Document:

Purchase Agreement

 Exhibit 10.48 
 EXECUTION VERSION 
 AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS 
 By And Among 
 REGALE, INC.,

 a North Carolina Corporation 
 VCG HOLDING CO. 
 a Colorado Corporation 
 and 
 RALEIGH RESTAURANT CONCEPTS, INC. 
 a North Carolina Corporation 
 Dated: March 23, 2007 

 TABLE OF CONTENTS 
  

					
	1.	  	ASSETS BEING ACQUIRED; LIABILITIES BEING ASSUMED.	  	1
			
	2.	  	PURCHASE PRICE AND PAYMENT THEREOF.	  	4
			
	3.	  	ALLOCATION OF PURCHASE PRICE.	  	5
			
	4.	  	TAXES.	  	6
			
	5.	  	REPRESENTATIONS AND WARRANTIES OF SELLER.	  	6
			
	6.	  	REPRESENTATIONS AND WARRANTIES OF BUYER GROUP.	  	10
			
	7.	  	CONDITIONS PRECEDENT.	  	12
			
	8.	  	LEASE.	  	14
			
	9.	  	BULK SALES.	  	14
			
	10.	  	TIME AND PLACE OF CLOSING.	  	15
			
	11.	  	ITEMS TO BE DELIVERED AT CLOSING.	  	15
			
	12.	  	OPERATION OF BUSINESS BY SELLER.	  	16
			
	13.	  	NON-COMPETITION; NON-SOLICITATION.	  	17
			
	14.	  	CONFIDENTIALITY.	  	17
			
	15.	  	ADDITIONAL DOCUMENTS AFTER CLOSING.	  	18
			
	16.	  	PAYMENT OF EXPENSES; BROKERS.	  	19
			
	17.	  	LIABILITIES NOT ASSUMED.	  	20
			
	18.	  	EMPLOYEES AND EMPLOYEE BENEFITS.	  	20
			
	19.	  	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION.	  	21
			
	20.	  	TERMINATION OF AGREEMENT.	  	23
			
	21.	  	STOCK TRANSFER RESTRICTIONS.	  	23
			
	22.	  	REGISTRATION RIGHTS.	  	24
			
	23.	  	MISCELLANEOUS.	  	24

  

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 EXHIBITS 
  

					
	Exhibit A	  	Bill of Sale	  	
			
	Exhibit B	  	Indemnification Agreement	  	
			
	Exhibit C	  	Sublease	  	
			
	Exhibit D	  	Parking Lot Lease	  	

  

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 DISCLOSURE SCHEDULES 
  

					
	Schedule 1.2	  	Certain Excluded Assets	  	
			
	Schedule 1.4	  	Excluded Liabilities	  	
			
	Schedule 5.3	  	Violations	  	
			
	Schedule 5.4	  	Rights to Acquire Shares	  	
			
	Schedule 5.5	  	Leased Assets	  	
			
	Schedule 5.6	  	Taxes	  	
			
	Schedule 5.7	  	Litigation	  	
			
	Schedule 5.9	  	Liabilities of the Business	  	

  

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 AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS 
 THIS AGREEMENT (this “Agreement”) is made and entered into this 23rd day of March, 2007 (the “Agreement Date”),
by and among Regale, Inc., a North Carolina corporation (“Seller”), VCG Holding Co., a Colorado corporation (“Parent”) and Raleigh Restaurant Concepts, Inc., a North Carolina corporation (“Buyer,”
and together with Parent, “Buyer Group”). 
 WHEREAS, Seller wishes to sell substantially all of the assets related
to its Business (defined below) located at 3210 Yonkers Road, Raleigh, Wake County, North Carolina, as more fully described in this Agreement; and 
 WHEREAS, Buyer wishes to purchase such assets from Seller; 
 NOW THEREFORE, in consideration of the mutual promises,
covenants and conditions hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it has been and is hereby agreed as follows: 
  

	 	1.	ASSETS BEING ACQUIRED; LIABILITIES BEING ASSUMED. 

 1.1 At the closing (the “Closing”), and subject to the terms and conditions hereinafter set forth (including Section 1.2, which lists certain assets of Seller that Buyer is not purchasing), Seller agrees to sell to
Buyer and Buyer agrees to purchase from Seller substantially all of Seller’s assets necessary to operate the adult nightclub presently known as Thee Dollhouse, located at 3210 Yonkers Road, Raleigh, North Carolina 27604 (the
“Business”), including: all fixtures and personal property located on the Business premises; all food and beverage supplies; all contracts and contract rights, except as specifically excluded in this Agreement; all improvements on
the premises; all patents, software and software license agreements; computers 

 
and other equipment (whether owned or leased); all licenses, including (to the extent transferable) all liquor licenses and permits from the City of Raleigh,
the County of Wake or the State of North Carolina or any other relevant authorities (the “Governmental Authorities”) necessary to operate the Business (the “Required Licenses”); and any other asset of Seller that is
not an Excluded Asset (as defined in Section 1.2), free and clear of all liens, security interests, and encumbrances, except as noted herein (collectively, the “Assets”). 
 1.2 The Assets to be conveyed to Buyer shall not include: the Agreement (licensing the use of a trademark), dated as of June 15, 1992, between
Seller and Thee Dollhouse Productions N.C., Inc., a Florida corporation, and any written or oral amendments thereto, or any other written or oral understandings, agreements or arrangements under which the parties to the Agreement currently operate,
including without limitation any right to use the trademark (collectively, the “Production Contract”); any motor vehicles owned or leased by Seller or its affiliates; furniture and other personal property not used in the Business
(as set forth on Schedule 1.2); Seller’s rights under any real property lease with respect to the Business premises; cash, cash equivalents and short-term investments; any of Seller’s organizational documents, minute books, stock
records, corporate seals and other corporate records; the shares of capital stock of Seller held in treasury, if any; all insurance policies and rights thereunder, including all claims, refunds, and credits from insurance policies due or to become
due with respect to such policies; all Tax credits and claims for refund of Taxes or other governmental charges of whatever nature pertaining to the Business or the Assets that are attributable to the pre-Closing tax period; all rights relating to
deposits and prepaid expenses and claims for refunds and rights to offset in respect thereof listed on Schedule 1.2; all rights of Seller under this Agreement or the Bill of Sale, including all rights to the Purchase Price consideration; and
such other assets of Seller that 

  

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are set forth on Schedule 1.2 (collectively, the “Excluded Assets”). The Assets to be acquired by Buyer under this Agreement will be
effected by delivery by Seller to Buyer Group at Closing of a duly executed bill of sale in the form attached hereto as Exhibit A (the “Bill of Sale”); and the leased Assets to be assigned by Seller will be effected by
delivery to Buyer Group at Closing of duly executed instruments of assignments, as needed. 
 1.3 To the extent permitted by the applicable
Governmental Authorities, Seller hereby consents to the transfer of any of its Required Licenses to Buyer, subject in all respects to the prior approvals of the applicable Governmental Authorities. Buyer Group hereby agrees to use its best efforts
to obtain the Required Licenses as promptly as possible following the Agreement Date. 
 1.4 On the Agreement Date, Buyer Group will deliver
to Seller an instrument of indemnification in the form attached hereto as Exhibit B (the “Indemnification Agreement”), whereby Buyer Group fully and unconditionally will indemnify, defend and hold Seller, its affiliates and
shareholders (including without limitation S. Barry Sandman and Barry L. Green) and all of their respective officers, directors, employees and agents, harmless from, any and all claims, liabilities and obligations (including any reasonable attorneys
fees related thereto) of such parties, including without limitation any and all claims, liabilities and obligations, whether known or unknown, accrued or unaccrued, absolute or contingent as set forth in the Indemnification Agreement. In the event
the Closing does not occur under this Agreement, the Indemnification Agreement shall be deemed null and void, except as set forth in Section 19.5 hereof or in the Indemnification Agreement. Notwithstanding the foregoing, Buyer Group will assume
all liabilities and obligations of Seller and the Business (i) that arise from and after the Effective Time and (ii) that are not Excluded Liabilities (as defined below) (collectively, the 

  

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“Assumed Liabilities”). Buyer Group will not undertake, assume or agree to fully or partially perform, pay and discharge when due any debts,
liabilities and obligations (i) to the extent arising under the Excluded Assets, (ii) that are expressly retained by Seller as set forth on Schedule 1.4, (iii) except as set forth in the Indemnification Agreement, that arise,
accrue or are incurred by Seller prior to the Effective Time (as defined in Section 10 below), or (iv) in connection with Taxes accrued or incurred prior to Closing (as more fully described in Section 4.1 of this Agreement)
(collectively, the “Excluded Liabilities”). Seller is responsible for performing, paying and discharging the Excluded Liabilities. 
  

