THIS CONTRACT, dated this 2nd day of June, 1994, is made and entered by and between the JEFFERSON COUNTY SCHOOL DISTRICT NO. R-1 ("School District") and COMMUNITY INVOLVED CHARTER SCHOOL ("CICS").

RECITALS

WHEREAS, the Colorado General Assembly has enacted the Charter Schools Act ("Act"), C.R.S. SS 22-30.5-101, et sea., for certain purposes as enumerated in SS 22-30.5-102(2) and (3); and

WHEREAS, on January 14, 1994, an Application (attached and incorporated as Exhibit A) was submitted by the Administrative Steering Committee of CICS for formation of CICS as a charter school to operate within the School District; and WHEREAS, the School District's Board of Education ("Board") has determined that the Application submitted to the School District for the formation of CICS as a charter school, as amended herein, complies with the purposes and requirements of the Charter Schools Act; and WHEREAS, by Resolution adopted March 17, 1994, the Board conditionally granted the Application contingent upon the negotiation and execution of a contract acceptable to CICS and the School District and subject to certain other conditions; and WHEREAS, the Act contemplates that the Application, as amended by a contract, between CICS and the School District, will constitute the agreement between the parties regarding the governance and operation of CICS; and WHEREAS, CICS seeks certain waivers from and clarifications of Board policy and/or state law; and WHEREAS, the School District has the authority to waive only those Board-approved policies and/or regulations to the extent permitted by law; and WHEREAS, the authority of the State Board of Education to provide waivers from requirements of state law only extends to provisions contained in Title 22 of the Colorado Revised Statutes; NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual understandings, releases, covenants and payments herein described, the parties agree as follows:

AGREEMENT

1. Mission Statement: The mission of CICS, as described on pp. 3-5 and 9 of CICS's Application, is hereby accepted by the School District to the extent it is consistent with the principles of the General Assembly's declared purposes for enacting the Charter Schools Act as set forth in C.R.S. 22-30.5-102(2) and (3).

2. Goals, Objectives and Pupil Performance Standards: The goals, objectives and pupil performance standards set forth on pp. 10-12 of the Application are hereby accepted by the School District, as amended, and subject to the conditions set forth below:

a. Student Attendance, Conduct and Discipline: CICS agrees that it shall comply with all Board-approved policies and regulations concerning student attendance, standards of conduct and discipline. CICS's procedures shall provide that appeal in student discipline cases shall be to the Governing Board of CICS, rather than to the Board of Education of the School District.

(i) Attendance of students at CICS shall be in compliance with Colorado's compulsory attendance laws, including, without limitation, hour requirements and the distinction made between excused and unexcused absences.

(ii) CICS may adopt its own code of conduct for students and shall be granted a waiver from corresponding School District policies as long as the developed codes, policies and procedures regarding student conduct and student discipline are in compliance with applicable federal and state laws, including, without limitation, the grounds and procedures established by state statute for suspending, expelling or denying admission to a student.

b. Student Welfare and Safety: CICS shall comply with all Board-approved policies and regulations, and comply with all applicable federal and state laws, concerning student welfare, safety and health, including, without limitation, Board policies and laws addressing the reporting of child abuse, accident prevention and disaster response, and any state regulations governing the operation of school facilities.

c. Academically Low Achieving Students: CICS shall identify academically low achieving students and shall provide its educational program to these students in a manner that best serves their needs, as outlined in the procedures set forth in the Application.

3. Community Support: The Board finds that sufficient support for the formation of CICS exists, as evidenced by pp. 7-8 of the Application and the letters of support from parents, students, teachers and community members.

4. Statement of Need: The Board has determined that pp. 5-8 of the Application sufficiently establishes a need for additional educational choice within the School District and that the proposed charter school program would serve that need in a manner which is in the best interests of the school community.

5. Educational Program, Pupil Performance Standards and Curriculum:

a. Curriculum. The School District agrees to waive its curricular requirements, to the extent permitted by state law, but subject to the implementation by CICS of its instructional programs as outlined in its Application, as amended herein.

(i) CICS shall have the authority and responsibility of designing and implementing its educational program, subject to the conditions of this Contract, in a manner which is consistent with state law, including, without limitation, requirements regarding content standards.

(ii) The educational program, pupil performance standards and curriculum designed and implemented by CICS shall meet and exceed any content standards adopted by the School District and shall be designed to enable each pupil to achieve such standards.

(iii) CICS agrees to comply with all state statutory requirements concerning subjects of instruction, unless specifically waived by the State Board of Education, including, without limitation, instruction in the areas of state and federal history and civil government, C.R.S. S 22-1-104; honor and use of the United States Flag, C.R.S. S 22-1-106; the federal constitution, C.R.S. S 22-1-108; and the effect of use of alcohol and controlled substances, C.R.S. S 22-1-110.

