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CONSULTING AGREEMENT CINEMA FACILITY CONSULTING SERVICES THIS AGREEMENT, made as of the __ day of ~., by and between the City of Ramsey, Minnesota (the "City"), a municipal corporation organized and existing under the laws of the State of Minnesota and Paul Silk of Paul Silk Film Buying (PSFB) (the "Consultant"), 14742 J~ypton Court NW, Ramsey, Minnesota. The City is a municipal corporation and has the power to enter into this Agreement and carry out its obligations hereunder. The Consultant has the power to enter into this Agreement and to perform its obligations hereunder and is not in violation of the laws of the State. The Consultant has thirty years experience in the motion picture business, evenly divided first into fifteen years in studio distribution of motion pictures, and then fifteen years representing theatre owners. At present Mr. Silk'and his wife Mary Ann own and operate PSFB and represent 32 theatres totaling 186 screens throughout the Upper Midwest. PSFB is the largest independent providers of film buying services in the region and enjoy an excellent reputation in the industry. PSFB has a wide range of contacts throughout the film distribution and exhibition trade. Therefore, the parties agree as follows: DESCRIPTION OF SERVICES. Beginning on June 1, 2005, the Consultant will provide the following services (collectively, the "Services"): Cinema £acilio; Consulting Services Assist in formulating and articulating City of Ramsey's vision for a multiplex cinema to be incorporated into the Ramsey Town Center (RTC) development. Assist in review and approval of all issues regarding exterior design, auditorium count, seating count, parking demands, and all other common questions concerning the construction and intended operation of the multiplex cinema. Assist in preparation or review of market study, construction'budget, business plan, and proforma documents to determine economic viability of any proposed cinema project. Assist in search for and approval of the multiplex owner/operator best suited to serve the interests of the consumer, the City of Ramsey, and the RTC project. PERFORMANCE OF SERVICES. The Consultant shall determine the manner in which the Services are to be performed and the specific hoars to be worked by the Consultant. The City will rely on the Consultant to work as many hours as may be reasonably necessary to fulfill the Consultant's obligations under this Agreement. PAYMENT. The total fee for the services of PSFB is $5,000.00. The following fee payment schedule will apply, and it anticipates a completion date of 11/01/06 for the cinema project: