Document:

Exhibit
4.10

	
  

  	
  

  

 

Allen
& Overy LLP

SIXTH SUPPLEMENTAL INDENTURE

among

AEGON N.V.,

as issuer

THE BANK OF NEW YORK TRUST
COMPANY, N.A.,

as trustee

and

CITIBANK, N.A.,

as paying agent

dated as of September 21, 2007

to the Indenture among

AEGON N.V.,

AEGON Funding Corp.,

and

THE BANK OF NEW YORK TRUST
COMPANY, N.A. (as successor in interest to Citibank, N.A.),

as trustee

dated as of October 11, 2001

$1,000,000,000 principal amount of 7.25% Perpetual
Capital Securities

TABLE OF CONTENTS

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions of Terms

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  General Terms and Conditions of the Capital
  Securities

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Designation and Principal Amount

  	
   

  	
  7

  
	
   

  	
  2.2

  	
  Maturity

  	
   

  	
  7

  
	
   

  	
  2.3

  	
  Form, Issuance, Registration and Exchange

  	
   

  	
  7

  
	
   

  	
  2.4

  	
  Payments

  	
   

  	
  8

  
	
   

  	
  2.5

  	
  Mandatory Payment Events; Mandatory Partial Payment
  Events

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Redemption, Conversion, Substitution and Purchases

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  General

  	
   

  	
  13

  
	
   

  	
  3.2

  	
  Optional Redemption

  	
   

  	
  13

  
	
   

  	
  3.3

  	
  Redemption for Tax Reasons

  	
   

  	
  14

  
	
   

  	
  3.4

  	
  Redemption, Conversion or Exchange for Regulatory
  Reasons

  	
   

  	
  14

  
	
   

  	
  3.5

  	
  Notice of Redemption

  	
   

  	
  15

  
	
   

  	
  3.6

  	
  Substitution Event

  	
   

  	
  15

  
	
   

  	
  3.7

  	
  Purchases

  	
   

  	
  16

  
	
   

  	
  3.8

  	
  Cancellation

  	
   

  	
  16

  
	
   

  	
  3.9

  	
  Intention to Replace

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Alternative Interest Satisfaction Mechanism

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  General

  	
   

  	
  16

  
	
   

  	
  4.2

  	
  Notice of Exercise of Alternative Interest
  Satisfaction Mechanism

  	
   

  	
  16

  
	
   

  	
  4.3

  	
  Issue of Payment Capital Securities

  	
   

  	
  17

  
	
   

  	
  4.4

  	
  Receipt of Cash Proceeds in Respect of Issue of
  Payment Capital Securities to be Used to Satisfy Payment

  	
   

  	
  17

  
	
   

  	
  4.5

  	
  Market Disruption

  	
   

  	
  17

  
	
   

  	
  4.6

  	
  Certification to Trustee

  	
   

  	
  18

  
	
   

  	
  4.7

  	
  Limitations in Connection with the Alternative
  Interest Satisfaction Mechanism

  	
   

  	
  18

  
	
   

  	
  4.8

  	
  Alternative Interest Satisfaction Mechanism Period

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Remedies

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Defaults; Collection of Indebtedness and Suits for
  Enforcement by Trustee

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Subordination

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Agreement to Subordinate

  	
   

  	
  20

  
	
   

  	
  6.2

  	
  Section 1401 of the Base Indenture

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Covenants of the Company

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Mandatory Interest Payments

  	
   

  	
  21

  
	
   

  	
  7.2

  	
  Payment of Proceeds from Sale of Payment Capital
  Securities in Connection with the Alternative Interest Satisfaction Mechanism

  	
   

  	
  21

  
	
   

  	
  7.3

  	
  Listing

  	
   

  	
  21

  
	
   

  	
  7.4

  	
  Officer’s Certificate on Deferral

  	
   

  	
  21

  
	
   

  	
  7.5

  	
  Officer’s Certificate on Market Disruption Event

  	
   

  	
  21

  

 

20 September 2007

 ii
 

 

	
  8.

  	
  Form of Capital Securities

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Form of Capital Securities

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Original Issue of Capital Securities

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.1

  	
  Original Issue of Capital Securities

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Winding Up

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  Winding Up

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Satisfaction and Discharge

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  Satisfaction and Discharge

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Taxation; Additional Amounts

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  General

  	
   

  	
  23

  
	
   

  	
  12.2

  	
  Section 1006 of the Base Indenture

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  Miscellaneous

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.1

  	
  Issuance of Definitive Securities

  	
   

  	
  24

  
	
   

  	
  13.2

  	
  Ratification of Base Indenture; Sixth Supplemental
  Indenture Controls

  	
   

  	
  25

  
	
   

  	
  13.3

  	
  Trustee Not Responsible for Recitals

  	
   

  	
  25

  
	
   

  	
  13.4

  	
  Governing Law

  	
   

  	
  25

  
	
   

  	
  13.5

  	
  Severability

  	
   

  	
  25

  
	
   

  	
  13.6

  	
  Counterparts

  	
   

  	
  25

  
	
   

  	
  13.7

  	
  Paying Agent

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Definition of Officers’ Certificate Amended

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Form of 7.25% Perpetual Capital Securities

  	
   

  	
  1

  

 

 iii

SIXTH
SUPPLEMENTAL INDENTURE

SIXTH SUPPLEMENTAL INDENTURE dated as of September 21,
2007 (the Sixth Supplemental Indenture)

AMONG:

(1)                                 AEGON N.V., a
Netherlands public company with limited liability (AEGON N.V.
or the Company), having its
principal executive office at AEGONplein 50, 2501 CE, The Hague, The
Netherlands;

(2)                               THE BANK OF NEW YORK TRUST COMPANY, a
national banking association duly organized and existing under the laws of the
United States of America, as Trustee (the Trustee) under
the Indenture dated as of October 11, 2001 (the Base Indenture),
among the Company, AEGON Funding Corp. (AEGON  Funding) and the Trustee (as successor in interest to
Citibank, N.A.), as modified by a supplemental indenture dated as of November
14, 2003, a second supplemental indenture dated as of June 1, 2005, a third
supplemental indenture dated as of November 23, 2005, a fourth supplemental
indenture dated as of December 12, 2005, and a fifth supplemental indenture
dated as of June 28, 2006 and as shall be further supplemented by this Sixth
Supplemental Indenture (this Sixth Supplemental Indenture together with the
Base Indenture, the Indenture);
and

(3)                                 CITIBANK, N.A., through its New
York branch, which has agreed to act as Paying Agent hereunder.

WHEREAS:

(A)                             the Company, AEGON Funding and Citibank, N.A. executed and delivered the
Base Indenture to provide for the future issuance of the Securities to be
issued from time to time in one or more series as might be determined under the
Base Indenture, in an unlimited aggregate principal amount, which may be
authenticated and delivered as provided in the Base Indenture;

(B)                               the Trustee is the successor in interest to Citibank, N.A. under the
Indenture pursuant to the terms of the Agreement of Resignation, Appointment
and Acceptance dated as of August 21, 2007 by and among the Company, AEGON
Funding Corp., the Trustee and Citibank, N.A.;

(C)                               Section 301 of the Base Indenture permits the terms of any series of
Securities to be established pursuant to a Board Resolution or in one or more
indentures supplemental to the Base Indenture;

(D)                              the Company desires to issue a series of Securities, the terms of which
it deems appropriate to set out in this Sixth Supplemental Indenture;

(E)                                pursuant to the terms of the Base Indenture, the Company may issue
Securities now and additional Securities of the same or different series at
later dates under the Base Indenture, as established by the Company, and the
Company desires to initially issue $1,000,000,000
aggregate principal amount of Securities, entitled the 7.25%
Perpetual Capital Securities (the Capital
Securities) plus up to an additional $150,000,000  if, and to the extent
that, the underwriters of the Capital Securities elect to exercise their
over-allotment option in whole or in part, the form and substance of such
Capital Securities and the terms, provisions and conditions thereof to be set
forth as provided in the Base Indenture as supplemented by this Sixth
Supplemental Indenture;

(F)                                pursuant to Section 301 of the Base Indenture, the Company desires to
appoint Citibank, N.A., through its New York branch, to act as Paying Agent
with respect to the Capital Securities;

(G)                             the Capital Securities shall be treated as a separate series of
Securities in accordance with the terms of the Indenture and for all purposes
under the Indenture; and

(H)                              the Company has duly authorized the execution and delivery of this Sixth
Supplemental Indenture and requested that the Trustee execute and deliver this
Sixth Supplemental Indenture, and all requirements necessary to make this Sixth
Supplemental Indenture a valid and binding instrument in accordance with its
terms have been done.

NOW THEREFORE, in consideration of the purchase and acceptance of the Capital
Securities by the holders thereof, and for the purpose of setting forth, as
provided in the Indenture, the form and substance of the Capital Securities and
the terms, provisions and conditions thereof, as well as for other purposes set
forth herein, the parties hereto hereby agree as follows:

1.                                      DEFINITIONS

1.1                               Definitions of Terms

For all purposes of the Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

(a)                                 a term defined in the Base Indenture and not otherwise defined herein
has the same meaning when used in this Sixth Supplemental Indenture;

(b)                                unless otherwise specified, a reference to a Section or Article is to a
Section or Article of this Sixth Supplemental Indenture;

(c)                                 headings are for convenience of reference only and do not affect
interpretation; and

(d)                                the following terms have the meanings set forth below for purposes of
this Sixth Supplemental Indenture and the Base Indenture as it relates to the
series of Capital Securities issued hereunder.

Accrued Interest Payment means, at any time, the amount of interest that has continued to accrue
after an Interest Payment Date in respect of (i) an Optionally Deferred
Payment, (ii) the failure to make a payment when due on an Interest Payment
Date, or (iii) failure to make a payment more than 14 days after its due date
due to a Market Disruption Event.

Additional Amounts has the meaning specified in Section 12.1.

Alternative Interest Satisfaction
Mechanism has the meaning specified
in Article 4.

Base Indenture has the meaning
specified in the Preamble.

Base Redemption Price has the meaning specified in Section 3.2.

Business Day means a day, other than a Saturday or Sunday, on which commercial banks
and foreign exchange markets are open for general business in New York and
Amsterdam.

Capital Adequacy Regulations means, at any time, the regulations, requirements, guidelines, policies
or decrees imposing obligations on AEGON N.V., as a holding company, with
respect to the

 2
 

maintenance of minimum levels of solvency margins
and/or capital adequacy ratios and/or comparable margins or ratios, as well as
regarding the supervision thereof by any existing or future regulator having
primary supervisory authority with respect to AEGON N.V.

Capital Securities has the meaning specified in the Recitals.

Common Shares means the common
shares, par value 0.12 euros per common share, of AEGON N.V.

Deferral Notice has the meaning specified in Section 2.4(d).

Deferred Interest Satisfaction Date means:

(a)                                 the Interest Payment Date following the 19th Business Day after the
Required Deferral Condition is no longer met;

(b)                                if other than an Interest Payment Date, the date on which the Company
resolves to satisfy a Mandatorily Deferred Payment or Optionally Deferred
Payment, as notified by the Company to the Trustee and the holders of Capital
Securities; or

(c)                                 the date on which the Company is required to satisfy all Mandatorily
Deferred Payments and Optionally Deferred Payments as a result of the
occurrence of a Mandatory Payment Event or a Mandatory Partial Payment Event.

Deferred Interest Payment means a Mandatorily Deferred Payment and/or an Optionally Deferred
Payment that has not subsequently been satisfied or deferred as provided in
Section 2.4.

DTC
means The Depository Trust Company.

Existing Capital Securities means three series of the Company’s perpetual capital securities in
aggregate principal amounts of €950 million, $500 million and €200 million,
respectively, issued under a trust deed dated July 15, 2004 between AEGON N.V.,
as issuer, and ATC Financial Services B.V., as trustee, together with four
series of the Company’s perpetual capital securities in aggregate principal
amounts of $1 billion, $500 million, $250 million and $550 million,
respectively, issued under the  Base  Indenture, as modified and supplemented from time to time
in connection with the issuance of such securities.

Indenture has the meaning specified in the Recitals.

Interest shall, where appropriate, include Interest Amounts, Mandatorily Deferred
Payments, Optionally Deferred Payments and Accrued Interest Payments.

Interest Amount means:

(a)                                 in respect of an Interest Payment, the amount of interest payable on a
Capital Security for the relevant Interest Period; and

(b)                                in the event of redemption due to a Tax Event or for regulatory reasons,
any interest accrued from (and including) the preceding Interest Payment Date
(or, if none, Issue Date) to (but excluding) the due date for redemption, and,
if not an Interest Payment Date, as calculated on a 30/360 day basis, but not
including the date of redemption.

 3
 

Interest Payment means, in respect of an Interest Payment Date, the aggregate Interest
Amount for the Interest Period ending on such Interest Payment Date.

Interest Payment Date has the meaning specified in Section 2.4(b).

Interest Period has the meaning specified in Section 2.4(c).

Interest Rate has the meaning specified in Section 2.4(a).

Issue Date means September 21, 2007.

Junior Guarantee means any guarantee, indemnity or other contractual support arrangement
entered into by the Company in respect of securities (regardless of name or
designation) issued by one of the Company’s subsidiaries or Undertakings and
ranking, in a winding-up (faillissement
or vereffening na ontbinding) or
in respect of distributions or payment of dividends or any other payment
thereon, after the Capital Securities.

Junior Securities means AEGON N.V.’s Common Shares, any Preferred Shares or any of its
other securities which rank after the Capital Securities with respect to
distributions on a return of assets in its winding-up (faillissement or vereffening na ontbinding) or in respect
of distributions or payment of dividends or any other payments thereon.

Mandatorily Deferred Payment is a payment that the Company is required to defer because the Required
Deferred Condition is met.

Mandatory Partial Payment means a Payment in respect of each Capital Security in an amount that
results in payment of a proportion of a full Interest Payment on the Capital
Security on such Interest Payment Date equal to the proportion of a full
payment on the relevant Parity Securities and/or payment on the relevant Parity
Guarantee paid on the payment date in respect of the relevant Parity Securities
and/or Parity Guarantee immediately preceding such Interest Payment Date.

Mandatory Partial Payment Event has the meaning specified in Section 2.5(c).

Mandatory Payment Event has the meaning specified in Section 2.5(b).

Market Disruption  Event means:

(a)                                 the occurrence or existence of any suspension of or limitation imposed
on trading by reason of movements in price exceeding limits permitted by the
Relevant Stock Exchange or on settlement procedures for transactions in the
Payment Capital Securities on the Relevant Stock Exchange if, in any such case,
that suspension or limitation is material in the context of the offering or
delivery of the Payment Capital Securities;

(b)                                in the opinion of the Company, there has been a substantial
deterioration in the price and/or value of the Payment Capital Securities or
circumstances are such as to prevent or to a material extent restrict the issue
or delivery of the Payment Capital Securities;

(c)                                 where, pursuant to the terms of the Indenture, monies are required to be
converted from one currency into another currency in respect of any payment,
the occurrence of any event that makes it impracticable to effect such
conversion; or

 4
 

(d)                                where, in the opinion of the Company, there will have been such a change
in national or international financial, political or economic conditions or
currency exchange rates or exchange controls as would in the Company’s view be
likely to prejudice materially the success of the offering and distribution of
the Payment Capital Securities or dealings in the Payment Capital Securities in
the secondary market, if any.

Non-Callable Securities
means subordinated perpetual non-cumulative securities that are not callable at
the option of the Company (and, in addition after the Company becomes subject
to Capital Adequacy Regulations, qualify as “own funds” or, if “own funds” is
subdivided into tiers, core capital (Tier 1 capital or equivalent)) and that
rank in a winding-up (faillissement or vereffening na ontbinding) effectively, from a financial
point of view, equally with Common Shares.

Optionally Deferred Payment is a payment that the Company elects to defer pursuant to Section
2.4(f).

Outstanding Payment means:

(a)                                 in relation to any Interest Payment, any Deferred Interest Payment or
Interest Amount not falling within the definition of Interest Payment, that
such payment (i) has either become due and payable or would have become due and
payable except for the non-satisfaction on the Relevant Date due to (A) a
failure to meet the conditions of payment pursuant to Section 2.4(g) or (B) the
deferral, postponement or suspension of such payment due to a Required Deferral
Condition, as a result of an election by the Company to defer such payment
pursuant to Section 2.4(f) or as a result of the limitations described
under Section 4.7, or (C) failure to make a payment more than 14 days after its
due date due to a Market Disruption Event; and (ii) in any such case has not
been satisfied; and

(b)                                in relation to any Accrued Interest Payment, any amount thereof which
has not been satisfied whether or not payment has become due.

Parity Guarantee means any guarantee, indemnity or other contractual support arrangement
the Company enters into with respect to securities (regardless of name or
designation) issued by any of the Company’s subsidiaries or Undertakings that
rank in its winding-up (faillissement or
vereffening na ontbinding) or in
respect of distributions or payments thereon equally with the Capital
Securities.

Parity Securities means, in respect of the Company, any securities that rank equally with
the Capital Securities with respect to distributions on a return of assets in
its winding-up (faillissement or vereffening na ontbinding) or in respect
of distribution or payment of any amounts thereunder by the Company. For the
avoidance of doubt, the Capital Securities rank equally with the Existing
Capital Securities.

Paying Agent means Citibank, N.A. as paying agent in relation to the Capital
Securities, or its successor or successors for the time being appointed in
accordance with the terms of the Indenture.

Payment means any Interest Payment, Mandatorily Deferred Payment, Optionally
Deferred Payment, Accrued Interest Payment, payment of the Base Redemption
Price or Interest Amount not falling within the definition of Interest Payment.

Payment Capital Securities means
(i) Common Shares, or (ii) any Non-callable Securities, in each case which the
Company may issue as part of the Alternative Interest Satisfaction Mechanism as
described in Article 4.

 5
 

Payment Default has the meaning specified in Section 5.1(a).

Payment Event has the meaning specified in Section 5.1(c).

Preferred Shares means the preferred shares of AEGON N.V.

Regular Record Date means the March 1, June 1, September 1 or December 1, as applicable,
immediately preceding an Interest Payment Date.

Regulatory Event means that the Company is subject to supervision by any existing or
future regulator pursuant to law or regulation and that its solvency margin,
capital adequacy ratios or comparable margins or ratios under the Capital
Adequacy Regulations are, or as a result of a Payment would become, less than
the relevant minimum requirements of such regulator pursuant to the Capital
Adequacy Regulations.

Relevant Date means:

(a)                                 in respect of any payment other than a Winding-Up Claim, the date on
which such payment first becomes due and payable but, if the full amount of the
monies payable on such date has not been received by the Trustee on or prior to
such date, the Relevant Date means the date on
which such monies will have been so received and notice to that effect will
have been given to the holders in accordance with Section 106 of the Base
Indenture; and

(b)                                in respect of a Winding-Up Claim, the date which is one day prior to the
commencement of the winding-up.

Relevant Stock Exchange means
the exchange or quotation system on which the Payment Capital Securities may have
their primary listing from time to time.

Required Deferral Condition means the Company (a) is not Solvent or making the relevant Payment
will result in the Company becoming not Solvent or (b) is subject to a
Regulatory Event or making the relevant Payment will result in the Company
becoming subject to a Regulatory Event.

Securities has the meaning set forth in the Base Indenture.

Senior Creditors means all the
present and future creditors of the Company:

(a)                                 who are unsubordinated creditors;

(b)                                whose claims are, or are expressed to be, subordinated (whether only in
the event of a winding-up (faillissement or
vereffening na ontbinding) or otherwise)
only to the claims of the Company’s unsubordinated creditors; and

(c)                                 who are subordinated creditors, other than those whose claims are, or
are expressed to rank, equally with, or junior to, the claims of holders of
Capital Securities.

Senior Debt means indebtedness of the Company held by one or more of its Senior
Creditors as Senior Creditors.

 6
 

Shareholders’ Equity
means the shareholders’ equity as stated in the Company’s audited consolidated
financial statements and as explained in the notes thereto.

Solvent means the Company is (a) able to pay its debts to Senior Creditors as
they become due and (b) the Company’s assets exceed the sum of its liabilities
(other than its liabilities to persons who are not Senior Creditors). For these
purposes, assets refers to the Company’s non-consolidated gross assets and
liabilities means its non-consolidated gross liabilities, in each case as shown
by the Company’s then latest published audited balance sheet but adjusted for
contingencies and for subsequent events and to such extent as the board of
directors, the auditors or, as the case may be, the liquidator may determine to
be appropriate.

Substitution Event
means that the Company is subject to supervision by any existing or future
regulator pursuant to law or regulation and that its solvency margin, capital
adequacy ratios or comparable margins or ratios under the Capital Adequacy
Regulations are or become less than the relevant minimum requirements of such
regulator pursuant to the Capital Adequacy Regulations.

Tax Event has the meaning specified in Section 3.3.

Undertaking means a corporate body, partnership, limited partnership, cooperative
or an incorporated association carrying on a trade or business with or without
a view to profit in which the Company has a direct or indirect financial,
commercial or contractual majority interest.

Winding-Up Claim means amounts in respect of principal or payments in respect of which
the conditions of payment pursuant to Section 2.4(g) are not satisfied on the
date upon which the same would otherwise be due and payable by the Company in
its winding-up (faillissement or vereffening na ontbinding) (upon
dissolution or otherwise) and on any redemption pursuant to Article 3. A
Winding-Up Claim will not bear interest.

2.                                      GENERAL TERMS AND CONDITIONS OF THE CAPITAL
SECURITIES

2.1                               Designation and Principal Amount

The aggregate principal amount of Capital Securities
of any series which may be authenticated and delivered under this Indenture is
unlimited.

2.2                               Maturity

The Capital Securities are perpetual securities
and shall have no fixed maturity or mandatory redemption date provided that the
Company shall have the right to redeem the Capital Securities in accordance
with Article 3.

2.3                               Form, Issuance, Registration and Exchange

The Capital Securities shall:

(a)                                 be issued as Securities in minimum denominations of $25.00 and integral
multiples thereof represented by one or more Global Securities, and shall not
be exchangeable for definitive securities except in the limited circumstances
as provided in Section 13.1; and

 7
 

(b)                                be issued as Global Securities deposited with or on behalf of DTC or its
nominee and registered in the name of Cede & Co., as nominee of DTC;
provided, however, (i) such Global Securities may not be transferred except as
a whole by DTC to a nominee or a successor of DTC, unless and until the Capital
Securities are exchanged for definitive securities in the limited instances as
provided Section 13.1; (ii) beneficial interests in Global Securities will be
shown on, and transfers thereof will be effected only through, the book-entry
records of DTC and its direct or indirect participants; and (iii) so long as
DTC, or its nominee, is the holder of the Global Securities, it will be
considered the sole holder of the Global Securities for all purposes under the
Indenture.

2.4                               Payments

(a)                                 Interest Rate.  The Capital
Securities shall bear Interest from the Issue Date at a fixed rate per annum on
their outstanding principal amount equal to 7.25%
(the Interest Rate). Interest will
be computed and paid on the basis of a 360-day year consisting of 12 months of
30 days each.

(b)                                Interest Payment Dates.  Subject
to the provisions herein, Interest shall be payable from September 21, 2007 or from the most recent Interest Payment Date to
which Interest on such Capital Security has been paid or duly provided for
until the principal amount of the Capital Security is paid or duly made
available for payment quarterly in arrears on March 15, June 15,
September 15  and December 15  in each year, commencing on December 15,
2007, each such date an Interest Payment Date.  If any Interest Payment Date or the redemption
date of the Capital Securities falls on a day that is not a Business Day, the
Company shall make the required payment on the next succeeding Business Day,
and no additional Interest shall accrue in respect of the payment made on that
next succeeding Business Day.

(c)                                 Interest Period.  Subject to the
conditions contained in the Indenture, the Company shall make Interest Payments
in an amount equal to the Interest accrued from (and including) the immediately
preceding Interest Payment Date in respect of which Interest has been paid or
from (and including) the date of issue, if no Interest has been paid, to (but
excluding) the next succeeding applicable Interest Payment Date (each, an Interest Period).  The Company shall make the Interest Payments
through the Paying Agent to the person in whose name the Capital Security is
registered on the Regular Record Date. 
Each Capital Security shall cease to bear Interest from the due date for
redemption, if any, unless, upon due presentation, payment of principal is
improperly withheld or refused. In such event, it shall continue to bear
Interest at the Interest Rate as provided herein.

(d)                                Required Deferral of Payments Before the Company is Subject to Capital
Adequacy Regulations

(i)                                    Except as required by Section 2.5, if, prior to such date as the Company
becomes subject to Capital Adequacy Regulations, on the 20th Business Day
preceding the date on which any Payment (not including principal) would
otherwise be due and payable, the Company determines that it is not Solvent or
that payment of the relevant Payment or part thereof would result in it
becoming not Solvent, the Company shall defer such Payment or such part
thereof, as the case may be, by giving notice to the Trustee and the holders of
Capital Securities. Such deferred interest payment (together with any required
deferral due to a Regulatory Event (as described below)), shall constitute a Mandatorily Deferred Payment and such notice as well as any
similar notice given in

 8
 

the event of a Mandatorily Deferred Payment due
to the occurrence of a Regulatory Event or an Optionally Deferred Payment (as
described below) shall constitute a Deferral Notice.  A Deferral Notice shall be given not less
than 16 Business Days prior to the Payment due date. This required deferral is
subject to the Alternative Interest Satisfaction Mechanism.

(ii)                                If, after the Company defers a Payment for the reason specified in
subparagraph (i) immediately above, the relevant Required Deferral Condition is
no longer met on the 20th Business Day preceding any subsequent Interest
Payment Date, then the Company shall satisfy such Payment on the relevant
Deferred Interest Satisfaction Date by giving notice, not less than 16 Business
Days prior to the Deferred Interest Satisfaction Date, to the Trustee and the
holders of Capital Securities that it will satisfy such Payment on such date.

(iii)                            The Company shall not satisfy such Payment on the relevant Deferred
Interest Satisfaction Date referred to above, if:

(A)                             it has previously elected to satisfy such Payment earlier (provided
that, at the time of satisfying such Payment, the relevant Required Deferral
Condition is no longer met) by delivering a notice to the Trustee and the
holders of Capital Securities not less than 16 Business Days prior to the relevant
Deferred Interest Satisfaction Date that the Company will satisfy such Payment
on such date; or

(B)                              the Company validly elects to use its right to optionally defer any such
Payment that would otherwise have been required to be paid on such Deferred
Interest Satisfaction Date pursuant to Section 2.4(f).

(iv)                           The Company may only satisfy its obligation to pay a Mandatorily
Deferred Payment in accordance with the Alternative Interest Satisfaction
Mechanism. A Mandatorily Deferred Payment shall not accrue interest, except as
provided in Article 4.

(e)                                 Required Deferral of Payments After the Company Becomes Subject to
Capital Adequacy Regulations

(i)                                    Except as required by Section 2.5, if, after such date as the Company
becomes subject to Capital Adequacy Regulations, on the 20th Business Day
preceding the date on which any Payment (not including principal) would
otherwise be due and payable, the Company determines that it is subject to a
Regulatory Event or that Payment of the relevant Payment or part thereof would
result in it becoming subject to a Regulatory Event, the Company shall defer
such Payment or such part thereof, as the case may be, by giving a Deferral
Notice to the Trustee and the holders of Capital Securities. A Deferral Notice
must be given not less than 16 Business Days prior to the Payment due date.

If, after the Company defers a Payment for this
reason, the relevant Required Deferral Condition is no longer met on the 20th
Business Day preceding any subsequent Interest Payment Date, then it shall
satisfy such Payment on the relevant Deferred Interest Satisfaction Date by
giving notice, not less than 16 Business Days prior to the Deferred

 9
 

Interest Satisfaction Date, to the Trustee and the
holders of Capital Securities that it will satisfy such Payment on such date.

(ii)                               The Company shall not satisfy such Payment on the relevant Deferred
Interest Satisfaction Date referred to above, if:

(A)                             the Company has previously elected to satisfy such Payment earlier
(provided that, at the time of satisfying such Payment, the relevant Required
Deferral Condition is no longer met) by delivering a notice to the Trustee and
the holders of Capital Securities not less than 16 Business Days prior to the
relevant Deferred Interest Satisfaction Date that it will satisfy such Payment
on such date; or

(B)                              the Company validly elects to use its right to optionally defer any such
Payment that would otherwise have been required to be paid on such Deferred
Interest Satisfaction Date pursuant to Section 2.4(h).

(iii)                            The Company may only satisfy its obligations to pay a Mandatorily
Deferred Payment in accordance with the Alternative Interest Satisfaction
Mechanism. A Mandatorily Deferred Payment shall not accrue interest, except as
provided in Article 4.

(f)                                   Optionally Deferred Payment

(i)                                    Subject to the conditions contained in Section 2.5 below, the Company
may at any time in its sole discretion and for any reason defer all or part of
any Payment that would in the absence of deferral be due and payable by giving
a Deferral Notice to the Trustee and the holders of Capital Securities not less
than 16 Business Days prior to the relevant due date. The Company shall then,
subject to the absence of a Required Deferral Condition, satisfy any such
Optionally Deferred Payment at any time by means of an issuance of Payment
Capital Securities in accordance with the Alternative Interest Satisfaction
Mechanism, upon delivery of a notice to the Trustee and the holders of Capital
Securities, not less than 16 Business Days prior to the relevant Deferred
Interest Satisfaction Date, informing them of the Company’s election to so
satisfy such Payment and specifying the relevant Deferred Interest Satisfaction
Date.

(ii)                               Optionally Deferred Payments will bear interest at the Interest Rate
from (and including) the date on which, but for such deferral, the Optionally
Deferred Payment would otherwise have been due to be made to (but excluding)
the relevant Deferred Interest Satisfaction Date.

(g)                                Conditions of Payment

(i)                                    Before the Company becomes subject to Capital Adequacy Regulations, any
Payment relating to the Capital Securities (or use of the proceeds of the issue
of Payment Capital Securities in accordance with the Alternative Interest
Satisfaction Mechanism) shall be made only if the Company is Solvent at the
time of payment (or at the time of using the proceeds of the issue of such
Payment Capital Securities). The Company shall make no Payment relating to the
Capital Securities (nor use any proceeds of the issue of Payment Capital
Securities in accordance with the Alternative Interest Satisfaction Mechanism)

 10
 

unless the Company would still be Solvent
immediately after such Payment (or use of the proceeds of such Payment Capital
Securities). The Company’s redemption or purchase of the Capital Securities
constitutes a payment that is subject to this condition.

(ii)                                After the Company becomes subject to Capital Adequacy Regulations, any
Payment relating to the Capital Securities (or use of the proceeds of the issue
of Payment Capital Securities in accordance with the Alternative Interest
Satisfaction Mechanism) shall be made only if the Company is not subject to a
Regulatory Event at the time of payment (or at the time of using the proceeds
of the issue of such Payment Capital Securities). The Company shall make no
Payment relating to the Capital Securities (nor use any proceeds of the issue
of Payment Capital Securities in accordance with the Alternative Interest
Satisfaction Mechanism) unless it is not subject to a Regulatory Event and
could make the Payment (or use of the proceeds of such Payment Capital
Securities) and still not be subject to a Regulatory Event thereafter. The
Company’s redemption or purchase of the Capital Securities constitutes a
payment that is subject to this condition.

(iii)                            Winding-Up Claim

A Winding-Up Claim shall be payable by the Company in
its winding-up (faillissement or vereffening na ontbinding) as provided in
Section 10.1.

(iv)                            Set-Off

By purchasing Capital Securities, the holders of
Capital Securities and the Trustee will be deemed to have waived any right of
set off, counterclaim or combination of accounts with respect to the Capital
Securities or the Indenture (or between the Company’s obligations regarding the
Capital Securities and any liability owed by a holder or the Trustee to the
Company) that the holders of Capital Securities or the Trustee might otherwise
have against the Company. Each holder will, by virtue of holding any Capital
Security, be deemed to have waived all such rights of set-off.

(h)                                Deferral Notice

The Company shall give a Deferral Notice in the case
of a Required Deferral Condition and may give a Deferral Notice, in its sole
discretion and for any reason, in the case of an Optionally Deferred Payment,
except that any such Deferral Notice as to a payment required to be paid
pursuant to a Mandatory Payment Event or Mandatory Partial Payment Event
pursuant to Section 2.5(a) below shall have no force or effect.

2.5                               Mandatory Payment Events; Mandatory Partial Payment Events

The Company will be required to make payments on the
Capital Securities in the following circumstances:

(a)                                 If a Mandatory Payment Event or Mandatory Partial Payment Event occurs
then all Mandatorily Deferred Payments and Optionally Deferred Payments shall
become mandatorily due and payable in full on the date of the event,
notwithstanding any further Deferral Notice or an occurrence or continuance of
a Required Deferral Condition. 
Notwithstanding any provision to the contrary herein, the Company shall
only satisfy its obligations to pay such Mandatorily Deferred Payments and
Optionally Deferred Payments in accordance with the provisions of the

 11
 

Alternative Interest Satisfaction
Mechanism.  The Company shall promptly
notify the Trustee of the occurrence of any Mandatory Payment Event or
Mandatory Partial Payment Event.

(b)                                If a Mandatory Payment Event occurs, then the Interest Payments payable
on the next four consecutive Interest Payment Dates, the next two consecutive
Interest Payment Dates or the next Interest Payment Date, as the case may be,
following the Mandatory Payment Event, depending on whether the Junior
Security, the Parity Security or the security benefiting from a Junior
Guarantee or a Parity Guarantee pays dividends or income distributions on an
annual basis, a semi-annual basis or a quarterly basis, as the case may be,
shall be mandatorily due and payable in full on the relevant Interest Payment
Dates. The Company may, but shall not be required to, satisfy its obligation to
make the Interest Payment payable on such Interest Payment Date in accordance
with the Alternative Interest Satisfaction Mechanism.

A Mandatory Payment Event
occurs if:

(i)                                  the Company declares, pays or distributes a dividend or makes a payment
(other than a dividend in the form of Common Shares) on any of its Junior
Securities or makes a payment on a Junior Guarantee;

(ii)                               any of the Company’s subsidiaries or Undertakings, declares, pays or
distributes a dividend on any security issued by it benefiting from a Junior
Guarantee or makes a payment (other than a dividend in the form of Common
Shares) on any security issued by it benefiting from a Junior Guarantee;

(iii)                            the Company or any of its subsidiaries or Undertakings redeems,
purchases or otherwise acquires for any consideration any of the Company’s
Junior Securities, Parity Securities or securities issued by any of its
subsidiaries or Undertakings benefiting from a Junior Guarantee or Parity
Guarantee, other than:

(A)                            by conversion into or in exchange for its Common Shares;

(B)                              in connection with transactions effected by or for the account of its
customers or customers of any of its subsidiaries or in connection with the
distribution, trading or market making activities in respect of those
securities;

(C)                              in connection with its satisfaction of the Company’s, or the
satisfaction by any subsidiary of the Company of its, obligations under any of
the Company’s or any subsidiary of the Company’s employee benefit plans or
similar arrangements with or for the benefit of employees, officers, directors
or consultants of the Company or any of its subsidiaries;

(D)                             as a result of a reclassification of the Company or any of its
subsidiaries or the exchange or conversion of one class or series of capital
stock for another class or series of capital stock; or

(E)                               the purchase of fractional interests in shares of the Company’s capital
stock or the capital stock of any of its subsidiaries pursuant to the
conversion or exchange provisions of that capital stock (or the security being
converted or exchanged); or

 12
 

(iv)                             any moneys are paid to or made available for a sinking fund or for
redemption of any Junior Securities, Parity Securities or any securities issued
by any of its subsidiaries or Undertakings benefiting from a Junior Guarantee
or Parity Guarantee;

except in the cases described in (i) through (iv)
above where it concerns a payment, purchase or redemption that the Company is
obliged to make pursuant to its Articles of Association as they read prior to
the relevant deferral or equity swap, forward, repo or equity derivative
transactions it concludes prior to the relevant deferral.

