Document:

ex10_2.htm

    
      

    

     

    Exhibit
      10.2

     

    
      {EXECUTION
        VERSION}

      

      NON-COMPETITION
        AGREEMENT

      

      This
        Non-Competition Agreement dated April 23, 2007 (the "Non-Competition
        Agreement"), is by and among Rick’s Cabaret International, Inc., a Texas
        corporation, (the “Company”), BLP Holdings, LLC., a Texas limited liability
        company (“Seller”), and Brian Paul, an individual residing in Flower Mound,
        Texas  (“Paul”).

      

      

      W
        I T N E S S E T H:

      

      WHEREAS,
        simultaneously herewith, the Seller has entered into a Stock Purchase Agreement
        (the “Stock Purchase Agreement”) with the Company to sell to the Company 251,000
        shares of common stock, no par value, of WKC, Inc. (“WKC”) which shares
        represents 100% of the issued and outstanding shares of WKC (the “Transaction”);
        and

      

      WHEREAS,
        Paul is the President of WKC and is the sole manager and member of the Seller;
        and

      

      WHEREAS,
        WKC owns and operates an adult entertainment cabaret known as New Orleans
        Nights
        (“New Orleans Nights” or the “Club”) located at 7101 Calmont, Fort Worth,
        Texas  76116 (the “Premises”); and

      

      WHEREAS,
        the Seller and Paul will each benefit from the Transaction; and

      

      WHEREAS,
        the Company requires that the Seller and Paul enter into this Non-Competition
        Agreement as a condition to the Company entering into the Transaction;
        and

      

      WHEREAS,
        to induce the Company to enter into the Stock Purchase Agreement and to complete
        the Transaction, the Seller and Paul each agree to enter into this
        Non-Competition Agreement; and

      

      NOW,
        THEREFORE, in consideration of the premises, the closing of the Transaction
        and
        other good and valuable consideration, the receipt and sufficiency of which
        are
        hereby acknowledged, the Seller and the Company agree as follows:

      

      1.           Covenants.  For
        a period of five (5) years following the Closing Date set forth in the Stock
        Purchase Agreement (such five (5) year period being referred to herein as
        the
“Restricted Period”), neither Seller nor Paul shall, directly or indirectly,
        either as an employee, employer, consultant, agent, lender, principal, partner,
        stockholder, corporate officer, director, investor, or financier or in any
        other
        individual or representative capacity, whether for compensation or
        not:

      

      
        	
                 

              	
                (a)

              	
                Own
                  or share in the earnings of, carry on, manage, operate, control,
                  be
                  engaged in, render services to, solicit customers for any business
                  engaged
                  in the operation of an establishment featuring live female nude
                  or
                  semi-nude entertainment within a twenty (20) mile radius of the
                  Premises
                  (the “Prohibited Area”); or

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                (b)

              	
                Solicit
                  or induce, or attempt to solicit or induce, wherever located, any
                  employee, independent contractor, or agent or consultant of WKC,
                  the
                  Company or any of its affiliates, or the Club to leave his or her
                  employment or terminate his or her agreement or relationship with
                  WKC, the
                  Company or any of its affiliates or the
                  Club.

              

      

      

      2.           Seller’s
        and Paul’s Acknowledgments and
        Agreements.  The Seller and Paul each
        acknowledge and agree that:

      

      
        	
                 

              	
                (a)

              	
                Due
                  to the nature of WKC’s and the Company’s business, the foregoing covenants
                  place no greater restraint upon the Seller and Paul than is reasonably
                  necessary to protect the business and goodwill of WKC and the
                  Company;

              

      

      

      
        	
                 

              	
                (b)

              	
                These
                  covenants protect a legitimate interest of WKC and the Company
                  and do not
                  serve solely to limit WKC’s and the Company’s future
                  competition;

              

      

      

      
        	
                 

              	
                (c)

              	
                This
                  Non-Competition Agreement is not an invalid or unreasonable restraint
                  of
                  trade;

              

      

      

      
        	
                 

              	
                (d)

              	
                A
                  breach of these covenants by the Seller or Paul would cause irreparable
                  damage to WKC and the Company;

              

      

      

      
        	
                 

              	
                (e)

              	
                These
                  covenants will not preclude the Seller or Paul from obtaining reasonable
                  business relationships or becoming gainfully employed following
                  the
                  closing of the Stock Purchase
                  Agreement;

              

      

      

      
        	
                 

              	
                (f)

              	
                These
                  covenants are reasonable in scope and are reasonably necessary
                  to protect
                  WKC’s and the Company’s business and goodwill and valuable and extensive
                  trade which WKC and the Company have established through their
                  own expense
                  and effort;

              

      

      

      
        	
                 

              	
                (g)

              	
                The
                  signing of this Non-Competition Agreement is necessary as part
                  of the
                  consummation of the Transaction previously discussed;
                  and

              

      

      

      
        	
                 

              	
                (h)

              	
                The
                  Seller and Paul have carefully read and considered all provisions
                  of this
                  Non-Competition Agreement and that all of the restrictions set
                  forth are
                  fair and reasonable and are reasonably required for the protection
                  of the
                  interests of WKC and the Company.

              

      

      

      3.           Remedies,
        Injunction.  In the event of the
        Seller’s or Paul’s actual breach of any provisions of this Non-Competition
        Agreement, the Seller and Paul each agree that WKC and the Company shall
        be
        entitled to a temporary restraining order, preliminary injunction and/or
        permanent injunction restraining and enjoining the Seller and/or Paul from
        violating the provisions herein.  Nothing in this Non-Competition
        Agreement shall be construed to prohibit WKC or the Company from pursuing
        any
        other available remedies for such breach or threatened breach, including
        the
        recovery of damages from the Seller and/or Paul.  The Seller and Paul
        each further agrees that, for the purpose of any such injunction proceeding,
        it
        shall be presumed that WKC’s and the Company's legal remedies would be
        inadequate and that WKC and the Company would suffer irreparable harm as
        a
        result of the Seller’s or Paul’s violation of the provisions of this
        Non-Competition Agreement.

      
        
          
          

        

        
          Non-Competition
            Agreement - Page 2

          
            

          

        

        
          
          

        

      

       

      4.           Severability.  In
        the event that any of the provisions of this Non-Competition Agreement are
        held
        to be invalid or unenforceable in whole or in part, those provisions to the
        extent enforceable and all other provisions shall nevertheless continue to
        be
        valid and enforceable as though the invalid or unenforceable parts had not
        been
        included in this Non-Competition Agreement.  In the event that any
        provision relating to the time period or scope of a restriction shall be
        declared by a court of competent jurisdiction to exceed the maximum time
        period
        or scope such court deems reasonable and enforceable, then the time period
        or
        scope of the restriction deemed reasonable and enforceable by the court shall
        become and shall thereafter be the maximum time period or the applicable
        scope
        of the restriction.  The Seller and Paul each further agree that such
        covenants and/or any portion thereof are severable, separate and independent,
        and should any specific restriction or the application thereof, to any person,
        firm, corporation, or situation be held to be invalid, that holding shall
        not
        affect the remainder of such provisions or covenants.

      

      5.           General
        Provisions.

      

      
        	
                 

              	
                (a)

              	
                Notices.  Any
                  notices to be given hereunder by either party to the other may
                  be effected
                  either by personal delivery in writing or by mail, registered or
                  certified, postage prepaid with return receipt requested or by
                  a
                  recognized overnight delivery service.  Mailed notices shall be
                  addressed to the parties at the addresses set forth below, but
                  each party
                  may change their address by written notice in accordance with this
                  Paragraph (a).  Notices delivered person­ally shall be
                  deemed communicated as of actual receipt; mailed notices shall
                  be deemed
                  communicated as of three (3) days after mailing; and overnight
                  delivery
                  service shall be deemed delivered one (1) day after depositing
                  with the
                  overnight delivery service.

              

      

      

      
        	
                 

              	
                If
                  to Company:

              	
                Eric
                  Langan, President

              

      

      10959
        Cutten Road

      Houston,
        Texas 77066

      

      
        	
                 

              	
                With
                  a copy to:

              	
                Mr.
                  Robert D. Axelrod

              

      

      Axelrod,
        Smith & Kirshbaum

      5300
        Memorial Drive, Suite 700

      Houston,
        Texas 77007

      

      
        	
                 

              	
                If
                  to Seller or Paul:

              	
                BLP
                  Holdings, LLC

              

      

      Attn:  Brian
        Paul

      1020
        Cannongate Drive

      Flower
        Mound, Texas  75022

      

      
        	
                 

              	
                (b)

              	
                Law
                  Governing Non-Competition Agreement and Venue.  This
                  Non-Competition Agreement shall be governed by and construed in
                  accordance
                  with the laws of the State of Texas.  Venue shall be in Tarrant
                  County, Texas for any legal proceeding to enforce the terms, conditions
                  or
                  covenants contained herein.

              

      

      
        
          
          

        

        
          Non-Competition
            Agreement - Page 3

          
            

          

        

        
          
          

        

      

       

      
        	
                 

              	
                (c)

              	
                Contract
                  Terms to be Exclusive.  This Non-Competition Agreement
                  contains the sole and entire agreement between the parties and
                  shall
                  supersede any and all other agreements between the parties with
                  respect to
                  the Seller’s and Paul’s agreement not to compete with WKC and the
                  Company.

              

      

      

      
        	
                 

              	
                (d)

              	
                Waiver
                  or Modification Ineffective Unless in Writing.  It is
                  further agreed that no waiver or modification of this Non-Competition
                  Agreement or of any covenant, condition, or limitation herein contained
                  shall be valid unless in writing and duly executed by the party
                  to be
                  charged therewith and that no evidence of any waiver or modification
                  shall
                  be offered or received in evidence in any proceeding or litigation
                  between
                  the parties hereto arising out of or affecting this Non-Competition
                  Agreement, or the rights or obligations of any party hereunder,
                  unless
                  such waiver or modification is in writing, duly executed as
                  aforesaid.

              

      

      

      
        	
                 

              	
                (e)

              	
                Assignment.  The
                  rights and benefits of WKC and the Company under this Non-Competition
                  Agreement shall inure to the benefit of and be binding upon the
                  successors
                  and assigns of WKC and the Company.  The rights of the Seller
                  and Paul hereunder are personal and nontransferable except that
                  the rights
                  and benefits hereof shall inure to the benefit of the heirs, executors
                  and
                  legal representatives of the Seller and
                  Paul.

              

      

      

      
        	
                 

              	
                (f)

              	
                Binding
                  Effect.  Except as otherwise provided herein, this
                  Non-Competition Agreement shall be binding upon and inure to the
                  benefit
                  of the parties hereto and their respective successors and
                  assigns.

              

      

      

      
        	
                 

              	
                (g)

              	
                Execution.  This
                  Agreement may be executed in two or more counterparts, all of which
                  when
                  taken together shall be considered one and the same agreement and
                  shall
                  become effective when counterparts have been signed by each party
                  and
                  delivered to the other party, it being understood that both parties
                  need
                  not sign the same counterpart.  In the event that any signature
                  is delivered by facsimile transmission or by e-mail delivery of
                  a “.pdf”
                  format data file, such signature shall create a valid and binding
                  obligation of the party executing (or on whose behalf such signature
                  is
                  executed) with the same force and effect as if such facsimile or
“.pdf”
                  signature page were an original
                  thereof.

              

      

      

      

      [SIGNATURES
        ON FOLLOWING PAGE]

      
        
          
          

        

        
          Non-Competition
            Agreement - Page 4

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, this Non-Competition Agreement has been executed as of the
        23rd
        day of April, 2007.

      

      

      
        
          
            
              
                	 	RICK’S
                        CABARET INTERNATIONAL, INC.
	 	 	 
	 	 	 
	 	
                        By:

                      	
                        /s/
                          Eric Langan

                      
	 	 	
                        Eric
                          Langan, President

                      
	 	 	 
	 	 	 
	 	SELLER:
	 	 	 
	 	 	 
	 	/s/
                        Brian Paul
	 	BLP
                        HOLDINGS, LLC
	 	By:  Brian
                        Paul, Sole Member and Manager
	 	 	 
	 	 	 
	 	/s/
                        Brian Paul
	 	BRIAN
                        PAUL,
                        INDIVIDUALLY

              

            

          

        

      

      
 

      Non-Competition
        Agreement - Page 5Unassociated Document

    
      

    

    Real
      Estate Sales Contract

    

    This
      contract to buy and sell real property (the Contract”) is between Seller and
      Buyer as
      identified below and is effective on the date ("Effective Date”)
      of the
      last of the signatures by Seller and Buyer as parties to this Contract. If
      the
      Earnest Money is paid by check and payment on
      presentation is refused, this Contract shall be null and void.

    

    
      	
              Seller:

            	
              THOMAS
                FELSENTHAL and CONRAD SCHUBERTH/and/or their
                Assigns

            

    

    

    
      	 	
              Address:

            	
              Thomas
                Felsenthal

            

    

    8949
      Random Road

    Fort
      Worth, TX 76179-2741

    

    
      	 	
              Phone:

            	
              (817)384-1687

            

    

    

    
      	 	
              E-Mail:

            	
              Tfelsenthal@charter.net

            

    

    

    
      	 	
              Address:

            	
              Conrad
                E. Schuberth

            

    

    2502
      N.
      Clark Street

    Chicago,
      IL 60614

    

    
      	 	
              Phone:

            	
              773-248-3343

            

    

    

    
      	 	
              E-Mail:

            	
              Ceshube@comcast.net

            

    

    

    
      	
              Buyer:

            	
              W.K.C.
                Inc. or its permitted assigns

            

    

    

    
      	 	
              Address:

            	
              c/o
                Brian Paul, President

            

    

    2803
      Alta
      Mere

    Fort
      Worth, Texas 76116

    

    
      	 	
              Phone:

            	
              (817)
                732-0000

            

    

    

    
      	 	
              Fax:

            	
              (817)
                732-2239

            

    

    

    
      	 	
              E-Mail:

            	
              bpfirewater@vahoo.com

            

    

    

    
      	
              Property:

            	
              Lot
                6-A-R, Block 5, Alta Mere Addition, being a revision of Lot 6-A,
                Block 5,
                Alta
                Mere Addition to the City of Fort Worth, Tarrant County, Texas, according
                to the revised Plat recorded in Volume 388-117, Page 51, Plat Records,
                Tarrant County,
                Texas (excluding any and all mineral
                rights).

            

    

    

    
      	
              Title
                Company:

            	
              Stewart
                Title

            

    

    C/O
      Gerry
      Orth

    2501
      Parkview Ste. 123

    Fort
      Worth, TX 76102

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    Purchase
      Price

    

    
      	 	
              Cash
                portion:

            	
              $100,000.00

            

    

    

    
      	 	
              Seller
                financed portion:

            	
              $2,400,000.00

            

    

    

    
      	 	
              Total
                purchase price:

            	
              $2,500,000.00

            

    

    

    At
      closing, Buyer will execute a Note payable to Sellers for the purchase price
      less cash payment set
      forth
      above. Such Note shall be secured by a Deed of Trust in favor of Sellers, as
      well as a security
      agreement from Buyer to Seller whereby Buyer shall grant to Seller a lien on
      the
      business assets of Buyer located on the Property. Such Note, Deed of Trust
      and
      Security Agreement
      shall be in the form attached hereto as Appendix
      "A"and
      "B" respectively
      and shall contain
      the following terms and conditions:

    

    
      	 	
              a.

            	
              Principal
                balance of Note:  $2,400,000.00

            

    

    

    
      	 	
              b.

