Document:

Exhibit 10.3

EXECUTION COPY

RESTRICTIVE COVENANT—COVENANT NOT TO COMPETE 

This Agreement is made on 9-14, 2007, between Gregory Kenwood
Gaines, (“Selling Equityholder”), and VCG Holding Corp. (“Purchaser”),
collectively referred to as the “Parties”.

Recitals

This Agreement is made with reference to the following facts,
circumstances, and objectives:

A.                                   Gregory Kenwood Gaines has been associated
with a certain adult business as shareholder known as Platinum Plus, located in
Portland, Maine.

B.                                     Gregory Kenwood Gaines as owner of all (or
substantially all) of the issued and outstanding shares of the capital common
stock of KenKev, Inc. a South Carolina Company and KenKevII, Inc, a Maine
Company, has agreed that Company shall sell to Purchaser all of the interest of
the business operated under the name of Platinum Plus (the “Business”) at 200
Riverside Street, Portland, Maine (the “Location”).

C.                                     The Parties have consented that to enable
Purchaser to conduct a profitable business, it would be of genuine and material
consideration to Purchaser for Selling Equityholder  to
agree that he  shall
not directly or indirectly engage in a Competing Business for a Reasonable
Period of Time within a Geographic Area determined by the Parties to be the
market area of Company, in which such good will may exist.

D.                                    As additional consideration for this
Agreement, Purchaser, including its subsidiaries and affiliates have agreed not
to compete with Selling Equityholder in certain markets.

E.                                      The Parties have determined that such an Agreement
would not be prohibited or void under the law because its only objective is to
protect the value of each others business, including those purchased for
valuable consideration and good faith and without any intent to establish a
monopoly.

Agreement

1.  Definitions.

1.1  Competing Business.
Any business, trade, or operation similar to the Business.

1.2  Reasonable Period of Time.
A period of time commencing on the closing date and terminating three (3) years  after the Effective Date.

1.3  Determined Geographic
Area. A radius of 50  miles from the
Location and as set forth below.

1.4  Effective Date. 9-14,
2007

2.  Covenant Not to Compete.
Seller Equityholder shall, directly or indirectly, or through agent compete
with the Buyer, for a period of 3 years and a radius of 50 miles from the
Location.

In addition, in order to induce Seller to enter into the Purchase and
Sale agreement, VCG agrees not to compete with Seller Equityholder for a period
of three years in any area within 50 miles of any existing businesses of Seller
Equityholder or in any market which Seller Equityholder has a controlling
interest, except for Florida. A listing of all such business is attached as
Addendum A to this Agreement. Seller Equityholder has granted VCG a first right
of refusal on the sale of such businesses as consideration for this provision.

In addition and as additional consideration for this Agreement, for a
Reasonable Period of Time, neither Buyer nor Seller will operate within fifty
(50) miles of a present or future location of the other, however, any Large
Metropolitan Area and the State of Florida are excluded. For purposes of this
Agreement, the term “Large Metropolitan Area” shall include all metropolitan
markets with a population of more than 3 million persons in terms of overall
population in the metropolitan area and includes all present locations where
either Seller Equityholder or VCG presently operates.

3.  Consideration. The
Consideration is set forth in a purchase agreement dated this same date and as
set forth in this Agreement.

4.  Default The Parties
agree that a breach of the Covenant could cause economic harm to the other
which may be difficult to precisely measure in terms of money damages. To
protect and enable each party to fully realize the benefit of the business and
good will being acquired, each party agrees that in the event of a breach in
the Covenant either party may proceed in the circuit court or any other
tribunal having equitable jurisdiction over the other party  to
obtain any appropriate equitable remedies, including but not limited to ex
parte restraining orders and injunctive orders during litigation and following
judgment; in addition to all other remedies provided by law or in equity for
the breach of the Covenant.

5.  Notice. All notices
and payments given under this Covenant shall be either personally delivered or
mailed by first-class mail, postage prepaid, addressed to the Respective
parties at the addresses set forth in the notice provision of the Purchase
Agreement, or to any other address that each Party may designate in writing in
conformance with the terms of this paragraph.

6.  Miscellaneous.

6.1  Entire Agreement.
This Agreement sets forth the entire understanding of the Parties.

6.2  Amendment. This
Agreement may not be changed except by a written document executed by the
Parties. This agreement shall be interpreted in accordance with the law of the
state in which enforcement is sought.

6.3  Binding Effect. This
Agreement shall be binding on and inure to the benefit of the Parties and their
respective heirs, successors, administrators, personal representatives, and
assigns.

The Parties have executed this Agreement on the dates set forth below.
This Agreement is effective as of the Effective Date.

