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l.Managing the collection of donations (monetary or otherwise), including but not limited to solicitation, <br />acknowledgement, and cataloguing. <br />m.Managing and supervising expenditures approved for the restoration of the Site. <br />n. Maintaining clear documentation of ownership of artifacts stored and/or displayed at the site. <br />i.All historical artifacts in the schoolhouse building are the property of the City of Hugo. <br />ii. All historical artifacts contributed by the Hugo Historical Commission are the property of <br />the City of Hugo. <br />iii. All historical artifacts contributed by the Forest Lake Historical Society are the property <br />of the Forest Lake Historical Society. <br />iv. All historical artifacts donated to the Nonprofit are the property of the Nonprofit. <br />o. Following the reasonable rules and regulations of the City of Hugo as adopted and amended <br />from time to time, as provided in Exhibit F attached hereto. <br />4.The Society/Nonprofit shall report annually to the Hugo City Council in February of each year during <br />the term of the lease. The report shall include a progress report on annual goals and measures of success <br />presented to the council the previous year. The report shall address at minimum: progress on <br />fundraising, restoration of the Site, and programs offered during the report year. The Society/Nonprofit <br />shall also present the goals and measures of success for the next calendar year. <br />a. Annual goals and measures of success for the initial year of the agreement are included as <br />Exhibit D. The parties may add or modify annual goals and measures of success, pursuant to a <br />written Change Order, executed by authorized representatives of each party, that specifies in <br />sufficient detail the addition of annual goals and measures of success for subsequent years or <br />modifications to previously adopted goals or measures. Parties agree that the change order shall <br />be substantially in the form of Exhibit E. <br />b. During the restoration period, the Hugo City Council shall evaluate performance on the annual <br />goals and measures of success to determine whether the restoration is advancing as expected. If it <br />is determined that the project is falling behind, the following actions will be taken: <br />i.The Council shall implement a six-month probationary period with a corrective action <br />plan that stipulates what milestones must be achieved during the six-month period for the <br />project to proceed. <br />ii.The Society/Non-profit shall report back to the Council at the conclusion of the six- <br />month period on the established milestones. <br />1.If the Council determines all milestones have been achieved, the probationary <br />period will be terminated, and the project will be allowed to proceed. <br />2.If the Council determines that all milestones have not been achieved, the Council <br />shall determine whether to extend the probationary period or deliver written <br />notice of its intent to terminate the agreement in 180 days. <br />c.Following the restoration period, the Hugo City Council shall receive the report from the <br />Nonprofit and provide feedback on the programs and services offered and identify opportunities <br />for further collaboration. <br />5.The Society/Nonprofit may charge an admission fee(s) for entrance to and/or use of the Site. <br />Page 9 of 89