            	
              Interest
                rate and payment schedule: The Note shall be amortized over nine
                (9)
                years
                with a balloon payment of all remaining principal and interest due
                six
                (6) years
                after the date the Note is executed; The Note shall accrue interest
                during
                the first
                two (2) years at the rate of 7.25 percent and monthly payments for
                the
                first two
                (2) years of the Note shall be $30,219.86; The Note shall accrue
                interest
                during
                the third and fourth year at the rate of 8.25 percent and monthly
                payments
                for
                years three and four of the Note shall be $31,308.01; The Note shall
                accrue interest
                during years five and six at the rate of 9.25 percent and monthly
                payments
                for
                years five and six of the Note shall be
                $32,050.37;

            

    

    

    
      	 	
              c.

            	
              There
                will be no penalty for the pre-payment of any principal owed on the
                Note,
                however,
                pre-payment of principal shall only be permitted in amounts of
                $50,000.00
                or more;

            

    

    

    
      	 	
              d.

            	
              The
                Deed of Trust with Vendor's Lien shall include a provision requiring
                Buyer
                to
                maintain general liability insurance in the amount of at least
                $3,000,000.00, and casualty
                insurance in the amount of at least $2,000,000.00, and both policies
                shall
                name
                Sellers and/or their Assigns as additional insureds, and as the Loss
                Payee
                on the
                casualty insurance. Buyer shall not demolish or remove any improvements
                from
                the Property without Seller's prior written
                consent.

            

    

    

    
      	 	
              e.

            	
              Seller
                reserves from the conveyance of the Property all oil, gas, and other
                minerals in
                and under and that may be produced from the Property and presently
                owned
                by Seller. In connection with such reservation, Seller agrees to
                waive and
                relinquish any
                use of the surface of the Property for the exploration and/or removal
                of
                oil, gas or other minerals, and the right to place or maintain any
                structures, improvements, equipment
                or pipelines in, on, under or across the Property. Such surface waiver
                will
                be included in the General Warranty Deed to be delivered at
                Closing.

            

    

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    
      	
              Earnest
                Money:

            	
              $100,000.00

            

    

    

    
      	
              County
                for Performance:

            	
              Tarrant
                County, Texas

            

    

    

    
      	
              A.

            	
              Deadlines
                and Other Dates

            

    

    

    All
      deadlines in this Contract expire at 5:00 P.M. local time where the Property
      is
      located. If a deadline falls on a Saturday, Sunday, or national holiday, the
      deadline will be extended to the next
      day
      that is not a Saturday, Sunday, or national holiday. A national holiday is
      a
      holiday designated
      by the federal government. Time is of the essence.

    

    
      1.    EarnestMoney
        Deadline:  $100,000.00
        shall be paid to the Title Company no later
        than 2 business days following the final execution of this Contract. All
        earnest
        money shall be held by the Title Company in an interest bearing account (with
        such interest being paid to the party entitled to receive the Earnest Money
        Deposit
        pursuant to this Contract), and is non-refundable if Buyer fails to close
        for
        any
        reason except in the event of Seller's default hereunder or the termination
        of
        this
        Contract by Buyer pursuant to a right to do so granted elsewhere in this
        Contract.

    

    

    
      2.    Closing
        Date:  The
        Closing (herein so called) of the purchase and sale of the
        Property shall be held at the offices of the Title Company on or before April
        23, 2007, or within
        7
        days after objections to title have been cured, whichever date is later (it
        being the intent of
        Buyer
        that it may accelerate the Closing Date upon compliance with all conditions
        to
        closing required
        of Buyer hereunder).

    

    

    
      	
              B.

            	
              Closing
                Documents

            

    

    

    
      	 	
              1.

            	
              At
                closing, Seller will deliver the following
                items:

            

    

    

    General
      Warranty Deed with Vendor's Lien;

    

    The
      Owner's Policy of Title Insurance; and

    

    A
      written
      agreement terminating the existing lease agreement between the
      parties.

    

    
      	 	
              2.

            	
              At
                closing, Buyer will deliver the following
                items:

            

    

    

    Note,
      Deed of Trust, and Security Agreement.

    

    
      	
              C.

            	
              Purchase
                and Sale of Property

            

    

    

    Seller
      agrees to sell and convey the Property to Buyer, and Buyer agrees to buy and
      pay
Seller
      for the Property. The promises by Buyer and Seller stated in this Contract
      are
      the consideration
      for the formation of this Contract.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    
      	
              D.

            	
              Title
                and Survey

            

    

    

    1.    Review
      of Title.  The
      following statutory notice is provided to Buyer on behalf of the
      real
      estate licensees, if any, involved in this transaction: Buyer
      is advised that it should either
      have the abstract covering the Property examined by an attorney of Buyer's
      own
selection
      or be furnished with or obtain a policy of title
      insurance.

    

    2.    Title
      Commitment; Title Policy.  "Title
      Commitment" means a Commitment for Issuance
      of an Owner Policy of Title Insurance by Title Company, as agent for
      Underwriter, stating
      the condition of title to the Property. The "effective date" stated in the
      Title
      Commitment must
      be
      after the Effective Date of this Contract. "Title Policy" means an Owner Policy
      of Title Insurance
      issued by Title Company, as agent for Underwriter, in conformity with the last
      Title Commitment
      delivered to and approved by Buyer in the full amount of the Purchase Price.
      Buyer
      shall obtain an Owner's Title Policy and a Mortgagee's Title Policy. Buyer
      and
      Seller shall
      each pay one-half of the premium for the Owner's Title Policy, and Buyer shall
      pay 100% of the premium for the Mortgagee's Title Policy.