	 	2.	PURCHASE PRICE AND PAYMENT THEREOF. 

 The purchase
price (the “Purchase Price”) to be paid by Buyer to Seller for the Assets shall be a total of Ten Million Two Hundred Thousand Dollars ($10,200,000) in cash and common stock of Parent. The Purchase Price shall be payable as follows:

 2.1 Cash in the amount of One Hundred Thousand Dollars ($100,000) (the “Earnest Money”), to be delivered on the Agreement
Date. The delivery of the Earnest Money shall be via wire transfer of immediately available funds to an account designated in writing by Seller prior to the Agreement Date, or alternatively such delivery may be in the form of a cashier’s check,
in either case on the Agreement Date; provided, that the Earnest Money shall be returned promptly (within five business days) upon written demand of Buyer in the sole event that this Agreement is terminated pursuant to Section 20(b) of this
Agreement, provided that any refund of Earnest Money in such event shall be returned to Buyer net of Seller’s reasonable costs and expenses (including reasonable attorney’s fees) incurred or accrued as of the termination date. 

 

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 2.2 Cash in the amount of Ten Million Dollars ($10,000,000), payable at Closing via wire transfer of
immediately available funds to an account or accounts designated in writing by Seller prior to the date of Closing (the “Closing Date”), or alternatively such delivery may be in the form of a cashier’s check, in either case at
the Closing. 
 2.3 One Hundred Thousand Dollars ($100,000) in shares of Parent common stock (the “Shares”), valued at the
average per share closing price of Parent common stock on the American Stock Exchange (traded under the symbol: PTT) for the ten (10) trading day period prior to the Agreement Date. The issuance of the Shares to Seller at Closing will be
subject to the provisions set forth in Section 22 hereof. 
  

	 	3.	ALLOCATION OF PURCHASE PRICE. 

 The Purchase Price provided for in Section 2 hereof shall be allocated to the Assets as
follows: 
  

						
	 A.
	  	All Furniture Fixtures and Equipment	  	$	250,000
			
	 B.
	  	Leasehold	  	 	3,750,000
			
	 C.
	  	Goodwill	  	 	6,150,000
			
	 D.
	  	Inventory	  	 	50,000
		  		  	 	 
		  	TOTAL	  	$	10,200,000

 After the Closing, the parties shall make consistent use of the allocation specified above for all tax purposes
and in all filings, declarations and reports with the Internal Revenue Service (“IRS”) in respect thereof, including the reports required to be filed under Section 1060 of the Internal Revenue Code of 1986 and the rules and
regulations promulgated thereunder, as amended (the “Code”). Buyer Group shall prepare and deliver IRS Form 8594 to Seller within forty-five (45) days after the Closing Date to be filed with the IRS. In any proceeding related
to the determination of any Tax (as defined in Section 4.1), neither Seller nor Buyer Group shall contend or represent that such allocation is not a correct allocation. 
  

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	 	4.	TAXES. 

 The parties agree as follows: 

4.1 Except as provided in Section 4.2, Seller is responsible for paying any and all taxes of the Business, including but not limited to, state and
local sales and use taxes, unemployment taxes, workmen’s compensation, state and federal withholding taxes, and income taxes (“Taxes”) which accrue up to the Effective Time, but not thereafter. Seller hereby agrees to hold
Buyer Group harmless from any Taxes which may be due and owing by Seller and not assumed by Buyer under this Agreement arising from any time that Seller operated the Business, up to and including the Effective Time, but not thereafter. 

4.2 Buyer will pay when due any and all Taxes which may become payable as a result of the transactions contemplated by this Agreement, including all
sales and use Taxes, levies, fees and charges of any kind without contribution from Seller. 
 4.3 Buyer shall be responsible for any and all
Taxes or charges of any nature relating to the Assets and the operation of the Business which accrue after the Effective Time. In addition, Buyer Group hereby agrees to hold Seller harmless from any Taxes which may be due and owing by Buyer or
Parent. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES OF SELLER. 

 As an
inducement to Buyer Group to enter into this Agreement, Seller represents and warrants to Buyer Group as follows: 
 5.1 Organization and
Good Standing. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of North Carolina. 
  

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 5.2 Authority and Enforceability. Seller has the corporate power to own its properties and Assets,
and to carry on its Business as now being conducted by it with respect to the Assets. Seller has the corporate power and authority to enter into and deliver this Agreement and the other transaction documents contemplated hereby to which it is a
party, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby, including assigning and transferring to Buyer at Closing all of the Assets specified in this Agreement. Seller’s
execution, delivery and performance of this Agreement and the other transaction documents contemplated hereby to which it is a party and its consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by
all corporate action required of Seller by applicable law or its Articles of Incorporation or By Laws. 
 5.3 No Violation. Except as
set forth on Schedule 5.3, the execution and delivery of this Agreement does not and the consummation of the transactions contemplated hereby will not violate any material provision of the documents controlling the operation of the Business,
nor violate any provision of Seller’s Articles of Incorporation or By Laws, or any material mortgage, lease, lien, agreement, instrument, order, judgment or decree to which Seller is a party, or whereby it or the Business is bound, and, to the
knowledge of Seller, will not violate any other restriction of any other kind or character to which Seller or the Business is subject. Seller has taken or will take all action required by law, its Articles of Incorporation and By Laws, or otherwise,
to authorize execution and delivery of this Agreement and the consummation of the transactions described herein. 
 For purposes of this
Agreement, “knowledge of Seller” shall mean the actual knowledge of S. Barry Sandman, without any further inquiry, and “knowledge of Buyer Group” shall mean the actual knowledge of the senior officers of Parent, without any
further inquiry. 
  

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 5.4 Rights to Acquire Shares. Except as set forth on Schedule 5.4, there are no outstanding
rights to acquire shares of Seller, which rights would require the holders thereof to approve the execution of this Agreement or the consummation of the transactions contemplated hereby. 
 5.5 Title. Seller has, or will have by the Closing Date, good and marketable title to own all of the Assets, free and clear of all liens and
encumbrances, and Seller does not lease any of its property or Assets relating to the Business, except as set forth on Schedule 5.5. 
 5.6 Taxes. Seller has filed or will cause to be filed all material returns for federal, state and local Taxes that it was required to file on a timely basis. Seller has paid, or made provisions for the payment of, all Taxes shown as
owing on Seller’s tax returns for the years ended December 31, 2005 and 2004 (all of which have been made available to Buyer Group) or any assessment received by Seller from any taxing authority, except such Taxes, if any, listed on
Schedule 5.6 that are being contested in good faith and as to which adequate reserves have been provided in the most recent balance sheet of the Business. Except as set forth on Schedule 5.6, Seller is not currently the beneficiary of
any extension of time within which to file any Tax return. To the knowledge of Seller, there are no assessments or additional Taxes threatened against Seller or any of its properties. Seller is not delinquent in the payment of any Tax assessment or
governmental charge, does not have any Tax deficiencies imposed or assessed against it and has not executed any waiver of the statute of limitations on the assessment or collection of any Taxes, where such delinquency, deficiency or waiver would
have a material adverse affect on Seller’s title to any of the Assets to be transferred to Buyer at Closing. 
 5.7 Litigation.
Except as set forth on Schedule 5.7, there are no actions, suits, or proceedings pending, or to its knowledge, threatened against Seller, the Business or any of its 

  

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properties or Assets, in law or in equity, which might result in any judgment, order, injunction or decree having a material adverse affect upon the
operations, properties, assets or financial condition of the Business. 
 5.8 Condition of Assets. The equipment and other tangible
Assets of Seller used in the operation of the Business are in good operating condition and repair in all material respects. 
 5.9 Absence
of Undisclosed Liabilities. Except for: (a) liabilities and obligations reflected in Seller’s tax returns made available to Buyer Group; (b) liabilities and obligations reflected on Schedule 5.9; (c) liabilities and
obligations incurred in the ordinary course of business since December 31, 2006; (d) liabilities or obligations arising out of or under material contracts of the Business; (e) liabilities or obligations incurred in connection with
this Agreement; and (f) other liabilities or obligations which, individually or in the aggregate, would not have a material adverse effect on Business, Seller has no material liabilities or obligations of any nature, whether direct, indirect,
accrued, contingent or otherwise, of the type required to be disclosed on a balance sheet prepared in accordance with GAAP. 
 5.10
Employees and Independent Contractors. There is no collective bargaining or similar agreement with any labor unions or associations representing employees of the Business. To the knowledge of Seller, since January 1, 2006 there have been
no claims of discrimination or harassment that have been made against Seller, the Business or an employee of the Business before a governmental or regulatory authority regarding actions or omissions of a Business employee during the course of his or
her employment with Seller. To the knowledge of Seller, at all times while engaged by the Business, all independent contractors and consultants of the Business were independent contractors to, and not employees of, Seller or the Business for 

  

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purposes of all applicable federal and state laws relating to wages and hours, all applicable federal and state income tax withholding requirements, and any
other law implicating the relationship between Seller or the Business and any independent contractor or consultant. 
  