(c)                                 If a Mandatory Partial Payment Event occurs, then Mandatory Partial
Payments shall be mandatorily due and payable in respect of each Capital
Security. Such Mandatory Partial Payments will be payable on the next four
consecutive Interest Payment Dates, the next two consecutive Interest Payment
Dates or the next Interest Payment Date, as the case may be, after the
occurrence of such Mandatory Partial Payment Event, depending on whether the
Parity Securities pay dividends or income distributions on an annual basis, a
semi-annual basis or a quarterly basis, as the case may be. The Company may,
but will not be required to, satisfy its obligation to pay any Mandatory
Partial Payments in accordance with the Alternative Interest Satisfaction
Mechanism.

A Mandatory Partial Payment
Event occurs if:

(i)                                   the Company declares, pays or distributes a dividend or makes a payment
on any of its Parity Securities or makes any payment on any of its Parity Guarantees
(except where it concerns a payment, purchase or redemption that the Company is
obliged to make pursuant to its Articles of Association as they read prior to
the relevant deferral or equity swap, forward, repo or equity derivative
transactions concluded by the Company prior to the relevant deferral); or

(ii)                                any of its subsidiaries or Undertakings declares, pays or distributes a
dividend on any security issued by it benefiting from a Parity Guarantee or
makes a payment on any security issued by it benefiting from a Parity
Guarantee.

3.                                      REDEMPTION, CONVERSION, SUBSTITUTION AND
PURCHASES

3.1                               General

Any redemption made in accordance with this Article 3
shall be made in accordance with Section 1102 and Sections 1104 through Section
1106 of the Base Indenture.

3.2                               Optional Redemption

Subject to Section 2.4(g), the Company may redeem the
Capital Securities in whole (but not in part) at its option, on December 15,
2012, or on any Interest Payment Date thereafter at their aggregate principal
amount together with Outstanding Payments due through the date of redemption,
together the Base Redemption Price.  The Capital Securities are not redeemable at
the option of the holder of a Capital Security at any time.

 13
 

3.3                               Redemption for Tax Reasons

(a)                                 The Company may, by giving notice of redemption, redeem in whole (but
not in part) the Capital Securities at their Base Redemption Price if a Tax
Event occurs. A Tax Event will occur if the
Company determines that immediately prior to the giving of the notice referred
to below, on the next Interest Payment Date any of the following would occur or
be occurring.

(i)                                  The Company would, for reasons outside its control, be unable to make
such Payment without being required to pay Additional Amounts and the Company
cannot avoid the requirement or circumstance by taking measures as it (acting
in good faith) deems appropriate.

(ii)                               Payments of amounts in respect of interest on the Capital Securities,
including, for the avoidance of doubt, the issue of Payment Capital Securities
pursuant to the Alternative Interest Satisfaction Mechanism, may be treated as “distributions”
within the meaning of Section II of the Dividend Withholding Tax Act 1965 (Wet op de dividendbelasting 1965; or such other provision as
may from time to time supersede or replace Section II of the Dividend
Withholding Tax Act 1965 for the purposes of such definition) and the Company
cannot avoid the requirement or circumstance by taking such measures as it
(acting in good faith) deems appropriate.

(iii)                            As a result of any proposed change or amendment to the laws of the
Netherlands, or any proposed change in the application of official or generally
published interpretation of such laws, or any interpretation or pronouncement
by any relevant tax authority that provides for a position with respect to such
law or regulations that differs from the previously generally accepted position
in relation to similar transactions or which differs from any specific written
confirmation given by a tax authority in respect of the Capital Securities,
which change or amendment becomes, or would become, effective, or in the case
of a change or proposed change in law if such change is enacted (or, in the
case of a proposed change, is expected to be enacted) by Act of Parliament or
made by Statutory Instrument on or after June 21, 2006, there is more than an
insubstantial risk that the Company will not obtain substantially full relief
for the purposes of Dutch corporation tax for any payment of interest
including, for the avoidance of doubt, where the payment of interest is to be
satisfied by the issue of Payment Capital Securities pursuant to the
Alternative Interest Satisfaction Mechanism and it cannot avoid this risk by
taking such measures as it (acting in good faith) deems appropriate.

(b)                                Upon the occurrence of a Tax Event, the Company is required, before it
gives a notice of redemption in accordance with Section 3.5, to deliver to the
Trustee a written legal opinion of independent Netherlands counsel of
recognized standing, selected by the Company, in a form satisfactory to the
Trustee confirming that such Tax Event has occurred. The Trustee will accept
such opinion as sufficient evidence of the conditions set out above, in which
event it will be conclusive and binding on the holders of Capital Securities.

3.4                               Redemption, Conversion or Exchange for Regulatory Reasons

If, at any time after the Company becomes subject to
Capital Adequacy Regulations, the relevant regulator has determined that
securities of the nature of the Capital Securities do not qualify as “own

 14
 

funds” or, if “own funds” is subdivided into tiers, “core
capital” (Tier 1 capital or equivalent), for the purposes of determination of
such Capital Adequacy Regulations, then:

(a)                                 the Company may at any time, by giving notice of redemption, redeem in
whole (but not in part) the Capital Securities at their Base Redemption Price;
or

(b)                                subject to compliance with applicable regulatory requirements, the
Company may at any time convert or exchange the Capital Securities in whole (but
not in part) into or for another series of its capital securities having
effectively, from a financial point of view, materially the same terms as the
Capital Securities, except that such capital securities may have a
non-cumulative character and may or may not have an alternative interest
satisfaction mechanism. Any conversion or exchange of the Capital Securities
into another series of capital securities as described herein will be made on
not less than 30 nor more than 60 days’ notice before the applicable conversion
date to the holders of the Capital Securities and the Trustee. The Company is
permitted to satisfy its obligation to pay any Mandatorily Deferred Payment or
Optionally Deferred Payment due upon conversion or exchange or thereafter only
in accordance with the Alternative Interest Satisfaction Mechanism pursuant to
Article 4. To the extent such Deferred Interest Payments are not satisfied at
the time of conversion or exchange, such new series of capital securities shall
preserve any existing rights under the Capital Securities to any Deferred
Interest Payment or any other accrued interest which has not been satisfied.

Prior to the publication of any notice of conversion
or exchange pursuant to the foregoing provisions, the following conditions shall
be satisfied: (i) the Company shall first deliver to the Trustee a certificate,
signed by a duly authorized officer of the Company, certifying that the
securities to be offered on conversion or in exchange for the Capital
Securities have effectively, from a financial point of view, materially the
same terms as the Capital Securities and (ii) to the extent that distributions
on the Capital Securities are eligible to be treated as “qualified dividend
income” for U.S. Federal income tax purposes by a particular holder immediately
prior to the conversion or exchange date, dividends paid to such holder with
respect to the securities will be so eligible.

3.5                               Notice of Redemption

Before the Company may redeem the Capital Securities,
it must give not less than 30 nor more than 60 days’ notice before the
applicable redemption date to the Trustee and holders thereof. Any notice of
redemption is irrevocable and must be given in accordance with Sections 1102
and 1104 of the Base Indenture.  If the
redemption price in respect of the Capital Securities is improperly withheld or
refused and is not paid by the Company, interest on the Capital Securities will
continue to be payable until the redemption price is actually paid.

3.6                               Substitution Event

If at any time a Substitution Event has occurred and
is continuing, subject to compliance with applicable regulatory requirements,
the Company may cause substitution of all, but not part, of the Capital
Securities for another series of capital securities having effectively, from a
financial point of view, materially the same terms as the Capital Securities,
except that such securities may have a non-cumulative character and may or may
not have an alternative interest satisfaction mechanism. Any substitution of
another series of capital securities for the Capital Securities as described
herein will be made on not less than 30 nor more than 60 days’ notice before
the applicable substitution date to the holders of the Capital Securities and
the Trustee. To the extent any Deferred Interest Payments are not

 15
 

satisfied at the time of substitution, such new series
of capital securities shall preserve any existing rights under the Capital
Securities to any Deferred Interest Payments or any other accrued interest
which has not been satisfied.

Prior to the publication of any notice of substitution
pursuant to the foregoing provisions, the following conditions shall be
satisfied: (i) the Company shall first deliver to the Trustee a certificate,
signed by a duly authorized officer of the Company, certifying that the
securities to be offered in substitution for the Capital Securities have
effectively, from a financial point of view, materially the same terms as the
Capital Securities and (ii) to the extent that distributions on the Capital Securities
are eligible to be treated as “qualified dividend income” for U.S. Federal
income tax purposes by a particular holder immediately prior to the conversion
or exchange date, dividends paid to such holder with respect to the securities
will be so eligible.

3.7                               Purchases

The Company may purchase on the open market at any
time Capital Securities in any manner and at any price. Purchased Capital
Securities may be held, resold or, at its option, cancelled, as provided in
Section 3.7.

3.8                               Cancellation

Cancellation of any Capital Securities so redeemed by
the Company will be effected by reducing the principal amount of the Global
Securities, and any Capital Securities so cancelled may not be reissued or
resold and the Company’s obligations in respect of any such cancelled Capital
Securities will be discharged.

3.9                               Intention to Replace

If the Company redeems Capital Securities for any
reason in accordance with this Article 3, the Company or its subsidiaries
intend to have raised funds in the six (6) months preceding such redemption
through the issuance, in an aggregate amount at least equal to the aggregate
principal amount outstanding of the relevant series of Capital Securities, of
any class of shares or any class of securities, the conditions of which are substantially
similar to the Capital Securities so replaced in relation to maturity,
settlement, deferral of payments and replacement, such that these shares or
securities have at least the same equity-like characteristics.

4.                                      ALTERNATIVE INTEREST SATISFACTION MECHANISM

4.1                               General

The Company must satisfy any Mandatorily Deferred
Payments and any Optionally Deferred Payments (with any interest accrued
thereon, as applicable) using proceeds raised by the Alternative
Interest Satisfaction Mechanism. In addition, the Company may elect
at any time to satisfy its obligation to make any other Payment (other than a
payment of principal) to holders of Capital Securities by using the Alternative
Interest Satisfaction Mechanism.

4.2                               Notice
of Exercise of Alternative Interest Satisfaction Mechanism

If
the Company uses the Alternative Interest Satisfaction Mechanism, it will
notify the Trustee not less than 16 Business Days prior to the relevant
Interest Payment Date or Deferred Interest Satisfaction Date.

 16

4.3                               Issue of Payment Capital Securities

If the Company satisfies any Payment in accordance
with the Alternative Interest Satisfaction Mechanism then, subject to the
conditions in Sections 4.5 and 4.7, the following shall occur.

(a)                                 By close of business on or before the seventh Business Day prior to the
relevant Interest Payment Date or Deferred Interest Satisfaction Date the
Company shall have authorized for issue such number or amount of Payment
Capital Securities as, in its determination, have a market value (after
conversion from euro into U.S. dollars, if applicable) of not less than the
relevant Payment to be satisfied.

(b)                                If, after the operation of the above procedures, there would, in the
Company’s opinion, be a shortfall on the date on which the relevant Payment is
due, the Company shall issue further Payment Capital Securities to ensure that
a sum at least equal to the relevant Payment is available to make the Payment
in full on the relevant due date, provided that if, despite these efforts, such
a shortfall exists on the relevant due date the Company shall continue to issue
Payment Capital Securities until the Trustee shall have received funds equal to
the full amount of such shortfall.

4.4                               Receipt of Cash Proceeds in Respect of Issue of Payment Capital
Securities to be Used to Satisfy Payment

If the Company elects or if it is required to make a
Payment hereunder by using the proceeds of an issue of Payment Capital
Securities, and, in accordance with its obligations under this Indenture,
issues such Payment Capital Securities, the Company shall, subject to Section
2.4(g), use the cash proceeds the Company receives on the sale of the Payment
Capital Securities to satisfy the relevant Payment or, as the case may be, the
relevant part of such Payment. The Company will transfer the cash proceeds (or
such amount of cash proceeds as is necessary (after conversion from euro to
U.S. dollars) to make the relevant Payment) to the Paying Agent on the Business
Day preceding the relevant payment date for payment by the Paying Agent, on the
relevant payment date, towards the relevant Payments to be satisfied.  The Paying Agent shall pay to the holders of
Capital Securities the proceeds of the sale of Payment Capital Securities in
respect of the relevant Payment.

4.5                               Market Disruption

(a)                                 Notwithstanding the provisions of Section 4.3, if, in the Company’s
opinion, a Market Disruption Event exists on or after the 15th Business Day
preceding any date upon which a Payment or part thereof is due to be made or
satisfied using the Alternative Interest Satisfaction Mechanism, then the
Company may give notice to the Trustee and the holders of Capital Securities as
soon as possible after the Market Disruption Event has arisen or occurred,
whereupon the relevant Payment will be deferred until such time as, in the
Company’s opinion, the Market Disruption Event no longer exists.

(b)                                Any such Deferred Interest Payment or part thereof will be satisfied as
soon as practicable after the Market Disruption Event no longer exists. The
Company shall notify the Trustee of the date on which such Deferred Interest
Payment or part thereof will be satisfied and the Trustee shall provide notice
to the Company of the amount of any Accrued Interest Payments, if any, payable
in connection with such Deferred Interest Payment.  The Company shall then notify the Paying
Agent and the holders of the Capital Securities in accordance with Section 106
of the Base

 17
 

Indenture of the date on which such Deferred
Interest Payment or part thereof will be satisfied and the amount of any
Accrued Interest Payments, if any, payable in connection with such Deferred
Interest Payment.

(c)                                 Except as provided in the next sentence, interest will not accrue on
such Deferred Interest Payment or part thereof, however, during a Market
Disruption Event. If the Company does not make the relevant Payment or part
thereof for a period of 14 days or more after its due date, even if the Market
Disruption Event is continuing, interest will accrue on such Deferred Interest
Payment or part thereof from (and including) the date on which the relevant
Payment or part thereof was due to be made to (but excluding) the date on which
such Payment or part thereof is made. Any such interest shall accrue at the
Interest Rate and shall be satisfied only in accordance with the Alternative
Interest Satisfaction Mechanism pursuant to this Article 4 and as soon as
reasonably practicable after the relevant Deferred Interest Payment is made. No
liability will attach to the Trustee or its agents if, as a result of a Market
Disruption Event or any other event outside the control of the Trustee or any
such agent, the Trustee or any such agent is unable to comply with its duties
in connection with any payment made pursuant to the Alternative Interest
Satisfaction Mechanism.

4.6                               Certification to Trustee

The Company shall certify to the Trustee that the
proceeds used to make any Mandatorily Deferred Payments or Optionally Deferred
Payments have been funded through the issue of Payment Capital Securities that
will provide the cash amount due in respect of the Mandatorily Deferred
Payments or Optionally Deferred Payments.

4.7                               Limitations in Connection with the Alternative Interest Satisfaction
Mechanism

The Company may, for purposes of satisfying any
Deferred Interest Payment in accordance with the Alternative Interest
Satisfaction Mechanism, only sell such number of Payment Capital Securities in
any 12-month period (a) as, in the case of Common Shares, does not exceed 2% of
the Company’s Common Shares outstanding on the relevant date, or (b) in the
case of Non-callable Securities, the aggregate principal amount of which does
not exceed (i) 2% of the value of the Company’s Shareholders’ Equity as per the
Company’s audited consolidated balance sheet as at December 31 for the fiscal
year immediately preceding such issuance and (ii) 25% of the aggregate
principal amount of the Capital Securities issued hereunder. For the avoidance
of doubt, any Deferred Interest Payments not satisfied shall not be cancelled
but remain outstanding and become due and payable at redemption or in the
Company’s winding-up (faillissement or verefeening na ontbinding); provided, however, that the
Company’s obligations in respect of an amount of principal under the Capital
Securities equal to the unsatisfied part of any Deferred Interest Payments
shall be further subordinated as described in Section 10.1 below.

4.8                               Alternative Interest Satisfaction Mechanism Period

The Company will use its best efforts to satisfy any
Deferred Interest Payment within five years (the Alternative
Interest Satisfaction Mechanism Period) following the relevant
Deferred Interest Satisfaction Date by way of the Alternative Interest
Satisfaction Mechanism Period as described in and subject to the provisions of
this Article 4. If at the end of any Alternative Interest Satisfaction
Mechanism Period in respect of any Deferred Interest Payment the Company has
been unable to satisfy such Deferred Interest Payment in full by way of the
Alternative Interest Satisfaction Mechanism, the

 18
 

Company’s obligations to satisfy such Deferred
Interest Payment or part thereof will continue to exist, subject to Section
2.4(g), Article 6 and Article 10.

5.                                      REMEDIES

5.1                               Defaults; Collection of Indebtedness and Suits for Enforcement by
Trustee

(a)                                 Payment Default, whenever used
herein with respect to the Capital Securities, means solely the following event
(regardless of the reason for the Payment Default and whether it is voluntary,
involuntary or is effected by operation of law pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or
governmental body):

the Company fails to pay or set aside for payment the
amount due to satisfy any payment on the Capital Securities when due, and such
failure continues for 14 days; provided that a Payment Event shall not
constitute a Payment Default.

(b)                                If a Payment Default occurs and is continuing with respect to the
Capital Securities, the Trustee may pursue all legal remedies available to it
including judicial proceedings in the Netherlands (but not elsewhere) for the
collection of the sums due and unpaid or its winding-up (faillissement or vereffening na ontbinding), but the
Trustee may not declare the principal amount of any outstanding Capital
Security to be due and payable.

(c)                                 A Payment Event (and not a
Payment Default) shall occur if at the end of the 14-day period set forth in
Section 5.1(a) the Company fails to make such payment as a result of the
existence of a Required Deferral Condition.

If a Payment Event occurs
and is continuing, the Trustee may institute winding-up proceedings (faillissement or vereffening na ontbinding) exclusively in
the Netherlands, but may not pursue any other legal remedy, including a
judicial proceeding for the collection of the sums due and unpaid.

(d)                                In the case of a Mandatory Payment Event or Mandatory Partial Payment
Event, requiring payment of Interest on a succeeding Interest Payment Date, if
the Company fails to make such mandatory payment of Interest as a result of:

(i)                                    the existence of a Required Deferral Condition; or

(ii)                                 a deferral of an Interest Payment as permitted under the terms of the
Indenture,

the relevant Interest Payment due on the Capital
Securities shall constitute an Outstanding Payment and will accumulate with any
other Outstanding Payments until paid and will constitute neither a Payment
Default nor a Payment Event.

(e)                                 Subject to the provisions of this Section 5.1, and without prejudice to
Sections 504 and 505 of the Base Indenture, the Trustee may at its discretion
and without further notice institute such proceedings against the Company as it
may think fit to enforce any term or condition binding on the Company under the
Indenture, the Capital Securities (other than for the payment of any principal
or satisfaction of any Payments in respect of the Capital Securities); provided
that the Company will not by virtue of the institution of any such proceedings
be obliged to pay any sum or sums, in cash or otherwise, sooner than it would
otherwise have been obligated to pay.

 19
 

(f)                                  The Trustee shall not be bound to take any of the foregoing actions
against the Company to enforce the terms of this Indenture or the Capital
Securities unless (i) it will have been so requested by an extraordinary
resolution or in writing by the holders of at least 25% in principal amount of
the Capital Securities then outstanding and (ii) it will have been offered
reasonable security or indemnity satisfactory to it against the costs, expenses
and liabilities which might be incurred by it in compliance with such request.

(g)                                Notwithstanding the foregoing, holders of the Capital Securities have
the absolute and unconditional right to institute suit for the enforcement of
any payment when due in accordance with Section 508 of the Base Indenture and
such right may not be impaired without the consent of the holder.

(h)                                Without prejudice to Sections 504 and 505 of the Base Indenture, the
Trustee is and shall be fully authorized by each and any holder of record of a
Capital Security to commence winding-up proceedings (faillissement or vereffening
na ontbinding) in the Netherlands.

(i)                                    Notwithstanding the foregoing, the right to institute winding-up
proceedings (faillissement or vereffening na ontbinding) is limited to
circumstances where payment has become due.

(j)                                    Sections 501, 502 and 503 of the Base Indenture shall not apply with
respect to the Capital Securities.

6.                                      SUBORDINATION

6.1                               Agreement to Subordinate

The Company covenants and agrees, and each holder of
Capital Securities issued hereunder, by such holder’s acceptance thereof,
likewise covenants and agrees, that the Capital Securities issued hereunder
(i)(A) shall rank pari passu with respect to each other, (B) shall be similarly
subordinated as, and accordingly rank pari passu with, the Existing Capital
Securities and (C) shall rank pari passu with other Parity Securities, Parity
Guarantees and other debt obligations expressed to be similarly subordinated as
and, accordingly, ranking pari passu with, the Capital Securities, such other Parity
Guarantees and Parity Securities, (ii) are and shall be subordinated (achtergesteld), and accordingly be subject in right of
payment to prior payment in full upon liquidation, moratorium of payments or
bankruptcy of the Company, to the claims of Senior Creditors, present and
future, and (iii) shall rank in priority to any Junior Securities and Junior
Guarantees.

6.2                               Section 1401 of the Base Indenture

With respect to the Capital Securities, the provisions
of Section 6.1 replace in their entirety Section 1402 of the Base Indenture. In
addition, with respect to the Capital Securities, Section 1402 through Section
1416 of Article Fourteen of the Base Indenture is hereby amended by replacing
the term “Senior Debt” as used in such sections with the term “Senior Debt” as
defined in this Sixth Supplemental Indenture.

 20
 

7.                                      COVENANTS OF THE COMPANY

7.1                               Mandatory Interest Payments

Subject to the existence of a Required Deferral
Condition, the Company agrees that it will not defer any payment required to be
paid as a result of a Mandatory Payment Event or Mandatory Partial Payment
Event (as contemplated by Section 2.5(a) only) on the Capital Securities.

7.2                               Payment of Proceeds from Sale of Payment Capital Securities in
Connection with the Alternative Interest Satisfaction Mechanism

The Company agrees that immediately on receipt of the
proceeds of the sale of Payment Capital Securities in connection with the
Alternative Interest Satisfaction Mechanism, it shall pay proceeds from the
sale of such Payment Capital Securities to the Paying Agent, either in Euros or
converted into U.S. dollars, in such amount as shall enable the Paying Agent to
make the relevant Payment in full on the relevant Interest Payment Date or
Deferred Interest Satisfaction Date.

7.3                               Listing

The Company will use reasonable efforts to maintain
the listing of the Capital Securities on the stock exchange on which they were
listed on or about the Issue Date or, if it is unable to do so having used such
efforts or if the maintenance of any such listing is agreed by the Trustee to
be unduly burdensome, use all reasonable efforts to obtain and maintain a
quotation or listing of Capital Securities on such other stock exchange or
exchanges or securities market or markets as the Company may (with the prior
written approval of the Trustee) decide so that the Capital Securities are
listed on at least one stock exchange or securities market.

7.4                               Officer’s Certificate on Deferral

If the Company elects or is obliged to defer any
Payment in accordance with Section 2.4, it shall deliver to the Trustee, no
later than the sixteenth Business Day preceding the relevant Interest Payment
Date, an Officer’s Certificate, certifying that the Required Deferral Condition
was met on the 20th Business Day preceding the relevant Interest Payment Date
and if the Company shall elect to satisfy a deferred Interest Payment on an
earlier date than the Interest Payment Date following that on which the
Required Deferral Condition is no longer met, deliver to the Trustee not later
than the sixteenth Business Day prior to making such payment an Officer’s
Certificate certifying that the Required Deferral Condition was no longer, on a
date no more than 16 Business Days prior to the delivery of such certificate,
met.

7.5                               Officer’s Certificate on Market Disruption Event

If, in the opinion of the Company, there exists a
Market Disruption Event as a consequence of which a Payment may be deferred
under Section 4.5, it shall deliver to the Trustee within two Business Days of
such Market Disruption Event having arisen or the Company having become aware
of the same, an Officer’s Certificate specifying the details of such Market
Disruption Event.

 21
 

8.                                      FORM OF CAPITAL SECURITIES

8.1                               Form of Capital Securities

The Capital Securities shall be substantially in the
form of Schedule 1 hereto. Schedule 1 hereto is hereby incorporated into and
expressly made a part of this Sixth Supplemental Indenture.

9.                                      ORIGINAL ISSUE OF CAPITAL SECURITIES

9.1                               Original Issue of Capital Securities

Capital Securities in the initial aggregate principal
amount of up to $1,000,000,000
may, upon execution of this Sixth Supplemental
Indenture, be executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver such
Capital Securities to or upon the written order of the Company, in accordance
with Section 303 of the Base Indenture.

There is no limit on the amount of Capital Securities
which may be issued subsequent to this Sixth Supplemental Indenture.

10.                               WINDING UP

10.1                        Winding Up

If at any time an order is made, or an effective
resolution is passed, for the Company’s winding-up (faillissement or vereffening
na ontbinding) (except in any such case a solvent winding-up solely
for the purpose of a reconstruction, amalgamation or the substitution of a
successor in business, the terms of which reconstruction, amalgamation or
substitution (a) have previously been approved in writing by the Trustee or by
an extraordinary resolution of the Company’s shareholders and (b) do not
provide that the Capital Securities shall thereby become payable), the Company
will pay the holders of the Capital Securities in respect of each Capital
Security (in lieu of any other payment by the Company) a winding-up amount. The
Capital Securities will rank in the Company’s winding-up (faillissement or vereffening na ontbinding) in priority to
distributions on Junior Securities, Junior Guarantees and all classes of the
Company’s share capital and will rank equally with each other and among
themselves and will rank equally with any Parity Securities and Parity
Guarantees, including the Company’s Existing Capital Securities, then
outstanding, but will be subordinated in right of payment to the prior payment
in full of the claims of the Company’s Senior Creditors, present and future.

In the Company’s winding-up (faillissement
or vereffening na ontbinding), to
the extent the Company has not been able to satisfy in full any Deferred
Interest Payment using the Alternative Interest Satisfaction Mechanism as a
result of the limitation imposed by the threshold as described under Section
4.7, the obligations of the Company in respect of an amount of principal under
the Capital Securities equal to the unsatisfied part of any Deferred Interest
Payments shall be further subordinated to rank effectively, from a financial
point of view, equally with Common Shares.

 22
 

11.                               SATISFACTION AND DISCHARGE

11.1                        Satisfaction and Discharge

The Company covenants and agrees, and each holder of
Capital Securities issued hereunder, by such holder’s acceptance thereof,
likewise covenants and agrees, that all Capital Securities shall be issued as
Securities subject to the provisions of Article 4 of the Base Indenture.

12.                               TAXATION; ADDITIONAL AMOUNTS

12.1                        General

Any amounts to be paid by the Company on the Capital
Securities (including principal, Interest Amounts, Mandatorily Deferred
Payments or Optionally Deferred Payments, Mandatory Partial Payments, Accrued
Interest Payments and Winding-Up Claims) shall be made without withholding of
or deduction for any present or future taxes, duties, assessments or other
charges imposed by the government of the Netherlands or the government of a
jurisdiction in which a successor to the Company is organized, unless the
withholding or deduction of such taxes, duties, assessments or charges is
required by law. In that event, the Company will pay such additional amounts (Additional Amounts), as may be necessary in
order that the net amounts received by holders of Capital Securities after such
withholding or deduction equal the respective amounts of principal and interest
which would have been received in respect of the Capital Securities in the
absence of such withholding or deduction, except that no such Additional
Amounts shall be payable in relation to any payment with respect to any Capital
Security:

(a)                                 to, or to a third party on behalf of, a holder who is liable to such
taxes, duties, assessments or governmental charges in respect of such Capital
Security by reason of such holder having some connection with the Netherlands
other than the mere holding of such Capital Security; or

(b)                                to, or to a third party on behalf of, a holder, if such withholding or
deduction may be avoided by complying with any statutory requirement or by
making a declaration of non-residence or other similar claim for exemption to
the relevant tax authority; or

(c)                                 to, or to a third party on behalf of, a holder, that is a partnership,
or a holder, that is not the sole beneficial owner of the Capital Security or
which holds the Capital Security in a fiduciary capacity, to the extent that
any of the members of the partnership, the beneficial owner or the settler or
beneficiary with respect to the fiduciary would not have been entitled to the
payment of an Additional Amount had each of the members of the partnership, the
beneficial owner, settler or beneficiary, as the case may be, received directly
his beneficial or distributive share of the payment; or

(d)                                presented for payment (where presentation is required) more than 30 days
after the Relevant Date except to the extent that the holder would have been
entitled to such Additional Amounts on presenting the same for payment on the
last day of such period of 30 days; or

(e)                                 where such withholding or deduction is imposed on a payment to an
individual and is required to be made pursuant to the European Union Council
Directive of June 3, 2003 on the taxation of savings income, implementing the
conclusions of the ECOFIN Council meeting of November 26-27, 2000 or any law
implementing or complying with, or introduced in order to conform to such
Directive, or similar measures adopted by a number of third countries and
territories.

 23
 

In the event that any Payment is satisfied through the
Alternative Interest Satisfaction Mechanism, then any Additional Amounts that
are payable must also be satisfied through the issue of Payment Capital
Securities.

References herein to principal, Interest Amounts,
Mandatorily Deferred Payments, Optionally Deferred Payments, Mandatory Partial
Payments and/or Accrued Interest Payments shall be deemed to include any
Additional Amounts that may be payable, if applicable.

12.2                        Section 1006 of the Base Indenture

The provisions of Section 1006 of the Base Indenture
are hereby replaced by Section 12.1 hereof and shall not apply with respect to
the Capital Securities.

13.                               MISCELLANEOUS

13.1                        Issuance of Definitive Securities

(a)                                 So long as DTC holds the Global Securities, the Global Securities will
not be exchangeable for definitive Securities unless: (i) DTC notifies the
Trustee that it is unwilling or unable to continue to hold the book-entry
Capital Securities or DTC ceases to be a clearing agency registered under the
Exchange Act and the Trustee does not appoint a successor to DTC which is
registered under the Exchange Act within 120 days; (ii) a Payment Default has
occurred and is continuing; (iii) a Payment Event has occurred; (iv) in the
event of the Company’s winding up (faillissement
or vereffening na ontbinding)
it fails to make a Payment on the Capital Securities when due; or (v) at any
time following a determination by the Company in its sole discretion that the
Global Securities representing the Capital Securities should be exchanged for
definitive Capital Securities in registered form.

(b)                                Each person having an ownership or other interest in the Capital
Securities must rely exclusively on the rules and procedures of DTC or any
participant therein, as the case may be, and any agreement with any participant
of DTC or any participant therein, as the case may be, or any other securities
intermediary through which that person holds its interest to receive or direct
the delivery of possession of any definitive security.

(c)                                 Any definitive Capital Securities will be issued in registered form only
in denominations of $25.00 and any integral multiples thereof and shall be
substantially in the form of the Global Security included as Exhibit 1 hereto
with such insertions, omissions, substitutions and other variations as
appropriate for definitive securities as evidenced by the execution of such
securities. To the extent permitted by law, the Company and the Trustee are
entitled to treat the person in whose name any definitive Capital Security is
registered as its absolute owner.

(d)                                Payments in respect of definitive Capital Securities will be made to the
person in whose name the definitive Capital Securities are registered as it
appears in the register. Payments will be made in respect of the Capital
Securities by check drawn on a bank in New York or, if the holder requests, by
transfer to the holder’s account in New York. Definitive Capital Securities
must be presented to the Paying Agent for redemption.

(e)                                 If the Company issues definitive Capital Securities in exchange for
Global Securities, DTC, as holder of the Global Securities, will surrender it
against receipt of the definitive Capital

 24
 

Securities, cancel the book-entry securities of
that series and distribute the definitive Capital Securities of that series to
the person in the amounts that DTC specifies.

(f)                                   If definitive Capital Securities are issued in the limited circumstances
as set forth above, such Capital Securities may be transferred in whole or in
part in denominations of any whole number of Capital Securities upon surrender
of the definitive Capital Securities certificates together with the form of
transfer endorsed on it, duly completed and executed at the specified office of
the Trustee. If only part of a Capital Securities certificate is transferred, a
new Capital Securities certificate representing the balance not transferred
will be issued to the transferor.

13.2                        Ratification of Base Indenture; Sixth Supplemental Indenture Controls

The Base Indenture, as supplemented by this Sixth
Supplemental Indenture, is in all respects ratified and confirmed. This Sixth
Supplemental Indenture shall be deemed part of the Base Indenture in the manner
and to the extent herein and therein provided. The provisions of this Sixth
Supplemental Indenture shall supersede the provisions of the Base Indenture to
the extent the Base Indenture is inconsistent herewith with respect to the
Capital Securities and any other Capital Securities issued hereunder.

13.3                        Trustee Not Responsible for Recitals

The recitals contained herein are made by the Company
and not by the Trustee, and the Trustee assumes no responsibility for the
accuracy thereof. The Trustee makes no representation as to the validity or
sufficiency of this Sixth Supplemental Indenture or the Capital Securities. The
Trustee shall not be accountable for the use or application by the Company of the
Capital Securities or the proceeds thereof.

13.4                        Governing Law

This Sixth Supplemental Indenture and each Capital
Security shall be governed by and construed in accordance with the laws of the
State of New York, except for Article 6 and Article 10, to the extent it
relates to subordination, which shall be governed by and construed in
accordance with the laws of the Netherlands.

13.5                        Severability

If any provision in the Indenture or in the Capital
Securities is determined to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

13.6                        Counterparts

The parties may sign any number of copies of this
Sixth Supplemental Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. Any signed copy shall be sufficient
proof of this Sixth Supplemental Indenture.

13.7                        Paying Agent

The parties agree that Citibank, N.A., as Paying
Agent, shall be entitled to the benefit of all the rights, protections,
privileges and immunities, as applicable, contained in the Indenture with
respect to the Trustee, as if set forth herein.

 25
 

14.                               DEFINITION OF OFFICERS’ CERTIFICATE AMENDED

The definition of “Officers’ Certificate” in Section
101 of the Base Indenture is hereby amended by deleting the first occurrence of
the word “and” from the second line of the first sentence of the definition and
replacing it with the word “or.”

 26

IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be
duly executed as of the day and year first above written.

	
  

  	
  AEGON N.V.

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  C.M. van Katwijk

  	
   

  
	
   

  	
   

  	
  Name: C.M. van Katwijk

  	
   

  
	
   

  	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A.

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  Roxane Ellwanger

  	
   

  
	
   

  	
   

  	
  Name: Roxane Ellwanger

  	
   

  
	
   

  	
   

  	
  Title: Assistant Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIBANK, N.A.

  
	
   

  	
  as Paying Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
            /s/
  John J. Byrnes

  	
   

  
	
   

  	
   

  	
  Name: John. J. Byrnes

  	
   

  
	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

 

SCHEDULE 1

FORM OF 7.25% PERPETUAL CAPITAL SECURITIES

THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

The
rights of the holders of the Capital Securities are, to the extent and in the
manner set forth in Section 1402 of the Base Indenture and Article 6 of the
Sixth Supplemental Indenture, subordinated to Senior Debt, and this Security is
issued subject to the provisions of Article 14 of the Base Indenture and
Article 6 of the Sixth Supplemental Indenture, and the holder of this Security,
by accepting the same, agrees to and shall be bound by such provisions. The
terms of this paragraph are governed by, and shall be construed in accordance
with, the laws of the Netherlands.

AEGON N.V.

