or
its agents shall not be liable for any loss or damage to persons or property
resulting from fire, explosion, falling plaster, steam, gas, electricity, water
or rain which may leak from any part of the Building or from the pipes, appliances
or plumbing works therein or from the roof, street or subsurface or from any
other place resulting from dampness or any other cause whatsoever.  Landlord or its agents shall not be liable
for interference with the light, air, or for any latent defect in the Demised
Premises.

15.                               WAIVER
OF SUBROGATION.  Tenant hereby waives any and all rights of
recovery against Landlord, or against the officers, shareholders, employees,
agents or representatives of Landlord or such other tenants, for loss of or damage
to property, if such loss or damage is covered by any insurance policy in force
(whether or not described in this Lease) at the time of such loss or
damage.  Tenant shall give notice to its
insurance carriers of this mutual waiver of subrogation.

16.                               INSURANCE.

Commencing on the Rent Commencement Date and
continuing throughout the Lease Term, Tenant shall carry and maintain the
following insurance (“Landlord Insurance”): 
(a) an “all-risk” form of insurance policy, with an endorsement insuring
against loss of Minimum Rent (including Extended Period of Recovery, if
applicable) insuring the buildings and 

 10
 

improvements of the Property (and leasehold
improvements) for 100% of their replacement value;  and (b) fire and extended coverage
insurance insuring all additions and alterations made by the Tenant to the
Demised Premises and all of its fixtures, inventory, furniture
and equipment for the full replacement value thereof with the broadest possible
coverage (“all risk” form) on a minimum of 80% co-insurance form insuring
against all risks of direct physical loss and excluding only such unusual
perils as nuclear attack, earth movement, flood, and war. The tenant shall be
billed by Landlord for the cost of this insurance and shall repay the landlord
for these billed costs within 10 business days of receipt of a bill for such
insurance. Landlord’s Insurance shall be issued by an insurance company of
recognized standing, authorized to do business in the State of Maine and having
a Best’s Insurance Guide rating of at least A:XV and satisfactory to Tenant.

The tenant, at tenants expense shall carry and
maintain the following insurance (“Tenant Insurance”):  (a) an “all-risk” form of insurance policy,
with an endorsement insuring against loss of Minimum Rent (including Extended
Period of Recovery, if applicable) insuring public liability, bodily injury and
damage comprehensive insurance coverage insuring against claims of any and all
personal injury, death or damage occurring in or about the Demised Premises or
the sidewalks adjacent thereto, with a combined single limit coverage in the
amount presently maintained by the Landlord (subject only to a commercially
reasonable deductible), on an “occurrence” form and including contractual
liability coverage for the performance by Tenant of the indemnity agreements
set forth in paragraph 15 above; (b) worker’s compensation insurance insuring
against and satisfying the worker’s compensation laws of the State of Maine;
and (c) “dram shop” or liquor liability insurance.  Landlord may reasonably require increases in
the above-described coverage from time to time, for which Tenant shall obtain
the same and pay the costs thereof. 
Tenant’s Insurance shall be issued by an insurance company of recognized
standing, authorized to do business in the State of Maine and having a Best’s
Insurance Guide rating of at least A:XV and satisfactory to Landlord.  Tenant’s Insurance (other than any policy of
worker’s compensation insurance) will name Landlord and such other persons or
firms as Landlord specifies from time to time as additional insured.  Original or copies of original policies
(together with copies of the endorsements naming Landlord, and any others
specified by Landlord as additional insured) and evidence of the payment of all
premiums of such policies will be delivered to Landlord prior to the Rent
Commencement Date, on each anniversary thereof, and at any date the prior
policy expires.  All public liability and
property and damage liabilities maintained by Tenant will contain a provision
that Landlord and any other additional insured will be entitled to recover
under such policies for any loss sustained by them, their agents and employees
as a result of the acts or omissions of the Tenant.  Tenant’s Insurance will provide that it may
not be terminated or amended except after thirty (30) days prior written notice
to Landlord.  All public liability
property damage, liability and casualty policies maintained by Tenant shall be
written as primary policies, not contributing with and not supplemental to
coverage that Landlord may carry. All policies shall name the Landlord, Gregory
Kenwood Gaines, , Ralph Lunati, and KWE Group as additional insured’s on the
policy who are entitled to notice in the event of cancellation of a policy. To
the extent that it commercially practicable to obtain, Tenant shall obtain
assault and battery coverage for the business.

17.                               UTILITIES.

(a)                                  Tenant
shall pay for all water, gas, heat, light, power, sewer charges, telephone
service and all other services and utilities supplied to the Demised Premises,
together with any taxes thereon.  If any
such services are not separately metered to Tenant, Tenant shall 

 11
 

pay an equitable share thereof, to be determined by
Landlord, of all charges jointly metered with other Premises.

(b)                                 Landlord
has advised Tenant that presently Central Maine Power (“Electric Service
Provider”) is the utility company selected by Landlord to provide electricity
for the Property.  Notwithstanding the
foregoing, if permitted by Law, Landlord shall have the right at any time and
from time to time during the Lease Term to either contract for service from a
different company or companies providing electricity service (each such company
shall hereinafter be referred to as an “Alternative Service Supplier”) or
continue to contract for service from the Electric Service Provider.  Tenant shall cooperate with Landlord, the
Electric Service Provider and any Alternative Service Provider at all times
and, as reasonably necessary, shall allow Landlord, Electric Service Provider
and any Alternate Service Provider reasonable access to the electric lines,
feeders, risers, wiring, and any other machinery within the Demised Premises
which may serve the Property.

(c)                                  Landlord
does not warrant or guarantee the continued availability of any or all of the
utility services necessary or desirable for the use of the Demised Premises by
Tenant.  In no event shall the
interruption, diminution or cessation of such services be construed as an
actual or constructive eviction of Tenant, nor shall Tenant be entitled to any
abatement of its Rent obligations under this Lease or on account thereof.  Landlord shall in no way be liable or
responsible for any loss, damage, or expense that Tenant may sustain or incur
by reason of any change, failure, interference, interruption, disruption or
defect in the supply or character of the utilities furnished to the Demised
Premises, and no such change, failure, diminution, cessation, unavailability or
unsuitability shall constitute an actual or constructive eviction, in whole or
in part, or entitle Tenant to any abatement or diminution of rent, or relieve
Tenant from any of its obligations under the Lease.

