Document:

Prepared by R.R. Donnelley Financial -- Management Contract

  
 EXHIBIT 10.9 
  
 MANAGEMENT CONTRACT 
  
 THIS AGREEMENT is
made effective May 1, 2002, by and between International Entertainment Consultants, Inc., a Colorado corporation (“Manager”), and VCG Holding Corp., a Colorado corporation (“Company”). 
  
 RECITALS 
  
 Company is in the business of owning and operating first-class adult entertainment nightclubs. 
  
 Company desires the benefit of the experience, expertise, and services of Manager upon the terms set forth in this Agreement, and Manager is willing to accept such engagement on the terms as set forth in the Agreement. 

 
 SECTION I 
  
 TERM OF AGREEMENT 
  
 The term of this Agreement will be for one year from May 1, 2002 and
will automatically be extended for subsequent periods of one year, unless a party notifies the other in writing at least thirty (30) days prior to expiration of the Agreement that the Agreement is not being extended. 
  
 SECTION II 
  
 SERVICES OF MANAGER 
  
 Manager shall be the exclusive Manager of nightclubs set forth on
Schedule A hereto, as such shall be amended from time to time to give effect to Company’s acquisitions and dispositions of nightclubs. Manager shall provide Company with all services necessary for the first-class operation of such nightclubs,
including, but not limited to, the following: 
  
 A.  Accounting.    Manager shall keep all daily accounts and perform the necessary daily bookkeeping in connection with the business of each of the nightclubs. Manager shall submit a monthly
statement to Company showing the details of the prior month’s operations for each nightclub in accordance with Section VIII. Company shall have the right itself, or through its agents, counsel, or auditors, at any time in its discretion to
audit all accounts and bookkeeping records maintained in the operation of said business. 
  
 B.  Facilities.    Manager shall have the responsibility to maintain the exterior of the buildings and the interior design and decor to provide the appearance and atmosphere, of an upscale
restaurant and to maintain state of the art sound systems, theater-quality lighting and professional stage design. 
 

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 C.  Professional On-Site
Management.    Manager shall have the responsibility to ensure that: (1) the facilities are managed by persons who are highly experienced in the restaurant hospitality industry; and, (2) the overall quality of the nightclubs
is maintained. This will include, but not be limited to, (i) providing attentive customer service; (ii) supervising all personnel, including kitchen staff, bartenders, security, waitresses, disc jockey’s and performers; and (iii) maintaining
the facility as clean, inviting, safe and comfortable. 
  
 D.  Food and Beverage
Operations.    Manager shall have the responsibility to ensure that: (1) the food and beverage operations meet the high standard of business entertaining provided by an upscale restaurant (2) an experienced chef is staffing
and operating the food service and (3) an experienced bar manager is staffing and operating the beverage service. 
  
 E.  Entertainment.    Manager shall have the responsibility to assure that: (1) the facilities provide premium quality female performers and (2) the highest standards are maintained for
appearance, attitude, demeanor, dress and personality. 
  
 F.  Buying:    Manager shall have the responsibility of purchasing at Company’s expense any and all items necessary for the successful daily operation of the business, including, but not
limited to, food, restaurant supplies, alcoholic beverages, soft drinks, advertising and entertainment subject to approval of Company and without any profit to Manager on any such purchases. 
  
 G.  Furniture and Equipment:    Manager shall advise Company of the necessity of purchasing any furniture and equipment
for the furtherance of the business. Company shall have the sole discretion in ordering the furniture and equipment purchases. 
  
 Specifically, and without limitation, Manager shall be responsible for the following: 
  

	 	•
	 
	Recruiting, hiring, training and supervision of on-site management; 
 

  

	 	•
	 
	Implementing club operating policies and standards and monitoring compliance; 
 

  

	 	•
	 
	Establishing and maintaining accounting and inventory controls and record keeping for the clubs; 
 

  

	 	•
	 
	Negotiating all contracts including those with vendors and suppliers, and particularly food and beverage; 
 

  

	 	•
	 
	Developing and implementing, advertising, marketing and promotional programs; 
 

  

	 	•
	 
	Developing and maintaining relationships with local authorities, vendors and area businesses; and 
 

  

	 	•
	 
	Monitoring and maintaining the quality and performance of each club. 
 

