Document:

Subscription Agent Agreement

 Exhibit 4.2 
 FORM OF 
 SUBSCRIPTION AGENT AGREEMENT 
 Date: August     , 2008 
 The Bank of New York Mellon 
 480 Washington Blvd, 27th Floor 
 Jersey City New Jersey 07310 
 Attn:    Reorganization Department 
 Gentlemen: 
 PGT, Inc, a Delaware corporation (the “Company”), is distributing to each holder of record (“Eligible Holder”) as of the close of
business on August 4, 2008 (the “Record Date”), of its outstanding shares of common stock, par value $0.01 per share (the “Common Stock”), one non-transferable subscription right (each, a “Right”) for every four
shares of Common Stock owned (the “Rights Offering”). Each whole Right entitles an Eligible Holder to purchase one share of the Company’s Common Stock (each, a “Share”) at a subscription price of $4.20 per share (the
“Subscription Price”), payable by cashier’s or certified check or by wire transfer of immediately available funds, upon the terms and conditions set forth herein and in the Prospectus (as defined below). The term
“Subscribed” shall mean submitted for purchase from the Company by a stockholder in accordance with the terms of the Rights Offering, and the term “Subscription” shall mean any such submission. The Rights Offering will expire at
5:00 p.m., Eastern Daylight Time, on September 4, 2008 (the “Expiration Time”), unless the Company shall have extended the period of time for which the Rights Offering is open, in which event the term “Expiration Time” shall
mean the latest time and date at which the Rights Offering, as so extended by the Company from time to time, shall expire. 
 The Company
filed a Registration Statement relating to the Rights Offering with the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, on March 28, 2008. The Company filed an amendment to
the Registration Statement with the SEC on the date hereof. The terms of the Rights Offering are more fully described in the Prospectus (the “Prospectus”) forming part of the Registration Statement as such Registration Statement may be
declared effective, and the accompanying Instructions for Use of PGT, Inc. Subscription Rights Certificates (the “Instructions for Use”). All terms used and not defined herein shall have the same meaning as in the Prospectus. Promptly
after the Record Date, the Company will provide you with a list of holders of Common Stock as of the Record Date (the “Record Stockholders List”). 
 The Rights are evidenced by non-transferable subscription rights certificates (the “Subscription Rights Certificates”), a copy of the form of which is annexed hereto as Exhibit 1. Each Eligible Holder of
Subscription Rights Certificates who exercises in full his right to subscribe for Shares that can be subscribed for with the Rights evidenced by such Subscription Rights Certificates (the “Basic Subscription Privilege”) will, to the extent
that other Eligible Holders elect not to exercise all of their respective Rights in the Basic Subscription Privilege, be permitted to subscribe for additional shares of Common Stock at the Subscription Price up to an amount equal to the number of
Shares such Eligible Holder subscribed for under his Basic Subscription Privilege (the “Over-Subscription Privilege”). If the number of Shares remaining 

 
after the exercise of all Rights under the Basic Subscription Privilege is not sufficient to satisfy all requests for Shares under the Over-Subscription
Privilege, the Eligible Holders who exercised their Rights under the Over-Subscription Privilege will be allocated such remaining Shares in proportion to the number of Shares they have purchased under the Over-Subscription Privilege. If the pro
rata allocation exceeds the number of Shares requested in the Over-Subscription Privilege, then each Eligible Holder will receive only the number of Shares requested. If the pro rata allocation is less than the number of Shares requested
in the Over-Subscription Privilege, then the excess funds paid by each Eligible Holder as the Subscription Price for the Shares not issued will be returned to such Eligible Holder without interest or deduction. Fractional Rights will be rounded to
the nearest whole number, with such adjustments as directed by the Company as may be necessary to ensure that the Company offers 7,082,687 shares in the Rights Offering. No fractional shares shall be issued. 
 The Company hereby appoints you as Subscription Agent (the “Subscription Agent”) for the Rights Offering and agrees with you as follows:

 1) As Subscription Agent, you are authorized and directed to: 
 (A) Prepare and record the Subscription Rights Certificates in accordance with this agreement in the names of the Eligible Holders of the Common Stock as of the close of business on the Record Date, keep such records
as are necessary for the purpose of recording such issuance, and furnish to the Company a report of such issuance. The Subscription Rights Certificates may be signed on behalf of the Subscription Agent by the manual or facsimile signature of a Vice
President or Assistant Vice President of the Subscription Agent, or by the manual signature of any of its other authorized officers. 
 (B)
Promptly after you receive the Record Stockholders List: 
 (a) mail or cause to be mailed, by first class mail, to each Eligible Holder whose
address of record is within the United States and Canada the following materials, as appropriate (collectively, the “Subscription Materials”): (i) a Prospectus; (ii) a Subscription Rights Certificate evidencing the Rights to
which such holder is entitled; (iii) Instructions for Use; (iv) a Letter to Stockholders Who Are Record Holders; and (v) a return envelope addressed to you; and 
 (b) mail or cause to be mailed, by first class mail, to Eligible Holders whose address of record is outside the United States and Canada, or is an A.P.O.
or F.P.O. address, a copy of the Subscription Materials excluding the Subscription Rights Certificates, which you shall hold for the account of such Eligible Holder, making satisfactory arrangements for the exercise or other disposition of the
Rights evidenced thereby, and follow the instructions of such stockholder for the exercise, sale or other disposition of such Rights if such instructions are received at or before 11:00 a.m., Eastern Daylight Time, three business days preceding the
Expiration Time. 
 (C) Accept Subscriptions upon the due exercise of Rights pursuant to the Basic Subscription Privilege immediately upon
payment of the Subscription Price in accordance with the terms of the Subscription Rights Certificates, the Prospectus, and the Instructions for Use. You shall promptly deposit and hold all funds received in a special, segregated account for the
benefit of the Company. You shall remit to the Company on the next business day all funds received on the preceding business day in payment of the Subscription Price under the Basic Subscription Privilege (or, at the written direction of the
Company, you shall remit such funds to third parties within one business day of receipt of such direction); and you shall issue on the next business day certificates for Shares issuable with respect to Subscriptions under the Basic Subscription
Privilege that have been accepted on the preceding business day (or credit the Depository Trust Company’s nominee position with the Common Stock duly subscribed for pursuant to the Basic Subscription Privilege by book-entry transfer).