	
  

  	
  PURCHASER

  
	
   

  	
   

  
	
  Dated:

  	
  9-14-07

  	
   

  	
  By: /s/

  	
  Troy Lowrie

  	
   

  
	
   

  	
  VCG HOLDING CORP

  
	
   

  	
  By: Troy Lowrie

  
	
   

  	
  Its: CEO

  
	
   

  	
   

  
	
   

  	
  GREGORY
  KENWOOD GAINES

  
	
   

  	
   

  
	
  Dated:

  	
  9-14-07

  	
   

  	
  By: /s/

  	
  Gregory Kenwood Gaines

  	
   

  
							

 

ADDENDUM A

For
Seller Equityholder

Greenville,
South Carolina

Columbia,
South CarolinaExhibit 10.4

 

DRAFT

CONSULTING-LICENSE
AGREEMENT

This CONSULTING-LICENSE
AGREEMENT (“this Agreement”) is effective as of September 1, 2007, by and
between Alliance Management Partners, LLC, a United States Virgin Islands
limited liability company (“Consultant”), and VCG Holding Corporation, a
Colorado Corporation (Buyer), on behalf of Seller Equityholder,
as defined in that certain Stock Purchase Agreement dated August September
14, 2007 (Seller”), which Stock Purchase Agreement is referred to as “the
Stock Purchase Agreement.”

WHEREAS,
Consultant, with its principal place of business located on St. Croix, United
States Virgin Islands, and through its team of qualified staff individuals
having a broad scope of business and financial expertise, provides specialized
management, consulting and financial services ; and

WHEREAS, Buyer
desires to receive financial, economic development, and management advice from
Consultant, and to avail itself of the expertise, experience, contacts, advice,
and facilities available to Consultant, and Seller desires to transfer over
from Consultant to Buyer the use of certain proprietary management manuals and
software, and other available training aids and spreadsheets, and to utilize the
staff expertise from Consultant for the Stock Purchase by Buyer from Seller.

NOW, THEREFORE,
in consideration of the premises and the mutual covenants herein contained and
for the other good and valuable consideration paid over to Consultant, the
receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.               Services.
Seller agrees to retain Consultant to provide the following Services to Buyer
under the terms and conditions of this Agreement:

(a)                                  Consult
and advise as to decisions concerning the use of Seller’s resources for and on
behalf of Buyer;

(b)                                 Make
recommendations as to the use of the available management expertise and
intellectual property, and to convey over to Buyer all available manuals and
materials of Consultant and Seller; and

(c)                                  Carry
out any consulting and advisory activities as the Seller and Buyer shall
request in writing as to the Sale of the Seller’s business to Buyer pursuant to
the Stock Purchase Agreement..

Consultant agrees to use commercially reasonable efforts in providing
the Services to Buyer and Seller. Consultant shall render said Services in
accordance with al USVI Economic Development Commission requirements, and shall
do so 

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at its offices in the USVI and through its USVI resident employees, and
shall comply with all USVI Territorial laws and Regulations.

Consultant will promptly advise Seller and Buyer of any business facts,
events or circumstances of which Consultant becomes aware that may be material
to Seller’s business or sale transaction to Buyer.

2.               Proprietary
Materials. Consultant shall convey to Buyer the proprietary materials and
license rights as agreed and described in Exhibit A, attached hereto.

Consultant represents that it has and shall continue to develop certain
proprietary materials and software unique to Seller’s business, and shall make
all of its proprietary materials available to the Buyer in accordance with the
terms set forth in the Stock Purchase Agreement. Consultant and Buyer agree
that the proprietary materials are for the use of Buyer, solely, and may not be
assigned transferred, or used for the benefit of any person. Notwithstanding
anything to the contrary herein, Consultant may, from time to time, in its sole
discretion, remove from the license conferred hereunder any of the proprietary
materials as to which a license was previously conferred. In the event that any
proprietary materials are so removed, the Buyer shall immediately cease using
said materials and return same to Consultant. Except as specifically authorized
by Consultant, Buyer shall refrain from altering or editing any proprietary
materials it receives under this Agreement. Buyer acknowledges and agrees that
Consultant and Seller shall retain absolute ownership of the proprietary
materials as to which license rights are conferred hereunder, and that Consultant
grants no right, title or interest in said proprietary materials to Buyer
except as otherwise expressly provided in the Stock Purchase Agreement or
herein through this Consulting License Agreement.

3.               Compensation.
As consideration for the Services provided by Consultant, and in consideration
of the materials and rights conferred by Consultant as set forth herein, Buyer
shall distribute to Consultant the payment set forth on Exhibit B, attached
hereto, and set forth on Exhibit 2.4 of the Stock Purchase Agreement.

4.               Status of
Consultant. Consultant shall, for all legal purposes, be an independent
contractor of Seller and Buyer, and nothing herein shall be construed as making
Buyer or Seller a partner with or an employee of Consultant or any of its
affiliates.