 

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 SECTION III 
  
 DEPOSIT OF FUNDS 
  
 All funds derived
from the operation of Company’s nightclubs shall be promptly deposited by Manager in a federally insured bank depository selected by Company. Funds shall be expended by Company, or by Manager with the approval of Company, for the direct
operating and administrative expenses of Company’s nightclubs, including, but not limited to, the payment of those items listed in Section II.F., applicable taxes, insurance, Workers’ Compensation and liability insurance premiums,
attributable to Company’s individual nightclubs. 
  
 SECTION IV 
  
 EMPLOYEES 
  
 Company shall have the ultimate authority to hire and discharge all employees necessary for the operation of the business, to determine their compensation and to approve any allowances for food and beverages on the premises. Company
may delegate to Manager the authority to perform these functions. It is expressly understood that Company shall have the ultimate authority to hire and discharge all employees that work for Company. 
  
 SECTION V 
  
 LIABILITY FOR LOSSES 
  
 Liability for expenses for damages incurred in the operation of the
business shall be paid by Company. Manager shall be liable for any loss or damage sustained by Company by reason of Manager’s breach of this Agreement, or the negligence or intentional or willful misconduct on the part of its officers, agents
and employees. 
  
 SECTION VI 
  
 MANAGER’S COMPENSATION 
  
 Company’s individual
nightclubs will pay Manager for each such nightclub’s pro rata share of Manager’s general operating and administrative expenses for all nightclubs operated by Manager. Manager currently manages twelve nightclubs. Manager’s general
operating and administrative expenses for all of the nightclubs include, but are not limited to, (i) one national director; (ii) five area directors; (iii) three assistant area directors; (iv) twelve general managers; five accounting staff; and, (v)
two office staff. Manager’s general operating and administrative expenses do not include the direct operating expenses of Company’s individual nightclubs. These direct operating expenses include, but are not limited to, (i) maintenance of
facilities, furniture and equipment, (ii) employee payroll, withholding and benefits, (iii) food and beverage operations, (iv) advertising and (v) entertainment. Notwithstanding anything to the contrary in this Agreement, Manager acknowledges and
agrees that each individual nightclub of Company 
 

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 set forth on Schedule A shall be solely responsible and liable for (and Company and Company’s other nightclubs shall not be responsible or
liable for) the payment of (i) Manager for such nightclub’s pro rata share of Manager’s general operating and administrative expenses and (ii) such nightclub’s direct operating expenses. Other than as set forth above, Manager will not
receive any compensation for the services provided under this Agreement. 
  
 SECTION VII 
  
 MAINTENANCE OF OPERATING EQUIPMENT 
  
 Real and personal property and all furniture, fixtures, machinery, appliances, operating equipment, and all personal property used in the operation of the business shall be maintained in a reasonably
satisfactory repair, and in such condition that all such equipment be satisfactory for the operation of the business. For such purpose, Manager may expend from the gross funds derived from the operation of the business an amount adequate for such
purposes subject to the prior approval of Company. 
  
 SECTION VIII 
  
 ACCOUNTING PERIOD 
  
 The net cash receipts derived from the operation of the business shall be determined at the termination of month periods, the first to be the period beginning on the date of this Agreement. Subsequent monthly periods shall begin on
the first day of each month thereafter and terminate on the last day of such month. Such periods shall be referred to as “accounting periods”. Promptly on the expiration of each accounting period, or as soon thereafter as practicable (but
not later than the fifteenth (15th ) day of the ensuing month), Manager shall cause to be prepared an accurate settlement of all transactions relating to the operation of the business for the preceding accounting period, and submit such statement to
Company. 
  
 SECTION IX 
  
 TERMINATION 
  
 This Agreement shall only terminate upon the
occurrence of any of the following: 
  
 A.  Termination by written agreement executed by
both parties; 
  
 B.  The declaration by an order or decree of a court of competent
jurisdiction that this Agreement is invalid or illegal in whole or in material part; 
  
 C.  The issuance by any court or governmental agency or commission which restricts either party’s ability to perform as contemplated herein; or 
  
 D.  An Event of Default (as defined in below) by any party hereto. 
 

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 Upon the termination of this Agreement, Manager shall not be under any further
obligation to provide any further services to Company and all amounts due and payable hereunder by Company shall be prorated as of the termination date and become immediately due and payable by Company; provided, however, to the extent that such
amounts are in dispute, only the undisputed amount shall become due and payable. Unless otherwise agreed to in writing executed by both parties, such termination shall not preclude an action by either party for damages resulting from any breach of
the provisions of this Agreement. 
  
