Document:

Purchase Agreement for Kentucky Restaurant Concepts Inc.

 Exhibit 10.31 
 PURCHASE AGREEMENT 
 THIS PURCHASE AGREEMENT is executed effective as of January 2, 2007 , by
and among Troy Lowrie, a person residing in Colorado (hereinafter referred to as “Lowrie”) and, VCG Holding Corp., a Colorado corporation (hereinafter referred to as “VCG”), and Kentucky Restaurants Concepts, Inc., a Kentucky
Corporation doing business as “PT’s Showclub” (hereinafter referred to as the “Company”). 
 WHEREAS, the Company
owns and operates an adult entertainment nightclub known as PT’s Showclub Louisville, located at 227 E. Market St., Louisville, Kentucky (“PT’s Showclub” or the “Premises”) and is licensed by the State of Kentucky to
sell liquor on the Premise. 
 WHEREAS, Lowrie owns a 100% of the shares of the Company. 
 WHEREAS, VCG has offered to purchase, and Lowrie has offered to sell, 100% of its ownership of the Company in accordance with the terms of this
Agreement. 
 NOW, THEREFORE, in consideration of the above premises, the respective representations, warranties and agreements herein
contained, and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. The Purchase 
 1.1 Agreement to Purchase. VCG hereby agrees to purchase, and Lowrie hereby agrees to sell,
transfer, assign and deliver to VCG, the 100% ownership interest it owns in the Company for $300,000 (Three Hundred Thousand Dollars) payable upon closing by wire transfer or certified funds. 
 1.2 Closing. The completion of the purchase shall take place at such place and time as may be agreed between the parties, no later than
March 31, 2007 (the “Termination Date”). The date of completion of the purchase shall be hereinafter referred to as the “Closing Date” . 
 2. Actions on the Closing Date 
 2.1 VCG Actions at Closing. On the Closing Date, VCG shall deliver to Lowrie:

 2.0.1 $300,000 cash in the form of wire transfer or certified funds. 
 2.0.2 A certificate executed by VCG confirming the representations and warranties contained in Section 3 hereof as of the Closing Date. 

2.2 On the Closing Date, Lowrie shall deliver to VCG: 
  

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 2.0.1 A certificate representing transfer of all of Lowrie’s interest of the Company, properly
endorsed and assigned to VCG Holding Corp., and any other instruments or documents that may be necessary, desirable or appropriate to transfer and assign to VCG all of its interest of the Company, all in a form and substance satisfactory to counsel
for VCG; 
 2.0.2 A certificate executed by Lowrie and the Company confirming the representations and warranties contained in Sections 4 and
5 hereof as of the Closing Date; 
 2.0.3 All of the books and records of the Company. 
 2.0.4 Any and all other documents reasonably requested by VCG to be delivered by Seller at Closing. 
 3. Representations and Warranties of VCG. VCG represents and warrants to Seller, as of the date hereof and up to and including the Closing Date, as
follows: 
 3.1 Organization and Good Standing. VCG is a corporation duly organized, validly existing and in good standing under the
laws of the State of Colorado. 
 3.2 Corporate Powers, Compliance with Other Instruments, and Law. VCG has the unconditional right,
power and authority to execute, pursue and complete this Agreement, and neither the execution of this Agreement, nor the completion of the acts and events described in and/or contemplated by this Agreement, in accordance with its provisions, will
violate the Articles of Incorporation, as amended, or bylaws of VCG, nor any existing law, order, rule, regulation, writ, injunction or decree of any governmental entity having jurisdiction over VCG or its properties. 
 4. Representations and Warranties of Seller and the Company. Lowrie, and the Company, jointly and severally, represent and warrant to VCG, as of the date
hereof and up to and including the Closing Date, as follows: 
 4.1 Organization and Good Standing. The Company is a Corporation duly
organized, validly existing and in good standing under the laws of the State of Kentucky. The Company has full power and authority, corporate and otherwise, to carry on its business as and where now conducted and to own and operate the properties
and assets now owned and operated by it. The Company is duly qualified to transact business and in good standing in each jurisdiction where the ownership of its properties and assets or the conduct of its business requires it to be licensed or
qualified to do business. 
 4.2 Licenses. The Company is currently licensed to present live adult entertainment by the City of
Louisville, Kentucky, and is in compliance with all reporting obligations and other requirements of such license. Company has delivered to VCG a true, correct and complete copy of the sexually oriented business license and tavern liquor license, the
original both are at the 

  

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Premises, and the same is in full force and effect. No person or entity (including, but not limited to, the State of Colorado) has commenced any proceeding
against the Company, or against any person currently or previously associated with the Company or PT’s Showclub Louisville, for the revocation or suspension of any such license, or for the imposition of any conditions thereon, or for the
imposition of any fine or penalty on the Company. 
 4.3 Delivery of Documents and Schedules. 
 4.3.1 The Company has delivered to VCG a complete and accurate list, attached hereto as Schedule 4.3.1, of all liens, encumbrances, licenses, leases,
employment agreements (including any pension, profit sharing, bonus or severance pay commitments), collective bargaining agreements, and other contracts, undertakings, and commitments to which the Company is a party or by which it is bound or to
which any of its properties or assets are subject. The Company has performed all obligations required to be performed by it under such liens, encumbrances, licenses, leases, contracts, agreements, and other undertakings and commitments and is not in
default under any of them. 
 4.3.2 The Company has delivered to VCG a complete and accurate list, attached hereto as Schedule 4.3.2, of all
property and assets owned by the Company, including, but not limited to, all equipment, furniture, fixtures, and other physical assets and property owned by the Company and used in connection with the operation of PT’s Showclub. The Company has
good and marketable title to all property and assets used in its business, including, but not limited to, all property and assets reflected in the Financial Statements, as defined in Section 4.7, and in Schedule 4.3.2, and all property and
assets acquired by it after the date of the Financial Statements, subject to no liens, mortgages, pledges, encumbrances, or charges of any kind except as set forth in Schedule 4.2.1. The property and assets of the Company, including, but not limited
to, equipment and other facilities of the Company, have been properly maintained, are in good working and operating condition and repair, and are suitable for the uses for which they are intended and for their use in the business. There are no
security interests on any of the property and assets that arose in connection with any failure or alleged failure to pay any tax. 
 4.3.3
The Company has delivered to VCG a complete and accurate list, attached hereto as Schedule 4.6.3, briefly describing all general liability policies and other insurance policies maintained by the Company, including the annual costs of such policies.
These policies are in amounts and provide coverage customarily maintained by similar businesses similarly situated and are and shall be in full force and effect through the Closing Date. 
 4.3.4 The Company has delivered to VCG a complete and accurate list, attached hereto as Schedule 4.3.4, of all employees and independent contractors of
the Company and their respective rates of compensation, including benefits, if any. All of the employees and independent contracts have and will have received all compensation and benefits due from the Company through the Closing Date. 

 

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 4.3.5 The Company has delivered to VCG a complete and accurate list, attached as Schedule 4.3.5, of all
bank accounts presently maintained by the Company, showing the names of all persons authorized to make withdrawals or sign checks on those accounts or have access to them, and any powers of attorney, presently in effect, granted by the Company.

 4.3.6 Other than as set forth on Schedule 4.2.6 attached hereto, no litigation, proceeding, or controversy is pending against the Company
or its assets before any court or any governmental agency and, to the knowledge of Seller or the Company, no such litigation, proceeding, or controversy is threatened or anticipated. The Company has not violated any laws, regulations, or orders
applicable to its business or activities, and the conduct of the present business of the Company at its present location is in conformity with all zoning and building code requirements. 
 4.3.7 The Company has delivered to VCG true, complete, unmodified and correct copies of the Company’s federal, state and local tax returns.

 4.4 Financial Statements. Attached as Schedule 4.4 are true and complete copies of the financial statements of the Company as of
December 31, 2004 and 2005, and December 31, 2006. The financial statements are complete and accurate, have been prepared in accordance with generally accepted accounting (“GAAP”) principles consistently applied, and present
fairly, to the extent reported thereon, the financial position of the Company as of the end of the periods reflected thereon. The financial statements attached hereto as Schedule 4.4 and information described herein is collectively referred to as
the “Financial Statements.” 
 4.5 Independent Certified Public Accountants. The Financial Statements have been audited by
Ronald Chadwick PC, CPA, independent certified public accountant. 
 4.6 to 4.8 intentionally blank 
 4.9 Material Transactions and Adverse Changes. Between the date of the Company’s Financial Statements and the Closing Date, there has not and
will not have been, occurred or arisen: 
 4.9.1 Any material adverse change in the business or financial condition of the Company from that
shown in the Financial Statements; or 
 4.9.2 Any damage or destruction in the nature of a casualty loss, whether covered by insurance or
not, materially and adversely affecting any one or more assets, properties or the business of the Company; or 
  

