Document:

Covenant Not to Compete (Seller)

 Exhibit 10.2 
 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant
to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange Commission. 
 COVENANT NOT TO COMPETE 
 THIS COVENANT NOT TO COMPETE (this “Agreement”) is made and effective as of the Closing
of the Agreement and Plan of Reorganization, between (*NAME CONFIDENTIAL*), a resident of the (*STATE CONFIDENTIAL*) (“Controlling Shareholder”), and VCG Holding Corp., a Colorado corporation, and (*NAME CONFIDENTIAL*), a (*STATE
CONFIDENTIAL*) limited liability company (collectively “Employer”). 
 W I T N E S S E T H: 
 WHEREAS, all of the shares of common stock of (*NAME CONFIDENTIAL*), a (*STATE CONFIDENTIAL*)(*NAME CONFIDENTIAL*) and (*NAME CONFIDENTIAL*)
(“Controlling Shareholder”) are to be acquired by Employer pursuant to a certain Agreement and Plan of Reorganization and Agreement of Merger (the “Merger Agreements”); and 
 WHEREAS, (*NAME CONFIDENTIAL*) 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 (*NAME CONFIDENTIAL*) prior to the acquisition; and 
 WHEREAS, Controlling Shareholder was the sole
shareholder and owner of (*NAME CONFIDENTIAL*). and has intimate knowledge of its business practices, which, if exploited by Controlling Shareholder in contravention of this Agreement, would seriously, adversely and irreparably affect the interests
of Employer and (*NAME CONFIDENTIAL*) and the ability of (*NAME CONFIDENTIAL*) to continue the business previously conducted by it; and 
 WHEREAS, to induce Employer to enter into the Merger Agreements, make such cash and other payments to Controlling Shareholder and consummate the other transactions contemplated by the Merger Agreements, Controlling Shareholder has agreed to
execute and deliver this Agreement. 
 NOW, THEREFORE, in consideration of the transactions contemplated by the Merger Agreements, the
consideration paid and to be paid to Controlling Shareholder under the Merger Agreements, the above premises, the mutual promises and covenants of the parties hereto set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Controlling Shareholder 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: 
  
 KDILLS/VCG/(*NAME CONFIDENTIAL*)/(*NAME CONFIDENTIAL*).doc 
 MAG - V. 8 FINAL

 02/09/08 
  

 1 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 a. “Area” shall mean a radius of twenty five (25) miles from (*ADDRESS CONFIDENTIAL*).

 b. “Business” shall mean the operations of (*NAME CONFIDENTIAL*) as conducted as of the Closing Date. 
 c. “Competing Business” shall mean any business organization of whatever form in the “Area” engaged, either Directly or Indirectly,
in any adult entertainment business or enterprise which is the same as, or substantially the same as, (*NAME CONFIDENTIAL*) (a sexually oriented business which features erotic female striptease) and/or which uses the name (*NAME CONFIDENTIAL*) or
any name which is substantially similar, using the name (*NAME CONFIDENTIAL*) or (*NAME CONFIDENTIAL*) in its name, excluding, however, the (*NAME CONFIDENTIAL*) located at (*ADDRESS CONFIDENTIAL*) (*STATE CONFIDENTIAL*) (also referenced as
(*ADDRESS CONFIDENTIAL*), or any other such business currently owned or controlled, directly or indirectly, by the Controlling Shareholder or in which Controlling Shareholder is an shareholder , member partner officer or director including (*NAME
CONFIDENTIAL*), (*NAME CONFIDENTIAL*). (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*) (Technology), (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*),(*NAME CONFIDENTIAL*)., (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*),(*NAME CONFIDENTIAL*). (*NAME
CONFIDENTIAL*) plus any new or future adult entertainment facilities, or adult cabarets, that are subsequently opened and owned or controlled by Controlling Shareholder, operated primarily for the Hispanic community and market wherein at least 80%
of the language and music is Spanish and 80% of the, employees and contracting employees are primarily of Latin descent .It shall also not include any other bar, nightclub, and/or restaurant not featuring erotic female striptease including a country
and western club, dance hall, dance club, sports bar “Hooter’s type establishment, (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*),(*NAME CONFIDENTIAL*) , and (*NAME CONFIDENTIAL*); provided, however, none of the SOB businesses may be moved
from its current locations to a location which is within the Area without the written consent of the Employer, further provided, however, (*NAME CONFIDENTIAL*)(*STATE CONFIDENTIAL*) which may be moved within 1,000 feet of its current location, and
(*NAME CONFIDENTIAL*) which may move unrestricted, and the (*STATE CONFIDENTIAL*) (*NAME CONFIDENTIAL*) may move to any location in (*STATE CONFIDENTIAL*). 
 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 (*NAME
CONFIDENTIAL*) or an entity having title to the goodwill of (*NAME 