 The following, after the expiration of the applicable cure periods specified
below, shall constitute events of default (each an “Event of Default”) under this Agreement: 
  
 A.  Company’s failure to pay within five days of the date due any amount required hereunder; 
  
 B.  A material breach by either party in the observance or performance of any covenant, condition, obligation or agreement contained herein; 
  
 C.  A material breach of any representation or warranty made by either party herein; 
  
 D.  An assignment for the benefit of creditors or appointment of a committee of creditors, or making or sending
notice of an intended bulk transfer, by either party; 
  
 E.  The filing by or against
either party of any lawful petition for any relief under the bankruptcy laws of the United States now or hereafter in effect or under any insolvency, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or
hereafter in effect (whether at law or in equity); 
  
 F.  The termination of the business
of either party; or 
  
 G.  The filing of any lawful petition or application to any court
or tribunal, at law or in equity by or against either party for the appointment of any receiver or trustee for either party or any substantial portion of the property of either party. 
  
 An Event of Default shall not be deemed to have occurred until the defaulting party has received written notice from the non-defaulting party specifying the event that, if
not timely cured would constitute an Event of Default, and such event remains uncured for a period of thirty (30) days after such notice. 
  
 SECTION X 
  
 REPRESENTATIONS AND WARRANTIES OF MANAGER 
  
 Manager hereby represents and warrants to Company as follows: (1) Manager is a corporation duly organized, validly existing and in good
standing under the laws of the State of 
 

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 Colorado; (2) Manager has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder and
to carry on its business as presently conducted; (3) Manager is, and will at all times while this Agreement is in effect remain, duly qualified, authorized to do business and in good standing as a foreign corporation in all jurisdictions in which
the nature of its activities hereunder makes such qualification necessary; and (4) At all times while this Agreement is in effect, Manager will operate the nightclubs and maintain the condition of the nightclubs so as not to be in violation of any
applicable governmental requirements, including, but not limited to, any applicable federal, state or local law or regulations. 
  
 SECTION XI 
  
 GENERAL PROVISIONS 
  
 1.  Further Cooperation.    Each party, at the request of the other and without additional consideration, shall execute and deliver or
shall cause to be executed and delivered from time to time such further documents, and shall take such other actions as the other party may require to accomplish the purposes of, and transactions contemplated by, this Agreement. 

 
 2.  Entire Agreement.    This Agreement constitutes the entire agreement between the
parties pertaining to the subject matter hereof, and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties pertaining to the subject matter hereof. There are no warranties,
representations or other agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein or in the documents delivered pursuant hereto. No supplement, amendment, alteration, modification, waiver
or termination of this Agreement shall be binding unless executed in writing by the parties hereto. 
  
 3.  Waiver.    No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof, nor shall any waiver constitute a continuing waiver
unless otherwise expressly provided. 
  
 4.  Captions.    The captions in this
Agreement are for convenience only, and shall not be considered a part of, or affect the construction or interpretation, of any provision of this Agreement. 
  
 5.  No Third-party Rights.    Nothing in this agreement shall be deemed to create any right on the part of any person or entity not a party to this Agreement.

  
 6.  Notices.    Any notice required or permitted to be given hereunder shall
be in writing and will be deemed received (a) upon personal delivery or upon confirmed transmission by telecopier or similar facsimile transmission device, (b) on the first business day after receipted delivery to a courier service which confirms
next-business-day delivery, or (c) on the third business day after mailing, by registered or certified United States mail, postage prepaid, to the appropriate party at its address set forth below: 
 

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 If to Manager: 
  
 International Entertainment Consultants, Inc. 
 1601 W. Evans Avenue, Suite 200 
 Denver, Colorado 80223 
 Attn: Troy Lowrie, President 
  
 If to Company: 
  
 VCG Holding Corp. 
 1601 W. Evans Avenue, Suite 200 
 Denver,
Colorado 80223 
 Attn: Micheal L. Ocello, President 
  
 7.  Governing Law, Jurisdiction and Venue.    This Agreement and other documents delivered pursuant hereto and the legal relations between the parties shall be
governed and construed in accordance with the law of the State of Colorado. Any dispute or litigation with respect to the representations, warranties, terms and conditions of this Agreement, shall be litigated in the any court of competent
jurisdiction within the State of Colorado and the parties hereby expressly consent to subject matter and personal jurisdiction and venue in said courts. 
  