    

    3.    Survey. 
      "Survey"
      means an on-the-ground, staked plat of survey and metes-and- bounds
      description of the Land, prepared by Surveyor or another surveyor satisfactory
      to Title Company,
      and certified to comply with the current standards and specifications as
      published by the
      Texas
      Society of Professional Surveyors for the Survey Category. Buyer shall pay
      100%
      of the
      cost
      of the Survey, except in the event of Seller's Default (defined in Paragraph
      H
      1. below).

    

    4.    Delivery
      of Title Commitment, Survey, and Legible Copies.  Seller
      shall deliver the
      Survey, the Title Commitment and legible copies of the title instruments to
      Buyer as soon as the same are available, but not later than 20 days following
      the effective date of this Contract.

    

    5.    Title
      Objections.   Buyer
      has
      ten (10) days after the delivery of both the Title Commitment
      and the Survey ("Title Objection Deadline") to review the Survey, Title
Commitment,
      and legible copies of the title instruments referenced in them and notify Seller
      of Buyer's objections to any of them ("Title Objections"). Buyer will be deemed
      to have approved all
      matters reflected by the Survey and Title Commitment to which Buyer has made
      no
      Title Objection
      by the Title Objection Deadline. The matters that Buyer either approves or
      is
      deemed to
      have
      approved are "Permitted Exceptions." If Buyer notifies Seller of any Title
      Objections, Seller has 30 days from receipt of Buyer's notice to notify Buyer
      whether Seller agrees to cure the
      Title
      Objections before closing ("Cure Notice"). If Seller does not timely give its
      Cure Notice
      or
      timely gives its Cure Notice but does not agree to cure all the Title Objections
      before closing,
      Buyer may, within five days after the deadline for the giving of Seller's Cure
      Notice, notify
      Seller that either this Contract is terminated, in which case Buyer shall be
      entitled to the return
      of
      all Earnest Money, if any, on deposit with the Title Company. Alternatively,
      Buyer may
      elect
      to proceed to close, subject to Seller's obligations to resolve the items listed
      in Schedule
      C of the Title Commitment, remove the liquidated liens, remove all exceptions
      that arise
      by,
      through, or under Seller after the Effective Date, and cure only the Title
      Objections that Seller
      has agreed to cure in the Cure Notice. At or before closing, Seller must resolve
      the items that
      are
      listed on Schedule C of the Title Commitment, remove all liquidated liens,
      remove all exceptions
      that arise by, through, or under Seller after the Effective Date of this
      Contract, and cure
      the
      Title Objections that Seller has agreed to cure.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
      	
              E.

            	
              Condition
                of the Property until Closing; Cooperation; No Recording of
                Contract

            

    

    

    1.    Maintenance
      and Operation.   Until
      closing, Buyer will maintain the Property as it existed
      on the Effective Date, except for reasonable wear and tear and casualty
      damage.

    

    2.    Current
      Lease.  Buyer
      shall continue to lease the property from Seller and Seller shall
      continue to lease the property to Buyer, and Buyer and Seller shall fully comply
      with the terms
      of
      the lease agreement currently in effect between the parties.

    

    3.    Casualty
      Damage.   Seller
      will notify Buyer promptly after discovery of any casualty
      damage to the Property. Seller will have no obligation to repair or replace
      the
      Property if it is damaged by casualty before closing, subject to the terms
      of
      the existing lease agreement. Buyer
      may
      terminate this Contract if the casualty damage that occurs before closing would
      materially
      affect Buyer's intended use of the Property, by giving notice to Seller within
      fifteen days
      after receipt of Seller's notice of the casualty (or before closing if Seller's
      notice of the casualty
      is received less than fifteen days before closing). The casualty damage will
      be
      deemed to
      materially affect Buyer's intended use if the estimated amount of the damage
      exceeds 30 percent
      or more of the Purchase Price. If Buyer does not terminate this Contract, Seller
      will (a) convey
      the Property to Buyer in its damaged condition, (b) assign to Buyer all of
      Seller's rights under
      any
      property insurance policies covering the Property.

    

    4.    Condemnation.  
      Seller
      will notify Buyer promptly after Seller receives notice that any
      part
      of the Property has been or is threatened to be condemned or otherwise taken
      by
      a governmental
      or quasi-governmental authority. Buyer may terminate this Contract if the
condemnation
      would materially affect Buyer's intended use of the Property by giving notice
      to
Seller
      within fifteen days after receipt of Seller's notice to Buyer (or before closing
      if Seller's notice
      is
      received less than fifteen days before closing). If Buyer does not terminate
      this Contract,
      (a) Buyer and Seller will each have the right to appear and defend their
      respective interests
      in the Property in the condemnation proceedings, (b) any award in condemnation
      will be
      assigned to Buyer, and (c) if the taking occurs before closing, the description
      of the Property will
      be
      revised to delete the portion taken.

    

    5.    Claims;Hearings. 
      Seller
      will notify Buyer promptly of any claim or administrative
      hearing that is threatened, filed, or initiated before closing that affects
      the
Property.

    

    6.    Cooperation.  
      Seller
      will cooperate with Buyer (a) before and after closing, to transfer the
      applications, permits, and licenses held by Seller and used in the operation
      of
      the Property
      and (b) before closing, with any reasonable evaluation, inspection, audit,
      or
      study of the Property
      prepared by, for, or at the request of Buyer.