	 	6.	REPRESENTATIONS AND WARRANTIES OF BUYER GROUP. 

 As
an inducement to Seller to enter into this Agreement, Buyer Group represents and warrants to Seller as follows: 
 6.1 Organization and
Good Standing. Parent is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of
North Carolina. 
 6.2 Authority and Enforceability. Each of Parent and Buyer has the requisite power to own its properties and to
carry on its business as now being conducted. Each of Parent and Buyer has all requisite power and authority to enter into and deliver this Agreement and the other transaction documents contemplated hereby to which it is a party, to perform its
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. Each of Parent and Buyer’s execution, delivery and performance of this Agreement and the other transaction documents contemplated hereby to
which it is a party and each party’s consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all corporate action required of each of Parent and Buyer by applicable law or its organizational
documents. 
 6.3 No Violation. The execution and delivery of this Agreement does not and the consummation of the transactions
contemplated hereby will not violate any material 

  

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provision of the documents controlling the operation of the business of either Buyer or Parent, nor violate any provision of the organizational documents of
Parent or Buyer, or any material mortgage, lease, lien, agreement, instrument, order, judgment or decree to which Buyer or Parent is a party, or whereby either Buyer or Parent is bound, and, to the knowledge of Buyer Group, will not violate any
other restriction of any other kind or character to which Parent or Buyer is subject. Buyer Group has taken or will take all action required by law, the organizational documents of Parent or Buyer, or otherwise, to authorize execution and delivery
of this Agreement and the consummation of the transactions described herein. 
 6.4 Financing. As of the Agreement Date, and as of the
Closing Date, Buyer Group has and will have sufficient funds available to pay the Purchase Price and to pay all related fees and expenses. Buyer Group’s obligations hereunder are not subject to any conditions regarding its ability to obtain
financing for the consummation of the transactions contemplated hereby. 
 6.5 Investigation. Buyer Group has conducted its own
independent investigation, verification, review and analysis of the business, operations, assets, liabilities, results of operations, financial condition, technology and prospects of the Business, which investigation, review and analysis was
conducted by Buyer Group and its respective affiliates and, to the extent Buyer Group deemed appropriate, by its representatives. Buyer Group acknowledges that it and its representatives have been provided adequate access to the personnel,
properties, premises and records of Seller and the Business for such purpose. In entering into this Agreement, Buyer Group acknowledges that it has relied solely upon the aforementioned investigation, review and analysis and not on any factual
representations or opinions of Seller, employees of the Business or any affiliates of Seller or any of their respective representatives (other than the specific representations and warranties of Seller set forth in Section 5 of this Agreement).

  

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	 	7.	CONDITIONS PRECEDENT. 

 7.1 Conditions to Each
Party’s Obligations. The respective obligations of each party to close the transactions contemplated by this Agreement are expressly conditioned upon the satisfaction of the following conditions precedent: 
 (a) The approval by the applicable Governmental Authorities of (i) the transfer of, or the
new applications for, the Required Licenses and (ii) any managers, members, or officers, directors or shareholders of Buyer Group, if such approval is required (together, the “Governmental Approvals”). Buyer or its assignee
shall apply for the transfer of said licenses (or otherwise apply for new licenses) and use best efforts to seek such Governmental Approvals upon the execution of this Agreement. Seller shall cooperate with Buyer Group as reasonably necessary in
order to obtain such Governmental Approvals. In the event that the Governmental Approvals are not obtained by May 31, 2007, either party shall have the right to terminate the Agreement pursuant to Section 20(b) hereof, in which event all
parties shall be released from any liability under this Agreement and the Earnest Money shall be refunded to Parent, net of Seller’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred or accrued as of the date of
termination. Buyer or its assignee shall file its completed application for change of ownership of the Required Licenses as soon as possible after the Agreement Date, and shall use best efforts to pursue the Government Approvals of said applications
for the transfer of ownership of any Required Licenses so transferable from all appropriate licensing authorities. 
 (b) The execution by
Buyer Group and Seller of a sublease for the Business premises substantially in the form attached hereto as Exhibit C (the “Sublease”), which 

  

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will require obtaining the consent of the landlord as described in Section 8 below, and a lease for the adjacent parking lot substantially in the form
attached hereto as Exhibit D (the “Parking Lot Lease”). The terms of the Sublease will be substantially the same as the terms and conditions of the Prime Lease (as defined in Section 8 below), and the terms of the
Parking Lot Lease will, among other things, provide for an aggregate monthly rental payment of $19,750.00/month through January 31, 2010 and thereafter as described in the Parking Lot Lease. During the entire term of the Sublease and the
Parking Lot Lease, Buyer Group will be responsible for all maintenance, insurance, Taxes, utilities and all other costs, charges or levies of every nature whatsoever against the leased premises related to the operation of the Business. 

(c) Seller shall have obtained the consent of the landlord pursuant to Section 8. 
 7.2 Conditions to Obligations of Buyer Group. Buyer Group’s obligations to close the transactions contemplated by this Agreement are
expressly further conditioned upon the satisfaction of the following conditions precedent: 
 (a) The representations and warranties of
Seller contained in this Agreement and the certificates and documents to be delivered pursuant hereto shall be true, complete, and correct when made, and shall be true, complete and correct in all material respects as of the Closing Date.

 (b) Seller shall have performed and satisfied in all material respects all the covenants, agreements, and conditions required by this
Agreement to be performed and satisfied by it hereunder. 
  

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 7.3 Conditions to Obligations of Seller. Seller’s obligations to close the transactions
contemplated by this Agreement are expressly conditioned upon the following conditions precedent: 
 (a) The representations and warranties
of Buyer contained in this Agreement and the certificates and documents to be delivered pursuant hereto shall be true, complete, and correct when made, and shall be true, complete and correct in all material respects as of the Closing Date.

 (b) Buyer shall have performed and satisfied in all material respects all the covenants, agreements, and conditions required by this
Agreement to be performed and satisfied by it hereunder. 
  

	 	8.	LEASE. 

 Seller is currently party to a lease with
Margaret S. Peeler dated February 1, 1992, as amended from time to time through May 21, 2003, covering the premises on which the Business is located (the “Prime Lease”). It is understood that the Sublease will require the
consent of Margaret S. Peeler prior to Closing. Seller shall use its commercially reasonable efforts to obtain such consent. 
  

	 	9.	BULK SALES. 

 Buyer Group hereby agrees to comply
with any applicable bulk-transfer provisions of the Uniform Commercial Code (or any similar law) in connection with the transactions contemplated by this Agreement, and Seller hereby agrees to cooperate with Buyer Group as reasonably necessary in
connection with such compliance. 
  

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	 	10.	TIME AND PLACE OF CLOSING. 

 The Closing shall take
place within three (3) days after notice has been received that the Required Licenses have been issued by the applicable Governmental Authorities to Buyer and that any other Governmental Approvals have been obtained. The hour of Closing will be
8:00 a.m. on the Closing Date (the “Effective Time”). The place of Closing will be the offices of Seller’s counsel: Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P., 2500 Wachovia Capitol Center, Raleigh,
NC 27601. 
  

	 	11.	ITEMS TO BE DELIVERED AT CLOSING. 

 At Closing,
Seller shall deliver the following: 
 11.1 A duly executed Bill of Sale and any and all other documents of transfer or conveyance covering
the Assets (except for the Excluded Assets), free and clear of all liens and encumbrances and subject to the disclosures and exceptions made in this Agreement. 
 11.2 A duly executed counterpart of each of the Sublease and the Parking Lot Lease. 
 11.3 Copies of all
financing statements on file as of the Closing Date, having been filed by any secured party against Seller which would affect the title to any Assets being acquired hereunder. 
 11.4 Any and all keys, combinations or other items necessary for proper access to the Business premises. 
 11.5 A closing certificate signed by an officer of Seller to the effect that all representations and warranties made by Seller in connection with the
execution of this Agreement are true and correct in all material respects as of the Closing Date. 
  

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 11.6 Any and all other documents as set forth in this Agreement to be delivered by Seller. 
 At Closing, Buyer Group shall deliver the following: 
 11.7 A duly executed Instrument of Assumption and any and all other documents of transfer, conveyance or assumption covering all Assets and Assumed Liabilities to be assumed by Buyer Group under this Agreement. 
 11.8 A duly executed counterpart of each of the Sublease and the Parking Lot Lease. 
 11.9 The cash portion of the Purchase Price. 
 11.10 A certificate representing the Shares in such name as designated by Seller prior to the Closing Date. 
 11.11 A closing
certificate signed by an officer of Parent to the effect that all representations and warranties made by Buyer Group in connection with the execution of this Agreement are true and correct in all material respects as of the Closing Date. 

11.12 Any and all other documents as set forth in this Agreement to be delivered by Buyer and/or Parent. 
  

	 	12.	OPERATION OF BUSINESS BY SELLER. 

 The Business will
be conducted by Seller up to the Effective Time in the ordinary course of business, and will be conducted in all material respects according to, and conforming with, all laws, rules, and regulations of all applicable Governmental Authorities. The
Business will also be operated in a manner that will not violate in any material respect the terms of any lease or contract related to the Business, and Seller will not increase the compensation payable to any employee of the Business, except for
any such increases in the ordinary course. 
  