 8.  Assignment.    This Agreement may not be assigned by Manager without the written consent of Company, and any assignment without such consent shall be void

  
 9.  Severability.    If any provision of this Agreement, or the application
of such provision to any person or circumstance, shall be held invalid, the remainder of this Agreement, shall not be affected thereby. In the event that any such provision is deemed to be invalid, the parties agree that a court making such
judgement shall have the ability to interpret and apply such provision to the fullest extent permitted by law, within such provision’s original intent. 
  
 10.  Attorney’s Fees.    In the event of any litigation between the parties to declare or enforce any provision of this Agreement, the prevailing party or
parties shall be entitled to recover from the losing party or parties, in addition to any other recovery and costs, reasonable expenses, attorney’s fees, and costs associated with such litigation, in both the trial and in all appellate courts.

  
 11.  Presumption.    This Agreement or any section thereof shall not be
construed against any party due to the fact that said Agreement or any section thereof was drafted by said party. 
  
 12.  Counterparts.    This Agreement may be executed in several counterparts and all so executed shall constitute one Agreement, binding on all the parties hereto even though all the parties are
not signatories to the original or the same counterpart. 
 

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 IN WITNESS WHEREOF, the parties have executed this Agreement the first day of
July, 2002. 
  
 
	 INTERNATIONAL ENTERTAINMENT CONSULTANTS,
INC.
 
	 
	 By:
 	 	 /s/    TROY LOWRIE        

	  	 	 Troy Lowrie
 President
 
	 
	 Attest:
 	 	 /s/    MARY
BOWLES-COOK        
 

	  	 	 Mary Bowles-Cook
 Secretary
 
	 
	 VCG HOLDING CORP.
 
	 
	 By:
 	 	 /s/    MICHEAL L.
OCELLO        
 

	  	 	 Micheal L. Ocello
 President
 
	 
	 Attest:
 	 	 /s/    MARY
BOWLES-COOK        
 

	  	 	 Mary Bowles-Cook
 Secretary
 

 
 

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	 (Manager)
 	 	  	 	 (Company)Prepared by R.R. Donnelley Financial -- Plan of Reorganization

 EXHIBIT 10.10 
  
 PLAN OF REORGANIZATION 
 PURSUANT TO IRC § 351 
  
 THIS AGREEMENT and Plan of Reorganization Pursuant to IRC § 351 (the “Plan”), is made this 14th day of August, 2002, by and between Indy of Colorado, Ltd., a
Colorado limited partnership with its principal offices located at 1601 West Evans, Denver, Colorado (hereinafter the “Partnership”) and VCG Holding Corp., a Colorado corporation, with its principal office located at 1601 West Evans,
Denver, Colorado (hereinafter “VCG”). 
  
 RECITALS 
  

WHEREAS, the Partnership filed its Certificate of Limited Partnership with the State of Colorado on February 19, 1988, and remains a limited partnership in good
standing under the laws of the State of Colorado. 
  
 WHEREAS, VCG filed its Articles of Incorporation with the State
of Colorado on January 8, 1998 and remains in good standing therein. 
  
 WHEREAS, the Partnership wishes to transfer
its assets except for its stock ownership in Mer II, Inc., an Indiana corporation, to VCG in exchange for stock in VCG pursuant to a plan that will qualify as a tax free reorganization pursuant to Section 351 of the Internal Revenue Code of 1986, as
amended. 
  
 WHEREAS, VCG wishes to transfer 1,590,000 shares of voting stock to the Partnership in exchange for the
transfer of the assets of the Partnership except for its stock ownership in Mer II, Inc., an Indiana corporation, as described below, that will qualify as a tax free reorganization pursuant to Section 351 of the Internal Revenue Code of 1986, as
amended. 
  
 WHEREAS, VCG is authorized to issue preferred stock, but, as of the date of this Plan of Reorganization,
has not issued any of its authorized preferred stock and has no present plans to issue any of its preferred stock in the foreseeable future. 
  