7.25% Perpetual Capital Securities

	
  No. [  ]

  	
   

  
	
  CUSIP No.:

  	
  N00927 348

  
	
  ISIN No.:

  	
  NL0006056814

  
	
  COMMON CODE:

  	
  032249221

  

 

AEGON N.V., a corporation duly organized and existing
under the laws of the Netherlands (herein called the Company,
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to CEDE & Co., or
registered assigns, the principal sum of [·] MILLION
U.S. DOLLARS ($[·])
(but only at such times as set forth in the Indenture with respect to Optional
Redemption, Redemption for Tax Reasons or Redemption or Conversion for
Regulatory Reasons in Article 3 of the Sixth Supplemental Indenture) and to pay
interest thereon from September 21,
2007 or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, quarterly in arrears on March 15, June 15, September
15 and December 15  in each year,
commencing on December 15, 2007, and at such other times as are set forth in
the Indenture at the rate of 7.25% per annum, until the principal hereof is paid
or made available for payment. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the March 1, June 1, September 1
or December 1 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. If interest is required to be calculated
for any period less than a year, it shall be calculated based on a 360-day year
consisting of twelve 30-day months. If any Interest Payment Date or the
redemption date of the Capital Securities falls on a day that is not a Business
Day, the Company shall make the required payment on the next succeeding
Business Day and no additional Interest shall accrue in respect of the payment
made on that next succeeding Business Day.

Subject
to the immediately following paragraph, if applicable, any Payment on this
Security which is payable, and is paid or duly provided for, on any Interest
Payment Date or on any date on which the Company makes any Payment (including
any payment of Additional Amounts in accordance with Article 12 of the Sixth

 1
 

Supplemental
Indenture) shall be paid in U.S. dollars to the registered holder, including
through a Paying Agent by wire-transfer of same-day funds to the holder or, at
the option of the Company, by check mailed to the address of the holder as it
appears in the Company’s Security Register. For so long as this Security is
held in global form, all payments shall be made in U.S. dollars by
wire-transfer of same-day funds.

The
Company shall under certain circumstances, and in accordance with the
Indenture, defer payments of interest on this Security. Any interest on this
Security which is not paid or duly provided for on any applicable Interest
Payment Date, together with any other payments in respect of this Security not
paid on any date on which such Payment has become due and payable or would have
become due and payable except that payment is not made as permitted by the
Indenture, so long as the same remains unpaid, shall constitute “Outstanding
Payments.” Outstanding Payments will accumulate until paid and will constitute
neither a Payment Default nor a Payment Event. Outstanding Payments on this
Security, when paid, as provided subject to the conditions in the Indenture,
will be paid on the Deferred Interest Satisfaction Date to the holder in whose
name this Security is registered at the close of business on a Special Record
Date for the Payment due on such Deferred Interest Satisfaction Date to be
fixed by the Trustee, notice of which shall be given to holders of the Capital
Securities not less than 10 days prior to such Special Record Date, or be paid
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which this Security may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the
Indenture.

Outstanding
Payments, other than certain Accrued Interest Payments, shall not bear interest.  Certain Accrued Interest Payments will accrue
interest at the Interest Rate. The amount of interest so accrued in respect of
any Accrued Interest Payments, if any, will be satisfied as and when the
Outstanding Payments are satisfied in accordance herewith. The amount of
additional interest payable with respect to any Accrued Interest Payments, if
any, will be calculated by the Trustee in accordance with the provisions of the
Indenture.

Except
in the case of a Mandatory Payment Event or a Mandatory Partial Payment Event,
the Company may satisfy any Optionally Deferred Payment at any time on not less
than 16 Business Days’ notice to the Trustee and holders in accordance with the
Sixth Supplemental Indenture, and any Required Deferral Interest Payment shall
be satisfied on the relevant Deferred Interest Satisfaction Date, by giving not
less than 16 Business Days’ notice to the Trustee and holders, if the Required
Deferral Condition is no longer met on the 20th Business Day preceding any
subsequent Interest Payment Date, provided that the Company has not previously
paid such amount and does not validly elect to defer such payment as an
Optionally Deferred Payment.

Reference
is hereby made to the further provisions of this Security set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if set forth at this place.

Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

 2

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed.

	
  

  	
  AEGON N.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Attest:

This is one of the Capital Securities of the series
designated herein and referred to in the Sixth Supplemental Indenture.

Dated: September    , 2007

	
  

  	
  The Bank of New York Trust Company, N.A.

  
	
   

  	
         As Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

[Reverse
of Security]

This Security is one of a duly authorized issue of
securities of the Company (herein called the Capital
Securities), issued and to be issued in one or more series under an
indenture, dated as of October 11, 2001 (the Base
Indenture), between the Company, AEGON Funding Corp. and The Bank of
New York Trust Company, N.A., as Trustee and successor in interest to Citibank,
N.A. (herein called the Trustee, which
term includes any successor trustee under the Indenture), as modified by a
supplemental indenture dated as of November 14, 2003, a second supplemental
indenture dated as of June 1, 2005, a third supplemental indenture dated as of
November 23, 2005, a fourth supplemental indenture dated as of December
12, 2005, and a fifth supplemental indenture dated as of June 28, 2006, and as
shall be further modified by a Sixth Supplemental Indenture dated September 21,
2006 (herein called the Sixth Supplemental
Indenture and together with the Base Indenture, the Indenture), and reference is hereby made to the Indenture
for a statement of the terms of the Capital Securities and the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee, the holders of Senior Debt and the holders of the Capital Securities
and of the terms upon which the Capital Securities are, and are to be,
authenticated and delivered. The Capital Securities are subject to all such
terms. This Security is one of the series designated on the face hereof and
there is no limitation on the amount of Capital Securities of such series which
may be issued.

Except in a bankruptcy, all payments on this Security
will be conditional upon not triggering the Required Deferral Condition.  The Required Deferral
Condition will be met if the Company (i) is not Solvent or making
the relevant Payment will result in the Company becoming not Solvent or (ii) is
subject to a Regulatory Event or making the relevant Payment will result in the
Company becoming subject to a Regulatory Event.

The Capital Securities will constitute direct,
unsecured subordinated obligations of the Company, subject to the Solvency
Conditions, and the subordination provisions described herein and in the
Indenture, and will rank pari passu with respect to each other and any other
Parity Securities or Parity Guarantees and in priority to any Junior Securities
or Junior Guarantees.

If the Company fails to pay or set aside for payment
the amount due to satisfy any Payment on the Capital Securities when due and
such failure continues for 14 days, it will constitute a Payment
Default (provided, however, that if the Company fails to make any
payment of interest required to be paid as a result of a Mandatory Payment
Event or Mandatory Partial Payment Event as a result of the existence of a
Required Deferral Condition, or due to a deferral of an Interest Payment as
permitted under the terms of the Indenture, that payment will constitute an
Outstanding Payment and will accumulate with any other Outstanding Payments
until paid, but will constitute neither a Payment Default nor a Payment Event
(as defined below)). If any Payment Default occurs and is continuing, the
Trustee may pursue all legal remedies available to it, including commencing a
judicial proceeding for the collection of the sums due and unpaid or the
winding-up (faillissement or vereffening na ontbinding) of the Company
in the Netherlands (but not elsewhere), but the Trustee may not declare the
principal amount of any outstanding Capital Securities to be due and payable.
If the Company fails to make payment when due, and such failure continues for
14 days as a result of the existence of a Required Deferral Condition, such
failure does not constitute a Payment Default but instead constitutes a Payment Event.  On a
Payment Event, the Trustee may institute winding-up proceedings (faillissement or vereffening na ontbinding) exclusively in
The Netherlands, but may not pursue any other legal remedy, including a
judicial proceeding for the collection of the sums due and unpaid.  The Trustee shall not be bound to take any of
the foregoing actions against the Company to enforce the terms of the Indenture
or the Capital Securities unless (i) it will have been so requested by an
extraordinary resolution or in writing by the holders of at least 25% in principal
amount of the Capital Securities then outstanding and (ii) it will have been
offered reasonable security or indemnity satisfactory to it against the costs,
expenses and liabilities which might be incurred by it in

 1
 

compliance with such request.  Notwithstanding the foregoing, the right to
institute winding-up proceedings (faillissement
or vereffening na ontbinding)
is limited to circumstances where payment has become due.  Notwithstanding the foregoing, holders of
this Security have the absolute and unconditional right to institute suit for
the enforcement of any payment when due and such right may not be impaired
without the consent of the holder as provided in Section 508 of the Base
Indenture.

All payments in respect of the Capital Securities
shall be made by the Company without withholding of or deduction for any
present or future taxes, duties, assessments or other charges imposed by the
government of the Netherlands or the government of a jurisdiction in which a
successor to the Company is organized (or any political subdivision or taxing
authority thereof or therein) (Taxes), unless
the withholding or deduction of such Taxes is required by law. To the extent
any such Taxes are so levied or imposed, the Company will, subject to the
exceptions and limitations set forth in Section 12 of the Sixth Supplemental
Indenture, pay such Additional Amounts to the holder of any Security as may be
necessary in order that the net amounts received by holders of the Capital
Securities after such withholding or deduction equal the respective amounts of
principal and interest which would have been received in respect of the Capital
Securities in the absence of such withholding or deduction, except that no such
Additional Amounts shall be payable in relation to any payment with respect to
any Capital Security.

Except as provided below, the Capital Securities are
not redeemable at the option of the Company prior to December 15, 2012.

The Capital Securities may be redeemed in whole (but
not in part), at the option of the Company and without the consent of the
holders or the Trustee, at a redemption price equal to their aggregate
principal amount, together with any Outstanding Payments accrued to and
including the date fixed for redemption: (i) on December 15, 2012, or any
Interest Payment Date thereafter; (ii) upon the occurrence of a Tax Event,
provided that the Company has already delivered to the Trustee a written legal
opinion in a form satisfactory to the Trustee of independent Dutch counsel of
recognized standing, selected by the Company, confirming that a Tax Event has
occurred; or (iii) if, at any time after the Company becomes subject to Capital
Adequacy Regulations, the relevant regulator has determined that securities of
the nature of the Capital Securities cannot qualify as “own funds” or, if “own
funds” is subdivided into tiers, “core capital” (Tier 1 capital or equivalent)
for the purposes of determination of such Capital Adequacy Regulations.

Subject to compliance with applicable regulatory
requirements, the Company may at any time convert or exchange the Capital
Securities in whole (but not in part) into or for another series of its capital
securities having effectively, from a financial point of view, materially the
same terms as the Capital Securities, except that such capital securities may
have a non-cumulative character and may or may not have an alternative interest
satisfaction mechanism. Any conversion of the Capital Securities into another
series of capital securities as described herein will be made on not less than
30 nor more than 60 days’ notice before the applicable conversion date to the
holders of the Capital Securities and the Trustee.

If at any time a Substitution Event has occurred and
is continuing, subject to compliance with applicable regulatory requirements,
the Company may cause substitution of all, but not part, of the Capital
Securities for another series of capital securities having effectively, from a
financial point of view, materially the same terms as the Capital Securities,
except that such securities may have a non-cumulative character and may or may
not have an alternative interest satisfaction mechanism.

The indebtedness evidenced by this Security is, to the
extent provided in the Indenture, subordinate and subject in right of payment
to the prior payment in full of all claims of Senior Creditors, present and
future, and this Security is issued subject to the provisions of the Indenture
with respect thereto. Each holder of this Security, by

 2
 

accepting the same, (i) agrees to and shall be bound
by such provisions; (ii) authorizes and directs the Trustee on his or her
behalf to take such actions as may be necessary or appropriate to effectuate
the subordination so provided; and (iii) appoints the Trustee his or her
attorney-in-fact for any and all such purposes. Each holder hereof, by his or
her acceptance hereof, waives all notice of the acceptance of the subordination
provisions contained herein and in the Indenture by each holder of Senior Debt,
whether now outstanding or hereafter created, incurred, assumed or guaranteed,
and waives reliance by each such holder upon said provisions.

References herein to principal, Interest Amounts,
Mandatorily Deferred Payments, Optionally Deferred Payments, Mandatory Partial
Payments or Accrued Interest Payments shall be deemed to include any Additional
Amounts that may be payable, if applicable.

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the holders of the Capital
Securities of each series to be affected under the Indenture at any time by the
Company and the Trustee with the consent of the holders of a majority in
principal amount of the Capital Securities at the time outstanding of each
series to be affected. The Indenture also contains provisions permitting the
holders of a majority in principal amount of the Capital Securities of each
series at the time outstanding, on behalf of the holders of all Capital
Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the holder of this Security
shall be conclusive and binding upon such holder and upon all future holders of
this Security and of any Security issued upon the registration of transfer
hereof or in exchange therefor or in lieu hereof, whether or not notation of
such consent or waiver is made upon this Security.

No reference herein to the Indenture and no provision
of this Security or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the principal of and
any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Capital Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.

The Capital Securities of this series are issuable
only in registered form without coupons in denominations of $25.00 and any
integral multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, Capital Securities of this series shall be
represented by a Global Security and are not exchangeable for definitive
Capital Securities of this series except in specific circumstances set forth in
the Indenture.

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered
as the owner hereof for all purposes, whether or not this Security be overdue,
and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

 3
 

This Security is a Global Security and is subject to
the provisions of the Indenture relating to Global Securities, including the
limitations in Section 305 thereof on transfers and exchanges of Global
Securities.

This Security and the Indenture shall be governed by
and construed in accordance with the laws of the State of New York except for
the subordination provisions contained herein and in the Indenture, which shall
be governed by and construed in accordance with the laws of the Netherlands.

All terms used in this Security which are defined in
the Indenture shall have the meanings assigned to them in the Indenture.

 4Exhibit
10.1

PURCHASE
OF MEMBERSHIP INTERESTS

This Purchase
Agreement (the “Agreement”), dated as of the 17th day of Sept.,
2007, by and among VCG Holding Company, a Colorado corporation (“VCG”), or
their assigns (“Purchaser”), and Golden Productions JGC Fort Worth, LLC, a
Texas limited liability company, d/b/a Jaguar’s Gold Club Fort Worth
(hereinafter the “Business”), and Bryan S. Foster (hereinafter “Member” or “Seller’).

WHEREAS, the
Business operates an adult entertainment facility; and

WHEREAS, the Member
is the beneficial and record holder of all of the issued and outstanding units
of membership (the “Units”) of the Business, and Purchaser desires to purchase
the Units subject to and upon the terms of this Agreement; and

WHEREAS, the
Member desires to sell and Purchaser desires to purchase the Units of the
Member subject to and conditioned upon the terms of this Agreement; and

WHEREAS, the
Purchaser desires to purchase the physical structure located on the land where
the Business currently operates, and all contents thereto without the purchase
of the physical land underneath the building, and Member desires to sell the
building and contents thereto; and

WHEREAS, the
Purchaser desires to lease the ground underlying the building, and Member is or
will be the owner in fee simple of the land at the time of Closing.

NOW, THEREFORE, in
consideration of the foregoing and mutual representations, warranties and
covenants contained herein, the parties agree as follows:

ARTICLE I

Recitals

Section 1.1.            Recitals.                 The Recitals above are an
integral part of this Agreement and incorporated herein by reference as if
copied verbatim.

ARTICLE II

Purchase
and Sale

Section 2.1.            Purchase and Sale.               Purchaser shall purchase from
Member, and Member shall sell and transfer to Purchaser, all of his right,
title and interest in the Units of the Business, the building where the
Business is currently located, and the contents therein.

Section 2.2.            Purchase Price.     The total Purchase Price for the membership
interest and the building shall be Three Million Seven Hundred Thousand
($3,700,000.00), with One Million Nine Hundred Thousand ($1,900,000.00) Dollars
allocated for the purchase of the Member’s Units, and the remaining One Million
Eight

Hundred Thousand
($1,800,000.00) Dollars for the purchase of the building now housing Jaguar’s
Gold Club of Fort Worth, all contents contained therein, including
Improvements, Fixtures, and Personal Property as shown on Schedule 3.1 (a)(2),
excluding the ground where the building is currently located.

Section 2.3.            Earnest Money.    One Hundred and Fifty Thousand ($150,000.00)
Dollars has heretofore been placed in escrow for the closing of this
transaction, and such escrow account shall be part of the Purchase Price herein
described. In the event of breach of this Agreement solely in the part of
Purchaser, the escrow funds shall be paid to Member as satisfaction of any and
all damages. If Agreement is terminated pursuant to Article 12 hereof, then all
finds held in escrow shall be returned to Purchaser without claims, damages, or
setoff.

Section 2.4.            Closing.                 The closing of the purchase and
sale of the Units (the “Closing”) shall be held at a date and time to be agreed
upon among the parties, at the offices of United Title at 4880 Long Prairie, Suite
200, Flower Mound, TX 75028, on or before September 17, 2007 at a time to be
agreed upon between the parties (the “Closing Date”).

ARTICLE
III

Conditions Precedent

Section 3.1.            Deliveries of Information to
Purchaser.            Member upon the
execution of this Agreement shall provide information to satisfy conditions
precedent to Purchaser, which in its sole and absolute discretion shall
evaluate and review the following information to determine the sufficiency and
accuracy thereof, as set forth in the due diligence section as found in Article
VII. Member shall deliver unto Purchaser immediately upon execution of this
Agreement, or prior to Closing, the following:

(a)           a Bill of Sale as shown on Schedule
3.l(a)(l) conveying all the interest in the Business (Units) and a Bill of Sale
for the building and improvements, including fixtures and personal property
(Improvements, Fixtures and Personal Property) located at 12325 Calloway
Cemetery Road, Fort Worth, Texas, as shown on Schedule 3.1(a)(2); and

(b)           all licenses and permits required for
the operation of the Business as an adult entertainment business are current
and in force with no actions pending for revocation, or adjudication as set
forth in Schedule 3.1(b); and

(c)           pending transactions shall have no
adverse effect upon the lease of the premises or any contracts which may have
been entered into by Member with third parties or its customers;

(d)           that the Business is properly zoned as
an adult entertainment facility at its present location, and there are currently
no amendments or modifications to any law, rule, regulation, ordinance,
statute, code or any court order by federal, state or local

 2
 

governmental agency,
unit, division, or department relating to the operation of the Business;

(e)           documents necessary to assist
Purchaser in applications and actually obtaining the necessary permits,
licenses, and certificates for the ongoing operations of an adult entertainment
business at the current location of Jaguar’s Gold Club Fort Worth;

(f)            Member shall cause United Title
Company to issue an owner’s policy of title insurance showing Member as the
owner of the real property in fee simple, acceptable to Purchaser, provided,
however, the title policy shall specifically except to one certain minimal
reservation to Clubwise Financial, L.P., and a Leasehold Policy acceptable to
Purchaser issued by United Title Company, provided such policy shall also
except the above described minimal reservations; and

(g)           as set forth in Schedule 5.9 hereto, a
Ground Lease fully executed by authorized individuals for the land where the
current Jaguar’s Gold Club For Worth is located.

Section 3.2.            Option to Purchase Additional
Facilities.        The Member herein
shall grant an option to Purchaser to purchase the Jaguar’s Gold Club Fort
Worth #2, once built, provided, however, Member shall be under no obligation to
build or develop said club. The option shall be subject to a more definitive
agreement, inspection by VCG, approval by VCG of the business, and approval by
VCG’s board of directors. The option is as follows:

(i)            Option Price of Prospective Club.     Subject to inspection, approval by VCG, its
board of directors, and a more definitive agreement, Member herein grants an
option for the purchase of a prospective club known for the purposes of this
Agreement as Jaguar’s Gold Club Fort Worth #2. Once built, VCG shall have an
option to purchase the facility and can exercise its option at any time after
the facility has been opened for at least one (1) year and a day, with gross
revenue averaging no less than $225,000 per month, with a minimum net profit of
at least $100,000 per month. Should VCG exercise its option to purchase the
future Jaguar’s Gold Club Fort Worth #2, it shall do so at a purchase price of
thirty-six (36) times the monthly average net profit, based on the most recent
six months revenue average from the date immediately prior to the notice of VCG
to exercise its option to purchase. Should VCG exercise its option, VCG shall
lease the facility (building and real property) from the Member hereof, in a
manner consistent with the terms and conditions hereof. Monthly rental
obligations shall not exceed 8% of the annual gross revenue of Gold Club Fort
Worth #2.

(ii)           Lapse of Option.     This
option shall lapse within five (5) years from the date hereof.

(iii)          The terms of the purchase of this
facility should VCG exercise its option shall be subject to a more definitive
agreement, which shall be consistent in form as set forth in this Purchase of
Membership Interest Agreement as to warranties, covenants,

 3
 

conditions as
appropriate, including covenants not to compete in satisfactory form as set
forth in this Agreement.

ARTICLE
IV

Documents at Closing

Section 4.1.            Deliveries of Individual Member.   Member at Closing shall deliver to Purchaser
the following:

(a)           executed ;Bills of Sales as shown on
Schedules 3.l(a)(l) and 3.l(a)(2);

(b)           all Units certificates, membership
books, membership transfer ledgers, minute books, regulations and the seals (if
any) of the Business, or in the alternative, a statement by the Member that
same are lost or do not exist, but that nothing contained therein in any way
has or had any effect on the Member’s ability and authority to perform under
this Agreement or will or has a Material Adverse Effect on the Business as
shown on Schedule 4.1(b);

(c)           resignations of the directors and
officers of the Business;

(d)           each of the certificates and documents
necessary to satisfy the conditions and obligations of the transaction set out
herein;

(e)           all books, records and accounts,
liability policies, financial statements, audited or unaudited financial
records, true and accurate copies of tax returns and other necessary documents
held in the ordinary course of business for the Business;

(f)            Member shall cause United Title
Company to issue an owner’s policy of title insurance showing Member as the
owner of the real property in fee simple, acceptable to Purchaser, provided,
however, the title policy shall specifically except to one certain minimal
reservation to Clubwise Financial, L.P., and a Leasehold Policy acceptable to
Purchaser issued by United Title Company, provided such policy shall also
except the above described minimal reservations; and

(g)           a document committing Member to assist
in the transition of the Business for ninety (90) days following the Closing of
the transaction contemplated hereby as shown on Schedule 4.1(g).

(h)           a ground lease executed by the owner
as set forth in Schedule 5.9.

Section 4.2.            Deliveries of Purchaser.      Purchaser at Closing shall deliver to
Member the following:

(a)           the cash consideration in accordance
with the Purchase Price and the allocations set herein; and

 4
 

(b)           an executed Ground Lease of certain
real property where Business is operating as set forth in Schedule 5.9 herein.

ARTICLE V

Representation and Warranties of the Member

The Member
represents and warrants to the Purchaser as follows:

Section 5.1.            Organization and Qualification.
        The Business (i) is a limited
liability company duly organized, validly existing and in good standing under
the laws of the State of its organization, (ii) has the requisite corporate
power to carry on its business as now being conducted, and (iii) is duly
qualified as a foreign limited liability company in good standing in each
jurisdiction in which the conduct of its business requires such qualification,
except where the failure to be so qualified would not, individually or in the
aggregate, have a Material Adverse Effect (as defined in Section 13.1(a)). The
Business does not own, of record or beneficially, either directly or
indirectly, any capital stock or other equity or ownership or proprietary
interest in any business, and does not have any obligation to acquire such an
interest.

Section 5.2.            Member Authorization.       The execution, delivery and performance by
the Member of this Agreement and the consummation of the transactions
contemplated hereby are within the Member’s power and has been duly authorized
by all necessary action. This Agreement constitutes the valid and binding
obligation of the Member, and enforceable against the Member in accordance with
its terms, subject to bankruptcy, insolvency, reorganization, moratorium or
other similar laws of general application affecting the enforcement of
creditors’ rights generally.

Section 5.3.            Financial Data.      (a) The Member has previously furnished to
the Purchaser copies of the Business’ compiled balance sheets and related
statements of income and cash flows along with applicable tax documents from
all governmental entities, if any, beginning February 2007 through August 2007,
as set forth in Schedule 5.3(a). In addition thereto, the Business shall cause
to be furnished all compiled balance sheet and related statements of income for
calendar year 2007 up to the Date of Closing, and within 30 days following
Closing for the period ended on the Closing Date (collectively, the “Financial
Statements”). The Financial Statements (i) are and will be complete and
correct, (ii) do and will fairly present the financial condition of the
Business as of the dates thereof and the results of operations and cash flows
of the Business for the periods covered thereby, and (iii) have been and will
be prepared in accordance with cash/tax accounting methods consistently
applied. There has been no material adverse change in the operations or
financial condition of the Business, taken as a whole, and no series of events
have occurred that could reasonably be expected to have a Material Adverse
Effect. All exceptions to the foregoing, if any, are filly disclosed in Schedule
5.3(c) hereto.

(b) There are no
liabilities, debts, obligations or claims against the Business of any nature,
absolute or contingent except (i) as and to the extent reflected or

 5
 

reserved against on the
balance sheet of the Business as shown in the financial data contained in
Schedule 5.3(a) (“Reference Financial Data”); (ii) as specifically described
and identified as an exception to this paragraph in any of the Schedules
delivered to Purchaser pursuant to this Agreement or (iii) as incurred since the
last date shown on the Reference Financial Data in the ordinary course of
business consistent with prior practice. All exceptions to the foregoing, if
any, are fully disclosed in Schedule 5.3(b) hereto.

Section 5.4.            Ownership of Membership Interests.               All such issued and outstanding
Membership Interests have been duly authorized and issued, are filly paid and
non-assessable, are free of preemptive rights, and will at the date of closing
be owned of record and beneficially by the Member. The Business does not have
any outstanding options, warrants or similar rights to acquire, or any
securities convertible into or exchangeable for, any of its Membership
Interests. Upon consummation of the transactions contemplated herein, the
Purchaser will own the entire equity interest in the Business.

Section 5.5.            Consents and Approvals.                  Except
as set forth on Schedule 5.5 hereto, the execution, delivery and performance by
the Member of this Agreement and the consummation of the transactions
contemplated hereby require no action by or in respect of, or any filing with
or notice to, any governmental or regulatory body, agency or official which, if
not obtained or made, would have a Material Adverse Effect. Except as set forth
on Schedule 5.5, neither the execution, delivery and performance by the Member
of this Agreement, nor the consummation of the transactions contemplated
hereby, will (a) violate, conflict with, or result in a breach of any provision
of the articles of organization or operating agreement of the Business or of
any applicable law, regulation, rule, order, judgment, decree or writ of any
foreign, federal, state or local governmental or regulatory authority or body
or court (collectively, “Law”) or (b) result in a default (or give rise to any
penalty or give to any third party a right of termination, cancellation,
acceleration or result in the creation of any material Encumbrance) under any
of the terms, conditions or provisions of any Material Contract (as defined in
Section 5.10) to which the Business is a party or by which it is bound, except
for such violations, breaches or defaults which would not, individually or in
the aggregate, have a Material Adverse Effect.

Section 5.6.            Litigation.              Except as set forth in Schedule 5.6
hereto, there are no claims, actions, suits, approvals, investigations,
informal objections, complaints or proceedings pending against or affecting the
Business before any court, arbiters or administrative, governmental or
regulatory authority or body, or any of the Business or assets thereof, subject
to any order, judgment, writ, injunction or decree, except for matters which
would not, individually or in the aggregate, have a Material Adverse Effect.
There are no claims, actions, suits, approvals, investigations, informal objections,
complaints or proceedings pending against the Member before any court arbiters,
or administrative, governmental or regulatory authority or body, nor is the
Member subject to any order, judgment, writ, injunction or decree, for matters
which will not prevent, materially delay or materially burden the transactions
contemplated hereby.

 6
 

Section 5.7.            Compliance with Law.         Except as set forth on Schedule 5.7
hereto, the Business is not in violation of any Law, except where any such
violation would not, individually or in the aggregate, have a Material Adverse
Effect. Except as set forth on Schedule 5.7 the Business has all permits,
approvals, licenses and franchises from governmental authorities required to
conduct their business as now being conducted (collectively “Permits”), and is
in compliance with all such Permits, except for such Permits the absence of
which would not, individually or in the aggregate, have a Material Adverse
Effect.

Section 5.8.            Tax Matters.          As of the date of organization and at
all times thereafter, the Business has been and continues to be a limited
liability company within the meaning of the Internal Revenue Code of 1986, as
amended (the “Code”) Except as described on Schedule 5.8, the Business, as of
the date hereof, has timely and accurately filed all federal, state, foreign
and local tax returns and reports required to be filed by it prior to such
date, and has timely and accurately paid or made adequate provision on its
Financial Statements for all taxes shown to be owing thereon, and will continue
to do so through the Closing Date. The Business has collected or withheld all
amounts required to be collected or withheld by it for any taxes and all such
amounts has been paid to the appropriate governmental agencies or reserved for
future payment when due. There are, and on the Closing Date will be, no due and
unpaid taxes, additions to tax, penalties, or interest payable by the Business
or by any other entity that are or could become a lien on any asset, or
otherwise adversely affect the business, properties or financial condition, of
the Business. Unpaid taxes not yet due will be accrued on the Business’ books
as of the closing date. The Business is in compliance with, and its records
contain all information and documents necessary to comply with, all applicable
information reporting and tax withholding requirements. The balance sheet
contained in the Financial Statements fully and properly reflects, as of the
date thereof, the liabilities of the Business for all accrued taxes, additions
to tax, penalties and interest. The Business is not, nor will it become,
subject to any additional taxes, interest penalties or other similar charges as
a result of filing or failing to file timely or accurately, as required by
applicable law, any tax return or to pay timely any amount required to be paid
with respect thereto, including, without limitation, any such taxes, interest,
penalties or charges resulting from the obtaining of an extension of time to
file any return or to pay any tax. No assessments or notices of deficiency or
other communications have been received by the Business with respect to any
such return. There are no agreements between the Business and any taxing
authority, including, without limitation, the Internal Revenue Service, waiving
or extending any statute of limitations with respect to any tax return, and it
has not filed a consent under Section 341W) of the Code. The Business is not
required to include in income any amount for an adjustment pursuant to Section
481 of the Code. The Member is not a “foreign person” for purposes of Section
1445 of the Code. None of the transactions contemplated hereby will result in
any of the Business making or being required to make any “excess parachute
payment” as that term is defined in § 280G of the Code.

Section 5.9.            Real Property.       No real property is being transferred.
The building (Improvements, Fixtures and Personal Property) which is currently
occupied by the facility known as Jaguar’s Gold Club Fort Worth, Texas, is
being transferred, as stated

 7
 

herein. Member warrants
that he has the authority to enter into a ground lease for the real property,
and the authority to execute such lease as shown in Schedule 5.9 attached
hereto and incorporated by reference.

Section 5.10.          Material Contracts.              Except as listed or described on
Schedule 5.10 hereto, as of the date hereof, the Business is not a party to or
bound by any written or oral leases, agreements, instruments, or other
contracts or legally binding contractual commitments (“Contracts”) that are of
a type described below (collectively, the “Material Contracts’):

(i)                                     any
collective bargaining arrangement with any labor union;

(ii)           any Contract, singly or in the
aggregate, for capital expenditures or the acquisition or construction of fixed
assets in excess of $2500.00;

(iii)          any Contract, singly or in the
aggregate, for the purchase or sale of inventory, materials, supplies,
merchandise, machinery, equipment, parts or other property, assets, or services
requiring aggregate future payments in excess of $2500.00 (other than standard
inventory purchase orders executed in the ordinary course of business);

(iv)          any Contract relating to the borrowing
of money or the guaranty of another person’s borrowing of money;

(v)           any Contract granting any person a
lien on all or any part of assets;

(vi)          any Contract granting to any person a
first refusal, first offer or similar preferential right to purchase or acquire
any of its assets;

(vii)         any Contract under which the Business is
(A) a lessee or sublessee of any machinery, equipment, vehicle (including fleet
equipment) or other tangible personal property, or (B) a lessor of any
property, in either case having an original value in excess of $2500.00;

(viii)        any Contract limiting, restricting or prohibiting
it from conducting business anywhere in the United States or elsewhere in the
world or any Contract limiting the freedom of the Business to engage in any
line of business or to compete with any other Person;

(ix)           any joint venture or partnership Contract;

(x)            Contracts, singly or in the
aggregate, requiring future payments of $2500.00 or more that require the
consent of the other party thereto in connection with the transactions
contemplated hereby; and

(xi)                                any
material employment Contract with any employee.

 8
 

The Member has
made available to the Purchaser a true and complete copy of each written
Material Contract, including all amendments or other modifications thereto.
Except as set forth on Schedules 5.9 and 5.10 hereto, each Material Contract is
a valid and binding obligation of each party thereto, enforceable in accordance
with its terms, subject only to bankruptcy, reorganization, receivership and
other laws affecting creditors’ rights generally. Except as set forth on
Schedules 5.9 and 5.10 hereto, the Business has performed all obligations
required to be performed by it under the Material Contracts and the Business is
not in breach or default thereunder.

Section 5.11.          Personal Property.               Except as set forth on Schedule
5.11 hereto, the Business has good and marketable title to the assets reflected
on its books and records as owned by it (other than real property) free and
clear of all Encumbrances other than Permitted Liens.

Section 5.12.          Environmental Safety Matters.          Except as shown on Schedule 5.12, as of
September 7, 2007, Seller is not in receipt of any notice from a governmental
entity regarding environmental claims with respect to the Property located at
12325 Calloway Cemetery Road, Fort Worth, Texas, and has no personal knowledge
of any negative environmental issues.

Section 5.13.          Employee Relations.            Except as set forth on Schedule 5.13
hereto, within the last two years, the Business has not experienced any strike,
picketing, boycott, work stoppage or slowdown or other labor dispute, nor is
any such event or any organizing effort threatened against it. Except as set
forth on Schedule 5.13 hereto, there is no pending charge or complaint of
unfair labor practice, employment discrimination or similar matters against the
Business relating to the employment of labor.

Section 5.14.          Business Insurance.            The Business has no insurance in
force on or before the Closing. The risk of loss will not pass to the Purchaser
until the Closing.

