Document:

Agreement for the Purchase and Sale of Assets

 Exhibit 10.1 
  
 AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS 
  
 By And Between 
  
 CCCG, INC., 
 a Colorado
Corporation, Seller 
  
 and 
  
 GLENARM RESTAURANT CONCEPTS,
LLC 
 a Colorado Limited Liability Company, Buyer 
  

Dated August 18, 2004 

 TABLE OF CONTENTS 
  
 Agreement For The Purchase And Sale Of Assets 
 By And Between 
  
 CCCG,
INC., 
 a Colorado Corporation 
 Seller 
  
 and 
  
 GLENARM RESTAURANT CONCEPTS,
LLC 
 a Colorado Limited Liability Company 
 Buyer 
  
 Dated August 18, 2004

  

					
	 PARAGRAPH

	 	 TITLE

	 	PAGE NUMBER

	 1.
	 	ASSETS BEING ACQUIRED.	 	2
			
	 2.
	 	PURCHASE PRICE AND PAYMENT THEREOF.	 	4
			
	 3.
	 	ALLOCATION OF PURCHASE PRICE.	 	5
			
	 4.
	 	ADDITIONAL PAYMENTS.	 	5
			
	 5.
	 	CONDITIONS PRECEDENT.	 	7
			
	 6.
	 	REPRESENTATIONS AND WARRANTIES OF SELLER.	 	11
			
	 7.
	 	POSSESSION.	 	15
			
	 8.
	 	TIME AND PLACE OF CLOSING.	 	15

  

 ii 

					
	 9.
	 	PERFORMANCE OF CONTRACT AND REMEDIES.	  	16
			
	 10.
	 	ENVIRONMENTAL LAWS AND REGULATED SUBSTANCES.	  	18
			
	 11.
	 	DESTRUCTION OR DAMAGE PRIOR TO CLOSING AND RISK OF LOSS.	  	21
			
	 12.
	 	ITEMS TO BE DELIVERED AT CLOSING BY SELLER.	  	22
			
	 13.
	 	OPERATION OF BUSINESS BY SELLER.	  	23
			
	 14.
	 	ADDITIONAL DOCUMENTS AFTER CLOSING.	  	25
			
	 15.
	 	PAYMENT OF EXPENSES.	  	25
			
	 16.
	 	LIABILITIES NOT ASSUMED.	  	26
			
	 17.
	 	MISCELLANEOUS.	  	27
			
	 18.
	 	SURVIVAL OF REPRESENTATIONS, WARRANTIES, AND COVENANTS.	  	28
			
	 19.
	 	BINDING EFFECT AND CONDITION SUBSEQUENT.	  	29
			
	 20.
	 	ENTIRE AGREEMENT.	  	29
			
	 21.
	 	TITLES.	  	29
			
	 22.
	 	ASSIGNMENT.	  	29
			
	 23.
	 	CONFIDENTIALITY.	  	30

  

 iii 

 AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS 
  
 THIS AGREEMENT, made and entered into this 18th day of August, 2004,
(“Effective Date”) by and between the Seller, CCCG, Inc., a Colorado Corporation, and Glenarm Restaurant Concepts, LLC, a Colorado Limited Liability Company, Buyer. 
  
 WHEREAS, Seller wishes to sell most but not all of its assets as defined in
Section 1 below located at 1222 Glenarm Place, City and County of Denver, Colorado; and 
  
 WHEREAS, Buyer wishes to purchase said assets; and 
  
 WHEREAS, the parties hereto acknowledge that the transfer of the liquor and adult cabaret licenses as aforesaid are subject to the prior approval of the Liquor Licensing Authorities for the City and County of Denver
and State of Colorado; and 
  
 WHEREAS, this Agreement includes
Exhibits A, A-1, and B (“Agreement”); 
  

 1 

 NOW THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter set forth,
and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it has been and is hereby agreed as follows: 
  
 1. ASSETS AND RIGHTS BEING ACQUIRED. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell to Buyer and the Buyer agrees to
purchase: 
  
 A. Those operating assets of the Seller (not including cash on hand
and the real property located at 437-449 West Colfax Avenue, Denver, Colorado) currently owned by Seller and utilized by it in the conduct of a restaurant and adult cabaret business at the above-referenced location. “Exhibit A” to be
attached hereto, signed and dated by the parties and incorporated herein constitutes the complete, final, conclusive, and entire listing of said assets. Leased items shall be separately scheduled (“Exhibit A-1”) and the leases shall be
assigned to and shall be paid by the Buyer as permitted. Seller shall provide copies of any leases for Buyer’s review and approval within seven (7) days of the execution of this Agreement. All existing deposits assigned to Buyer shall be
reimbursed to Seller, dollar for dollar, at closing. At closing, the food and beverage inventory (exclusive of wine and champagne), based upon the direct wholesale cost, shall be no less than $120,000. Any differences at closing in the direct
wholesale cost of food and beverage inventory (exclusive of wine and champagne) from $120,000 shall be adjusted dollar for dollar. 
  
 B. Seller hereby consents to the transfer of its liquor and adult cabaret licenses to Buyer subject in all respects to the prior approvals of the licensing authorities in
and for the City and County of Denver and State of Colorado. 
  

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 C. The Buyer acknowledges that all of the assets to be transferred by the operation of this Agreement are used. The
parties agree that all of the assets will be in good working condition. 
  
 D. Any
and all other rights capable of transfer relating to said business, including the trade names, trade styles and good will; and 
  
 E. Seller agrees to sell to the Buyer and the Buyer agrees to purchase a “Covenant Not to Compete” which shall prohibit shareholders of Seller owning at least
10% of the outstanding capital stock of Seller, and Seller, from engaging in an adult cabaret business within a radius of fifteen (15) miles from the location above-referenced for a three (3) year period from the date of Closing. The form of said
“Covenant Not to Compete” shall be that reasonably acceptable to the attorneys for the Buyer and Seller. Seller shall provide upon execution of this Agreement, a letter acknowledging the list of shareholders and their respective percentage
of ownership. 
  

 3 

 2. PURCHASE PRICE AND PAYMENT THEREOF. The Purchase Price to be paid by the Buyer to the Seller for all of
the assets and rights above-referenced, shall be a total of Six Million Dollars ($6,000,000), plus the direct wholesale cost to Seller of the wine and champagne inventory (not to exceed $187,000.00) owned by Seller (as determined by an inventory
taken as of 6:00 A.M. on the Closing as defined below), (“Inventory Cost”). The Buyer will receive at Closing the liquor inventory (exclusive of wine and champagne) and all food inventory on hand at the date of Closing at no additional
cost, the collective direct wholesale cost to Seller of which will not be less than One Hundred Twenty Thousand Dollars ($120,000.00). The Purchase Price and Inventory Cost shall be payable by the Buyer as follows: 
  
 A. Earnest money in the amount of Five Hundred Thousand Dollars ($500,000) to be held by the
attorneys for the Seller, in their trust account, to be delivered in the form of a cashier’s check or certified funds at the time of Closing. These funds shall be held and distributed pursuant to the terms of this Agreement. 
  
 B. At closing, Cash or certified funds in the amount of Five Million Five Hundred Thousand,
Dollars ($5,500,000), plus the Inventory Cost not to exceed ($187,000.00) payable at Closing, minus any deviation in the liquor and food inventory below One Hundred Twenty Thousand Dollars ($120,000.00) of the collective direct wholesale cost to
Seller. 
  

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 3. ALLOCATION OF PURCHASE PRICE. 
  
 The purchase price provided for in paragraph No. 2. hereof, shall be
allocated to the assets acquired herein as follows: 
  

					
	A.	  	All Furniture Fixtures and Equipment	  	$ Seller’s book value                 
			
	B.	  	Leasehold	  	None                 
			
	C.	  	Goodwill	  	$                                
			
	D.	  	Inventory	  	$ Seller’s Direct Wholesale Cost
			
	E.	  	Covenant Not to Compete	  	$10,000.00
			
	 	  	 TOTAL
	  	$                                

  
 4.
ADDITIONAL PAYMENTS. 
  
 In addition to the
Purchase Price as aforesaid, the parties agree to make the additional payments as follows in order to accomplish the Closing of this transaction: 
  
 A. All applicable taxes shall be prorated through the Closing date and paid as due before or at Closing by the responsible party. 
  
 B. Seller is responsible for paying any and all taxes of the business accruing through
Closing, but not thereafter, including but not limited to, 
  

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 state and local sales and use taxes, unemployment taxes, workmen’s compensation, state and federal withholding
taxes, and income taxes. At the time of Closing, Seller will produce evidence, satisfactory to Buyer, that its portion of all applicable taxes which are due have been or will be paid. In addition, Seller will execute an agreement to defend, at
Seller’s option, and/or hold Buyer harmless from any taxes which may be due and owing arising from any time that Seller operated the business, through and including Closing, but not thereafter. 
  
 C. As an inducement to Buyer to enter into this Agreement, Seller covenants to cooperate in
good faith and without qualification, in order to assure Buyer that any and all charges, including taxes, which are or could become a lien or other charge upon the property which is the subject of this Agreement, have been or will be paid. In this
regard, Seller agrees to execute and deliver any and all documents authorizing Buyer or Buyer’s attorney to confirm the status of any and all accounts of Seller, including sales tax and use tax accounts, relating to any governmental authority
whatsoever. 
  
 D. Buyer will pay when due any and all taxes which may become
payable as a result of this transaction, including all sales and use taxes, without contribution from Seller. 
  

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 E. Buyer shall be responsible for any and all charges of any nature relating to the operation of the premises which
accrue after the Closing and are based upon Buyer’s operation of the business 
  
 5. CONDITIONS PRECEDENT. 
  
 The consummation of the transaction set forth in this Agreement is expressly conditioned upon the satisfaction of the following conditions precedent:

  
 A. There are no obligations of the Seller pertaining to the operation of the
premises which would be a direct or indirect obligation of the Buyer, other than as disclosed in this Agreement. 
  
 B. Within ninety (90) days from the Effective Date, the approval by the State and Local Licensing Authorities of the transfer of the hotel and restaurant class liquor and
adult cabaret licenses to the Buyer. Approval by the State and Local Authorities of any managers, members, or officers, directors and shareholders of the Buyer, if such approval is required. Buyer or its assignee shall make application for the
transfer of said licenses, and diligently seek such approvals upon the execution hereof and Seller shall cooperate with Buyer or its assignee in such endeavor. In the event that the approval of either the Denver Department of Excise & License or
the State Liquor Licensing Authority is not given within ninety (90) days of the Effective Date, this Agreement shall be automatically null and void, all parties shall be released from any liability under 
  

 7 

 this Agreement and Four Hundred Thousand Dollars ($400,000.00) of Buyer’s Earnest Money Deposit shall be returned to
Buyer with the remaining One Hundred Thousand Dollars ($100,000.00) being retained by Seller as liquidated damages. Buyer or its assignee shall file its completed application for change of ownership of the subject liquor and adult cabaret licenses
as soon as possible after the date of the full execution of this Agreement, and shall diligently pursue the approval of said applications for transfer of ownership from all appropriate authorities. 
  
 C. The representations and warranties of the Seller contained in this Agreement and the
certificates and documents to be delivered pursuant hereto, shall be true, complete, and correct when made, and as of the Closing Date, and will not contain any untrue statement of a material fact required to make the statements herein or therein
not misleading. Seller shall have performed and satisfied all the covenants, agreements, and conditions required by this Agreement to be performed and satisfied by it hereunder. 
  
 D. The approval and execution by the Buyer, in its reasonable discretion, of a new lease to the Buyer for the Premises within fifteen (15)
days from the Effective Date of this Agreement, the financial terms of which will be substantially in accordance with Exhibit “B” attached hereto and made a part hereof, except for the outstanding issue of one additional five-year renewal

  

 8 

 option term requested by Buyer. In the event that Buyer has not approved and executed the Lease for the Premises within
the time period set forth above, then this Agreement shall be automatically null and void and Buyer’s Earnest Money Deposit shall be returned. 
  
 E. The complete approval of the Buyer, in its sole and unfettered discretion, relating to the accounting materials of the Seller, including, without limitation, the
balance sheets, income tax returns and sales tax returns of the Seller for calendar years 2001, 2002, 2003 and 2004 (to the extent available) (“Accounting Materials”), which Seller shall provide or make available to Buyer at Seller’s
business office within five (5) days of the Effective Date of this Agreement. Buyer shall have thirty (30) days after the Effective Date to indicate in writing (“Accounting Disapproval Notice”) disapproval of the Accounting Materials of
the Seller, or this condition precedent will be deemed to have been satisfied. In the event that Buyer does disapprove in writing of the Accounting Materials within said thirty (30) day period, then this Agreement shall be null and void and the
Buyer’s Earnest Money Deposit shall be returned. In the event Buyer does not timely provide the Accounting Disapproval Notice as provided for above, then Buyer shall have waived its right to terminate this Agreement under this paragraph.