(iv) The Board agrees to waive the requirement of Board Policy IFR that curriculum and instructional materials be approved by the School District Curriculum Council prior to implementation, provided that such curriculum and materials meet or exceed content standards adopted by the School District.

(v) CICS shall establish a process for resolving public complaints, including complaints regarding curriculum, which provides an opportunity to be heard and an appeal process similar to current School District policies and procedures, except that the final administrative appeal shall be heard by the Governing Board of CICS, rather than the Board of Education of the School District.

b. Records.

(i) CICS agrees to comply with ail recordkeeping requirements of the Board and/or federal or state law and shall provide any reports, as necessary, to meet the School District's reporting obligations to the State Board and Colorado Department of Education. Student records include, without limitation, immunization records, class schedules, records of academic performance, disciplinary actions, attendance and standardized test results and documentation required under federal and state law regarding the education of students with disabilities.

(ii) CICS shall comply with all Board-approved policies and regulations, and applicable federal and state laws, concerning the maintenance, retention and disclosure of student records, including, without limitation, the Colorado Open Records Law, C.R.S. SS 24-72-204, et sea., and the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. 5 1232g.

c. Nonreligious, Nonsectarian Status. The educational program of CICS shall be nonreligious, nonsectarian and shall not discriminate against any student on the basis of race, creed, color, sex, national origin, religion, ancestry, disability or need for special education services.

d. Open Enrollment. Enrollment shall be open to any child who resides within the School District, subject to CICS's total enrollment limitations as contained in the Application. Students enrolling in CICS are subject to the School District's open enrollment policy and regulations, except that the March 1 deadline for applications is not applicable for the 1994-95 school year.

e. Admissions. Admission of students to CICS shall be determined in accordance with School District policy regarding enrollment in charter and educational option or alternative schools. Students who reside outside of the School District shall not be admitted to CICS until all applicants who reside in the School District and who qualify for admission have been enrolled.

f. Education of Students with Disabilities. CICS agrees to comply with all Board-approved policies and regulations and the requirements of federal and state law concerning the education of children with disabilities.

g. Tuition. Tuition shall not be charged to students who reside in the School District, other than for before and after school programs administered by CICS. Nonresident students may be admitted pursuant to Board-Policy JECB, and tuition charges for nonresident students shall be charged at the School District's regular nonresident tuition rate.

h. Post-Secondary Enrollment Options. Where a student of CICS seeks enrollment at an institution of higher education, pursuant to the Post-Secondary Enrollment Options Act, C.R.S. 22-35-101, et sea., CICS shall be responsible for entering into a cooperative agreement with the institution of higher education and for payment of tuition under such agreement.

i. CICS students may participate in nonacademic activities at other schools in the School District, provided that the prerequisites for participation are met and there is space available in the desired activity or program. Where such participation requires payment of a fee, the CICS student or CICS shall be responsible for payment of the fee. CICS students shall not be eligible for enrollment in academic courses at other schools on a part-time basis.

6. Evaluation of Pupil Performance and Procedures for Corrective Action: The Board approves CICS's methods for evaluating pupil performance and procedures for corrective action contained in pp. 15, 20-21 and Appendix A of the Application, as amended herein, and subject to the conditions below and otherwise set forth in this Contract:

a. Suspension or expulsion of students from the academic program shall be in accordance with School District policies and applicable federal and state law.

b. Transfer of students from CICS to another school in the School District shall be accomplished in accordance with School District Policy JECC and its accompanying regulation.

c. The Board approves CICS's proposal for assessment of student performance as set forth on pp. 20-21 and Appendix A of the Application, and CICS agrees to cooperate with the School District and its administrators to coordinate testing with the School District's statistical needs.

7. Economic Plan, Budget and Annual Audit: Appendix D of the Application is amended as follows, which amendments, and all other provisions of this Contract, shall supersede and control over any conflicting language contained in the Application.

a. Funding.

(i) During the 1994-95 school year, the School District shall provide funding to CICS in the amount of eighty-five percent (85%) of the School District per pupil operating revenues ("PPOR"), as defined by C.R.S. 22-54-103(9), for each funded pupil enrolled in CICS. Enrollment data as of Nay 20, 1994, shall be used to determine initially funding for the 1994-95 school year. For subsequent school years, funding shall be initially determined based on enrollment as of April 1. So long as CICS is not in material breach of this Contract, this funding will be made available to CICS in monthly installments, commencing on July 20. The term funded pupil, as used in this provision, shall be deemed to mean enrolled as of the counting dates or periods set forth in the Public School Finance Act of 1994, C.R.S. SS 22-54-101, et sea., or corresponding provisions in any successor acts, and State Board of Education regulations.