Section 5.15.          Absence of Changes.          The Business has not, except as
specifically disclosed on Schedule 5.15 attached hereto:

5.15.1. except as
set forth in Schedule 5.15, transferred, assigned or conveyed any of its assets
or business or entered into any transaction or incurred any liability or
obligation, other than in the ordinary course of its business and consistent
with past practice;

5.15.2. suffered
any adverse change in its business, operations, or financial condition of the
Business or become aware of any event which may result in any such adverse
change, the effect of which has had or could have a Material Adverse Effect;

5.15.3. written
off as uncollectible any notes or accounts receivable or any portion thereof,
other than in the ordinary course of business;

5.15.4. suffered any destruction, damage or loss to property (casualty
or other), whether or not covered by insurance;

 9
 

5.15.5. suffered,
permitted or incurred the imposition of any lien, charge, encumbrance (which as
used herein includes, without limitation, any mortgage, deed of trust,
conveyance to secure debt or security interest) or claim upon any of its
assets, except for any current year lien with respect to personal taxes not yet
past due;

5.15.6. committed,
suffered, permitted or incurred any default in any material liability or
obligation;

5.15.7. made or
agreed to any material adverse change in the terms of any contract or
instrument to which it is a party;

5.15.8. waived,
canceled, sold or otherwise disposed of, for less than the face amount thereof;
any material claim or right it has against others;

5.15.9. (a)
disposed of or permitted to lapse, or otherwise failed to preserve then
existing exclusive rights, if any, of the Business to use any (i) patent,
trademark, trademark registration, logo, assumed name, trade name, copyright or
copyright registration, or (ii) any patent, trademark, trade name or copyright
application, (b) disposed of or permitted to lapse any license, permit or other
form of authorization, or any trade name, or (c) disposed of or disclosed to
any Person any trade secret, formula or process;

5.15.10. made any
change in any method of accounting or accounting practice;

5.15.11. except as
set forth in Schedule 5.15 declared, promised or made any distribution or other
payment to the Member (other than compensation payable in the ordinary course
to employees of the Business consistent with past practice), or issued any
additional Units or rights, options or calls with respect to its Units, or
redeemed, purchased or otherwise acquired any of its Units, or made any change
whatsoever in its capital structure;

5.15.12. increased
or changed, or agreed to increase or change, its obligation for any payment
for, any contribution or other amount to, or with respect to, any employee
benefit plan, or paid any bonus to, or granted any increase in the compensation
of; its directors, officers, agents or employees, or made any increase in the
pension, retirement or other benefits of its directors, officers, agents or
other employees;

5.15.13. except as
set forth in the Schedules hereto, paid, loaned or advanced any amount to or in
respect of, or sold, transferred or leased any properties or assets (whether
real, personal, mixed, tangible or intangible) to, or entered into any
agreement, arrangement or transaction with, the Member, any of the officers or
directors of the Business, or any affiliate or associate of any of them, or any
business or entity in which the Member or the Business or any affiliate or
associate of any of them has any direct or indirect interest, except for
compensation to the officers and employees of the Business, or the Member;

 10
 

5.15.14.
committed, suffered, permitted or incurred any transaction or event which would
increase its tax liability for any prior taxable year;

5.15.15. except
for the Leases, entered into any lease of real property or material lease of
personal property;

5.15.16. except as
set forth in Schedule 5.3(a) or 5.3(b) incurred any other liability or
obligation or entered into any transaction other than in the ordinary course of
business;

5.15.17.
terminated or amended or suffered the termination or amendment of, or failed to
perform in all material respects all of its obligations or suffered or
permitted any default to exist under any contract, lease, agreement or license;

5.15.18. received
any notices that any supplier or customer has taken or contemplates any steps
which could materially and adversely disrupt the business relationship of the
Business with said supplier or customer; or

5.15.19. agreed,
whether in writing or otherwise, to take any action described in this Section
5.15.

Section 5.16.          Independent Contractors.       The
Business has heretofore utilized independent contractors to work as
entertainers/dancers in the facility known as Jaguar’s Gold Club Fort Worth.
Member hereby warrants that he has continually treated the entertainers/dancers
as independent contractors, and has complied hereto with all applicable federal
and Texas laws concerning those independent contractors, and shall do so up
until the date of Closing.

Section 5.17.          Broker.                   Member
hereby warrants that no broker, finder, or investment banker is entitled to any
brokerage, finders or other fee of commission in connection with the
transaction contemplated by this Agreement based upon arrangements made by or
on behalf of the Member.

Section 5.18.          Limitation on Representations and
Warranties.             The
representations and warranties set forth in Sections 5.6, 5.7, and 5.13 shall
be limited to the best of Members knowledge, provided, however, that should
there be a breach of any of said sections that occurred prior to the Closing
which arise within two (2) years after the Closing, the Member shall be solely
responsible for any damages to Purchaser as a result of said breach and will
indemnify and hold harmless Purchaser. Section 5.12 shall also be limited to
the best of Members knowledge, but shall not be subject to the two (2) year
termination of liability as set forth above as to a breach which occurred prior
to Closing.

ARTICLE VI

Representations
and Warranties of Purchaser

Purchaser
represents and warrants to the Business and Member as follows:

 11
 

Section 6.1.            Organization and Qualification.
        Purchaser is a corporation or
other legal entity duly formed, validly existing and in good standing under the
laws of the State of Colorado or other state. The Purchaser has the requisite
corporate power to execute and deliver this Agreement and to carry-out the
transactions contemplated hereby. If necessary, the Purchaser is duly qualified
as a foreign corporation in good standing in each jurisdiction in which the
conduct of its business requires such qualification, except where the failure
to be so qualified would not prevent or materially delay consummation of the
transactions contemplated hereby.

Section 6.2.            Authorization.        The
execution, delivery and performance by the Purchaser of this Agreement and the
transactions contemplated hereby are within the powers of the Purchaser and
have been duly authorized by all necessary action. This Agreement constitutes a
valid and binding obligation of the Purchaser, enforceable against the
Purchaser in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium or other similar laws of
general application affecting the enforcement of creditors’ rights generally.

Section 6.3.            Consents and Approvals.       The
execution, delivery and performance by the Purchaser of this Agreement and the
consummation of the transactions contemplated hereby have been duly approved by
VCG, its board of directors, and those individuals executing this Agreement
shall have all necessary authority for the action therein taken. VCG has or
will notify all required regulatory bodies, or governmental agencies, as
needed, of the transaction contemplated hereby. Neither the execution, delivery
and performance by the Purchaser of this Agreement, nor the consummation by the
Purchaser of the transactions contemplated hereby, will (a) violate, conflict
with, or result in a breach of any provision of the charter or bylaws of the
Purchaser or (b) result in a default (or give rise to any right of termination,
cancellation or acceleration) under, any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, license, franchise, permit, lease,
agreement or other instrument or obligation to which the Purchaser are a party,
or by which its properties or assets may be bound, except for such violations,
breaches or defaults which would not prevent or materially delay consummation
of the transactions contemplated hereby.

ARTICLE VII

Due
Diligence

Section 7.1.            Member’s documents.        Upon execution hereof, Member shall
within five (5) business days produce for inspection and review the Business
records beginning as of February 2007 through August 2007 (the “Confidential
Records”) for the inspection by Purchaser, along with a copy of any items to be
included on any or all of the Schedules which are a part of this Agreement.
Upon receipt of the Confidential Records and completion of the Schedules
hereto, Purchaser shall have thirty (30) days from receipt thereof (or a lesser
amount of time determined in the sole and absolute discretion of Purchaser) for
inspection of these records, to determine the economic condition, and viability
of the Business, laws, rules, regulations, applicable to the

 12
 

Business assets, books,
records, documents, contracts, and agreements related to the Business.

Section 7.2.            Termination.          Should Purchaser not be satisfied with
the results of the inspection of the Confidential Records, and/or information
contained on completed Schedules hereto, Purchaser shall have the right to
terminate this Agreement for any reason or no reason at all based on its sole
and absolute discretion, and be entitled to a refund of any and all escrow
funds, deposits, or down payments.

Section 7.3.            Covenant of Cooperation.      Member
or its employees and agents, shall fully and accurately cooperate with
Purchaser in all aspects of their inquiry during this due diligence phase.

Section 7.4.            Early Termination.                Purchaser may elect to terminate
early its due diligence phase as described herein, upon two days written notice
to Member herein.

ARTICLE VIII

Covenants

Section 8.1.            Future Assurances.             Member herein shall continue to work
with Purchaser to consummate the transaction herein, and Member covenant to
execute all reasonably required documents, as may be determined from time to
time in the sole and absolute discretion of Purchaser, and work with Purchaser
for the acquisition of all necessary licenses, permits, or certificates which
may be required by any and all governmental entities.

Section 8.2.            Personnel of Purchaser.      Upon execution hereof, Member shall allow
an individual designated by Purchaser to immediately be placed into the
operating facility of Jaguar’s Gold Club Fort Worth for an inspection of the
day-to-day operation of the Business, including but not limited to accountings,
business operations, cash management, and other day-to-day material aspects of
the Business. Member hereby covenants that the individual so designated by
Purchaser shall have full and open opportunity to observe every aspect of the
operations of the Business, and shall cooperate with that individual in
providing reasonably requested information, documents, personnel, and other
vital elements of the day-to-day operations of the Business.

Section 8.3.            Conduct of Business.          Except as contemplated by this
Agreement or otherwise consented to in writing by the Purchaser, during the
period from the date of this Agreement to the Closing Date, the Business shall,
and the Member shall cause the Business to, conduct their business in the
ordinary course of business of the Business consistent with past practice, all
as may be required to carry on the business in the ordinary course of the
Business consistent with past practice, and the Business will not intentionally
take any actions that could reasonably be expected to have a Material Adverse
Effect. Without limiting the generality of the foregoing, and except as
otherwise expressly provided in this Agreement, prior to the Closing Date, the
Business will not and Member will not permit the Business to, without the prior
written consent of the Purchaser:

 13
 

(i) sell, pledge,
dispose of or encumber its assets, except for sales of inventory and sales of
obsolete assets and assets concurrently replaced with similar assets, in each
case in the ordinary course of its business;

(ii) except as
otherwise required by law or by any existing employee benefit plan, arrangement
or agreement, materially increase the compensation or benefits payable to any
employee of the Business or enter into, adopt, amend or terminate any employee
benefit plan or any material employment agreement;

(iii) declare or
make any dividends or other distributions on the Common Stock, or repurchase or
otherwise reacquire for value any Units of Common Stock;

(iv) issue any
Units of capital stock, or any warrants, options or other rights to purchase or
acquire any capital stock;

(v) incur any
indebtedness for borrowed money other than borrowings for working capital
purposes under existing credit facilities in the ordinary course of business;

(vi) amend any tax
return, change any method of tax accounting, make any elections that have any
effect on any tax return, file for or make any refund claims relating to any
tax or any tax return or settle any issues arising in any tax audit or contest.

(vii) other than
in the ordinary course of business, enter into any Material Contract (including
without limitation, any arrangement with any governmental body) or any
amendment, cancellation or termination of any Material Contract, including
without limitation any Contract with any governmental body or agency, or take
any action impairing its rights under any Material Contract or take, or fail to
take, any action that constitutes a material breach or default under any
Material Contract;

(viii) amend or
propose to amend the charter or bylaws of any of the Business; or

(ix) agree to do any of the foregoing.

Section 8.4.            Filings.       The Business, Purchaser and the Member shall
exercise reasonable best efforts to take or cause to be taken all actions, and
to do or cause to be done all things necessary, proper or advisable under
applicable laws to consummate and make effective, as soon as reasonably
practicable, the transactions contemplated hereby. Without limiting the
generality of the foregoing, each of the Business, Member and the Purchaser (a)
shall make all required filings with or applications to governmental bodies and
other regulatory authorities no later than five business days after the execution
of this Agreement, and (b) shall exercise reasonable best efforts to (1) obtain
all necessary waivers, consents and approvals from other parties to Material
Contracts as identified by

 14
 

the Purchaser and set
forth on Schedules 5.9 and 5.10 and to oppose, lift or rescind any injunction
or restraining order or other order adversely affecting the ability of the
parties to consummate the transactions contemplated hereby, and (2) otherwise
fulfill all conditions to this Agreement.

Section 8.5.            Notification of Certain Matters.
        The Business shall give prompt
written notice to the Purchaser of (i) the occurrence, or failure to occur, of
any event or existence of any condition that has caused or could reasonably be
expected to cause any representation or warranty of the Business or Member
contained in this Agreement to be untrue or inaccurate in any material respect
at any time after the date of this Agreement, up to and including the Closing
Date, and (ii) any failure of the Business or Member to comply with or satisfy,
in any respect, any material covenant, condition or agreement to be complied
with or satisfied under this Agreement.

Section 8.6.            Covenant Not to Compete.                 At the Closing, the Member and
Richard Richardson shall enter into a Covenant Not to Compete Agreement as
contained in the form of Schedules 8.6(a) and 8.6(b) hereto.

Section 8.7.            Employee Benefits.              There are no disputes, issues or
claims relating to any Employee Benefits, including any such disputes, issues,
or claims by any employee or by the Internal Revenue Service, any administrator
or agent. All benefits are in full compliance with all regulations, rules,
laws, statutes, agreements and federal state and local regulatory authorities.
All Employee Benefits have been fully funded, or shall be fully funded prior to
the date of Closing, or will be pro rated to the date of Closing.

Section 8.8.            Certain Income Tax Matters.

(a) Member shall
pay or make provisions for offset or recoupment to Purchaser for all income and
other tax liability as a result of the Business operations to any governing
authority on or prior to the Closing Date. Member shall prepare or cause to be
prepared all tax computations for such taxes due on or before the Closing Date,
and the amount of such taxes due shall be paid by Member either by direct
payment to the Department of Revenue, and proof of payment thereof, direct
payment to Purchaser therefore, or offset in adjustment of the Purchase Price
by the Purchaser. Member warrants that the tax computations will be accurate
and complete and, subject to Section 5.8 hereof, shall be responsible for all
taxes, penalties and interest due on all such taxes as of the Closing Date. The
Member shall prepare and cause to be filed all income tax returns for the
Business for the Business’ taxable years ending as of the end of the Closing
Date. The Purchaser shall be responsible for the preparation and filing of all
income tax returns and the payment of all income and other tax liabilities of
the Business for the Business’ taxable periods beginning the day after the
Closing Date and subsequent periods. Each party agrees to indemnify the other
against any liability for federal income taxes payable by the indemnifying
party as a result of any portion of the Business’ income allocable to the
indemnifying party.

(b) The Member
agree to cooperate with the Purchaser, and the Purchaser agree to cooperate
(and cause the Business to cooperate) with the Member, to the extent

 15
 

necessary in connection
with the filing of any tax return or similar document relating to the
Purchasers acquisition of the Business. Each such tax return shall be based on
the same tax accounting methods and elections as used for the Business’ taxable
years immediately preceding the year of such return, except as otherwise required
by law or as agreed upon by the Purchaser and the Member. A photocopy of each
such tax return shall be furnished to the Purchaser at least 30 days before the
due date (including any extensions) for filing the tax return. If the Purchaser
disagrees with the amount or treatment of any item on any such return, the
Purchaser shall notify the Member, and the Purchaser and the Seller shall
proceed in good faith to resolve any dispute regarding the return before the
due date.

Section 8.9.            Disbursing Agent.               The parties agree the closing
funds will be disbursed through the trust or escrow account of United Title,
4880 Long Prairie, Suite 200, Flower Mount, TX 75028, Linda Miller, Branch
Manager.

Section 8.10.            Payment of Contracts for Deeds.
    Member has heretofore entered into
contracts for deeds for the real property where Jaguar’s Gold Club Fort Worth.
Member hereby covenants that he shall upon, at the date and time of Closing,
take all necessary actions to insure immediate payment in full of the deeds of
contract to acquire the real property in fee simple no later than the date of
Closing, and obtain a title policy showing the owner as owner in fee simple of
the real property, and Purchaser as owner of the structures thereon.

Section 8.11.            Cash and Inventory at Closing.
       The Member hereby covenants, that
the Business shall pay all accounts payable up to the Closing Date that have
been incurred prior to the Closing Date in the operations of the Business. The
Member covenants to have cash on hand sufficient to pay all outstanding checks
issued prior to Closing, without the right of attachment, setoff, or other
encumbrances leaving a net amount as of the date of Closing of no less than
$10,000.00 available to Purchaser.

(a)           Inventory. Business and Member
hereby covenant to have on hand in Inventory based on prior usage, or on
schedules, at least three (3) weeks of food and beverage and other operating
supplies necessary for Purchaser to acquire and operate the Business for three
(3) consecutive weeks without the necessity of re-ordering those items.

Section 8.12.            Public Announcements.    The Member hereby covenants that he shall not
issue any press release or otherwise making any public statement with respect
to this Agreement, or the transactions contemplated hereby. Member covenants
that he shall not object, and accept Purchaser has certain mandated regulated
announcements which must be made, and covenant that it shall be allowed to make
all necessary press releases, statements, or other such comments as required by
law, rule or regulation without consultation and restriction.

Section 8.13.          Representations. Warranties, and
Covenants.               The
representations, warranties and covenants contained herein shall survive the
Closing Date as follows:

 16
 

(i)            Sections
5.1, 5.2, 5.4 and 5.9 and Article VIII without limitation.

(ii)           Sections 5.3, 5.5, 5.6., 5.7, 5.10,
5.11, 5.13, 5.14, 5.15, 5.16 and 5.17 for a period of two (2) years after the
Closing Date.

(iii)          Sections 5.8 and 5.12 without
limitation only subject to the statute of limitations for said items.

Section 8.14.          Joint and Several Liability. The Member herein agrees that the covenants,
representations and warranties made in this section and previous sections of
this Agreement, shall be joint and several liabilities against the Member (if
more than one) for any breach of such covenant, representation, or warranty.

Section 8.15.          Consents and Approvals.      The
Member shall obtain any waiver, consent, or approval as may be required in
order to consummate the transactions contemplated by this Agreement, or that
may be required by any agreement, lease, instrument, arrangement, judgment,
decree, order or license to which such Member is a party or subject to up to
the Closing Date, which would prohibit, or require the waiver, consent or
approval of any Person to such transaction or under which, without such waiver,
consent or approval, such transaction would constitute an occurrence of default
under the provisions thereof, result in the acceleration of any obligation
thereunder, or give rise to a right of any party thereto to terminate its
obligations thereunder.

Section 8.16.          Authority and Status.         Each Member shall obtain full capacity,
power and authority to execute and deliver this Agreement (if necessary), to
perform hereunder, and to consummate the transactions contemplated hereby
without the necessity of any act or consent of any other Person whomsoever. The
execution, delivery and performance by each Member of this Agreement and each
and every agreement, document and instrument provided for herein to be executed
and delivered by such Member have been duly authorized and approved by each
Member. This Agreement and each and every agreement, document and instrument to
be executed, delivered and performed by a Member in connection herewith
constitutes or will, when executed and delivered, constitute the legal, valid
and binding obligation of each Member, enforceable against each Member in
accordance with their respective terms, except as enforceability may be limited
by applicable equitable principles or by bankruptcy, insolvency,
reorganization, moratorium, or similar laws from time to time in effect
affecting the enforcement of creditors’ rights generally.

Section 8.17.          Ownership of Membership Interests.               The outstanding Membership
Interests of the Business shall be beneficially owned, and of record by the
Closing Date of those individuals and entities as shown on Schedule 8.17
hereto, and such Units shall be at the time of Closing free and clear of all
liens, claims, charges and encumbrances of any kind or nature whatsoever, and
at such time the authorization of no other Person or entity will be required in
order to consummate the transactions contemplated herein.

 17
 

Section 8.18.          Certain
Payments.                The Member
shall not, nor shall its officers, employees, agents and affiliates directly or
indirectly be given or agree to be given or solicit or receive any gift, rebate
or similar benefit to any customer, supplier, governmental employee or other
Person which might subject the Business to any damage or penalty in any civil,
criminal or governmental litigation or proceeding, (i) if not given in the past
might have had an adverse effect on the assets, business or operation of the
Businesses, or (ii) if not continued in the future might adversely affect the
assets, business, operations or prospects of the Business.

Section 8.19.          Litigation.              Member shall give notice of any
suit, action, proceeding, claim or investigation which it shall become aware of
prior to Closing, affecting any Member that if pursued and/or resulting in a
judgment or decision against such Member would have a material and adverse
affect on the assets, business, goodwill or financial condition of the Business
up to the date of Closing.

Section 8.20.          Transition
Period.                Member hereby
covenants that he shall from the date of Closing and for ninety (90)
consecutive days thereafter assist Purchaser in every reasonable manner in the
transition of the day-to-day operations of the Business.  The assistance shall include, but not limited
to, physical presence at the Business facility, and good faith activities
including phone calls, face to face meetings, and other such activities to
assist Purchaser in the transition for ninety (90) days immediately after
Closing in accordance with Schedule 4.1(g).

Section 8.21.          Use
of Jaguar’s Gold Club Name.      Member
hereby covenants that the Purchaser shall be allowed to have unlimited use of
the name Jaguar’s Gold Club provided, however, Member shall have the right to
terminate such use with sixty (60) days notice. 
In the event Purchaser shall be sued as a result of the use of the name
after the Closing, Purchaser shall be solely responsible for the defense,
consequences, and damages and the right and be entitled to any awards of any
such suit; and the Member shall not be required to indemnify or hold harmless
Purchaser for such suit.

ARTICLE IX

Indemnification by Member

Section 9.1.       Indemnification
by Member.         Member hereby agrees to defend, indemnify and
hold harmless Purchaser, the Businesses, and the respective successors, assigns
and affiliates of the foregoing entities (collectively, the “Purchaser
Indemnitees”) from and against any and all losses, diminish in value,
liabilities, damages, assessments, judgments, costs and expenses, including
reasonable attorneys’ fees (both those incurred in connection with the defense
or prosecution of an indemnifiable claim and those incurred in connection with
the enforcement of this provision) (collectively, “Purchaser Losses”), caused
by, or resulting from or in any way arising out of:

 18
 

(a) (i) breaches of representations or warranties
hereunder on the part of Member; and (ii) failure by Member to perform or
otherwise fulfill any undertaking or other agreement or obligation hereunder;

(b) claims occurring
on or prior to the Closing Date as a result of, directly or indirectly, the
sale of any product, performance, or services, by the Company on or before the
Closing Date, or any other claim asserted against Purchaser or the Businesses
arising from any action or inaction of Member or the Businesses on or before
the Closing Date.

(c) (i) any and all taxes imposed on Shareholder or
any Affiliate of Shareholder (including, without limitation, the Businesses)
for, or relating to, any taxable periods commencing before the Closing Date,
including, but not limited to, (a) any liability of the Companies under any tax
sharing agreement, whether or not written; and (b) any tax liability resulting
from the termination, as of the Closing Date, of the Businesses as a member of
any consolidated, affiliated, combined, unitary or other similar tax group and
(ii) liabilities of the Businesses or Shareholder as a result of prior filings
of tax returns of federal, state, local, or any other tax subdivision thereof,
heretofore filed by the Businesses prior to the Date of Closing; and

(d) any and all actions, suits, proceedings, claims or
demands incident to any of the foregoing for such indemnification.

Section 9.2.            Ongoing
Lease Obligation/Offset.                    In addition hereto, and not as
an exclusive remedy, any sums, claims or demands which give rise to
indemnification may be satisfied by Purchaser by way of setoff of rental
obligations referred to in Section 5.9 as limited by and more particularly
described in the Ground Lease therein referenced and incorporated herein by
reference.

ARTICLE X

Indemnification by Purchaser

Section 10.1.          Indemnification
by Purchaser.           Purchaser
hereby agrees to -defend, indemnify and hold harmless Member or his successors
and assigns (collectively, “Shareholder Indemnitees”) from and against any and
all losses, damages, assessments, judgments, costs and expenses, including
reasonable attorneys’ fees, resulting from or arising out of:

(a) (i) breaches of representations and warranties
under any part of the Agreement; and (ii) failure by Purchasers to perform or
otherwise fulfill any undertaking or agreement or obligation hereunder;

(b) claims
occurring after the Closing Date as a result of, directly or indirectly, the
sale or service to the public at large by the Business arising or occurring
after the Closing Date.

 19
 

(c) claims
occurring after the Closing Date for its brokers fees or commissions incurred
as a result of the transaction herein contemplated.

ARTICLE XI

Conditions as to Closing

Section 11.1.          Conditions to Each Party’s
Obligation.            The respective
obligations of each party to effect the transactions contemplated hereby are
subject to the satisfaction or waiver prior to the Closing Date of the
following conditions:

(a) No Legal Prohibition. No statute, rule,
regulation or order shall be enacted, promulgated, entered or enforced by any
court or governmental authority which would prohibit consummation by or the
ongoing business operation of an adult cabaret upon the Property.

(b) No Injunction. Such party shall not be
prohibited by any order, ruling, consent, decree, judgment or injunction of a
court or regulatory agency of competent jurisdiction from consummating the
transactions contemplated hereby.

Section 11.2           Conditions to Obligation of the
Purchasers.       The obligation of
the Purchasers to effect the transactions contemplated hereby shall be subject
to the satisfaction or waiver, prior to or at the Closing, of the following
conditions:

(a) Representations
and Covenants. Except as expressly contemplated by this Agreement, the
representations and warranties of the Member contained in this Agreement shall
be true and correct on and as of the Closing Date with the same force and
effect as though made on and as of the Closing Date, except for such breaches
of representations and warranties as, individually or in the aggregate, do not
have a Material Adverse Effect. The Member shall have performed and complied in
all material respects with all covenants and agreements required by this
Agreement to be performed or complied with by it on or prior to the Closing
Date.

(b) Approvals. All governmental and third-party
approvals, consents, permits or waivers set forth on Schedules 5.5 shall have
been obtained in form and substance reasonably satisfactory to the Purchasers.

(c) Member Agreements. All agreements of the
Member with any Member or any relative of the Member shall have been canceled,
or shall be canceled effective as of the Closing, with no payment or cost of
any nature to the Member.

(d) Covenant Not to Compete and Non-Disclosure
Agreement. At the Closing, Member and Richard Richardson shall execute and
deliver a Covenant Not to Compete and a Non-Disclosure Agreement contained in
Schedule 8.6(a) and 8.6(b) hereto.

(e) Officer’s Certificate. The Member and the
Chief Manager of the Business shall have delivered a certificate substantially
in the form of Schedule 11.2(e) hereto.

 20
 

(f) Chief Manager’s Certificate. The Chief
Manager of the Business shall have delivered a certificate substantially in the
form of Schedule 11.2(f) hereto.

(g) Absence of Adverse Changes. Since the date
of the Reference Balance Sheet,

(I) The Business shall not have suffered any change in
its financial condition, business, prospects, property or assets which, either
singularly or in the aggregate, constitutes a Material Adverse Effect; and

(II) the Business and the Member shall not have
permitted or suffered to occur any transaction or event which will materially
adversely affect the transaction herein contemplated in the sole and absolute
discretion of the Purchaser.

(h)
Articles of Organization. If the Articles of Organization shall call for a
member managed entity, the Member herein shall cause to be modified the
Articles of Organization to authorize a manager managed limited liability
company as set forth in Schedule 11.2(h), in order to facilitate the Purchaser
in obtaining any permits, licenses, use and occupancy certificates, or other
governmental requirement necessary for a Purchaser to continue the operation of
the Business as it is currently conducted.

(i)
Two Title Policies. Premises is paid in full and issued as set forth in 3.1W)
and 4.1(f).

ARTICLE XII

Termination

Section 12.1         
Termination.         This Agreement
may be terminated at any time prior to the Closing:

(a)            By mutual written consent of the
Purchasers and Member.

(b)           In writing by the Purchaser if prior
to the Closing Date the Business or Member fail to perform in any material
respect any of their obligations under this Agreement or the Company or Member
have breached in any material respect any of their representations or
warranties, and such failure or breach has not been cured within five (5) days
after receipt of written notice of such failure or breach by the Purchaser.

(c)            In writing by the Purchaser if
Purchaser is unable to acquire, in a satisfactory manner as determined by
Purchaser in its sole and absolute discretion, any governmental authority,
permits, licenses, of use and occupancy certificates or any governmental
permission as may be required by law.

(d)           In writing by Purchaser, if Purchaser
in its sole and absolute discretion determines during its due diligence phase
to terminate this Agreement.

 21
 

Section 12.2 Effect
of Termination. In the event of termination of this Agreement by the
Purchasers or Member as provided in Section 12.1 hereof, all obligations of the
parties under this Agreement shall terminate without liability of any party to
any other party.  All funds, escrow,
and/or deposits heretofore paid by Purchaser shall be returned without offset,
claims or demands.

ARTICLE XIII

General Provisions

Section 13.1           Rules of
Construction.

(a) Material Adverse Effect. For purposes of
this Agreement, a “Material Adverse Effect” shall mean a material adverse
effect on the financial condition, assets, liabilities (contingent or
otherwise), result of operations, business or prospects of the Company /taken
as a whole, or on the Company and the Member’s ability to consummate the
transactions contemplated by this Agreement. 
For purposes hereof, an adverse effect on the financial condition,
assets, liabilities (contingent or otherwise), results of operations, business
or prospects of the Company which has resulted or could reasonably be expected
to result individually or in the aggregate in Losses of $25,000.00 shall be
deemed a Material Adverse Effect.

(b) Knowledge. The Member and officers of the
Company have made reasonable inquiry to obtain full knowledge of any and all
material matters referred to in this agreement.

(c) Schedules. Any matter disclosed on any of
the schedules attached hereto for any purpose of this Agreement shall be deemed
to be disclosed on each of the schedules.

(d) Headings. The headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

(e) Severability. If any provision of this
Agreement, or the application thereof to any person, place or circumstance,
shall be held by a court of competent jurisdiction to be illegal, invalid,
unenforceable or void, then such provision shall be enforced to the extent that
it is not illegal, invalid, unenforceable or void, and the remainder of this
Agreement, as well as such provision as applied to other persons, places or
circumstances, shall remain in full force and effect.

Section 13.2.          Survival.                All representations and
warranties shall survive as provided in Section 8.13 hereof.

Section 13.3.          Notices.                 All
notices, demands, or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been duly given or delivered when (i) delivered personally, (ii)
sent by certified mail, return receipt requesteed or (iii) sent via a
nationally

 22
 

recognized overnight
courier to the recipient for next business day delivery. Such notices, demands
and other communications shall be sent to the address indicated below:

I

(i)                                     If
to Member:

Bryan S. Foster

2171 Manana Drive

Dallas, TX 75202

With copy to:

Arthur
F. Selander

Attorney at
Law

2001 Blind Bryan
Tower, Ste. 1800

Dallas, TX 75201

(ii)                                  If
to Purchasers:

Michael Ocello

Troy Lowrie

Brent Lewis

VCG Holding Corp.

390 Union Blvd., Suite
540

Lakewood, CO 80228

With copy to:

Martin A. Grusin

780 Ridge Lake Blvd.,
Suite 202

Memphis, TN 38120

Facsimile: 901-682-3590

or to such other
address as any party may specify by notice given to the other party in
accordance with this Section 13.3. The date of giving any such notice shall be
(i) the date of hand delivery, (ii) the date sent by telephone facsimile if a
business day or the first business day thereafter or (iii) the business day
after delivery to the overnight courier service.

Section 13.4           Governing Law.    This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of Texas without
giving effect to any choice or conflict of law provision or rule (whether of
the State of Texas or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Texas.

Section
13.5           Entire Agreement.                This Agreement (including
attached exhibits and schedules, and any ancillary or other agreements referred
to therein) and the Confidentiality Agreement previously entered into among the
parties, constitute the

 23
 

entire agreement among the parties with respect to the subject matter
of this Agreement and supersedes any prior agreement or understanding, whether
written or oral, among the parties or between any of them with respect to the
subject matter of this Agreement. here are no representations, warranties,
covenants, promises or undertakings, other than those expressly set forth or
referred to herein.

Section 13.6           Amendment;
Waiver.          This Agreement may be
amended, modified or waived only by a written agreement signed by the
Purchasers, the Company and Member. With regard to any power, remedy or right
provided in this Agreement or otherwise available to any party, (i) no waiver
or extension of time, shall be effective unless expressly contained in a
writing signed by the waiving party, (ii) no alteration, modification or
impairment shall be implied by reason of any previous waiver, extension of
time, delay or omission in exercise or other indulgence, and (iii) waiver by
any party of the time for performance of any act or condition hereunder does
not constitute a waiver of the act or condition itself.

Section 13.7           Assignabilitv.                       This Agreement may not be
assigned by Member or the Business for any purpose.  This Agreement is fully assignable by
Purchasers to a wholly-owned entity of the Purchasers.

Section 13.8           Binding
Effect.      This Agreement shall be
binding upon and shall inure to the benefit of the parties and their respective
successors and, if applicable, permitted assigns.

Section 13.9           Third-Party
Beneficiaries.   Each party intends
that this Agreement shall not benefit or create any right or cause of action in
any person other than the parties hereto.

Section 13.10         Counterparts.        This Agreement may be executed in one or
more counterparts, each of which shall constitute an original but when taken
together shall constitute but one instrument.

Section 13.11         Expenses.              Each party to this Agreement shall bear all of its own
expenses in connection with the execution, delivery and performance of this
Agreement and the transactions contemplated hereby, including without
limitation all fees and expenses of its agents, representatives, counsel and
accountants, provided that all expenses of the Company and Member shall be
borne by the Member.

Section 13.12.        Attorney’s Fees.     Should
either party be required to engage an attorney to enforce this Agreement, or
the arbitration section as set forth below, the prevailing party shall receive
all reasonable cost of enforcement, including, but not limited to a reasonable
attorney’s fee.

 24
 

 

ARTICLE XIV

Arbitration

Section 14.             Arbitration.           Each
of the parties hereto agrees to submit to binding arbitration any and all
differences and disputes which may arise between them, their heirs, successors,
assigns, employees, officers, directors, affiliates, subsidiaries, or Member
which are related to this Agreement. 
Prior to initiating arbitration, the parties shall first meet
face-to-face to effect a resolution of the differences.  Any differences which the parties are unable
to resolve in said face-to-face meeting shall be heard and finally settled at a
mutually agreed upon location by the parties, by binding arbitration in
accordance with the Commercial Rules of the American Arbitration
Association.  If the parties do not agree
upon a location, the arbitration proceeding shall be conducted in Dallas,
Texas.  Any award entered in any such
arbitration shall be final, binding, and may be entered and enforced in any
court of competent jurisdiction. The arbitrator shall make such orders, conduct
and schedule all proceedings in connection with the arbitration so that final
arbitration commences no less than thirty (30) days and concludes no later than
seventy-five (75) days after a party files the initial notice of arbitration,
and so that the final arbitration award is made and delivered to the parties
within ninety (90) days after the filing of the initial notice of
arbitration.  The cost of such
arbitration shall be apportioned as determined by the arbitrator, in any manner
determined by him/her based upon the fault or lack thereof by the respective
parties.  If the cost of such arbitration
is not apportioned by the arbitrator, then the cost shall be borne equally
between the parties hereto.  Nothing
herein contained shall be construed as preventing any party from instituting
legal or equitable action against any of the other parties for temporary or
similar provisional relief to the full extent permitted under the laws
applicable to this Agreement, or any such other written agreement between the
parties or the performance hereof or thereof or otherwise pending final
settlement of any dispute, difference or question by arbitration.  Any such provisional relieve may be modified
or amended in any way by the arbitrator at any time after his appointment.

	
  

  	
   

  	
  /s/ BF

  	
   

  	
  /s/ MO

  	
   

  
	
   

  	
   

  	
  Initials

  	
   

  	
  Initials

  

 

 25
 

IN WITNESS WHEREOF, the parties hereto have set forth
their hands and seals as of the day and year first above written.

	
   

  	
  VCG HOLDING COMPANY

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Micheal L
  Ocello

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN PRODUCTIONS
  JGC FORT WORTH, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan S.
  Foster

  	
   

  
	
   

  	
  Title:

  	
  Chief Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bryan S.
  Foster

  	
   

  
	
   

  	
  Bryan S. Foster,
  Individually

  
							

 

 26

BILL OF
SALE

Bryan S. Foster (“Seller”)
does hereby sell, transfer, assign and convey unto VCG  Holding Company, a Colorado corporation (“VCG”)
Seller’s 100% unit interest in Golden
Productions JGC Forth Worth, L.L.C., a Texas limited liability company (“Seller’s Unit Interest”).

The Seller hereby covenants
and warrants that the (i) Seller is the lawful owner of  Seller’s Unit Interest, and Seller shall
defend title to Seller’s Unit Interest against the claims and demands of all persons; (ii)
Seller’s Unit Interest are free from all liens, claims, charges and encumbrances; and (iii) Seller has the right to
sell Seller’s Unit Interest.

IN WITNESS WHEREOF, the
Seller has executed and delivered this BILL OF SALE effective as of the 17th day of September, 2007.

	
   

  	
  BRYAN S. FOSTER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Bryan S. Foster

  	
   

  	
   

  
	
   

  	
  BRYAN S. FOSTER

  	
   

  
				

 

BILL OF SALE FOR IMPROVEMENTS,

FIXTURES
& PERSONAL PROPERTY

Bryan S. Foster
and Golden Productions JGC Fort Worth, LLC, a Texas limited liability company,
d/b/a Jaguar’s Gold Club Fort Worth (“Sellers”) does hereby sell. transfer,
assign and convey unto VCG Holding Company, a Colorado corporation (“VCG”)
Seller’s 100% interest in the Improvements, Fixtures and Personal Property
Interests located at 12325 Calloway Cemetery Road, Fort Worth, Texas located
on, but not with the land as described in the legal description attached hereto
and made a part hereof as Exhibit “A” (“Seller’s Improvements, Fixtures and
Personal Property Interests “) as set forth in greater detail hereinbelow.