  

 9 

 F. After the Buyer has accepted the initial Accounting Materials of Seller or has waived its right to terminate this
Agreement as set forth in Paragraph E above, the Seller will make available any and all other accounting records requested in writing by the Buyer whether in the possession of the company at its premises or within the possession of its accountant
during hours as reasonably agreed to between Buyer and Seller, for review and utilization by the Buyer. Seller acknowledges the Buyer has certain reporting requirements that will need to be fulfilled within a short period of time of the closing and
it is the intention of the parties that the Buyer be provided reasonable access to any and all records in order to prepare the necessary reports. 
  
 G. Receipt of such verification as Buyer shall reasonably require relating to Seller’s current standing with any and all vendors to the Seller relating to this
location. Buyer shall have thirty (30) days from the receipt of a list of vendors from Seller to indicate in writing disapproval of any and all vendor related matters of the Seller, or this condition will be deemed to have been satisfied. In the
event Buyer does indicate in writing (“Vendor Disapproval Notice”) of the disapproval of any and all vendor related matters of the Seller, then this Agreement shall be null and void, all parties shall be released from any liability and
Buyer’s Earnest Money Deposit shall be returned. In the event Buyer does not timely provide the Vendor Disapproval Notice as provided for above, then Buyer shall have waived its right to terminate this Agreement under this paragraph.

  

 10 

 H. Buyer will have the right to review a current Phase I Environmental Report for the Premises [that will be provided to
Buyer within ten (10) days of the Effective Date], inspect the physical systems serving the Premises (i.e., electrical, plumbing, heating, ventilation, and air conditioning systems) and to determine that the Premises are currently in compliance with
any and all requirements of applicable governmental authorities, including, but not limited to health department approval, fire department approval and building department (“Due Diligence Items”). In the event that Buyer does not accept
the results of its inspection of the Due Diligence Items and gives Seller written notice thereof (“Due Diligence Disapproval Notice”) within thirty (30) days of the Effective Date, then this Agreement shall be null and void, all parties
shall be released from any liability under this Agreement and Buyer’s Earnest Money Deposit shall be returned. In the event Buyer does not timely provide the Due Diligence Disapproval Notice as provided for above, then Buyer shall have waived
its right to terminate this Agreement under this paragraph. 
  
 6. REPRESENTATIONS AND WARRANTIES OF SELLER. 
  
 As an inducement to the Buyer to enter into this Agreement, Seller represents and warrants to Buyer as follows: 
  
 A. The Seller has the power to own its properties and assets, and to carry on its business as now being conducted by it. The Seller has the power to assign and transfer
to Buyer all of the assets specified in this Agreement which are to be transferred to the Buyer. 
  

 11 

 B. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated hereby
will not violate any provision of the documents controlling the operation of the Seller, nor violate any provision of the Articles of Incorporation, By-Laws, Operating Agreement, mortgage, lease, lien, agreement, instrument, order, judgment or
decree to which the Seller is a party, or whereby it is bound, and will not violate any other restriction of any other kind or character to which the Seller is subject. The Seller has taken or will take action required by law, its Articles of
Incorporation and By- Laws, or otherwise, to authorize execution and delivery of this Agreement and the consummation of the transactions described herein. 
  
 C. There are no rights to acquire shares or membership interests of Seller outstanding, which rights require the holders thereof to approve the execution of this
Agreement or the consummation of the transactions covered hereby. 
  
 D. Seller
has or will have by date of Closing, good and marketable title and own all of the assets to be sold hereunder, free and clear of all liens, encumbrances, and leases whatsoever, except for leased equipment as set forth on Exhibit A-1. 
  

 12 

 E. The Seller has filed and paid or caused to be filed and paid, all returns for federal, state and local taxes which are
due. To the best of Seller’s knowledge, there are no assessments or additional taxes threatened against the Seller or any of its properties. The Seller is hereby disclosing to Buyer that the Internal Revenue Service performed a Federal Income
Tax Audit with regard to the Seller’s 1999 and 2000 Federal Tax Returns, Attached hereto as Exhibit “C” and made a part hereof is the Examination Changes as a result of said audit. Seller was also subject to and Internal Revenue
Service Audit with regard to withholding taxes on tips earned by Seller’s employees during the calendar years of 2000 and 2001, which audit was settled and the agreed upon tax was paid by Seller. Seller may be subject to one or more further
audit(s) for subsequent years by the Internal Revenue Service, at its option. The Seller is not delinquent in the payment of any tax assessment or governmental charge, does not have any tax deficiencies imposed or assessed against it and has not
executed any waiver of the statute of limitations on the assessment or collection of any tax, which actions in any manner would affect in any fashion title to any of the property to be transferred. 
  

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 F. Except for personal injury actions, which are being defended and covered by Seller’s insurance carrier, there are
no actions, suits, or proceedings pending, or to the knowledge of its officers, threatened against the Seller, or any of its properties or any assets of its business, in law or in equity, which might result in any judgment, order, injunction or
decree having a material or adverse affect upon its business operations, properties, assets or financial condition, at this location. 
  
 G. The only Officers and Directors of Seller at the time of this transaction are: 
  

					
	 Gerald N. Kernis
	 	  

	  	     President

	 Marc Cooper
	 	  

	  	     Vice President

	 Gerald N. Kernis
	 	  

	  	     Director

	 Marc Cooper
	 	  

	  	     Director

  
 H. All physical systems serving the
building (“Equipment”) will be checked and will be in good working order at the time of Closing. This includes electrical, plumbing, heating, ventilation, and air conditioning systems. Two (2) days prior to Closing, representatives of
Buyer, Seller and the mechanical company that maintains the Equipment (“Maintenance Company”), will inspect 
  

 14 

 said equipment, which, in the event that any Equipment is not in working order, the non-working Equipment will either (i)
be repaired, or (ii) money will be placed in escrow in an amount estimated by the Maintenance Company to repair the non-working Equipment. 
  
 I. Seller acknowledges that Buyer is owned by companies subject to the reporting requirements of the Securities Exchange Act of 1934. Accordingly, nothing in this
Agreement shall be deemed to prohibit any party hereto from making any disclosure which its counsel deems necessary or advisable in order to fulfill such party’s disclosure obligations imposed by law. The parties agree that other than those
disclosures imposed by various governmental agencies they shall keep the terms and conditions of this agreement confidential. 
  
 7. POSSESSION. 
  
 Provided that Buyer has entered into a new lease for the Premises as provided in paragraph 5(d.) above, the Buyer will be entitled to possession of the
assets by virtue of ownership of the assets acquired by the operation of this Agreement upon Closing. 
  
 8. TIME AND PLACE OF CLOSING. 
  
 The Closing shall take place within three (3) days after notice has been received that permanent licenses have been issued to the Buyer relating to

  

 15 

 the sale of alcoholic beverages and operation of an adult cabaret at the Premises, provided the other conditions
precedent required by this Agreement have been fulfilled. The hour of Closing will be that reasonably designated by Buyer. The place of Closing will be at that reasonably designated by Buyer, in the City and County of Denver. 
  
 9. PERFORMANCE OF CONTRACT, EVENTS OF DEFAULT AND
REMEDIES. 
  
 A. Criticality of Performance. Time is of the
essence hereof. 
  
 B. Event of Default. A default occurs if any payment
required hereunder is not made as and when required under the terms of this Agreement. A default also occurs if any material condition hereof is not made or performed by either the Seller or the Buyer as herein provided, or any material
representation or warranty is untrue or breached(subject to the survival provisions set forth in paragraph 18 below) then there shall be the following remedies: 
  
 (1) IF SELLER IS IN DEFAULT (1) Buyer may elect to treat this Agreement as terminated, in which case all payments and
things of value received hereunder shall be returned to Buyer, or (2) Buyer may elect to treat this contract as being in full force and effect and Buyer shall have the right to an action for specific performance. The parties agree that these
remedies shall be the sole remedies of Buyer in any event relating to a Seller default. 
  

 16 

 (2) IF BUYER IS IN DEFAULT: Seller may elect to treat this contract as terminated, in which case
all payments and things of value received hereunder shall be forfeited and retained on behalf of Seller as Seller’s sole remedy, and liquidated damages. The parties agree this remedy shall be the sole remedy of Seller in any event relating to a
Buyer default. 
  
 C. ATTORNEYS FEES. In the event of any litigation and/or
arbitration arising out of this contract, the court or the arbitrator shall award to the prevailing party all reasonable costs and expenses, including reasonable attorneys’ fees. 
  
 D. ARBITRATION. Buyer and Seller agree that they shall submit all issues (including but not limited to whether the dispute is
arbitratable) pending between them to final and binding arbitration pursuant to the Colorado Uniform Arbitration Act, C.R.S. §13-22-201, et seq., before a sole arbitrator. The parties have agreed to utilize the services of any
member of Judicial Arbitrator Group (JAG) to administer the arbitration. If the parties cannot agree on a particular JAG arbitrator, then the Administrator of JAG shall select an arbitrator. The arbitrator shall issue his or her award within 30 days
of the completion of the arbitration hearing or, if post-hearing briefs are submitted pursuant to order of the arbitrator, 
  

 17 

 within 30 days of receipt of the briefs. The costs of the arbitration shall be divided as set out in the arbitration
award. Any advance deposit toward the arbitrator’s fee shall be split between the parties equally. If the arbitration award requires any party to pay more than one-half the fees, the parties shall adjust credit for payment of the advance
deposit to accurately reflect payment required under the award. Any cancellation fees and costs shall be borne by the party canceling the arbitration, regardless of the reason for the cancellation. The location for the arbitration hearing will be at
the Judicial Arbitrator Group located at 1601 Blake Street, Suite 400, Denver, Colorado 80202. 
  
 10. ENVIRONMENTAL LAWS AND REGULATED SUBSTANCES. 
  
 With respect to Environmental Laws and Regulated Substances (as those terms are defined in Subparagraph A. below), Seller makes the following covenants,
representations and warranties to Buyer: 
  
 A.
Definitions. For purposes of this paragraph, the following terms are used with the meanings indicated: 
  
 (i) “Environmental Law” means any federal, state or local enactment relating to protection of public health or the environment, including (by
way of illustration rather than by way of limitation) the Clean Water Act, 33 U.S.C. §1251, et seq.; the Clean Air Act, 42 U.S.C. §7401, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. §6901,
et seq.; the Comprehensive 
  

 18 

 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §9601, et seq.; the Toxic
Substances Control Act, 15 U.S.C. §2601, et seq.; and the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §135, et seq., as well as applicable state counterparts to such federal legislation and any
regulations, guidelines, directives or other interpretations of any such enactment, all as amended from time to time. 
  
 (ii) “Regulated Substance” means any substance, the ownership, manufacture, storage, transport, generation, use, treatment, recycling, disposal
or other disposition of which is prohibited or regulated (including, without limitation, being subjected to notice, reporting, record-keeping, storage or clean-up requirements) by any Environmental Law. 
  
 B. No Regulated Substances. Seller represents and warrants to Buyer
for 1 year from the date of closing that: 
  
 (i) To the best of
Seller’s knowledge (without investigation and acknowledging it has not received notice), and except for any information contained in the Phase I Environmental Report for the Premises as provided in paragraph 5(H) above, no Regulated Substance
is currently being generated, used, treated, stored or disposed of on or in the Premises except in a manner complying with Environmental Law; 
  

 19 

 (ii) To the best of Seller’s knowledge (without investigation and acknowledging it has not received
notice), and except for any information contained in the Phase I Environmental Report for the Premises as provided in paragraph 5(H) above, neither Seller nor any other person, has ever caused or permitted any Regulated Substance to be generated,
placed, held, located or disposed of on, under or in the Premises except in a manner complying with Environmental Law; 
  
 (iii) To the best of Seller’s knowledge (without investigation and acknowledging it has not received notice), and except for any information
contained in the Phase I Environmental Report for the Premises as provided in paragraph 5(H) above, neither Seller nor any other person, has ever used any portion of the Premises as a dump site, permanent or temporary storage site or transfer
station for any Regulated Substance except in a manner complying with Environmental Law; 
  
 (iv) To the best of Seller’s knowledge (without investigation and acknowledging it has not received notice), and except for any information contained in the Phase I Environmental Report for the Premises as
provided in paragraph 5(H) above, neither Seller nor any other person has received notice of, or is aware of, any actual or alleged violation of any Environmental Law affecting the Premises or any activity conducted at the Premises that would
violate any Environmental Law; 
  

 20 

 (v) To the best of Seller’s knowledge (without investigation and acknowledging it has not received
notice,), and except for any information contained in the Phase I Environmental Report for the Premises as provided in paragraph 5(H) above, no action or proceeding is pending before or appealable from any court, quasi-judicial body or
administrative agency relating to the enforcement of any Environmental Law affecting the Premises or any activity conducted at the Premises. 
  
 C. Future Information. Seller agrees that if, after the date of this Agreement, Seller (directly or through any of its present or former employees
or affiliates) receives any new or additional information or data of whatever type as to the existence or presence of any Regulated Substance on, under or in the Premises, Seller shall provide such information to Purchaser within ten (10) days after
Seller receives such information or data. 
  
 11.
DESTRUCTION OR DAMAGE PRIOR TO CLOSING AND RISK OF LOSS. 
  
 If
before Closing any of the assets being acquired hereunder or the premises out of which the Seller presently operates have suffered loss or damage on account 
  

 21 

 of fire, flood, accident, or any other cause or event, to an extent which substantially affects the value of the same,
Buyer shall either i) have the right to consummate this Agreement, in which event, Seller will pay or assign to Buyer any and all insurance proceeds which Seller is entitled to due to said loss or damage; or ii) Buyer shall have the right to
terminate this Agreement by giving Seller written notice on or before the Closing Date, in which event this Agreement shall be null and void and all parties shall be released from any liability under this Agreement and Buyer’s Earnest Money
Deposit shall be returned to Buyer in full. 
  
 12. ITEMS TO BE DELIVERED AT
CLOSING BY SELLER. 
  
 At Closing, the parties shall
deliver the following: 
  
 A. A “Bill of Sale” and any and all other
documents of transfer or conveyance covering all assets described herein, free and clear of all claims, charges, liabilities, leases, liens and encumbrances, subject to the disclosures and exceptions made hereinabove, containing a special warranty
of title, with Seller’s covenant to fully defend the same with said assets being transferred in their “AS IS” but good working condition. 
  
 B. Copies of all financing statements at the time on file, having been filed by any secured party against the Seller which would affect the title to any assets being
acquired hereunder. 
  

 22 

 C. Any and all keys, combinations or other items necessary for proper access to the premises. 
  
 D. Any and all other documents as set forth in this Agreement to be delivered by Seller.

  
 E. A “Closing Certificate” to the effect that any and all
representations and warranties made in connection with the execution of this Agreement are true as of the date of Closing, and further, that no material needs to be added to make the same not misleading as of the date of Closing. 
  
 13. OPERATION OF BUSINESS BY SELLER. 
  
 The business will be conducted by Seller up to the date of Closing according
to, and conforming with, all laws, rules, and regulations of the applicable City, County, State and Federal Governments. The business will also be operated in a manner that will not violate the terms of any lease or contract connected with the
business, and which will not result in any increase in the compensation payable to any employee of the business. 
  
 Any and all costs of operating the business up to the time of Closing are the responsibility of Seller regardless of when any statement is presented for
payment and any and all operational costs incurred after closing are the responsibility of Buyer. In the event any claim is brought against Buyer based upon any occurrence, transaction, event or incident, occurring prior to the date of 

  

 23 

 
closing, Seller agrees to indemnify, defend and hold Buyer and its officers, directors, employees, agents, attorneys, representatives and successors and
assigns harmless from and against any and all demands, claims, causes of actions, expenses, liabilities, awards, judgments, interest, and losses whatsoever including without limitation all attorney’s fees, expert witness fees and costs, whether
incurred by Buyer or awarded to another party arising from or related to any claim the basis of which occurs prior to the Closing date. 
  
 In the event any claim is brought against Seller based upon any occurrence, transaction, event or incident, occurring after the date of closing, Buyer
agrees to indemnify, defend and hold Seller and its officers, directors, employees, agents, attorneys, representatives and successors and assigns harmless from and against any and all demands, claims, causes of actions, expenses, liabilities,
awards, judgments, interest, and losses whatsoever including without limitation all attorney’s fees, expert witness fees and costs whether incurred by Seller or awarded to another party arising from or related to any event occurring after the
date of Closing. 
  

 24 

 14. ADDITIONAL DOCUMENTS AFTER CLOSING. The parties hereto agree to execute and deliver any and all other
documents necessary and convenient to effectuate the sale and purchase herein provided for, and both the Buyer and the Seller as an inducing condition, represent that they have the authority to enter into this Agreement and to make the foregoing
commitments for themselves. In addition, Seller agrees that it will from time to time at the request and expense of the Buyer, execute and deliver or cause to be executed and delivered, all such further bills of sale, assignments, instruments of
transfer and agreements that may reasonably be required by the Buyer in order to vest title or proof of the sale in the Buyer to any and all of the properties or assets hereby conveyed or intended hereby to be conveyed or for aiding the assisting in
the performance or collection by Buyer of any such assets or properties. 
  
 15.
PAYMENT OF EXPENSES. 
  
 A. The Buyer and the Seller are each
individually responsible for their own attorneys’ fees incurred in connection with the preparation of this Agreement and all of the documents needed to consummate the transactions described herein. 
  
 B. No brokers have been utilized by the parties concerning this transaction and no
compensation is due to any broker, except Phil Hicks, which has been engaged by and will be paid by Seller and Tom O’Hara, which has 

  

 25 

 
been engaged by and will be paid by Buyer. If any claims for brokerage commissions or finders fees or like payment arise out of or in connection with the
transaction provided herein, and in the event any claim is made, all such claims shall be handled and paid by the party whose actions or alleged commitments form the basis of such claim. Each party whose actions or alleged commitment form the basis
of a claim shall indemnify and hold harmless the other party from and against any and all claims or demands with respect to any brokerage fees or commissions or other compensation asserted by any person, firm, or corporation in connection with this
Agreement or the transaction contemplated hereby. 
  
 C. All other items,
including all utility charges, personal property taxes, and all other charges with respect to the assets being acquired hereby, shall be prorated to and including Closing, and paid before or at Closing by the respective parties. 
  
 16. LIABILITIES NOT ASSUMED. 
  
 Buyer agrees to assume only those liabilities listed in this Agreement. It is
expressly understood and agreed that Buyer shall not be liable for any of the obligations or liabilities of the Seller, except as otherwise set forth herein. 
  

 26 

 17. MISCELLANEOUS. 
  

The following miscellaneous provisions shall govern the interpretation and consummation of the transactions described herein: 
  
 A. This Agreement shall be interpreted and construed in court in accordance with the laws of
the State of Colorado. 
  
 B. Should any clause or provision of this Agreement be
declared invalid, void, or voidable for any reason in whole or in part, any such invalid, void, or voidable clause or provision shall not affect the whole of this Agreement, and the balance of the provisions hereof shall remain in full force and
effect to the same extent and in the same manner as if such invalid, void, or voidable clause or provisions had been omitted from the terms and conditions hereof, each of the parties hereto covenants and agrees with each other that it would have
executed this Agreement in accordance with its provisions had such invalid, void, or voidable clause or provision been omitted herefrom. 
  

 27 

 C. Any notice, demand or communication under or in connection with this Agreement which either party desires or is
required to give to the other, shall be deemed delivered when deposited in the United States mail, postage prepaid, or when personally served upon the other party as follows: 
  

			
	If to the Seller:	 	 C.C.C.G., Inc., a Colorado corporation

	 	 	 c/o Gerald Kernis,

	 	 	 6551 E. Ida Avenue,

	 	 	 Englewood CO 80111.

		
	With a copy to:	 	 Walter Slatkin, Esq.

	 	 	 WOLF & SLATKIN

	 	 	 44 Cook Street, Suite 1000

	 	 	 Denver, CO 80206

		
	If to the Buyer:	 	 Troy Lowrie

	 	 	 GLENARM RESTAURANT CONCEPTS

	 	 	 390 Union St., Suite 540

	 	 	 Lakewood, CO 80228

		
	With a copy to:	 	 Daniel W. Carr, Esq.

	 	 	 DILL DILL CARR STONBRAKER & HUTCHINGS,
P.C.

	 	 	 455 Sherman Street, Suite 300

	 	 	 Denver, CO 80203

  
 18. SURVIVAL OF REPRESENTATIONS,
WARRANTIES, AND COVENANTS. 
  
 All of the representations, warranties,
covenants and agreements made in this Agreement or contained in the certificate or documents furnished in connection herewith, shall survive the Closing date, except for the environmental representations contained in Paragraph 10 above shall survive
for only one year after the Closing date, and the working order representation contained in Paragraph 6(H) shall expire on the Closing date. 
  

 28 

 19. BINDING EFFECT AND CONDITION SUBSEQUENT. 
  
 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. 
  
 20. ENTIRE AGREEMENT. 
  
 This Agreement constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof. All previous negotiations, and documents relating hereto are deemed by the parties to be merged in this final writing. 
  
 21. TITLES. 
  
 The titles of the paragraphs of this Agreement are for convenience of reference only, and are not to be considered in any fashion in construing or
interpreting this Agreement. 
  
 22. ASSIGNMENT. 
  
 The rights and obligations of the Buyer pursuant to the terms of this
Agreement shall be freely assignable to a wholly owned subsidiary or entity of VCG Holding Corp., a Colorado corporation, without any further consent of Seller, but any other assignment by Buyer shall require the prior written consent of the Seller.
The rights and obligations of the Buyer pursuant to the terms of this Agreement shall be freely assignable, without any further consent of Seller. 
  

 29 

 23. CONFIDENTIALITY. 
  
 Buyer shall use reasonable efforts to keep all the information gained through access to the Premises and Seller’s books
and records, confidential, and shall not knowingly disclose any of that information to any independent third party, except as reasonably required in connection with the study and investigation of the assets being acquired by Buyer, required by
Buyer’s auditors and required to be disclosed to governmental authorities in connection with the application for the liquor and adult cabaret license by Buyer, 
  
 DATED at Denver, Colorado this 10th day of August, 2004. 
  

 30 

	
	SELLER:
	
	 CCCG, INC.
 A Colorado Corporation

	
	 /s/ Gerald N. Kernis

	 Gerald N. Kernis, President

	 Date: August 10, 2004

  

			
	BUYER:
	
	 GLENARM RESTAURANT CONCEPTS, LLC.
 A Colorado Limited Liability Company

		
	 By
	 	 /s/ Troy H. Lowrie

	 CEO of VCG, Manager

	 Date: August 18th, 2004

  

							
	 STATE OF COLORADO
	  	)	  	 	  	 
	 	  	)	  	ss.	  	 
	 CITY & COUNTY OF DENVER
	  	)	  	 	  	 

  
 Subscribed and sworn
to before me this 13th day of August, 2004, by Gerald N. Kernis, President of CCCG, Inc., a Colorado
Corporation, Seller. 
  
 WITNESS my hand and official seal.

  
 [SEAL] 
  

	
	
	 /s/ Illegible

	 Notary Public

  
 My Commission
Expires: 8/8/07 
  

 31 

					
	 STATE OF COLORADO
	 	 )
	 	 
	 	 	)	 	 ss.

	 CITY & COUNTY OF DENVER
	 	)	 	 

  
 Subscribed and sworn
to before me this 18th day of August, 2004, by Troy Lowrie (title), of Glenarm Restaurant Concepts,
LLC, a Colorado limited liability company, Buyer. 
  
 WITNESS my
hand and official seal. 
  
 [SEAL] 
  

	
	
	 /s/ Illegible

	 Notary Public

  
 My Commission
Expires: 1-31-08 
  

 32 

 “EXHIBIT A” 
  
 LIST OF ASSETS TO BE PURCHASED 
  
 SEE ATTACHED LIST 
  
 APPROVED AND ACCEPTED: 
  
 Seller: 
 CCCG, INC. 
 A Colorado Corporation 
  

	
	 /s/ Gerald N. Kernis

	 Gerald N. Kernis, President
 Date: August 10, 2004

  

					
	 Buyer:
	 	 
	 GLENARM RESTAURANT CONCEPTS, LLC.
	 	 
	 A Colorado Limited Liability Company
	 	 
			
	By	 	 /s/ Troy H. Lowrie
	 	 ,

	 CEO of Managing Member
	 	 
	 Date: August 18th, 2004
	 	 

  

 33 

 VCG HOLDING CORP. 
 DUE DILIGENCE INFORMATION REQUEST 
 CCCG, INC. (DIAMOND CABARET) 
  
 Phase 1- at CPA Office (as soon as possible) 
  

	 	•	Copy of financial statements (internal or external) for current and prior two years 

  

	 	•	Copy of income tax returns for the periods refereed to in the letter from the CPA regarding gross revenue. 

  

	 	•	Look at work papers for income preparation for last three years. 

  

	 	•	Review CPA’s permanent file 

  

	 	•	Inquire as to location of records, receipts, payroll and other information used in production of the books for the current and prior three years. 

  

	 	•	Depreciation file and location of back-up information for acquisitions 

  

	 	•	Copy of working trial balance and journal entries used for the production of the prior three years income tax returns. 

  

	 	•	Deliver internal control questionnaire 

  
 Phase 2 – at CCCG, Inc. at the Diamond location or office (within week of signing agreement) 
  

	 	•	Document system, review answers to internal control questionnaire. 

  

	 	•	Inspect all records inquired about above for current year, 2003, 2002 and 2001 

  

	 	•	Review Corporate records, including minutes books. 

  

	 	•	Review all leases, notes and contrasts in effect, if any. 

  

	 	•	Interview all staff responsible for accounting functions. 

  

	 	•	Review documentation for POS system and its interface with accounting records. 

  

	 	•	Review accounting records and documentation of system. 

  

	 	•	Review general ledger for last three years. 

  

	 	•	Inquire about the ability of producing monthly balance sheets and profit and loss statements for the current and past three years. 

  

	 	•	Management organizational charts, salaries, fringe benefits, head count and turnover information. 

  

	 	•	Information on the payroll system. 

  

	 	•	Underlying support for the fixed assets. 

  

	 	•	Any current unexpired vendor contracts or commitments. 

  

	 	•	Commitments on leases for equipment or repair contracts on any of the equipment or physical plant. 

  

	 	•	Information regarding inventory control, purchasing, and existence of copies of actual counts. 

  

	 	•	Accounts payable process. 

  

	 	•	Copies of any Internal Revenue Service, State of Colorado, or City and County of Denver audits, including findings. 

  

	 	•	List of any significant litigation. 

  

	 	•	List of all related party transactions. 

  

	 	•	Inquire as to budges and/or financial plan. 

  
 Phase 3 Audit (start as soon as possible after Phase 2 is complete usually two weeks)Lease Agreement

 Exhibit 10.2 
  
 LEASE 
  
 THIS LEASE (“Lease”), dated the 31 day of August, 2004, is by and between GLENARM ASSOCIATES, INC., a Colorado corporation
(“Landlord”) and GLENARM RESTAURANT LLC, a Colorado limited liability company (“Tenant”). 
  
 1. DEFINITIONS. Unless otherwise indicated, capitalized terms used in this Lease shall have the meanings set forth below: 
  
 (a) “Additional Rent” shall mean all charges payable by
Tenant under this Lease other than Minimum Rent. 
  
 (b)
“Building” shall mean the building in which the Demised Premises is located. 
  
 (c) “Operating Costs” shall mean all costs incurred to insure, maintain, repair and replace (except with respect to Paragraph 6(c)) all elements of the Premises. Operating Costs include, but are not
limited to, costs and expenses for the following: maintenance and repair and replacement (as necessary) of all structural and mechanical components of the Building including, but not limited to, exterior and interior walls, the roof, foundation and
all components of the parking lots, driveways and sidewalks surrounding the Building and located on the Premises (but not including costs incurred by Landlord in performing its obligations under Paragraphs 6(a) and 24); gardening and landscaping;
utilities, water and storm sewer charges; maintenance of signs; fire alarm monitoring service; premiums for liability, property damage, fire and other types of insurance on the Premises and worker’s compensation insurance; all Real Property
Taxes (as defined below); all personal property taxes levied on or attributable to Tenant’s personal property used in connection with the maintenance and operation of the Premises; fees for required licenses and permits; repairing, resurfacing
by or at the direction of any governmental authority in connection with the use or occupancy of the Premises or the parking facilities included in the Premises; or painting, lighting, cleaning, refuse removal, security, if any, and other related
charges. Operating Costs shall also include any parking charges, utilities surcharges, or other costs levied, assessed or imposed on the Premises pursuant to any covenants, conditions or restrictions to which the Premises are subject. 
  
 (d) “Effective Date” shall mean the later of the date set
forth in the initial paragraph of this Lease or the date on which Tenant acquires the assets comprising the business located in the Premises from C.C.C.G., Inc., a Colorado corporation . 
  
 (e) “Guarantor” shall mean VCG Holding Corp., a Colorado corporation. 
  
 (f) “Hazardous Material” shall mean any hazardous,
radioactive or toxic substance, material or waste, including, but not limited to, those substances, materials and wastes (whether or not mixed, commingled or otherwise combined with other substances, materials or wastes) listed in the United States
Department Transportation Hazardous Material Table (49 CFR 172.101) or by the Environmental Protection Agency as hazardous substances (40 CFR Part 302) and amendments thereto, or such substances, materials and wastes which are or become regulated
under any applicable local, state or federal law including, without limitation, any material, waste or substance which is (i) a petroleum product, crude oil or any fraction thereof, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) designated as
a “hazardous substance” pursuant 
  

 1 

 to Section 311 of the Clean Water Act, 33 U.S.C. Section 1251, et seq. (33 U.S.C. Section 1321) or listed pursuant to
Section 307 of the Clean Water Act (33 U.S.C Section 1317), (v) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (vi) defined
as a “hazardous substance” pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601, et seq. (42 U.S.C. Section 9601). 
  
 (g) “Demised Premises” or “Premises” shall mean
all improvements located on the property depicted on the Site Plan, attached as Exhibit A, including any parking, driveways, sidewalks, alleyways or other appurtenances thereto. Said Demised Premises shall include the roof, exterior walls and
structural members thereof, together with utility lines, ducting, pipes, and the like to serve adjoining Premises other than those specifically herein Demised. 
  

(h) “Lease Term” shall mean a period of 10 years and 0 months beginning on the Rent Commencement Date, plus any extended term granted
by Landlord and timely and properly elected by Tenant pursuant to subparagraph 3(b) below. 
  
 (i) “Lease Year” shall mean a period of twelve consecutive months during the Lease Term which begins on the first day of the first calendar month after the Rent Commencement Date or any anniversary
thereof. 
  
 (j) “Minimum Rent” shall mean the
base rental for the Demised Premises set forth in subparagraph 4 below. 
  
 (k) “Permitted Use” shall mean the operation of a restaurant and adult cabaret, together with all uses associated with the operation of an adult entertainment business. 
  
 (l) “Property” shall mean that certain real property owned
by Landlord upon which the Premises are located. 
  
 (m)
“Real Property Taxes” shall mean (i) any fee, license fee, license tax, business license fee, levy, charge, real estate taxes, special or metro district assessment, penalty or tax imposed by any taxing authority against the Property
and Premises, and (ii) any tax or charge for fire protection, streets, sidewalks, road maintenance, refuse or other services provided to the Property by any governmental agency. In the event that it shall not be lawful for Tenant and Landlord
to apportion such future taxes, if any, then in that event, the minimum rent payable to Landlord under this Lease shall be revised to net Landlord the same rental after imposition of any such future tax upon Landlord as would have been payable to
Landlord prior to the impositions of any such tax. “Real Property Tax” does not, however, include Landlord’s federal or state income, franchise, inheritance or estate taxes. 
  
 (m) “Rent” shall mean Minimum Rent and any Additional Rent.

  
 (n) “Rent Commencement Date” shall mean that
date that Tenant’s obligation to pay rent, which shall commence upon the date the Tenant acquires the personal property located within the Premises from C.C.C.G., Inc., a Colorado corporation. 
  

 2 

 (o) “Site Plan” shall mean the site plan for the Property attached hereto as Exhibit A.

  
 2. LEASE OF DEMISED PREMISES.
Landlord hereby leases the Demised Premises to Tenant, and Tenant hereby leases the Demised Premises from Landlord, subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a material part of the consideration for
this Lease to keep and perform each and all of such terms, covenants and conditions by Tenant to be kept and performed. 
  
 3. LEASE TERM/OPTION TO RENEW. 
  
 (a) The Lease Term shall begin at twelve o’clock noon on the Rent Commencement Date and shall end at twelve o’clock noon on the last day of the
Tenth Lease Year. Promptly after the Rent Commencement Date, Landlord and Tenant shall execute a certificate of commencement setting forth the Rent Commencement Date and the expiration date of the Lease Term. 
  
 (b) Upon the condition that Tenant is not in default beyond any applicable
notice and cure periods at the time of the automatic exercise of any option contained in this subparagraph, Landlord hereby grants to Tenant three (3) separate options (each an “Option”) to renew the Lease Term each for an additional five
(5) year period (each an “Extended Term”) upon the same terms and conditions as set forth in this Lease, except that the Rent payable during each Extended Term will be as described in Paragraph 4 below. Each Option shall be deemed
automatically exercised by Tenant, unless Tenant provides written notice (“Termination Notice”) to Landlord notifying Landlord of the termination of said Option at least six (6) months prior to the end of either the Lease Term or any
Extended Term of this Lease. In the event that Tenant fails to give the Termination Notice within the time period set forth in the prior sentence, the Option shall be exercised and the Lease shall be extended for the Extended Term. If any Option is
not exercised, for any reason, or if the Tenant is in default beyond any applicable notice and cure periods, at the time which is six (6) months prior to either the Lease Term or an Extended Term of the Lease, the Lease shall terminate at the
expiration of the Lease Term and any Extended Term thereof. 
  
 (c) Provided that Tenant is not in default under this Lease beyond all applicable cure periods, Tenant shall have the first right of opportunity to enter into a purchase agreement with Landlord for the Premises. In the event that Landlord
determines that it desires to sell the Premises to an unaffiliated third party, it shall provide Tenant with all of the material business terms pursuant to which Landlord proposes to offer said proposed sale (“Term Notice”). Tenant shall
have a period of thirty (30) days after receipt of the Term Notice to notify Landlord that it desires to purchase the Premises in accordance with the Term Notice (“Tenant’s Acceptance Notice”). In the event that Tenant timely provides
Tenant’s Acceptance Notice, the closing of the sale pursuant to such terms will take place no later than ninety (90) days after Tenant provides said Tenant’s Acceptance Notice, provided, that Tenant’s obligation to close the
transaction shall have no contingencies, other than Landlord’s performance of its closing obligations. If Tenant fails to timely provide the Tenant’s Acceptance Notice or if, after providing Tenant’s Acceptance Notice, Tenant fails to
close the transaction within said ninety (90) day period then Landlord shall have the right to market the Premises subject to this Lease to an unaffiliated third party on the terms and conditions of the Term Notice, provided that the purchase price
for the Premises contained in such purchase contract may not be less than ninety-five percent (95%) of the 
  

 3 

 purchase price contained in the Term Notice. If Landlord is unable to close a contract for the sale of the Premises to an
unaffiliated third party subject to the price limitations described above within six (6) months from the later of the last day for Tenant’s acceptance of the Term Notice, or the date of the closing of the transaction if Tenant delivers a
Tenant’s Acceptance Notice and fails to close, as the case may be, Tenant’s first right of opportunity as provided herein shall be reinstated. 
  
 4. MINIMUM RENT. During the term hereof, Tenant agrees to pay the Landlord at the address as shown herein, or at such other place as the
Landlord may from time to time designate in writing, “Minimum Rent” for the Demised Premises. Said rent shall be payable in advance on the first of each month, without deduction or set-off, without notice or demand, as follows: 

 

							
	 Lease Years

	  	Per Annum

	  	Monthly

	 1-5
	  	$	480,000.00	  	$	40,000.00
	 6-10
	  	$	540,000.00	  	$	45,000.00
	 11-15 (Option Period 1)
	  	$	600,000.00	  	$	50,000.00
	 16-20 (Option Period 2)
	  	$	660,000.00	  	$	55,000.00
	 21-25 (Option Period 3)
	  	$	720,000.00	  	$	60,000.00

  
 In the event
the Rent Commencement Date is other than the first day of a month, Tenant will pay Rent for said partial month on a pro-rata basis; provided, however, the end of the Term shall be on the last day of the one hundred twentieth (120th) month of the Term of this Lease. 
  
 5. SECURITY DEPOSIT. [This Paragraph has been deliberately omitted.] 
  
 6. OPERATING COSTS. 
  
 (a) Tenant shall maintain the Premises in their condition on the Rent Commencement Date at Tenant’s sole cost and expense. Landlord may inspect the
Premises and, if Landlord reasonably determines that Tenant is not maintaining the Premises in their condition on the Rent Commencement Date, Landlord may provide Tenant with written notice of any such maintenance concern, and Tenant shall promptly
make such repairs. If Tenant fails to complete such repairs within thirty (30) days of receipt of such notice, Landlord may undertake such repairs and Tenant shall be obligated to reimburse Landlord for its costs within ten (10) days of receipt of
an invoice therefore. Landlord represents and warrants to Tenant that the exterior walls, foundation and roof of the Premises are in good working order on the Rent Commencement Date. Landlord will, at its cost, replace, restore, repair or maintain
(as necessary) the roof until the first anniversary of the Commencement Date. Landlord will, at its cost, replace, restore, repair or maintain (as necessary) the exterior walls and foundation of the Premises until the fifth anniversary of the
Commencement Date. Tenant shall be fully responsible for the replacement, restoration, repair and maintenance of the roof, exterior walls and foundation of the Premises thereafter. If Landlord fails to commence such repairs within thirty (30) days
of receipt of any notice from Tenant, Tenant may undertake such repairs and Landlord shall be obligated to reimburse Tenant for its costs within ten (10) days of receipt of an invoice therefore; provided, however, that Tenant shall have no
rights to offset or set off any such amounts against the Rent to be paid hereunder. If Landlord does not reimburse Tenant within ten (10) days from the date of notice, such charge shall bear interest at the rate of eighteen percent (18%) per annum
until paid. 
  