(d)                                 Landlord
reserves the right to suspend any and all utilities service to the Demised
Premises when, in Landlord’s reasonable discretion, such suspension is
necessitated by reason of accident, repairs, inspections, alterations or
improvements, until any of the same have been completed.  In such event, Landlord shall not be deemed
guilty of a breach of this Lease, nor shall Tenant be entitled to any abatement
of its Rent obligations under this Lease on account thereof.  If feasible, Landlord shall give Tenant prior
notice of any interruption of utility services.

18.                               PERSONAL
PROPERTY.

Any property of Tenant
remaining in the Demised Premises at any time when Landlord recovers possession
of the Demised Premises shall be deemed abandoned, and Landlord shall have no
responsibility or liability whatsoever for any of the same.  Notwithstanding the foregoing, Landlord may
store any such property in any public or private warehouse, and Tenant shall
pay to Landlord promptly upon demand all costs incurred in connection with such
property, including the costs of moving and storage, court costs, and attorney fees.  Landlord at its option may, without notice,
sell any such personal property at any public or private sale, with or without
legal process, for such prices as Landlord may obtain, and Landlord shall apply
the proceeds of such sales first to the costs incurred in connection with such
property, and then to any amounts due under this Lease from Tenant to Landlord,
and the surplus, if any, to Tenant.

 12
 

19.                               FAILURE
TO SURRENDER POSSESSION.

(a)                                  The
parties recognize and agree that the damage to Landlord resulting from any
failure by Tenant to timely surrender possession of the Demised Premises will
be substantial, will exceed the amount of the monthly installments of the Rent
payable hereunder, and will be impossible to measure accurately.

(b)                                 Tenant
therefore agrees that if possession of the Demised Premises is not surrendered
to Landlord upon the expiration or sooner termination of this Lease, in
addition to any other rights or remedies Landlord may have hereunder or at law,
Tenant shall pay to Landlord, as liquidated damages, for each month and for
each portion of any month during which Tenant holds over in the Demised
Premises after the expiration or sooner termination of this Lease, a sum equal
to one and one-half (11⁄2) times the aggregate of that portion of the monthly
Rent that was payable under this Lease during the last month of the term
hereof. The provisions of this subparagraph shall survive the expiration or
sooner termination of this Lease.

(c)                                  No
provision of this paragraph 19 or any other provision of this Lease shall be
deemed to permit Tenant to retain possession of the Demised Premises after the
expiration or sooner termination of the Lease Term, or to have extended or
renewed the Lease Term beyond its expiration or termination, except by timely and
proper exercise by Tenant of the Option as provided in subparagraph 3(b) above
(if applicable). Acceptance of any payment of Rent during any holdover period
by Landlord shall not be deemed acceptance of Tenant’s occupancy.

(d)                                 At
the termination of this Lease, either upon the expiration of its term or upon
default, Lessee will execute any and all documents necessary to convey to
Landlord and/or its assignee, the Liquor License applicable to the Demised
Premises, subject to approval of the appropriate governmental authorities.

20.                               ENTRY
BY LANDLORD.  Landlord shall at any
and all times have the right to enter the Demised Premises to inspect the same,
to show the Demised Premises to prospective purchasers or tenants and to post
notices of non-responsibility.  Landlord
shall also have the right to conduct such maintenance and repair of or to the
Demised Premises (or the Building) as Landlord may deem necessary, without
abatement of Rent, and for that purpose may erect scaffolding and other
necessary structures where reasonably required by the character of the work to
be performed, always providing that the entrance to the Demised Premises shall
not be unreasonably blocked thereby, and further provided that the business of
Tenant shall not be interfered with unreasonably.  Landlord shall use its reasonable efforts to
provide advance notice of any such entry to Tenant and shall attempt to
minimize interference with Tenant’s business. 
Tenant hereby waives any claim for damages or for any injury or
inconvenience to or interference with Tenant’s business, loss of occupancy or
quiet enjoyment of the Demised Premises, and any other loss occasioned
thereby.  For each of the aforesaid
purposes, Landlord shall at all times have and retain a key with which to unlock
all of the doors in, upon and about the Demised Premises, excluding Tenant’s
vaults, safes and files.  Landlord shall
have the right to use any and all means which Landlord may deem proper to open
said doors in an emergency, in order to obtain entry to the Demised Premises
without liability to Tenant except for any failure to exercise due care for
Tenant’s property.  Any entry to the
Demised Premises obtained by Landlord by any of such means, or otherwise, shall
not under any circumstances be construed or deemed to be a forcible or unlawful
entry into, or a detainer of the Demised Premises, or an eviction of Tenant
from the Demised Premises or any portion thereof.

 13

21.                               TENANT’S
DEFAULT.  The occurrence of any one
or more of the following events shall constitute a default and breach of this
Lease by Tenant:

(a)                                  the
vacating or abandonment of the Demised Premises by Tenant;

(b)                                 failure
by Tenant to pay any Rent when required hereunder;

(c)                                  failure
by Tenant to observe or perform any of the covenants, conditions or provisions
of this Lease to be observed or performed by Tenant, except the payment of
Rent, where such failure shall continue for a period of thirty (30) days after
written notice thereof by Landlord to Tenant (provided, however, that if the
nature of Tenant’s default is such that more than thirty (30) days are
reasonably required for its cure, then Tenant shall not be deemed to be in
default if Tenant commences such cure within said thirty (30) day period and
thereafter diligently prosecutes such cure to completion, but in no event
beyond an additional thirty (30) days);

(d)                                 the
making by Tenant or Guarantor of any general assignment or general arrangement
for the benefit of creditors; or the filing by or against Tenant or Guarantor
of a petition to have Tenant or Guarantor adjudged a bankrupt, or a petition or
a reorganization or arrangement under any law relating to bankruptcy (unless,
in the case of a petition filed against Tenant or Guarantor, the same is
dismissed within sixty (60) days); or the appointment of a trustee or a
receiver to take possession of substantially all of Tenant’s assets located at
the Demised Premises or of Tenant’s interest in this Lease, where possession is
not restored to Tenant within thirty (30) days; or the attachment, execution or
other judicial seizure of substantially all of Tenant’s assets located at the
Demised Premises or of Tenant’s interest in this Lease, where such seizure is
not discharged within thirty (30) days; or

(e)                                  the
liquor license being in imminent danger of being revoked or the revocation of
any of the Liquor Licenses/ Nude Activities Licenses by the State of Maine or
the City of Portland for any reason whatsoever.