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	 	13.	NON-COMPETITION; NON-SOLICITATION. 

 Seller and its
shareholders agree not to compete with the Business or with Parent in the live adult entertainment business for a period of five (5) years after the Closing Date, within a radius of fifty (50) miles of the Business premises. Seller and its
shareholders also agree for a period of three (3) years after the Closing Date not to solicit any employee or entertainer who as of the Closing Date performs at the Business premises for work in any other location that such shareholder of
Seller has a direct or indirect interest in. 
  

	 	14.	CONFIDENTIALITY. 

 14.1 Confidential
Information. All of the parties hereto hereby agree to refrain from, and to cause their respective affiliates and representatives to refrain from, discussing any confidential information related to the Business, including, but not limited to,
clients, customer lists, supplier information, or any other matter of a sensitive nature concerning the Business. 
 14.2 Public
Announcement. Prior to Closing, the parties hereto agree not to disclose, and to cause their respective affiliates and representatives not to disclose, the Purchase Price to any third party without the express consent of the other parties
hereto. Further, Seller and Buyer Group hereby agree that any public announcement of the Purchase Price, this Agreement or the transactions contemplated hereby will only contain the following language if such announcement is made prior to the
Closing Date: “VCG announced today that it has entered into an agreement to acquire an adult nightclub located in the Southeastern United States for cash and a nominal amount of common stock of VCG. No other terms are disclosed due to
confidentiality restrictions. The acquisition is expected to be completed during the [second] quarter of 2007.” 
  

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 14.3 SEC Disclosure. Seller acknowledges that Buyer is owned by companies (including Parent)
subject to the reporting requirements of the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, nothing in this Agreement shall be deemed to prohibit any party hereto from making any
disclosure which, in the opinion of securities counsel, is necessary in order to fulfill such party’s disclosure obligations imposed by law; provided, however, that Seller has the right to review and consent (which consent shall not be
unreasonably withheld) to any such disclosure relating to this Agreement by Buyer Group or its affiliates prior to any such disclosure (including, without limitation, any press releases, any disclosure filed on a form promulgated under the Exchange
Act or the filing of the Agreement itself with the SEC), and, provided further, that Seller shall have the right to require that Parent request confidential treatment of any such information or disclosure prior to being so filed with the United
States Securities and Exchange Commission (the “SEC”). The parties agree that other than any disclosures imposed by various governmental agencies, including without limitation the SEC, the parties shall keep the terms and conditions
of this Agreement confidential. 
 14.4 Confidentiality Agreement. The parties hereby acknowledge and agree to comply, and to cause
their respective affiliates and representatives to comply, with all of the provisions set forth in the confidentiality agreement entered into between Parent and Seller dated February 12, 2007. 
  

	 	15.	ADDITIONAL DOCUMENTS AFTER CLOSING. 

 The parties
hereto agree to execute and deliver any and all other documents necessary and convenient to effectuate the sale and purchase herein provided for, and each of Buyer, Parent and Seller, as an inducing condition, represent that each has the authority
to enter into this 

  

 18 

 
Agreement and to make the foregoing commitments for themselves. In addition, Seller agrees that it will, from time to time, at the request and expense of
Buyer Group, execute and deliver or cause to be executed and delivered, all such further bills of sale, assignments, instruments of transfer and agreements that may reasonably be required by Buyer Group in order to vest title in Buyer Group to any
and all of the properties or Assets hereby conveyed or intended hereby to be conveyed or for aiding or assisting in the performance or collection by Buyer of any such Assets or properties. 
 After the Closing, Seller will cooperate with Buyer Group in efforts to transition those business relationships of Seller existing prior to the Closing
and relating to the Business to be operated by Buyer after the Closing, including relationships with suppliers, vendors, independent contractors and suppliers of maintenance and other similar services necessary for the operation of the Business in
the ordinary course as reasonably requested by Buyer Group. Seller will refer to Buyer all inquiries relating to such business relationships, and Buyer will take commercially reasonable efforts to contact the relevant third parties having such
business relationships in an effort to transition the business relationships required to be assumed under this Agreement or as desired by Buyer, from Seller to Buyer. In connection with the foregoing, promptly following the Closing, Buyer will
arrange to have all such business relationships transferred to the account of Buyer or, as appropriate, terminated. 
  

	 	16.	PAYMENT OF EXPENSES; BROKERS. 

 16.1 Except as
otherwise provided herein, Buyer Group and Seller will each bear their own costs and expenses, including their own attorneys’ fees, incurred in connection with the preparation of this Agreement and all of the documents needed to consummate the
transactions described herein and with the execution of all of the transactions contemplated 

  

 19 

 
hereby and thereby (it being understood that all costs and expenses relating to obtaining the Required Licenses or otherwise associated with any Governmental
Approvals shall be the sole responsibility of Buyer Group). 
 16.2 If any claims for brokerage commissions or finders fees or like payment
arise out of or in connection with the transaction provided herein, and in the event any claim is made, all such claims shall be handled and paid by the party whose actions or alleged commitments form the basis of such claim. Each party whose
actions or alleged commitment form the basis of a claim shall indemnify and hold harmless the other party from and against any and all claims or demands with respect to any brokerage fees or commissions or other compensation asserted by any person,
firm, or corporation in connection with this Agreement or the transaction contemplated hereby. 
 16.3 All other items, including all utility
charges, personal property taxes, and all other charges with respect to the Assets, shall be prorated to and including Closing, and paid before or at Closing by Seller. 
  

	 	17.	LIABILITIES NOT ASSUMED. 

 Buyer agrees to assume
only the Assumed Liabilities as defined in this Agreement. It is expressly understood and agreed that Buyer shall not be liable for any of the obligations or liabilities of Seller that are defined herein as the Excluded Liabilities. 
  

	 	18.	EMPLOYEES AND EMPLOYEE BENEFITS. 

 18.1 Affected
Employees. For purposes of this Section 18, “Affected Employees” shall mean employees of Seller who are employed by Buyer immediately after the Effective Time. 
  

 20 

 18.2 Retained Responsibilities. Seller agrees to satisfy, or cause its insurance carriers to
satisfy, all claims for benefits, whether insured or otherwise, under Seller’s employee benefit programs brought by, or in respect of, Affected Employees or other former employees of Seller, which claims arise out of events occurring prior to
the Effective Time, in accordance with the terms and conditions of such programs or any applicable workers’ compensation statutes without interruption as a result of the employment by Buyer of any such employees after the Effective Time;
provided that, for purposes of clarity, in no event shall Seller be responsible for any of the Assumed Liabilities. 
 18.3 Payroll
Tax. Seller agrees to make a clean cut-off of payroll and payroll tax reporting with respect to the Affected Employees paying over to the federal, state and city governments those amounts respectively withheld or required to be withheld for
periods ending on or prior to the Effective Time. Seller also agrees to issue, by the date prescribed by IRS Regulations, Form W-2 for wages paid through the Effective Time. Buyer shall be responsible for all payroll and payroll tax obligations
after the Effective Time for all Affected Employees. 
 18.4 Termination Benefits. Buyer shall be solely responsible for, and shall
pay or cause to be paid, severance payments and other termination benefits, if any, to Affected Employees who may become entitled to such benefits by reason of any events occurring after the Effective Time. 
  

	 	19.	SURVIVAL OF REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION. 

 19.1 Survival Period. All of the representations and warranties set forth in Section 5 and 6 of this Agreement shall not survive the Closing Date and shall be applicable and effective only up to and
including the Effective Time. 
  

 21 

 19.2 Indemnification by Buyer Group. Notwithstanding Section 19.1, from and after the
Effective Time, Buyer Group agrees to indemnify, defend and hold Seller, its affiliates and shareholders (including without limitation S. Barry Sandman and Barry L. Green) and all of their respective officers, directors, employees and agents,
harmless as set forth in the Indemnification Agreement. The indemnification obligations of Buyer Group with respect to the above shall be unlimited. 
 19.3 Indemnification by Seller. Notwithstanding Section 19.1, from and after the Effective Time, Seller agrees to indemnify and hold Buyer Group, its affiliates and all of their respective officers,
directors, employees and agents harmless as set forth in the Indemnification Agreement. The indemnification obligations of Seller with respect to the above shall be unlimited. 
 19.4 Rights of Seller if Buyer Group Fails to Indemnify. If Buyer Group fails to perform any of its indemnification obligations set forth in
Section 19 of this Agreement or pursuant to the Indemnification Agreement, Seller shall have the right to terminate the Sublease and the Parking Lot Lease (such termination right to be provided in the Sublease and the Parking Lot Lease) without
prejudice to any other rights and remedies available at law or in equity. This remedy may not be exercised by Seller unless and until Seller gives notice to Buyer Group of a default in accordance with the terms of the Sublease and the Parking Lot
Lease. 
 19.5 Survival of Indemnification Claims. For purposes of clarity, following the Agreement Date, any indemnification claims
made in good faith and pursuant to the terms of the Indemnification Agreement shall survive indefinitely, provided that a Closing has occurred. In addition, and as provided in the Indemnification Agreement, any indemnification claims for which a
Claim Notice (as defined in the Indemnification Agreement) has been furnished in 

  

 22 

 
accordance with the terms of the Indemnification Agreement and prior to any termination of this Agreement (in accordance with Section 20 hereto) shall
survive such termination and continue indefinitely until resolved pursuant to the Indemnification Agreement. 
  