 4 

 Notwithstanding anything to the contrary herein contained (except for the provisions of paragraph 32
below), if Tenant makes any changes, additions or alterations to the roof of the Premises which involves penetration of the roof (other than those for telecommunications installations so long as the installation contractor has Landlord’s prior
written approval which will not be unreasonably conditioned, delayed or denied), Landlord’s obligations to replace, restore, repair or maintain the roof shall cease. If Tenant undertakes any structural repairs in the Premises which impact,
affect, or alter the walls or foundation of the Premises, Landlord’s obligation to replace, restore, repair or maintain that portion of the exterior walls and foundation of the Premises shall cease as of the date of such action by Tenant. Any
Operating Costs that pertain to a period prior to or after the Lease Term will be pro rated between Landlord and Tenant in the proportion of the amount of the Lease Term that falls within the period to which the Operating Costs pertain. 

 
 (b) Tenant shall pay all Operating Costs during the Lease Term.

  
 7. TAXES. 
  
 (a) Tenant shall pay all Real Property Taxes on the land, buildings
and other improvements constituting the Property and the Premises (including any fees, taxes or assessments against, or as a result of, any tenant improvements installed in the Demised Premises by or for the benefit of Tenant) attributable to the
Lease Term. Tenant shall pay such taxes ten (10) days prior to their due date and shall promptly provide Landlord with evidence of such payment. 
  
 (b) Tenant shall pay before delinquency all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to
Tenant which become payable during the Lease Term. In the event any or all of Tenant’s leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the Property, Tenant shall pay to
Landlord its equitable share of such taxes within ten (10) days after delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes determined by Landlord to be applicable to Tenant’s property. 
  
 (c) Any Real Property Taxes or other taxes described in this Paragraph 7 that
pertain to a period prior to or after the Lease Term will be pro rated between Landlord and Tenant in the proportion of the amount of the Lease Term that falls within the period to which the Real Property Taxes or other taxes pertain. 
  
 (d) Tenant may contest any Real Property Taxes or other taxes described in
this Paragraph 7 by proceedings conducted in accordance with law. Landlord will cooperate fully with Tenant in any such contest. Tenant will hold Landlord harmless from any loss, liability, or expense arising out of any such contest. If Landlord so
requires, Tenant shall escrow the disputed tax amount with Landlord as security for any liability that may be incurred as a result of such contest. 
  

 5 

 8. USE OF DEMISED PREMISES/MAINTENANCE OF LIQUOR LICENSES. 
  
 (a) Tenant shall use the Demised Premises only for the Permitted Use. Any
other use shall be subject to the prior written consent of Landlord, which may be withheld in Landlord’s reasonable discretion. 
  
 (b) Tenant shall not cause or permit any Hazardous Material (as herein after defined) to be brought upon, transported through, stored, kept, used,
discharged or disposed in or about the Property by Tenant, its agents, employees or contractors, except that any such Hazardous Material brought upon, transported, used, kept or stored in or about the Property which is necessary for Tenant to
operate its business for the Permitted Use will be brought upon transported, used, kept and sorted in only such quantities as are necessary for the usual and customary operation of Tenant’s business and in a manner that complies with (i) all
laws, rules, regulations, ordinances, codes or any other governmental restrictions or requirements of all federal, state and local government authorities having jurisdiction thereof regulating such Hazardous Material, (ii) any permits issued for any
such Hazardous Material (copies of which must be delivered to Landlord before any Hazardous Material is brought in, on or about the Property), and (iii) all products and manufacturers’ instructions and recommendations, to the extent they are
stricter than laws, rules, regulations, ordinances, codes or permits. If Tenant, its agents, employees or contractors, in any way breach the obligations stated in this subparagraph 8(b), or if the presence of Hazardous Materials on the Property
caused or permitted by Tenant results in release or threatened release of such Hazardous Material, on from or under the Property in violation of law, or if the presence on, from or under the Property of Hazardous Materials otherwise arises out of
the operation of Tenant’s business in violation of law, Tenant shall indemnify, defend, and hold harmless Landlord (and Landlord’s directors, shareholders, officers, employees, partners, agents, mortgagees or successors to Landlord’s
interest in the Demised Premises) (collectively, herein “Indemnity”) from any and all claims, sums paid in settlement of claims, judgments, damages, clean-up costs, penalties, fines, fees or expenses (including without limitation attorney,
consultant and expert fees and any fees incurred by Landlord to enforce the Indemnity) which arise during or after the Term as a result of Tenant’s breach of such obligations or such contamination of the Property violation of law as provided in
this subparagraph 8(b). The Indemnity includes, without limitation, costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work required by any federal, state, or local governmental
agency or political subdivision because of Hazardous Material present in the soil or groundwater on, under or originating from the Property if it is determined that Tenant caused or permitted such Hazardous Material to be present in the soil or
groundwater in violation of law. Without limiting the foregoing, if the presence of any Hazardous Material on the Property caused or permitted by Tenant results in any contamination, release or threatened release of Hazardous Material on, from or
under the Property or other properties in violation of law, Tenant shall promptly take all actions at its sole cost and expense which are necessary to return the Property and any other affected property to the condition existing prior to the
introduction of such Hazardous Material; provided that Landlord’s approval of such actions shall first be obtained (which approval shall not be unreasonably withheld) and so long as such actions do not have or would not potentially have any
material adverse effect on Landlord, on the Property or on other property. The Indemnity contained in this subparagraph 8 (b) shall survive the expiration or earlier termination of this Lease and shall survive any transfer of Landlord’s
interest in the Property. 
  

 6 

 (c) In conjunction with the operation of the Premises for its Permitted Use, Tenant has obtained a hotel
and restaurant class liquor license and adult cabaret liquor license from the State of Colorado and the City and County of Denver (“Liquor Licenses”). Tenant shall be solely responsible for and Tenant shall pay any and all fees,
assessments, charges, levies or other monetary obligations imposed in connection with the Liquor Licenses as required by applicable law. In the event Tenant receives any notice of violation, citation, written or oral warning, or any complaint,
objection, or challenge to the Liquor Licenses, Tenant shall notify Landlord in writing of such information within three (3) days of receipt of such written or oral notice and, if such notice was written, Tenant shall include in said notice a copy
of any notice, citation, correspondence or other written information provided to Tenant. Tenant shall utilize its best efforts to maintain the Liquor Licenses in good standing and in full compliance with the rules, regulations, ordinances and
statutes of the City and County of Denver and the State of Colorado. 
  
 (d) The Demised Premises will be operated under the name “Diamond Cabaret”. In the event of a default whereby Tenant’s rights in this Lease are terminated, Tenant shall forever relinquish any and all rights it may have to the
name “Diamond Cabaret” at the location of the Premises and Landlord shall be fully entitled to use such name at the Premises at its sole discretion without claim by Tenant. 
  
 9. COMPLIANCE WITH LAW. Tenant shall not use the Demised Premises or permit anything to be done in or about the
Demised Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter be enacted or promulgated including, without limitation, the Americans With Disabilities Act.
Landlord represents to Tenant that Landlord has received no notice that the Premises do not comply with all such laws, statutes, ordinances and rules and regulations on the Rent Commencement Date. Tenant shall, at its sole cost and expense, promptly
comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar bodies now or hereafter
constituted relating to or affecting the condition, use or occupancy of the Demised Premises, excluding those limited structural changes which are the responsibility of Landlord pursuant to subparagraph 6(a) above, which shall be the sole cost and
expense of Landlord; however, Tenant will not be obligated to comply with any such laws, statutes, ordinances, rules, regulations and requirements if (a) Landlord had received notice that the Demised Premises did not comply on the Rent Commencement
Date, or (b) unless required by competent governmental authorities. Tenant may at its expense contest its compliance obligations so long as Landlord is not subjected to any expense that Tenant does not pay or subject to criminal liability. The
judgment of any court of competent jurisdiction or the admission of Tenant in any action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or
requirement, shall be conclusive of that fact as between Landlord and Tenant. 
  
 10. ALTERATIONS AND ADDITIONS. Tenant shall not make or allow to be made any structural alterations, additions or improvements to or of the Demised Premises or any part thereof without first obtaining the
written consent of Landlord. However, Landlord’s consent will not be required to make any non-structural alterations, additions or improvements to the Demised Premises that conform to applicable building codes. In the event Landlord consents to
the making of any alterations, additions or improvements to the Demised Premises by Tenant, the same shall be made by Tenant at Tenant’s sole cost and expense and shall be completed in a 
  

 7 

 good and workmanlike manner, free of any liens. Any alterations, additions or improvements to or of the Demised Premises,
including, but not limited to, wall covering, paneling and built in cabinet work, but excepting movable furniture, decorations, trade fixtures and any personal property, shall at once become a part of the realty and belong to Landlord and shall be
surrendered with the Demised Premises. Upon the expiration or sooner termination of the Term, Tenant shall, upon written demand by Landlord, at Tenant’s sole cost and expense, forthwith and with all due diligence, remove any alterations,
additions or improvements made by Tenant which are designated by Landlord to be removed at the time of installation, and Tenant shall, forthwith and with all due diligence, at its sole cost and expense, repair any damage to the Demised Premises
caused by such removal. 
  
 11. MAINTENANCE AND REPAIR.

  
 (a) Subject to Landlord’s limited obligations under
subparagraph 6(a), by taking possession of the Demised Premises, Tenant shall be deemed to have accepted the Demised Premises as being in good order, condition and repair. Tenant shall, at Tenant’s sole cost and expense, keep the Demised
Premises and every part thereof in good condition and repair, including without limitation, the maintenance, repair and replacement of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and conduits, and the heating
and air conditioning (“HVAC”) system. Tenant shall obtain a service contract for repairs and maintenance of the HVAC system and shall provide to Landlord a copy of the service contract along with written details of any and all scheduled
and other repairs and maintenance performed on the HVAC system within ten (10) days of the date of such performance. Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Demised Premises to Landlord in good condition,
broom clean, ordinary wear and tear and damage subject to Paragraph 24 excepted. Except for damage subject to Paragraph 24, any damage caused by Tenant’s use of the Demised Premises shall be repaired at the sole cost and expense of Tenant.

  
 (b) Except as specifically provided in subparagraph 6(a)
above, Tenant shall repair and maintain the structural portions of the Building, including the exterior walls and roof. Landlord shall not be liable for Tenant’s failure to make such repairs or to perform any maintenance. There shall be no
abatement of Rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Demised Premises or
in or to fixtures, appurtenances and equipment therein. Tenant waives any right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect. 
  
 (c) If Tenant refuses or neglects to repair or maintain the Premises, as required herein, to the reasonable satisfaction of
Landlord, Landlord shall provide Tenant with written notice of any such refusal or neglect and Tenant shall repair any item mentioned in said notice within thirty (30) days thereafter. If Tenant has not made such repairs within the 30-day period,
Landlord may make such repairs without liability to the Tenant for any loss or damage it may accrue to Tenant’s merchandise, fixtures or other property or to Tenant’s business by reason thereof and, upon completion thereof, Tenant shall
pay Landlord’s costs for making such repairs upon presentation of a bill thereof. In the event Tenant does not pay such bill within ten (10) days of its receipt, such failure shall be an event of default hereunder, Landlord shall be entitled to
utilize all of its remedies herein and such amount shall bear interest at the rate of eighteen percent (18%) per annum from the date of the notice. Notwithstanding the foregoing, in the event that Tenant in good faith disputes Landlord’s claim
that Tenant has failed to repair or 
  

 8 

 maintain any aspect of the Premises, then if Landlord makes any repairs, Tenant shall not be obligated to pay for the
repairs or any interest thereon until the dispute is finally determined; provided, that Tenant shall deposit the disputed amount with the Landlord until the dispute is resolved. 
  
 12. LIENS. Tenant shall keep the Property free from any liens arising out of any work performed, materials furnished
or obligations incurred by or on behalf of Tenant or shall facilitate the release or protest of any such lien within thirty (30) days after the lien is filed. Landlord shall have the right to post notices on the Demised Premises that the Demised
Premises are not subject to liens of those providing labor and/or materials to the Demised Premises at the request of the Tenant pursuant to Colorado Statutes. Tenant shall provide Landlord with ten (10) days prior written notice prior to commencing
any improvements at the Property, to allow Landlord adequate time to post said notices. If Tenant determines to protest any lien, or if such lien affects Landlord’s interest in the Premises, for any reason, Landlord may require Tenant to post a
bond pursuant to the provisions of C.R.S. § 38-22-131. 
  
