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To the CITY: City Administrator City of Ramsey Municipal Center 15153 Nowthen Boulevard N.W. Ramsey, MN 55303 With a Copy to: William K. Goodrich 2140 Fourth Avenue North Anoka, MN 55303 To PERMIT HOLDER OR INDIVIDUAL: Daniel W. Karst, Jr. Danny's Tranny's, Inc. Basalt Street N.W. Ramsey, MN 55303 Change of address by either party shall be by notice given to the other in the same manner as above specified. 4. ~Defens~, If any action or proceeding shall be brought or asserted against the CITY in respect of which indemnity may be sought from PERMIT HOLDER and/or INDIVIDUAL, the CITY shall promptly notify PERMIT HOLDER and/or INDIVIDUAL in writing, and PERMIT HOLDER and/or INDIVIDUAL shall assume the defense thereof, including the employment of counsel and the payment of all expenses. The CITY shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be the expenses of the CITY unless the named parties to any such action or proceeding (including any impleaded parties) include both the CITY and PERMIT HOLDER and/or INDIVIDUAL, and the CITY shall have been advised by counsel that there may be one or more legal defenses available to the CITY which are different from or additional to those available to PERMIT HOLDER and/or INDIVIDUAL (in which .case, if the CITY notifies PERMIT HOLDER and/or INDIVIDUAL in writing that the CITY elects to employ separate counsel at the expense of PERMIT HOLDER and/or INDIVIDUAL, PERMIT HOLDER and/or INDIVIDUAL shall not have the right to assume the defense of such action or proceeding on behalf of the CITY, it being understood, however, that PERMIT HOLDER and/or INDIVIDUAL shall not, in connection with any one such actions or proceeding or separate but substantially similar or related actions or proceeding in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate f'n'm of attorneys at any time for the CITY, which f'n'm shall be designated in writing by the CITY.) PERMIT HOLDER and/or INDIVIDUAL shall not be liable for any settlement of any such action or proceeding effected without its written consent, but if settled with its written consent, or if there be a final judgment for the plaintiff in any such action or proceeding, PERMIT HOLDER and/or INDIVIDUAL agrees to indemnify and hold harmless the CITY from and against any loss or liability by reason of such settlement or judgment_ 5. Governing Law. This Agreement shall be construed, performed and enforced in accordance with Minnesota law. 6. Binding. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.