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 4.9.3 Irrespective of any rights to indemnification, any waiver, release or deferral, by the Company of
any right to substantial value or significance which singly or in the aggregate is material to the Company; or 
 4.9.4 Any borrowing of
money or any commitment to borrow money by the Company or any cancellation, termination or modification of any existing loan and/or commitment to lend money to the Company; or 
 4.9.5 The creation of or entrance into any new or existing business entity by the Company; or 
 4.9.6 Any other event, condition or state of facts of any character which materially and adversely affects, or, threatens to materially and adversely
affect, the business, properties or assets of the Company, or results of operations or financial condition of the Company. 
 4.10
Taxes. 
 4.10.1 All personal property tax, transaction privilege tax, payroll withholdings, workman’s compensation, income tax,
excise tax, unemployment, social security, occupation, franchise and other taxes, duties or charges levied, assessed or imposed upon the Company by the United States or by any government, state, municipality or governmental subdivision have been and
shall be duly paid by the Company through the Closing Date. All federal state and local income excise, unemployment, social security, occupation, franchise and other tax reports and returns and other reports required by law or regulation have been
and shall be duly filed by the Company through the Closing Date. The Company has withheld and paid when due all taxes required to have been withheld and paid in connection with amounts paid or owing to any employees, independent contractors,
creditors, stockholders or other third parties, through the Closing Date. The Company and Seller have no basis to expect that any authority will assess any additional taxes for any period for which tax returns shall have been filed at the Closing
Date. There is not, and as of the Closing Date there shall not be, any dispute or claim concerning any tax liability of the Company either (a) claimed or raised by any authority in writing or (b) as to which the Company or Seller has
knowledge based upon personal contact with any agent of such authority. There are not, and as of the Closing Date there shall not be, any liabilities for prior years’ taxes that could constitute a lien against any part of the Company’s
assets or property or subject VCG or the Company to liability therefore. 
 4.10.2 Adequate reserves have been established for all income and
other tax liabilities on the Financial Statements for the period then ended and for all preceding periods through the Closing Date for the Company. 
 4.10.3 The Company has not waived and will not waive any statute of limitations with respect to any of its liabilities, including, without limitation, liability for federal income or any other taxes for any period prior to the Closing Date.

  

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 4.10.4 After the Closing Date, neither the Company nor VCG shall have any obligation to pay any tax
attributable to a period or activity prior to the Purchase Date. Any income tax obligation or benefit for the tax period ended December 31, 2006 shall be attributed between, Lowrie and VCG on the basis of the income and expenses of the Company
for that part of the year that the Shares were owned by the respective party. 
 4.11 Contracts. The Company is not a party to any
contract not made in the ordinary course of business, nor is the Company a party to any (1) contract for the employment of any officer or individual employee. 
 4.12 Contingent Liabilities. There are no claims, actions, suits, proceedings or investigations pending or threatened, against or affecting the Company or its property or assets, in any court or before or by
any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or arbitration tribunal, or other forum. There are no judgments, decrees, orders, writs, injunctions, demands
or any other mandates outstanding to which the Company is a party or by which it is bound or its property or assets affected. 
 4.13
Guarantees. There are no contracts or commitments by the Company directly or indirectly guaranteeing the payment, performance or both payment and performance of the obligations of third parties. 
 4.14 Compliance with Laws. The Company has complied in all material respects with all applicable laws, orders and regulations of the federal,
state, municipal and/or other governments and/or any instrumentality thereof, domestic or foreign, applicable to assets of PT’s Showclub assets and/or to the business conducted by it including, without limitation, all applicable liquor laws,
and is not in violation of any laws, orders and regulations which singly or in the aggregate are material. Except for such violations that will not materially, adversely or monetarily affect the Company or its business: 
 (a) The Company has complied with and the Company is not in violation of any federal, state, county and municipal law, ordinance, code or regulation or
governmental rule or regulation, directives or orders. 
 (b) The Company has maintained such records as required by law, Seller will
maintain copies of those records for at least four years after closing and make such records available to VCG and as VCG may reasonably request. 
 (c) The Company has not failed to obtain any, and the Company currently holds and maintains all, licenses, permits or other governmental authorizations necessary to the ownership, operation and sale of its services (all of which licenses,
permits and authorizations are valid) and, in particular, but without limiting the foregoing, the Company is not in violation of any environmental, safety, health, food or drug law, rule or regulation. 
  

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 (d) The Company has complied with and the Company is not in violation of or in default with respect to
any judgment, order, writ, injunction or decree of any court or of any governmental official department, commissions, authority, board, bureau, agency or other instrumentality to which the Company is subject. 
 (e) No material default or breach exists under any contract, lease, agreement, commitment, pledge, encumbrance, lien, claim, charge, right, option or
other instrument or obligation to which the Company is now a party or by which the Company, the property, assets and/or the Company’s business may be bound or affected. 
 4.15 Indebtedness Owed to Partners, Employees or Independent Contractors. The Company is not indebted to any shareholder, employee or independent
contractor as of the date hereof. 
 4.16 Indebtedness Owed by Partner, Employees or Independent Contractors. No money is owed to the
Company by any of the shareholder, employees, or independent contractors of the Company. 
 4.17 Bonuses to Employees and Independent
Contractors. There is no obligation, commitment or past repetitive historical practice of the Company to pay bonuses, royalties or other similar compensation designed to reward past performance, create incentive for future performance or
otherwise, to any officer, director, employee or independent contractor of the Company. 
 4.18 Status of the corporate interest. The
Corporate interests are, and when sold and delivered at the Closing Date will be, legally and validly issued, duly authorized, fully paid and nonassessable. There are no persons holding powers of attorney from the Company or any proxy or power of
attorney with respect to the partnership interests. 
 4.19 Estoppel. All statements in this Agreement with respect to the Company are
true and correct and Lowrie have not made any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements made herein, in the light of the circumstances under which they were made, not
misleading. 
 4.20 Schedules and Exhibits. With respect to the references made throughout the Agreement to Schedules and Exhibits,
the contents thereof are to be deemed to be an integral part of this Agreement among the parties and such contents are incorporated herein by reference. All warranties and representations herein expressly provided shall apply to the information set
forth in the Schedules and Exhibits. 
 4.21 Business Premises, Permitted Use and Zoning, Liquor License. The Premises are 