 WHEREAS, the parties acknowledge that VCG has authorized and implemented a private placement of its voting common stock prior to this transaction and that certain parties, including some but not all of
the limited partners of the Partnership have participated in this private placement of the voting common stock of VCG. 
  
 WHEREAS, VCG has had prepared a draft Registration Statement on Form SB-2, which has been made available to the parties to this Plan of Reorganization and all partners of the Partnership. VCG expects to file the SB-2 Registration
Statement with the Securities and Exchange Commission in the near future, but the filing has not yet occurred. 
  
 NOW, THEREFORE, in exchange for mutually agreeable and sufficient consideration between the Partnership, Lowrie, Enterprise and VCG, the sufficiency of which is acknowledged by all parties to this Plan, the parties agree as follows:

 

 1 

  
 SECTION I 
  
 TRANSFER OF PARTNERSHIP PROPERTY 
  
 On
the terms and subject to the conditions stated in this Plan, the Partnership shall transfer and convey to VCG all of its assets, properties, and rights in property (except for its stock ownership of Mer II, Inc., an Indiana corporation which will be
dissolved upon the closing of this transaction) including the goodwill of the business as a going concern, its business name and all variations thereof, and all other assets of the business owned and operated by the Partnership, subject to such
changes as have occurred and shall occur in the ordinary course of its business prior to the closing. 
  
 The
Partnership stipulates and confirms that its limited partners and their respective percentage of ownership are as follows: 
  
 
	  	  	  	  
	 Ralph Riggs
 	  	 5
 	 %
 
	 Merrill Roberts
 	  	 10
 	 %
 
	 D. Bustanante
 	  	 4
 	 %
 
	 Titello Family Trust dated April 3, 2000
 	  	 2
 	 %
 
	 Amos Decon, Jr.
 	  	 4
 	 %
 
	 Lowrie Enterprises, Inc.
 	  	 17
 	 %
 
	 Lowrie Management LLLP
 	  	 15
 	 %
 
	 Margaret Spencer
 	  	 2
 	 %
 
	 Robert Spencer
 	  	 2
 	 %
 
	 I. S Investments
 	  	 10
 	 %
 
	 J.A. Van Baal
 	  	 10
 	 %
 
	 Sharon Mattos
 	  	 8
 	 %
 
	 Feole Inv. Inc.
 	  	 6
 	 %
 
	 L. Goldberg
 	  	 2
 	 %
 
	 David Jones
 	  	 2
 	 %
 

 
  
 SECTION II 
  

ISSUANCE OF STOCK 
  
 In exchange
for the transfer of the assets of the Partnership, as specified in Section I above, VCG shall issue and deliver to the Partnership 1,590,000 fully paid and non-assessable shares of its voting common stock (the “Partnership Shares”). VCG
represents and warrants that, pursuant to the Articles of Incorporation of this entity, VCG has total authorized capital of fifty million (50,000,000) shares of voting common stock which shares have a par value of $.0001 per share. 

 
 The aforesaid transfer to the Partnership Shares to the Partnership shall result in the Partnership’s ownership of (80%)
of the issued voting common stock of VCG. 
 

 2 

  
 SECTION III 
  
 PREFERRED STOCK 
  
 VCG represents and
warrants that at this time none of the 1,000,000 shares of preferred stock that it is authorized to issue has either been issued or subscribed to, and, that there are not outstanding any warrants, options, convertible debt instruments, or any other
legal or equitable rights to acquire any of VCG’s preferred stock. 
  
 SECTION IV 
  
 BUSINESS PURPOSE 
  
 The purpose of this reorganization as between the Partnership and VCG is to facilitate future business acquisitions and to enhance liquidity of the owners’ investments. 
  
 SECTION V 
  
 LIABILITIES 

 
 The Partnership and VCG hereby represent and warrant to one another that neither of them has any debt which is in default and
that no collection activities have been initiated against either of them. VCG is not assuming and shall not be liable for: 
  
 (a)  Any income tax or other tax arising out of this reorganization pursuant to IRC Section 351 or the winding up or dissolution of Partnership; 
  
 (b)  Liabilities incurred by the Partnership as a result of transactions that it may enter into in violation of the terms of this Agreement; and

  
 (c)  All other obligations and liabilities incurred by or arising in the Partnership
after the Closing. 
  
 SECTION VI 
  
 APPROVAL 
  
 The Partnership and VCG shall obtain approval of
their respective shareholders, members and partners for the purpose of authorizing this transaction and all other matters necessary or incident to the consummation of this Plan. 
  