    

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

     

    7.    No
      Recording.   Buyer
      may
      not file this Contract or any memorandum or notice of this
      Contract in the real property records of any county. If, however, Buyer records
      this Contract or
      a
      memorandum or notice, Seller may terminate this Contract and record a notice
      of
termination.

    

    
      	
              F.

            	
              Termination

            

    

    

    1.    Duties
      after Termination. If
      this
      Contract is terminated, Buyer will promptly return
      to
      Seller all documents relating to the Property that Seller has delivered to
      Buyer
      and all copies that Buyer has made of the documents. After return of the
      documents and copies, neither party
      will have further duties or obligations to the other under this Contract, except
      for those obligations that cannot be or were not performed before termination
      of
      this Contract.

    

    
      	
              G.

            	
              Closing

            

    

    

    1.    Closing.
      This
      transaction will close at Title Company's offices at the Closing Date
      and
      Closing Time. At closing, the following will occur:

    

    
      	 	
              a.

            	
              Closing
                Documents   The
                parties will execute and deliver the Closing Documents, and such
                other
                documents as are typically required by the Title
                Company in connection with the purchase and sale of Real Property
                in
                Tarrant County, Texas.

            

    

    

    
      	 	
              b.

            	
              Payment
                of Purchase Price.  Buyer
                will deliver the Purchase Price and other
                amounts that Buyer is obligated to pay under this Contract to Title
                Company
                in funds acceptable to Title Company. The Earnest Money will be
                applied to the Purchase Price.

            

    

    

    
      	 	
              c.

            	
              Disbursement
                of Funds; Recording; Copies.  Title
                Company will be instructed
                to disburse the Purchase Price and other funds in accordance with
                this Contract, record the deed and the other Closing Documents
                directed
                to be recorded, and distribute documents and copies in accordance
                with the
                parties' written instructions.

            

    

    

    
      	 	
              d.

            	
              Delivery
                of Originals.   Seller
                will deliver to Buyer the originals of Seller's Records.

            

    

    

    
      	 	
              e.

            	
              Possession.  
                Seller
                will deliver possession of the Property to Buyer, subject
                to the Permitted Exceptions existing at closing and any lien and
                security
                interest in favor of Seller, if the sale is
                Seller-financed.

            

    

    

    
      	 	
              2.

            	
              Transaction
                Costs

            

    

    

    
      	 	
              a.

            	
              Seller's
                Costs.   Seller
                will pay one-half of the premium for the Owner's Title
                Policy, one-half of the escrow fee charged by Title Company; the
                costs to
                prepare the deed; the costs to obtain, deliver, and record
                releases of
                all liens to be released at closing; the costs to record all documents
                to
                cure
                Title Objections agreed to be cured by Seller; Title Company's
                inspection
                fee to delete from the Title Policy the customary exception for
                parties
                in possession; the costs to obtain the Survey and certificates or
                reports
                of ad valorem taxes; the costs to deliver copies of the instruments
                described
                in section D.4.; and Seller's expenses and attorney's
                fees.

            

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    
      	 	
              b.

            	
              Buyer's
                Costs.  Buyer
                will pay one-half of the escrow fee charged by Title Company;
                one-half of the premium for the Owner's Title Policy and the entire
                premium for the Mortgagee's Title Policy; the costs to obtain,
                deliver,
                and record all documents other than those to be recorded at Seller's
                expense; the additional premium for the "survey/area and boundary
                deletion" in the Title Policy, if the deletion is requested by
                Buyer;
                the costs of work required by Buyer to have the survey reflect
                matters
                other than those required under this Contract; the costs to obtain
                financing
                of the Purchase Price, including the incremental premium costs
                of
                mortgagee's title policies and endorsements and deletions required
                by
                Buyer's
                lender; and Buyer's expenses and attorney's
                fees.

            

    

    

    
      	 	
              c.

            	
              Ad
                Valorem Taxes.  Ad
                valorem taxes for the Property for the calendar year
                of closing will be paid by Buyer. Seller will promptly notify Buyer
                of
                all notices of proposed or final tax valuations and assessments that
                Seller
                receives after the Effective Date and after closing. All taxes due
                as
                of
                closing will be paid at closing. If the Property has been the subject
                of
                special
                valuation and reduced tax assessments pursuant to the provisions
                of
                chapter 23, subchapter D, of the Texas Tax Code with respect to any
                period
                before the closing and additional taxes are assessed pursuant to
                section
                23.55 thereof, the following will
                apply:

            

    

    

    
      	 	
              (1)

            	
              If
                Seller changes the use of the Property before closing, resulting
                in the
                assessment of additional taxes for periods before closing, Seller
                will pay
                the additional taxes.

            

    

    

    
      	 	
              (2)

            	
              If
                this sale or Buyer's use of the Property results in the assessment
                of
                additional taxes for periods before closing, Buyer will pay the
                additional
                taxes.

            

    

    

    
      	 	
              d.

            	
              Postclosing
                Adjustments.  If
                errors in the prorations made at closing are identified
                within ninety days after closing, Seller and Buyer will make postclosing
                adjustments to correct the errors within fifteen days of receipt
                of
                notice of the errors.

            

    

    

    
      	 	
              e.