  

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suitable for the conduct of the business of the Company. The Premises is zoned for use of an “adult entertainment establishment” is a permitted use
as the terms are defined by the City of Louisville. Notwithstanding anything else to the contrary in this Agreement, VCG’s obligations under this Agreement are expressly conditioned on the uses of “adult entertainment” being permitted
uses on the Premises as those terms are defined by the City of Louisville at the Closing Date. 
 4.22 No Insolvency. Neither Lowrie
nor the Company is insolvent and the consummation of this transaction will not render Lowrie insolvent. 
 4.23 Environment, Health and
Safety. The Company has complied with all environmental, health and safety laws with respect to the property and assets and/or the business, and no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand or notice has
been filed or commenced against the Company or any associate person alleging any failure so to comply with respect to the property assets and/or the Company’s business. 
 4.24 Entertainers. Seller and the Company represent that any person who has appeared at the Premises (and may appear prior to the Closing Date) as
an entertainer has always been (and will be) treated and classified by the Company as an independent contractor and not as an “employee.” 
 5.
Representations and Warranties of Seller. Lowrie represents and warrants to VCG as follows: 
 5.1 Lowrie has the capacity to enter
into, and to perform the obligations required by this Agreement. 
 5.2 Other than Troy H. Lowrie, no other person has any direct or indirect
interest in the corporate interests, and Troy H. Lowrie is the sole party who has the power with respect to the corporation’s interests. On delivery of the stock certificate pursuant to this Agreement, VCG will receive good and marketable title
to the ownership, free and clear of all liens, encumbrances, restrictions, equities, and any claims. 
 5.3 VCG has completed a due diligence
investigation, including, but not limited to, discussions with Lowrie , and applicable state and local authorities and government agencies and a review of the following documents of the Company and, as applicable for the last three years (except
where otherwise indicated): the articles of incorporation and bylaws, including amendments from inception; minutes of shareholders’ meetings from inception; all reports and filings under federal and state laws; financial statements; list of
shareholders and copies of partnership interest transfers from inception; material contracts and agreements, employee benefit plans, trusts and related documents; insurance and other welfare plans and programs; employment contracts and consulting
agreements; collective bargaining agreements annual budgets; operating procedure manuals; outside management consulting studies and reports; corporate tax returns; insurance 

  

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coverage; and leases relating to real estate and equipment. After such investigation, Seller has no reason to believe that any of the representations or
warranties contained in Section 4 and this Section 5 are not true, correct, and complete, and none of the representations or warranties contained in such Sections omits any statement or information necessary, in light of the circumstances,
to make such representation or warranty not misleading. 
 5.4 There is no contractual or other obligation owned by the Company of which
Lowrie is aware that is not documented and/or has not been provided to VCG. 
 6. Covenants of , Lowrie, and the Company. Lowrie, and the
Company, hereby covenant and agree as follows: 
 6.1 Actions of Seller and the Company. Prior to the Closing Date, (a) Lowrie,
and the Company shall use their best efforts to complete the transaction contemplated in this Agreement and, without limiting the generality of the foregoing, to obtain all consents and authorizations necessary to transfer the shareholder interests
and all its ownership of the Company to VCG, and to retain/transfer the Company’s license to sell liquor in Kentucky, and will cause to be prepared all documentation related to such consents and authorizations; and (b) Lowrie, and Company
shall make all filings and give all notices to those parties which may be necessary or reasonably required in order to effect the transactions contemplated by this Agreement and to comply with all applicable state laws and regulations in connection
with the effectuation of this Agreement. 
 6.2 Conduct of Business Before Closing. Prior to the Closing Date, Lowrie, and the Company
will not enter into any transaction which would be of such materiality as to render materially false or misleading the description of the Company’s business activities, assets, properties, liabilities, contractual commitments and/or business
relationships or other matters as set forth in this Agreement. Seller and the Company covenant and agree that, from the date of this Agreement until the Closing Date, the Company will at all times conduct its business in the usual and ordinary
course and will not, without the prior written consent of VCG, (a) purchase, sell, or otherwise dispose of any property, asset or services of any kind, other than purchases and sales in the ordinary course of business; (b) mortgage,
pledge, create security interests in or otherwise encumber any of its properties or assets; (c) make or incur any capital commitment or expenditure or any unusual or long term commitment; (d) grant any increase in salary or other increased
compensation to any of its employees or independent contractors; (e) declare or pay any dividend or make any other distribution to shareholders; (f) reveal to third persons any trade secrets, customer lists, or other confidential or
proprietary information; (g) enter into any lease, contract, agreement, purchase or sale order or other commitment relating to the property or the assets or the PT’s Showclub; or (h) modify, amend, cancel or terminate any of its
existing leases, contracts, agreements or other commitments relating to the Company’s business, assets or property, or act otherwise in any manner that may adversely affect its rights, interests, assets, properties or business. 
  