 (D) Accept Subscriptions upon the due exercise of Rights pursuant to the Over-Subscription Privilege
(including payment of the Subscription Price) on or prior to the Expiration Time of the Rights Offering in accordance with the terms of the Subscription Rights Certificates, the Prospectus, and the Instructions for Use. 
 (E) Within one business day of the Expiration Time, upon receipt by you of any Subscription Rights Certificates completed and endorsed for exercise and
payment of the Subscription Price, all in accordance with the terms of the Subscription Rights Certificates, the Prospectus, and the Instructions for Use, provide the Company with a tabulation of the aggregate number of shares of Common Stock
elected to be purchased by Eligible Holders pursuant to validly exercised Rights (and the aggregate exercise price therefor) and the aggregate number of shares of Common Stock not subscribed for by Eligible Holders (and the aggregate exercise price
therefor). 
 (F) Within two business days of the Expiration Time, upon receipt by you of any Subscription Rights Certificates completed and
endorsed for exercise and payment of the Subscription Price, all in accordance with the terms of the Subscription Rights Certificates, the Prospectus, and the Instructions for Use, calculate the number of Shares for which each Eligible Holder is
entitled to subscribe pursuant to the Over-Subscription Privilege. The Over-Subscription Privilege may be exercised only by Eligible Holders who exercised their Basic Subscription Privilege in full, and only up to the number of Shares for which such
Eligible Holders subscribed under their respective Basic Subscription Privilege. The Shares available pursuant to the Over-Subscription Privilege will be those that have not been subscribed and paid for pursuant to the Basic Subscription Privilege
(collectively, the “Remaining Shares”). If there are sufficient Remaining Shares to satisfy all additional subscriptions by holders exercising their rights under the Over-Subscription Privilege, each holder shall be allotted the number of
additional shares of Common Stock subscribed for, up to the number of Shares for which such holder subscribed under his Basic Subscription Privilege. If the aggregate number of shares of Common Stock subscribed for under the Over-Subscription
Privilege exceeds the number of Remaining Shares, the number of Remaining Shares allotted to each participant in the Over-Subscription Privilege shall be the product (rounded to the nearest whole number, with such adjustments as may be necessary to
ensure that the Company issues 7,082,687 Shares in the Rights Offering) obtained by multiplying the number of Shares such participant subscribed for under the Over-Subscription Privilege by a fraction the numerator of which is the number of
Remaining Shares and the denominator of which is the total number of Shares subscribed for under the Over-Subscription Privilege by participants in such Over-Subscription Privilege. Upon calculating the number of Shares to which each subscriber is
entitled pursuant to the Over-Subscription Privilege and the amount overpaid, if any, by each subscriber, you shall, by the close of business on the second business day following the Expiration Time, furnish a list of all such subscribers, Shares,
and overpayments to the Company. 
 (G) Promptly after expiration of the Rights Offering and after all pro rata allocations and
adjustments have been completed, remit to the Company (i) all funds received in payment of the Subscription Price for shares of Common Stock sold in the Rights Offering pursuant to the Over-Subscription Privilege and (ii) all Subscription
Rights Certificates. Promptly after expiration of the Rights Offering and after all pro rata allocations and adjustments have been completed, you shall issue certificates for Shares issuable with respect to Subscriptions under the
Over-Subscription Privilege that have been accepted (or credit the Depository Trust Company’s nominee position with the Common Stock duly subscribed for pursuant to the Basic Subscription Privilege and the Over-Subscription Privilege by
book-entry transfer) and refund payments to subscribers for Shares subscribed for but not allocated, if any. 

 (H) Subject to the next sentence and in accordance with the procedures set forth above, accept
Subscriptions from Eligible Holders whose Subscription Rights Certificates are alleged to have been lost, stolen, or destroyed upon receipt by you of an affidavit of theft, loss, or destruction and a bond of indemnity in form and substance
satisfactory to you, accompanied by payment of the Subscription Price for the total number of Shares Subscribed for. Upon receipt of such affidavit and bond of indemnity and compliance with any other applicable requirements, stop orders shall be
placed on said Subscription Rights Certificates and you shall withhold delivery of the Shares Subscribed for until after the Subscription Rights Certificates have expired and it has been determined that the Rights evidenced by the Subscription
Rights Certificates have not otherwise been purported to have been exercised or otherwise surrendered. 
 (I) Accept Subscriptions in
accordance with the procedures set forth above, without further authorization or direction from the Company, without procuring supporting legal papers or other proof of authority to sign (including, without limitation, proof of appointment of a
fiduciary or other person acting in a representative capacity), and without signatures of co-fiduciaries, co-representatives, or any other person: 
 (a) if the Subscription Rights Certificate is registered in the name of a fiduciary and is executed by, and the Shares are to be issued in the name of, such fiduciary; 
 (b) if the Subscription Rights Certificate is registered in the name of joint tenants and is executed by one of the joint tenants, provided the
certificate representing the Shares is issued in the names of, and is to be delivered to, such joint tenants; 
 (c) if the Subscription
Rights Certificate is registered in the name of a corporation and is executed by a person in a manner which appears or purports to be done in the capacity of an officer, or agent thereof, provided the Shares are to be issued in the name of such
corporation; or 
 (d) if the Subscription Rights Certificate is registered in the name of an individual and is executed by a person
purporting to act as such individual’s executor, administrator, or personal representative, provided the Shares are to be registered in the name of the subscriber as executor or administrator of the estate of the deceased registered holder and
there is no evidence indicating the subscriber is not the duly authorized representative that he purports to be. 
 (J) Refer to the Company
for specific instructions as to acceptance or rejection, Subscriptions received after the Expiration Time, Subscriptions not authorized to be accepted pursuant to this Paragraph 1, and Subscriptions otherwise failing to comply with the requirements
of the Prospectus and the terms and conditions of the Subscription Rights Certificates. 
 (K) Upon acceptance of a Subscription: 

(a) hold all monies received from the Eligible Holders’ exercise of their Rights under the Over-Subscription Privilege in a special, segregated
account for the benefit of the Company. You will not be obligated to calculate or pay interest to any holder or any other party claiming through a holder or otherwise. 
 Eligible Holders will be permitted to pay the Subscription Price for Shares with immediately available funds represented by cashier’s or certified check or wire transfer, but not by personal check. 

 (b) advise the Company daily (and more frequently during the week immediately preceding the Expiration
Time, if requested) by electronic mail or facsimile transmission to Mario Ferrucci III at              or              and John
Levat at              or             , and such other person or persons as the Company may request, as to the total number of
Shares Subscribed for and the amount of funds received. 
 2) You will follow your regular procedures to attempt to reconcile any
discrepancies between the number of Shares that any Subscription Rights Certificate may indicate are to be issued to a stockholder and the number that the Record Stockholders List indicates may be issued to such stockholder. In any instance in which
you cannot reconcile such discrepancies by following such procedures, you will consult with the Company for instructions as to the number of Shares, if any, you are authorized to issue. In the absence of such instructions, you are authorized not to
issue any Shares to such stockholder. 
 3) You will examine the Subscription Rights Certificates received by you as Subscription Agent to
ascertain whether they appear to you to have been completed and executed in accordance with the applicable Instructions for Use. In the event you determine that any Subscription Rights Certificate does not appear to you to have been properly
completed or executed, or where the Subscription Rights Certificates do not appear to you to be in proper form for Subscription, or any other irregularity in connection with the Subscription appears to you to exist, you will follow, where possible,
your regular procedures to attempt to cause such irregularity to be corrected. The Company shall have the absolute right to reject any defective exercise of rights or to waive any defects in exercise. You are not authorized to waive any irregularity
in connection with the Subscription, unless you shall have received from the Company the Subscription Rights Certificate which was delivered, duly dated and signed by an authorized officer of the Company, indicating that any irregularity in such
Subscription Rights Certificate has been cured or waived and that such Subscription Rights Certificate has been accepted by the Company. If any such irregularity is neither corrected nor waived, you will return to the Subscribing stockholder (at
your option by either first class mail under a blanket surety bond or insurance protecting you and the Company from losses or liabilities arising out of the non-receipt or nondelivery of Subscription Rights Certificates or by registered mail insured
separately for the value of such Subscription Rights Certificates) to such stockholder’s address as set forth in the Subscription any Subscription Rights Certificates surrendered in connection therewith and any other documents received with
such Subscription Rights Certificates, and a letter of notice to be furnished by the Company explaining the reasons for the return of the Subscription Rights Certificates and other documents. 
 4) Each document received by you relating to your duties hereunder shall be dated and time stamped when received. 
  