(f)                                    In the event that of a Tenant Default,
Notice shall be given in accordance with the provisions of Paragraph 29(p),
except that a notice of a default must be served via certified mail.

(g)                                 Notwithstanding the cure period allowed
by subparagraph (c) above, it shall be an immediate default under this Lease if
Tenant fails to surrender the Demised Premises to Landlord upon the expiration
or sooner termination of the Lease, or if any failure of Tenant to comply with
any provision of this Lease jeopardizes any insurance coverage or causes or
results in a dangerous condition on the Demised Premises or the remainder of
the Property, and such failure to comply is not cured as soon as reasonably
possible after notice thereof by Landlord to Tenant.  In no event shall financial inability be
considered a reasonable ground for failure of Tenant to cure any breach of, or
failure to comply with, the provisions of this Lease.

22.                               LANDLORD’S
REMEDIES.  In the event of any such
default or breach by Tenant, Landlord may take any of the following actions at
any time thereafter, in its sole discretion, with or without notice or demand
and without limiting Landlord in the exercise of any right or remedy which
Landlord may have by reason of such default or breach under the laws or
judicial decisions of the State of Maine.

 14
 

(a)                                  Landlord
may terminate Tenant’s right to possession of the Demised Premises by any
lawful means, in which case this Lease shall terminate, Tenant shall
immediately surrender possession of the Demised Premises to Landlord, and
Landlord shall be entitled to recover from Tenant all damages incurred by
Landlord by reason of Tenant’s default including, but not limited to, the cost
of recovering possession of the Demised Premises; expenses of relating,
including necessary renovation and alteration of the Demised Premises;
reasonable attorney fees; the worth at the time of award by the court having
jurisdiction thereof of the amount by which the unpaid Rent called for herein
for the balance of the term after the time of such award exceeds the amount of
such loss for the same period that Tenant proves could be reasonably avoided.

(b)                                 Landlord
may reenter and take possession of the Demised Premises or any part thereof,
without demand or notice, and repossess the same and expel Tenant and any party
claiming by, under or through Tenant, and remove the effects of both using such
force for such purposes as may be necessary, without being liable for
prosecution on account thereof of being deemed guilty of any manner of trespass,
and without prejudice to any remedies for arrears of Rent or right to bring any
proceeding for breach of covenants or conditions.  No such reentry or taking possession of the
Demised Premises by Landlord shall be construed as an election by Landlord to
terminate this Lease unless a written notice of such intention is given to
Tenant.  No notice from Landlord
hereunder or under a forcible entry and detainer statute or similar law shall
constitute an election by Landlord to terminate this Lease unless such notice
specifically so states.  Landlord
reserves the right, following any reentry or relating, to exercise its right to
terminate this Lease by giving Tenant such written notice, in which event this
Lease will terminate as specified in such notice.  After recovering possession of the Demised
Premises, Landlord may, from time to time, but shall not be obligated to, relet
the Demised Premises, or any part thereof, for the account of Tenant, for such
term or terms and on such conditions and upon such other terms as Landlord, in
its discretion, may determine.  Landlord
may make such repairs, alterations or improvements as Landlord may consider
reasonably appropriate to accomplish such relating, and Tenant shall reimburse
Landlord upon demand for all reasonable costs and expenses (including without
limitation leasing commissions and attorney fees) which Landlord may incur in
connection with such relating.  Landlord
may collect and receive the rents for such releting but Landlord shall in no
way be responsible or liable for any failure to relet the Demised Premises, or
any part thereof, or for any failure to collect any rent due upon such
relating.  Notwithstanding Landlord’s
recovery of possession of the Demised Premises, Tenant shall continue to pay on
the dates herein specified, the Minimum Rent and all Additional Rent which
would be payable hereunder if such repossession had not occurred, less a credit
for the net amounts, if any, actually received by Landlord through any relating
of the Demised Premises.

(c)                                  Landlord
may maintain Tenant’s right to possession, in which case this Lease shall
continue in effect whether or not Tenant shall have abandoned the Demised
Premises.  In such event Landlord shall
be entitled to enforce all of Landlord’s rights and remedies under this Lease,
including the right to recover the Rent as it becomes due hereunder.

(d)                                 In
any event, Landlord shall be entitled to recover interest on any unpaid Rent or
any amounts owing pursuant to this Lease not paid when due at the rate of eighteen
percent (18%) per annum from the date due until paid in full.

 15
 

23.                               DEFAULT
BY LANDLORD.  Landlord shall not be
in default under this Lease unless Landlord fails to perform obligations
required of Landlord within a reasonable time, but in no event later than
thirty (30) days after written notice by Tenant to Landlord and to the holder
of any first mortgage or deed of trust covering the Demised Premises whose name
and address shall theretofore been furnished to Tenant in writing, specifying
wherein Landlord has failed to perform such obligation; provided, however, that
if the nature of Landlord’s obligations is such that more than thirty (30) days
are required for performance then Landlord shall not be in default if Landlord
commences performance within such thirty (30) day period and thereafter
diligently prosecutes the same to completion. 
In no event shall Tenant have the right to terminate this Lease as a
result of Landlord’s default, and Tenant’s remedies shall be limited to actual
(not consequential or punitive) damages and/or an injunction.

24.                               RECONSTRUCTION.

(a)                                  Subject
to the provisions of subparagraphs (b) and (c) below, in the event the Demised
Premises or any other portion of the Building is damaged by fire or other
perils covered by extended coverage insurance, and such damage does not require
structural demolition and reconstruction of all or part of the Building,
Landlord agrees to forthwith repair such damage utilizing the proceeds of
insurance and this Lease shall remain in full force and effect, except that
Tenant shall be entitled to an equitable reduction of Minimum Rent from the
date of damage until completion of such repairs, based on the extent to which
the damage and making of such repairs shall reasonably interfere with the
business carried on by Tenant in the Demised Premises.

(b)                                 In
the event that any casualty requires structural demolition and reconstruction
of all or part of the Building (whether or not such reconstruction involves any
portion of the Demised Premises), Landlord may, at its election, give notice to
Tenant at any time within sixty (60) days after such damage, terminating this
Lease as of a date specified in such notice not more than thirty (30) days
after the giving of such notice.  In the
event of giving such notice, this Lease and all interest of Tenant in the
Demised Premises shall terminate on the date so specified in such notice, and
the Minimum Rent, reduced by a proportionate reduction, based upon the extent,
if any, to which such damage interfered with the business carried on by Tenant
in the Demised Premises, shall be paid up to date of such termination.  In the alternative, Landlord may, by written
notice to Tenant within such 60-day period, elect to repair or restore such
damage, in which case the Minimum Rent shall be proportionately reduced as
provided in subparagraph (a) above and this Lease shall continue in full force
and effect; PROVIDED, HOWEVER, that Landlord shall have the right to alter the
size and configuration of the Building in the course of such reconstruction, so
long as the Building as reconstructed is an integrated architectural unit and
the dimensions of the Demised Premises are substantially the same as prior to
such casualty.

