AGREEMENT

          This AGREEMENT, made and entered into on the ___ day of June, 2002, by and between Baconton Parents and Citizens for Better Education, Inc. d/b/a Baconton Community Charter School (hereinafter the “Charter School”) and the Mitchell County School District acting through its Board of Education (hereinafter the “School Board”).

WITNESSETH:

            WHEREAS, the Charter School and the School Board are currently in litigation in the case of Baconton Parents and Citizens for a Better Education, Inc., et al v. Mitchell County School District, et al, Superior Court of Mitchell County, Civil Action File Nos. 02-v-312; and

            WHEREAS, the Court has entered an Order dated June 7, 2002, urging the parties to engage in “Serious and Reasonable ‘discussions’ towards reaching a meeting of the minds;” and

            WHEREAS, the parties have met and reached agreement on those issues raised in the litigation, specifically as to the prospective operation, population and funding of the Charter School; and

            WHEREAS, the parties intend this Agreement to amend and revise any existing charter or contract between the parties specifically including the Charter Petition dated March 10, 2000, the Resolution of the Board dated April 11, 2000 and the Agreement entered into on August 11, 2000, between the Charter School and the School Board.

            NOW THEREFORE, in consideration of the mutual covenants set forth below and other valuable consideration exchanged between the parties, they do hereby agree as follows:

1.      Student Enrollment:  The student enrollment capacity of the Charter School and its grade configuration shall be established by the governing authority of the Charter School.  It shall be permitted to add grades, including a high school, and generally increase enrollment at its discretion, subject only to the parameters set forth below.

2.      The 2002-03 School Year:  The School Board has approved the admission of all students residing in Mitchell County on the current Charter School waiting list, a copy of which is attached as Exhibit A.  All eligible students on the list, regardless of where they reside in Mitchell County, may be admitted for the 2002-03 school year, subject only to capacity limitations of the Charter School.

3.      The North Mitchell County Attendance Zone:  Beginning with the 2003-04 school year, the Charter School agrees to limit the enrollment of new students to those residing in the North Mitchell County Attendance Zone, which is geographically defined in its Charter Petition dated March 10, 2000.  However, it is expressly agreed that siblings of current out-of-zone and out-of-county students may continue to be admitted.

4.      Funding:  The School Board shall fund all Charter School students at the rate of $4500 per student (regardless of their residence) per year for the three school years remaining on the initial five year charter.  If BCCS adds high school students (grades 9-12) beginning in school year 2003-04, the funding level shall be the greater of $4500 or the funding level required under the Georgia Charter School Law, O.C.G.A.{20-2-2068.1, passed during the 2002 session of the General Assembly.  Based on the representation that the School Board will not permit any new non residents of Mitchell County to attend a Mitchell County public school, the Charter School agrees not to enroll any new out of County student beginning with the 2002-03 school year, except for siblings of existing out of County students which the School Board has agreed to continue to fund.

5.      Meals:  The School Board shall provide a lunch program which may vary in cost for all Charter School students at no expense to the Charter School.  It is agreed that the Charter School shall generally administer the lunch program, including but not limited to, establishing appropriate times and places for serving lunch.  The School Board will be responsible for compliance with all state and federal laws concerning such lunch programs, and for the preparation and provision of the lunches to the students at reasonable times and at campus locations to be designated by the Charter School.

6.      Transportation:  The School Board has elected to provide transportation only to those Charter School students residing in the North Mitchell attendance zone.  The School board has agreed to consider and study the feasibility of providing transportation to Charter School students residing in Mitchell County but outside the North Mitchell attendance zone, as requested by the Charter School, and may, at its discretion, provide for transportation to out of zone students beginning with the 2003-04 school year.

7.      Class Size:  The maximum Charter School class or section size shall be increased from 20 to 25.  This change is primarily intended to address those situations where the waiting list for admission at a particular grade exceeds the available seats in existing sections, but is insufficient to establish another class or section at that grade level.

8.      Racial Diversity:  The prospective limitation on enrollment of students in the Charter School to this North Mitchell attendance zone will constitute a change to the existing countywide charter School attendance area.  The parties acknowledge that the change will alter the racial demographics of the geographic area from which the Charter School can enroll students.  The parties agree this change was made for non-discriminatory reasons and was done at the express request of the School Board.

9.      Submission to State Board:  The parties further agree to submit the Agreement to the State Board of Education, as an amendment to the Charter.  The parties agree that no further amendments to this Charter will be sought or granted on the specific issues agreed upon herein.

10.  Dismissal of Litigation:  Upon final approval of this Settlement Agreement, the plaintiffs agree this Agreement shall be the basis upon which the pending litigation will be resolved and voluntarily dismissed by counsel for all parties.  The Charter School and its undersigned attorneys represent that they have the authority and are acting on behalf of all named plaintiffs in this litigation in executing this agreement and that they have the authority of all named plaintiffs to dismiss the described complaint.  All parties agree, understand and acknowledge that none of the parties recognize, admit, or acknowledge any liability whatsoever which might have been alleged in this litigation and, further, that all parties hereby specifically deny any such liability on the part of any of the parties to the litigation.

11.   In entering into this agreement, the parties represent that they have relied upon the legal advice of their own attorneys who are the attorneys of their own choice, and that the terms of this agreement have been completely read and explained to them by their attorneys and those terms are fully understood and voluntarily accepted by them.

The parties hereto have caused their duly authorized representatives acknowledge their consent to the terms of this agreement as endorsed by their signatures below.

                                                                  Baconton Parents and Citizens for

                                                                  Better Education, Inc., d/b/a Baconton

                                                                  Community Charter School

                                                                  By:  Tim Pinson, President

                                                                  Attest:  Janice J. Yeager, Secretary

                                                                  Mitchell County School District/Mitchell

                                                                  County Board of Education

                                                                  By:  C. Williams, President

                                                                  Attest:  Dan McIntyre, Superintendent