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OPERATING AGREEMENT 6/13/95 <br /> This Operating Agreement is entered into as of . 1995, by and between <br /> the CITY OF ST. ANTHONY, a municipal corporation under the laws of the State of <br /> Minnesota ("Owner"), and ERNIE SWANSON, doing business as Ernie's Catering <br /> Service, the principal office of which is at 1885 Newberry Avenue North, Stillwater, <br /> Minnesota 55082 ("Operator"). <br /> A. Owner is the owner of the restaurant and on-sale liquor establishment (the <br /> "Premises") known and referred to as the "Stonehouse" and located at 2700 Highway 88 , <br /> St. Anthony, MN 55418. <br /> B. Owner desires that a full service bar and restaurant be operated in the <br /> Premises, with the food service portion of the restaurant ("Food. Service") to be <br /> under the operation and management of the Operator, and with the service of <br /> liquor and soft drinks ("Beverages") to be under the operation and control of the <br /> Liquor Operations of Owner. For purposes of this Agreement the term Beverages <br /> does not include coffee, tea or milk, which will be considered a part of Food Service. <br /> C. Operator is experienced in the management, supervision and operation of <br /> food service facilities. <br /> • D. Owner desires to engage Operator to supervise, manage and otherwise cause <br /> to be performed the operation of the Food Service and Operator desires to perform <br /> such services on the terms and conditions hereinafter specified. <br /> NOW THEREFORE, in consideration of the mutual covenants and promises <br /> contained herein, Owner and Operator hereby mutually agree as follows: <br /> 1. TERMS OF ENGAGEMENT. Owner hereby engages Operator as the manager <br /> to supervise and direct the operation and management of the Food Service on the <br /> terms and conditions hereinafter set forth. Operator hereby accepts such <br /> engagement and agrees to manage the Food Service and to diligently perform and <br /> discharge the duties and responsibilities set forth herein. <br /> 2. RELATIONSHIP OF THE PARTIES. <br /> 2.01 Independent Contractor. Owner and Operator are not to be considered joint <br /> venturers or partners, or one as the agent of the other. The relationship of Operator <br /> to Owner is and at all times hereafter shall remain solely that of an independent <br /> contractor, and nothing herein shall be deemed to create any other relationship <br /> between them. Neither party shall have the power to.legally bind or obligate the <br /> other, nor shall either party be liable for debts incurred by the other, except as may be <br /> • specifically otherwise provided herein. <br />