 SECTION VII 
  
 REPRESENTATIONS AND WARRANTIES
OF THE PARTNERSHIP 
  
 The Partnership represents and warrants that: 
  
 (a)  Partnership Status.    The Partnership is a limited partnership duly organized,
validly existing, and in good standing under the laws of Colorado. 
 

 3 

  
 (b)  Partnership
Authority.    The Partnership has the power and authority to carry on its business as it is now being conducted and to own and operate its assets and businesses. 
  
 (c)  Distribution of Assets.    Since the date of this Agreement, there has been no change in the financial condition
of Partnership except changes that have taken place in the ordinary course of business; and, there has been no damage, destruction, or a loss materially or adversely affecting the assets, or business, of the Partnership. 
  
 (d)  Title to Property.    The Partnership has good and marketable title to all of
its properties and assets, free and clear of all restriction, assignments, encumbrances and liens. Full disclosure has been made to VCG of all assets owned by the Partnership. 
  
 (e)  Leases and Contracts.    The Partnership has delivered to VCG true and complete schedules of all contracts,
leases, licenses, or commitments to which the Partnership is a party. All such agreements, if any, are valid, binding, and in full force and effect, and there is no existing default thereunder. The Partnership has obtained the written consent of all
third parties to such contracts, leases, or commitments as necessary for the assignment of such rights to VCG. 
  
 (f)  Proceedings and Claims.    There are no judgments, liens, actions or proceedings pending against the Partnership that might result in any material adverse change in the business or properties
of the Partnership, and there are no citations of violations pending against the Partnership’s business. 
  
 (g)  Taxes.    On or before the date of this Agreement, Partnership has filed all tax returns required to be filed by it, and has paid all taxes due and payable by Partnership. 

 
 (h)  Outstanding Claims.    There are no outstanding options, warrants,
convertible debt instruments or any other legal or equitable right to acquire any common stock of VCG. 
  
 (i)  Investment Representation.    Subject to the covenants of VCG set forth in Section XII, (b), below, the Partnership and each of its Partners understand that the Partnership Shares are not
currently registered under the Securities Act of 1933 or under the securities laws of any state and that unless and until the Shares are so registered, the Partnership, each of its Partners further represent and warrant that they are acquiring the
Partnership Shares for investment purposes only, for their own account, and not with a present intent or view to distribution or re-sale of the same. 
  
 SECTION VIII 
  
 VCG’S REPRESENTATIONS AND WARRANTIES

  
 VCG represents and warrants that: 
 

 4 

  
 (a)  Corporate
Status.    VCG is a corporation duly organized, validly existing, and in good standing under the laws of Colorado, with authorized capital stock consisting of 50,000,000 shares of common stock having a par value of $.0001, of
which 3,850,000 shares have been duly issued and are outstanding, fully paid, and non-assessable. VCG has not issued any of its preferred stock, nor has there been any subscription to the preferred stock. 
  
 (b)  Corporate Authority.    VCG has the corporate right and authority to acquire and
operate all property and business now owned and operated by the Partnership. 
  
 (c)  Status of Shares.    The Partnership Shares to be delivered pursuant to this Plan, when issued and delivered, will be duly and validly issued and will be fully paid and non-assessable.

  
 (d)  Disposition of Assets.    Since the date of this
Agreement, there has been no material adverse change in the assets or liabilities, or in the condition, financial or otherwise, of VCG except changes occurring in the ordinary course of business. 
  

SECTION IX 
  
 CONDUCT OF
PARTNERSHIP’S BUSINESS PENDING CLOSING 
  
 Until the time of Closing, Partnership covenants that:

  
 (a)  It will carry out only such activities as are in the ordinary course of business.

  
 (b)  It will use its best efforts to preserve for VCG the good will of suppliers,
customers, and others having business relations with Partnership. 
  
 (c)  It will keep and
maintain its property and equipment in good operating condition, repair, and working order. 
  
 (d)  It will use its best efforts to perform all of its obligations under the Plan relating to or affecting its property. 
  
 (e)  It will permit VCG and its representatives to examine, during normal business hours, all books and records of the Partnership and will allow
VCG to make copies of books and records as are reasonably requested by VCG. 
  