Not included in this Bill of Sale for
Improvements, Fixtures and Personal Property is the land located in Tarrant
County, Texas and more fully described in Exhibit “A” attached hereto
and made a part hereof for all purposes, together with all of the easements,
rights of way, privileges, liberties, hereditaments, strips and gores, streets,
alleys, passages, ways, waters, watercourses, rights and appurtenances
thereunto belonging or appertaining, and all of the estate, right, title,
interest, claim or demand whatsoever of Grantor therein and in the streets and
ways adjacent thereto, either in law or in equity (collectively, the “Laud);

Sold, transferred, assigned and conveyed in this Bill of Sale for
Improvements, Fixtures and Personal Property are the structure or buildings,
and all additions and improvements thereto, erected upon the Land, including
all buildings materials and Fixtures (hereinafter defined) now forming a part
of said structures or buildings, or delivered to the Land and intended to be
installed in such structures or buildings (collectively the “Improvements”); as
well as,’

All systems, devices, machinery, apparatus, equipment, fittings,
appliances and fixtures of every kind and nature whatsoever located on the Land
or the Improvements, including all electrical, anti-pollution, heating,
lighting, laundry, incinerating, power, air-conditioning, plumbing, lifting,
cleaning, fire prevention, fire extinguishing, refrigerating, ventilating,
communication, garage and cooking systems, devices, machinery, apparatus,
equipment, fittings, appliances and fixtures, and all engines, pipes, pumps,
tanks, motors, conduits, ducts, compressors and switchboards, and ail storm
doors and windows, dishwashers, attached cabinets and partitions not included
in the Improvements (collectively, the “Fixtures”); as well as,

All articles of personal property of very kind and nature whatsoever,
including but not limited to, all shades, awning, screens, furniture and
carpets, now and hereafter affixed to, attached to, placed upon, used or usable
in any way in connection with the use, enjoyment, occupancy or operation of the
Land, Improvements, or Fixtures, unless excepted on Schedule 5.11 of the
agreement set forth below and the Business as that term is defined in one
certain Purchase of

BILL OF SALE ON IMPROVEMENTS, FIXTURES &
PERSONAL PROPERTY - PAGE 1 [INITIALED: 
BF]

Membership Interest dated, 17th day of September, 2007 between Sellers
and VCG (collectively, the “Personal Property”);

The Seller hereby
covenants and warrants that the (i) Seller is the lawful owner of Seller’s
Improvements, Fixtures and Personal Property Interests and Seller shall defend
title to Seller’s Improvements, Fixtures and Personal Property Interests
against the claims and demands of all persons; (ii) Seller has the right to
sell Seller’s Improvements, Fixtures and Personal Property Interests.

Upon the
termination of the Deed of Ground Lease described in the attached Memorandum of
Deed of Ground Lease and Key Provisions Summary attached hereto as Exhibit “B”,
the title and ownership of the Improvements, Fixtures and Personalty as
described herein shall revert back to Bryan S. Foster.

IN WITNESS
WHEREOF, the Seller has executed and delivered this BILL OF SALE FOR IMPROVEMENTS,
FIXTURES & PERSONAL PROPERTY effective as of the 17th day of September,
2007.

	
   

  	
  BRYAN S. FOSTER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  BRYAN S. FOSTER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDEN PRODUCTIONS JGC FORT WORTH,

  
	
   

  	
  LLC, a Texas limited liability company, d/b/a

  
	
   

  	
  JAGUAR’S GOLD CLUB FORT WORTH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster, Sole Member and

  
	
   

  	
  Chief Manager

  

 

BILL OF SALE ON IMPROVEMENTS, FIXTURES & PERSONAL PROPERTY PAGE 2
[INITIALED:  BF]

all that certain
tract, parcel, or lot of land located in the J. W. Calloway Survey, Abstract
No. 336, City of Fort Worth, County of Tarrant, Texas, according to the deed
recorded in Volume 17130, Page 375, Deed Records, and County Clerks Document
No. D206221398 Tarrant County, Texas, and being more particularly described by
metes and bounds as follows:

BEGINNING at a point in
the East line of Lot 1, Block 1, Calloway Addition an addition to the City of
Fort Worth, Tarrant County, Texas according to the plat recorded in Cabinet A,
Slide 9943 Plat Records, Tarrant County, Texas, lying S00°03’05”W a distance of
72.35 feet from the North corner of said Lot 1;

THENCE S00°03’05”W, a
distance of 334.01 feet along said East line to a point at the Southeast corner
of said Lot I;

THENCE N89°52’22”W, a
distance of 534.27 feet along the South line of said Lot 1 to a point at the
Southwest corner of said Lot 1;

THENCE along the Westerly
line of said Lt 1 as follows:

1. N47°24’53”W, a
distance of 83.54 feet to a point;

2. N02°02’23”W, a
distance of 14.52 feet to a point;

3. S89°52’22”E, a
distance of 46.16 feet to a point;

4. N00°07’38”E a distance
of 12.68 feet to a point;

THENCE N89°52’22”W, a
distance of 26.96 feet to a point lying 35.00 feet perpendicular from the west
line of a tract of land described in the deed to Jerry Spencer, L.P. recorded
in Volume 17131, Page 244, Deed Records, Tarrant County, Texas;

THENCE N02°14’36”W, a
distance of 114.30 feet along a line 35 feet Easterly of and parallel with said
West line of Spencer tract to a point:

THENCE Easterly, 381.36
feet along a non tangent curve to the left, having a radius of 1,010.00 feet, a
central angle of 21°38’02” and a chord bearing N69°07’01”E, 379.10 feet to a
point;

THENCE S89°56’55”E, a
distance of 227.66 feet to the point of beginning, containing 3.769 acres of
land.

The bearings recited
hereon are oriented to the plat of Lot 1, Block 1, Calloway Addition recorded
in Cab. A, Sld. 9943, Plat Records, Tarrant County. Texas

[RIGHT-HAND CORNER
CONTAINS STAMP:  “EXHIBIT A”]

MEMORANDUM OF DEED OF GROUND
LEASE

AND KEY
PROVISIONS SUMMARY

	
  Effective Date:

  	
  September 17,2007

  
	
  Landlord:

  	
  Bryan S. Foster

  
	
  Tenant:

  	
  VCG Holding Company, a Colorado corporation

  
	
  Land and Leased Premises:

  	
  That certain parcel of land, containing
  approximately 3769 acres, located at 12325 Calloway Cemetery Road, in the
  City of Fort Worth, County of Tarrant, State of Texas, and more particularly
  described on Exhibit “A”

  
	
  Notices:

  	
  Landlord:

  	
  Tenant:

  
	
   

  	
  Bryan S. Foster

  2171 Manana Drive

  Dallas, Texas 75243

  	
  VCG Corporation

  c/o Troy Lowry

  390 Union Blvd., Suite 540

  Lakewood, CO 80228

   

  
	
   

  	
  With a copy to:

  	
  With a copy to:

  
	
   

  	
  Kevin Richardson

  6716 Valley View Lane

  Sachse, TX 75048

  Art Selander, Esq.

  Quilling, Selander, Cummiskey & Lownds, P.C.

  2001 Bryan Street, Suite 1800

  Dallas, TX 75201

   

  	
  VCG Corporation

  c/o Michael Ocello

  390 Union Blvd., Suite 540

  Lakewood, CO 80228

  Martin A. Grusin

  The Law Offices of Martin A. Grusin, P.C.

  780 Ridge Lake Blvd., Suite 202

  Memphis, TN 38120

   

  
	
  Lease Commencement Date:

  	
  September 17, 2007

  
	
  Rent Commencement Date:

  	
  September 17, 2007

  
	
  Expiration Date (Initial Term):

  	
  September 30, 2012

  
	
  Lease Term:

  	
  Initial Term – five (5) years (Section 1.1)

  Renewal Terms – four (4) terms of five (5) years
  each (Section 1.2)

  
	
  Initial Monthly Rent:

  	
  $20,000.00

  
	
  2nd Term Monthly
  Rent:

  	
  (if renewed) $22,000.00

  
	
  3rd Term Monthly
  Rent:

  	
  (if renewed) $24,200.00

  
	
  4th Term Monthly
  Rent:

  	
  (if renewed) $26,600.00

  
	
  5th Term Monthly
  Rent

  	
  (if renewed) $29,260.00

  
	
  Permitted Uses:

  	
  Solely for the operation of an adult entertainment
  facility or adult cabaret or for such other lawful purpose as Tenant may
  elect, so long as Tenant maintains a Specialized Certificate of Occupancy or
  the equivalent to operate as an adult cabaret (Section 1.4)

  
	
  Broker

  	
  None

  
	
  Exhibits

  	
  Exhibit “A” – Legal Description

  

 

If there are any inconsistencies
between this Memorandum of Deed of Ground Lease and Key Provisions Summary and
the other provisions of the Deed of Ground Lease, then the Deed of Ground Lease
shall control.

[RIGHT-HAND CORNER
CONTAINS STAMP:  “EXHIBIT B”]

 

	
  

  	
  LANDLORD

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  BRYAN S. FOSTER

  

 

STATE OF TEXAS                              §

COUNTY OF DALLAS                       §

This instrument
was acknowledged before me this 17th day of September, 2007, by BRYAN S FOSTER.

[NOTARY STAMP:  CHRISTINE M. PRICE, NOTARY PUBLIC, STATE OF
TEXAS, MY COMMISSION EXPIRES MARCH 20, 2010]

	
   

  	
  /s/ Christine M. Price

  	
   

  
	
   

  	
  Notary Public, State of Texas

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT

  
	
   

  	
   

  
	
   

  	
  VCG CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael L. Ocello

  	
   

  
	
   

  	
  Michael Ocello, President

  
				

 

STATE OF TEXAS                              §

COUNTY OF DALLAS                       §

This instrument
was acknowledged before me this 17th day of September, 2007, by Michael Ocello,
President of VCG CORPORATION on behalf of and as the act and deed of said
corporation.

[NOTARY STAMP:  CHRISTINE M. PRICE, NOTARY PUBLIC, STATE OF TEXAS,
MY COMMISSION EXPIRES MARCH 20, 2010]

	
   

  	
  /s/ Christine M. Price

  	
   

  
	
   

  	
  Notary Public, State of Texas

  

 

 

SCHEDULE 4.1(b)

EXCEPTIONS TO
STATEMENT ON LOST RECORDS

Bryan S. Foster
hereby states and affirms the following as part of the purchase of the
Membership Interest agreement dated the 17th day of September, 2007, by and among VCG
Holding Company and Golden Productions JGC Fort Worth, LLC and himself
(Agreement):

1.             He is the sole owner of all of the
interests (Units) of Golden Productions JGC Fort Worth, LLC (the Business); and

2.             That the Units, certificates,
membership books, membership transfer ledgers, minute books, regulations, and
seals (if any) of the Business either do not exist any more or are lost; and

3.             Nothing contained in the items set
forth in 2 above in any way has or had any effect on his ability and authority
to perform all of his and the Business’ obligations, representations, covenants
and warranties contained in the Agreement, nor does same have any Material
Adverse Effect as that term is defined in the Agreement on the Business.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster

  

 

SCHEDULE 4.1(c)

RESIGNATION OF
MANAGERS, OFFICERS AND DIRECTORS

Bryan S. Foster
hereby states that he owns clear of all liens and encumbrances of any kind all
the interests (Units) and is the sole member of Golden Productions JGC Fort
Worth, LL, and that he and all officers, directors and managers (not
operational managers, that is the persons designated to manage the day-to-day
actual operations of the Business) have resigned or been discharged from their
positions as such.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster

  

 

SCHEDULE 4.1(g)

TRANSITIONAL HELP
OF MEMBER

Member or his
designated representative shall assist in transition of the Business for ninety
(90) days following the Closing in a reasonable manner fulfilling all
reasonable requests to Purchaser for assistance in the transaction without pay.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster

  

 

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Two Months Ending February 28, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover
  Charge

  	
   

  	
  $

  	
  101,180.32

  	
   

  	
  61.47

  	
   

  	
  $

  	
  101,180.32

  	
   

  	
  61.47

  	
   

  
	
  Sales-Food &
  Beverages

  	
   

  	
  18,109.00

  	
   

  	
  11.00

  	
   

  	
  18,109.00

  	
   

  	
  11.00

  	
   

  
	
  Sales-Cigars

  	
   

  	
  758.00

  	
   

  	
  0.46

  	
   

  	
  758.00

  	
   

  	
  0.46

  	
   

  
	
  Sales-Champagne

  	
   

  	
  270.00

  	
   

  	
  0.16

  	
   

  	
  270.00

  	
   

  	
  0.16

  	
   

  
	
  Sales-Vending

  	
   

  	
  1,870.00

  	
   

  	
  1.14

  	
   

  	
  1,870.00

  	
   

  	
  1.14

  	
   

  
	
  Sales-Dancer’s
  House Fee

  	
   

  	
  24,707.00

  	
   

  	
  15.01

  	
   

  	
  24,707.00

  	
   

  	
  15.01

  	
   

  
	
  Sales-Dancer’s
  Merchandise

  	
   

  	
  7,567.50

  	
   

  	
  4.60

  	
   

  	
  7,567.50

  	
   

  	
  4.60

  	
   

  
	
  Sales-Dancer’s
  Skips

  	
   

  	
  1,700.00

  	
   

  	
  1.03

  	
   

  	
  1,700.00

  	
   

  	
  1.03

  	
   

  
	
  Sales-Dancer’s
  Booths

  	
   

  	
  6,160.00

  	
   

  	
  3.74

  	
   

  	
  6,160.00

  	
   

  	
  3.74

  	
   

  
	
  Sales-Dancer’s
  Fines

  	
   

  	
  758.00

  	
   

  	
  0.46

  	
   

  	
  758.00

  	
   

  	
  0.46

  	
   

  
	
  Sales-Poker Chip
  Fee

  	
   

  	
  1,534.50

  	
   

  	
  0.93

  	
   

  	
  1,534.50

  	
   

  	
  0.93

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  164,614.32

  	
   

  	
  100.00

  	
   

  	
  164,614.32

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of
  Sales-Food & Bev

  	
   

  	
  640.00

  	
   

  	
  0.39

  	
   

  	
  640.00

  	
   

  	
  0.39

  	
   

  
	
  Cost of
  Sales-Contract Labor

  	
   

  	
  4,525.00

  	
   

  	
  2.75

  	
   

  	
  4,525.00

  	
   

  	
  2.75

  	
   

  
	
  Cost of
  Sales-Tobacco

  	
   

  	
  1,112.82

  	
   

  	
  0.68

  	
   

  	
  1,112.82

  	
   

  	
  0.68

  	
   

  
	
  Vending Supplies

  	
   

  	
  4,049.62

  	
   

  	
  2.46

  	
   

  	
  5,405.89

  	
   

  	
  3.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of
  Sales

  	
   

  	
  10,327.44

  	
   

  	
  6.27

  	
   

  	
  11,683.71

  	
   

  	
  7.10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  154,286.88

  	
   

  	
  93.73

  	
   

  	
  152,930.61

  	
   

  	
  92.90

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax
  Payable

  	
   

  	
  8,797.56

  	
   

  	
  5.34

  	
   

  	
  8,797.56

  	
   

  	
  5.34

  	
   

  
	
  Advertising
  Expense

  	
   

  	
  17,070.35

  	
   

  	
  10.37

  	
   

  	
  17,124.35

  	
   

  	
  10.40

  	
   

  
	
  Decorating

  	
   

  	
  703.62

  	
   

  	
  0.43

  	
   

  	
  703.62

  	
   

  	
  0.43

  	
   

  
	
  Auto Expenses

  	
   

  	
  373.53

  	
   

  	
  0.23

  	
   

  	
  422.03

  	
   

  	
  0.26

  	
   

  
	
  Contract Labor

  	
   

  	
  1,000.00

  	
   

  	
  0.61

  	
   

  	
  1,000.00

  	
   

  	
  0.61

  	
   

  
	
  Bar Supplies

  	
   

  	
  3,372,64

  	
   

  	
  2.05

  	
   

  	
  6,548.33

  	
   

  	
  3.98

  	
   

  
	
  Cash Over and
  Short

  	
   

  	
  (997.27

  	
  )

  	
  (0.61

  	
  )

  	
  (997.27

  	
  )

  	
  (0.61

  	
  )

  
	
  Insurance
  Expense

  	
   

  	
  675.00

  	
   

  	
  0.41

  	
   

  	
  675.00

  	
   

  	
  0.41

  	
   

  
	
  Laundry and
  Cleaning Exp

  	
   

  	
  290.12

  	
   

  	
  0.18

  	
   

  	
  290.12

  	
   

  	
  0.18

  	
   

  
	
  Janitorial

  	
   

  	
  7,174.12

  	
   

  	
  4.36

  	
   

  	
  8,009.19

  	
   

  	
  4.87

  	
   

  
	
  Legal and
  Professional Expense

  	
   

  	
  270.63

  	
   

  	
  0.16

  	
   

  	
  8,156.55

  	
   

  	
  4.95

  	
   

  
	
  Licenses Expense

  	
   

  	
  500.00

  	
   

  	
  0.30

  	
   

  	
  500.00

  	
   

  	
  0.30

  	
   

  
	
  Maintenance
  Expense

  	
   

  	
  3,175.99

  	
   

  	
  1.93

  	
   

  	
  3,654.15

  	
   

  	
  2.22

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.02

  	
   

  
	
  Equipment –
  Furnishings

  	
   

  	
  2,464.67

  	
   

  	
  1.50

  	
   

  	
  13,579.39

  	
   

  	
  8.25

  	
   

  
	
  Computer &
  POS

  	
   

  	
  99.00

  	
   

  	
  0.06

  	
   

  	
  2,865.25

  	
   

  	
  1.74

  	
   

  
	
  Printing &
  Copies

  	
   

  	
  272.78

  	
   

  	
  0.17

  	
   

  	
  479.75

  	
   

  	
  0.29

  	
   

  
	
  Office Expense

  	
   

  	
  1,721.52

  	
   

  	
  1.05

  	
   

  	
  2,172.96

  	
   

  	
  1.32

  	
   

  
	
  Outside Services

  	
   

  	
  1,106.98

  	
   

  	
  0.67

  	
   

  	
  1,106.98

  	
   

  	
  0.67

  	
   

  
	
  Payroll Tax
  Expense

  	
   

  	
  1,932.32

  	
   

  	
  1.17

  	
   

  	
  1,932.32

  	
   

  	
  1.17

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.42

  	
   

  
	
  Rent or Lease
  Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.05

  	
   

  
	
  Repairs Expense

  	
   

  	
  2,718.62

  	
   

  	
  1.65

  	
   

  	
  3,290.47

  	
   

  	
  2.00

  	
   

  
	
  Sales Promotion

  	
   

  	
  7,498.71

  	
   

  	
  4.56

  	
   

  	
  7,498.71

  	
   

  	
  4.56

  	
   

  
	
  Supplies Expense

  	
   

  	
  1,331.43

  	
   

  	
  0.81

  	
   

  	
  1,331,43

  	
   

  	
  0.81

  	
   

  
	
  Taxi Commission

  	
   

  	
  365.00

  	
   

  	
  0.22

  	
   

  	
  365.00

  	
   

  	
  0.22

  	
   

  
	
  Telephone
  Expense

  	
   

  	
  1,343.70

  	
   

  	
  0.82

  	
   

  	
  1,343.70

  	
   

  	
  0.82

  	
   

  
	
  Travel Expense

  	
   

  	
  972.00

  	
   

  	
  0.59

  	
   

  	
  972.00

  	
   

  	
  0.59

  	
   

  
	
  Salaries Expense

  	
   

  	
  30,026.15

  	
   

  	
  18.24

  	
   

  	
  34,526.15

  	
   

  	
  20.97

  	
   

  
	
  Utilities
  Expense

  	
   

  	
  5,327.74

  	
   

  	
  3.24

  	
   

  	
  5,577.74

  	
   

  	
  3.39

  	
   

  
	
  Other Expense

  	
   

  	
  4,514.27

  	
   

  	
  2.74

  	
   

  	
  6,130,75

  	
   

  	
  3.72

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Expenses

  	
   

  	
  104,101.18

  	
   

  	
  63.24

  	
   

  	
  138,877.96

  	
   

  	
  84.37

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  50,185.70

  	
   

  	
  30.49

  	
   

  	
  $

  	
  14,052.65

  	
   

  	
  8.54

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Three Months Ending March 31, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  128,355.00

  	
   

  	
  57.10

  	
   

  	
  $

  	
  229,535.32

  	
   

  	
  58.94

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  22,400.00

  	
   

  	
  9.96

  	
   

  	
  40,509.00

  	
   

  	
  10.40

  	
   

  
	
  Sales-Cigars

  	
   

  	
  1,200.00

  	
   

  	
  0.53

  	
   

  	
  1,958.00

  	
   

  	
  0.50

  	
   

  
	
  Sales-Champagne

  	
   

  	
  450.00

  	
   

  	
  0.20

  	
   

  	
  720.00

  	
   

  	
  0.18

  	
   

  
	
  Sales-Vending

  	
   

  	
  1,732.00

  	
   

  	
  0.77

  	
   

  	
  3,602.00

  	
   

  	
  0.92

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  35,731.00

  	
   

  	
  15.90

  	
   

  	
  60,438.00

  	
   

  	
  15.52

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  7,387.00

  	
   

  	
  3.29

  	
   

  	
  14,954.50

  	
   

  	
  3.84

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  2,980.00

  	
   

  	
  1.33

  	
   

  	
  4,680.00

  	
   

  	
  1.20

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  17,698.00

  	
   

  	
  7.87

  	
   

  	
  23,858.00

  	
   

  	
  6.13

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  1,644.00

  	
   

  	
  0.73

  	
   

  	
  2,402.00

  	
   

  	
  0.62

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  5,216.50

  	
   

  	
  2.32

  	
   

  	
  6,751.00

  	
   

  	
  1.73

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  224,793.50

  	
   

  	
  100.00

  	
   

  	
  389,407.82

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  1,976.86

  	
   

  	
  0.88

  	
   

  	
  2,616.86

  	
   

  	
  0.67

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  162.00

  	
   

  	
  0.07

  	
   

  	
  4,687.00

  	
   

  	
  1.20

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  255.00

  	
   

  	
  0.11

  	
   

  	
  1,367.82

  	
   

  	
  0.35

  	
   

  
	
  Vending Supplies

  	
   

  	
  1,832.56

  	
   

  	
  0.82

  	
   

  	
  7,238.45

  	
   

  	
  1.86

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  4,226.42

  	
   

  	
  1.88

  	
   

  	
  15,910.13

  	
   

  	
  4.09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  220,567.08

  	
   

  	
  98.12

  	
   

  	
  373,497,69

  	
   

  	
  95.91

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  11,557.10

  	
   

  	
  5.14

  	
   

  	
  20,354.66

  	
   

  	
  5.23

  	
   

  
	
  Advertising Expense

  	
   

  	
  16,330.00

  	
   

  	
  7.26

  	
   

  	
  33,454.35

  	
   

  	
  8.59

  	
   

  
	
  Decorating

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  703.62

  	
   

  	
  0.18

  	
   

  
	
  Auto Expenses

  	
   

  	
  880.36

  	
   

  	
  0.39

  	
   

  	
  1,302.39

  	
   

  	
  0.33

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.26

  	
   

  
	
  Bar Supplies

  	
   

  	
  335.28

  	
   

  	
  0.15

  	
   

  	
  6,883.61

  	
   

  	
  1.77

  	
   

  
	
  Cash Over and Short

  	
   

  	
  (227.96

  	
  )

  	
  (0.10

  	
  )

  	
  (1,225.23

  	
  )

  	
  (0.31

  	
  )

  
	
  Insurance Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  675.00

  	
   

  	
  0.17

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  322.78

  	
   

  	
  0.14

  	
   

  	
  612.90

  	
   

  	
  0.16

  	
   

  
	
  Janitorial

  	
   

  	
  5,717.59

  	
   

  	
  2.54

  	
   

  	
  13,726.78

  	
   

  	
  3.53

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  138.95

  	
   

  	
  0.06

  	
   

  	
  8,295.50

  	
   

  	
  2.13

  	
   

  
	
  Licenses Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  500.00

  	
   

  	
  0.13

  	
   

  
	
  Maintenance Expense

  	
   

  	
  567.06

  	
   

  	
  0.25

  	
   

  	
  4,221.21

  	
   

  	
  1.08

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.01

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  13,579.39

  	
   

  	
  3.49

  	
   

  
	
  Computer & POS

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  2,865.25

  	
   

  	
  0.74

  	
   

  
	
  Printing & Copies

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  479.75

  	
   

  	
  0.12

  	
   

  
	
  Office Expense

  	
   

  	
  874.57

  	
   

  	
  0.39

  	
   

  	
  3,047.53

  	
   

  	
  0.78

  	
   

  
	
  Outside Services

  	
   

  	
  2,746.54

  	
   

  	
  1.22

  	
   

  	
  3,853.52

  	
   

  	
  0.99

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  5,461.91

  	
   

  	
  2.43

  	
   

  	
  7,394.23

  	
   

  	
  1.90

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.18

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.02

  	
   

  
	
  Repairs Expense

  	
   

  	
  3,265.21

  	
   

  	
  1.45

  	
   

  	
  6,555.68

  	
   

  	
  1.68

  	
   

  
	
  Sales Promotion

  	
   

  	
  15,418.47

  	
   

  	
  6.86

  	
   

  	
  22,917.18

  	
   

  	
  5.89

  	
   

  
	
  Supplies Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,331,43

  	
   

  	
  0.34

  	
   

  
	
  Taxi Commission

  	
   

  	
  1,435.00

  	
   

  	
  0.64

  	
   

  	
  1,800.00

  	
   

  	
  0.46

  	
   

  
	
  Telephone Expense

  	
   

  	
  774.64

  	
   

  	
  0.34

  	
   

  	
  2,118.34

  	
   

  	
  0.54

  	
   

  
	
  Travel Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  972.00

  	
   

  	
  0.25

  	
   

  
	
  Salaries Expense

  	
   

  	
  38,475.28

  	
   

  	
  17.12

  	
   

  	
  73,001.43

  	
   

  	
  18.75

  	
   

  
	
  Utilities Expense

  	
   

  	
  4,510.63

  	
   

  	
  2.01

  	
   

  	
  10,088.60

  	
   

  	
  2.59

  	
   

  
	
  Other Expense

  	
   

  	
  7,839.35

  	
   

  	
  3.49

  	
   

  	
  13,970.60

  	
   

  	
  3.59

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Expenses

  	
   

  	
  116,423.26

  	
   

  	
  51.79

  	
   

  	
  255,301.22

  	
   

  	
  65.56

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  104,143.82

  	
   

  	
  46.33

  	
   

  	
  $

  	
  118,196.47

  	
   

  	
  30.35

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Four Months Ending April 30, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  124,665.00

  	
   

  	
  54.53

  	
   

  	
  $

  	
  354,200.32

  	
   

  	
  57.31

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  22,530.00

  	
   

  	
  9.86

  	
   

  	
  63,039.00

  	
   

  	
  10.20

  	
   

  
	
  Sales-Cigars

  	
   

  	
  1,153.00

  	
   

  	
  0.50

  	
   

  	
  3,111.00

  	
   

  	
  0.50

  	
   

  
	
  Sales-Champagne

  	
   

  	
  180.00

  	
   

  	
  0.08

  	
   

  	
  900.00

  	
   

  	
  0.15

  	
   

  
	
  Sales-Vending

  	
   

  	
  2,381.00

  	
   

  	
  1.04

  	
   

  	
  5,983.00

  	
   

  	
  0.97

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  37,959.00

  	
   

  	
  16.61

  	
   

  	
  98,397.00

  	
   

  	
  15.92

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  8,141.00

  	
   

  	
  3.56

  	
   

  	
  23,095.50

  	
   

  	
  3.74

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  4,860.00

  	
   

  	
  2.13

  	
   

  	
  9,540.00

  	
   

  	
  1.54

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  17,360.00

  	
   

  	
  7.59

  	
   

  	
  41,218.00

  	
   

  	
  6.67

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  1,684.00

  	
   

  	
  0.74

  	
   

  	
  4,086.00

  	
   

  	
  0.66

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  7,683.50

  	
   

  	
  3.36

  	
   

  	
  14,434.50

  	
   

  	
  2.34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  228,596.50

  	
   

  	
  100.00

  	
   

  	
  618,004.32

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  2,287.22

  	
   

  	
  1.00

  	
   

  	
  4,904.08

  	
   

  	
  0.79

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4,687.00

  	
   

  	
  0.76

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  525.00

  	
   

  	
  0.23

  	
   

  	
  1,892.82

  	
   

  	
  0.31

  	
   

  
	
  Vending Supplies

  	
   

  	
  1,969.23

  	
   

  	
  0.86

  	
   

  	
  9,207.68

  	
   

  	
  1.49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  4,781.45

  	
   

  	
  2.09

  	
   

  	
  20,691.58

  	
   

  	
  3.35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  223,815.05

  	
   

  	
  97.91

  	
   

  	
  597,312.74

  	
   

  	
  96.65

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  11,263.06

  	
   

  	
  4.93

  	
   

  	
  31,617.72

  	
   

  	
  5.12

  	
   

  
	
  Advertising Expense

  	
   

  	
  12,965.00

  	
   

  	
  5.67

  	
   

  	
  46,419.35

  	
   

  	
  7.51

  	
   

  
	
  Decorating

  	
   

  	
  378.88

  	
   

  	
  0.17

  	
   

  	
  1,082.50

  	
   

  	
  0.18

  	
   

  
	
  Auto Expenses

  	
   

  	
  728.92

  	
   

  	
  0.32

  	
   

  	
  2,031.31

  	
   

  	
  0.33

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.16

  	
   

  
	
  Bar Supplies

  	
   

  	
  994.81

  	
   

  	
  0.44

  	
   

  	
  7,878.42

  	
   

  	
  1.27

  	
   

  
	
  Cash Over and Short

  	
   

  	
  (181.79

  	
  )

  	
  (0.08

  	
  )

  	
  (1,407.02

  	
  )

  	
  (0.23

  	
  )

  
	
  Insurance Expense

  	
   

  	
  850.00

  	
   

  	
  0.37

  	
   

  	
  1,525.00

  	
   

  	
  0.25

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  380.02

  	
   

  	
  0.17

  	
   

  	
  992.92

  	
   

  	
  0.16

  	
   

  
	
  Janitorial

  	
   

  	
  5,454.40

  	
   

  	
  2.39

  	
   

  	
  19,181.18

  	
   

  	
  3.10

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  125.00

  	
   

  	
  0.05

  	
   

  	
  8,420.50

  	
   

  	
  1.36

  	
   

  
	
  Licenses Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  500.00

  	
   

  	
  0.08

  	
   

  
	
  Maintenance Expense

  	
   

  	
  1,106.28

  	
   

  	
  0.48

  	
   

  	
  5,327.49

  	
   

  	
  0.86

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.01

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  13,579.39

  	
   

  	
  2.20

  	
   

  
	
  Computer & POS

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  2,865.25

  	
   

  	
  0.46

  	
   

  
	
  Printing & Copies

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  479.75

  	
   

  	
  0.08

  	
   

  
	
  Office Expense

  	
   

  	
  325.92

  	
   

  	
  0.14

  	
   

  	
  3,373.45

  	
   

  	
  0.55

  	
   

  
	
  Outside Services

  	
   

  	
  1,881.00

  	
   

  	
  0.82

  	
   

  	
  5,734.52

  	
   

  	
  0.93

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  4,268.38

  	
   

  	
  1.87

  	
   

  	
  11,662.61

  	
   

  	
  1.89

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.11

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.01

  	
   

  
	
  Repairs Expense

  	
   

  	
  751.86

  	
   

  	
  0.33

  	
   

  	
  7,307.54

  	
   

  	
  1.18

  	
   

  
	
  Sales Promotion

  	
   

  	
  4,782.27

  	
   

  	
  2.09

  	
   

  	
  27,699.45

  	
   

  	
  4.48

  	
   

  
	
  Supplies Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,331,43

  	
   

  	
  0.22

  	
   

  
	
  Taxi Commission

  	
   

  	
  1,385.00

  	
   

  	
  0.61

  	
   

  	
  3,185.00

  	
   

  	
  0.52

  	
   

  
	
  Telephone Expense

  	
   

  	
  48.82

  	
   

  	
  0.02

  	
   

  	
  2,167.16

  	
   

  	
  0.35

  	
   

  
	
  Travel Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  972.00

  	
   

  	
  0.16

  	
   

  
	
  Salaries Expense

  	
   

  	
  36,631.03

  	
   

  	
  16.02

  	
   

  	
  109,632.46

  	
   

  	
  17.74

  	
   

  
	
  Utilities Expense

  	
   

  	
  5,027.24

  	
   

  	
  2.20

  	
   

  	
  15,115.61

  	
   

  	
  2.45

  	
   

  
	
  Other Expense

  	
   

  	
  7,525.99

  	
   

  	
  3.29

  	
   

  	
  21,396.59

  	
   

  	
  3.48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Expenses

  	
   

  	
  96,692.09

  	
   

  	
  42.30

  	
   

  	
  351,993.31

  	
   

  	
  56.96

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  127,122.96

  	
   

  	
  55.61

  	
   

  	
  $

  	
  245,319.43

  	
   

  	
  39.70

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Five Months Ending May 31, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  134,159.00

  	
   

  	
  55.25

  	
   

  	
  $

  	
  488,359.32

  	
   

  	
  56.73

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  22,920.00

  	
   

  	
  9.44

  	
   

  	
  85,959.00

  	
   

  	
  9.99

  	
   

  
	
  Sales-Cigars

  	
   

  	
  625.00

  	
   

  	
  0.26

  	
   

  	
  3,736.00

  	
   

  	
  0.43

  	
   

  
	
  Sales-Champagne

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  900.00

  	
   

  	
  0.10

  	
   

  
	
  Sales-Vending

  	
   

  	
  2,093.00

  	
   

  	
  0.86

  	
   

  	
  8,076.00

  	
   

  	
  0.94

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  43,725.00

  	
   

  	
  18.01

  	
   

  	
  142,122.00

  	
   

  	
  16.51

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  7,723.00

  	
   

  	
  3.18

  	
   

  	
  30,818.50

  	
   

  	
  3.58

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  6,580.00

  	
   

  	
  2.71

  	
   

  	
  16,120.00

  	
   

  	
  1.87

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  12,688.00

  	
   

  	
  5.22

  	
   

  	
  53,906.00

  	
   

  	
  6.26

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  2,632.00

  	
   

  	
  1.08

  	
   

  	
  6,718.00

  	
   

  	
  0.78

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  9,693.75

  	
   

  	
  3.99

  	
   

  	
  24,128.25

  	
   

  	
  2.80

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  242,838.75

  	
   

  	
  100.00

  	
   

  	
  860,843.07

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  2,381.71

  	
   

  	
  0.98

  	
   

  	
  7,285.79

  	
   

  	
  0.85

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4,687.00

  	
   

  	
  0.54

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  139.00

  	
   

  	
  0.06

  	
   

  	
  2,031.82

  	
   

  	
  0.24

  	
   

  
	
  Vending Supplies

  	
   

  	
  2,289.04

  	
   

  	
  0.94

  	
   

  	
  11,496.72

  	
   