  

 2 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 
CONFIDENTIAL*). Nothing herein shall prevent Controlling Shareholder from acting as consultant or landlord to Employer. 
 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 (*NAME CONFIDENTIAL*)
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 (*NAME CONFIDENTIAL*) paid by Employer, or any other matters regarding (*NAME CONFIDENTIAL*). Information that is orally disclosed will be considered “Confidential Information” if Employer indicates to
Controlling Shareholder at the time of disclosure the confidential or proprietary nature of the information and provides a written summary of such information to Controlling Shareholder 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 (*NAME CONFIDENTIAL*) unless otherwise specifically indicated in writing to the contrary.
“Confidential Information” shall not include or prevent the use of the general business acumen, expertise and knowledge of Controlling Shareholder developed over twenty three plus years of experience running adult entertainment
establishments. 
 2. Agreement Not to Compete. Unless otherwise consented to in writing by Employer, Controlling Shareholder 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. Controlling Shareholder also agrees that as to any locations of (*NAME CONFIDENTIAL*) opened in the future within five (5) miles of the location of (*NAME CONFIDENTIAL*)
(which this Covenant does not prevent provided the business does not use the name (*NAME CONFIDENTIAL*) or similar thereto) Controlling Shareholder may not be involved in the onsite day today operations of said business for a period of three
(3) years from the execution hereof(but may act solely as a Director of said corporation). 
 3. Agreement Not to Solicit
Employees. Controlling Shareholder agrees that during the period commencing with the Closing Date and ending on the eighteenth (18th) month 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 (*NAME CONFIDENTIAL*) or any of its subsidiaries, managers, 

  

 3 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 
floormen, and D.J.’s employed by (*NAME CONFIDENTIAL*) 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. As to other
employees, the Controlling Shareholder agrees to the same restrictions as stated above but for a period of only six (6) months from the anniversary of the Closing, provided, however, this provision shall not apply to cleaning crews or members
of the cleaning staff. Further, Controlling Shareholder agrees that he will not, without the prior written consent of Employer, solicit, either directly or indirectly, on his own behalf or in the service or on behalf of others, to hire, contract or
attempt to hire or contract any entertainers who have performed at (*NAME CONFIDENTIAL*) 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 eighteenth
(18th) month anniversary thereof. 
 4. Confidentiality. Controlling Shareholder agrees to hold all Confidential Information of
(*NAME CONFIDENTIAL*) in confidence for so long as (*NAME CONFIDENTIAL*) treats such information as confidential or proprietary, unless otherwise agreed to in writing by the Employer. During such period Controlling Shareholder will use such
information solely for the purpose set forth in this Agreement unless otherwise agreed to in writing by Employer. Controlling Shareholder agrees not to copy such Confidential Information of (*NAME CONFIDENTIAL*) unless otherwise agreed to in writing
by the Employer. Controlling Shareholder 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 purposes set forth above. Controlling Shareholder 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 Controlling Shareholder through the exercise of the same degree of care used to restrict disclosure and use of its own Confidential Information. Nothing herein will prevent disclosure of Confidential Information
if compelled by Court Order or Subpoena. 
 5. Remedies. 
 a. Controlling Shareholder acknowledges and agrees that, by virtue of his relationship with (*NAME CONFIDENTIAL*), great loss and irreparable damage would be suffered by Employer, including, without limitation, damage
to the goodwill and proprietary interests of Employer, if Controlling Shareholder 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. Controlling Shareholder further
acknowledges that Controlling Shareholder has examined in detail such restrictive covenants and agreements and agrees that the restraints imposed thereby on Controlling Shareholder are reasonable in the sense that they are no greater than are
necessary to protect the goodwill of (*NAME 

  