 (f)  It
will make no new contracts or commitments except contracts in the ordinary course of business, it will not enter into or assume any mortgage, pledge, lien, encumbrance, or charge of any kind upon any of its properties or assets to be sold to buyer
and it will not borrow any money or incur any liability other than in the ordinary and usual course of business. 
 

 5 

  
 SECTION X 
  
 CONDUCT OF VCG’S BUSINESS PENDING CLOSING 
  
 VCG covenants that pending the Closing: 
  
 (a)  It will carry out only
such activities, including disposition of any property, as are in the regular and ordinary course of business. 
  
 (b)  It will not declare or pay any dividends, make any other distributions to its shareholders or issue or purchase any stock. 
  
 (c)  It will submit this Plan to its shareholders for their approval and shall use its best efforts to obtain such approval. 

 
 SECTION XI 
  
 ADMINISTRATIVE RULING 
  
  The parties to this Agreement shall have the option, at any
time prior to closing to obtain a written ruling or rulings from the IRS to the effect that the Plan provided for herein will be a reorganization as that term is defined in §351 of the Internal Revenue Code, and that the transfer of the assets
and business of the Partnership and the distribution of the shares of common stock of VCG in connection with the liquidation and dissolution of the Partnership, all as contemplated in this Plan, will not result in the recognition of any taxable
income or deductible loss by the Partnership or its partners or to VCG. 
  
 SECTION XII 
  
 ISSUANCE OF VCG STOCK 
  
 (a)  At the Closing the certificate or certificates representing the Partnership Shares shall be delivered to the Partnership with the following legend imprinted on the reverse side: 
  
 THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS THEY HAVE BEEN REGISTERED UNDER THAT ACT OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 
  
 (b)  After the execution and Closing of this Plan, VCG shall promptly take any and all necessary action for the registration of the Partnership Shares under the Securities Act of 1933 and
applicable state securities regulations. 
 

 6 

  
 SECTION XIII 
  
 DISSOLUTION OF PARTNERSHIP 
  
 Promptly
after the Closing, Partnership shall proceed to dissolve, wind up its affairs, pay all known creditors’ claims and distribute its assets among its partners. The assets distributed to the partners shall include the Partnership Shares received
pursuant to this Plan. The Partnership Shares shall be distributed among the general partner and limited partners as follows: 
  
 
	  	  	  
	 Ralph Riggs
 	  	 79,500 shares
 
	 Merrill Roberts
 	  	 159,000 shares
 
	 D. Bustanante
 	  	 63,600 shares
 
	 Titello Family Trust dated April 3, 2000
 	  	 31,800 shares
 
	 Amos Decon, Jr.
 	  	 63,600 shares
 
	 Margaret Spencer
 	  	 31,800 shares
 
	 Robert Spencer
 	  	 31,800 shares
 
	 I.S. Investments
 	  	 159,000 shares
 
	 J. A. Van Baal
 	  	 159,000 shares
 
	 Sharon Mattos
 	  	 127,200 shares
 
	 Feole Inv. Inc.
 	  	 95,400 shares
 
	 L. Goldberg
 	  	 31,800 shares
 
	 David Jones
 	  	 31,800 shares
 
	 Lowrie Management LLLP
 	  	 238,500 shares
 
	 Lowrie Enterprises, Inc. (limited partner)
 	  	 270,300 shares
 
	 Lowrie Enterprises, Inc. (general partner)
 	  	 15,900 shares
 
	  	  	 

	 Total:
 	  	 1,590,000 shares
 

 
  
 If the Partnership Shares shall not have been registered with the
Securities and Exchange Commission at the time of distribution to the partners, such shares shall continue to bear the legend and to be subject to restrictions set forth in Section XII, (a). 
  
 Within 60 days after the closing, Partnership will prepare and file all income tax returns and reports required under applicable state and federal law covering all periods
prior to the closing for which tax returns and reports have not previously been filed and are required by law. 
  
 SECTION
XIV 
  
 CLOSING 
  
 The Closing of this transaction shall take place on August 14, 2002, at 950 South Cherry Street, Suite 1000, Denver, Colorado. 
  
 SECTION XV 
  
 EXPENSES 

 
 Each party shall pay its own expenses, taxes and other costs incident to, or resulting from this Plan whether or not the
transaction is contemplated hereby or consummated. 
 