  	
  1.34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  4,809.75

  	
   

  	
  1.98

  	
   

  	
  25,501.33

  	
   

  	
  2.96

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  238,029.00

  	
   

  	
  98.02

  	
   

  	
  835,341.74

  	
   

  	
  97.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  11,958.91

  	
   

  	
  4.92

  	
   

  	
  43,576.63

  	
   

  	
  5.06

  	
   

  
	
  Advertising Expense

  	
   

  	
  15,430.00

  	
   

  	
  6.35

  	
   

  	
  61,849.35

  	
   

  	
  7.18

  	
   

  
	
  Decorating

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,082.50

  	
   

  	
  0.13

  	
   

  
	
  Auto Expenses

  	
   

  	
  197.97

  	
   

  	
  0.08

  	
   

  	
  2,229.28

  	
   

  	
  0.26

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.12

  	
   

  
	
  Bar Supplies

  	
   

  	
  1,112.81

  	
   

  	
  0.46

  	
   

  	
  8,991.23

  	
   

  	
  1.04

  	
   

  
	
  Cash Over and Short

  	
   

  	
  1,959.87

  	
   

  	
  0.81

  	
   

  	
  552.85

  	
   

  	
  0.06

  	
   

  
	
  Insurance Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,525.00

  	
   

  	
  0.18

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  450.97

  	
   

  	
  0.19

  	
   

  	
  1,443.89

  	
   

  	
  0.17

  	
   

  
	
  Janitorial

  	
   

  	
  5,982.65

  	
   

  	
  2.46

  	
   

  	
  25,163.83

  	
   

  	
  2.92

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  8,420.50

  	
   

  	
  0.98

  	
   

  
	
  Licenses Expense

  	
   

  	
  1,100.80

  	
   

  	
  0.45

  	
   

  	
  1,600.80

  	
   

  	
  0.19

  	
   

  
	
  Maintenance Expense

  	
   

  	
  531.34

  	
   

  	
  0.22

  	
   

  	
  5,858.83

  	
   

  	
  0.68

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.00

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  13,579.39

  	
   

  	
  1.58

  	
   

  
	
  Computer & POS

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  2,865.25

  	
   

  	
  0.33

  	
   

  
	
  Printing & Copies

  	
   

  	
  139.64

  	
   

  	
  0.06

  	
   

  	
  619.39

  	
   

  	
  0.07

  	
   

  
	
  Office Expense

  	
   

  	
  200.48

  	
   

  	
  0.08

  	
   

  	
  3,573.93

  	
   

  	
  0.42

  	
   

  
	
  Outside Services

  	
   

  	
  1,717.59

  	
   

  	
  0.71

  	
   

  	
  7,452.11

  	
   

  	
  0.87

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  4,228.84

  	
   

  	
  1.74

  	
   

  	
  15,891.45

  	
   

  	
  1.85

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.08

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.01

  	
   

  
	
  Repairs Expense

  	
   

  	
  2,696.78

  	
   

  	
  1.11

  	
   

  	
  10,004.32

  	
   

  	
  1.16

  	
   

  
	
  Sales Promotion

  	
   

  	
  5,860.39

  	
   

  	
  2.41

  	
   

  	
  33,559.84

  	
   

  	
  3.90

  	
   

  
	
  Supplies Expense

  	
   

  	
  300.00

  	
   

  	
  0.12

  	
   

  	
  1,631.43

  	
   

  	
  0.19

  	
   

  
	
  Taxi Commission

  	
   

  	
  1,860.00

  	
   

  	
  0.77

  	
   

  	
  5,045.00

  	
   

  	
  0.59

  	
   

  
	
  Telephone Expense

  	
   

  	
  666.68

  	
   

  	
  0.27

  	
   

  	
  2,833.84

  	
   

  	
  0.33

  	
   

  
	
  Travel Expense

  	
   

  	
  64.72

  	
   

  	
  0.03

  	
   

  	
  1,036.72

  	
   

  	
  0.12

  	
   

  
	
  Salaries Expense

  	
   

  	
  34,376.96

  	
   

  	
  14.16

  	
   

  	
  144,009.42

  	
   

  	
  16.73

  	
   

  
	
  Utilities Expense

  	
   

  	
  7,976.10

  	
   

  	
  3.28

  	
   

  	
  23,091.71

  	
   

  	
  2.68

  	
   

  
	
  Other Expense

  	
   

  	
  7,577.12

  	
   

  	
  3.12

  	
   

  	
  29,073.71

  	
   

  	
  3.38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Expenses

  	
   

  	
  106,390.62

  	
   

  	
  43.81

  	
   

  	
  458,383.93

  	
   

  	
  53.25

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  131,638.38

  	
   

  	
  54.21

  	
   

  	
  $

  	
  376,957.81

  	
   

  	
  43.79

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Six Months Ending June 30, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  136,017.00

  	
   

  	
  56.26

  	
   

  	
  $

  	
  624,376.32

  	
   

  	
  56.63

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  24,329.00

  	
   

  	
  10.06

  	
   

  	
  110,288.00

  	
   

  	
  10.00

  	
   

  
	
  Sales-Cigars

  	
   

  	
  848.00

  	
   

  	
  0.35

  	
   

  	
  4,584.00

  	
   

  	
  0.42

  	
   

  
	
  Sales-Champagne

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  900.00

  	
   

  	
  0.08

  	
   

  
	
  Sales-Vending

  	
   

  	
  5,418.00

  	
   

  	
  2.24

  	
   

  	
  13,494.00

  	
   

  	
  1.22

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  41,255.00

  	
   

  	
  17.06

  	
   

  	
  183,377.00

  	
   

  	
  16.63

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  8,348.00

  	
   

  	
  3.45

  	
   

  	
  39,166.50

  	
   

  	
  3.55

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  3,740.00

  	
   

  	
  1.55

  	
   

  	
  19,860.00

  	
   

  	
  1.80

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  14,318.00

  	
   

  	
  5.92

  	
   

  	
  68,224.00

  	
   

  	
  6.19

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  2,200.00

  	
   

  	
  0.91

  	
   

  	
  8,918.00

  	
   

  	
  0.81

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  5,290.00

  	
   

  	
  2.19

  	
   

  	
  29,418.25

  	
   

  	
  2.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  241,763.00

  	
   

  	
  100.00

  	
   

  	
  1,102,606.07

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  2,429.62

  	
   

  	
  1.00

  	
   

  	
  9,715.41

  	
   

  	
  0.88

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4,687.00

  	
   

  	
  0.43

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  410.00

  	
   

  	
  0.17

  	
   

  	
  2,441,82

  	
   

  	
  0.22

  	
   

  
	
  Vending Supplies

  	
   

  	
  2,192.01

  	
   

  	
  0.91

  	
   

  	
  13,688.73

  	
   

  	
  1.24

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  5,031.63

  	
   

  	
  2.08

  	
   

  	
  30,532.96

  	
   

  	
  2.77

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  236,731.37

  	
   

  	
  97.92

  	
   

  	
  1,072,073.11

  	
   

  	
  97.23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  12,223.58

  	
   

  	
  5.06

  	
   

  	
  55,800.21

  	
   

  	
  5.06

  	
   

  
	
  Advertising Expense

  	
   

  	
  10,415.00

  	
   

  	
  4.31

  	
   

  	
  72,264.35

  	
   

  	
  6.55

  	
   

  
	
  Decorating

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,082.50

  	
   

  	
  0.10

  	
   

  
	
  Auto Expenses

  	
   

  	
  423.80

  	
   

  	
  0.18

  	
   

  	
  2,653.08

  	
   

  	
  0.24

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.09

  	
   

  
	
  Bar Supplies

  	
   

  	
  390.37

  	
   

  	
  0.16

  	
   

  	
  9.381.60

  	
   

  	
  0.85

  	
   

  
	
  Cash Over and Short

  	
   

  	
  136.59

  	
   

  	
  0.06

  	
   

  	
  689.44

  	
   

  	
  0.06

  	
   

  
	
  Insurance Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,525.00

  	
   

  	
  0.14

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  409.58

  	
   

  	
  0.17

  	
   

  	
  1,853.47

  	
   

  	
  0.17

  	
   

  
	
  Janitorial

  	
   

  	
  5,844.59

  	
   

  	
  2.42

  	
   

  	
  31,008.42

  	
   

  	
  2.81

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  8,420.50

  	
   

  	
  0.76

  	
   

  
	
  Licenses Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,600.80

  	
   

  	
  0.15

  	
   

  
	
  Maintenance Expense

  	
   

  	
  164.27

  	
   

  	
  0.07

  	
   

  	
  6,023.10

  	
   

  	
  0.55

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.00

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  13,579.39

  	
   

  	
  1.23

  	
   

  
	
  Computer & POS

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  2,865.25

  	
   

  	
  0.26

  	
   

  
	
  Printing & Copies

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  619.39

  	
   

  	
  0.06

  	
   

  
	
  Office Expense

  	
   

  	
  463.78

  	
   

  	
  0.19

  	
   

  	
  4,037.71

  	
   

  	
  0.37

  	
   

  
	
  Outside Services

  	
   

  	
  2,584.89

  	
   

  	
  1.07

  	
   

  	
  10,037.00

  	
   

  	
  0.91

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  6,526.75

  	
   

  	
  2.70

  	
   

  	
  22,418.20

  	
   

  	
  2.03

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.06

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.01

  	
   

  
	
  Repairs Expense

  	
   

  	
  627.32

  	
   

  	
  0.26

  	
   

  	
  10,631.64

  	
   

  	
  0.96

  	
   

  
	
  Sales Promotion

  	
   

  	
  9,561.75

  	
   

  	
  3.96

  	
   

  	
  43,121.59

  	
   

  	
  3.91

  	
   

  
	
  Supplies Expense

  	
   

  	
  267.76

  	
   

  	
  0.11

  	
   

  	
  1,899.19

  	
   

  	
  0.17

  	
   

  
	
  Taxi Commission

  	
   

  	
  1,075.00

  	
   

  	
  0.44

  	
   

  	
  6,120.00

  	
   

  	
  0.56

  	
   

  
	
  Telephone Expense

  	
   

  	
  652.11

  	
   

  	
  0.27

  	
   

  	
  3,485.95

  	
   

  	
  0.32

  	
   

  
	
  Travel Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,036.72

  	
   

  	
  0.09

  	
   

  
	
  Salaries Expense

  	
   

  	
  54,435.77

  	
   

  	
  22.52

  	
   

  	
  198,445.19

  	
   

  	
  18.00

  	
   

  
	
  Utilities Expense

  	
   

  	
  1,047.90

  	
   

  	
  0.43

  	
   

  	
  24,139.61

  	
   

  	
  2.19

  	
   

  
	
  Other Expense

  	
   

  	
  7,219.81

  	
   

  	
  2.99

  	
   

  	
  36,293.52

  	
   

  	
  3.29

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Expenses

  	
   

  	
  114,470.62

  	
   

  	
  47.35

  	
   

  	
  572,854.55

  	
   

  	
  51.95

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  122,260.75

  	
   

  	
  50.57

  	
   

  	
  $

  	
  499,218.56

  	
   

  	
  45.28

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Seven Months Ending July 31, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  136,238.00

  	
   

  	
  54.75

  	
   

  	
  $

  	
  760,614.32

  	
   

  	
  56.28

  	
   

  
	
  Sales-VIP Cover Charges

  	
   

  	
  30.00

  	
   

  	
  0.01

  	
   

  	
  30.00

  	
   

  	
  0.00

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  26,300.02

  	
   

  	
  10.57

  	
   

  	
  136,588.02

  	
   

  	
  10.11

  	
   

  
	
  Sales-Cigars

  	
   

  	
  521.00

  	
   

  	
  0.21

  	
   

  	
  5,105.00

  	
   

  	
  0.38

  	
   

  
	
  Sales-Champagne

  	
   

  	
  35.00

  	
   

  	
  0.01

  	
   

  	
  935.00

  	
   

  	
  0.07

  	
   

  
	
  Sales-Vending

  	
   

  	
  4,755.00

  	
   

  	
  1.91

  	
   

  	
  18,249.00

  	
   

  	
  1.35

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  39,837.00

  	
   

  	
  16.01

  	
   

  	
  223,214.00

  	
   

  	
  16.52

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  7,420.00

  	
   

  	
  2.98

  	
   

  	
  46,586.50

  	
   

  	
  3.45

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  5,860.00

  	
   

  	
  2.35

  	
   

  	
  25,720.00

  	
   

  	
  1.90

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  18,244.00

  	
   

  	
  7.33

  	
   

  	
  86,468.00

  	
   

  	
  6.40

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  2,412.00

  	
   

  	
  0.97

  	
   

  	
  11,330.00

  	
   

  	
  0.84

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  7,200.75

  	
   

  	
  2.89

  	
   

  	
  36,619.00

  	
   

  	
  2.71

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  248,852.77

  	
   

  	
  100.00

  	
   

  	
  1,351,458.84

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  2,515.32

  	
   

  	
  1.01

  	
   

  	
  12,240.73

  	
   

  	
  0.91

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  4,687.00

  	
   

  	
  0.35

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  164.00

  	
   

  	
  0.07

  	
   

  	
  2,605.82

  	
   

  	
  0.19

  	
   

  
	
  Vending Supplies

  	
   

  	
  2,270.35

  	
   

  	
  0.91

  	
   

  	
  15,959.08

  	
   

  	
  1.18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  4,959.67

  	
   

  	
  1.99

  	
   

  	
  35,492.63

  	
   

  	
  2.63

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  243,893.10

  	
   

  	
  98.01

  	
   

  	
  1,315,966.21

  	
   

  	
  97.37

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  12,369.93

  	
   

  	
  4.97

  	
   

  	
  68,170.14

  	
   

  	
  5.04

  	
   

  
	
  Advertising Expense

  	
   

  	
  10,215.00

  	
   

  	
  4.10

  	
   

  	
  82,479.35

  	
   

  	
  6.10

  	
   

  
	
  Decorating

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,082.50

  	
   

  	
  0.08

  	
   

  
	
  Auto Expenses

  	
   

  	
  234.98

  	
   

  	
  0.09

  	
   

  	
  2,888.06

  	
   

  	
  0.21

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.07

  	
   

  
	
  Bar Supplies

  	
   

  	
  557.46

  	
   

  	
  0.22

  	
   

  	
  9,939.06

  	
   

  	
  0.74

  	
   

  
	
  Cash Over and Short

  	
   

  	
  (57.95

  	
  )

  	
  (0.02

  	
  )

  	
  631.49

  	
   

  	
  0.05

  	
   

  
	
  Insurance Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,525.00

  	
   

  	
  0.11

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  356.58

  	
   

  	
  0.14

  	
   

  	
  2,210.05

  	
   

  	
  0.16

  	
   

  
	
  Janitorial

  	
   

  	
  8,604.80

  	
   

  	
  3.46

  	
   

  	
  39,613.22

  	
   

  	
  2.93

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  375.00

  	
   

  	
  0.15

  	
   

  	
  8,795.50

  	
   

  	
  0.65

  	
   

  
	
  Licenses Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,600.80

  	
   

  	
  0.12

  	
   

  
	
  Maintenance Expense

  	
   

  	
  589.00

  	
   

  	
  0.24

  	
   

  	
  6,612.10

  	
   

  	
  0.49

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.00

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  13,579.39

  	
   

  	
  1.00

  	
   

  
	
  Computer & POS

  	
   

  	
  311.50

  	
   

  	
  0.13

  	
   

  	
  3,176.75

  	
   

  	
  0.24

  	
   

  
	
  Printing & Copies

  	
   

  	
  250.00

  	
   

  	
  0.10

  	
   

  	
  869.39

  	
   

  	
  0.06

  	
   

  
	
  Office Expense

  	
   

  	
  651.00

  	
   

  	
  0.26

  	
   

  	
  4,688.71

  	
   

  	
  0.35

  	
   

  
	
  Outside Services

  	
   

  	
  2,495.56

  	
   

  	
  1,00

  	
   

  	
  12,532.56

  	
   

  	
  0.93

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  4,810.59

  	
   

  	
  1.93

  	
   

  	
  27,228.79

  	
   

  	
  2.01

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.05

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.01

  	
   

  
	
  Repairs Expense

  	
   

  	
  3,122.84

  	
   

  	
  1.25

  	
   

  	
  13,754.48

  	
   

  	
  1.02

  	
   

  
	
  Sales Promotion

  	
   

  	
  2,617.75

  	
   

  	
  1.05

  	
   

  	
  45,739.34

  	
   

  	
  3.38

  	
   

  
	
  Supplies Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,899.19

  	
   

  	
  0.14

  	
   

  
	
  Taxi Commission

  	
   

  	
  1,970.00

  	
   

  	
  0.79

  	
   

  	
  8,090.00

  	
   

  	
  0.60

  	
   

  
	
  Telephone Expense

  	
   

  	
  643.21

  	
   

  	
  0.26

  	
   

  	
  4,129.16

  	
   

  	
  0.31

  	
   

  
	
  Travel Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,036.72

  	
   

  	
  0.08

  	
   

  
	
  Salaries Expense

  	
   

  	
  42,667.50

  	
   

  	
  17.15

  	
   

  	
  241,112.69

  	
   

  	
  17.84

  	
   

  
	
  Utilities Expense

  	
   

  	
  10,185.56

  	
   

  	
  4.09

  	
   

  	
  34,325.17

  	
   

  	
  2.54

  	
   

  
	
  Other Expense

  	
   

  	
  7,104.75

  	
   

  	
  2.86

  	
   

  	
  43,398.27

  	
   

  	
  3.21

  	
   

  
	
  Total Expenses

  	
   

  	
  110,075.06

  	
   

  	
  44.23

  	
   

  	
  682,929.61

  	
   

  	
  50.53

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  133,818.04

  	
   

  	
  53.77

  	
   

  	
  $

  	
  633,036.60

  	
   

  	
  46.84

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Income Statement

For the Eight Months Ending August 31, 2007

	
   

  	
   

  	
  Current Month

  	
   

  	
   

  	
   

  	
  Year to Date

  	
   

  	
   

  	
   

  
	
  Revenues

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales-Cover Charge

  	
   

  	
  $

  	
  132,270.00

  	
   

  	
  54.68

  	
   

  	
  $

  	
  892,884.32

  	
   

  	
  56.04

  	
   

  
	
  Sales-VIP Cover Charges

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  30.00

  	
   

  	
  0.00

  	
   

  
	
  Sales-Food & Beverages

  	
   

  	
  24,861.00

  	
   

  	
  10.28

  	
   

  	
  161,449.02

  	
   

  	
  10.13

  	
   

  
	
  Sales-Cigars

  	
   

  	
  630.00

  	
   

  	
  0.26

  	
   

  	
  5,735.00

  	
   

  	
  0.36

  	
   

  
	
  Sales-Champagne

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  935.00

  	
   

  	
  0.06

  	
   

  
	
  Sales-Vending

  	
   

  	
  5,293.00

  	
   

  	
  2.19

  	
   

  	
  23,542.00

  	
   

  	
  1.48

  	
   

  
	
  Sales-Dancer’s House Fee

  	
   

  	
  44,270.00

  	
   

  	
  18.30

  	
   

  	
  267,484.00

  	
   

  	
  16.79

  	
   

  
	
  Sales-Dancer’s Merchandise

  	
   

  	
  6,902.00

  	
   

  	
  2.85

  	
   

  	
  53,488.50

  	
   

  	
  3.36

  	
   

  
	
  Sales-Dancer’s Skips

  	
   

  	
  5,660.00

  	
   

  	
  2.34

  	
   

  	
  31,380.00

  	
   

  	
  1.97

  	
   

  
	
  Sales-Dancer’s Booths

  	
   

  	
  15,465.00

  	
   

  	
  6.39

  	
   

  	
  101,933.00

  	
   

  	
  6.40

  	
   

  
	
  Sales-Dancer’s Fines

  	
   

  	
  2,245.00

  	
   

  	
  0.93

  	
   

  	
  13,575.00

  	
   

  	
  0.85

  	
   

  
	
  Sales-Poker Chip Fee

  	
   

  	
  4,289.50

  	
   

  	
  1.77

  	
   

  	
  40,908.50

  	
   

  	
  2.57

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Revenues

  	
   

  	
  241,885.50

  	
   

  	
  100.00

  	
   

  	
  1,593,344.34

  	
   

  	
  100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costs of Sales

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of Sales-Food & Bev

  	
   

  	
  3,215.84

  	
   

  	
  1.33

  	
   

  	
  15,456.57

  	
   

  	
  0.97

  	
   

  
	
  Cost of Sales-Contract Labor

  	
   

  	
  200.00

  	
   

  	
  0.08

  	
   

  	
  4,887.00

  	
   

  	
  0.31

  	
   

  
	
  Cost of Sales-Tobacco

  	
   

  	
  340.00

  	
   

  	
  0.14

  	
   

  	
  2,945.82

  	
   

  	
  0.18

  	
   

  
	
  Vending Supplies

  	
   

  	
  1,391.23

  	
   

  	
  0.58

  	
   

  	
  17,350.31

  	
   

  	
  1.09

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Cost of Sales

  	
   

  	
  5,147.07

  	
   

  	
  2.13

  	
   

  	
  40,639.70

  	
   

  	
  2.55

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Profit

  	
   

  	
  236,738.43

  	
   

  	
  97.87

  	
   

  	
  1,552,704.64

  	
   

  	
  97.45

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Tax Payable

  	
   

  	
  11,963.27

  	
   

  	
  4.95

  	
   

  	
  80,133.41

  	
   

  	
  5.03

  	
   

  
	
  Advertising Expense

  	
   

  	
  17,220.00

  	
   

  	
  7.12

  	
   

  	
  99,699.35

  	
   

  	
  6.26

  	
   

  
	
  Decorating

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,082.50

  	
   

  	
  0.07

  	
   

  
	
  Auto Expenses

  	
   

  	
  236.86

  	
   

  	
  0.10

  	
   

  	
  3,124.92

  	
   

  	
  0.20

  	
   

  
	
  Contract Labor

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,000.00

  	
   

  	
  0.06

  	
   

  
	
  Bar Supplies

  	
   

  	
  382.00

  	
   

  	
  0.16

  	
   

  	
  10,321.06

  	
   

  	
  0.65

  	
   

  
	
  Cash Over and Short

  	
   

  	
  (46.74

  	
  )

  	
  (0.02

  	
  )

  	
  5584.75

  	
   

  	
  0.04

  	
   

  
	
  Insurance Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,525.00

  	
   

  	
  0.10

  	
   

  
	
  Laundry and Cleaning Exp

  	
   

  	
  508.44

  	
   

  	
  0.21

  	
   

  	
  2,718.49

  	
   

  	
  0.17

  	
   

  
	
  Janitorial

  	
   

  	
  6,241.71

  	
   

  	
  2.58

  	
   

  	
  45,854.93

  	
   

  	
  2.88

  	
   

  
	
  Legal and Professional Expense

  	
   

  	
  200.00

  	
   

  	
  0.08

  	
   

  	
  8,995.50

  	
   

  	
  0.56

  	
   

  
	
  Licenses Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,600.80

  	
   

  	
  0.10

  	
   

  
	
  Maintenance Expense

  	
   

  	
  687.48

  	
   

  	
  0.28

  	
   

  	
  7,299.58

  	
   

  	
  0.46

  	
   

  
	
  Meals Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  35.42

  	
   

  	
  0.00

  	
   

  
	
  Equipment – Furnishings

  	
   

  	
  470.56

  	
   

  	
  0.19

  	
   

  	
  14,049.95

  	
   

  	
  0.88

  	
   

  
	
  Computer & POS

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  3,176.75

  	
   

  	
  0.20

  	
   

  
	
  Printing & Copies

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  869.39

  	
   

  	
  0.05

  	
   

  
	
  Office Expense

  	
   

  	
  267.39

  	
   

  	
  0.11

  	
   

  	
  4,956.10

  	
   

  	
  0.31

  	
   

  
	
  Outside Services

  	
   

  	
  1,948.44

  	
   

  	
  0.81

  	
   

  	
  14,481.00

  	
   

  	
  0.91

  	
   

  
	
  Payroll Tax Expense

  	
   

  	
  4,904.89

  	
   

  	
  2.03

  	
   

  	
  32,133.68

  	
   

  	
  2.02

  	
   

  
	
  Other Taxes

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  696.31

  	
   

  	
  0.04

  	
   

  
	
  Rent or Lease Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  90.00

  	
   

  	
  0.01

  	
   

  
	
  Repairs Expense

  	
   

  	
  965.16

  	
   

  	
  0.40

  	
   

  	
  14,719.64

  	
   

  	
  0.92

  	
   

  
	
  Sales Promotion

  	
   

  	
  7,409.69

  	
   

  	
  3.06

  	
   

  	
  53,149.03

  	
   

  	
  3.34

  	
   

  
	
  Supplies Expense

  	
   

  	
  240.00

  	
   

  	
  0.10

  	
   

  	
  2,139.19

  	
   

  	
  0.13

  	
   

  
	
  Taxi Commission

  	
   

  	
  2,445.00

  	
   

  	
  1.01

  	
   

  	
  10,535.00

  	
   

  	
  0.66

  	
   

  
	
  Telephone Expense

  	
   

  	
  649.70

  	
   

  	
  0.27

  	
   

  	
  4,778.86

  	
   

  	
  0.30

  	
   

  
	
  Travel Expense

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  1,036.72

  	
   

  	
  0.07

  	
   

  
	
  Salaries Expense

  	
   

  	
  39,626.70

  	
   

  	
  16.38

  	
   

  	
  280,739.39

  	
   

  	
  17.62

  	
   

  
	
  Wages Expense

  	
   

  	
  1,100.00

  	
   

  	
  0.45

  	
   

  	
  1,100.00

  	
   

  	
  0.07

  	
   

  
	
  Utilities Expense

  	
   

  	
  5,843.17

  	
   

  	
  2.42

  	
   

  	
  40,168.34

  	
   

  	
  2.52

  	
   

  
	
  Other Expense

  	
   

  	
  8,499.22

  	
   

  	
  3.51

  	
   

  	
  51,897.49

  	
   

  	
  3.26

  	
   

  
	
  Total Expenses

  	
   

  	
  111,762.94

  	
   

  	
  46.20

  	
   

  	
  794,692.55

  	
   

  	
  49.88

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Income

  	
   

  	
  $

  	
  124,975.49

  	
   

  	
  51.67

  	
   

  	
  $

  	
  758,012.09

  	
   

  	
  47.57

  	
   

  

 

For Management Purposes Only

[Initialed:  illegible]

 1

Golden Productions JGC Ft. Worth, LLC.

Balance Sheet

August 31, 2007

ASSETS

	
  Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash on Hand - Safe

  	
   

  	
  $

  	
  10,000.00

  	
   

  	
   

  	
   

  
	
  Cash in Bank

  	
   

  	
  (7,291.87

  	
  )

  	
   

  	
   

  
	
  Due to/From JGC Management

  	
   

  	
  (800.00

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Current
  Assets

  	
   

  	
   

  	
   

  	
  1,908.13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Property and
  Equipment

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Furniture and Fixtures

  	
   

  	
  81,100.26

  	
   

  	
   

  	
   

  
	
  Equipment

  	
   

  	
  11,787.43

  	
   

  	
   

  	
   

  
	
  Building Improvements

  	
   

  	
  6,240.38

  	
   

  	
   

  	
   

  
	
  Land Improvements

  	
   

  	
  11,000.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Property
  and Equipment

  	
   

  	
   

  	
   

  	
  111,128.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Other
  Assets

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Assets

  	
   

  	
   

  	
   

  	
  $

  	
  113,036.20

  	
   

  
								

 

LIABILITIES AND CAPITAL

	
  Current Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Current
  Liabilities

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-Term
  Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Long-Term
  Liabilities

  	
   

  	
   

  	
   

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dividends Paid

  	
   

  	
  $

  	
  (644,975.89

  	
  )

  	
   

  	
   

  
	
  Net Income

  	
   

  	
  758,012.09

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Capital

  	
   

  	
   

  	
   

  	
  113,036.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Liabilities &
  Capital

  	
   

  	
   

  	
   

  	
  $

  	
  113,036.20

  	
   

  
								

 

Unaudited - For Management Purposes Only

[Initialed:  illegible]

SCHEDULE 5.3(b)

EXCEPTIONS TO REFERENCE FINANCIAL DATA

NONE

[INITIALED:  BF]

SCHEDULE 5.3(c)

EXCEPTIONS TO MATERIAL ADVERSE EFFECT

NONE

[INITIALED:  BF]

SCHEDULE 5.5

EXCEPTIONS TO CONSENTS AND APPROVALS

City of Fort
Worth/Specialized Certificate of Occupancy Necessary to Operate the Business.

[INITIALED:  BF]

SCHEDULE 5.6

EXCEPTIONS TO LITIGATION

Case
No. 306-CV-302 styled Venture Plus Enterprises vs. Golden Productions JGC Fort Worth, LLC,  this case will be defended by Member who shall indemnify and hold harmless Purchaser.

[INITIALED:  BF]

SCHEDULE 5.7
 EXCEPTIONS TO COMPLIANCE WITH LAWS

NONE.

[INITIALED:  BF]

SCHEDULE 5.8
 EXCEPTIONS TO TAX MATTERS

NONE

[INITIALED:  BF]

 

SCHEDULE 5.9

DEED OF
GROUND LEASE

THIS
DEED OF GROUND LEASE (“LEASE”) is made the 17TH day of September, 2007, by and
between VCG Holding Company, a Colorado corporation (“VCG” or “Tenant”), and
Bryan S. Foster (“Landlord”).

RECITALS

A.         Landlord is the owner of
the Premises being commonly known as 12325 Calloway Cemetery Road, Fort Worth,
Texas as described in the legal description attached hereto and made a part
hereof as Exhibit “A” (“Premises” or “Leased Premises”).

B.             Landlord desires to
lease the Premises to Tenant, and Tenant desires to take and lease the Premises
from Landlord.

NOW,
therefore, for and in consideration of the rents reserved hereunder and the
terms and conditions hereof, Landlord hereby rents, demises, and leases to
Tenant, and Tenant takes and leases from Landlord the Premises, all upon the
following terms and. conditions:.

ARTICLE I

TERM OF
LEASE AND USE OF PREMISES

1.1       Term. The term of the
Lease shall commence on the 17th day of September, 2007, and shall end on the
30th day of September, 2012.

1.2       Extended Term.
Landlord shall grant to Tenant four (4) 5-year options to renew this Lease.
Tenant shall provide written notice of election to decline such option, 90 days
prior to the expiration of the initial or subsequent terms described above or
this Lease shall automatically extend to the succeeding renewal period. Each
option period shall be at an increased rate of 10% increase over the prior term’s
rental obligation.

1.3       Initial Rental
Obligation. Tenant shall pay Twenty Thousand Dollars ($20,000) to Landlord
on the l day of each month and continuing thereafter on a monthly basis for the
first term and each and every month during the term (“Monthly Rent”). Tenant
shall pay Landlord Nine Thousand Dollars ($9,000.00) on September 17, 2007 as
pro rated rent for September 17, 2007 though September 30, 2007.

1.4       Use of Premises. The
Leased Premises shall be used and occupied as an adult entertainment facility
or adult cabaret or for such other lawful purpose as Tenant may elect so long as
Tenant maintains a Specialized Certificate of Occupancy or the equivalent to
operate as an adult cabaret.

1.5       Compliance with the Law.
In its use and occupancy of the Leased Premises, and the exercise of its rights
hereunder, Tenant shall at its sole cost and

expense, promptly
comply with all federal, state, county, or municipal laws, ordinances, rules,
regulations, directives, orders, and/or requirements (collectively “Governmental
Regulations”) now in force or which may hereafter be in force with respect to
the Premises due specifically to Tenant’s use and occupancy of the Premises and
Tenant’s business conducted thereon. Tenant shall not permit any use of the
Leased Premises which would directly or indirectly violate any such law,
ordinance, regulation or direction, or which may be dangerous to any of the
personal property located at the Premises.

1.6       Assignment and Subletting
by Tenant. Tenant shall have the right to sublease all or any part of the
Leased Premises subject to the terms hereof without the consent of the
Landlord, so long as Tenant remains primarily liable for all terms hereof, and
the Landlord shall not be required to engage in any manner with the sub-tenant.

1.7       Assignment by. Landlord.
Landlord shall have the right to assign this Lease, collaterally or otherwise,
without Tenant’s consent, provided, however, that Landlord shall give written
notice to Tenant of any proposed assignment at least thirty (30) days prior
thereto. No assignment by Landlord shall alter the rights of Tenant hereunder,
and all of the recitals, terms, covenants, and conditions of this Lease shall
remain in full force and effect upon the assignment. Upon any assignment by
Landlord, Tenant shall make rental payments to the assignee unless and until
the assignee actually delivers to Tenant a written notice directing rental
payments to thereafter be made to the assignor. In the event of the transfer
and assignment by Landlord of its interest in the Lease and in the Premises to
a person expressly assuming Landlord’s obligations under this Lease, Landlord
shall remain liable hereunder unless released by the Tenant in which ease
Tenant agrees to look solely to such successor in interest of the Landlord for
performance of such obligations. Any security given Tenant to Landlord to
secure Tenant’s obligations hereunder may be assigned and transferred by
Landlord to such successor in interest and Landlord will thereby be discharged
of any further obligations relating thereto.

1.8       Security Deposit.
Tenant agrees to deposit with Landlord, the sum of Twenty Thousand Dollars
($20,000.00), which sum shall be held by Landlord, without liability for
interest, as security for performance of Tenant’s obligations under this Lease,
it being expressly understood and agreed that this security deposit is not an
advance rental deposit, or a measure of Landlord’s damages in ease of Tenant’s
default. Upon each occurrence of a Tenant Default (hereinafter defined),
Landlord may use all or part of the security deposit to pay past due rent or
other payments due Landlord under this Lease, and the cost of any other damage,
injury expense or liability caused by such Tenant Default without prejudice to
any other remedy provided herein or provided by law, On demand, Tenant shall
pay Landlord the amount that will restore the security deposit to its original
amount. The security deposit shall be deemed the property of Tenant and any
remaining balance of such security deposit not used by the Landlord pursuant to
this Lease shall be returned by Landlord to Tenant within sixty (60) days after
Tenant’s

 2
 

obligations under
the Lease have been fulfilled. Notwithstanding any terms or provision hereof to
the contrary, the Security Deposit shall be returned to Tenant in the event
that Tenant terminates this Lease in accordance with its terms.

1.9       Late Charges. If
Tenant fails to pay any installment of Monthly Rent on  or before the fifteenth (l5th) day of the
calendar month, then Tenant shall pay to Landlord, in addition to the
installment of Monthly Rent, five percent (5%) of such installment, as a late
payment fee. Notwithstanding the foregoing, Landlord shall provide notice to
Tenant if any installment of Monthly Rent is not paid on or before the
fifteenth (15”) day of the calendar month.