			
	5)  	  	(a) For so long as this agreement shall be in effect, the Company will reserve for issuance and keep available free from preemptive rights a sufficient number of Shares to permit the exercise
in full of all Rights issued pursuant to the Rights Offering. Subject to the terms and conditions of this agreement, you will request the Transfer Agent for the Common Stock to issue certificates evidencing the appropriate number of Shares as
required from time to time in order to effectuate the Subscriptions (or credit the Depository Trust Company’s nominee position with the Shares duly subscribed for by book-entry transfer).

 (b) The Company shall take any and all action, including without limitation obtaining the
authorization, consent, lack of objection, registration, or approval of any governmental authority, or the taking of any other action under the laws of the United States of America or any political subdivision thereof, to insure that all 

 
Shares issuable upon the exercise of the Rights at the time of delivery of the Subscription Rights Certificates therefor (subject to payment of the
Subscription Price) will be duly and validly issued and fully paid and nonassessable shares of Common Stock, free from all preemptive rights and taxes, liens, charges and security interests created by or imposed upon the Company with respect
thereto. 
 (c) The Company shall from time to time take all action necessary or appropriate to obtain and keep effective all registrations,
permits, consents and approvals of the Securities and Exchange Commission and any other governmental agency or authority and make such filings under federal and state laws which may be necessary or appropriate in connection with the issuance, sale,
transfer and delivery of Shares issued upon exercise of Rights. 
 6) If certificates representing Shares are to be delivered by you to a
person other than the person in whose name a surrendered Subscription Rights Certificate is registered, you will issue no certificate for Shares until the Subscription Rights Certificate so surrendered has been properly endorsed (or otherwise put in
proper form for transfer) and the person requesting such exchange has paid any transfer or other taxes or governmental charges required by reason of the issuance of a certificate for Shares in a name other than that of the registered holder of the
Subscription Rights Certificate surrendered, or has established to your satisfaction that any such tax or charge either has been paid or is not payable. 
 7) Should any issue arise regarding federal income tax reporting or withholding, you will take such action as the Company instructs you in writing. 
 8) The Company may terminate this agreement at any time by so notifying you in writing. Upon any such termination, you shall be relieved and discharged
of any further responsibilities with respect to your duties hereunder. Upon payment of all your outstanding fees and expenses, you will forward to the Company or its designee promptly any Subscription Rights Certificate or other document relating to
your duties hereunder that you may receive after your appointment has so terminated. Sections 10 and 12 of this agreement shall survive any termination of this agreement. 
 9) As agent for the Company hereunder you: 
 (a) shall have no duties or obligations other than those
specifically set forth herein or as may subsequently be agreed to in writing by you and the Company; 
 (b) shall have no obligation to issue
any Shares unless the Company shall have provided a sufficient number of certificates for such Shares; 
 (c) shall be regarded as making no
representations and having no responsibilities as to the validity, sufficiency, value, or genuineness of any Subscription Rights Certificates surrendered to you hereunder or shares of Common Stock issued in exchange therefor, and will not be
required to or be responsible for and will make no representations as to, the validity, sufficiency, value, or genuineness of the Rights Offering; 
 (d) shall not be obligated to take any legal action hereunder; if, however, you determine to take any legal action hereunder, and where the taking of such action might, in your judgment, subject or expose you to any expense or liability you
shall not be required to act unless you shall have been furnished with an indemnity satisfactory to you; 
 (e) in accordance with the
provisions hereof, may rely on and shall be fully authorized and protected in acting or failing to act upon any certificate, instrument, opinion, notice, 

 
letter, telegram, telex, facsimile transmission, or other document or security delivered to you and believed by you to be genuine and to have been signed by
the proper party or parties; 
 (f) shall not be liable or responsible for any recital or statement contained in the Prospectus or any other
documents relating thereto; 
 (g) shall not be liable or responsible for any failure on the part of the Company to comply with any of its
covenants and obligations relating to the Rights Offering, including without limitation obligations under applicable securities laws; 
 (h)
may rely on and shall be fully authorized and protected in acting or failing to act upon the written, telephonic, or oral instructions of the officers of the Company and in accordance with the provisions hereof with respect to any matter relating to
your acting as Subscription Agent covered by this agreement (or supplementing or qualifying any such actions) of officers of the Company; 
 (i) may consult with counsel satisfactory to you, including internal counsel, and the advice of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered, or omitted by you hereunder in
good faith and in accordance with the advice of such counsel; and 
 (j) are not authorized, and shall have no obligation, to pay any brokers,
dealers, or soliciting fees to any person. 
 10) Any instructions given to you orally, as permitted by any provision of this agreement,
shall be confirmed in writing by the Company as soon as practicable. You shall not be liable or responsible and shall be fully authorized and protected for acting, or failing to act, in accordance with any oral instructions which do not conform with
the written confirmation received in accordance with this section. 
 11) Whether or not any Subscription Rights Certificates are surrendered
to you, for your services as Subscription Agent hereunder, the Company shall pay to you compensation in accordance with the fee schedule attached as Schedule A hereto, together with reimbursement for reasonable out-of-pocket expenses, including
reasonable fees of and disbursements to counsel. All amounts owed to you hereunder are due upon receipt of the invoice. Delinquent payments are subject to a late payment charge of one and one half percent commencing forty-five days from the invoice
date. 
  

	 	12)	 (a) The Company agrees to indemnify you for and hold you harmless from and against any loss, liability, claim or expense (“Loss”) arising out of or in
connection with your performance of your duties under this agreement or this appointment, including the reasonable costs and expenses of defending yourself against any Loss or enforcing this agreement, provided, however, that such agreement to
indemnify does not extend to such costs, expenses, losses and damages incurred or suffered by you as a result of, or arising out of, your own gross negligence, intentional misconduct or bad faith or that of any employees, agents or independent
contractors used by you in connection with performance of your duties as Subscription Agent hereunder. You hereby agree to notify the Company promptly of the assertion of any claim against it in connection with the Rights Offering, and the Company
agrees to notify you promptly of the assertion of any claim against the Company in connection with the Rights Offering; provided, however, that your failure to so notify the Company shall not relieve the Company of any liability it may have under
this Section 12, except to the extent the Company 

	 	 
has been materially prejudiced by such failure. At the Company’s election, unless there is a conflict of interest, the defense on your behalf shall be
conducted by the Company’s counsel. In any action or proceeding, the defense of which the Company assumes, the Company shall not settle or compromise any such action or proceeding without your prior written consent (such consent not to be
unreasonably conditioned, withheld, or denied), unless the terms of the settlement or compromise include an unconditional release of you from all liability or loss arising out of such action or proceeding and impose no negative or affirmative
covenants on you. Anything in this agreement to the contrary notwithstanding, in no event shall you be liable for special, indirect, incidental or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even
if you have been advised of the likelihood of such damages and regardless of the form of action. 