	 	20.	TERMINATION OF AGREEMENT. 

 This Agreement and the
transactions contemplated hereby may be terminated at any time prior to the Effective Time: (a) by mutual written consent of Seller and Parent; or (b) by either Seller or Parent if the Closing shall not have occurred prior to the close of
business on May 31, 2007, in which event the Earnest Money shall be refunded to Parent net of Seller’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred or accrued as of the date of termination. 

 

	 	21.	STOCK TRANSFER RESTRICTIONS. 

 21.1 Seller
acknowledges that the Shares to be issued pursuant to Section 2.3 of this Agreement are being issued in reliance on an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “Securities
Act”) for an offer and sale of securities that does not involve a public offering and, upon issuance, shall not have been registered under any federal or state securities laws, and that the stock consideration cannot be resold in the
absence of applicable and effective registration except pursuant to an exemption from, or in a transaction not subject to the registration requirements of applicable federal and state securities laws. 
 21.2 The certificates representing the Shares shall bear a restrictive legend consistent with the provisions of Section 21.1. 
  

 23 

	 	22.	REGISTRATION RIGHTS. 

 22.1 Parent shall use its
best efforts to (i) file within 30 days of the Closing Date a registration statement on Form S-3 (or another applicable form of registration statement if Form S-3 is unavailable to Parent) under the Securities Act with respect to the Shares to
be issued to Seller in connection with this Agreement (the “Registration Statement”), and thereafter to cause the Registration Statement to be declared effective by the SEC as to resales by Seller or its designee; (ii) cause
the Registration Statement to remain effective for two years following the effective date of the Registration Statement; and (iii) cause the Shares to be approved for listing on the American Stock Exchange; provided, that if Parent
already has an effective Registration Statement under which the Shares to be issued to Seller hereunder can be sold, Parent shall not be required to file an additional Registration Statement. 
 22.2 With the exception of all selling discounts and commissions (if any) and stock transfer taxes applicable to the Shares covered by the Registration
Statement, all reasonable expenses incurred in connection with the registration pursuant to this Section 22 shall be borne by Parent. 
 22.3 Seller shall furnish to Parent such information regarding Seller, its Shares and the distribution proposed by Seller as Parent may reasonably request in writing and as shall be required in connection with any registration referred to
in this Section 22. 
  

	 	23.	MISCELLANEOUS. 

 The following miscellaneous
provisions shall govern the interpretation and consummation of the transactions described herein: 
  

 24 

 23.1 Governing Law. This Agreement shall be interpreted and construed in court in accordance with
the laws of the State of North Carolina, without regard to the choice of law principles thereof. 
 23.2 Severability. Should any
clause, term or provision of this Agreement be declared by a court of competent jurisdiction or other authority to be invalid, void, or voidable for any reason in whole or in part, any such invalid, void, or voidable clause, term or provision shall
not affect the whole of this Agreement, and the balance of the provisions hereof shall remain in full force and effect to the same extent and in the same manner as if such invalid, void, or voidable clause, term or provision had been omitted from
the terms and conditions hereof. 
 23.3 Notices. Any notice, demand or communication under or in connection with this Agreement or
any of the documents contemplated hereby which either party desires or is required to give to the other, shall be deemed to have been sufficiently given (i) five (5) business days following deposit in the United States mail if sent by
registered or certified mail, postage prepaid, (ii) when sent if sent by facsimile transmission and if receipt thereof is confirmed, (iii) when delivered, if delivered personally to the intended recipient and (iv) two
(2) business days following deposit with a nationally recognized overnight courier service (or upon actual delivery, if earlier), in each case addressed as follows: 
  

			
	If to Seller:	  	Regale, Inc.
		  	c/o Sandman & Rosefielde-Keller
		  	 7101 Creedmoor Road, Suite 142
 Raleigh, NC
27613

		  	Attention: S. Barry Sandman
		  	Facsimile: (919) 847-7335

  

 25 

			
		
	With a copy to:	  	Michael P. Saber, Esq.
		  	 SMITH, ANDERSON, BLOUNT, DORSETT, MITCHELL &
 JERNIGAN, L.L.P.

		  	 2500 Wachovia Capitol Center
 Raleigh, NC
27601

		  	Facsimile: (919) 821-6800
		
	If to Buyer or Parent:	  	Troy Lowrie
		  	VCG Holding Corp.
		  	 390 Union St., Suite 540
 Lakewood, CO
80228

		  	Facsimile: (303) 922-0746
		
		  	and
		
		  	Michael L. Ocello
		  	VCG Holding Corp.
		  	 1401 Mississippi Avenue, #10
 Sauget, IL
62201

		  	Facsimile: (681) 271-8384
		
	With a copy to:	  	Allan S. Rubin, Esq.
		  	DRAPER, RUBIN & SHULMAN, P.L.C.
		  	 29800 Telegraph Road
 Southfield, Michigan
48034

		  	Facsimile: (248) 358-9729

 23.4 Binding Effect and Condition Subsequent. Subject to Section 23.7, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 23.5 Entire
Agreement. This Agreement, together with the other documents referred to herein, constitutes the entire agreement of the parties hereto with respect to the subject matter contained herein and therein. This Agreement supersedes all prior
agreements and understandings between the parties with respect to such subject matter, other than the confidentiality agreement entered into between Parent and Seller dated February 12, 2007. All exhibits and schedules referred to in this
Agreement are intended to be and hereby are specifically made a part of this Agreement. 
  

 26 

 23.6 Titles. The titles of the sections of this Agreement are for convenience of reference only,
and are not to be considered in any fashion in construing or interpreting this Agreement. 
 23.7 Assignment. This Agreement may not
be transferred, assigned, pledged or hypothecated by any party hereto without the other parties’ prior written consent, whether by operation of law or otherwise. 
 23.8 Counterparts. This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument. The facsimile or electronic transmission or retransmission of any
original signed counterpart to this Agreement or any document or agreement contemplated hereby (including any amendment hereto or thereto) shall be deemed to be delivery of an original counterpart thereof for all purposes. 
 23.9 Amendments. This Agreement may not be changed, and none of the terms, covenants, representations, warranties and conditions may be waived,
except pursuant to an instrument in writing signed by Parent and Seller or, in the case of a waiver, by the party waiving compliance. 
 23.10 Third Party Beneficiaries. Each party hereto intends that this Agreement shall not benefit or create any right or cause of action in or on behalf of any person or entity other than the parties hereto and, with respect to
Seller, S. Barry Sandman and Barry L. Green, its shareholders as of the Agreement Date. 
 23.11 Interpretation. The parties have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
  

 27 

 23.12 Recovery of Litigation Costs. In the event of any litigation arising out of this contract,
the court may award to the prevailing party all reasonable costs and expenses, including reasonable attorneys’ fees. 
 23.13 Time is
of the Essence. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence. 
  

 28 

 [Signature Page to Asset Purchase Agreement] 
 In WITNESS WHEREOF, Seller and Buyer Group have caused their respective names to be hereunto subscribed individually or by their respective officers
thereunto duly authorized, as the case may be, all as of the day and year first above written. 
  

			
	SELLER:
	
	REGALE, INC.
	A North Carolina Corporation
		
	By:	 	 /s/ S. Barry Sandman

	Name:	 	S. Barry Sandman
	Title:	 	President
	
	BUYER:
	
	RALEIGH RESTAURANT CONCEPTS, INC.
	A North Carolina corporation
		
	By:	 	 /s/ Troy H. Lowrie

	Name:	 	Troy H. Lowrie
	Title:	 	CEO
	
	PARENT:
	
	VCG HOLDING CO.
	A Colorado Corporation
		
	By:	 	 /s/ Troy H. Lowrie

	Name:	 	Troy H. Lowrie
	Title:	 	CEO

  

 29Sublease Agreement

 Exhibit 10.49 
 THIS AGREEMENT OF SUBLEASE (“Sublease”) made as of the 16th day of April, 2007, by and between REGALE, INC., a North Carolina corporation (“Sublandlord”), and RALEIGH
RESTAURANT CONCEPTS, INC., a North Carolina corporation (“Subtenant”). 
 WITNESSETH: 
 WHEREAS, Sublandlord has leased the Premises (as hereinafter defined) from Margaret S. Peeler (the “Landlord”) pursuant to a certain
Lease Agreement dated February 1, 1992 (the “Original Lease”), as amended by that certain letter agreement dated February 13, 1992 (the “First Amendment”), as further amended by that certain Lease Modification and
Extension Agreement dated August 11, 1992 (the “Second Amendment”), as further amended by that certain Third Amendment to Lease Agreement dated September 19, 1997 (the “Third Amendment”), as further amended by that
certain Fourth Amendment to Lease Agreement dated January 22, 1998 (the “Fourth Amendment”), as further amended by that certain Fifth Amendment to Lease Agreement dated July 12, 1999 (the “Fifth Amendment”), and as
further amended by that certain Sixth Amendment to Lease Agreement dated May 21, 2003 (the “Sixth Amendment”) (collectively, the “Prime Lease”). Sublandlord is referred to as the “Tenant” in the Prime Lease; and