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 6.3 Preservation of Business Organization. From the date hereof through the Closing Date, Lowrie,
and the Company will use their best efforts, to preserve and maintain the Company’s business and personnel, to keep available the services of its management, employees, and independent contractors, and to preserve its good will with suppliers,
customers and others having business relations with it. 
 6.4 Access. The Company will furnish to VCG’s officers, directors,
accountants, attorneys and other representatives full access, during normal business hours throughout the term or applicability of this Agreement, to all information concerning the business and affairs of the Company and its operations as VCG,
acting through such persons, may reasonably request. 
 6.5 Stand-Still. From the date hereof through and including the Closing
Date, Lowrie, and the Company agree not to sell any of its shareholder interests or issue or sell any additional shares of the Company, or grant any rights to subscribe for or to purchase, or any options or warrants for the purchase of, any
additional shares of the Company, or to solicit or encourage from any other person or entity an offer or expression of interest in or with respect to an acquisition, combination, or similar transaction involving the Company or its assets, properties
or securities, and Lowrie, and the Company will promptly inform VCG of the existence of any unsolicited offer or expression of interest.  
 7.
Conditions to Obligations of the Parties 
 7.1 Conditions to the Obligations of Seller. The obligations of Lowrie hereunder
are, at the option of Lowrie, subject to compliance with and/or fulfillment of each of the following conditions prior to the Closing Date. The conditions contained in this Section are included in this Agreement for the benefit of Lowrie and, without
constituting a waiver of any of Lowrie’s rights under this Agreement, may be waived, in whole or in part, by Lowrie. 
 7.1.1
Representations. The representations and warranties of VCG contained in this Agreement shall be true and correct on and as of the date hereof and the Closing Date, with the same effect as though all such representations and warranties had
been made on and as of such dates. 
 7.1.2 Compliance. All the terms, covenants and conditions hereof to be followed and performed by
VCG on or before the Closing Date shall be fully and timely performed. 
 7.1.3 No Errors or Misrepresentations. On or before the
Closing Date, Lowrie shall not have discovered any material error, mistake or omission in the representations and warranties made herein by VCG. 
 7.2 Conditions to Obligations of VCG. The obligations of VCG hereunder are, at the option of VCG, subject to compliance with and/or fulfillment of each of the following conditions prior to the Closing Date. The conditions contained
in this Section are included in this Agreement for the benefit of VCG and, without constituting a waiver of any of VCG’s rights under this Agreement, may be waived, in whole or in part, by VCG. 
  

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 7.2.1 Representations. The representations and warranties of the Company and Lowrie contained in
this Agreement shall be true and correct on and as of the date hereof and through the Closing Date, with the same effect as though all such representations and warranties had been made on and as of such dates. 
 7.2.2 Compliance. All the terms, covenants and conditions hereof to be followed and performed by Lowrie or the Company on or before the Closing
Date shall be fully and timely performed. , Lowrie and the Company shall have delivered to VCG a certificate, dated as of the Closing Date, certifying such detail as VCG may reasonably request as to the fulfillment of the conditions specified in
this Section. 
 7.2.3 No Material Change. There shall not have been any material adverse change in the results of operations of the
Company from that described in the Financial Statements. 
 7.2.4 No Errors or Misrepresentations. On or before the Closing Date, VCG
shall not have discovered any material error, mistake or omission in the representations and warranties made herein by the Company or Lowrie. 
 7.2.5 Consents. All consents, approvals, authorizations, waivers or orders required or necessary for the completion of the transactions contemplated by this Agreement shall have been obtained. No person or entity shall have
threatened any action against Lowrie, the Company and/or VCG to prevent, or as a result of, the completion of this Agreement. 
 7.2.6. No
Material Adverse Change. No damage, destruction, or loss (whether or not covered by insurance), and no other event or condition materially and adversely affecting the condition, financial or otherwise net worth results of operations, assets,
properties, business, or prospects of the Company shall have occurred. 
 7.2.7 Proceedings. No claim, investigations, proceedings or
litigation, either administrative or judicial, threatened or pending against the Company, and no violations pending which threaten to revoke the Company’s liquor license. 
 7.2.8. Assets and Property Verification. Verification by VCG on or prior to the Closing Date of the existence of the type and quantity of the
assets and property listed on Schedule 4.6.4. 
 8. Termination 
 8.1 Termination by Agreement. This Agreement shall terminate if VCG and Lowrie, prior to the Termination Date, decide that the transaction is undesirable and mutually agree to terminate this Agreement, or at
VCG’s option if Lowrie, after using reasonable efforts, is unable to obtain required approval or consents for the completion of the transaction contemplated hereby. 
  