5.               Indemnification.
Seller shall indemnify Consultant (which shall include, solely for purposes of
this section, each of its managers, members, partners, and employees) and shall
hold Consultant harmless from and against any expense, loss, liability or
damage arising out of any claim asserted or threatened to be asserted as a
consequence of any fraud, willful misconduct, bad faith or gross negligence of
Seller or Buyer or its affiliates, and/or its partners or employees. Consultant
shall indemnify Buyer against, and hold it harmless from, any expense, loss
liability or damage arising out of any claim asserted or threatened to 

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be asserted by any third party as a consequence of the
fraud, willful misconduct, bad faith or gross negligence of Consultant, its
affiliates, and/or its partners or employees. The indemnification under this
paragraph shall extend to managers, partners, shareholders, officers,
directors, investors, offerees, and agents of Buyer.

6.               Term and
Termination. The term of this Agreement shall commence on September 1, 2007
as the “Commencement Date,” and shall terminate on the closing of the Purchase
and Sale of the Stock as set forth in the Stock Purchase Agreement set forth
hereinabove unless otherwise extended or terminated as provided in this
Consulting Agreement or under applicable law; and shall be terminated not later
than the closing of the Purchase and Sale of the stock of Kenja Corporation, a
Florida Corporation.

7.               No Recourse.
No recourse under or upon any obligation or covenant of this Agreement, or of
any other agreement, or for any claim based thereon or otherwise in respect
thereof, shall be had against any partner, officer, or employee of Consultant
or Buyer; it being expressly understood that this Agreement and the obligation
issued hereunder are solely company obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by the members,
officers, or employees of Consultant or Client by reason of the obligations,
covenants or agreements contained in this Agreement or implied therefrom.

8.               Counterparts.
This Agreement may be signed in any number of counterparts. Any single
counterpart or a set of counterparts signed in either case by the parties
hereto shall constitute a full or original Agreement for all purposes.

9.               Modification;
Waiver. Except as otherwise expressly provided herein, this Agreement shall
not be amended nor shall any provision of this Agreement be considered modified
or waived unless evidenced by a writing signed by the party to be charged with
such amendment, waiver or modification.

10.         Savings Clause. If
any provision of this Agreement is ineffective or unenforceable for any reason,
such provision will be deemed stricken from this Agreement and the other
provisions of the Agreement will remain in full force and effect. In such
event, the parties will agree in good faith on alternative terms that will
replace the stricken provision and insofar as is possible effectuate the
original intent of the undersigned parties.

11.         Successors and
Assigns. This Agreement shall apply to, inure to the benefit of and be
binding upon and enforceable against the parties hereto and their respective
successors and permitted assigns.

12.         Governing Law.
This Agreement shall be construed in accordance with and governed by the laws
of the United States Virgin Islands.

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13.         Confidentiality.
The identify, ownership, operations and financial affairs of Client constitute “Confidential
Information” to the extent such information is not part of the public record or
otherwise available to the general public through readily accessible public
sources (such as the Internet). Consultant and its employees, counsel and
agents shall maintain all Confidential Information confidential and permit
access to Confidential Information only to such persons who have a need to know
such information to assist in the provisions of Services or to comply with
applicable law or regulations, or court orders.

14.         Entire Agreement.
This Agreement states the entire Agreement between the parties with respect to
the subject matter hereof, and all prior or contemporaneous agreements and
understandings are merged herein and superseded hereby.

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

	
  Seller Equityholder

  	
  Witness:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/G. Kenwood
  Gaines

  	
   

  	
  [SIGNED BY WITNESS; SIGNATURE ILLEGIBLE]

  
	
  G. Kenwood
  Gaines

  	
  Date  9-14-07

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Buyer

  	
   

  	
   

  	
   

  
	
  VCG
  Holding Corporation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/Troy Lowrie

  	
   

  	
  [SIGNED BY WITNESS; SIGNATURE ILLEGIBLE]

  
	
  By:

  	
  President

  	
   

  	
  Date  9-14-07

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For Consultant:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ALLICANCE MANAGEMENT PARTNERS, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ G. Kenwood
  Gaines

  	
   

  	
  [SIGNED BY WITNESS; SIGNATURE ILLEGIBLE]

  
	
  By:

  	
  A& B Partners, LLC

  	
  Date  9-14-07

  
	
  Its:

  	
  Manager

  	
   

  	
   

  	
   

  
							

 

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EXHIBIT A

Proprietary
Materials and License Rights

WAIVED

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EXHIBIT B

Payment
Distribution

At the closing of the
Stock Purchase, the payment of $550,000 set forth on Exhibit 2.4 of the Stock
Purchase Agreement shall be paid to Consultant.

 6

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