  

	 	(b)	In the event any question or dispute arises with respect to the proper interpretation of this agreement or your duties hereunder or the rights of the Company or of any stockholders
surrendering Subscription Rights Certificates for Shares pursuant to the Rights Offering, you shall not be required to act and shall not be held liable or responsible for your refusal to act until the question or dispute has been judicially settled
(and you may, if you in your sole discretion deem it advisable, but shall not be obligated to, file a suit in interpleader or for a declaratory judgment for such purpose) by final judgment rendered by a court of competent jurisdiction, binding on
all stockholders and parties interested in the matter which is no longer subject to review or appeal, or settled by a written document in form and substance satisfactory to you and executed by the Company and each such stockholder and party. In
addition, you may require for such purpose, but shall not be obligated to require, the execution of such written settlement by all the stockholders and all other parties that may have an interest in the settlement. 

 The obligations of Company under this section shall survive the termination of this agreement. 
 13) If any provision of this agreement shall be held illegal, invalid, or unenforceable by any court, this agreement shall be construed and enforced as
if such provision had not been contained herein and shall be deemed an agreement among us to the full extent permitted by applicable law. 
 14) The Company represents and warrants that (a) it is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, (b) except as described in the Prospectus, the making and
consummation of the Rights Offering and the execution, delivery, and performance of all transactions contemplated thereby (including without limitation this agreement) have been duly authorized by all necessary corporate action and will not result
in a breach of or constitute a default under the certificate of incorporation or bylaws of the Company or any indenture, agreement or instrument to which it is a party or is bound, (c) this agreement has been duly executed and delivered by the
Company and constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, (d) the Rights Offering will comply in all material respects with all applicable requirements of law and
(e) to the best of its knowledge, there is no litigation pending or threatened as of the date hereof in connection with the Rights Offering. 

 15) All notices, demands and other communications given pursuant to the terms and provisions hereof shall
be in writing, shall be deemed effective on the date of receipt, and may be sent by facsimile, electronic mail, overnight delivery services, or by certified or registered mail, return receipt requested to: 
  

			
	 If to the Company:
	  	 with an additional copy to:

		
	PGT, Inc.	  	Skadden, Arps, Slate, Meagher & Flom LLP
	1070 Technology Drive	  	One Rodney Square
	North Venice, FL 34275.	  	PO Box 636
	Attn: Mario Ferrucci III, Esq.	  	Wilmington, DE 19899
	Tel: (941) 480-1600	  	Fax: (302) 651-3001
	Fax: (941) 486-8634	  	Attn: Robert B. Pincus, Esq.

  

			
	 If to The Bank of New York Mellon:
	  	 with an additional copy to:

		
	 The Bank of New York Mellon
	  	The Bank of New York Mellon
	 c/o Mellon Investor Services
	  	c/o Mellon Investor Services
	 480 Washington Boulevard
	  	480 Washington Boulevard
	 Jersey City, N.J. 07310
	  	Jersey City, N.J. 07310
	 Attn: Relationship Administrator
	  	Attn: Legal Department
	 Tel:
	  	Tel: 201-680-2198
	 Fax:
	  	Fax: 201-680-4610

 16) In the event that any claim of inconsistency between this agreement and the terms of the
Rights Offering arise, as they may from time to time be amended, the terms of the Rights Offering as set forth in the Prospectus, the Subscription Rights Certificate, and the Instructions for Use shall control, except with respect to the duties,
liabilities and rights, including compensation and indemnification of you as Subscription Agent, which shall be controlled by the terms of this agreement. 
 17) This agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to conflict of laws rules or principles, and shall inure to the benefit of and be
binding upon the successors and assigns of the parties hereto; provided that this agreement may not be assigned by any party without the prior written consent of all other parties. 
 18) No provision of this agreement may be amended, modified or waived, except in a written document signed by both parties. 
 19) The Company shall be charged for certain reasonable expenses advanced or incurred by you in connection with your performance of your duties
hereunder. Such charges include, but are not limited to, stationery and supplies, such as transfer sheets, envelopes, and paper stock, as well as any disbursements for telephone, mail insurance, electronic document creation and delivery, link-up
charges from Automatic Data Processing Inc. and tape charges from The Depository Trust Company. While you endeavor to maintain such charges (both internal and external) at competitive rates, these charges will not, in all instances, reflect actual
out-of-pocket costs, and in some instances may include reasonable handling charges to cover internal processing and use of your billing systems. 

 Please acknowledge receipt of this letter and confirm your agreement concerning your appointment as
Subscription Agent, and the arrangements herein provided, by signing and returning the enclosed copy hereof, whereupon this agreement and your acceptance of the terms and conditions herein provided shall constitute a binding agreement between us.

  

			
	Very truly yours,
	
	 PGT, INC.

		
	 By:
	 	  

	 Name:
	 	Mario Ferrucci III
	 Title:
	 	Vice President, General Counsel, and Secretary

  

			
	Accepted as of the date above first written:
	
	THE BANK OF NEW YORK MELLON
	AS SUBSCRIPTION AGENT
		
	By:	 	  

	Name:	 	
	Title:Asset Purchase Agreement, dated March 15, 2008

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 This Agreement is entered into on the 15th day of March, 2008, between 2640 W. Woodland,
Inc., a corporation organized under the laws of California, with its principal office located at 2640 W. Woodland, Anaheim, California (“Woodland” and/or “Seller”), and Glenn Smith, the sole shareholder of Woodland
(“Smith”) , and VCG-IS, LLC, a limited liability company organized under the laws of Colorado HANDWRITTEN AND INITIALED: MO /GS CALIFORNIA, a subsidiary of VCG Holding Corp., a Colorado corporation (“Buyer”).

 In consideration of the mutual covenants of the parties, Seller, Smith, and Buyer agree: 
  

	1.	Sale of Business. 

 Seller shall sell, assign, and deliver to Buyer
and Buyer shall purchase and accept, on the Closing Date, all the assets and properties owned by or in which Woodland has any right, title, or interest, inchoate or otherwise, of every kind and description, wherever located, including all property
tangible or intangible and real or personal, good will, processes, designs, claims, contract rights, the right to use the name Imperial Showgirls, or any similar name or names in connection with the adult cabaret business, and all other names,
trademarks, or copyrights used by Seller in connection with its business or products (hereinafter referred to as the Business), all as more specifically described and set forth in Exhibit 1, which is attached and incorporated by reference.
Notwithstanding this provision, those specific assets identified in Exhibit “1(a) ,” Excluded Assets, shall remain the property of the Seller and not be transferred to the Buyer as part of this transaction. 
  