 4 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 
CONFIDENTIAL*) invested in by Employer pursuant to the Merger Agreements 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 Controlling Shareholder would result in irreparable injury to Employer, and therefore Controlling Shareholder 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 Controlling Shareholder contained herein. 
 c. In addition, Employer shall be entitled, upon any breach of Sections 2, 3 and/or 4 of this Agreement by Controlling Shareholder, to demand an accounting and repayment of all profits and other monetary compensation
realized by Controlling Shareholder, directly or through any Competing Business controlled by Controlling Shareholder, 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 Merger Agreements 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 Controlling Shareholder 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. Controlling
Shareholder 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 Controlling Shareholder as part of the
transactions contemplated by the Merger Agreements; that Controlling Shareholder 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 (*NAME CONFIDENTIAL*) and its subsidiaries are engaged in the Business through the Area: that irreparable loss and damage will be suffered by Employer should Controlling Shareholder 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 Controlling Shareholder. 
  

 5 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 7. Tolling. In the event that Controlling Shareholder 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 Controlling Shareholder, and
the running of the period of such restrictions shall commence or commence again only upon compliance by Controlling Shareholder with the terms of the applicable section or sections breached. 
 8. Consideration. In consideration for Controlling Shareholder’s compliance with his obligations under this Agreement, and as part of the
transactions contemplated by the Merger Agreements, Controlling Shareholder 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 Merger Agreements.
Further, Controlling Shareholder acknowledges and agrees that the terms of this Agreement contained herein are reasonable in light of the good, adequate and valuable consideration which Controlling Shareholder shall receive pursuant to the Merger
Agreements. 
 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 CONFIDENTIAL*), 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 Controlling Shareholder 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 Controlling Shareholder: 

  

			
		  	(*NAME AND ADDRESS CONFIDENTIAL*)
		
	With a copy to:	  	
		
		  	(*NAME AND ADDRESS CONFIDENTIAL*)

  

 6 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

	 	b.	If to Employer: 

  

			
		  	Troy Lowrie
		  	Brent Lewis
		  	VCG Holding Corp.
		  	390 Union Blvd., Suite 540
		  	Lakewood, CO 80228
		
	With a copy to:	  	VCG Holding Company
		  	Attn: Mike Ocello
		  	390 Union Blvd., Suite 540
		  	Lakewood, CO 80228
		
		  	Martin A. Grusin
		  	780 Ridge Lake Boulevard
		  	Suite 202
		  	Memphis, TN 38120
		  	Facsimile: (901) 682-3590

 Notices delivered in person shall be effective on the date of actual delivery. Notices delivered
by mail as aforesaid shall be effective upon actual receipt. 
 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 Merger Agreements and the agreements, documents and instruments provided for therein. 
 16. (*NAME CONFIDENTIAL*) This Agreement does not give Employer any legal ownership of or right to use the trade name or service mark (*NAME
CONFIDENTIAL*) except to prevent use of same by Controlling Shareholder in the Area under the express terms of this Covenant. All parties hereto recognize Employer obtained the non exclusive rights of (*NAME CONFIDENTIAL*) through “the Merger
Agreements” to use (*NAME CONFIDENTIAL*) solely at (*ADDRESS CONFIDENTIAL*) and such right to use said name at its current location shall continue for as long as the Employer shall operate the business at the current location, provided however,
said right shall terminate in 2033 pursuant to one certain Trademark License Agreement effective August 1, 2003. 
  

 7 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

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

			
	 /s/ (*NAME CONFIDENTIAL*)

	(*NAME CONFIDENTIAL*)
	Controlling Shareholder
	
	VCG HOLDING CORP.
	A Colorado corporation
	Employer
		
	By:	 	 /s/ Michael L. Ocello

	Title:	 	President
	
	(*NAME CONFIDENTIAL*)
	A (*STATE CONFIDENTIAL*) limited liability company
	Employer
		
	By:	 	 /s/ Michael L. Ocello

	Title:	 	V. President

  

 8Covenant Not to Compete (Prior Employee)