(c)                                  Notwithstanding
anything to the contrary contained in this Article, Landlord shall not have any
obligation whatsoever to repair any injury or damage by other cause to any
leasehold improvements, fixtures or other personal property of Tenant, or to
repair, reconstruct or restore the Demised Premises or any other part of the
Building when the damage resulting from any casualty occurs during the last
twenty-four months of the term of this Lease or any extension thereof.

 16
 

25.                               EMINENT
DOMAIN.  If more than twenty-five
percent (25%) of the Building  shall be
taken or appropriated by any public or quasi-public authority under the power
of eminent domain, either party hereto shall have the right, at it’s option,
within sixty (60) days after said taking, to terminate this Lease upon thirty
(30) days written notice.  If less than
twenty-five percent (25%) of the Building is taken (or if more than 25% is
taken but neither party elects to terminate as herein provided), the Minimum
Rent thereafter to be paid shall be equitably reduced.  If any part of the Property other than the Building
shall be so taken or appropriated, Landlord shall within sixty (60) days of
said taking have the right at its option to terminate this Lease upon written
notice to Tenant.  In the event of any
taking appropriation whatsoever, Landlord shall be entitled to any and all
awards and/or settlements which may be given for the value of the property and
Tenant shall be entitled to any award for the value of any unexpired term of
this Lease and for its relocation expenses, or any award for any business loss of
any kind whatsoever relating to the operation of the Tenant’s business.

26.                               SIGNS.  Tenant may affix and maintain only such
signs, advertising placards, names, insignia, trademarks and descriptive
material to the premises without the consent of the Landlord. However, all
signs must comply with all state and local building codes and Tenant shall
acquire all permits required by any governmental agency necessary relating to
signage on the Premise. The Landlord shall reasonably cooperate with the tenant
in obtaining any required approvals/permits. Upon expiration or earlier
termination of this Lease, such signage and repair any damage to the Building
fascia resulting from the installation and removal of Tenant’s sign shall
remain on the Building unless Landlord requests Tenant to remove such signage,
in which case Tenant shall remove such signage.

27.                               GUARANTY.   All obligations of Tenant shall be
guaranteed by the Guarantor pursuant to the form of Guaranty Agreement attached
hereto as Exhibit B. In addition, Tenant pledges, as additional security for
the obligations of the Tenant under this Agreement, its Liquor License, issued
by the State of Maine, and its Nude Activities Permit, issued by the State of
Maine. In the event of a uncured default, Landlord shall have the same rights
and remedies of any secured party which are provided by law in the Liquor
License and Nude Activities permit. Landlord and Tenant agree to cooperate with
one another to reasonably effectuate this guarantee.

28.                               ACCORD
AND SATISFACTION.  No payment by
Tenant, nor receipt by Landlord, of a lesser amount than the Rent herein
stipulated shall be deemed to be other than on an account of the earliest
stipulated Rent, nor shall any endorsement or statement on any check or any
letter accompanying any check, or payment as Rent, be deemed an accord and
satisfaction, and Landlord shall accept such check for payment without
prejudice to Landlord’s right to recover the balance of such Rent or pursue any
other remedy available to Landlord. 
Tenant expressly waives any right it may have to claim that any payment
due from Tenant to Landlord hereunder, which payment is less than the full
amount due to the Landlord or claimed by Landlord, shall be deemed an accord
and satisfaction.  This waiver of Tenant’s
right to claim an accord and satisfaction shall be without regard to whether or
not a dispute exists with regard to the amount claimed by Landlord.  No payment by Tenant, nor receipt by
Landlord, of a lesser amount than the full amount due pursuant to this Lease
shall be deemed to be other than on an account of Tenant toward the amount
claimed by Landlord, nor shall any letter or statement accompanying any such
payment be deemed an accord and satisfaction, and Tenant hereby waives its
right to so claim.

 17
 

29.                               GENERAL
PROVISIONS.

(a)                                  Waiver.  The waiver by Landlord of any term, covenant
or condition herein contained shall not be deemed to be a waiver of such term,
covenant or condition or any subsequent breach of the same or any other term,
covenant or condition herein contained. 
The subsequent acceptance of rent hereunder by Landlord shall not be
deemed to be a waiver of any preceding default by Tenant of any term, covenant
or condition of this Lease, other than the failure of Tenant to pay the
particular rental so accepted, regardless of Landlord’s knowledge of such
preceding default at the time of the acceptance of such rent.

(b)                                 Marginal
Headings.  The marginal headings and
titles to the articles of this Lease are not a part of the Lease and shall have
no effect upon the construction or interpretation of any part hereof.

(c)                                  Time.  Time is of the essence of this Lease and each
and all of its provisions in which performance is a factor.

(d)                                 Successors
and Assigns.  The covenants and
conditions herein contained, subject to the provisions as to assignment, apply
to and bind the heirs, successors, executors, administrators and assigns of the
parties hereto.

(e)                                  Recordation.  Neither Landlord nor Tenant shall record this
Lease, but a short form memorandum hereof may be recorded at the request of
Landlord.

(f)                                    Late
Charges.  Tenant hereby acknowledges
that late payment by Tenant to Landlord of Minimum Rent and scheduled
Additional Rent due hereunder will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain.  Such costs
include, but are not limited to, processing and accounting charges, and late
charges which may be imposed upon Landlord by terms of any mortgage or trust
deed covering the Demised Premises. 
Accordingly, if any installment of Rent due from Tenant shall not be
received by Landlord or Landlord’s designee within three (3) days after the due
date, then Tenant shall pay to Landlord a late charge equal to five percent
(5%) per month on the outstanding balance or $500, whatever is greater, plus
any attorney fees incurred by Landlord by reason of Tenant’s failure to pay
Rent when due hereunder. The late fee shall be calculated and paid for every
five (5) days that the rent due under this lease is late. The parties hereby
agree that such late charges represent a fair and reasonable estimate of the
cost that Landlord will incur by reason of the late payment of Tenant.  Acceptance of such late charges by Landlord
shall in no event constitute a waiver of Tenant’s default with respect to such
overdue amount, nor prevent Landlord from exercising any of the other rights
and remedies granted hereunder.