	2.	Partial Payment at Closing with Post-Closing Adjustment to Purchase Price. 

 (a) The Purchase Price for the assets purchased in Section 1 above (Purchased Assets) shall be calculated for the trailing twelve (12) months prior to the last day of the month proceeding the closing month. The formula for
computing the Purchase Price shall calculated as set forth in detail in Exhibit 2(a), Net Income Statement. 
 (b) The Purchase Price to be paid to Seller by
Buyer as set forth in (a) above shall be adjusted as provided herein to reflect changes in the value and content of the Purchased Assets which might be reflected on the Balance Sheet (Exhibit 2(b)) and the net income stated in the Net Income
Statement and shall be paid in the following manner: 
 (1) Initial Payment. At the Closing, Buyer shall pay to Seller an amount
equal to eighty-five (85%) percent of the Purchase Price as determined in (a) above (the Initial Payment) by wire transfer of immediately available funds to Woodland, or as otherwise directed by Seller in writing to Buyer (the Payment
Account). 
 (2) Final Payment. Within fifteen (15) business days after the Closing Date, Seller shall prepare and deliver to
Buyer a Final Closing Balance Sheet and Final Closing Net Income 

  

			
	Kdills/vcg/imperial/apa.doc	  	
	3/7/08 - MAG - V. 1	  	Page Initialed: MO, GS

 1 

 
Statement prepared in the same manner as set forth in Exhibits 2(a) and 2(b) (Final Statements). Subject to subsection (c) hereof, within ten
(10) business days of delivery of the Final Statements to Buyer, Buyer shall pay to Seller (the date of payment being hereinafter referred to as the Final Payment Date), by wire transfer of immediately available funds to the Payment Account or
as otherwise directed by Seller in writing to Buyer, an amount equal to the Purchase Price less the Initial Payment (the Final Payment), together with interest thereon as hereinafter specified, or Seller shall pay to Buyer by wire transfer of
immediately available funds to an account as directed by Buyer in writing to Seller, an amount equal to the excess of the amount paid to Seller pursuant to (b)(1) above over the Purchase Price, together with interest thereon as hereinafter
specified, as the case may be. The Final Payment or the excess amount, as the case may be, shall bear interest at the rate of ten (10%) percent per annum from the Closing Date until paid. 
 (c) If Buyer shall object to the Final Statements as delivered to it, Buyer shall give written notice of its objections, setting forth in reasonable detail the
nature and basis for such objections (an Objection Notice), to Seller within five (5) business days of Buyer’s receipt of the Final Statements and may withhold payment of only that portion of the Final Payment objected to, the balance of
which, to the extent paid, shall bear interest at the rate specified in (b)(2) above. Within five (5) business days after Seller’s receipt of an Objection Notice, Seller and Buyer shall meet and attempt to resolve any disputes reflected in
the Objection Notice. If such disputes are not resolved within ten (10) business days after Seller’s receipt of the Objection Notice, Seller and Buyer shall, prior to the expiration of said ten-day period, each select a certified public
accounting firm (the Selected Firms) to discuss the Objection Notice. If the Selected Firms cannot reach agreement as to the Final Statements within thirty (30) business days after referral of the Final Statements resolving all issues raised in
the Objection Notice to them, the two Selected Firms shall forthwith refer the dispute to a certified public accounting firm for resolution, such firm to resolve all disputes raised by the Objection Notice within thirty (30) business days after
such disputed items are referred to it. Each party shall pay the costs of any accounting firm chosen by it and shall bear equally the costs of any third selected accounting firm. All decisions agreed to by both Selected Firms or the decision of the
third accounting firm as the case may be shall be conclusive and binding upon Seller and Buyer. The balance of the final payment, or the excess due from Sellers, as the case may be, shall be paid, together with interest thereon at the rate specified
in (b)(2) above, within five (5) business days after the final decision of the Selected Firms or the third accounting firm, whichever occurs first. 
 (d) Buyer and its designees shall have the right to participate in the preparation of the Final Statements cited in (c) above. Sellers shall give Buyer and its designees at least five (5) business days advance written
notice prior to the preparation of the aforementioned Final Statements. Sellers shall allow Buyer and its designees, the Selected Firms and any accounting firm designated by the Selected Firms to resolve a dispute access to all audit work papers all
underlying documentation therefor relating to the Final Statements. 
  

			
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	3.	Instruments of Transfer. 

 The sales, assignments, and deliveries to
be made to Buyer pursuant to this agreement shall be effected by deeds, bills of sale, endorsements, checks, and other instruments of transfer in such form as Buyer shall reasonably request. Buyer shall prepare appropriate forms of instruments of
transfer and conveyance in conformity with this agreement and shall submit them to Seller for examination at least five (5) business days in advance of the closing date. Any time and from time to time after the Closing Date, on Buyer’s
request, Seller will do, execute, acknowledge, and deliver all such further acts, deeds, assignments, transfers, and powers of attorney as may be required in conformity with this agreement for the adequate assigning, transferring, granting, and
confirming to Buyer of the assets and properties sold to Buyer. 
  

	4.	Assignment of Contract Rights. 

 (a) Buyer will not assume any
liabilities, contracts, licenses, leases, commitments, or sales or purchase orders of Seller except as shown on Exhibit 4(a) and specifically agreed to by Buyer, as evidenced by Buyer’s signature on said Exhibit 4(a) (Contract Rights).

 (b) If any Contract Rights accepted by Buyer under this Agreement may not be assigned without the consent of the other party thereto, Seller will use
their best efforts to obtain the consent of the other party to the assignment. If any such consent cannot be obtained, the Purchase Price under this Agreement shall be adjusted downward by the amount allocated to the affected Contract Rights in
Exhibit 4(a). 
 (c) In addition to the above, the Buyer must be able to have the lease dated August 15, 1997 between Mohammad Z. Johar and Glenn Smith
(hereinafter Lease) assigned to it on terms that are acceptable to Buyer in its sole and absolute discretion as a condition precedent to the obligation to Closing. Notwithstanding the above, Buyer will have at least 16 years on the Lease post
closing. 
 (d) Seller will cooperate with Buyer in obtaining the consents and modifications of the Agreement described in this Section 4 accepted by
the Buyer, including the Lease. 
  

	5.	Due Diligence. 

 (a) The Buyer shall have thirty (30) business
days (the Due Diligence Period) after delivery of this executed Agreement and all Exhibits hereto, which Exhibits will be delivered to Buyer no later than fifteen (15) business days after execution of this Agreement, to perform its due
diligence as regarding this Agreement. During the Due Diligence Period, the Buyer will be allowed to place in the Business at its expense one of its employees to observe and inspect the operation of the Business. 
 (b) On or before the end of the Due Diligence Period, the Buyer shall deliver to Seller a written notice of one of the following: 
  

			
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 (1) Accepting the Agreement, as executed; or 
 (2) Stating its additional requirements in order for it to close, which requirements will be accepted or rejected by Seller, or waived by the Buyer,
within ten (10) business days of such notice, or 
 (3) Reject this Agreement, in which case this Agreement shall be null and void.