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 8.2 Termination upon Default. If any party shall fail to use its best efforts to complete this
Agreement and all conditions precedent thereto which are the responsibility of that party by the Termination Date, then such shall constitute an event of default under this Agreement. 
 8.2.1 Upon the occurrence of an event of default hereunder, the non-defaulting party shall give written notice to the defaulting party of the existence
of the event of default. 
 8.2.2 If the defaulting party shall not have cured the event of default within fifteen (15) days of the date
notice is given, the non-defaulting party shall have the right to terminate this Agreement and to recover from the defaulting party all costs and expenses incurred by it in connection with this Agreement and the transactions contemplated hereby,
including reasonable attorneys’ fees and other costs of collection. 
 8.3 Automatic Termination. This Agreement shall terminate
in the event the Agreement has not been completed by the Termination Date, unless extended by mutual agreement of Lowrie and VCG, or unless notice of default under Section 8.2 hereof has been given. 
 9. Survival and Indemnification 
 9.1
Survival of Representations and Warranties. All of the representations and warranties of VCG, the Company, and Lowrie contained in this Agreement shall survive the Closing for a period of three (3) years. 
 9.3 Indemnification. 
 9.3.1 Lowrie
shall indemnify and hold harmless VCG (and its directors, officers, employees, affiliates, successors and assigns) against any and all liabilities, obligations and/or losses resulting from any inaccuracy in, or breach of, any representation and
warranty or non-fulfillment of any covenant on the part of Lowrie or the Company contained in this Agreement, or any misrepresentation in or omission from or nonfulfillment of any covenant on the part of Lowrie or the Company contained in any other
agreement, certificate or other instrument furnished or to be furnished to VCG by , Lowrie or the Company pursuant to this Agreement, or arising from any conduct, action or event, or lack there of, which occurred prior to the Closing Date.

 9.3.2 VCG shall give prompt written notice of the assertion of any third party claim of which VCG has knowledge which is covered by the
indemnity agreement set forth in this Section. Lowrie will undertake the defense thereof by representatives chosen by VCG, but reasonably acceptable to Lowrie. If Lowrie within a reasonable time after notice of any such claim fails to defend, VCG
will have the right with reasonable prior written notice to Lowrie to undertake the defense, compromise or settlement of such claim on behalf of and for the account and risk of 

  

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Lowrie, subject to the right of Lowrie to assume the defense of such claim at any time prior to settlement, compromise or final determination thereof. VCG
shall forward to Lowrie notice of any sums due and owing by Lowrie with respect to such claim and Lowrie shall pay such sums to VCG entitled to such indemnification in cash, within thirty (30) days after the date of such notice. 
 10. Miscellaneous 
 10.1 Notice. Any
notice, demand, consent, election, offer, approval, request, or other communication (collectively, a “notice”) required or permitted under this Agreement must be in writing and either delivered personally or sent by certified or registered
mail, postage prepaid, return receipt requested to the addresses listed below. A notice delivered personally will be deemed given only when acknowledged in writing by the person to whom it is delivered. A notice that is sent by mail will be deemed
given three (3) business days after it is mailed. Any party may designate, by notice to all of the others, substitute addresses or addressees for notices; and, thereafter, notices are to be directed to those substitute addresses or addressees.

 If to Lowrie: 
 Troy H. Lowrie

 390 Union Blvd. Suite 540 
 Lakewood, CO 80228 
 If to VCG: 
 Donald W. Prosser, 
 Chief Financial Officer 
 VCG Holding Corp. 
 390 Union Blvd. Suite 540

 Lakewood, CO 80228 
 10.2
Benefit; No Third Party Rights; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended
to confer upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason thereof. This Agreement may not be assigned by any party hereto without the prior written consent of the other
party. 
 10.3 Fees. Except as otherwise provided herein, the parties shall pay their own costs and expenses incident to the
negotiation, preparation and performance of this Agreement, and compliance with all agreements and conditions contained herein, including all fees, expenses and disbursements of their respective counsel, whether or not the transactions contemplated
hereby are completed. 
  

 Page 13 of 16 
 DWP  THL        THL       
 (VCG) (Seller) (Company) 