(g)                                 Prior
Agreements.  This Lease contains all
of the Agreements of the parties hereto with respect to any matter covered or
mentioned in this Lease, and no prior agreement or understanding pertaining to
any such matters shall be effective for any purpose.  No provision of this Lease may be amended or
added to except by an agreement in writing signed by the parties hereto of
their respective successors in interest. 
This Lease shall not be effective or binding on any party until fully
executed by both parties hereto. All prior leases between Landlord and Tenant
are hereby void.

 18
 

(h)                                 Partial
Invalidity.  Any provisions of this
Lease which shall prove to be invalid, void, or illegal shall in no way effect,
impair or invalidate any other provision hereof, and all such other provisions
shall remain in full force and effect.

(i)                                     Cumulative
Remedies.  No remedy or election
hereunder shall be deemed exclusive but shall, whenever possible, be cumulative
with all other remedies at law or in equity.

(j)                                     Choice
of Law.  This Lease shall be governed
by the laws of the State of Maine.

(k)                                  Attorney
Fees.  In the event any action or
proceeding is brought by either party against the other under this Lease, the
prevailing party shall be entitled to recover for the fees of its attorneys in
such action or proceeding, including costs of appeal, if any, such amount as the
court may adjudge reasonable as attorney fees. 
In addition, should it be necessary for Landlord to employ legal counsel
to enforce any of the provisions herein contained, tenant agrees to pay all
attorney fees and court costs reasonably incurred.

(l)                                     Sale
of Demised Premises by Landlord.  In
the event of any sale of the Demised Premises by Landlord, Landlord shall be
and is hereby entirely freed and relieved of all liability under any and all of
its covenants and obligations contained in or derived from this Lease arising
out of any act, occurrence or omission occurring after the consummation of such
sale; and the purchaser, at such sale or any subsequent sale of the Premises,
shall be deemed, without any further agreement between the parties or their successors
in interest or between the parties and any such purchaser, to have assumed and
agreed to carry out any and all of the covenants and obligations of Landlord
under this Lease.

(m)                               Right
of First Refusal. 1) Provided that Tenant is not in default under this
Lease, Tenant shall have the absolute right to match any purchase agreement for
the Premises that Landlord receives from any third party. In the event that
Landlord receives an offer to purchase the Premises it shall provide written
notice to Tenant of the purchase price, terms and conditions of said proposed
sale (“Term Notice”).  Tenant shall have
a period of Fifteen (15) days after receipt of the Term Notice to notify
Landlord that it desires to purchase the Premises in accordance with Term
Notice (“Tenant’s Acceptance Notice”) and a initial down payment equal to Five
(5%) percent of the purchase price, which shall be non-refundable. In the event
that Tenant timely provides Tenant’s Acceptance Notice, the closing of the sale
will take place no later than thirty (30) days after Tenant provides said
Tenant’s Acceptance Notice.  If Tenant
fails to provide the Tenant’s Acceptance Notice or if, after providing Tenant’s
Acceptance Notice, Tenant fails to close the transaction with said thirty (30)
day period then any rights of Tenant to acquire the Premises shall cease and be
of no further force or effect and Landlord shall have the right to sell to
market and sell the Premises to a third party on terms and conditions
reasonably acceptable to Landlord. 2) In the event that the Landlord desires to
sell the Premise, it shall provide written notice to Tenant of the purchase
price, terms and conditions of the price it would propose to sell said premise
(“Offer Term Notice”).Tenant shall have a period of thirty (30) days after
receipt of the Offer Term Notice to notify Landlord that it desires to purchase
the Premises in accordance with Offer Term Notice (“Tenant’s Offer Acceptance
Notice”).  In the event that Tenant
timely provides Tenant’s Offer Acceptance Notice, the closing of the sale will
take place no later than thirty (30) days after Tenant provides said Tenant’s
Offer Acceptance Notice.  If Tenant fails
to provide the Tenant’s Offer Acceptance Notice or if, after providing Tenant’s
Acceptance Notice, Tenant fails to close the transaction with said thirty (30)
day period then any

 19
 

rights of Tenant
to acquire the Premises shall cease and be of no further force or effect and
Landlord shall have the right to sell to market and sell the Premises to a
third party on terms and conditions reasonably acceptable to Landlord, however,
the Tenant shall have the right to match any offer received by Landlord from
such persons, as provided in Section 1 of this paragraph.  This provision shall not apply to a sale
between the present shareholders of Landlord to one another or among their
respective heirs, which will not trigger this right of first refusal, nor shall
any gifts to the heirs of such owner. However the death of all present
shareholders of Landlord will in fact trigger the Tenants right to acquire the
property for Landlord for fair market value.

(n)                                 Option to Purchase. Provided that the Tenant is not then in
default under the terms of this Lease, then the Landlord grants Tenant the
Option to Purchase the Property at Fair Market Value, without accounting for
the valuation of the lease between Landlord and Tenant, or the value of the
Premise based upon the fact that it possesses a Nude Activities Permit from the
City of Portland, Maine.

In
order to exercise this Option, Tenant shall notify the Landlord, in writing, of
its desire to exercise the Option which shall contain a proposed purchase price
supported by a Real Estate Appraisal. If the Landlord agrees to the Purchase
Price proposed by Tenant, then the closing shall occur within 60 days of the
date that the Offer is received by the Landlord. Within 14 days of the Offer
date, the Landlord shall notify Tenant whether it agrees to the Offer Price. If
the Landlord does not agree to the Offer Price, then the Landlord shall, within
45 days of the receipt of the Offer, send a counter-proposal to Tenant, setting
forth its proposed sale price, which sale price shall be supported by a Real
Estate Appraisal. (“Counter-Offer”) If the Tenant agrees to the Purchase Price
proposed by Landlord, then the closing shall occur within 60 days of the date
that the Counter-Offer is received by the Tenant. If the Tenant does not accept
the Counter-Offer, then the parties agree that the Purchase Price will be set
by a third party real estate appraiser. This appraiser shall be selected by
agreement of the Tenants Real Estate Appraiser and the Landlords Real Estate
Appraiser, who shall independently appraise the Premise and set the purchase
price. Such real estate appraisal shall be completed within 45 days of the date
that the Real Estate Appraiser is selected by the Appraiser, who shall select
an appraiser within 14 days of being notified that the Tenant has rejected the
Landlord’s Counter-Offer. If the Appraisers cannot agree on a Third Party Real
Estate Appraiser, then the Appraiser shall be selected by the American
Arbitration Association.  The Closing of
the transaction shall occur within 30 days of the date that the Appraiser
issues his Appraisal of the Premise.