 WHEREAS, the premises subleased hereby are all of that certain building located at 3210 Yonkers Road, Raleigh, North Carolina, and
known as the “Building” at which is located an adult nightclub known as “Thee Dollhouse.” The space subleased hereby is the same space leased to the Sublandlord under the Prime Lease and is hereinafter referred to as the
“Premises.” The parties desire by this instrument to establish the terms and conditions upon which Subtenant will sublet the Premises from Sublandlord; and 
 NOW, THEREFORE, in consideration of the mutual covenants and premises herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to
be legally bound hereby, the parties hereby agree as follows: 
 1. Except for: (a) Sections 4 (as to the obligation to contribute 25% of
the cost for any tenant improvements) and 5 of the Original Lease; (b) the First Amendment (relating to any right of first refusal); (c) Section 1 of the Second Amendment; (d) Section 2 of the Third Amendment; (e) Section 3 of
the Fourth Amendment; (f) Sections 3 and 4 of the Fifth Amendment; and (g) Section 3 of the Sixth Amendment, or as otherwise herein provided, as between Sublandlord and Subtenant, all of the terms, provisions, covenants and conditions
contained in the Prime Lease are made a part of this Sublease, Sublandlord being substituted for “Landlord” and Subtenant for “Tenant.” The parties acknowledge and agree that such rights and obligations of Tenant as are contained
in the incorporated Prime Lease provisions, and as the same relate to the Premises, during the term of this subletting, are hereby granted to or imposed on Subtenant in the same manner as if Subtenant had been Tenant in same. Notwithstanding the
foregoing, this Sublease shall not release Sublandlord from any existing or future duty, obligation or liability to Landlord under the Prime Lease, nor shall this Sublease change, modify, or amend 

 
the Prime Lease in any manner, and in the event of any conflict between the terms of the Prime Lease and this Sublease, the express terms of the Prime Lease
shall prevail. Sublandlord agrees that Subtenant shall be entitled to receive all services Sublandlord is entitled to receive from Landlord pursuant to the Prime Lease, and Subtenant agrees that Sublandlord shall not be responsible for providing, or
ensuring the provision of same. Subtenant expressly acknowledges that Sublandlord is not responsible for complying with any terms of the Prime Lease which, by their nature, are the sole obligations of the Landlord thereunder. 
 Sublandlord hereby subleases the Premises to Subtenant, on the same terms and conditions upon which said Premises were leased to Sublandlord under the
Prime Lease, the same as if all the terms and conditions of the Prime Lease were fully set forth herein, except as set forth in Section 1 of this Sublease or as otherwise expressly set forth herein. During the term of this Sublease, and except
as set forth to the contrary herein, Subtenant hereby assumes and agrees to make all payments as hereinafter set forth and perform and fulfill all obligations, covenants and agreements of Sublandlord under the Prime Lease, with respect to the
Premises, from and after the date hereof in the same manner as if Subtenant had executed the Prime Lease as tenant on the date hereof. 
 2. The term of this Sublease (the “Term”) shall commence as of the later of (i) the
date which is the first business day after all parties hereto have executed this Sublease (and Guarantor has executed the Guaranty, as such terms are hereinafter defined) and Landlord has consented to this Sublease in writing, or (ii) the
16th day of April, 2007 (the “Commencement Date”), and, unless extended pursuant to the express terms of
this Section 2, shall expire on the 31st day of January, 2012 at 5:00 p.m. (the “Expiration Date”),
unless sooner terminated in accordance with the terms of this Sublease. Subtenant expressly acknowledges that no right or option to extend or renew the Term, or rights to other space owned or leased by Landlord or Sublandlord (including specifically
any right of first refusal), is granted to Subtenant hereunder, nor shall Subtenant be entitled to exercise any such or similar rights afforded under the Prime Lease, except to the extent expressly provided in Section 2 of this Sublease.

 Provided that (i) Subtenant is not then in default under the Sublease; and
(ii) Sublandlord has the right to similarly extend the term of the Prime Lease, then the Term shall automatically be extended for successive periods of five (5) years each, unless Sublandlord receives written notice from Subtenant of its
intent not to extend the Term, such notice to be received no less than twelve (12) months prior to the expiration of the then-existing Term. Sublandlord shall not be required to give Subtenant any notice of its failure to timely exercise its
option not to extend. Notwithstanding the foregoing, Subtenant shall not be entitled to extend (and the Term shall not automatically extend) the Term beyond the 31st day of January, 2062 (the “Outside Expiration Date”). 
  

 2 

 3. The “Rent Commencement Date” shall be the Commencement Date. Commencing on the Rent
Commencement Date, Subtenant shall pay base annual rent (“Base Rent”) according to the following schedule: 
  

							
	 Rent Commencement Date – 1/31/12
	  	$	72,000.00/yr.	  	$	6,000.00/mo.
	 2/01/12 – 1/31/17
	  	$	72,000.00/yr.	  	$	6,000.00/mo.
	 2/01/17 – 1/31/22
	  	$	75,000.00/yr.	  	$	6,250.00/mo.
	 2/01/22 – 1/31/27
	  	$	78,000.00/yr.	  	$	6,500.00/mo.
	 2/01/27 – 1/31/32
	  	$	81,000.00/yr.	  	$	6,750.00/mo.
	 2/01/32 – 1/31/37
	  	$	84,000.00/yr.	  	$	7,000.00/mo.
	 2/01/37 – 1/31/42
	  	$	87,000.00/yr.	  	$	7,250.00/mo.
	 2/01/42 – 1/31/47
	  	$	90,000.00/yr.	  	$	7,500.00/mo.
	 2/01/47 – 1/31/52
	  	$	93,000.00/yr.	  	$	7,750.00/mo.
	 2/01/52 – 1/31/57
	  	$	96,000.00/yr.	  	$	8,000.00/mo.
	 2/01/57 – 1/31/62
	  	$	99,000.00/yr.	  	$	8,250.00/mo.

 Base Rent due throughout the Term shall be payable in equal monthly installments, in advance, on
or before the date which is ten (10) days in advance of the first day of each calendar month of the Term, except that Subtenant shall pay the first such monthly installment upon the execution hereof. Subtenant shall provide Sublandlord with
reasonable documentation (e.g., a copy of the check along with proof of delivery) that such payments have been timely made, within two (2) business days of delivery thereof. If the Rent Commencement Date is a date other than the first day of
the month, rent for the period commencing with and including the Rent Commencement Date until the first day of the following month shall be pro-rated at the rate of one-thirtieth (1/30th) of the fixed monthly rental per day. All rent and other
amounts due under this Sublease shall be paid without demand or notice and without any setoff or deduction whatsoever. All charges, costs and sums (including, without limitation, any governmental assessments) required to be paid by Subtenant to
Sublandlord hereunder in addition to Base Rent shall be deemed additional rent (“Additional Rent”), and Base Rent and Additional Rent shall hereinafter be collectively called “Rent.” Subject to Landlord’s consent, Rent shall
be paid to or upon the order of Landlord and sent to the following address: Post Office Box 17736, Raleigh, North Carolina 27619, Attn: Barry Sandman. Sublandlord shall have the right to change the Rent payment address (or direct that future Rent
payments should be paid to the order of Sublandlord) by giving advance written notice thereof to Subtenant. All payments of Rent shall be made in immediately available, lawful money of the United States. 
 As of the Rent Commencement Date, Subtenant shall also be responsible for all additional rental (including, without limitation, increases in real estate
taxes or Landlord’s insurance costs) required of Sublandlord as Tenant under the Prime Lease. Subtenant shall also procure and pay for its own utilities, as set forth in Section 7 of the Prime Lease. Subtenant acknowledges and agrees that,
as between Sublandlord and Subtenant, Sublandlord will not be responsible for any charges under the Prime Lease. 
  