ARTICLE II

ADDITIONAL
RENT

2.1       Additional Rental
Obligation. In addition to the rental sum described above, Tenant shall pay
the following:

a. Utilities.
Tenant shall promptly pay and discharge the cost of all utilities in connection
with Tenant’s use of the Leased Premises and Building thereon. In the event
that any such utility charge is unpaid, Landlord may, at its option, pay and
discharge such charge, notifying Tenant of such payment and forthwith being
reimbursed on demand for such payment by Tenant;

b. Taxes.
Tenant shall pay, before they become delinquent, any ad valorem taxes,
including but not limited to real estate and personal property taxes, waste
disposal assessments, or other assessments for public or municipal improvements
that are assessed or imposed upon the Leased Premises and Building thereon
during the time of the Lease including all such taxes for the year 2007.
Landlord shall furnish to Tenant within five days after receipt any such tax,
or assessments which shall be levied on the property. Tenant shall promptly pay
the real estate and personal property taxes, assessments or other costs imposed
upon the land, prior to such obligation becoming delinquent, evidencing an
official receipt as paid in fbll and providing same to Landlord. Tenant shall
pay before delinquency, any and all taxes on the real estate and personal
property which are levied or assessed, and/or which become payable during the
Lease Term for the year 2007 upon all or any part of the Building,
improvements, equipment, furniture, fixtures, and other personal property,
although same may be assessed and taxed with the real property.

c. Insurance.
Tenant shall procure and maintain, and pay all premiums, fees and charges for
the purpose of procuring and maintaining continuously throughout the Term: (i)
insurance on the Improvements (including building and fixtures on the Premises)
against loss or damage by fire or other casualty with endorsements providing
what is commonly known as all risk fire and extended coverage (but not
including flood or earthquake coverage), vandalism and malicious mischief
insurance, in an amount equal to the full replacement cost thereof and (ii)
general liability insurance with a combined single limit of not less than One
Million Dollars ($1,000,000 00) for any

 3
 

bodily injury or property
damage, with a deductible that is consistent with Tenant’s insurance practices.
Landlord may procure and maintain general liability insurance. All property,
casualty and other policies of insurance referred to in this Lease shall
include the other party, as their interest may appear, as additional insureds,
shall insure such party against liability arising out of the other party’s
negligence or, to the extent typically covered by a standard policy of
commercial general liability insurance, the negligence of any other person,
firm or corporation and contain a contractual liability endorsement for
liabilities assumed by the other party under this Lease. All policies procured
hereunder shall be on standard policy forms issued by insurers of recognized responsibility,
rated APlus)UI or better by Best’s Insurance Rating Service, qualified to do
business in Texas. A certificate of such insurance shall be delivered to the
other party prior to the Lease Commencement Date and thereafter not less than
fifteen (15) days after the expiration thereof and shall provide that such
policy may not be cancelled or modified except upon not less than thirty (30)
days written notice to the other. Any insurance required or permitted to be
carried pursuant to this paragraph may be carried under a policy or policies
covering other liabilities and locations of Landlord or Tenant; provide,
however, that such policy or policies shall apply to the property required to
be insured as set forth above and, with respect to Tenant, in an amount not
less than the amount of insurance required to be carried by Tenant.

d.            Licenses.       Tenant
shall be liable for, and shall pay throughout the Term, all license and excise
fees and. occupation taxes covering the adult cabaret conducted on the
Premises, including but not limited to any specialized certificates of
occupancy required.

2.2       Failure of Tenant to
Provide Insurance. Should Tenant occupy the Leased Premises without
providing the required insurance coverage, Landlord, at its option, may obtain
the required insurance coverage and Tenant shall pay the premiums for same as
additional rent within five days of the receipt of notice of payment from
Landlord.

2.3       Failure to Pay Taxes.
Should Tenant fail or refuse to pay any real estate or personal property taxes,
waste disposal assessments, or other assessments for public or municipal
improvements, Landlord shall elect to pay same, after giving written notice to
Tenant of its intent to do so, and Tenant shall reimburse Landlord for the payment
as additional rent within five days of the receipt of notice of payment from
Landlord.

ARTICLE III

REPAIRS
AND MAINTENANCE

3.1       Maintenance.

a.             Tenant shall, at its
own expense, keep in good repair buildings and fixtures as found on the Leased
Premises, including without limitation the heating and air conditioning
systems, plumbing, lighting and electrical systems, partitions, exterior and
interior doors, windows (including plate glass), fixtures and the interior of
walls, floors

 4
 

and ceilings and
comply with all governmental requirements as to the condition of the Leased
Premises.

b.            Exterior maintenance of
the Leased Premises shall be provided by Tenant.

3.2       Liens. Tenant will
not create or permit to be created or remain, and will promptly discharge, at
its sole cost and expense, any lien, encumbrance or charge upon the Leased
Premises and Building thereon or any part thereof or upon Tenant’s leasehold
interest therein, which arises out of the use or occupancy of the Leased
Premises and Building thereon by Tenant or by reason of any labor and material
furnished or claimed to have been furnished to Tenant or reason of any
construction, addition, or alteration, or any part of the Leased Premises by
Tenant. Landlord, at its sole option, may cause to be discharged, any lien,
encumbrance or charge upon the Leased Premises, or any part hereof or upon
Tenant’s leasehold interest therein. Tenant shall immediately pay to Landlord
on demand an amount equal to the cost of discharging such interest, plus all
fees and expenses reasonably incurred in connection therewith, including, but
not limited to reasonable attorney’s fees.

ARTICLE IV

OPTION

4.1       First Right of Refusal.     Landlord hereby grants to
Tenant (VCG) a first right of refusal to purchase the property during the term,
and any extensions of this Lease Agreement.

4.2       Option to Purchase.            Landlord hereby grants
the Tenant an option to purchase the Leased Premises, at any time on or after
the 15th year anniversary date of this Lease Agreement, at fair market value
but in no event less than Three Million Dollars ($3,000,000.00) provided that
Tenant is not in default under the terms of the Lease and the Lease has not
otherwise been terminated. In determining fair market value, an appraiser shall
be obtained and shall value the property as an adult cabaret. In no event shall
the fair market value be less than Three Million Dollars ($3,000,000.00) at the
time of the evaluation.

4.3       Right of Reversion.               Should Tenant or its
assigns, fail or refuse to exercise its option to purchase as herein described,
and the term of the Lease or any extensions thereof end, then the title and
ownership of the Improvements (including the building), Fixtures and Personal
Property related to 12325 Calloway Cemetery Road, Fort Worth, Texas and the
Leased Premises shall revert back to the Landlord. At the expiration of the
Term, Tenant, if requested by Landlord; shall execute any and all documents
necessary to evidence that ownership and title to the aforementioned
Improvements (including the building), Fixtures and Personal Property is in
Landlord and to extinguish and remove any cloud or potential cloud on the title
to the Premises and/or the Improvements.

 5
 

ARTICLE V

LOSS OR
DESTRUCTION

5.1           Loss or Destruction.
     Pursuant to a Purchase of Membership Interest
Agreement dated the September 17, 2007 (“Purchase Agreement”), VCG has
purchased the building currently erected on the Leased Premises. Should the
building be destroyed or damaged by fire or other disaster, Tenant shall have
the option as follows:

a.             rebuild the building
in a quality and manner at least as good as the quality and manner of the
building as of the date of Closing of the Purchase Agreement. The work o1
repair or restoration, which shall be completed with due diligence, shall be
commenced within a reasonable time after the damage or loss occurs; or

b.            pay the insurance
proceeds received for the destruction or loss of the building to Landlord,
unless Tenant shall exercise the options contained in Article IV hereof.

Neither
Monthly Rent nor any other rental hereunder shall abate while the Improvements
are being repaired or restored; provided, however, in the event the leased
premises cannot be used for the operation of the business due to the extent of
the loss or destruction there shall be a 120 day abatement in monthly rent due
under the lease and there shall be a corresponding extension of the lease term
not to exceed four (4) months.

ARTICLE VI

EARLY
TERMINATION

6.1       Right to Terminate.      Landlord
hereby grants Tenant the limited right to early termination of the Lease
Agreement herein, at the option of Tenant, should the Leased Premises lose the
right to operate as a adult cabaret due to a change in local, state, or federal
law which prevent its ordinary use as an adult cabaret. The early termination
rights herein are solely provided and may only be exercised in the event Tenant
has lost the use of the Leased Premises and Building and Improvements for the
permitted use as an adult cabaret through a change in local, state, or federal
law which prevent its ordinary use as an adult cabaret. Tenant has no other
early termination right. It is expressly understood by Landlord and Tenant that
Tenant shall not be allowed early termination for its loss of use of the Leased
Premises as an adult cabaret a result of Tenant’s actions and inactions, during
the operation of the Business, which result in the loss of the ability to use
the Leased Premises as an adult cabaret.

ARTICLE VII

CONDEMNATION

7.1       Condemnation/Eminent
Domain.

a.                 Condemnation.             If the Leased
Premises are taken by any authorized entity by eminent domain or by private
sale to a governmental authority under

 6
 

the threat
thereof, or if part of the Leased Premises is taken so as to substantially
interfere with the use thereof, then Tenant shall have the option, to be
exercised within sixty (60) days after the taking, to terminate this Lease by
notice to Landlord, which termination shall be deemed to be effective as of the
date the condemning authority takes title or possession, whichever first
occurs, and all rentals shall be paid up to that date. In such an event all
ownership and title to the Improvements (including building), Fixtures and
Personal Property revert back to Landlord.

b.            Rights in Awards.
     In the event Tenant does not exercise his right
to terminate the Lease, Landlord and Tenant will be entitled to share any
condemnation award according to their respective interests.

c.             Apportionment of
Partial Award.                If
there occurs a Partial Taking and Tenant elects not to terminate the Lease,
Landlord and Tenant shall be entitled to receive and retain such separate
awards and portions of lump sum awards as may be allocated to their respective
interests in any condemnation proceedings, or as may be otherwise agreed,
taking into consideration the fact that Landlord’s interest in the premises is
limited to the Land, as encumbered by this Lease, a reversionary interest in
the Improvements (including building), Fixtures and Personal Property upon the
expiration of the Term or termination of the Lease, and the right to receive
rent hereunder. If the Premises shall be restored as herein provided, Tenant
shall first be entitled to recover the costs and expenses incurred in such
restoration out of any such award. Thereafter, if the condemning authority does
not make separate awards and the parties are unable to agree as to amounts that
are to be allocated to the respective interests of Landlord and Tenant, then
each party shall select an independent M.A. I. real estate appraiser (an “Appraiser”).
Each appraiser shall separately determine the amount of the balance of the
condemnation award that is to be allocated to the interests of Landlord and
Tenant. If the percentage of the balance of the total award each Appraiser
allocates to Landlord (a) are within ten (10%) of each other, the two (2)
allocations shall be averaged and such average shall be the final allocation of
the award, or (b) are not within ten (10%) of each other, the two Appraisers
shall then select a third Appraiser who shall independently allocate the award
between Landlord and Tenant, and the middle of such three (3) allocations shall
be the final allocation of the award.

ARTICLE VIII

ENVIRONMENTAL/HAZARDOUS
SUBSTANCES

8.1       Discharge.                “Discharge” shall
mean the releasing, spilling, leaking, leaching, disposing, pumping, pouring,
emitting, emptying, dumping, presence, use, handling, treatment, manufacture,
transportation, generation, storage or sale of Hazardous Substances at, in, on,
under or emanating to or from the Premises, the Common Areas or the
Development, directly or through migration, or the threat thereof, regardless
of whether the result of an intentional or unintentional act or omission.

8.2       Environmental Documents.
                     “Environmental
Documents” shall mean all environmental documents in the possession or under
the control of the producing party

 7
 

concerning the
Premises, the Common Areas or the Development, and their environs, including
without limitation, all sampling plans, cleanup plans, preliminary assessment
plans and reports, site investigation plans and reports, remedial investigation
plans and reports, remedial actions plans and reports, or the equivalent,
sampling results, sampling result reports, data, diagrams, charts, maps,
analysis, conclusions, quality assurance/quality control documentation,
correspondence to or from any Governmental Authority, submissions to any
Governmental Authority and directives, orders, approvals and disapprovals
issued by any Governmental Authority.

8.3       Environmental Law or Laws.
               “Environmental Law”
or “Environmental Laws” shall mean each and every applicable federal, state,
regional, county or municipal environmental or health safety statute
,ordinance, rule, regulation, order, code, directive or requirement, relating
to the environment, Hazardous Substances or health or safety, including without
limitation the Resource Conservation and Recovery Act, as amended, 42 U.S.C.
§6901 et seq.; the Comprehensive Environmental Response, Compensation and
Liability Act, as amended 42 U.S.C. §9601 et seq.; the Water Pollution and
Control Act, 33 U.S.C. §1251 et seq.; the Toxic Substances Control Act, 15
U.S.C. §2601 et seq., the Clean Water Act, 33 U.S.C. §1251 et seq.; the Clean
Air Act, 42 U.S.C. §7401 et seq.; and the Tank Laws (as defined below), now or
hereafter existing, together with all successor statutes, ordinances, rules,
regulations, orders directives, or requirements now or hereafter existing.

8.4       Governmental Authority.
        “Governmental Authority”
shall mean the federal, state, regional, county or municipal government, or any
department, agency, bureau or other similar type body obtaining authority
therefrom or created pursuant to any applicable statutes, ordinances, rules,
regulations, orders, codes, directives or requirements now or hereafter
existing.

8.5       Hazardous Substance or
Hazardous Substances. “Hazardous Substance”  or “Hazardous Substances” shall mean any
substance, material, waste, toxic substance, hazardous substance, hazardous
waste, solid waste, pollution, pollutant, irritant or contaminant, including
without limitation, petroleum, petroleum byproducts or derivatives, asbestos,
polychlorinated biphenyls, mold or other bacterial matter, as defined, listed
or referred to in any Environmental Law, together with any amendments thereto,
regulations promulgated thereunder and all substitutions thereof. Hazardous
Substances shall not include Hazardous Substances used in the Tenant’s
customary business operations provided same are used in such quantities and
handled in such manner as allowed/required under applicable Environmental Laws.

8.6       Environmental Notice.   “Environmental Notices” shall
mean, in addition to its ordinary meaning, any communications of any nature,
whether in the form of correspondence, memoranda, order, directives or
otherwise.

8.7       Remediate or Remediation.
                        “Remediate”
or “Remediation” shall mean all actions to investigate and clean up or respond
to any known, suspected or threatened Discharge of a Hazardous Substance,
including without limitation, environmental

 8
 

investigation,
monitoring and sampling; installation, maintenance and removal of monitoring
wells; removal, treatment, neutralization or containment of any Hazardous
Substance; storage of excavated materials; and installation, maintenance,
storage and removal of machinery and equipment used in connection with the
Remediation, to the extent necessary to comply with the applicable
Environmental Laws.

8.8       Tank Laws.          “Tank Laws” shall mean all
federal, state, regional, county, or municipal environmental statutes,
ordinances, rules or regulations relating to the underground storage tanks,
including, without limitation, the Federal Underground Storage Law, subtitle 1
of the Resource Conservation and Recovery Act, as amended, 42 U.S.C. § 6901 et
seq. together with any amendments thereto, regulations promulgated thereunder
and all substitutions thereof, and any successor legislation and regulations.

8.9 Underground
Storage Tanks. “Underground Storage Tanks” shall have the meaning ascribed in
such term under the Tank Laws, and shall also include unregulated underground
storage tanks used to store Hazardous Substances.

8.10                         General
Environmental Compliance Clauses

a.             Presence and Use of
Hazardous Substances. Neither Tenant nor Tenant’s agents or contractors
shall, without Landlord’s prior written consent, keep any Hazardous Substances
on or about the Premises, the Common Areas or the Development, in violation of
Environmental Laws.

b.            Tenant’s Compliance
with Environmental Laws.         Tenant
shall at Tenant’s own expense, comply with any applicable transaction triggered
Environmental Laws, but only in the event of a closing of Tenant’s operations
or transfer of Tenant’s operations or change in the ownership of Tenant. If
such compliance, becomes necessary due to any action or omission of Landlord,
or any third party other than Tenant, including, without limitation, a trigger
of a transaction triggered Environmental Law due to a change in ownership of
the Premises or the Development, or a change in ownership of Landlord, then
Landlord shall, at Landlord’s own expense, promptly comply with such
transaction triggered Environmental Law. Notwithstanding anything in the
contrary set forth in this Section, and regardless of whether such compliance
is triggered by Landlord or Tenant, Tenant, shall only be responsible to
investigate and Remediate Hazardous Substance at the Premises in the most cost
effective manner possible under the circumstances to comply with applicable
Environmental laws, and only to the extent that the Hazardous Substances were
Discharged by Tenant or Tenant’s employees, agents or contractors. In all other
respects, Landlord shall, at Landlord’s own expense, and without interfering
with the ongoing business operations of Tenant in a commercially unreasonable
manner, promptly comply with such transaction triggered Environmental Laws,
including without limitation taking all other action required by applicable
Environmental Laws with respect to -any Discharge of Hazardous Substances.
Landlord hereby represents that to the best of his knowledge that as of the
date of execution of this Lease there exists no violation of Environmental Laws
as that term is defined herein, provided however, if such violation arises as a
result of any act prior to the date of the

 9
 

execution of this
Lease, Landlord shall be responsible for any and all costs associated with such
violation or remedy: provided further, nothing herein shall be construed to
prevent Landlord from seeking contribution and indemnity from prior (i) title
holders; (ii) tenants; (iii) any other generator as that term is used in the
definition of Environmental Laws; or (iv) any other polluter.

c.             Information to
Tenant.                      At no expense
to Tenant, Landlord shall promptly provide all information reasonable requested
by Tenant or any applicable Governmental Authority with respect to Tenant’s
obligations under this Section, and shall promptly sign such affidavits,
submissions and other documents reasonable requested by Tenant or any
applicable Governmental Authority.

d.            Notice of Meetings.
           Tenant shall
commercially reasonable efforts to notify Tenant in advance of all meetings
scheduled by Landlord or Landlord’s agents or contractors, with any
Governmental Authority with respect to the Premises, the Common Area or the
Development and shall have the right to attend and participate in all such
meetings.

ARTICLE IX

GENERAL
PROVISIONS

9.1       Quiet Enjoyment.                          Tenant
shall, provided Tenant shall not be in default hereunder, be permitted to
peaceably and quietly hold and enjoy the Leased Premises during the term
hereof.

9.2       Access to Premises.           Landlord, its agents,
servants, or employees may enter the Premises at reasonable times with
reasonable advance notice to Tenant (or an authorized employee of Tenant at the
Premises), and at any time, upon reasonable notice to Tenant under the
circumstances; in an emergency, to do the following: inspect the Premises;
comply with all laws, orders, ordinances and requirements of any governmental
unit or authority for which Landlord may be responsible under This Lease, if
any; show the Premises to prospective lenders or purchasers and, during the
ninety (90) days immediately prior to the expiration of this Lease if Tenant
declines to renew for an additional term in accordance with the provisions of
this Lease, to prospective tenants, but only if all such showings are
accompanied by a representative Tenant if so requested by Tenant; or post (on
the Development, but not within or at the entrance of the Premises) for sale or
for lease signs; provided; however, that all such entries shall be completed
promptly in a good workmanlike manner so as to cause the least practical
interference to Tenant’s business and Tenant’s use of the Premises. In all
events, Landlord shall use commercially reasonable efforts to minimize
interference with the Premises and Tenant’s business operations thereon. If
Landlord’s entry materially and substantially interferes with the conduct of
Tenant’s business and/or cause damage to Tenant’s property (and the entry is
not needed because of Tenant’s default, negligence or willful misconduct), then
in such event the rent and any sums due and payable as additional rents, shall
abate in proportion to the extent of the interference and Landlord shall be
liable for any damage to Tenant’s property.

 10
 

9.3       Mutual Indemnification.
  Subject to the waiver of subrogation
provision, Tenant agrees to indemnify’ and hold Landlord harmless from any and
all losses, damages, liability, or expenses (including reasonable attorneys’ fees)
incurred by Landlord, arising from loss of life, personal injury and/or
property damage, caused by or resulting from, in whole or in part, any
negligent act or omission or intentional misconduct of Tenant or any officer,
agent, contractor or employee .of Tenant in the Development, in connection with
Tenant’s use of occupancy of the Premises. Subject to the waiver of subrogation
provision, Landlord agrees to indemnify and hold Tenant harmless from any and
all losses, damages, liability, or expenses (including reasonably attorneys’
fees) incurred by Tenant, arising from loss of life, personal injury and/or
property damage, caused by or resulting from, in whole or in part, any
negligent act or omission or intentional misconduct of Landlord or any officer,
agent, contractor or employee of Landlord, in connection with Landlord’s
management and operation of the Leased Premises.

9.4       Concurrent Negligence.
  Notwithstanding the provisions of
Mutual Indemnification above, in the event of the concurrent negligence or
intentional misconduct of Tenant, its agents, employees, sublessees, or
contractors on the one hand and that the Landlord, its partners, directors,
officers, agents, employees, or contractors on the other hand, which concurrent
negligence or intentional misconduct results in injury or damage to persons or
property and relates to the construction, alteration, repair, addition to,
subtraction from, improvement to, or maintenance of the Leased Premises a party’s
(the “Indemnifying Party”) obligation to indemnify the other shall be limited
to the extent of the Indemnifying Party’s negligence and/or intentional
misconduct, and that of its agents, employees, sublessees, or contractors,
including the Indemnifying Party’s proportionate share of reasonable costs,
attorneys’ fees, and expenses incurred in connection with any claim, action, or
proceeding brought with respect to such injury or damage.

9.5       Tenant’s
Default.

a.             Default.    The occurrence of any one or
more of the following events shall constitute a default of this Lease by Tenant
(a “Tenant Default”): (a) the failure by Tenant to make any payment of Monthly
Rent, or any other payment required to be made by Tenant hereunder, as and when
due, where such failure shall continue for a period of fifteen (15) days after
Tenant’s receipt of written notice thereof by Landlord to Tenant; provided that
if Tenant fails to pay Monthly Rent or any other payment required to be made by
Tenant hereunder on time more than two (2) times in a twelve (12) month period,
a Tenant Default shall occur notwithstanding that such payments have been made
within the applicable cure period; (b) the failure by Tenant to observe or
perform any of, the covenants, conditions, or provisions of this Lease to be
observed or performed by Tenant, other than as described in subsection (a)
above, where such failure shall continue for a period of thirty (30) days after
Tenant’s receipt of written notice thereof by Landlord provided, that if such
cure reasonably requires more than thirty (30) days to complete, then Tenant
shall not be in default if Tenant shall promptly commence the cure

 11
 

of such Tenant
Default and diligently pursues such cure to completion; (c) the making by
Tenant of a general assignment or general arrangement for the benefit of creditors;
the filing of a voluntary bankruptcy petition by Tenant. If an involuntary
bankruptcy petition against Tenant has been filed and is not contested,
dismissed, or stayed within sixty (60) days of filing); or the appointment of a
trustee or receiver to take possession of substantially all of Tenant’s assets
located at the Premises or of Tenant’s interest in this Lease, where such
seizure is not contested, discharged, or stayed in thirty (30) days after
appointment of said trustee or receiver, provided however, if a final order
adjudicating the tenant as being bankrupt or appointing a trustee or receiver
shall have been entered pursuant to II U.S.C. §303 such order shall be an event
of default hereunder, or the filing of a petition for the appointment of same
by the Tenant, whichever shall first occur and (d) failure to maintain the
premises as an adult cabaret in continuous operation, subject to the provisions
of Article VI. Notwithstanding anything in this provision which may be
construed to the contrary, Tenant, in the event of an involuntary bankruptcy
petition against it, has the right to contest an order for relief prior to
entry of or defeating the entry of same.

b.            Remedies in Default.
 On the occurrence of the Tenant Default
and after the applicable notice and cure period, and subject to terms and
conditions provided herein, Landlord may, without limiting Landlord in the
exercise of any other right or remedy that Landlord may have by reason or such
default, the remedies of Landlord hereunder being cumulative and not exclusive
of one another: (a) perform on Tenant’s behalf, any unperformed covenant or
obligation hereunder constituting such Tenant Default (after giving Tenant
written notice of Landlord’s intention to do so except in the case of emergency),
in which event Tenant shall reimburse Landlord for all expenses reasonably
incurred by Landlord in doing so, plus interest at the Default Rate, which
expenses and interest shall be additional rent and shall be payable by Tenant
immediately On demand therefore by Landlord; and/or (b) terminate this Lease
and collect liquidated damages from Tenant in an amount equal to (i) the sum of
all amounts due hereunder to the date of termination; plus (ii) the aggregate
rent remaining over the unexpired portion of the Term, plus the reasonable cost
to Landlord of any repairs required to comply with Tenant’s obligations, all
reduced to present value using a discount rate equal to the interest rate of a
governmental security having a mutual closest to the then current expiration of
the Term; less (iii) the aggregate fair net rental value of the Premises over
the remaining portion of the Term (provided, however, a reasonable period of
time, not to exceed twenty four (24) months, may be considered as a leasing period
by which the Premises would not be leased and therefore no income would be
realized for such period) reduced to present value at the above specified
discount rate; plus (iv) Landlord’s costs and expenses incurred in the
enforcement hereof including reasonable attorneys fees as herein provided, or
(c) maintain Tenant’s right to possession, in which case this Lease shall
continue in effect and Landlord shall be entitled to enforce all of Landlord’s
right and remedies under this Lease, include the right to recover the Rent and
other amounts payable hereunder as they become due hereunder.

 12
 

9.6       Landlord Disclaimer.    Except
as may be otherwise in this Lease expressly provided, the Premises is being
leased “AS IS,” with Tenant accepting all defects, if any; and except as
otherwise in the Lease expressly provided, Landlord makes no warranty of any
kind, express or implied, with respect to the Premises (without limitation,
Landlord makes no warranty as to the habitability, fitness or suitability of
the Premises for a particular purpose). This section is subject to any contrary
requirements under applicable law, however, in this regard Tenant -
acknowledges that it has been or is being given the opportunity to inspect the
Premises and to have qualified experts inspect the Premises prior to the
execution of this Lease. Landlord is not in receipt of any notice from any
governmental authority regarding a negative environment issue with respect to
the Leased Premises and knows of no negative environment issue with respect to
the Leased Premises.

9.7       Brokerage Commission.
     Landlord and Tenant warrant and represent that
they have not dealt with any real estate broker or salesman in connection with
this Lease. Landlord and Tenant further represent they have dealt with no other
person that would create any liability for the payment of a commission by the
other party. The party who breaches this warranty shall defend, hold harmless,
and indemnify the non-breaching party from any claims or liability arising form
the breach.

9.8       Choice of Law.      This
Lease shall be governed by the laws of the State of Texas.

9.9       Authority to Execute.
   Tenant represents and warrants that this Lease has been duly
authorized, executed and delivered by and on behalf of Tenant and constitutes
the valid, binding, and enforceable agreement of Tenant in accordance with the
terms hereof. Landlord represents and warrants that this Lease has been duly
authorized, executed and delivered by and on behalf of Landlord, and
constitutes the valid, binding and enforceable agreement of Landlord in
accordance with the terms hereof.

9.10     No Construction Against
Drafting Party.      Landlord and Tenant
acknowledge that each of them and their respective counsel have had an
opportunity to review this Lease and that this Lease shall not be construed for
or against either party merely because such party prepared or drafted this
Lease or any particular provision thereof.

9.11
Number of Execution Copies/Counterparts.          This Lease may be executed in any number of counterparts,
each of which shall be an original, but all of which shall constitute one
instrument.

9.12 Prior
Agreement. THIS LEASE CONTAINS THE ENTIRE AGREEMENT OF THE PARTIES HERETO
AND ANY AND ALL ORAL AND WRITTEN AGREEMENTS, UNDERSTANDINGS, REPRESENTATIONS, WARRANTIES,
PROMISES, AND STATEMENTS FO THE PARTIES HERETO AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, PARTNERS, AGENTS, AND BROKERS WITH RESPECT TO THE SUBJECT MATTER OF
THE LEASE, AND

 13
 

ANY MATFER COVERED OR
MENTIONED IN THIS LEASE SHALL BE MERGED IN THIS LEASE AND NO SUCH PRIOR ORAL OR
WRITTEN AGREEMENT, UNDERSTANDING, REPRESENTATION, WARRANTY, PROMISE, OR STATEMENT
SHALL BE EFFECTIVE OR BINDING FOR ANY REASON OR PURPOSE UNLESS SPECIFICALLY SET
FORTH IN THIS LEASE. NO PROVISION OF THIS LEASE MAY BE AMENDED OR ADDED TO
EXCEPT BY AN AGREEMENT, IN WRITING, SIGNED BY THE PARTIES HERETO OR THEIR RESPECTIVE
SUCCESSORS IN INTEREST. THIS LEASE SHALL NOT BE EFFECTIVE OR BINDING ON ANY
PARTY UNTIL FULLY EXECUTED BY BOTH PARTIES HERETO.

9.13
Acceptance.     The
submission of this Lease to Tenant does not constitute an offer to lease. This
Lease shall become effective only upon the execution and delivery thereof by
both Landlord and Tenant.

9.14
Consent.                      Except
where otherwise expressly provided for in this Lease any consent or approval
required under this Lease, pursuant to the terms of this Lease, may not be
unreasonably withheld, conditioned, or delayed.

9.15
Attorneys’ Fees. Should either party be required to engage an attorney
to enforce this Agreement, or the arbitration section as set forth below, the
prevailing party shall receive all reasonable cost of enforcement, including,
but not limited to reasonable attorney’s fee.

9.16

a.     Notices.
                         Any
notice required or permitted to be given to party under the provisions of this
Lease shall be deemed valid only if given in writing and (i) delivered
personally or (ii) sent via United States Certified Mail, Return Receipt
Requested, with postage prepaid or, (iii) sent via Federal Express or other
similar nationally recognized overnight courier to the recipient for next
business day delivery and addressed by the sender to the intended recipient:

If to VCG Corporation:

c/o Troy Lowry

390 Union Blvd., Suite
540

Lakewood, CO 80228

Copy to: Michael Ocello

390 Union Blvd., Suite
540

Lakewood, CO 80228

Copy to: Martin A. Grusin

The Law Offices of
Martin A. Grusin P.C.

 14
 

780 Ridge Lake Blvd.,
Suite 202

Memphis, TN 38120

If to Landlord:

Bryan S. Foster

2171 Manana Drive

Dallas, TX 75220

Copy to: Kevin Richardson

6716 Valley View Lane

Sachse, TX 75048

With additional
copy to:

Art Selander, Esq.

Quilling, Selander,
Cummiskey & Lownds, P.C

2001 Bryan Tower, Ste.
1800

Dallas, TX 75201

b.        All references to days for Notice
contained in this Lease shall  mean
Business Days, provided however, this provision shall not apply to Section 1.9.

9.17
Successors.      This
Lease binds and inures to the benefit of the parties and their respective
heirs, legal representatives, successors and assigns.

9.18
Recordation.                          Tenant
and Landlord shall join in the execution of a short form Memorandum of Lease
for purposes of recordation.

9.19
Estoppel Certificate.           Landlord
and Tenant agree that from time to time upon not less than ten (10) days prior
request by Landlord, Tenant will deliver to Landlord a statement in writing
certifying that (a) this Lease is unmodified and in full force and effect (or
if there have been modifications, that this Lease is in full force and effect
as modified and identifying the modifications), (b) the dates to which the rent
and other charges have been paid, and (c) that so far as the person making the
certificate knows, Landlord is not in default under any provision of this Lease
and, if Landlord is in default specifying each such default of which the person
making the certificate may have knowledge, it being understood that any such
statement so delivered may be relied upon by Landlord, or any successor or
assignee or interest of Landlord, or any prospective purchaser, mortgagee, or
any assignee or any mortgage on the Leased Premises. Landlord also expressly
agrees that this Lease shall not be subordinate to any mortgage that Landlord
may grant on the Leased Premises subsequent to the date of execution of this
Lease, and that no estoppel certificate so requested shall require such
subordination and shall confirm that this Lease shall not be so subordinated.

 15
 

9.20
Waiver of Covenants.                         No
waiver of any condition or covenant of this Lease shall be deemed to imply or
constitute a further waiver of the same or any other like condition or
covenant, and nothing therein contained shall be construed to be a waiver on
the part of Landlord of any right or remedy at law or otherwise, and all of
Landlord’s remedies herein provided for shall be deemed to be cumulative. A
modification or amendment of this Lease will be valid and effective only if it
is in writing signed by each of the parties.

9.21
Headings. The headings used in this Lease are inserted for convenience
and are not to be considered in the construction of the provisions of this
Lease.

9.22
Covenants Run With Land. All covenants and agreements contained in this
Lease shall be construed as covenants running with the land, and all rights and
powers given to and obligations imposed upon the respective parties shall be
construed as inuring to and binding upon the successors in interest and the
permitted assigns of the parties hereto, respectively.

9.23
Time of Essence.  Time is of the
essence with respect to the performance of the parties’ obligations under this
Lease.

9.24
Condition Precedent.      This
Lease is expressly contingent upon the execution of and payment of the Purchase
Price under that certain Purchase of Membership. Interest dated to be effective
the 17th day of September, 2007, by and among VCG Holding Company, a Colorado
corporation and Golden Productions JGC Fort Worth, LLC, a Texas limited
liability company, d/b/a Jaguar’s Gold Club Fort Worth, and Bryan S. Foster.
Absent execution of and payment of the Purchase Price under the aforementioned
Purchase of Membership Interest, this Lease is void ab initio, does not bind
the parties and does not create any right, claim or liability by or between the
parties hereto.

9.25
Right of Offset.            Notwithstanding
anything contained herein to the contrary, the Tenant or his assigns or
subtenants shall have the right of offset against any sums due hereunder as a
result of Bryan S. Foster (Landlord/Member) or his assigns default of all or
any terms of this Lease or Purchase of Membership Interest stated above in
Section 9.24 to the extent of damages incurred. The right of offset shall not
be exercised until the arbitration procedures set forth in Section 9.27 have
been exhausted.

9.26
Limitation of Damages.                      No
party shall be liable to any other party for any special or punitive damages, whether
at law or equity.

9.27 Arbitration.        Each of the parties hereto
agrees to submit to binding arbitration any and all differences and disputes
which may arise between them, their heirs, successors, assigns, employees,
officers, directors, affiliates, subsidiaries, or Member which are related to
this Agreement. Prior to initiating arbitration, the parties shall first meet
face-to-face to effect a resolution of the differences. Any differences

 

 16
 

which the parties
are unable to resolve in said face-to-face meeting shall be heard and finally
settled at a mutually agreed upon location by the parties, by binding
arbitration in accordance with the Commercial Rules of the American Arbitration
Association. If the parties do not agree upon a location, the arbitration
proceeding shall be conducted in Dallas, Texas. Any award entered in any such
arbitration shall be final, binding, and may be entered and enforced in any
court of competent jurisdiction. The arbitrator shall make such orders, conduct
and schedule all proceedings in connection with the arbitration so that final
arbitration commences no less than thirty (30) days and concludes no later than
seventy-five (75) days after a party files the initial notice of arbitration,
and so that the final arbitration award is made and delivered to the parties
within ninety (90) days after the filing of the initial notice of arbitration.
The cost of such arbitration shall be apportioned as determined by the
arbitrator, in any manner determined by him/her based upon the fault or lack
thereof by the respective parties. If the cost of such arbitration is not
apportioned by the arbitrator, then the cost shall be borne equally between the
parties hereto. Nothing herein contained shall be construed as preventing any
party from instituting legal or equitable action against any of the other
parties for temporary or similar provisional relief to the full extent
permitted under the laws applicable to this Agreement, or any such other
written agreement between the parties or the performance hereof or thereof or
otherwise pending final settlement of any dispute, difference or question by
arbitration. Any such provisional relieve may be modified or amended in any way
by the arbitrator at any time after his appointment.

	
  

  	
   

  	
   

  	
   

  
	
  Initials

  	
   

  	
  Initials

  

 

 17
 

IN
WITNESS WHEREOF, the parties have executed or have caused this Lease to be
executed as of September 17, 2007.