(ii) The School District will adjust the funding to reflect the actual funded pupil count as of October 1. In addition, to the extent the School District experiences any reduction or increase in state equalization support by a legislative rescission or other action, proportionate reductions or increases will be made to CICS by adjustment or set off in subsequent months.

(iii) On or before February 1 of each year of the Charter, CICS and the School District will begin negotiations concerning funding for the ensuing fiscal year in order that the amounts may be determined in conjunction with the School District's and CICS's budget development and adoption process. It is acknowledged that in future fiscal years, funding may be more or less than 85% of the School District's PPOR, but it is agreed that the amount of funding provided to CICS from the School District shall not be less than eighty percent (80%) of the School District's PPOR, as defined by C.R.S. S 22-54-103(9), or corresponding provisions in any successor acts, multiplied by the number of funded pupils enrolled in CICS. The parties also acknowledge that the intent of the Charter Schools Act is that funding and service agreements under this contract be neither a financial incentive or disincentive to establishment of a charter school.

(iv) It is the intent of the School District that CICS receive a proportionate share of funding provided by the federal and state governments for special education, gifted and talented students and other federal and state grant sources, to the extent that CICS complies with the conditions and requirements of such grants and applicable law, and fulfills the reporting requirements under such grants. The proportionate share of state and federal resources generated by CICS students with disabilities, or the staff serving them, shall be directed to CICS. A proportionate share of moneys generated under other federal or state categorical aid programs shall be directed to CICS for each CICS student eligible for such aid. Direction of such federal and state resources or categorical aid shall be contingent upon demonstration by CICS that it is in compliance with federal and state statutes and regulations regarding entitlement to such reimbursement, which demonstration shall be sufficient to permit the School District to claim reimbursement on its end-of-year report to federal and state agencies. Prior to receipt of such funds, CICS shall provide to the School District assurances that it will comply with various federal statutes, which assurances are required of recipients of federal funds for special education and categorical aid. CICS shall provide the School District with data necessary to complete such claims, including, without limitation, evidence that special education service providers meet educational, certification or licensing requirements of state law and documentation of the nature and duration of services provided for each student with disabilities by such service providers. Although such resource and categorical aid are provided by state and federal agencies as reimbursement following the school year in which the expenses incurred, the School District agrees that CICS may request reimbursement on a quarterly basis. Within thirty (30) days of submission of data satisfactory to the School District for its reporting purposes, the School District will provide reimbursement to CICS.

(v) Enrollment data for any given year of the charter, including, without limitation, significant increases or decreases in enrollment, shall be considered in negotiating funding for the subsequent fiscal year.

b. Budget. The 1994-95 Budget set forth in Appendix D of the Application is amended as follows:

(i) The per pupil funding to be provided by the School District shall be in accordance with paragraph 7a above.

(ii) CICS shall be responsible for all costs associated with its school operations, including the cost of contracting for goods and services. The following services shall be provided to CICS by the School District during the initial fiscal year of this Contract in accordance with the Schedules noted: payroll, accounting, computer linkage, business services, accounts payable (but not accounts receivable) and purchasing (Schedule 1); insurance (Schedule 2) and employee benefits and personnel services (Schedule 3). In addition, through separate agreement set forth as an Addendum to this Contract, CICS may purchase at cost the following: services for the repair and maintenance of equipment and facilities; food service; leasing of School District vehicles; use of the film/video library; staff development activities; printing and copying services; and services for the preparation of specifications, conduct of the bidding process and evaluation of goods and services outside of the ordinary purchase of supplies and materials through the School District warehouse process.

(iii) At no charge to CICS, the School District will provide legal services through the School District's legal counsel, for defense of suits, actions and claims against CICS, including special education due process hearings and appeals, and actions for which the School District provides insurance coverage in accordance with Schedule 2. Such legal services shall not be provided for defense of matters involving worker's compensation, unemployment compensation or disputes with the School District. The provision of a defense is conditioned upon prompt notification by CICS to the School District of all claims, including threatened or reasonably anticipated claims or actions; full cooperation with the School District and legal counsel in defending the claim and CICS not compromising, settling, negotiating or otherwise similarly dealing with the claim without the express consent of the Board of Education. CICS acknowledges that in the event of a dispute between CICS and the School District, the School District's legal counsel will represent the School District and not CICS. CICS shall have access to legal consultation and advice where such assistance is requested through CICS's Cabinet representative, and where the School District determines that such assistance is appropriate.

(iv) On or before May 15 of each year, CICS shall submit to the Board for its approval, CICS's proposed budget for the upcoming school year. For the 1994-95 school year, CICS shall reallocate revenue and expenditures to reflect the eighty-five percent (85%) PPOR to be provided by the School District. A revised budget in School District format shall be submitted on or before June 1, 1994.

c. Financial Records and Annual Audit. CICS agrees to establish, maintain and retain appropriate financial records in accordance with all applicable federal, state and local laws, rules and regulations, and to make such records available to the School District, as requested, from time to time. CICS agrees to participate in the School District's annual audit by a certified public accountant of its financial and administrative operations. The incremental cost to the School District attendant to inclusion of CICS in the audit shall be borne by CICS. Alternatively, CICS may elect to retain a certified public accountant to conduct the audit, provided that the audit meets School District and Colorado Department of Education requirements.