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 Exhibit 10.3 
 COVENANT NOT TO COMPETE 
 THIS COVENANT NOT TO COMPETE (this “Agreement”) is made and
effective as of the Closing of the Agreement and Plan of Reorganization between (*NAME CONFIDENTIAL*) and VCG Holding Corp. and (*NAME CONFIDENTIAL*), between (*NAME CONFIDENTIAL*) a resident of the State of (*STATE CONFIDENTIAL*) (“Prior
Employee”), and VCG Holding Corp., a Colorado corporation, and (*NAME CONFIDENTIAL*), a (*STATE CONFIDENTIAL*) limited liability company (“collectively Employer”). 
 W I T N E S S E T H: 
 WHEREAS, all of the shares of common stock of (*NAME
CONFIDENTIAL*), Inc., a (*STATE CONFIDENTIAL *) corporation (*NAME CONFIDENTIAL*) and (*NAME CONFIDENTIAL*)(“Controlling Shareholder”) are to be acquired by Employer pursuant to a certain Agreement and Plan of Reorganization and Agreement
of Merger(the “Merger Agreements”); and 
 WHEREAS, (*NAME CONFIDENTIAL*) 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 (*NAME CONFIDENTIAL*) prior to the acquisition; and 
 WHEREAS, Prior Employee has been a consultant to (*NAME CONFIDENTIAL*) 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 (*NAME CONFIDENTIAL*) and the ability of (*NAME CONFIDENTIAL*) 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, 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 twenty-five (25) miles from (*ADDRESS CONFIDENTIAL*), (*STATE AND ZIP CODE CONFIDENTIAL*). 
  

 Kdills/vcg/(*NAME CONFIDENTIAL*)/CNTC (*NAME CONFIDENTIAL*).doc 
 MAG - V. 8 FINAL 
 2/9/08 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 b. “Business” shall mean the operations of (*NAME CONFIDENTIAL*) 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, (*NAME CONFIDENTIAL*) (a sexually oriented business which features erotic female striptease) and/or which uses the name (*NAME
CONFIDENTIAL*) or any name which is substantially similar, using the name (*NAME CONFIDENTIAL*)or (*NAME CONFIDENTIAL*) in its name, excluding, however, the (*NAME CONFIDENTIAL*) located at (*ADDRESS CONFIDENTIAL*) (*STATE CONFIDENTIAL*) (also
referenced as (*ADDRESS CONFIDENTIAL*), or any other such business currently owned or controlled, directly or indirectly, by the Controlling Shareholder, or in which Controlling Shareholder is an shareholder , member partner officer or director
including (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*). (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*). (Technology), (NAME CONFIDENTIAL*)., (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*),(*NAME CONFIDENTIAL*)” plus any new
or future adult entertainment facilities, or adult cabarets, that are subsequently opened and owned or controlled by Controlling Shareholder, operated primarily for the Hispanic community and market wherein at least 80% of the language and music is
Spanish and 80% of the, employees and contracting employees are primarily of Latin descent .It shall also not include any other bar, nightclub, and/or restaurant not featuring erotic female striptease including a country and western club, dance
hall, dance club, sports bar “Hooter’s type establishment, (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*), (*NAME CONFIDENTIAL*) (*NAME CONFIDENTIAL), and (*NAME CONFIDENTIAL*) provided, however, none of the SOB businesses may be moved from
its current locations to a location which is within the Area without the written consent of the Employer, further provided, however, (*NAME CONFIDENTIAL*) (*STATE CONFIDENTIAL*) which may be moved within 1,000 feet of its current location, and
(*NAME CONFIDENTIAL*) which may move unrestricted and the (*STATE CONFIDENTIAL*) (*NAME CONFIDENTIAL*) may move to any location in (*STATE CONFIDENTIAL*). 
 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 (*NAME
CONFIDENTIAL*) or an entity having title to the goodwill of (*NAME CONFIDENTIAL*). Nothing herein shall prevent Prior Employee from acting as consultant or landlord to Employer. 
  