 13. ASSIGNMENT AND SUBLETTING. 
  
 (a) Tenant
shall not (voluntarily, by operation of law or otherwise) assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the Demised Premises or any part thereof, or any right or privilege
appurtenant thereto, or allow any other person (the employees, agents, servants and invitees of Tenant excepted) to occupy or use the Demised Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent
will not be unreasonably withheld, conditioned or delayed and will not be withheld if the assignee, subtenant or transferee is reputable, has equal or better credit than Tenant and any guarantor of this Lease at the time of the subject transaction,
and has substantial experience in the operation of the Permitted Use. Any assignment or subletting without such consent (whether actual or deemed) shall be void, and shall, at the option of Landlord, constitute a default under the terms of this
Lease. Acceptance of Rent by Landlord from anyone other than Tenant shall not be construed as a consent or waiver by Landlord, nor as a release of Tenant, but the same shall be taken to be a payment on account of Tenant. A consent to one assignment,
subletting, occupation or use by any other person shall not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Notwithstanding anything to the contrary in this Paragraph 13, Tenant may assign or
sublet the Premises without the prior written consent of Landlord, to an entity which currently owns more than fifty percent (50%) of the voting stock of Tenant or which Tenant owns greater than fifty percent (50%) of all classes of stock (or all
classes of partnership or membership interest). 
  
 (b) Tenant
shall provide Landlord with a copy of any proposed sublease or assignment that contains the name and address of the proposed subtenant or assignee, the anticipated effective date of the proposed sublease or assignment, the duration of the term of
any proposed sublease, and the amount of space any proposed subtenant will occupy. In addition, Tenant shall provide detailed information regarding the proposed subtenant’s or assignee’s financial condition and credit history, relevant
business history and experience, together with any other pertinent information which Landlord reasonably requires. Landlord may require an opportunity to meet and interview the proposed subtenant or assignee as well. For purposes of Landlord’s
consent to a proposed sublease or assignment, it shall be considered reasonable for 
  

 9 

 Landlord to consider (i) the relative financial strength, business reputation and operational/management experience of
Tenant and the proposed subtenant or assignee, (ii) any history that the proposed subtenant or anyone has with the liquor licensing agencies of the City and County of Denver and the State of Colorado, and (iii) whether the use of the Demised
Premises after such sublease or assignment would create any nuisance or violate any federal, state or local laws or involve Hazardous Materials. 
  
 (c) If Landlord consents to a proposed assignment or sublease, the form of such assignment or sublease shall be satisfactory to Landlord and shall (i)
incorporate this Lease in its entirety and be subject to its terms, (ii) provide that Tenant shall remain liable under this Lease, (iii) provide that subtenant will comply with all terms and conditions of this Lease, (iv) provide for assumption by
an assignee of all the terms, covenants and conditions which this Lease requires Tenant to perform, and (v) include a requirement that any subtenant attorn to the Landlord. Landlord’s consent will not be effective unless and until Tenant
delivers to Landlord an original, duly executed assignment or sublease, as the case may be, in a form satisfactory to Landlord, as set forth herein. Tenant shall pay Landlord’s reasonable fees, not to exceed One Thousand Dollars ($1,000.00),
incurred for review of such assignment or sublease and all other materials submitted by Tenant in connection with the request for Landlord’s consent, whether or not such assignment or sublease is approved. 
  
 Notwithstanding anything else in this article contained, as a condition to
Landlord’s written approval of any sublease by Tenant, Landlord may require that it shall be entitled to the receipt of one hundred percent (100%) of any profit derived by Tenant as a result of such sublease. Such profit is defined as any
amounts received by Tenant from its subtenant pursuant to the sublease in excess of the Rent required to be paid by Tenant hereunder. In the absence of any such agreement between Tenant and its subtenant, there will be deemed to be no profit. Tenant
shall deliver all documents pertaining to any such subletting to Landlord upon Landlord’s demand. Such profit shall not include any lump-sum payment made to Tenant from its subtenant in consideration of the transfer of Tenant’s business,
trade name, inventory, or goodwill: but any amount attributed to lease assignment on any document concerning the transaction (including the assignee’s tax return) by assignee shall be conclusively established as not attributable to
Tenant’s business, trade name, inventory or goodwill, and therefore, shall be included in Tenant’s profits as described herein. 
  
 14. HOLD HARMLESS. Except as limited by Paragraph 15, Tenant shall indemnify and hold Landlord harmless against and from any and all claims arising
from Tenant’s use of the Demised Premises or from the conduct of its business or from any activity, work or other things done, permitted or suffered by Tenant in or about the Demised Premises, and shall further indemnify and hold Landlord
harmless against and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any
officer, agent, employee, guest or invitee of Tenant, and from all costs, attorney’s fees and liabilities incurred in or about the defense of any such claim or any action or proceeding brought thereon, and in case any action or proceeding be
brought against Landlord by reason of such claim. Tenant upon written notice from Landlord shall defend the same at Tenant’s expense. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to its property
or injury to persons in, upon or about the Demised Premises, from any cause other then the negligence of Landlord, its agents, servants or employees. Tenant shall give prompt written notice to Landlord in case of casualty or accidents in the Demised
Premises. 
  

 10 

 15. WAIVER OF SUBROGATION. Landlord and Tenant hereby waive any and all rights of recovery against
each other, or against their respective officers, shareholders, employees, agents or representatives, for loss of or damage to property of the other. Landlord and Tenant shall give notice to their insurance carrier of this waiver of subrogation.

  
 16. INSURANCE. Commencing on the Rent Commencement Date
and continuing throughout the Lease Term, Tenant shall carry and maintain the following insurance (“Tenant’s Insurance”): (a) a “Broad” form of insurance policy, with an endorsement insuring against loss of Minimum Rent
(including Extended Period of Recovery, if applicable) insuring the buildings and improvements of the Property (and leasehold improvements) for 100% of their replacement value; (b) public liability, bodily injury and damage comprehensive insurance
coverage insuring against claims of any and all personal injury, death or damage occurring in or about the Demised Premises or the sidewalks adjacent thereto, with a combined single limit coverage of not less than $3,000,000 (subject only to a
commercially reasonable deductible), on an “occurrence” form and including contractual liability coverage for the performance by Tenant of the indemnity agreements set forth in Paragraph 15 above; (c) worker’s compensation insurance
insuring against and satisfying the worker’s compensation laws of the State of Colorado; and (d) “dram shop” or liquor liability insurance. Tenant’s Insurance shall be issued by an insurance company of recognized standing,
authorized to do business in the State of Colorado and having a Best’s Insurance Guide rating of at least A:VII and satisfactory to Landlord. Tenant’s Insurance (other than any policy of worker’s compensation insurance) will name
Landlord and Landlord’s lender(s) as additional insureds. Original or copies of original policies (together with copies of the endorsements naming Landlord and Landlord’s lender(s) as additional insureds) will be delivered to Landlord
prior to the Rent Commencement Date. Tenant’s Insurance will provide that it may not be terminated or amended except after thirty (30) days prior written notice to Landlord. All public liability property damage, liability and casualty policies
maintained by Tenant shall be written as primary policies, not contributing with and not supplemental to coverage that Landlord may carry. 
  
 17. UTILITIES. 
  
 (a) Tenant shall pay for all water, gas, heat, light, power, sewer charges, telephone service and all other services and utilities supplied to the Demised
Premises, together with any taxes thereon. 
  
 (b) Landlord
has advised Tenant that presently Xcel Energy, f/k/a Public Service Company of Colorado (“Electric Service Provider”) is the utility company selected by Landlord to provide electricity for the Property. 
  
 (c) Landlord does not warrant or guarantee the continued availability of any
or all of the utility services necessary or desirable for the use of the Demised Premises by Tenant. In no event shall the interruption, diminution or cessation of such services (unless caused by Landlord) be construed as an actual or constructive
eviction of Tenant, nor shall Tenant be entitled to any abatement of its Rent obligations under this Lease or on account thereof. Landlord shall in no way be liable or responsible for any loss, damage, or expense that Tenant may sustain or incur by
reason of any change, failure, interference, interruption, disruption or defect in the supply or character of the utilities furnished to the Demised Premises (unless caused by Landlord), and no such change, failure, diminution, cessation,
unavailability or 
  

 11 

 unsuitability shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any
abatement or diminution of rent, or relieve Tenant from any of its obligations under the Lease (unless caused by Landlord). In the event that any interruption, diminution or cessation of such services occurs solely as a result of the acts or
omissions of Landlord (or Landlord’s agents, employees or contractors), then Tenant’s Rent shall be abated during the period of interruption, diminution or cessation. 
  
 18. PERSONAL PROPERTY. Any property of Tenant remaining in the Demised Premises at any time when Landlord recovers
possession of the Demised Premises shall be deemed abandoned, and Landlord shall have no responsibility or liability whatsoever for any of the same. Notwithstanding the foregoing, Landlord may store any such property in any public or private
warehouse, and Tenant shall pay to Landlord promptly upon demand all costs incurred in connection with such property, including the costs of moving and storage, court costs, and attorney fees. Landlord at its option may, without notice, sell any
such personal property at any public or private sale, with or without legal process, for such prices as Landlord may obtain, and Landlord shall apply the proceeds of such sales first to the costs incurred in connection with such property, and then
to any amounts due under this Lease from Tenant to Landlord, and the surplus, if any, to Tenant. Landlord waives any statutory lien on Tenant’s personal property in the Premises. 
  
 19. FAILURE TO SURRENDER POSSESSION. 
  
 (a) The parties recognize and agree that the damage to Landlord resulting from any failure by Tenant to timely surrender
possession of the Demised Premises will be substantial, will exceed the amount of the monthly installments of the Rent payable hereunder, and will be impossible to measure accurately. 
  
 (b) Subject to subparagraph 3(b) herein, Tenant therefore agrees that if possession of the Demised Premises is not
surrendered to Landlord upon the expiration or sooner termination of this Lease, in addition to any other rights or remedies Landlord may have hereunder or at law, Tenant shall pay to Landlord, as liquidated damages, for each month and for each
portion of any month during which Tenant holds over in the Demised Premises after the expiration or sooner termination of this Lease, a sum equal to one hundred thirty percent (130%) of the aggregate of that portion of the monthly Rent that was
payable under this Lease during the last month of the term hereof. The provisions of this subparagraph shall survive the expiration or sooner termination of this Lease. 
  
 (c) No provision of this Paragraph 19 or any other provision of this Lease shall be deemed to permit Tenant to retain
possession of the Demised Premises after the expiration or sooner termination of the Lease Term, or to have extended or renewed the Lease Term beyond its expiration or termination. Acceptance of any payment of Rent during any holdover period by
Landlord shall not be deemed acceptance of Tenant’s occupancy. 
  
 20. ENTRY BY LANDLORD. Upon no less than twenty-four (24) hours’ prior notice which may be given orally to Troy Lowrie or his designee identified in a written notice to Landlord, Landlord shall at any and all times have the
right to enter the Demised Premises to inspect the same, to show the Demised Premises to prospective purchasers or (in the last six (6) months of the Lease Term or any Extended Term) tenants and to post notices of non-responsibility. Landlord shall
also have the right to conduct such maintenance and repair of or to 
  

 12 

 the Demised Premises (or the Building) as this Lease requires or allows Landlord to perform, without abatement of Rent,
and for that purpose may erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Demised Premises shall not be unreasonably blocked thereby,
and further provided that the business of Tenant shall not be interfered with unreasonably. Landlord shall attempt to minimize interference with Tenant’s business. Tenant hereby waives any claim for damages or for any injury or inconvenience to
or interference with Tenant’s business, loss of occupancy or quiet enjoyment of the Demised Premises, and any other loss occasioned thereby, unless occasioned by the willful act or negligence of Landlord, its agents, employees or contractors.
Landlord shall have the right to access without notice and to use any and all means which Landlord may deem proper to open said doors in an emergency, in order to obtain entry to the Demised Premises without liability to Tenant except for any
failure to exercise due care for Tenant’s property. Any entry to the Demised Premises obtained by Landlord by any of such means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or
a detainer of the Demised Premises, or an eviction of Tenant from the Demised Premises or any portion thereof. 
  
 21. TENANT’S DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant:

  
 (a) the abandonment of the Premises; 
  
 (b) failure by Tenant to pay any Rent when required hereunder and such
failure continues for ten (10) days after Tenant’s receipt of written notice from Landlord of such failure, provided, that Landlord shall only be obligated to provide Tenant with written notice of monetary default one (1) time in any
period of twelve (12) consecutive months; 
  
 (c) failure
by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, except the payment of Rent, where such failure shall continue for a period of thirty (30) days after written notice
thereof by Landlord to Tenant (provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such
cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion); 
  
 (d) the making by Tenant or Guarantor (while the Guaranty is in effect) of any general assignment or general arrangement for the benefit of creditors; or
the filing by or against Tenant or Guarantor (while the Guaranty is in effect) of a petition to have Tenant or Guarantor (while the Guaranty is in effect) adjudged a bankrupt, or a petition or a reorganization or arrangement under any law relating
to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the
Demised Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the
Demised Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days; or 
  
 (e) any of the Liquor Licenses for the Premises is revoked or is suspended for more than three (3) weeks by the State of Colorado or the City and County
of Denver for any reason whatsoever. 
  

