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DRAFT – FOR DISCUSSION ONLY. 8 Exhibit A: Fiscal Sponsorship Agreement The Forest Lake Historical Society (“Fiscal Sponsor”) has determined that sponsorship of the formation of the Hopkins Schoolhouse and Heritage Center (“the Project” before incorporation) or (“the Sponsored Organization” after incorporation) are consistent with its goals and wishes to make arrangements with the City of Hugo for the implementation and operation of the Project. 1. The Forest Lake Historical Society hereby agrees to sponsor the Project/Sponsored Organization and to assume administrative, programmatic, financial, and legal responsibility for the purposes outlined in this proposal until such time as the Hopkins Schoolhouse and Heritage Center is (1) formally incorporated as a Minnesota non-profit organization; and (2) has secured a determination from the IRS confirming its status as a 501(c)(3) charitable organization. 2. The Forest Lake Historical Society agrees to implement and operate the Project as described in the proposal attached as Exhibit B, in accordance with the terms of this agreement and with requirements specified by the City of Hugo as described in the primary agreement. 3. The Project shall be operated in a manner consistent with the Fiscal Sponsor’s tax-exempt status and as described in this agreement. No material changes in the purposes or activities of the Project shall be made without prior written agreement of the City of Hugo. 4. The Fiscal Sponsor will provide the City of Hugo with reports describing activities on the Project milestones with the following schedule, or until such time as the duties are transitioned to the Nonprofit: Second Quarter – June 30, 2023 Third Quarter – September 30, 2023 Fourth Quarter – December 31, 2023 5. The Fiscal Sponsor will establish and operate for the use of the Project a designated account (“Account”) segregated on the Fiscal Sponsor’s books. All amounts deposited into the Project’s Account will be used in its support. 6. The Fiscal Sponsor will maintain all financial records relating to the Project according to generally accepted accounting principles, retain records as long as required by law, and make records available to auditors as required by law. 7. The Fiscal Sponsor and the Sponsored Organization will reflect the activities of the Project, to the extent required, on their state and federal government tax returns and financial reports. All disbursements from an Account shall be treated as payments made to or on behalf of the Sponsored Organization to accomplish the purposes of the Project. The Sponsored Organization will provide the Fiscal Sponsor with proper documentation to accomplish this, including furnishing the Fiscal Sponsor with the Sponsored Organization's Federal Employer Identification Number once secured. 8. Within 30 days of receipt of the IRS determination letter confirming the non-profit status of the new nonprofit, the Forest Lake Historical Society shall transfer all Project documentation, financial records, and funds deposited into its accounts for the Project to the Sponsored Organization. At such time, all obligations set forth in this agreement shall be transferred to the