 2 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 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 (*NAME CONFIDENTIAL*) 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 (*NAME CONFIDENTIAL*) paid by Employer, or any other matters regarding (*NAME CONFIDENTIAL*). 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 (*NAME CONFIDENTIAL*) unless otherwise specifically indicated in writing to the
contrary. “Confidential Information” shall not include or prevent the use of the general business acumen, expertise and knowledge of Controlling Shareholder or Prior Employee developed over twenty three plus years of experience running
adult entertainment establishments. 
 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. Although
Prior Employee has no ownership interest in (*NAME CONFIDENTIAL*), Prior Employee agrees that during the period commencing with the Closing Date and ending on the eighteenth (18th) month 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 (*NAME CONFIDENTIAL*) or any of its
subsidiaries, managers, floormen, and D.J.’s employed by (*NAME CONFIDENTIAL*) 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. As to other employees, the Prior Employee agrees to the same restrictions as stated
above but for a period of only six (6) months from the anniversary of the Closing, provided, however, this provision shall not apply to cleaning crews or members of the cleaning staff. Further, Prior Employee agrees that he will not, without
the prior written consent of Employer, solicit, either directly or indirectly, on his own behalf or in the service or on behalf of others, to hire, contract or attempt to hire or 

  

 3 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 
contract any entertainers who have performed at (*NAME CONFIDENTIAL*) 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 eighteenth (18th) month anniversary thereof. 
 4. Confidentiality.
Prior Employee agrees to hold all Confidential Information of (*NAME CONFIDENTIAL*) in confidence for so long as (*NAME CONFIDENTIAL*) 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 (*NAME
CONFIDENTIAL*) 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. Nothing herein will prevent
disclosure of Confidential Information if compelled by Court Order or Subpoena. 
 5. Remedies. 
 a. Prior Employee acknowledges and agrees that, by virtue of his relationship with (*NAME CONFIDENTIAL*), 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 (*NAME CONFIDENTIAL*) invested in by Employer pursuant to the Merger Agreements 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 

  

 4 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 
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 (*NAME CONFIDENTIAL*) 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 pursuant to the Merger Agreements. 
  

 5 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 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 (*STATE CONFIDENTIAL*), 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:	 	
		 		 	(*NAME AND ADDRESS CONFIDENTIAL*)
			
		 	With a copy to:	 	
			
		 		 	(*NAME AND ADDRESS CONFIDENTIAL*)
			
	 b.      
	 	If to Employer:	 	
			
		 		 	 Troy Lowrie
 Brent Lewis
 VCG Holding Corp.
 390 Union Blvd., Suite 540
 Lakewood, CO 80228

			
		 	With a copy to:	 	 VCG Holding Company
 Attn: Mike Ocello
 390 Union Blvd., Suite 540
 Lakewood, CO 80228

			
		 		 	 Martin A. Grusin
 780 Ridge Lake Boulevard
 Suite 202
 Memphis, TN 38120
 Facsimile: (901) 682-3590

  

 6 

 CONFIDENTIAL TREATMENT REQUESTED 
 Portions of this exhibits indicated by “(*[TEXT]*)” have been omitted pursuant to a request for confidential treatment and such omitted portions have been filed separately with the Securities and Exchange
Commission. 
  

 Notices delivered in person shall be effective on the date of actual delivery. Notices delivered by
mail as aforesaid shall be effective upon actual receipt. 
 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 Merger Agreements and the agreements, documents and instruments provided for therein. 
 16. (*NAME CONFIDENTIAL*) This Agreement does not give Employer any legal ownership of or right to use the trade name or service mark (*NAME
CONFIDENTIAL*) except to prevent use of same by Controlling Shareholder in the Area under the express terms of this Covenant. All parties hereto recognize Employer obtained the non exclusive rights of (*NAME CONFIDENTIAL*) through “ the Merger
Agreements” to use (*NAME CONFIDENTIAL*) solely at (*ADDRESS CONFIDENTIAL*) (*STATE CONFIDENTIAL*) and such right to use said name at its current location shall continue for as long as the Employer shall operate the business at the current
location, provided however, said right shall terminate in 2033 pursuant to one certain Trademark License Agreement effective August 1, 2003 
 IN WITNESS WHEREOF, Prior Employee and Employer have each executed and delivered this Agreement as of the date first written above. 
  

			
	 \s\(*NAME CONFIDENTIAL*)

	(*NAME CONFIDENTIAL*) Prior Employee
	
	VCG HOLDING CORP.
	A Colorado corporation
		
	 By:
	 	 \s\Michael L. Ocello

	 Title:
	 	President
	
	(*NAME CONFIDENTIAL*)
	A (*STATE CONFIDENTIAL*) limited liability company
		
	 By:
	 	 \s\Michael L. Ocello

	 Title:
	 	V. President

  

 7

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