 13 

 Notwithstanding the cure period allowed by subparagraph (c) above, it shall be an immediate default under
this Lease if Tenant fails to surrender the Demised Premises to Landlord upon the expiration or sooner termination of the Lease, or if any failure of Tenant to comply with any provision of this Lease results in the cancellation of any property
insurance coverage or causes or results in a dangerous condition on the Demised Premises or the remainder of the Property, and such failure to comply is not cured as soon as reasonably possible after notice thereof by Landlord to Tenant. In no event
shall financial inability be considered a reasonable ground for failure of Tenant to cure any breach of, or failure to comply with, the provisions of this Lease. 
  
 22. LANDLORD’S REMEDIES. In the event of any such default or breach by Tenant, Landlord may take any of the
following actions at any time thereafter, in its sole discretion, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach under the laws or
judicial decisions of the State of Colorado. 
  
 (a) Landlord may
terminate Tenant’s right to possession of the Demised Premises by any lawful means, in which case this Lease shall terminate, Tenant shall immediately surrender possession of the Demised Premises to Landlord, and Landlord shall be entitled to
recover from Tenant all damages incurred by Landlord by reason of Tenant’s default including, but not limited to, the cost of recovering possession of the Demised Premises; the cost to restore the Premises to the condition required by this
Lease at the end of the Lease Term; and reasonable attorney fees. 
  
 (b) Landlord may reenter and take possession of the Demised Premises or any part thereof, without demand or notice, and repossess the same and expel Tenant and any party claiming by, under or through Tenant, and remove the effects of both
using such force for such purposes as may be necessary, without being liable for prosecution on account thereof of being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of Rent or right to bring any
proceeding for breach of covenants or conditions. No such reentry or taking possession of the Demised Premises by Landlord shall be construed as an election by Landlord to terminate this Lease unless a written notice of such intention is given to
Tenant. No notice from Landlord hereunder or under a forcible entry and detainer statute or similar law shall constitute an election by Landlord to terminate this Lease unless such notice specifically so states. Landlord reserves the right,
following any reentry or releting, to exercise its right to terminate this Lease by giving Tenant such written notice, in which event this Lease will terminate as specified in such notice. After recovering possession of the Demised Premises,
Landlord use reasonable efforts to relet the Demised Premises, or any part thereof, for the account of Tenant, for such term or terms and on such conditions and upon such other terms as Landlord, in its discretion, may determine. Landlord may make
such repairs, alterations or improvements as Landlord may consider reasonably appropriate to accomplish such releting, and Tenant shall reimburse Landlord upon demand for all reasonable costs and expenses (including without limitation leasing
commissions and attorney fees) which Landlord may incur in connection with such releting. Landlord may collect and receive the rents for such releting but Landlord shall in no way be responsible or liable for any failure to relet the Demised
Premises, or any part thereof, or for any failure to collect any rent due upon such releting. Notwithstanding Landlord’s recovery of possession of the Demised Premises, Tenant shall continue to pay on the 
  

 14 

 dates herein specified, the Minimum Rent and all Additional Rent which would be payable hereunder if such repossession
had not occurred, less a credit for the net amounts, if any, actually received by Landlord through any releting of the Demised Premises. 
  
 (c) Landlord may maintain Tenant’s right to possession, in which case this Lease shall continue in effect whether or not Tenant shall have abandoned
the Demised Premises. In such event Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the Rent as it becomes due hereunder. 
  
 (d) In any event, Landlord shall be entitled to recover interest on any
unpaid Rent or any amounts owing pursuant to this Lease not paid when due at the rate of eighteen percent (18%) per annum from the date due until paid in full. 
  

23. DEFAULT BY LANDLORD. Landlord shall not be in default under this Lease unless Landlord fails to perform obligations required of Landlord
within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust covering the Demised Premises whose name and address shall be furnished
to Tenant in writing within ten (10) days after the execution of this Lease and within ten (10) days following any change in the holder of the first mortgage or deed of trust, specifying wherein Landlord has failed to perform such obligation;
provided, however, that if the nature of Landlord’s obligations is such that more than thirty (30) days are required for performance then Landlord shall not be in default if Landlord commences performance within such thirty (30) day period and
thereafter diligently prosecutes the same to completion. 
  
 24. RECONSTRUCTION. 
  
 (a) Subject to the
provisions of subparagraphs (b) and (c) below, in the event the Demised Premises or any other portion of the Building is damaged by fire or other perils covered by extended coverage insurance, and such damage does not require structural demolition
and reconstruction of all or part of the Building, Landlord agrees to forthwith repair such damage utilizing the proceeds of insurance and this Lease shall remain in full force and effect, except that Tenant shall be entitled to an equitable
reduction of Minimum Rent from the date of damage until completion of such repairs, based on the extent to which the damage and making of such repairs shall reasonably interfere with the business carried on by Tenant in the Demised Premises.

  
 (b) In the event that any casualty requires structural
demolition and reconstruction of all or a material part of the Building (whether or not such reconstruction involves any portion of the Demised Premises), Tenant may, at its election, give notice to Landlord at any time within sixty (60) days after
such damage, terminating this Lease as of the date of the casualty. In the event of giving such notice, this Lease and all interest of Tenant in the Demised Premises shall terminate on the date of the casualty, the Rent shall be paid up to the date
of such casualty, and Landlord shall be entitled to all insurance maintained by Tenant on the Building (except for proceeds attributable to Tenant’s personal property in, on or about the Demised Premises). In the alternative, and so long as at
least five (5) years remain in the Term or Tenant then exercises an Option pursuant to Paragraph 3(b), if any Tenant may, by written notice to Landlord within such 60-day period, elect to require Landlord to repair or restore such damage, in which
case the Minimum Rent shall be proportionately reduced as provided in subparagraph (a) above and this Lease shall continue in full force and effect; PROVIDED, 
  

 15 

 HOWEVER, that Tenant shall have the right to alter the size and configuration of the Building in the course of such
reconstruction, so long as the Building as reconstructed is an integrated architectural unit, the dimensions of the Demised Premises are substantially the same as prior to such casualty and Tenant is able to operate its business as intended at the
time of Lease execution, subject to Landlord’s approval which will not be unreasonably conditioned, delayed or denied. If Tenant elects to require Landlord to construct the improvements, Tenant will make available to Landlord all insurance
proceeds received by Tenant or due to Tenant, and, prior to any reconstruction, Tenant will deposit with Landlord or its contractor the amount by which the cost of reconstruction exceeds the amount of the insurance proceeds. 
  
 25. EMINENT DOMAIN/TERMINATION OF BUSINESS. If more than twenty
percent (20%) of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party hereto shall have the right, at its option, within sixty (60) days after said taking, to terminate
this Lease upon thirty (30) days written notice. If less than twenty percent (20%) of the Building is taken (or if more than 20% is taken but neither party elects to terminate as herein provided), the Minimum Rent thereafter to be paid shall be
equitably reduced. If all of the Property other than the Building shall be so taken or appropriated, Landlord or Tenant shall within sixty (60) days of said taking have the right at its option to terminate this Lease upon written notice to Tenant.
In the event of any taking appropriation whatsoever, Landlord shall be entitled to any and all awards and/or settlements which may be given, and Tenant shall have no claim against Landlord for the value of any unexpired term of this Lease. Tenant
may apply separately to the condemning authority to obtain compensation for its relocation expenses. 
  
 In the event the City and County of Denver rezones the Premises in a fashion that precludes Tenant from operating any material part of the Premises for
the Permitted Use or prohibits the use of the Premises for the Permitted Use (a so-called “amortization”), as determined by Tenant in its reasonable discretion, Tenant shall be entitled to terminate this Lease without further liability
upon the provision of sixty (60) days advance written notice to Landlord. Tenant shall utilize its best efforts to contest any rezoning or prohibition and shall keep Landlord fully informed of the status of such rezoning actions by the City and
County of Denver. 
  
 26. SIGNS. Tenant may affix and
maintain only such signs, advertising placards, names, insignia, trademarks and descriptive material (collectively “Signs”) as shall have first received the written approval of competent governmental agencies as to type, size, color,
location, copy nature and display qualities. Upon expiration or earlier termination of this Lease, Tenant’s Signs may, at Tenant’s election, remain on the Property. Tenant may use any Signs (and replacements or renovations to them) on the
Property beginning on the Rent Commencement Date. 
  
 27. GUARANTY. During the first ten (10) Lease Years, the obligations of Tenant under this Lease shall be unconditionally guaranteed by Guarantor pursuant to the form of Guaranty Agreement attached hereto as Exhibit B. 
  
 28. ACCORD AND SATISFACTION. No payment by Tenant, nor receipt by
Landlord, of a lesser amount than the Rent herein stipulated shall be deemed to be other than on an account of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check, or payment as
Rent, be deemed an accord and satisfaction, and Landlord shall accept such check for payment without prejudice to Landlord’s 
  

 16 

 right to recover the balance of such Rent or pursue any other remedy available to Landlord. Tenant expressly waives any
right it may have to claim that any payment due from Tenant to Landlord hereunder, which payment is less than the full amount due to the Landlord or claimed by Landlord, shall be deemed an accord and satisfaction. This waiver of Tenant’s right
to claim an accord and satisfaction shall be without regard to whether or not a dispute exists with regard to the amount claimed by Landlord. No payment by Tenant, nor receipt by Landlord, of a lesser amount than the full amount due pursuant to this
Lease shall be deemed to be other than on an account of Tenant toward the amount claimed by Landlord, nor shall any letter or statement accompanying any such payment be deemed an accord and satisfaction, and Tenant hereby waives its right to so
claim. 
  
 29. GROSS SALES REPORTS. Within sixty (60) days
after the end of each calendar year during the Lease Term and to the extent not prohibited by law, Tenant shall furnish to Landlord a copy of the state sales tax report showing sales made in, upon or from the Demised Premises during the preceding
calendar year. 
  
 30. GENERAL PROVISIONS. 
  
 (a) Waiver. The waiver of any term, covenant or condition herein
contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Rent hereunder by Landlord shall not be
deemed to be a waiver of any preceding default by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such preceding default at
the time of the acceptance of such Rent. 
  
 (b) Marginal
Headings. The marginal headings and titles to the articles of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any part hereof. 
  
 (c) Time. Time is of the essence of this Lease and each and all of its
provisions in which performance is a factor. 
  
 (d) Successors
and Assigns. The covenants and conditions herein contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. 
  
 (e) Recordation. Neither Landlord nor Tenant shall record this Lease,
but a short form memorandum hereof may be recorded at the request of Landlord or Tenant. 
  
 (f) Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Minimum Rent and scheduled Additional Rent due hereunder will cause Landlord to incur costs not contemplated by this
Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed
covering the Demised Premises. Accordingly, if any installment of Rent due from Tenant shall not be received by Landlord or Landlord’s designee (a) within five (5) days after receipt of notice that such amount has not been paid when due (if
notice is required pursuant to Section 21(b)) or (b) within ten (10) days of when due (if no notice is required), then Tenant shall pay to 
  

 17 

 Landlord a late charge equal to five percent (5%) of the installment or $500, whatever is greater, plus any attorney fees
incurred by Landlord by reason of Tenant’s failure to pay Rent when due hereunder. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that Landlord will incur by reason of the late payment of
Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder.

  
 (g) Prior Agreements. This Lease contains all of the
Agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreement or understanding pertaining to any such matters shall be effective for any purpose. No provision of this Lease may be amended or
added to except by an agreement in writing signed by the parties hereto of their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both parties hereto. 
  
 (h) Partial Invalidity. Any provisions of this Lease which shall prove
to be invalid, void, or illegal shall in no way effect, impair or invalidate any other provision hereof, and all such other provisions shall remain in full force and effect. 
  
 (i) Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, whenever possible, be
cumulative with all other remedies at law or in equity. 
  
 (j) Choice of Law. This Lease shall be governed by the laws of the State of Colorado. 
  
 (k) Attorney Fees. In the event any action or proceeding is brought by either party against the other under this Lease, the prevailing party shall
be entitled to recover for the fees of its attorneys in such action or proceeding, including costs of appeal, if any, such amount as the court may adjudge reasonable as attorney fees. 
  
 (l) Sale of Demised Premises by Landlord. In the event of any sale of the Demised Premises by Landlord, Landlord
shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence or omission occurring after the consummation of such
sale; and the purchaser, at such sale or any subsequent sale of the Premises, shall be deemed, without any further agreement between the parties or their successors in interest or between the parties and any such purchaser, to have assumed and
agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. 
  
 (m) Subordination, Attornment. So long as it is provided a subordination, nondisturbance and attornment agreement in form and substance reasonably acceptable to it, upon request of Landlord, Tenant will in
writing subordinate its rights hereunder to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or hereafter in force against the Demised Premises, and to all advances made or hereafter to be
made upon the security thereof. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord covering the Demised Premises, Tenant shall attorn to
the purchaser upon any such foreclosure or sale, and recognize such purchaser as the Landlord under this Lease so long as it is provided a subordination, nondisturbance and attornment agreement in form and substance 
  

 18 

 reasonably acceptable to it. The provisions of this subparagraph to the contrary notwithstanding, and so long as Tenant
is not in default hereunder, this Lease shall remain in full force and effect for the full Lease Term hereof. 
  