 (c) During the Due Diligence Period, Seller will allow Buyer’s representatives full and complete access to all of Seller’s business and records,
operational manuals and procedures, personnel and professionals in order to allow Buyer to fully explore and review the Business. 
 (d) If Buyer accepts the
Agreement on or before the end of the Due Diligence Period, it will be allowed to continue to maintain, at its expense, its employee on-site at the Business with full access to all aspects of the Business for the purposes as set forth in
(a) above. 
 (e) Notwithstanding anything contained herein to the contrary, this Section shall be subject to Buyer’s obligation to close as set
forth in Sections 8 and 10, the Buyer’s obligation to close being absolutely contingent upon the satisfactory compliance with the terms of those Sections. 
 (f) If the final adjusted Purchase Price changes more than 10% from the amount set forth in Exhibit 2(a), Net Income Statement, as the year end for 2007 as determined on the final Net Income Statement, either party may elect to terminate
this deal by giving written notice prior to the Closing. 
  

	6.	Books and Records. 

 Seller shall have the right to retain minute
books, stock books, and other corporate records of Seller having exclusively to do with a corporate organization or capitalization. Buyer shall have reasonable access to and the right to make extract copies of all books, records, and documents of
the Seller during the Due Diligence Period set forth in Section 5 and the right to retain the extracted documents after Closing. 
  

	7.	Waiver of Compliance With Bulk Sales Laws. 

 Buyer hereby waives its
right to require compliance with any bulk sales or similar laws and in consideration therefor, Seller and Smith agree that Seller and Smith shall indemnify and save and hold Buyer harmless from any liabilities (including without limitation statutory
penalties, damages or expenses (including reasonable attorneys’ fees), arising from the failure of Buyer or Seller to comply with any bulk sales or similar law applicable to the transactions contemplated by this Agreement; provided, however,
that Buyer shall not have any claim against Seller under this Section 7 with respect to any assumed Contract Rights under Section 4 hereof (but only to the extent of the assumed Contract Rights). 
  

			
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	8.	Detailed Closing Procedures and Deliveries. 

 8.1 Closing/Closing Date. Subject to fulfillment of the conditions to Closing specified in this agreement and pursuant to the other terms and conditions hereof, the Closing of the transaction provided for in this Agreement (the
Closing) shall take place at the offices of NOC Business Services, at 1169 E. Ash Avenue, Fullerton, CA 92831 within 10 days, but no later than July 31, 2008 , or at such other date and time as may be agreed upon in writing by the parties
hereto (the Closing Date), such Closing to be effective as of the close of business on the Closing Date. 
 8.2 Conditions to Closing. The
obligations of Buyer to purchase the Purchased Assets and to assume, pay, perform and discharge, when due, the assumed Contract Rights, and of Seller to sell, transfer and assign the Purchased Assets as provided in this Agreement are subject to the
satisfaction, at the Closing (except where specifically required or permitted to be satisfied prior to or after the Closing), of all of the respective obligations of Buyer and Seller set forth below: 
 (a) Delivery of Purchased Assets to Buyer. Seller shall deliver the Purchased Assets, by duly executed Bill of Sale, Assignment and Assumption Agreement and
other appropriate assignments or other instruments of transfer and documents which conform to the requirements of the Agreement, including executed counterparts of all novation agreements with the United States government, its agencies and
instrumentalities, and any other persons requiring them. Simultaneously with the consummation of the transfer, Seller, through its officers, agents, and employees, will put Buyer into full possession and enjoyment of all Purchased Assets to be
conveyed and transferred by this Agreement. 
 (b) Delivery of Purchase Price and Assumption of Liabilities. Buyer shall deliver to Seller
immediately available funds in the amount of the Purchase Price, and a duly executed Assignment and Assumption Agreement and other appropriate documents which conform to the requirements of the Agreement. 
 (c) Certificate from Seller. Seller shall deliver to Buyer a certificate, dated the Closing Date, and signed by a duly authorized officer of Seller certifying
that: 
 (1) The representations and warranties made by Seller herein or in any Exhibit or Schedule hereto remain true in all material
respects on the Closing Date as though made on such date except for changes contemplated by the Agreement; 
 (2) Seller have performed
and complied in all material respects with all agreements, covenants and conditions required by the Agreement to be performed or complied with by Seller on or prior to the Closing; 
 (3) No litigation, proceedings or other actions are pending against or affecting the Seller which have resulted or reasonably could be expected to
result either in an action to enjoin or the prevention of the consummation of the transactions contemplated by the Agreement; 
  

			
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 (4) Seller have received all consents required by the federal government, any state or local
governmental body or any foreign government to the transactions contemplated by the Agreement, and such consents are in full force and effect; and 
 (5) That from the date of this Agreement through the Closing Date, Seller have managed and conducted the Business in the ordinary course as heretofore managed and conducted as though no change of ownership of the Business were
contemplated, and has used commercially reasonable efforts to preserve all employee, vendor and customer relationships. 
 (d) Certificate of
Buyer. Buyer shall deliver to Seller a certificate, dated the Closing Date, signed by a duly authorized officer of Buyer certifying that: 
 (1) The representations and warranties made by Buyer herein or in any Exhibit or Schedule hereto remain true in all material respects on the Closing Date as though made on such date except for changes contemplated by the Agreement;

 (2) Buyer has performed and complied in all material respects with all agreements, covenants and conditions required by the Agreement
to be performed or complied with by Buyer on or prior to the Closing; 
 (3) No litigation, proceedings or other actions are pending
against or affecting the Buyer which have resulted or reasonably could be expected to result either in an action to enjoin or the prevention of the consummation of the transactions contemplated by the Agreement; and 
 (4) Buyer has received all consents required by the federal government, any state or local governmental body or any foreign government to the
transactions contemplated by the Agreement, and such consents are in full force and effect. 
 (e) Intentionally omitted. 
 (f) Corporate Resolutions. Buyer and Seller shall deliver to each of the other parties hereto copies of their respective corporate resolutions, certified by
the appropriate corporate officer, authorizing the execution and delivery of the Agreement and the consummation of the transactions contemplated hereby. 
 (g) Assignments and Guarantees. Sellers shall deliver all assignments and original copies of any guarantees or warranties relating to the Purchased Assets. 
 (h) Plans, Etc. Sellers shall deliver any and all plans, permits, tests, certificates or approvals as required by this Agreement. 
 (i) Assumption of Contract Rights. Buyer shall execute and deliver to Seller the Assignment and 

  

			
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Assumption Agreement required by this Agreement and other assumption instruments which conform to the requirements of the Agreement. 
 (j) Transfer of Licenses. Seller shall, to the extent permitted by law, transfer to Buyer all Licenses necessary for the continued conduct of the Business.

 (k) Other Agreements. Buyer and Seller shall enter into such other agreements, or execute and deliver such documents or items, as may be
contemplated by the Agreement to effect the transactions contemplated hereby. 
 (l) Government Consents. Buyer shall have received any
governmental consents required to be obtained pursuant to the Agreement and necessary to operate the Business in the same manner as operated by the Seller prior to Closing. 
  