Notwithstanding
the above, the minimum purchase price shall be One Million Seven Hundred Fifty
Thousand ($1,750,000.00).

This
option may be exercised by Tenant during the first 37 months of the lease.
Should the option not be exercised within the first 37 months of the lease,
then the option shall expire. In order to exercise the Option, the Tenant shall
notify the Landlord in writing as required for notice under the Lease and the
closing shall occur as within 60 days thereafter or as soon thereafter as clear
title may be give by Landlord.

(o)                                 Subordination,
Attornment.  Upon request of
Landlord, Tenant will in writing subordinate its rights hereunder to the lien
of any mortgage or deed of trust, to any bank, insurance company or other
lending institution, now or hereafter in force against the Demised Premises,
and to all advances made or hereafter to be made upon the security
thereof.  In the event any proceedings
are brought for foreclosure, or in the event of the exercise of  the power of 

 20
 

sale under any
mortgage or deed of trust made by Landlord covering the Demised Premises,
Tenant shall attorn to the purchaser upon any such foreclosure or sale, and
recognize such purchaser as the Landlord under this Lease.  The provisions of this subparagraph to the
contrary notwithstanding, and so long as Tenant is not in default hereunder,
this Lease shall remain in full force and effect for the full Lease Term
hereof.

(p)                                 Notices.  Except as set forth below, all notices to be
given hereunder by either of the parties shall be in writing.  Any notice may be served by Landlord upon
Tenant personally by delivering the same to an employee of Tenant, or to Tenant
directly.  Any notice shall be deemed
duly served by either party if addressed as set forth below and (i) deposited
with the United States Postal Service as certified mail, return receipt
requested, with proper postage  prepaid,
or (ii) deposited with FedEx or other reliable overnight courier for expedited
delivery.  Either party may change the
address to which the notices may be sent by delivering a copy thereof to the
other party in the manner aforesaid and sent contemporaneously by telecopy and
e-mail.  If service is made by personal
delivery or Federal Express, such service shall be deemed completed upon actual
receipt of such material.  If service
shall be made by certified mail, such service shall be deemed completed as of
the third day following the mailing of such notice in the manner aforesaid.

	
  To Landlord:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  K & R
  Properties, Inc.

  
	
   

  	
   

  	
  800 Bush River
  Road, Ste. C

  
	
   

  	
   

  	
  Columbia, South
  Carolina 22910

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
  Mr. Harry T. Heizer, Jr.

  
	
   

  	
   

  	
  PO Box 3928

  
	
   

  	
   

  	
  Irmo, South
  Carolina 29063

  
	
   

  	
   

  	
  Facsimile: (803)
  750-6457

  
	
   

  	
   

  	
   

  
	
  To Tenant:

  	
   

  	
  KenKev II, Inc.

  
	
   

  	
   

  	
  200 Riverside
  Dr.

  
	
   

  	
   

  	
  Portland, Maine,
  04103

  
	
   

  	
   

  	
   

  
	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Troy Lowrie

  
	
   

  	
   

  	
  VCG Holding
  Corp.

  
	
   

  	
   

  	
  390 Union St.,
  Suite 540

  
	
   

  	
   

  	
  Lakewood,
  CO  80228

  
	
   

  	
   

  	
  Facsimile: (303)
  922-0746

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Michael L.
  Ocello

  	
   

  
	
   

  	
   

  	
  VCG Holding
  Corp.

  	
   

  
	
   

  	
   

  	
  1401 Mississippi
  Avenue, #10

  
	
   

  	
   

  	
  Sauget, IL 62201

  
	
  

  	
   

  	
  Facsimile: (681)
  271-8384

  
	
   

  	
   

  	
   

  

 

 21
 

 

	
  

  	
   

  	
  Allan S. Rubin,
  Esq.

  
	
   

  	
   

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

  
	
   

  	
   

  	
  29800 Telegraph
  Road

  
	
   

  	
   

  	
  Southfield,
  Michigan 48034

  
	
   

  	
   

  	
  Facsimile:
  248-358-9729

  

 

(q)                                 Sale Termination.  In the event that the Agreement for the
Purchase and Sale of Assets (“Agreement”) between Gregory Kenwood Gaines,
Kenkev,Inc and Kenkev II, Inc and VCG Holding Corp., is terminated for any
reason whatsoever, then this Lease shall automatically terminate, any security
deposit paid by Tenant shall be returned and all parties shall be released from
any further liability under this Lease.

(r)                                    Tenant’s
Statement.  Tenant shall at any time
and from time to time, upon not less than ten (10) days prior written notice
from Landlord, execute, acknowledge and deliver to Landlord a statement in
writing containing such statements as Landlord or any prospective purchaser or
mortgagee of the Property may require, including (a) certification that this
Lease is unmodified and in full force and effect (or, if modified, stating the
nature of such modification and certifying that this Lease as so modified is in
full force and effect), and the date to which the rental and other charges are
paid in advance, if any, (b) Tenant’s acknowledgment that there are not, to
Tenant’s knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults if any are claimed, (c) confirmation of the Rent
Commencement Date and the expiration date of the Lease Term, (d) confirmation
that no rents have been paid more than one (1) month in advance, and (e)
confirmation that Tenant has no right to purchase the Premises other that as
contained herein.  If Tenant fails to
execute Tenant’s  Statement within such
ten (10) day period, Landlord is hereby authorized to execute Tenant’s
Statement as Tenant’s attorney in fact. 
Any such statement may be relied upon by the prospective purchaser or
encumbrance of all or any portion of the Property.

(s)                                  Authority.  If Tenant is a corporation, partnership,
trust or limited liability company, each individual executing this Lease on
behalf of Tenant represents and warrants that he or she is duly authorized to
execute and deliver this Lease on behalf of Tenant in accordance with the
bylaws, partnership agreement or operating agreement (as the case may be) of
Tenant, and that this Lease is binding upon Tenant.