	
  

  	
  LANDLORD: BRYAN
  S. FOSTER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/Bryan S.
  Foster

  	
   

  
	
   

  	
  BRYAN S. FOSTER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT: VCG
  HOLDING

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Micheal L.
  Ocello

  	
   

  
	
   

  	
  BY:

  	
  Micheal L.
  Ocello

  	
   

  
	
   

  	
  ITS:

  	
  President

  	
   

  
						

 

 18

all that certain
tract, parcel, or lot of land located in the J.W. Calloway Survey, Abstract No.
336, City of Fort Worth. County of Tarrant, Texas. according to the deed
recorded in Volume 17130, Page 375, Deed Records, and County Clerks Document
No. D206221398 Tarrant County, Texas, and being more particularly described by
metes and bounds as follows:

BEGINNING at a point in
the East line of Lot 1, Block 1, Calloway Addition an addition to the City of
Fort Worth, Tarrant County, Texas according to the plat recorded in Cabinet A,
Slide 9943 Plat Records, Tarrant County, Texas, lying S00°03’OS’W a distance of
72.35 feet from the North corner of said Lot 1;

THENCE S00’03’05W.
a distance of 334.01 feet along said East line to a point at the Southeast
corner of said Lot 1;

THENCE N8905222’W,
a distance of 534.27 feet along the South line of said Lot Ito a point at the
Southwest corner of said Lot I;

THENCE along the
Westerly line of said Lt 1 as follows:

1. N47°24’53’W, a
distance of 63.54 feet to a point;

2. N02’02’23’W, a
distance of 14.52 feet to a point:

3. 589’52’22”E, a
distance of 46.16 feet to a point;

4. N00°07’36’E, a
distance of 12.66 feet to a point;

THENCE N89’52’22’W,
a distance of 26.96 feet to a point lying 35.00 feet perpendicular from the
west line of a tract of land described in the deed to Jerry Spencer, L.P.
recorded in Volume 17131, Page 244, Deed Records, Tarrant County, Texas;

THENCE N02°14’36”W,
a distance of 114.30 feet along a line 35 feet Easterly of and parallel with
said West line of Spencer tract to a point;

THENCE Easterly,
361.36 feet along a non tangent curve to the left, having a radius of 1,010.00
feet, a central angle of 21 o38•02• and a chord bearing N69°07’Ol”E, 37g.l 0
feet to a point;

THENCE S89’56’55”E,
a distance of 227.66 feet to the point of beginning, containing 3.769 acres of
land.

The bearings
recited hereon are oriented to the plat of Lot I, Block 1, Calloway Addition
recorded in Cab. A, Sld. 9943, Piaf Records, Tarrant County, Texas

[RIGHT-HAND CORNER
CONTAINS STAMP:  “EXHIBIT A”]

SCHEDULE 5.13

EXCEPTIONS TO EMPLOYEE RELATIONS

1.             NONE.

2.             Member hereby agrees that Exhibit A
collectively hereby contains the following which Member represents as being the
records and/or documents used by the Business as same relates to its
independent contractors and employees, hereby agrees to supply to the Purchaser
a list of all employees.

a.             pay plans

b.             bonus plans

c.             sample Independent
Contractor form

d.             normal and
customary employee forms

[INITIALED:  BF]

SCHEDULE 5.15
 EXCEPTIONS TO ABSENCE OF CHANGES

NONE.

[INITIALED:  BF]

SCHEDULE 8.6(a)

COVENANT
NOT TO COMPETE (PRIOR OWNER)

THIS COVENANT NO
TO COMPETE (this “Agreement’) is made and 
effective as of the 17th day of September 2007 (the “Closing
Date”), between Bryan S. Foster, a resident of the State of Texas (“Prior Owner”),
and VCG Holding Company, a Colorado corporation (“Employer”).

W I T N E S S E T
H:

WHEREAS, all of
the membership interests in Golden Productions JGC Fort Worth, LLC d/b/a Jaguar’s
Gold Club Fort Worth (“Fort Worth”) are to be acquired by Employer pursuant to
a certain Stock Purchase Agreement (the “Purchase Agreement”); and

WHEREAS, Fort
Worth thereafter will become wholly owned by Employer and will continue to
conduct its respective business in the same manner as such business has been
conducted by Fort Worth prior to the acquisition; and

WHEREAS, Prior Owner
has been an owner of Fort Worth and has intimate knowledge of its business
practices, which, if exploited by Prior Owner in contravention of this
Agreement, would seriously, adversely and irreparably affect the interests of
Employer and Fort Worth and the ability of Fort Worth to continue the business
previously conducted by it; and

WHEREAS, to induce
Employer to enter into the Purchase Agreement, make such cash payment to Prior Owner
and consummate the other transactions contemplated by the Purchase Agreement,
Prior Owner has agreed to execute and deliver this Agreement.

NOW, THEREFORE, in
consideration of the transactions contemplated by the Purchase Agreement, the
consideration paid and to be paid to Prior Owner under the Purchase Agreement,
the above premises, the mutual promises and covenants of the parties hereto set
forth herein, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Prior Owner and Employer, intending to be
legally bound, agree as follows:

1.             Definitions.    As used herein, the following terms shall
have the following meanings unless the context otherwise requires:

a.             “Area” shall mean a radius of fifty
(50) miles of Fort Worth, excluding Jaguar’s Gold Club Fort Worth No. 2 and the
club operated in Dallas, Texas by Manana Entertainment, Inc. d/b/a Jaguar’s
Gold Club.

b.              “Business” shall mean the
operations of Fort Worth as conducted as of the Closing Date.

c.             “Competing Business” shall mean any
business organization of whatever form engaged, either Directly or Indirectly,
in any adult entertainment or any business or enterprise which is the same as,
or substantially the same as, Fort Worth.

d.             “Directly or Indirectly” shall mean
(i) acting as an agent, representative, officer, director, or independent
contractor of a Competing Business; (ii) participating in any such Competing
Business as an owner, partner, limited partner, joint venturer, creditor or
shareholder (except as a shareholder holding less than five percent (5%)
interest in a corporation whose shares are actively traded on a regional or
national securities exchange or in the over-the-counter market); and (iii)
communicating to any such Competing Business the names or addresses or any
other information concerning any past, present, or identified prospective
client or customer of Fort Worth or an entity having title to the goodwill of
Fort Worth.

e.             “Restricted Period” shall mean the
period commencing with the Closing Date and ending on the fifth (5th)
anniversary thereof

f.              “Confidential Information” shall
include any and all information related to the purpose and business of Fort
Worth which is proprietary and not general public knowledge, specifically
including (but without limiting the generality of the foregoing) any financial
statements, appraisals, analysis data, cost analyses or strategies, clients,
customer lists, suppliers, the sales price of Fort Worth paid by Employer, or
any other matters regarding Fort Worth. Information that is orally disclosed
will be considered “Confidential Information” if Employer indicates to Prior Owner
at the time of disclosure the confidential or proprietary nature of the
information and provides a written summary of such information to Prior Owner
within ten (10) days after the initial oral disclosure thereof. Any technical
or business information of a third-person furnished or disclosed shall be
deemed “Confidential Information” of Fort Worth unless otherwise specifically
indicated in writing to the contrary.

2.             Agreement Not to Compete.
Unless otherwise consented to in writing by Employer, Prior Owner agrees that
during the Restricted Period, he will not, within the Area, either Directly or
Indirectly, on his own behalf or in the service or on behalf of others, engage
in any Competing Business or provide managerial, supervisory, administrative,
financial or consulting services or assistance to, or own a beneficial interest
(except as a shareholder holding less than five percent (5%) interest in a
corporation whose shares are actively traded on a regional or national
securities exchange or in the over-the-counter market) in any Competing
Business.

3.             Agreement Not to Solicit
Employees. Prior Owner agrees that during the period commencing with the
Closing Date and ending on the fifth (5th) anniversary thereof, he will not,
without the prior written consent of Employer, either directly or Indirectly,
on his own behalf or via sendee or on behalf of others, solicit, divert, or
hire away, or attempt to solicit, divert, or hire away from the employment of
Fort Worth or any of its subsidiaries, any Person employed by Fort Worth or any
of its subsidiaries, whether or not such employee is a full-time employee or
temporary employee, whether or

not such employment is
pursuant to a written agreement, whether or not such employment is for a
determined period or is at will, and whether or not such employee has
voluntarily terminated their employment. Further, Prior Owner agrees that he
will not, without the prior written consent of Employer, either directly or
indirectly, on his own behalf or in the service or on behalf of others, solicit
or attempt to solicit any entertainers who have performed at Fort Worth during
the preceding six (6) months prior to the Closing Date until the end of the
period commencing with the Closing Date and ending on the fifth (5th)
anniversary thereof.

4.             Confidentiality.   Prior Owner agrees to hold all Confidential
Information of Fort Worth in confidence for so long as Fort Worth treats such
information as confidential or proprietary, unless otherwise agreed to in
writing by the Employer. During such period Prior Owner will use such
information solely for the purposes set forth in this Agreement unless
otherwise agreed to in writing by Employer. Prior Owner agrees not to copy such
Confidential Information of Fort Worth unless otherwise agreed to in writing by
the Employer. Prior Owner agrees that he shall not make disclosure of any such
Confidential Information to anyone (including subcontractors) except
accounting, business, financial and legal advisors of the Employer to whom
disclosure is necessary for the purpose set forth above. Prior Owner shall
appropriately notify such advisors that the disclosure is made in confidence
and shall be kept in confidence in accordance with this Agreement. The
obligations set forth in this Agreement shall be satisfied by Prior Owner
through the exercise of the same degree of care used to restrict disclosure and
use of its own Confidential Information.

5.             Remedies.

a.             Prior Owner acknowledges and agrees
that, by virtue of his relationship with Fort Worth, great loss and irreparable
damage would be suffered by Employer, including, without limitation, damage to
the goodwill and proprietary interests of Employer, if Prior Owner should
breach or violate any of the terms or provisions of the covenants and
agreements set forth in Sections 2, 3 and/or 4 hereof Prior Owner further
acknowledges that Prior Owner has examined in detail such restrictive covenants
and agreements and agrees that the restraints imposed thereby on Prior Owner
are reasonable in the sense that they are no greater than are necessary to
protect the goodwill of Fort Worth invested in by Employer pursuant to the
Purchase Agreement and to protect Employer in its legitimate business
interests, and the restrictive covenants and agreements are reasonable in the
sense that they are not unduly harsh or oppressive.

b.             The parties acknowledge and agree
that any breach of Sections 2, 3 and/or 4 of this Agreement by Prior Owner
would result in irreparable injury to Employer, and therefore Prior Owner
agrees and consents that Employer shall be entitled to a temporary restraining
order and a permanent injunction to prevent a breach or contemplated breach of
any of the covenants or agreements of Prior Owner contained herein.

c.             In addition, Employer shall be
entitled, upon any breach of Sections 2,3 and/or 4 of this Agreement by Prior Owner,
to demand an accounting and repayment of all profits and other monetary
compensation realized by Prior Owner, directly or through any Competing
Business controlled by Prior Owner, as a result of any such breach.

d.             The rights of Employer under this
Section 5 shall not be in limitation or in lieu of any and all other remedies
that may be available to Employer under the Purchase Agreement or any other
agreement , document or instrument provided for therein, or other remedies
otherwise available at law or in equity. The existence of any claim, demand, action
or cause of action against Prior Owner whether predicated upon this Agreement
or otherwise, shall not constitute a defense to the enforcement by Employer of
any then valid covenants or agreements herein.

6.             Severability. Prior Owner
agrees that the covenants and agreements contained in Sections 2, 3, 4 and 5 of
this Agreement are of the essence of this Agreement; that each such covenant
was agreed to by Employer and Prior Owner as part of the transaction
contemplated by the Purchase Agreement; that Prior Owner has received good,
adequate and valuable consideration for each of such covenants; that each of
such covenants is reasonable and necessary to protect and preserve the
interests and properties of Employer; that Fort Worth and its subsidiaries are
engaged in the Business through the Area: that irreparable loss and damage will
be suffered by Employer should Prior Owner breach any of such covenants and
agreements; that each of such      covenants
and agreements is separate, distinct and severable not only from the other of
such covenants and agreements but also from other and remaining provisions of
this Agreement; and, that the invalidity or unenforceability of any such
covenant or agreement shall not affect the validity or enforceability of any other
such covenants or agreements or any other provision or provisions of this
Agreement unless expressly stated herein. Further, if any provision of this
Agreement is ruled invalid or unenforceable by a court of competent
jurisdiction because of a conflict between such provision and any applicable
law or public policy, such provision shall be redrawn by such court to the
extent required to make such provision consistent with, and valid and
enforceable under, such law or public policy, and as redrawn may be enforced
against Prior Owner.

7.             Tolling. In the event that
Prior Owner should breach any or all of the covenants set forth in Sections 2,
3 and/or 4 hereof, the running of the period of the restrictions set forth in
such section or sections breached shall be tolled during the continuation(s) of
any breach or breaches by Prior Owner, and the running of the period of such
restrictions shall commence or commence again only upon compliance by Prior Owner
with the terms of the applicable section or sections breached.

8.             Consideration. In
consideration for Prior Owner’s compliance with his obligations under this
Agreement, and as part of the transactions contemplated by the Purchase
Agreement, Prior Owner shall receive from Employer the sum of Five Thousand
($5,000.00) Dollars in cash on the Closing Date, and such other consideration
provided for in the Purchase Agreement.. Further, Prior Owner acknowledges and
agrees 

that the terms of this Agreement contained herein are
reasonable in light of the good, adequate and valuable consideration which
Prior Owner shall receive pursuant to the Purchase Agreement.

9.             Waiver. The waiver by either
party of any breach of this Agreement by the other party shall not be effective
unless in writing, and no such waiver shall operate or be construed as the
waiver of the same or another breach on a subsequent occasion.

10.           Governing Law. This Agreement
and the rights of the parties hereunder shall be governed by, and construed in
accordance with, the laws of the State of Texas, without regard to the
conflicts of laws provisions thereof.

11.           Amendment. No amendment or
modification of this Agreement shall be valid or binding upon Employer or Prior
Owner unless made in writing and signed by the parties hereto.

12.           Captions and Section Headings.
Captions and section headings used  herein
are for convenience only and are not a part of this Agreement and shall not be
used in construing it.

13.           Notices. All notices, requests,
demands and other communications hereunder shall be in writing and shall be
deemed to have duly been given if delivered or if mailed, by United States
certified or registered mail, prepaid to the party to which the same is
directed at the following addresses (or at such other addresses as shall be
given in writing by the parties to one another):

a.             If to Prior Owner:

Bryan S. Foster

2171 Manana Drive

Dallas, TX 75202

b.              If to Employer:

VCG Holding Company

Attn: Troy Lowrie

390 Union Blvd., Suite 540

Lakewood, CO 80228

with a copy to:                                                                                                               Martin
A. Grusin

780 Ridge Lake Boulevard

Suite 202

Memphis, TN 38120

Facsimile: (901) 682-3590

VCG Holding Company

Attn: Mike Ocello

390 Union Blvd., Suite 540

Lakewood, CO 80228

Notices delivered
in person shall be effective on the date of delivery. Notices delivered by mail
as aforesaid shall be effective upon the third calendar day subsequent to the
postmark date thereof.

14.           Counterparts. This Agreement
may be executed in one or more counterparts, each of which will be deemed
original, but all of which together shall constitute one and the same
instrument.

15.            Entire Agreement. This
Agreement constitutes the entire understanding and agreement of the parties
with respect to its subject matter and any and all prior agreements,
understandings or representations with respect to the subject matter hereof are
terminated and canceled in their entirety and are of no further force or
effect, but specifically excluding the Purchase Agreement and the agreements,
documents and instruments provided for therein.

IN WITNESS
WHEREOF, Prior Owner and Employer have each executed and delivered this
Agreement as of the date first written above.

	
  

  	
  /s/ Bryan S. Foster

  
	
   

  	
  Bryan S. Foster, Prior Owner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  VCG HOLDING COMPANY,

  
	
   

  	
  A Colorado corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Micheal L. Ocello

  
	
   

  	
  Title:

  	
  President

  

 

SCHEDULE 8.6(b)

COVENANT
NOT TO COMPETE (PRIOR EMPLOYEE)

THIS COVENANT NO
TO COMPETE (this “Agreement’) is made and 
effective as of the 17th day of September 2007 (the “Closing Date”),
between Richard Richardson, a resident of the State of Texas (“Prior Employee”),
and VCG Holding Company, a Colorado corporation (“Employer”).

W I T N E S S E T
H:

WHEREAS, all of
the membership interests in Golden Productions JGC Fort Worth, LLC d/b/a Jaguar’s
Gold Club Fort Worth (“Fort Worth”) are to be acquired by Employer pursuant to
a certain Stock Purchase Agreement (the “Purchase Agreement”); and

WHEREAS, Fort
Worth thereafter will become wholly owned by Employer and will continue to
conduct its respective business in the same manner as such business has been
conducted by Fort Worth prior to the acquisition; and

WHEREAS, Prior
Employee has been an employee of Fort Worth and has intimate knowledge of its
business practices, which, if exploited by Prior Employee in contravention of
this Agreement, would seriously, adversely and irreparably affect the interests
of Employer and Fort Worth and the ability of Fort Worth to continue the
business previously conducted by it; and

WHEREAS, to induce
Employer to make such cash payment to Prior Employee, Prior Employee has agreed
to execute and deliver this Agreement.

NOW, THEREFORE, in
consideration of the above premises, the mutual promises and covenants of the
parties hereto set forth herein, Five Thousand ($5,000.00) Dollars, in cash,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Prior Employee and Employer, intending to be legally
bound, agree as follows:

1.             Definitions.    As used herein, the following terms shall
have the following meanings unless the context otherwise requires:

a.             “Area” shall mean a
radius of fifty (50) miles of Fort Worth, excluding Jaguar’s Gold Club Fort
Worth No. 2 and the club operated in Dallas, Texas by Manana Entertainment,
Inc. d/b/a Jaguar’s Gold Club.

b.              “Business” shall
mean the operations of Fort Worth as conducted as of the Closing Date.

c.             “Competing Business”
shall mean any business organization of whatever form engaged, either Directly
or Indirectly, in any adult entertainment or any business or enterprise which
is the same as, or substantially the same as, Fort Worth.

d.             “Directly or
Indirectly” shall mean (i) acting as an agent, representative, officer,
director, independent contractor or Prior Employee of a Competing Business;
(ii) participating in any such Competing Business as an owner, partner, limited
partner, joint venturer, creditor or shareholder (except as a shareholder
holding less than five percent (5%) interest in a corporation whose shares are
actively traded on a regional or national securities exchange or in the
over-the-counter market); and (iii) communicating to any such Competing
Business the names or addresses or any other information concerning any past,
present, or identified prospective client or customer of Fort Worth or an
entity having title to the goodwill of Fort Worth.

e.             “Restricted Period”
shall mean the period commencing with the Closing Date and ending on the fifth
(5th) anniversary thereof

f.              “Confidential
Information” shall include any and all information related to the purpose and
business of Dallas which is proprietary and not general public knowledge,
specifically including (but without limiting the generality of the foregoing)
any financial statements, appraisals, analysis data, cost analyses or
strategies, clients, customer lists, suppliers, the sales price of Fort Worth
paid by Employer, or any other matters regarding Fort Worth. Information that
is orally disclosed will be considered “Confidential Information” if Employer
indicates to Prior Employee at the time of disclosure the confidential or
proprietary nature of the information and provides a written summary of such
information to Prior Employee within ten (10) days after the initial oral
disclosure thereof. Any technical or business information of a third-person
furnished or disclosed shall be deemed “Confidential Information” of Fort Worth
unless otherwise specifically indicated in writing to the contrary.

2.             Agreement Not to
Compete. Unless otherwise consented to in writing by Employer, Prior
Employee agrees that during the Restricted Period, he will not, within the
Area, either Directly or Indirectly, on his own behalf or in the service or on
behalf of others, engage in any Competing Business or provide managerial,
supervisory, administrative, financial or consulting services or assistance to,
or own a beneficial interest (except as a shareholder holding less than five
percent (5%) interest in a corporation whose shares are actively traded on a
regional or national securities exchange or in the over-the-counter market) in
any Competing Business.

3.             Agreement Not to
Solicit Employees. Prior Employee agrees that during the period commencing
with the Closing Date and ending on the fifth (5th) anniversary thereof, he
will not, without the prior written consent of Employer, either directly or indirectly,
on his own behalf or via sendee or on behalf of others, solicit, divert, or
hire away, or attempt to solicit, divert, or hire away from the employment of
Fort Worth or any of its subsidiaries, any Person employed by Fort Worth or any
of its subsidiaries, whether or not such employee is a full-time employee or
temporary employee, whether or not such employment is pursuant to a written
agreement, whether or not such employment is for a determined period or is at
will, and whether or not such employee has voluntarily terminated their
employment. Further, Prior Employee agrees that he will not, without the prior
written consent of Employer, either directly or indirectly, on his

own behalf or in the
service or on behalf of others, solicit or attempt to solicit any entertainers
who have performed at Fort Worth during the preceding six (6) months prior to
the Closing Date until the end of the period commencing with the Closing Date
and ending on the fifth (5th) anniversary thereof.

4.             Confidentiality.     Prior Employee agrees to hold
all Confidential Information of Fort Worth in confidence for so long as Fort
Worth treats such information as confidential or proprietary, unless otherwise
agreed to in writing by the Employer. During such period Prior Employee will
use such information solely for the purposes set forth in this Agreement unless
otherwise agreed to in writing by Employer. Prior Employee agrees not to copy
such Confidential Information of Fort Worth unless otherwise agreed to in writing
by the Employer. Prior Employee agrees that he shall not make disclosure of any
such Confidential Information to anyone (including subcontractors) except
accounting, business, financial and legal advisors of the Employer to whom
disclosure is necessary for the purpose set forth above. Prior Employee shall
appropriately notify such advisors that the disclosure is made in confidence
and shall be kept in confidence in accordance with this Agreement. The
obligations set forth in this Agreement shall be satisfied by Prior Employee
through the exercise of the same degree of care used to restrict disclosure and
use of its own Confidential Information.

5.             Remedies.

a.             Prior Employee
acknowledges and agrees that, by virtue of his relationship with Fort Worth, great
loss and irreparable damage would be suffered by Employer, including, without
limitation, damage to the goodwill and proprietary interests of Employer, if
Prior Employee should breach or violate any of the terms or provisions of the
covenants and agreements set forth in Sections 2, 3 and/or 4 hereof Prior
Employee further acknowledges that Prior Employee has examined in detail such
restrictive covenants and agreements and agrees that the restraints imposed
thereby on Prior Employee are reasonable in the sense that they are no greater
than are necessary to protect the goodwill of Fort Worth invested in by
Employer pursuant to the Purchase Agreement and to protect Employer in its
legitimate business interests, and the restrictive covenants and agreements are
reasonable in the sense that they are not unduly harsh or oppressive.

b.             The parties
acknowledge and agree that any breach of Sections 2, 3 and/or 4 of this
Agreement by Prior Employee would result in irreparable injury to Employer, and
therefore Prior Employee agrees and consents that Employer shall be entitled to
a temporary restraining order and a permanent injunction to prevent a breach or
contemplated breach of any of the covenants or agreements of Prior Employee contained
herein.

c.             In addition, Employer
shall be entitled, upon any breach of Sections 2, 3 and/or 4 of this Agreement
by Prior Employee, to demand an accounting and repayment of all profits and
other monetary compensation realized by Prior Employee, 

directly or through any
Competing Business controlled by Prior Employee, as a result of any such
breach.

d.             The rights of Employer
under this Section 5 shall not be in limitation or in lieu of any and all other
remedies that may be available to Employer at law or in equity. The existence
of any claim, demand, action or cause of action against Prior Employee, whether
predicated upon this Agreement or otherwise, shall not constitute a defense to
the enforcement by Employer of any then valid covenants or agreements herein.

6.             Severability. Prior
Employee agrees that the covenants and agreements contained in Sections 2, 3, 4
and 5 of this Agreement are of the essence of this Agreement; that Prior
Employee has received good, adequate and valuable consideration for each of
such covenants; that each of such covenants is reasonable and necessary to
protect and preserve the interests and properties of Employer; that Fort Worth
and its subsidiaries are engaged in the Business through the Area: that
irreparable loss and damage will be suffered by Employer should Prior Employee
breach any of such covenants and agreements; that each of such covenants and
agreements is separate, distinct and severable not only from the other of such
covenants and agreements but also from other and remaining provisions of this
Agreement; and, that the invalidity or unenforceability of any such covenant or
agreement shall not affect the validity or enforceability of any other such
covenants or agreements or any other provision or provisions of this Agreement
unless expressly stated herein. Further, if any provision of this Agreement is
ruled invalid or unenforceable by a court of competent jurisdiction because of
a conflict between such provision and any applicable law or public policy, such
provision shall be redrawn by such court to the extent required to make such
provision consistent with, and valid and enforceable under, such law or public
policy, and as redrawn may be enforced against Prior Employee.

7.             Tolling. In the
event that Prior Employee should breach any or all of the covenants set forth
in Sections 2, 3 and/or 4 hereof, the running of the period of the restrictions
set forth in such section or sections breached shall be tolled during the
continuation(s) of any breach or breaches by Prior Employee, and the running of
the period of such restrictions shall commence or commence again only upon
compliance by Prior Employee with the terms of the applicable section or
sections breached.

8.             Consideration.
In consideration for Prior Employee’s compliance with his obligations under
this Agreement, Prior Employee shall receive from Employer the sum of Five
Thousand ($5,000.00) Dollars in cash on the Closing Date. Further, Prior
Employee acknowledges and agrees that the terms of this Agreement contained
herein are reasonable in light of the good, adequate and valuable consideration
which Prior Employee shall receive.

9.             Waiver. The
waiver by either party of any breach of this Agreement by the other party shall
not be effective unless in writing, and no such waiver shall operate or be
construed as the waiver of the same or another breach on a subsequent occasion.

10.           Governing Law.
This Agreement and the rights of the parties hereunder shall be governed by,
and construed in accordance with, the laws of the State of Texas, without
regard to the conflicts of laws provisions thereof.

11.           Amendment. No
amendment or modification of this Agreement shall be valid or binding upon
Employer or Prior Employee unless made in writing and signed by the parties
hereto.

12.           Captions and Section
Headings. Captions and section headings used herein are for convenience
only and are not a part of this Agreement and shall not be used in construing
it.

13.           Notices. All
notices, requests, demands and other communications hereunder shall be in writing
and shall be deemed to have duly been given if delivered or if mailed, by
United States certified or registered mail, prepaid to the party to which the
same is directed at the following addresses (or at such other addresses as
shall be given in writing by the parties to one another):

	
  a.

  	
  If to Prior Employee:

  
	
   

  	
   

  
	
   

  	
   

  	
  Richard
  Richardson

  
	
   

  	
   

  	
  2171 Manana
  Drive

  
	
   

  	
   

  	
  Dallas, TX 75202

  
	
   

  	
   

  	
   

  
	
  b.

  	
  If to Employer:

  
	
   

  	
   

  
	
   

  	
   

  	
  VCG Holding
  Company

  
	
   

  	
   

  	
  Attn: Troy
  Lowrie

  
	
   

  	
   

  	
  390 Union Blvd.,
  Suite 540

  
	
   

  	
   

  	
  Lakewood, CO
  80228

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
  Martin A. Grusin

  
	
   

  	
   

  	
  780 Ridge Lake
  Boulevard

  
	
   

  	
   

  	
  Suite 202

  
	
   

  	
   

  	
  Memphis, TN
  38120

  
	
   

  	
   

  	
  Facsimile: (901)
  682-3590

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VCG Holding
  Company

  
	
   

  	
   

  	
  Attn: Mike
  Ocello

  
	
   

  	
   

  	
  390 Union Blvd.,
  Suite 540

  
	
   

  	
   

  	
  Lakewood, CO
  80228

  

 

Notices delivered
in person shall be effective on the date of delivery. Notices delivered by mail
as aforesaid shall be effective upon the third calendar day subsequent to the
postmark date thereof.

14.           Counterparts.
This Agreement may be executed in one or more counterparts, each of which will
be deemed original, but all of which together shall constitute one and the same
instrument.

15.            Entire Agreement.
This Agreement constitutes the entire understanding and agreement of the
parties with respect to its subject matter and any and all prior agreements,
understandings or representations with respect to the subject matter hereof are
terminated and canceled in their entirety and are of no further force or
effect, but specifically excluding the Purchase Agreement and the agreements,
documents and instruments provided for therein.

IN WITNESS
WHEREOF, Prior Employee and Employer have each executed and delivered this
Agreement as of the date first written above.

	
  

  	
  /s/ Richard Richardson

  	
   

  
	
   

  	
  Richard
  Richardson, Prior Employee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VCG HOLDING
  COMPANY,

  
	
   

  	
  A Colorado
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Micheal L.
  Ocello

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
					

 

SCHEDULE 8.17

OWNERSHIP OF MEMBERSHIP INTERESTS

Bryan S. Foster
hereby certifies that he is the sole owner of 100% of the interests in the business known as Golden
Productions JGC Fort Worth, LLC possessing both legal and beneficial interests,
as of the Closing Date pursuant to the Purchase of Membership Interests entered
into between VCH Holding Company and Golden Productions JCG Fort Worth, LLC
d/b/a Jaguar’s Gold Club Fort Worth dated the      
day of September, 2007 (Agreement), and that such Units, as of the Closing
Date, are free and clear of all liens, claims, charges, and encumbrances of any
kind or nature whatsoever, and at such time the authorization of no other
person or entity shall be required in order to consummate the transactions
contemplated in the Agreement.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster

  

 

SCHEDULE 11.2(e)

OFFICER’S CERTIFICATE

GOLDEN
PRODUCTIONS JGC FORT WORTH, LLC

Officer’s
Certificate

Pursuant to the provisions of the Purchase of Membership Interests dated Sept 14,
2007 (the “Purchase Agreement”),
among Golden Productions JGC
Fort Worth, LLC (hereinafter the “Company”),
Bryan S. Foster (hereinafter
referred to as “Member”) and VCG holding Company (“Purchaser”), and with the understanding that capitalized
terms used herein and not otherwise
defined herein shall have the meanings assigned to them in the Purchase
Agreement, the undersigned hereby certifies that:

1.             I am the duly elected Chief
Manager of the Company, and that, as such,
I am authorized to execute this Officer’s
Certificate on behalf of the Company.

2.             All of the representations and warranties made by the undersigned, whether made individually
or on behalf of the Company, in the Purchase
Agreement are true and correct on and
as of the Closing Date with the same force and effect as though such
representations and warranties as,
individually or in the aggregate, do not have a Material Adverse Effect.

3.             Company has performed and complied in all material
respects with all covenants and agreements required by the Purchase Agreement
to be performed or complied with by it
on or prior to the Closing Date.

IN WITNESS WHEREOF, I have hereunto set my hand this the 14  day
of Sept 2007.

	
  

  	
  GOLDEN PRODUCTIONS JGC FORT WORTH,

  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
   

  	
  Bryan S. Foster

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:  Chief
  Manager

  

 

SCHEDULE 11.2(f)

CHIEF MANAGER’S CERTIFICATE

GOLDEN
PRODUCTIONS JGC FORT WORTH, LLC

Chief Manager’s Certificate

Pursuant to the provisions of that certain Purchase
of Membership Interests dated as of 14th, 2007
(the “Purchase Agreement”), by and
among Golden Productions JGC Fort Worth, LLC (hereinafter
the “Company”), Bryan S. Foster (hereinafter
referred to as “Manager”) and VCG Holding Company (“Purchaser”), and
with the understanding that
capitalized terms used herein and not otherwise
defined herein shall have the meaning assigned to them in
the Purchase Agreement, the undersigned
hereby certifies that:

1.             I am the duly elected Chief Manager
of the Company and that, as such, I am authorized to execute this Chief Manager’s
Certificate on behalf of the Company.

2.             Attached hereto as Exhibit A is Schedule 4.l( b),
which is a true, correct and complete
copy of said Schedule, and
I hereby certify that Golden Productions
JGC Fort Worth, LLC is validly organized and in good standing and nothing
in the Articles of Organization
of the Company and all Amendments thereto in any manner whatsoever prevent myself or the Company from
performing all of its obligations pursuant to the Purchase Agreement referred to hereinabove.

3.             Attached hereto as Exhibit A is
Schedule 4.1(b), which is a true, correct and complete copy
of said Schedule, and I hereby certify that nothing in the Operating
Agreement of Golden Productions JGC Fort
Worth, LLC and all Amendments
thereto in any manner whatsoever
prevent myself or the Company and all amendments thereto from
performing all of its
obligations pursuant to the Purchase Agreement referred to hereinabove.

4.             Attached hereto as Exhibit B is a true, correct and complete copy of the resolution adopted by the sole member of the Company in accordance with applicable law and the Articles of Organization and the Operating Agreement of the Company, and such resolution has not been amended, modified, rescinded or
revoked, and remains in full
force and effect on the date hereof.

5.             The individuals named below are duly authorized representatives of the Company, with
authority to execute and deliver
the Purchase Agreement and
other agreements, documents and instruments
to be executed and delivered by Company in

[INITIALED:  BF]

connection
therewith, and the signatures set forth opposite their names are their true and genuine signatures.

	
  Name

  	
   

  	
  Position

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bryan S. Foster

  	
   

  	
  Chief Manager

  	
   

  	
  /s/ Bryan S. Foster

  	
   

  

 

IN
WITNESS WHEREOF, I have hereunto set my band this 14 day of Sept, 2007.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster, Chief Manager

  

 

EXHIBIT A TO SCHEDULE 11.2(f)

SCHEDULE 4.1(b)

EXCEPTIONS TO STATEMENT
ON LOST RECORDS

Bryan S. Foster hereby states and affirms the following as part of the
purchase of the Membership Interest agreement dated the 17th day of September, 2007, by and
among VCG Holding Company and Golden Productions JGC Fort Worth, LLC and
himself (Agreement):

1.             He is the sole owner of all of the
interests (Units) of Golden Productions JGC Fort Worth, LLC (the Business); and

2.             That the Units, certificates,
membership books, membership transfer ledgers, minute books, regulations, and
seals (if any) of the Business either do not exist any more or are lost; and

3.             Nothing contained in the items set
forth in 2 above in any way has or had any effect on his ability and authority
to perform all of his and the Business’ obligations, representations, covenants
and warranties contained in the Agreement, nor does same have any Material
Adverse Effect as that term is defined in the Agreement on the Business.

	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster

  

 

EXHIBIT B TO SCHEDULE 11.2(f)

RESOLUTION OF SOLE MEMBER OF
 GOLDEN PRODUCTIONS JGC FORT
WORTH, LLC
 d/b/a
 JAGUAR’S GOLD CLUB FORT WORTH

A special meeting of the
sole member of Golden
Productions JGC Fort Worth, LLC (the
“Company”), notice having been waived by the member as reflected hereinbelow,
was held at the principal office
of the Company, on the 14th day
of Sept, 2007.

Present
was: Bryan S. Foster.

On motion duly made and
carried, it was;

RESOLVED, that
Golden Productions JGC Fort
Worth, LLC shall be sold to VCG Holding Company, as evidenced
by a Letter of Intent entered into between Niko Foster and Rich
Richardson, individually and
on behalf of Jaguar’s and VCG Holding Corp., for the sale of Golden Productions JGC Fort
Worth, LLC to VCG Holding Company, and Bryan S. Foster be and is hereby
authorized and empowered herein
to (i) negotiate such terms and conditions
for this purchase as he deems fit and appropriate; and (ii) to
execute and deliver any
and all documents in the name of the Company requisite to the sale.

The undersigned waive all required notice and affirm the decisions reached herein.

	
  

  	
  GOLDEN PRODUCTIONS JGC
  FORT WORTH,

  LLC  

  
	
   

  	
   

  
	
   

  	
  /s/ Bryan S. Foster

  	
   

  
	
   

  	
  Bryan S. Foster, Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]