            	
              Brokers'
                Commissions.  Buyer
                and Seller each indemnify and agree to defend and
                hold the other party harmless from any loss, attorney's fees, and
                court
                and other
                costs arising out of a claim by any person or entity claiming by,
                through,
                or
                under the indemnitor for a broker's or finder's fee or commission
                because
                of this
                transaction or this Contract, whether the claimant is disclosed to
                the
                indemnitee or not. At closing, each party will provide the other
                party
                with a release
                of broker's or appraiser's liens from all brokers or appraisers for
                which
                each
                party was responsible.

            

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      	 	
              f.

            	
              Lease
                Agreement.  Rent
                for the month of closing and all other charges due Seller
                under the existing lease agreement shall be prorated at the Closing,
                effective
                as of the Closing Date, using the best available computations of
                such
                items.
                At the Closing, the existing lease agreement shall be terminated
                and
                the
                parties shall have no further obligations to each other thereunder
                except
                those
                that expressly survive its
                termination.

            

    

    

    3.    Issuance
      of Title Policy.  Buyer
      will cause Title Company to issue the Mortgagee Title
      Policy to Seller as soon as practicable after closing.

    

    
      	
              H.

            	
              Default
                and Remedies

            

    

    

    1.    Seller's
      Default.  If
      Seller
      fails to perform any of its obligations under this Contract
      ("Seller's Default"), Buyer may elect either of the following as its sole and
      exclusive remedy:

    

    
      	 	
              a.

            	
              Termination;
                Liquidated Damages.  Buyer
                may terminate this Contract by giving
                notice to Seller on or before the Closing Date, and receive a full
                and
                immediate refund of the Earnest
                Money.

            

    

    

    
      	 	
              b.

            	
              Specific
                Performance.  Buyer
                may enforce specific performance of Seller's obligations
                under this Contract. If title to the Property is conveyed to Buyer
                as a result of Buyer's selection of this remedy, the conveyance will
                be
                subject to the matters stated in the Title
                Commitment.

            

    

    

    2.    Buyer's
      Default. If
      Buyer
      fails to perform any of its obligations under this Contract
      ("Buyer's Default"), Seller may elect either of the following as its sole and
      exclusive remedy:

    

    
      	 	
              a.

            	
              Termination;
                Liquidated Damages.  Seller
                may terminate this Contract by giving
                notice to Buyer on or before the Closing Date and Closing Time
                and
                retain the Earnest Money.

            

    

    

    
      	 	
              b.

            	
              Specific
                Performance.  Seller
                may enforce specific performance of Buyer's obligations
                under this Contract. If title to the Property is conveyed to Buyer
                as a result of Seller's selection of this remedy, the conveyance
                will
                be
                subject to the matters stated in the Title
                Commitment.

            

    

    

    3.    Liquidated
      Damages.  Seller
      arid Buyer agreeing that actual damages due to Buyer's
      default hereunder would be difficult and inconvenient to ascertain and that
      such
      amount is
      not a
      penalty and is fair and reasonable in light of all relevant circumstances and
      represents the maximum
      amount Seller is entitled to recover from Buyer as a result of its default
      under
      this Contract.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    4.    Attorney's
      Fees.  If
      either
      party retains an attorney to enforce this Contract, the party
      prevailing in litigation is entitled to recover reasonable attorney's fees
      and
      court and other costs.

    

    
      	
              I.

            	
              Miscellaneous
                Provisions

            

    

    

    1.    Notices.
      Any
      notice required by or permitted under this Contract must be in writing.
      Any notice required by this Contract will be deemed to be delivered (whether
      actually received
      or not) when deposited with the United States Postal Service, postage prepaid,
      certified mail,
      return receipt requested, and addressed to the intended recipient at the address
      shown in this
      Contract. Notice may also be given by regular mail, personal delivery, courier
      delivery, facsimile
      transmission, or other commercially reasonable means and will be effective
      when
actually
      received. Any address for notice may be changed by written notice delivered
      as
provided
      herein. Copies of each notice must be given by one of these methods to the
      attorney of the
      party
      to whom notice is given.

    

    2.    Entire
      Contract.  This
      Contract, together with its exhibits, and any Closing Documents
      delivered at closing constitute the entire agreement of the parties concerning
      the sale of
      the
      Property by Seller to Buyer. There are no oral representations, warranties,
      agreements, or promises
      pertaining to the sale of the Property by Seller to Buyer not incorporated
      in
      writing in this
      Contract.

    

    3.    Amendment. 
      This
      Contract may be amended only by an instrument in writing signed
      by
      the parties.

    

    4.    Assignment. 
      Except
      as
      otherwise provided for herein, Buyer may not assign this Contract
      or any of Buyer's rights under it without Seller's prior written consent, and
      any attempted
      assignment is void. This Contract binds, benefits, and may be enforced by the
      parties and
      their
      respective heirs, successors, and permitted assigns. Seller hereby acknowledges
      that Rick's
      Cabaret International, Inc., the prospective purchaser of 100% of the issued
      and
outstanding
      common stock of Buyer and referred to in subparagraph 14 below and its wholly-
      owned
      subsidiary, RCI Holdings, Inc., are each a permitted assignee of Buyer under
      this Paragraph
      I (4).