 10.5 Waiver of Compliance. Except as otherwise provided in this Agreement, any failure of any of
the parties to comply with any obligation, representation, warranty, covenant, agreement, or conditions here may be waived by the other party only by a written instrument signed by the party granting the waiver. Any such waiver or failure to insist
upon strict compliance with a term of this Agreement shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure to comply. 
 10.6 Modification. This Agreement cannot be modified, changed, discharged or terminated except by an instrument in writing, signed by the party against whom the enforcement of any waiver, change, discharge or
termination is sought. 
 10.7 Applicable Law; Jurisdiction and Venue. This Agreement will be construed and governed in accordance
with the laws of the State of Colorado, without regard to conflict of law principles. Any suit involving any dispute or matter arising under this Agreement may only be brought in the United States District Court for the District of Colorado or any
Colorado State Court. All Parties hereby consent to venue and the exercise of personal jurisdiction by any such court with respect to any such proceeding. 
 10.7 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 10.8 Brokerage or Finder’s Fee. Each of the parties hereto represent and warrant to each other that no broker or other person
is entitled to a brokerage or finder’s fee or commission or other compensation in respect to the execution of this Agreement and the completion of the transactions contemplated hereby. Each of the parties hereto agree to indemnify and hold the
other harmless against and in respect to any and all claims, losses, liabilities or expenses which may be asserted against such other party by any broker or other person who claims to be entitled to a brokerage or finder’s fee or commission in
respect of the execution of this Agreement and the completion of the transactions contemplated hereby by reason of his or its acting at the request of such party. 
 10.9 Representation, No Presumption. Each party acknowledges that he or it has obtained such legal, accounting, and investment representation as such party has deemed necessary or appropriate, and no party is
relying on representation obtained by any other party with respect to this Agreement or the actions contemplated hereby. This Agreement or any provision hereof shall not be construed against any party due to the fact that this Agreement or provision
hereof was drafted by said party. 
 10.11 Specific Performance. The parties recognize that irreparable injury will result from a
breach of any provision of this Agreement and that money damages will be inadequate to fully remedy the injury. Accordingly, in the event of a breach or threatened breach of one or more of the provisions of this Agreement, any party who may be
injured (in addition to any other remedies 

  

 Page 14 of 16 
 DWP  THL        THL       
 (VCG) (Seller) (Company) 

 
which may be available to that party) shall be entitled to one or more preliminary or permanent orders (i) restraining and enjoining any act which would
constitute a breach or (ii) compelling the performance of any obligation which, if not performed, would constitute a breach. 
 10.12
Complete Agreement. This Agreement constitutes the complete and exclusive statement of the agreement between and among the parties. It supersedes all prior written and oral statements, agreements or understandings including any prior
representation, statement, condition, or warranty. Except as expressly provided otherwise herein, this Agreement may not be amended without the written consent of all of the parties. 
 10.13 Section Titles. The headings herein are inserted as a matter of convenience only, and do not define, limit, or describe the scope of this
Agreement or the intent of the provisions hereof. 
 10.14 Further Action. The parties hereto shall execute and deliver all documents,
provide all information and take or forbear from all such action as may be necessary or appropriate to achieve the purposes of the Agreement. Lowrie, VCG and the Company shall cooperate with each other in the preparation of federal and state income
tax returns for 2006. 
 10.15 Severability. If any provision of this Agreement, or the application of such provision to any person or
circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. In the event that any such
provision is deemed to be invalid, the parties agree that a court making such judgment shall have the ability to interpret and apply such provision to the fullest extent permitted by law, within such provision’s original intent, and still
maintain its validity. 
  

 Page 15 of 16 
 DWP  THL        THL       
 (VCG) (Seller) (Company) 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of the day and
year first above written. 
  

			
	VCG:
	
	VCG HOLDING CORP.
		
	By:	 	 /s/ Donald W. Prosser

	Name:	 	Donald W. Prosser
	Title:	 	CFO
	Date:	 	January 2, 2007
		
	By:	 	 /s/ Troy H. Lowrie

	Name:	 	Troy H. Lowrie,
	Title:	 	Individually
	Date:	 	January 2, 2007
	
	COMPANY:
	
	KENTUCKY RESTAURANTS CONCEPTS, Inc.
		
	By:	 	 /s/ Troy H. Lowrie

	Name:	 	Troy H. Lowrie
	Title:	 	President
	Date:	 	January 2, 2007

  

 Page 16 of 16 
 DWP  THL        THL       
 (VCG) (Seller) (Company)Purchase Agreement for Restaurant Concepts of Kentucky

 Exhibit 10.32 
 AGREEMENT FOR SALE OF LIMITED PARTNERSHIP INTEREST 
 RESTAURANT CONCEPTS OF KENTUCKY LIMITED
PARTNERSHIP 
 Whereas, the General Partner (Kentucky Restaurant Concepts, Inc.) and Limited Partners (Vali Lowrie-Reed; IS
Investments, Inc.; Smeets Investments LLLP; Lila Phyllis Titello, Trustee of the Titello Family Trust B; Ltd. Investment Group, LLC; Marty Egan; Greg Lapp; Regis Dahl; Eric Peterson; Harold Gorden; and James White) of Restaurant Concepts of Kentucky
Limited Partnership collectively own 100% interest in Restaurant Concepts of Kentucky Limited Partnership. 
 Whereas, per majority
vote, the General Partner and Limited Partners wish to sell 100% of their Partnership interests in Restaurant Concepts of Kentucky Limited Partnership. 
 Whereas, VCG Holding Corp. wishes to purchase 100% of the Limited Partnership of Restaurant Concepts of Kentucky Limited Partnership. 
 The parties agree, represent, and warrant as follows: 
  