 3 

 4. Subtenant will not assign this Sublease in whole or in part, nor sublet all or any part of the
Premises, without the prior written consent of Sublandlord and Landlord first obtained, Sublandlord’s consent not to be unreasonably withheld. 
 5. All notices required or permitted by any provision of the Prime Lease or this Sublease shall be sent via certified mail, return receipt requested or via personal or overnight mail delivery (with proof of delivery requested) and shall be
directed to Landlord at the address for notice as set forth in the Prime Lease. Other notices required or permitted by any provision of the Prime Lease or this Sublease shall be directed as follows: 
  

			
	 If to Sublandlord:
	  	Regale, Inc.
		  	c/o Sandman & Rosefielde-Keller
		  	 7101 Creedmoor Road, Suite 142
 Raleigh, North
Carolina 27613

		  	Attention: S. Barry Sandman
		  	Facsimile: (919) 847-7335
		
	 with a copy to:
	  	Smith, Anderson, Blount, Dorsett,
		  	    Mitchell & Jernigan, L.L.P.
		  	 Post Office Box 2611
 Raleigh, North Carolina
27602-2611

		  	Attention: Michael P. Saber, Esq.
		
		  	overnight delivery address:
		
		  	2500 Wachovia Capitol Center
		  	 150 Fayetteville Street
 Raleigh, North Carolina
27601

		
	 If to Subtenant:
	  	Troy Lowrie
		  	VCG Holding Corp.
		  	 390 Union St., Suite 540
 Lakewood, Colorado
80228

		  	Facsimile: (303) 922-0746

  

 4 

			
		  	and
		
		  	Michael L. Ocello
		  	VCG Holding Corp.
		  	 1401 Mississippi Avenue, #10
 Sauget, Illinois
62201

		  	Facsimile: (681) 271-8384
		
	 with a copy to:
	  	Allan S. Rubin, Esq.
		  	Draper, Rubin & Shulman P.L.C.
		  	 29800 Telegraph Road
 Southfield, Michigan
48034

		  	Facsimile: (248) 358-9400

 Either party may, at any time or from time to time, designate in writing a substitute address for the above set
forth, and thereafter notice shall be directed to such substitute address. 
 6. This Sublease, and all rights hereunder, are in full
respects subordinate to the Prime Lease. 
 7. Subtenant hereby agrees to execute such other necessary documents and instruments as
Sublandlord may hereafter reasonably request in order to effectuate the provisions of the Sublease. In the event that Subtenant is more than one person or entity, the obligations of the persons and entities executing this Sublease as Subtenant shall
be joint and several. 
 8. Landlord’s consent to this Sublease shall not be construed as relieving Sublandlord from the requirement of
obtaining Landlord’s consent to any further subleasing or assignment of the Prime Lease, or of creating any rights in Subtenant against Landlord as a result of Landlord’s consent to this Sublease. 
 9. Subtenant acknowledges and agrees that the Premises are being conveyed on an “as is” basis, and that Sublandlord hereby makes no
representation or warranty whatsoever, including specifically the condition thereof or their fitness for a particular purpose. Subtenant shall not alter the Premises without first obtaining Sublandlord’s written approval for such alteration.
Subtenant acknowledges that alterations are further subject to the consent of Landlord and Subtenant shall be responsible for obtaining such consent; provided, however, Sublandlord shall cooperate and work with Subtenant to obtain the consent of the
Landlord. Except as otherwise agreed upon at the time any such consent is given or specified in the Prime Lease, all alterations shall remain upon the Premises and shall be incorporated in and made a part of the Premises as completed. Subtenant
shall be solely responsible for the removal of any of its improvements at the end of the Term, if so requested by Landlord. 
  

 5 

 10. Subtenant shall be liable for, and shall indemnify, defend and hold Sublandlord and Landlord harmless
from and against, any and all claims, damages, judgments, suits, causes of actions, losses, liabilities, and expenses, including, without limitation, attorneys’ fees and court costs to the extent arising or resulting from (a) the
negligence or willful misconduct of Subtenant or any of Subtenant’s agents, employees, subtenants, assignees, licensees, or invitees as to injuries to persons or damage to property occurring in or about the Premises and (b) the default by
Subtenant of any obligation on Subtenant’s part to be performed under the terms of this Sublease; provided, however, Subtenant’s indemnity shall not apply or extend to any such damage or injury to the extent the same are the result of the
gross negligence or willful misconduct of Sublandlord (or Landlord, in the case of Landlord’s indemnity), or Sublandlord’s (or Landlord’s, in the case of Landlord’s indemnity) employees, agents or contractors. In case any action
or proceeding is brought against Sublandlord or Landlord by reason of Subtenant’s indemnification obligation set forth in this section, Sublandlord shall have the right to defend same with counsel of Sublandlord’s choice, at
Subtenant’s sole cost and expense. The terms and provisions of this section shall survive the termination or expiration of this Sublease. 
 11. Notwithstanding any provision contained in this Sublease to the contrary, should either party institute any legal proceeding against the other for breach of any provision herein contained and prevail in such action, such other party
shall reimburse the prevailing party for the cost of expenses of such prevailing party, including, without limitation, its reasonable attorneys’ fees actually incurred at standard and reasonable billing rates. 
 12. This Sublease and all provisions contained herein are contingent upon the written approval of Landlord, a specimen form of consent being attached
hereto, made a part hereof and incorporated herein. 
 13. None of the covenants, terms or conditions of this Sublease to be kept and
performed by either party, shall in any manner be altered, waived, modified, changed or abandoned except by a written instrument, duly signed and delivered by the other party. 
 14. If any term or provision of this Sublease shall to any extent be held invalid or unenforceable, the remaining terms and provisions of this Sublease
shall not be affected thereby, but each term and provision of this Sublease shall be valid and shall be enforced to the fullest extent permitted by law. 
 15. All of the covenants, agreements, conditions and undertakings contained in this Sublease shall extend and inure to and be binding upon the heirs, executors, administrators, successors and permitted assigns of the
respective parties hereto. 
 16. Sublandlord and Subtenant warrant to the other that neither of them has had any dealings with any broker or
agent in connection with the transactions contemplated hereby. Sublandlord and Subtenant covenant to pay, hold harmless and indemnify the other from and 

  

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against any and all costs, expenses or liability for any compensation, commissions and charges claimed by any other broker or agent, with respect to the
transactions contemplated hereby or the negotiation thereof and arising by virtue of the acts of the indemnifying party. 
 17. No waiver by
any party hereto of any breach by the other party hereto of any term, covenant, condition, or agreement herein and no failure by any party hereto to exercise any right or remedy in respect of any breach hereunder, shall constitute a waiver or
relinquishment for the future of any such term, covenant, condition, or agreement or of any subsequent breach or of any such term, covenant, condition or agreement. 
 18. This Sublease constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and this Sublease supersedes all prior oral or written agreements, commitments, or understandings
with respect to the matters provided for herein. 
 19. This Sublease may be executed in multiple counterparts, each of which may be deemed
to be an original. 
 20. Sublandlord acknowledges and agrees that Subtenant shall be entitled to such signage rights as are permitted by the
Landlord, pursuant to and subject to the conditions of the terms of the Lease. 
 21. Whenever Sublandlord is required in the Prime Lease to
furnish insurance to Landlord, Subtenant agrees to furnish such insurance in the same amounts naming Sublandlord and Landlord as additional insureds with waivers of subrogation in favor of Landlord and Sublandlord, as provided in the Prime Lease.
Each such insurance policy shall contain a provision that such policies shall not be cancelled upon less than thirty (30) days prior written notice to Sublandlord. Subtenant will deliver certificates of insurance to Sublandlord (on forms
reasonably acceptable to Sublandlord). 
 22. Upon execution of this Sublease, Subtenant shall deposit with Sublandlord a security deposit in
an amount equal to three (3) months’ Base Rent (the “Security Deposit”), in cash. 
 If Subtenant is in default,
Sublandlord can use the Security Deposit, or any portion of it, to cure such default, and Subtenant shall, within five (5) business days after written notice thereof, pay such amounts expended to Sublandlord so as to maintain the Security
Deposit in its initial amount. In the event that Sublandlord terminates this Sublease as a result of Subtenant’s default, Sublandlord shall be entitled to retain the entire balance of the Security Deposit, without prejudice to any other rights
that Sublandlord may have under this Sublease or applicable law. 
  