    

    5.    Survival. 
      The
      obligations of this Contract that cannot be performed before termination
      of this Contract or before closing will survive termination of this Contract
      or
      closing, and
      the
      legal doctrine of merger will not apply to these matters. If there is any
      conflict between the
      Closing Documents and this Contract, the Closing Documents will
      control.

    

    6.    Choice
      of Law; Venue; Alternative Dispute Resolution.  This
      Contract will be construed
      under the laws of the state of Texas, without regard to choice-of-law rules
      of
      any jurisdiction.
      Venue is in Tarrant County, Texas, except as otherwise provided by applicable
      law. Time
      permitting, the parties will submit in good faith to an alternative dispute
      resolution process before filing a suit concerning this
      Contract.

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    7.    Waiver
      of Default.  It
      is not
      a waiver of default if the nondefaulting party fails to declare
      immediately a default or delays taking any action with respect to the
      default.

    

    8.    No
      Third-Party Beneficiaries.  There
      are
      no third-party beneficiaries of this Contract.

    

    9.    Severability. 
      The
      provisions of this Contract are severable. If a court of competent
      jurisdiction finds that any provision of this Contract is unenforceable, the
      remaining provisions
      will remain in effect without the unenforceable parts.

    

    10.    Ambiguities
      Not to Be Construed against Party Who Drafted Contract.  The
      rule
of
      construction that ambiguities in a document will be construed against the party
      who drafted it will not be applied in interpreting this Contract.

    

    11.    No
      Special Relationship.  The
      parties' relationship is an ordinary commercial relationship,
      and they do not intend to create the relationship of principal and agent,
      partnership, joint
      venture, or any other special relationship.

    

    12.    Counterparts. 
      If
      this
      Contract is executed in multiple counterparts, all counterparts
      taken together will constitute this Contract.

    

    13.    Confidentiality. 
      The
      parties will keep confidential this Contract, this transaction, and
      all
      information learned in the course of this transaction, except to the extent
      disclosure is permitted
      under this Contract or is in furtherance of the performance of this Agreement
      by
      a party,
      or
      is required by law or court order or to enable third parties to advise or assist
      Buyer to investigate
      the Property or either party to close this transaction.

    

    14.    Change
      of
      Control.  The parties acknowledge that BLP Holdings, LLC., a Texas
limited
      liability company, and the owner of 100% of the outstanding common stock of
      Buyer ("BLP")
      is negotiating the sale of 100% of the outstanding common stock of Buyer (the
      "WKC Stock")
      to Rick's Cabaret International, Inc., a Texas corporation ("Rick's"). As an
      additional inducement
      for the execution of this Contract by Seller, BLP agrees to deposit the sum
      of
$150,000.00
      in cash or certified funds (the "BLP Deposit"), with Seller on the Closing
      Date.
      Concurrently with the execution of this Contract, Seller and BLP shall execute
      an agreement providing
      for the disposition of the BLP Deposit following delivery to Seller. Such
      agreement shall
      contain the following terms and conditions:

    

    (a)    Seller
      agrees to release to BLP the sum of $12,500.00 each month following
      the Closing, for a period of 12 months thereafter, provided that, as a condition
      to
      the
      delivery of each monthly payment of $12,500.00 to BLP, Seller has received
      from
Buyer
      the
      monthly installment of principal and interest due under the Note for such
month;

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    (b)    If
      Seller
      does not receive the monthly installment due Seller under the Note, Seller
      shall
      retain, as Liquidated damages, the sum of $12,500.00 otherwise due BLP from
      the
      BLP Deposit.

    

    Seller
      acknowledges and agrees that in the event there does not occur a Change of
      Control of Buyer to Rick's at or contemporaneous with the closing of the
      transactions contemplated hereunder, then BLP shall be relieved of any
      obligation to deliver the BLP Deposit to Seller.

    

    

    SELLER:

    

    
      	
              /s/
                Thomas Felsenthal

            	 	
              4/4/07

            	 
	
              THOMAS
                FELSENTHAL

            	 	
              Date

            	 
	 	 	 	 
	 	 	 	 
	
              CONRAD
                E. SCHUBERTH

            	 	
              Date

            	 

    

    

    

    BUYER:
      

    

    W.K.C.
      Inc.

    

    
      	
              By:

            	
              /s/
                Brian Paul

            	 	
              4/4/07

            	 
	 	
              Brian
                Paul, President

            	 	
              Date

            	 

    

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    (b)    If
      Seller
      does not receive the monthly installment due Seller under the Note, Seller
      shall
      retain, as liquidated damages, the sum of $12,500.00 otherwise due BLP from
      the
      BLP Deposit

    

    Seller
      acknowledges and agrees that in the event there does not occur a Change of
      Control of Buyer to Rick's at or contemporaneous with the closing of the
      transactions contemplated hereunder, then BLP shall be relieved of any
      obligation to deliver the BLP Deposit to Seller.

    

    

    SELLER:

    

    
      	 	 	 	 
	
              THOMAS
                FELSENTHAL

            	 	
              Date

            	 
	 	 	 	 
	
              /s/
                Conrad E Schuberth

            	 	
              April
                4, 2007

            	 
	
              CONRAD
                E. SCHUBERTH

            	 	
              Date

            	 

    

    

    

    BUYER:
      

    

    W.K.C.
      Inc.

    

    
      	
              By:

            	 	 	 	 
	 	
              Brian
                Paul, President

            	 	
              Date

            	 

    

    
 

     -11-

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