(t)                                    No Partnership.  It is expressly understood that the Landlord
and Tenant are not partners or co-venturers and that the Landlord has no right,
title or interest in and to the business of the Tenant, and that the Tenant has
no right to represent or bind the Landlord in any respect whatsoever, and that
nothing contained herein shall be deemed, held or construed as making the
Landlord a partner or associate of the Tenant, or as rendering the Landlord
liable for any debts, liabilities or obligations incurred by the Tenant; it is
being expressly understood that the relationship between the parties hereto is,
and shall at all times remain that of Landlord and Tenant.

 22
 

(u)                                 Nondisclosure Statement.  Tenant hereby agrees that as of the date set
forth herein, and for the term of this Lease as set forth herein, Tenant shall
not disclose the terms of this Lease or the negotiations thereof to any
individual, firm or corporation. This nondisclosure statement shall not
preclude Tenant from disclosing the terms of this Lease or negotiations
thereunder to Tenant’s legal counsel, a financial institution, the Internal
Revenue Service, or any administrative or judicial entity which may require
such information.

31.                               BROKERS.  Tenant warrants that except for the
principals of Landlord (who may be licensed real estate brokers acting on their
own behalf), it has had no dealings with any real estate broker or agents in
connection with the negotiation of this Lease.

IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease as dated:

	
  

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  K& R Properties, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Gregory Kenwood Gaines

  
	
   

  	
   

  	
  Name:

  	
  G. Kenwood
  Gaines

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
  Date:

  	
  9-14-07

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  Kenkev II

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
  Troy Lowrie

  
	
   

  	
   

  	
  Name:

  	
  Troy Lowrie

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
  Date:

  	
  9-14-07

  
							

 

 23
 

EXHIBIT
“A”

LOCATION
OF DEMISED PREMISES

200
Riverside St.

Portland,
Maine

 24

EXHIBIT
“B”

GUARANTY
OF LEASE

In
order to induce K& R Properties (“Landlord”) to enter into that
certain Lease dated    9-14        ,
2007 (the “Lease”) with KenKev II, a Maine Corporation (“Tenant”), VCG Holding
Corp., a Colorado corporation (“Guarantor”) hereby makes the following
agreements with and in favor of Landlord:

1.                                       Guarantor
hereby guarantees, unconditionally and absolutely, the full and faithful
performance and observance of all the covenants, terms, and conditions of the
Lease to be performed and observed by Tenant, expressly including, without
being limited to, the payment, when due, of Minimum Rent and additional rent
payable under the Lease.

2.                                       If
the Lease shall be modified in any respect by agreement between Landlord and
Tenant, the obligations hereunder of Guarantor shall extend and apply with
respect to the full and faithful performance and observance of all the
covenants, terms and conditions of the Lease and of any such modification
thereof.

3.                                       If
the Lease shall be renewed, or its term extended, for any period beyond the
date specified in the Lease for the expiration of said term, either pursuant to
any option granted under the Lease or otherwise, or if Tenant holds over beyond
the term of the Lease, the obligations hereunder of Guarantor shall extend and
apply with respect to the full and faithful performance and observance of all
the covenants, terms and conditions of the Lease and of any such modification
thereof.

4.                                       Insofar
as the payment by Tenant of any sums of money to Landlord is involved, this
Guaranty is a guaranty of payment and not of collection, and shall remain in
full force and effect until payment in full to Landlord of all sums payable
under the Lease. Guarantor waives any right to require that any action be
brought against Tenant.

5.                                       Guarantor
does not require any notice of Tenant’s nonpayment, nonperformance, or
non-observance of the covenants, terms and conditions of the Lease.  Guarantor hereby expressly waives the right
to receive such notice.

6.                                       Guarantor
expressly agrees (without in any way limiting his liability under any other
provision of this Guaranty) that Guarantor shall, at the request of Landlord,
enter into a new lease with Landlord on the same terms and conditions as
contained in the Lease immediately prior to its termination, for a term
commencing on the termination date of the Lease and ending on the expiration
date of the Lease, if the Lease shall be terminated due to a default by Tenant
thereunder.

7.                                       The
liability of Guarantor is coextensive with that of Tenant and also joint and
several, and action may be brought against Guarantor and carried to final
judgment either with or without making Tenant a party thereto.

8.                                       Until
all of Tenant’s obligations under the Lease are fully performed, Guarantor (a)
waives any rights that Guarantor may have against Tenant by reason of any one
or more payments or acts in compliance with the obligations of Guarantor under
this Guaranty, and (b) subordinates any liability or indebtedness of Tenant
held by Guarantor to the obligations of Tenant to Landlord  under this Lease.

9.                                       Neither
Guarantor’s obligation to make payment in accordance with the terms of this
Guaranty nor any remedy for the enforcement thereof shall be impaired,
modified, released or limited in any way by any impairment, modification,
release or limitation of the liability of Tenant or its estate in bankruptcy,
resulting from the operation of any present or future provision of the
Bankruptcy Code of the United States or from the decision of any court interpreting
the same.

10.                                 Guarantor
waives any right to require that resort be had to any security or to any other
credit in favor of Tenant.

11.                                 Guarantor
waives the benefit of any statute of limitations affecting Guarantor’s
liability under this Guaranty.  Guarantor
hereby waives the right to trial by jury in any action or proceeding that may
hereafter be instituted by Landlord against Guarantor in respect of this
Guaranty.

12.                                 Guarantor
irrevocably appoints Tenant as his agent for service of process related to this
Guaranty.

13.                                 Guarantor
shall pay all of Landlord’s expenses, including but not limited to, attorney’s
fees, incurred in enforcing this Guaranty.

14.                                 The
Lease and this Guaranty shall be governed by, interpreted under the laws of,
and enforced in the courts of the State of Maine.

15.                                 This
Guaranty, and all of the terms hereof, shall be binding on Guarantor and the
successors, assigns and legal representatives of Guarantor, and shall inure to
the benefit of and may be enforced by Landlord, its successors and assigns, and
the holder of any mortgage to which the Lease may be subject and subordinate
from time to time.

16.                                 Anything
herein or in the Lease to the contrary notwithstanding, Guarantor hereby
acknowledges and agrees that any security deposit or other credit in favor of
the Tenant may be applied to cure any Tenant default or offset any damages
incurred by Landlord under the Lease, as Landlord determines in its sole and
absolute discretion, and Landlord shall not be obligated to apply any such deposit
or credit to any such default or damages before bringing any action or pursuing
any remedy available to Landlord against Guarantor.  Guarantor further acknowledges that its
liability under this Guaranty shall not be affected in any manner by such
deposit or credit, or Landlord’s application thereof.