	9.1	Representations of Seller and Smith. 

 Seller and Smith represent,
warrant, and agree that to the Seller’s and Smith’s the following is true and correct: 
 (a) Woodland is a corporation duly organized,
existing, and in good standing under the laws of California, and is authorized and entitled to carry on its business in California. Woodland has no subsidiaries. Its capital stock authorized and outstanding consists of shares of common stock, of
which all shares are owned by Smith. The execution and the delivery of this agreement by Woodland, and the consummation of the transactions contemplated by this Agreement, have been duly authorized by its board of directors and by Smith, its sole
shareholder. Seller has full power and authority to enter into this Agreement and to carry out all the terms and provisions hereof to be carried out by it, and all authorizations and consents necessary for the execution and delivery of this
Agreement by it have been given. This Agreement, assuming due authorization, execution, and delivery by the other parties hereto, constitutes a legal, valid, and binding agreement of Seller, enforceable against Seller in accordance with its terms
(subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, and similar laws affecting creditors, rights generally from time to time in effect and to equitable principles limiting the availability of the remedy of
specific performance). 
 (b) The 2007 Tax Return and the financial statements of Woodland delivered for review by Buyer during the course of the
negotiations and Due Diligence Period regarding this Agreement, fairly reflect the financial position of Woodland as of the date of those periods and the result of operations during those periods. 
 (c) Seller has good and marketable title are free and clear of all mortgages, liens, and encumbrances to all of the property set forth and described in Exhibit 1,
which is attached and incorporated by reference. 
 (d) Woodland is not a party to any employment agreement, labor union agreement, agreement for the

  

			
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future purchase of materials, supplies, or equipment, sales agreement, pension, profit-sharing, or retirement plan or agreement, distributorship or sales
agency agreement, or lease agreement that relates to any period beyond the Closing Date, whether written or oral. 
 (e) To Seller and Smith’s
knowledge, Woodland enjoys a good relationship with all of its vendors and licensing authorities and local law enforcement agencies, and there have been no significant difficulties experienced that would indicate that this good relationship will not
continue past the Closing Date. To Seller and Smith’s knowledge, Seller does not have, nor has Seller ever had, any agreement, arrangement, or understanding with any of the above with respect to special allowances, preferential or special
treatment, and nothing has been done or said by Seller to cause any of the above to expect any such special conditions as a prerequisite for its continued operation of the Business. 
 (f) To Seller’s and Smith’s knowledge, Woodland is not in default under any contract, agreement, lease, or other document to which it is a party, and has complied with all laws, regulations, and
ordinances applicable to its business to the date of this agreement. 
 (g) Since the date of the Tax Return for 2007 and Balance Sheet set out in
Exhibit 2(b), Woodland has not issued any stock, bonds, or other corporate securities, incurred any obligations or liability except current liabilities in the ordinary course of business, declared or made any payment or distribution to stockholders,
purchased or redeemed any shares of capital stock, mortgaged or pledged any of its assets, tangible or intangible, sold or transferred any assets or canceled any debts or claims except in the ordinary course of business, sold, assigned, or licensed
any trademarks or other tradenames, suffered any extraordinary losses or waived any rights except in the ordinary course of business, or entered into any other transaction except in the ordinary course of business. 
 (h) To the Seller and Smith’s knowledge, since the date of the Tax Return for 2007 and Balance Sheet set out in Exhibit 2(b), there has been no substantial
change in the financial policies, account relations, or marketing activities of Woodland or the Business. 
 (i) Intentionally omitted. 
 (j) Since the date of the Tax Return for 2007 and Net Income Statement as set out in Exhibit 2(a), there has been no substantial loss of income in the Business.

 (k) Woodland, as of the date hereof, has timely and accurately filed all federal, state, foreign and local tax returns and reports required to be
filed by it prior to such date, and has timely and accurately paid or made adequate provision for payment of any such taxes. Woodland has collected or withheld all amounts required to be collected or withheld by it for any taxes and all such amounts
have been paid to the appropriate governmental agencies or reserved for future payment when due. There are, and on the Closing Date will be, no due and unpaid taxes, additions to tax, penalties, or interest payable by Woodland. Unpaid taxes not yet
due will be accrued on Woodland’s books as of the Closing Date. Woodland is in compliance with, and its records contain all information and documents necessary to comply with, all applicable information reporting and tax withholding
requirements. The Balance Sheet 

  

			
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set forth in Exhibit 2(b) shall fully and properly reflect, as of the date thereof, the liabilities for all accrued taxes, additions to tax, penalties and
interest of Woodland.Woodland is not, nor will it become, subject to any additional taxes, interest, penalties or other similar charges as a result of filing or failing to file timely or accurately, as required by applicable law, any tax return or
to pay timely any amount required to be paid with respect thereto, including, without limitation, any such taxes, interest, penalties or charges resulting from the obtaining of an extension of time to file any return or to pay any tax. No
assessments or notices of deficiency or other communications have been received by Woodland with respect to any such return. Seller and Smith agree to be jointly and severally liable to hold Buyer harmless from the payment of any taxes, interest,
penalties or other charges due or arising from its operations of the Business through the Closing Date. 
  

	9.2	Buyer’s Representations and Warranties. 

 Buyer hereby
represents and warrants to Seller that the following is true and correct: 
 (a) Buyer is a limited liability company duly organized, validly existing
and in good standing under the laws of Colorado, with full corporate power to enter into, and to perform its obligations under, the Agreement. 
 (b) The execution, delivery and performance of the Agreement by Buyer have been duly authorized by all necessary action and do not, and will not, violate or conflict with the provisions of the Buyer’s Articles of Organization or
Operating Agreement or the provisions of any indenture, agreement, or other instrument to which Buyer is a party or by which any of its property is bound. The Agreement constitutes a legal, valid and binding obligation of Buyer. 
 (c) Buyer has not engaged or otherwise used the services of any broker or finder in connection with the Agreement or the transactions contemplated hereby which in
any manner shall obligate Seller for any such costs and Buyer agrees to indemnify and hold harmless Seller and Smith from and against any liability for any fee, compensation, commission or expense (including attorneys’ fees) arising out of any
claim by any person acting or claiming to act on behalf of Buyer for fees, compensation, commission or expense with respect to the Agreement or the transactions contemplated hereby. 
 (d) Intentionally omitted. 
 (e) There is no action, arbitration, suit, notice, order, or legal, administrative or
other proceeding before any court or governmental agency, authority or body pending or, to Buyer’s knowledge, threatened against or affecting Buyer which would prevent or interfere with the transactions contemplated by this Agreement.

 (f) Buyer agrees to undertake and complete all of its due diligence in connection with the purchase of the assets and assumption of specified liabilities
of the Seller and will notify Seller in writing if it has not been provided access to any books, records and agreements of every kind and nature that it deems material to the closing of this transaction. Buyer will have conducted an independent
investigation of all 

  

			
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facts it deems material to this transaction prior to the Closing Date and agrees to have all of the records reviewed by the accountants and/or attorneys of
its choice. No representations or promises of any kind or nature have been made by Seller, or any agent or representative of Seller, other than those representations and promises expressly set forth in this agreement. Buyer has not relied upon any
representations of Seller, or any of Seller’s agents, in connection with the execution of this agreement or the decision to enter into this agreement other than the those expressly set forth in this agreement. 
  