 7 

  
 SECTION XVI 
  
 NOTICE 
  
 Any notice to be given
hereunder shall be given in writing and delivered personally or by registered or certified mail, postage prepaid, as follows: 
  
 
	 (a)  If to VCG:
 	  	 1601 West Evans
 Denver, Colorado 80203
 
	 
	 (b)  If to Partnership:
 	  	 1601 West Evans
 Denver, Colorado 80203.
 

 
  
 SECTION XVII 
  

ENTIRE AGREEMENT 
  
 This instrument
and the exhibits attached hereto and documents referred to herein contain the entire agreement between the parties with respect to the transaction contemplated hereby and may be executed in one or more counterparts, each of which will be deemed an
original, but all of which together shall constitute one and the same instrument. 
  
 SECTION XVIII 

 
 CONTROLLING LAW 
  
 The validity, interpretation and performance of this Plan shall be controlled by and construed under the laws of the State of Colorado. 
  
 SECTION XIX 
  
 EFFECTIVE AGREEMENT 
  
 This Plan shall be binding upon and shall inure to the benefit of the parties and their legal representatives, successor and assigns.

  
 The parties have caused this Plan to be executed by their respective officers as of the date first above written.

  
 
	 INDY OF COLORADO, LTD., 
 A Colorado Limited Partnership
 By: Lowrie
Enterprises, Inc., General Partner
 	 	  	 	 VCG HOLDING CORP.,
 a Colorado corporation
 
	 
	 By:
 	 	 /s/    TROY H.
LOWRIE        
 
	 	  	 	 By:
 	 	     /s/    TROY H.
LOWRIE        
 

	  	 	 President
 	 	  	 	  	 	 Chairman
 

 
  
  
  
 

 8 

 ASSIGNMENT, BILL OF SALE AND ASSUMPTION AGREEMENT 
  
 KNOW ALL MEN BY THESE PRESENTS, that Indy of Colorado, Ltd., a Colorado partnership, having its principal office at 1601 Evans, Denver, Colorado (herein, the
“Transferor”) in consideration for 1,590,000 shares of Common Stock, par value at $.0001 per share of VCG Holding Corporation, a Colorado corporation having its principal office at 1601 West Evans, Denver, Colorado (herein, the
“Transferee”), hereby, and, by deed of even date herewith made by Transferor to Transferee, exchanges, transfers, assigns and conveys unto Transferee, its successors and assigns all the right, title, interest of Transferor in all of its
assets, rights and properties, personal, tangible and intangible, as the same will exist and would effect as of the close of business on the 30th day of June, 2002: 
  
 a. All fixed assets, furniture, fixtures, machinery, equipment and miscellaneous assets, owned by transferor wherever situated; and 
  
 b. liquor licenses owned by Transferor. 
  
 TO HAVE AND TO HOLD the same unto Transferee, its successor or assigns, forever, and Transferor does hereby covenant and agree that it will from time to time, if requested
by Transferee, its successors and assigns, do, execute, acknowledge, and deliver or will cause to be done, executed and delivered to Transferee or its successors and assigns, such and all further acts, transfers, assignments, deeds, powers and
assurances of title, and additional papers and instruments, and/or cause to be done all acts or things as often as they may be proper or necessary for better assuring, conveying, transferring and assigning all of the property hereby conveyed,
transferred or assigned, and effectively to carry out the intent hereof and to invest in the entire right, title and interest of Transferor in and to all of the said property, and Transferor will warrant and defend the same to Transferee, it
successors and assigns, forever against all claims or demands whatsoever. 
  
 IN WITNESS WHEREOF, Transferor and
Transferee have caused this instrument to be executed by their duly authorized representatives this 21st day of June, 2002. 
  
 
	 TRANSFERROR:
 	 	  	 	 TRANSFEREE:
 
	 
	 INDY OF COLORADO, LTD.
 A Colorado limited partnership
 	 	  	 	 VCG HOLDING CORPORATION
 a Colorado corporation
 
	 
	 By:
 	 	 /S/    TROY LOWRIE
 
	 	  	 	 By:
 	 	 /S/    MICHEAL L. OCELLO
 

	  	 	 Troy Lowrie, General Partner
 Lowrie Enterprises, Inc.
 	 	  	 	  	 	 President
 

 
  
 Assignment, Bill of Sale 
 Assumption 
 

 9

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