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 23. The occurrence of any one or more of the following events (“Events of Default,” any one an
“Event of Default”) shall constitute a default and breach of this Sublease: (a) failure by Subtenant to make any payment of Rent or fees as and when it shall become due under this Sublease; (b) failure by Subtenant (or
Subtenant’s officers, directors, members, subtenants, employees, invitees, licensees, contractors, and agents) to perform any other promise, duty or obligation herein agreed to by Subtenant, or imposed upon Subtenant (or Subtenant’s
officers, directors, members, subtenants, employees, invitees, licensees, contractors, or agents) by law; (c) Subtenant shall become bankrupt or insolvent, or file any debtor proceedings, or file pursuant to any statute a petition in
bankruptcy or insolvency, or file a petition for the appointment of a receiver or trustee for all or substantially all of Subtenant’s assets and such petition or appointment shall not have been set aside within sixty (60) days from the
date of such petition or appointment, or if Subtenant makes an assignment for the benefit of creditors, or petitions for or enters into an arrangement for the benefit of creditors; (d) the abandonment or desertion of the Premises (or any
portion thereof) for any reason; (e) the attachment, execution or other judicial seizure of substantially all of Subtenant’s assets located at the Premises or of Subtenant’s leasehold interest in this Sublease, where such seizure
is not discharged within sixty (60) days; (f) any default under, or any violation or breach of any agreement, covenant or representation made by Subtenant in, that certain Agreement for the Purchase and Sale of Assets by and among
Sublandlord, Subtenant, and Guarantor, dated as of March 23, 2007; (g) any default under, or any violation or breach of any agreement, covenant or representation made by Subtenant in, that certain Indemnification Agreement by and among
Sublandlord, Subtenant, and Guarantor, dated as of March 23, 2007; (h) anything which would constitute a default under the Prime Lease (or proximately result in Sublandlord being in default under the Prime Lease); or (i) any default
by Subtenant under that certain Lease Agreement for the parking lot adjacent to the Premises by and between Big Deck Parking, LLC and Subtenant, dated as of the date hereof. Upon the occurrence of any Event of Default, Sublandlord may at its option
do any one or all of the following: (A) declare all Rent and all other amounts owed to Sublandlord hereunder for the remainder of the Term immediately due and payable; (B) terminate this Sublease without further notice and exercise any
rights or remedies available in this Sublease, at law or in equity; (C) repossess the Premises (or portion thereof), with or without terminating this Sublease; (D) seize and hold any personal property of Subtenant (or Subtenant’s
officers, directors, members, subtenants, employees, invitees, licensees, contractors or agents) located on the Premises and assert against the same a lien for monies due Sublandlord; and/or (E) without obtaining any court authorization,
deny Subtenant’s (or Subtenant’s officers, directors, members, subtenants, employees, invitees, licensees, contractors or agents) access to the Premises. Sublandlord’s reasonable attorneys’ fees in pursuing any of the
foregoing remedies, or in collecting any Rent or other amounts due hereunder, shall be paid by Subtenant. 
 Notwithstanding the foregoing,
Sublandlord shall give Subtenant written notice of any failure under subsections (b), (f), or (g) above (with no more than fifteen (15) days to cure), provided that Sublandlord shall not be required to provide more than two (2) such
notices (including any notices given under incorporated provisions of the Prime Lease) in any twelve (12) month period during the Term. 
  

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 24. As additional consideration for Sublandlord to enter into this Sublease, Subtenant shall cause VCG
Holding Corp., a company incorporated under the laws of Colorado and having an office at 390 Union Street, Suite 540, Lakewood, Colorado 80228 (“Guarantor”), to execute the Guaranty Agreement attached hereto as Exhibit A (the
“Guaranty”) and Subtenant shall deliver same to Sublandlord contemporaneously with Subtenant’s execution of this Sublease. Subtenant’s failure to deliver such Guaranty as required in the preceding sentence shall be an automatic
event of default under this Sublease, with no notice being necessary to Subtenant, and Sublandlord shall be entitled to exercise any and all rights and remedies available to it hereunder, as well as at law or in equity. Additionally, if Subtenant
fails to deliver such Guaranty, Sublandlord, notwithstanding anything to the contrary contained in this Sublease, may terminate this Sublease by providing Subtenant five (5) days advance written notice thereof. 
 [Signature Pages Follow] 
  

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 IN WITNESS WHEREOF, each party hereto has duly executed this Sublease as of and on the day and
year first above written. 
  

					
	ATTEST:	 	SUBLANDLORD:
		 	REGALE, INC.
			
	  
	 	By:	 	 /s/ S. Barry Sandman

		 	Name:	 	S. Barry Sandman
		 	Title:	 	President
		
	ATTEST:	 	SUBTENANT:
		 	RALEIGH RESTAURANT CONCEPTS, INC.
			
	  
	 	By:	 	 /s/ Micheal L. Ocello

		 	Name:	 	Micheal L. Ocello
		 	Title:	 	President

  

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 CONSENT TO SUBLEASE (LANDLORD) 
 Landlord is executing this document for the sole purpose of consenting to the Sublease described therein, and the terms thereof, but consent by Landlord
to the foregoing Sublease shall not constitute a waiver of the requirement for consent to any other sublease, nor shall Landlord’s consent to the foregoing Sublease create any rights in the Subtenant against Landlord or any privity between the
Landlord and the Subtenant named in the Sublease. In the event of any conflict between the provisions set forth in the foregoing Sublease and the provisions of the Prime Lease, the provisions of the Prime Lease shall control with respect the rights
and remedies of Landlord. Sublandlord shall remain responsible for its obligations under the Prime Lease. 
 Landlord further acknowledges
and agrees that (i) Subtenant may make Rent payments directly to Landlord, on behalf of Sublandlord; and (ii) notices provided by Landlord to Sublandlord pursuant to the Prime Lease shall be sent to the addresses listed in Section 5
of the Sublease. 
  

					
	ATTEST:	 	MARGARET S. PEELER
			
	  
	 	By:	 	 /s/ Margaret S. Peeler

		 	Date:	 	April 16, 2007

 EXHIBIT A 
 GUARANTY AGREEMENT 
 As a material inducement to Sublandlord to enter into the Sublease, dated April 16,
2007 (as may be amended from time to time, the “Sublease”), between Regale, Inc., as Sublandlord, and Raleigh Restaurant Concepts, Inc., as Subtenant, VCG Holding Corp., the Guarantor (as defined in Section 24 of the Sublease), hereby
unconditionally and irrevocably guarantees the complete and timely performance of each obligation of Subtenant (and any subtenant and/or assignee) under the Sublease and any extensions, or renewals of and amendments to the Sublease. This Guaranty is
an absolute, primary, and continuing, guaranty of payment and performance and is independent of Subtenant’s obligations under the Sublease. Guarantor (and if this Guaranty is signed by more than one person or entity, each Guarantor hereunder)
shall be primarily liable, jointly and severally, with Subtenant and any other guarantor of Subtenant’s obligations. Guarantor waives any right to require Sublandlord to (a) join Subtenant with Guarantor in any suit arising under this
Guaranty, (b) proceed against or exhaust any security given to secure Subtenant’s obligations under the Sublease, or (c) pursue or exhaust any other remedy in Sublandlord’s power. Until all of Subtenant’s obligations to
Sublandlord have been discharged in full, Guarantor shall have no right of subrogation against Subtenant. Sublandlord may, without notice or demand and without affecting Guarantor’s liability hereunder, from time to time, compromise, extend or
otherwise modify any or all of the terms of the Sublease, or fail to perfect, or fail to continue the perfection of, any security interests granted under the Sublease. Without limiting the generality of the foregoing, if Subtenant elects to increase
the size of the subleased premises, extend the sublease term, or otherwise expand Subtenant’s obligations under the Sublease, Subtenant’s execution of such lease documentation shall constitute Guarantor’s consent thereto (and such
increased obligations of Subtenant under the Sublease shall constitute a guaranteed obligation hereunder); Guarantor hereby waives any and all rights to consent thereto. Guarantor waives any right to participate in any security now or hereafter held
by Sublandlord. Guarantor hereby waives all presentments, demands for performance, notices of nonperformance, protests, notices of protest, dishonor and notices of acceptance of this Guaranty, and waives all notices of existence, creation or
incurring of new or additional obligations from Subtenant to Sublandlord. Guarantor further waives all defenses afforded guarantors or based on suretyship or impairment of collateral under applicable law, other than payment and performance in full
of Subtenant’s obligations under the Sublease. The liability of Guarantor under this Guaranty will not be affected by (i) the release or discharge of Subtenant from, or impairment, limitation or modification of, Subtenant’s
obligations under the Sublease in any bankruptcy, receivership, or other debtor relief proceeding, whether state or federal and whether voluntary or involuntary; (ii) the rejection or disaffirmance of the Sublease in any such proceeding; or
(iii) the cessation from any cause whatsoever of the liability of Subtenant under the Sublease. Guarantor shall pay to Sublandlord all costs incurred by Sublandlord in enforcing this Guaranty (including, without 

 
limitation, reasonable attorneys’ fees and expenses). The obligations of Subtenant under the Sublease to execute and deliver estoppel statements, as
therein provided, shall be deemed to also require the Guarantor hereunder to do so and provide the same relative to Guarantor following written request by Sublandlord in accordance with the terms of the Sublease. All notices and other communications
given pursuant to, or in connection with, this Guaranty shall be delivered in the same manner required in the Sublease. All notices or other communications addressed to Guarantor shall be delivered at the address set forth below. This Guaranty shall
be binding upon the heirs, legal representatives, successors and assigns of Guarantor and shall inure to the benefit of Sublandlord’s successors and assigns. This Guaranty shall be deemed to be made under and shall be construed in accordance
with the laws of the State of North Carolina and the Guarantor agrees any litigation necessary to enforce the rights of any party hereto, including but not limited to the Landlord, Margaret S. Peeler, shall be brought in the State of North Carolina,
County of Wake. 
  

			
	GUARANTOR:
	 VCG Holding Corp.,
 a Colorado
corporation

		
	By:	 	 /s/ Micheal L. Ocello

	Name:	 	Micheal L. Ocello
	Title:	 	President
	Date:	 	April 13, 2007
	Address:	 	 390 Union St., Suite 540
 Lakewood, Colorado
80228

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