	9.3	Indemnification. 

 (a) Indemnity by Seller and
Smith. Seller and Smith shall jointly and severally indemnify, defend and hold harmless Buyer against and in respect of any and all obligations including interest, penalties and reasonable attorneys’ fees, that Buyer shall incur or suffer,
which arise or result from, or relate to: 
 (1) Any obligations incurred prior to the Closing; 
 (2) Any breach by the Seller of any of its representations or warranties contained in the Agreement, or the failure of the Seller to perform any covenant
or agreement contained in the Agreement, or in any schedule, certificate exhibit or other instrument furnished or to be furnished by Seller under the Agreement; and 
 (3) Any and all claims of whatever nature, asserted (with or without the commencement of legal action) against Buyer with respect to the Purchased Assets. 
 (b) Indemnity by Buyer. Buyer shall indemnify, defend and hold harmless Seller and Smith against and in respect of any and all Liabilities, including interest, penalties and reasonable attorneys’ fees,
that Seller and Smith shall incur or suffer, which arise or result from, or relate to 
 (1) Any obligations incurred after the Closing;

 (2) Any breach by Buyer of any of its representations and warranties contained in the Agreement or in any schedule, certificate, exhibit or
other instrument furnished or to be furnished by it under the Agreement or the failure of the Buyer to perform any covenant or agreement contained in the Agreement; or 
 (3) Any and all claims, of whatever nature, asserted (with or without the commencement of legal action) against Seller with respect to the Contract Rights assumed by Buyer pursuant to Section 4. 
  

	10.	Conditions Precedent to Buyer’s Obligations. 

 The obligations
of Buyer under this Agreement are conditioned on the following all having occurred on or before the Closing Date: 
  

			
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 (a) All actions, proceedings, instruments, and documents required of Seller under this Agreement shall be in a form
approved by counsel for Buyer, provided that such approval shall not be unreasonably withheld. 
 (b) The representations and warranties made by Seller
in this Agreement shall be substantially correct on the Closing Date, except as affected by transactions contemplated in this Agreement and changes occurring in the ordinary course of business, with the same force and effect as though the
representations and warranties had been made on the Closing Date. 
 (c) The instruments executed and delivered to Buyer by each of Seller pursuant to
this Agreement are valid in accordance with their terms and effectively vest in Buyer good and marketable title to the assets and business as contemplated by this Agreement, free and clear of any liabilities, obligations, and encumbrances, except
those liabilities and obligations expressly assumed by Buyer as provided in this Agreement. 
 (d) Buyer has received all required and necessary permits and
licenses to operate the Business in the same manner as prior to the Closing satisfactory to the Buyer, at its sole and absolute discretion, including but not limited to, the right and privilege to operate an adult sexually oriented business as that
term is defined in accordance with federal, state, county and city statutes, laws, ordinances and regulations without limitations other than those imposed of the Business prior to the Closing. 
 (e) The Buyer has received all necessary and required assignments and documents satisfactory to the Buyer, in its sole and absolute discretion, to the assumption and
assignment of the Lease. 
 (f) Buyer’s obligation to close shall be contingent upon Buyer’s obtaining satisfactory financing, in the Buyer’s
sole and absolute discretion. Buyer must notify the Seller in writing of its inability to obtain satisfactory financing no later than ten (10) days before the Closing Date or this contingency shall be automatically removed. 
  

	11.	Risk of Loss. 

  

	(a)	The risk of loss of the Purchased Assets prior to the Closing shall remain with the Seller. 

  

	(b)	In the event of loss prior to the Closing: 

 (1) If there
occurs a material loss of the Purchased Assets as determined in the Buyer’s sole and absolute discretion; or 
 (2) If there occurs a
material change in the Business determined in the same manner as set forth in (1) above, 
 the Buyer shall have the right to terminate this Agreement
and neither the Buyer nor the Seller shall have any further obligations hereunder. In such event, the Buyer shall immediately notify the Seller of 

  

			
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its intention not to proceed. 
  

	12.	Cooperation of Major Shareholder of Woodland. 

 Seller shall arrange
for Glenn Smith, for a period of one hundred twenty (120) days after the Closing, to work with the Buyer in the transition of the Business to the Buyer, at no expense to the Buyer. Glenn Smith will make himself available, on a part-time basis,
on reasonable notice, to perform services comparable in scope and nature to those that Glenn Smith has previously performed for the Business. 
  

	13.	Covenant Not To Compete. 

 Seller will obtain Glenn Smith’s
execution of the Covenant Not To Compete as set forth in Exhibit 13. 
  

	14.	Expenses of Negotiation and Transfer. 

 Each party shall pay the
party’s own expenses, taxes, and other costs incident to or resulting from this Agreement, whether or not the transactions contemplated hereby are consummated. The costs of Seller shall include the preparation of documents of transfer and
documentary stamp taxes, if any. Buyer’s costs shall include fees for the filing or recording of instruments of transfer, if any. 
  

	15.	Notices. 

 Any notice to be given under this Agreement shall be
given in writing and delivered personally or by registered or certified mail, postage prepaid, as follows: 
  

	 	(a)	If to Buyer: 

 Troy Lowrie 
 Brent Lewis 
 VCG Holding Corp. 
 390 Union Blvd., Suite 540 
 Lakewood, CO
80228 
 With copies to: 
 Mike Ocello 
 1401 Mississippi Avenue #10 
 Sauget, IL 62201 
 Martin A. Grusin 
 780 Ridge Lake Blvd., Suite 202 
 Memphis,
TN 38120 
 Facsimile: 901-682-3590 
  

			
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	 	(b)	If to Seller: 

 Glenn Smith 
 1171 E. Ash Ave. 
 Fullerton, CA 92831

 With copies to: 
 David J. Harter 
 Law Offices of David J. Harter, APC 
 13681 Newport Ave., Suite 8-608 
 Tustin, CA
92780 
  

	16.	Entire Agreement. 

 This instrument contains the entire agreement
between the parties with respect to the transaction contemplated. It may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

	17.	Confidentiality and Nondisclosure. 

 All confidential information
which shall have been furnished or disclosed by Buyer or Seller to the other pursuant to this Agreement shall be held in confidence, and shall not be disclosed to any person other than their respective employees, directors, legal counsel,
accountants or financial advisors, with a need to have access to such information, except for any notices required to be given by the Buyer as a result of its public ownership status. 
  

	18.	Venue/Jurisdiction. 

 This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of California. The parties agree that Anaheim, California and the federal and state courts located therein shall be the exclusive venue for any action arising out of or relating to this Agreement and
each party agrees to the personal jurisdiction of such courts. 
  

	19.	Attorney Fees. 

 Should either party be required to engage an
attorney to enforce this Agreement the prevailing party shall receive all reasonable costs of enforcement, including, but not limited to a reasonable attorney’s fee. 
  

			
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 In witness whereof the parties have executed this agreement at Anaheim, California on the day and year first above
written. 
  

			
	2640 W. Woodland, Inc.
		
	By:	 	/s/ Glenn Smith
	Its:	 	Pres.
		
	By:	 	/s/ Glenn Smith
		 	Glenn Smith
	
	VCG-IS, LLC
		
	By:	 	/s/ Micheal Ocello
	Its:	 	Vice President

  

			
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