 (n) Notices. Except as set forth below, all notices to be given hereunder by either of the parties shall be in writing. Any notice may be served by
Landlord upon Tenant personally by delivering the same to Tenant directly. Any notice shall be deemed duly served by either party if addressed as set forth below and (i) deposited with the United States Postal Service as certified mail, return
receipt requested, with proper postage prepaid, or (ii) deposited with FedEx or other reliable overnight courier for expedited delivery. Either party may change the address to which the notices may be sent by delivering a copy thereof to the other
party in the manner aforesaid and sent contemporaneously by telecopy. If service is made by personal delivery or Federal Express, such service shall be deemed completed upon actual receipt of such material. If service shall be made by certified
mail, such service shall be deemed completed as of the third day following the mailing of such notice in the manner aforesaid. 
  

							
	To Landlord:	 	 	 	 	  	Glenarm Associates, Inc.
	 	 	 	 	 	  	c/o Gerald Kernis
	 	 	 	 	 	  	6551 E. Ida Avenue
	 	 	 	 	 	  	Englewood, Colorado 80111
	 	 	 	 	 	  	Tele: (303) 378-4250
	 	 	 	 	 	  	Fax:
                                       
 
				
	and	 	 	 	 	  	c/o E. Richard Miller
	 	 	 	 	 	  	Magna Development
	 	 	 	 	 	  	4725 S. Monaco Street
	 	 	 	 	 	  	Denver, Colorado 80237
	 	 	 	 	 	  	Tele: (303) 782-5505
	 	 	 	 	 	  	Fax:
                                       
 
				
	and	 	 	 	 	  	Charles Goldberg, Esq.
	 	 	 	 	 	  	Rothgerber Johnson & Lyons LLP
	 	 	 	 	 	  	1200 17th Street, Suite 3000
	 	 	 	 	 	  	Denver, Colorado 80202
	 	 	 	 	 	  	Tele: (303) 623-9000
	 	 	 	 	 	  	Fax: (303) 623-9222
				
	and	 	 	 	 	  	Walter Slatkin, Esq.
	 	 	 	 	 	  	Wolf & Slatkin PC
	 	 	 	 	 	  	44 Cook Street, Suite 1000
	 	 	 	 	 	  	Denver, Colorado 80206
	 	 	 	 	 	  	Tele: (303) 355-2999
	 	 	 	 	 	  	Fax: (303) 329-6826

  

 19 

					
	and	 	 	  	Shawn Cooper
	 	 	 	  	The Iris Group, Inc.
	 	 	 	  	360 South Monroe, Suite 290
	 	 	 	  	Denver, Colorado 80209
	 	 	 	  	Tele: (303) 399-2855
	 	 	 	  	Fax: (303) 399-2865
			
	To Tenant:	 	 	  	Glenarm Restaurant LLC
	 	 	 	  	Attn: Mr. Troy Lowrie
	 	 	 	  	390 Union Boulevard, Suite 540
	 	 	 	  	Lakewood, Colorado 80228
			
	and	 	 	  	International Entertainment Consultants, Inc.
	 	 	 	  	Attn: Mr. Michael Ocello
	 	 	 	  	1401 Mississippi Avenue, Bay #10
	 	 	 	  	Sauget, Illinois 62201
			
	and	 	 	  	VCG Holding Corp.
	 	 	 	  	Attn: Mr. Donald W. Prosser
	 	 	 	  	390 Union Boulevard, Suite 540
	 	 	 	  	Lakewood, Colorado 80228
			
	and	 	 	  	Mark A. Senn, Esq.
	 	 	 	  	Senn Visciano Kirschenbaum Merrick, P.C.
	 	 	 	  	1801 California Street, Suite 4300
	 	 	 	  	Denver, Colorado 80202

  
 (o) Estoppel
Statement. Landlord and Tenant shall at any time and from time to time, upon not less than ten (10) days prior written notice from Landlord, execute, acknowledge and deliver a statement in writing containing such statements as Landlord or Tenant
or any prospective purchaser or mortgagee of the Property or Tenant’s business at the Property may require, including (a) certification that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such
modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, (b) acknowledgment that there are not, to the certifier’s knowledge, any
uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, (c) confirmation of the Rent Commencement Date and the expiration date of the Lease Term, (d) confirmation that no rents have been paid more than one
(1) month in advance, and (e) confirmation that Tenant has no right to purchase the Premises other than as contained herein. If Landlord or Tenant fails to execute an estoppel statement within such ten (10) day period, Landlord or Tenant (as the
case may be) is hereby authorized to execute an estoppel statement as Landlord’s or Tenant’s attorney in fact. Any such statement may be relied upon by the prospective purchaser or encumbrancer of all or any portion of the Property or
Tenant’s business at the Property. 
  
 (p)
Authority. If Tenant is a corporation, partnership, trust or limited liability company, each individual executing this Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease on
behalf of Tenant in accordance with the bylaws, partnership agreement or operating agreement (as the case may be) of Tenant, and that this Lease is binding upon Tenant. 
  

 20 

 (q) No Partnership. It is expressly understood that the Landlord and Tenant are not partners or
co-venturers and that the Landlord has no right, title or interest in and to the business of the Tenant, and that the Tenant has no right to represent or bind the Landlord or Tenant (as the case may be) in any respect whatsoever, and that nothing
contained herein shall be deemed, held or construed as making the Landlord or Tenant a partner or associate of Landlord or Tenant, or as rendering the Landlord or Tenant liable for any debts, liabilities or obligations incurred by the Tenant; it is
being expressly understood that the relationship between the parties hereto is, and shall at all times remain that of Landlord and Tenant. 
  
 31. PARKING SPACES. As additional consideration to the Landlord for execution of this Lease, Tenant agrees that Landlord, or its designee, shall
have the right to utilize up to ten (10) parking spaces located in the parking lot to the north of the Building from the hours of 8:00 a.m. to 6:00 p.m. for the use of occupants of that building owned by Landlord and located at 437-449 West Colfax
Avenue, Denver, Colorado for so long as Landlord (or any of its present shareholders or entities controlled or owned by them) owns the building. Such spaces shall be no cost to Landlord; however, Landlord agrees that Tenant may designate the spaces
to be used and may relocate those spaces within the parking lot upon provision of reasonable advance written notice to Landlord. Any utilization of parking spaces by Landlord shall be subject to parking space requirements imposed upon the operation
of the Premises by the City and County of Denver. 
  
 32. USE
OF ROOF. Landlord has currently leased a portion of the space on the roof for location of a cell phone tower to a cellular provider. Any and all rental received from the use of cellular devices on the roof pursuant to the current lease and any
extension of it shall belong to Landlord. Tenant may utilize a portion of the roof, upon Landlord’s advance written consent, not to be unreasonably withheld, at no extra charge for those uses which are reasonably affiliated with the Permitted
Use. Each party shall be responsible for any damage to the roof caused as a result of its use or use by its tenants. 
  
 33. BROKERS. Tenant warrants that except for the principals of Landlord (who may be licensed real estate brokers acting on their own behalf), it
has had no dealings with any real estate broker or agents in connection with the negotiation of this Lease. 
  
 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as dated: 
  

					
	 LANDLORD:
  
 GLENARM ASSOCIATES, INC.,
 a Colorado corporation

		
	By:	 	 /s/ Gerald Kernis

	 	 	Name:	 	 Gerald Kernis

	 	 	Title:	 	 President

	 	 	Date:	 	 August 31, 2004

  

 21 

					
	TENANT:
	
	GLENARM RESTAURANT LLC,
	a Colorado limited liability company
		
	By:	 	 /s/ Troy H. Lowrie

	 	 	Name:	 	 Troy H. Lowrie

	 	 	Title:	 	 CEO of Managing Member

	 	 	Date:	 	 August 31, 2004

  

 22 

 EXHIBIT “A” 
  
 LOCATION OF DEMISED PREMISES 
  

1222 Glenarm Place, Denver, Colorado 
  

 23 

 EXHIBIT “B” 
  
 GUARANTY OF LEASE 
  
 In order to induce Glenarm Associates, Inc., a Colorado corporation (“Landlord”) to enter into that certain Lease dated August
    , 2004 (the “Lease”) with Glenarm Restaurant LLC, a Colorado limited liability company (“Tenant”), VRG Holding Corp., a Colorado corporation (“Guarantor”) hereby makes the following
agreements with and in favor of Landlord: 
  
 1. Guarantor hereby
guarantees, unconditionally and absolutely, the full and faithful performance and observance of all the covenants, terms, and conditions of the Lease to be performed and observed by Tenant, expressly including, without being limited to, the payment,
when due, of Minimum Rent and Additional Rent payable under the Lease. 
  
 2. If the Lease shall be modified in any respect by agreement between Landlord and Tenant, the obligations hereunder of Guarantor shall extend and apply with respect to the full and faithful performance and observance of all the covenants,
terms and conditions of the Lease and of any such modification thereof. 
  
 3. This Guaranty shall be effective for all obligations of Tenant incurred during the first ten (10) years of the Lease. This Guaranty shall not apply to any obligations of Tenant incurred during any renewals or extensions of the Lease.

  
 4. Insofar as the payment by Tenant of any sums of money to
Landlord is involved, this Guaranty is a guaranty of payment and not of collection, and shall remain in full force and effect until payment in full to Landlord of all sums payable under the Lease. Guarantor waives any right to require that any
action be brought against Tenant. 
  
 5. Guarantor does not
require any notice of Tenant’s nonpayment, nonperformance, or non-observance of the covenants, terms and conditions of the Lease. Guarantor hereby expressly waives the right to receive such notice. 
  
 6. Guarantor expressly agrees (without in any way limiting his liability
under any other provision of this Guaranty) that Guarantor shall, at the request of Landlord, enter into a new lease with Landlord on the same terms and conditions as contained in the Lease immediately prior to its termination, for a term commencing
on the termination date of the Lease and ending on the expiration date of the Lease, if the Lease shall be terminated due to a default by Tenant thereunder. 
  
 7. The liability of Guarantor is coextensive with that of Tenant and also joint and several, and action may be brought against Guarantor and carried to
final judgment either with or without making Tenant a party thereto. 
  
 8. Until all of Tenant’s obligations under the Lease are fully performed, Guarantor (a) waives any rights that Guarantor may have against Tenant by reason of any one or more 
  

 24 

 payments or acts in compliance with the obligations of Guarantor under this Guaranty, and (b) subordinates any liability
or indebtedness of Tenant held by Guarantor to the obligations of Tenant to Landlord under this Lease. 
  
 9. Neither Guarantor’s obligation to make payment in accordance with the terms of this Guaranty nor any remedy for the enforcement thereof shall be
impaired, modified, released or limited in any way by any impairment, modification, release or limitation of the liability of Tenant or its estate in bankruptcy, resulting from the operation of any present or future provision of the Bankruptcy Code
of the United States or from the decision of any court interpreting the same. 
  
 10. Guarantor waives any right to require that resort be had to any security or to any other credit in favor of Tenant. 
  
 11. Guarantor waives the benefit of any statute of limitations affecting Guarantor’s liability under this Guaranty. Guarantor hereby waives the right
to trial by jury in any action or proceeding that may hereafter be instituted by Landlord against Guarantor in respect of this Guaranty. 
  
 12. Guarantor irrevocably appoints Tenant as his agent for service of process related to this Guaranty. 
  
 13. Guarantor shall pay all of Landlord’s expenses, including but not
limited to, attorney’s fees, incurred in enforcing this Guaranty. 
  
 14. The Lease and this Guaranty shall be governed by, interpreted under the laws of, and enforced in the courts of the State of Colorado. 
  
 15. This Guaranty, and all of the terms hereof, shall be binding on Guarantor and the successors, assigns and legal representatives of Guarantor, and
shall inure to the benefit of and may be enforced by Landlord, its successors and assigns, and the holder of any mortgage to which the Lease may be subject and subordinate from time to time. 
  
 16. Anything herein or in the Lease to the contrary notwithstanding,
Guarantor hereby acknowledges and agrees that any security deposit or other credit in favor of the Tenant may be applied to cure any Tenant default or offset any damages incurred by Landlord under the Lease, as Landlord determines in its sole and
absolute discretion, and Landlord shall not be obligated to apply any such deposit or credit to any such default or damages before bringing any action or pursuing any remedy available to Landlord against Guarantor. Guarantor further acknowledges
that its liability under this Guaranty shall not be affected in any manner by such deposit or credit, or Landlord’s application thereof. 
  

 25 

			
	 Guarantor:
	  	 VCG HOLDING CORP.,

	 	  	 a Colorado corporation

	 Address of Guarantor:
	  	 390 Union Street, Suite 540

	 	  	 Lakewood, Colorado 80228

  

			
	 VCG HOLDING CORP., a Colorado corporation

		
	 By:
	 	 /s/ Troy Lowrie

	 	 	 Troy Lowrie

	 	 	 Chairman and Chief Executive Officer

  

 26

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