17.                                 Guarantor
signs this guarantee personally and not as a representative or officer of any
corporation, partnership, or trust.

	
  

  	
  Guarantor:

  	
  VCG HOLDING CORP.,

  
	
   

  	
   

  	
  390 Union
  Street, Suite 540

  
	
   

  	
   

  	
  Lakewood,
  Colorado, 80228

  
	
   

  
	
  VCG HOLDING CORP., a Maine corporation

  
	
   

  
	
   

  
	
  By:

  	
  /s/Troy Lowrie

  	
   

  
	
  Troy Lowrie, CEOExhibit
10.6

GUARANTY
OF LEASE

In
order to induce K& R Properties (“Landlord”) to enter into that
certain Lease dated 9-14, 2007 (the “Lease”) with KenKev II, a Maine
Corporation (“Tenant”), VCG Holding Corp., a Colorado corporation (“Guarantor”)
hereby makes the following agreements with and in favor of Landlord:

1.             Guarantor hereby guarantees,
unconditionally and absolutely, the full and faithful performance and
observance of all the covenants, terms, and conditions of the Lease to be
performed and observed by Tenant, expressly including, without being limited
to, the payment, when due, of Minimum Rent and additional rent payable under
the Lease.

2.             If the Lease shall be modified in
any respect by agreement between Landlord and Tenant, the obligations hereunder
of Guarantor shall extend and apply with respect to the full and faithful
performance and observance of all the covenants, terms and conditions of the
Lease and of any such modification thereof.

3.             If the Lease shall be renewed, or
its term extended, for any period beyond the date specified in the Lease for
the expiration of said term, either pursuant to any option granted under the
Lease or otherwise, or if Tenant holds over beyond the term of the Lease, the
obligations hereunder of Guarantor shall extend and apply with respect to the
full and faithful performance and observance of all the covenants, terms and
conditions of the Lease and of any such modification thereof.

4.             Insofar as the payment by Tenant of
any sums of money to Landlord is involved, this Guaranty is a guaranty of
payment and not of collection, and shall remain in full force and effect until
payment in full to Landlord of all sums payable under the Lease. Guarantor
waives any right to require that any action be brought against Tenant.

5.             Guarantor does not require any
notice of Tenant’s nonpayment, nonperformance, or non-observance of the
covenants, terms and conditions of the Lease. 
Guarantor hereby expressly waives the right to receive such notice.

6.             Guarantor expressly agrees (without
in any way limiting his liability under any other provision of this Guaranty)
that Guarantor shall, at the request of Landlord, enter into a new lease with
Landlord on the same terms and conditions as contained in the Lease immediately
prior to its termination, for a term commencing on the termination date of the
Lease and ending on the expiration date of the Lease, if the Lease shall be
terminated due to a default by Tenant thereunder.

7.             The liability of Guarantor is
coextensive with that of Tenant and also joint and several, and action may be
brought against Guarantor and carried to final judgment either with or without
making Tenant a party thereto.

	
   

  	
   

  	
  Landlord’s Initials 

  	
  KW

  
	
   

  
	
   

  	
   

  	
  Tenant’s Initials 

  	
  TL

  

 

8.             Until all of Tenant’s obligations
under the Lease are fully performed, Guarantor (a) waives any rights that
Guarantor may have against Tenant by reason of any one or more payments or acts
in compliance with the obligations of Guarantor under this Guaranty, and (b)
subordinates any liability or indebtedness of Tenant held by Guarantor to the
obligations of Tenant to Landlord  under
this Lease.

9.             Neither Guarantor’s obligation to
make payment in accordance with the terms of this Guaranty nor any remedy for
the enforcement thereof shall be impaired, modified, released or limited in any
way by any impairment, modification, release or limitation of the liability of
Tenant or its estate in bankruptcy, resulting from the operation of any present
or future provision of the Bankruptcy Code of the United States or from the
decision of any court interpreting the same.

10.           Guarantor waives any right to require
that resort be had to any security or to any other credit in favor of Tenant.

11.           Guarantor waives the benefit of any
statute of limitations affecting Guarantor’s liability under this
Guaranty.  Guarantor hereby waives the
right to trial by jury in any action or proceeding that may hereafter be
instituted by Landlord against Guarantor in respect of this Guaranty.

12.           Guarantor irrevocably appoints Tenant
as his agent for service of process related to this Guaranty.

13.           Guarantor shall pay all of Landlord’s
expenses, including but not limited to, attorney’s fees, incurred in enforcing
this Guaranty.

14.           The Lease and this Guaranty shall be
governed by, interpreted under the laws of, and enforced in the courts of the
State of Maine.

15.           This Guaranty, and all of the terms
hereof, shall be binding on Guarantor and the successors, assigns and legal
representatives of Guarantor, and shall inure to the benefit of and may be
enforced by Landlord, its successors and assigns, and the holder of any
mortgage to which the Lease may be subject and subordinate from time to time.

16.           Anything herein or in the Lease to
the contrary notwithstanding, Guarantor hereby acknowledges and agrees that any
security deposit or other credit in favor of the Tenant may be applied to cure
any Tenant default or offset any damages incurred by Landlord under the Lease,
as Landlord determines in its sole and absolute discretion, and Landlord shall
not be obligated to apply any such deposit or credit to any such default or
damages before bringing any action or pursuing any remedy available to Landlord
against Guarantor.  Guarantor further
acknowledges that its liability under this Guaranty shall not be affected in
any manner by such deposit or credit, or Landlord’s application thereof.

	
   

  	
   

  	
  Landlord’s Initials 

  	
  KW

  
	
   

  
	
   

  	
   

  	
  Tenant’s Initials 

  	
  TL

  

 

17.                                 Guarantor
signs this guarantee personally and not as a representative or officer of any
corporation, partnership, or trust.

	
   

  	
  Guarantor:

  	
  VCG HOLDING CORP.,

  
	
   

  	
   

  	
  390 Union
  Street, Suite 540

  
	
   

  	
   

  	
  Lakewood,
  Colorado, 80228

  
	
   

  	
   

  	
   

  
	
  VCG HOLDING CORP., a Maine corporation

  
	
   

  
	
   

  
	
  By:

  	
  /s/Troy Lowrie

  	
   

  	
   

  
	
  Troy Lowrie, CEO

  	
   

  	
   

  
					

 

	
   

  	
   

  	
  Landlord’s Initials 

  	
  KW

  
	
   

  
	
   

  	
   

  	
  Tenant’s Initials 

  	
  TL

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