	 	1.	The following General Partner and Limited Partners represent and warrant that he or she owns the following interest in Restaurant Concepts of Kentucky Limited Partnership free and
clear of any encumbrance: 

  

				
	 Kentucky Restaurant
Concepts, Inc.
	  	1	%
	 Vali Lowrie-Reed
	  	51	%
	 IS Investments, Inc.
	  	9	%
	 Smeets Investments LLLP
	  	9	%
	 Lila Phyllis Titello, Trustee
of the Titello Family Trust B
	  	9	%
	 Ltd. Investment Group LLC
	  	8	%
	 Marty Egan
	  	3	%
	 Greg Lapp
	  	3	%
	 Regis Dahl
	  	2	%
	 Eric Peterson
	  	2	%
	 Harold Gorden
	  	2	%
	 James White
	  	1	%

  

	 	2.	The General Partner and Limited Partners agree to sell and VCG Holding Corp. agrees to buy the 100% Partnership interests. 

	 	3.	The effective date of this sale shall occur on or before January 10, 2007, at a time and place mutually agreeable to the parties. 

  

	 	4.	VCG Holding Corp. shall issue the General Partner, Kentucky Restaurant Concepts, Inc. 8000 shares of VCG Holding Corp. common stock. 

  

	 	5.	VCG Holding Corp. shall issue the Limited Partners a total of 792,000 shares of VCG Holding Corp. common stock in the following proportions: 

  

			
	Vali Lowrie-Reed	  	408,000 shares
	 IS Investments, Inc.
	  	72,000 shares
	 Smeets Investments LLLP
	  	72,000 shares
	 Lila Phyllis Titello, Trustee
Of the Titello Family Trust B
	  	72,000 shares
	 Ltd. Investment Group LLC
	  	64,000 shares
	 Marty Egan
	  	24,000 shares
	 Greg Lapp
	  	24,000 shares
	 Regis Dahl
	  	16,000 shares
	 Eric Peterson
	  	16,000 shares
	 Harold Gorden
	  	16,000 shares
	 James White
	  	8,000 shares

  

	 	6.	Upon signing this Agreement, VCG Holding Corp. shall have the stock transfer agent execute certificates in the above specified shares. 

  

	 	7.	This Agreement and all terms and provisions hereof shall be true as of the time of closing and shall survive the closing. 

  

	 	8.	This Agreement shall be binding upon the parties hereto and their respective successors, personal representatives, heirs and assigns; however, no party hereto shall have any right
to assign any of its rights or obligations pursuant to the Agreement except with the prior written consent of all of the parties. 

  

	 	9.	This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and may not be amended or modified except in writing subscribed to by all
such parties. 

  

	 	10.	This Agreement is entered into in the State of Colorado and shall be governed in all respects by the laws of the State of Colorado. 

  

	 	11.	 Any controversy of claim, including any claim or misrepresentation arising out of or related to this Agreement or any contract or agreement entered into pursuant to
this Agreement shall be settled by arbitration. 

	 	 
The decision awarded by the arbitrator shall be final and binding and the award so rendered shall be entered in any court having jurisdiction there under.
The arbitration shall be under the rules of the American Arbitration Association. 

  

	 	12.	Any party bringing any claim or action that is determined to be in violation of or covered by this Agreement shall pay the entire cost of the arbitration and shall pay the
attorney’s fees and costs incurred by the prevailing party. 

 GENERAL PARTNER: 
  

					
	Kentucky Restaurant Concepts, Inc.	 		 	
			
	 /s/ Troy H. Lowrie
	 		 	January 10, 2007
	Troy Lowrie, President	 		 	Date
			
	LIMITED PARTNERS:	 		 	
			
	 /s/ Vali Lowrie-Reed
	 		 	January 10, 2007
	Vali Lowrie-Reed	 		 	Date
			
	 /s/ Jay Dinkelmann
	 		 	January 10, 2007
	IS Investments, Inc.	 		 	Date
			
	 /s/ Johan A. Van Baal
	 		 	January 10, 2007
	Smeets Investments LLLP	 		 	Date
			
	 /s/ Lila Phyllis Titello
	 		 	January 10, 2007
	Lila Phyllis Titello, Trustee of theTitello Family Trust B	 		 	Date
			
	 /s/ Micheal Ocello
	 		 	January 10, 2007
	Ltd. Investment Group LLC	 		 	Date
			
	 /s/ Marty Egan
	 		 	January 10, 2007
	Marty Egan	 		 	Date

			
	 /s/ Greg Lapp
	 	January 10, 2007
	Greg Lapp	 	Date
		
	 /s/ Regis Dahl
	 	January 10, 2007
	Regis Dahl	 	Date
		
	 /s/ Eric Peterson
	 	January 10, 2007
	Eric Peterson	 	Date
		
	 /s/ Harold Gorden
	 	January 10, 2007
	Harold Gorden	 	Date
		
	 /s/ James White
	 	January 10, 2007
	James White	 	Date

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