8. Governance and Operation: The nature and extent of parental, professional educator and community involvement in the governance and operation of CICS and set forth through the Application is accepted by the Board to the extent permissible under federal and state law and subject to all conditions of this Contract, including, without limitation, the amendments set forth in paragraph 9 below. In addition, the Application is amended as follows, which amendments, and all other provisions of this Contract, shall supersede and control over any conflicting language contained in the Application:

a. Corporate Status. CICS agrees to incorporate, at its own expense, as a Colorado nonprofit corporation. Prior to filing with the Secretary of State, the Articles of Incorporation shall be provided by CICS to the School District for approval. Such Articles shall include a provision specifying that upon dissolution, voluntary or otherwise, assets not requiring return or transfer to donors or grantors or required for discharge of existing liabilities and obligations of CICS shall be returned to the School District. Unless a donor or grantor specifically provides otherwise, all gifts, donations and grants are assumed to be to the charter school, and shall be included among the assets returned to the School District upon dissolution.

b. Conflict of Interest. Members of the Governing Board of CICS shall comply with Board policies and regulations regarding Board member ethics and conflict of interest.

c. Nonreligious, Nonsectarian Status. CICS agrees that it shall operate, in all respects, as a nonsectarian, nonreligious, non-home-based public school. CICS shall not be affiliated with any nonpublic sectarian school or religious organization.

d. Commitment to Nondiscrimination. CICS shall comply with all applicable federal, state and local laws, rules and regulations, including, without limitation, statutory and constitutional provisions prohibiting discrimination on the basis of disability, age, race, creed, color, sex, national origin, religion or ancestry.

e. Accountability. CICS shall be accountable to the School District and subject to all Board approved policies and regulations unless specifically waived. CICS agrees to participate in the School District accountability process in accordance with Board Policy BCFB. All records established and maintained in accordance with the provisions of this contract, Board policy, and federal and state law shall be open to inspection by the School District.

f. Open Meetings Law. CICS agrees that it is subject to the provisions of the Colorado Open Meetings Law, C.R.S. 24-6-401 et seq., and that it will comply with the provisions of such law in connection with all of its activities.

g. Indigent Students. CICS shall waive all fees for indigent students in accordance with Board Policy JN, its accompanying regulation and applicable federal and state law. CICS shall survey its student population for eligibility for free and reduced lunches under federal guidelines in accordance with State Board of Education regulations. On all fee lists and schedules, CICS shall include notification of the policy of waiver of fees for indigent students.

h. Operational Powers. Subject to the conditions and provisions of this Contract, CICS shall be fiscally responsible for its own operations within the limitations of any funding provided by the School District and other revenues derived by CICS consistent with law.

(i) CICS shall have authority to exercise independently, also consistent with federal and state law, the following powers (including such other powers as provided for elsewhere in this Contract and in the Application to the extent consistent with this Contract): contract for goods and services; prepare a budget; select personnel and determine their compensation; procure insurance; lease facilities for school purposes; purchase, lease or rent furniture, equipment and supplies; retain fees collected from students in accordance with law; and accept and expend gifts, donations or grants of any kind in accordance with such conditions prescribed by the donor as are consistent with law and not contrary to any of the terms of this Contract.

(ii) CICS shall comply with applicable provisions of Article X, Section 20, of the Colorado Constitution. CICS shall not enter into any agreement or contract that gives rise to a multiple-fiscal year direct or indirect debt or other financial obligation whatsoever on the part of CICS without the prior express written consent of the School District.

(iii) In exercising its powers, CICS shall comply with all applicable Board approved policies unless a specific waiver is obtained. CICS shall furnish to the Board copies of all written policies or procedures it may develop with respect to any matter relating to its operations and educational program upon adoption of such policies by CICS's Governing Board.

(iv) CICS shall clearly indicate to vendors and other entities and individuals outside the School District with which or with whom CICS enters into an agreement or contract for goods or services that the obligations of CICS under such agreement or contract are solely the responsibility of CICS and are not the responsibility of the School District.

(v) All gifts, donations and grants shall be reported by CICS to the School District by recording the same in the financial records required under Section 7(c). CICS shall obtain approval from the Board of Education prior to the acceptance of any gift, donation or grant in excess of ten thousand dollars ($10,000).

 i. Waivers. CICS has been granted certain waivers from Board approved policies and/or regulations. In addition, CICS has proposed requests for waivers from certain state laws from the State Board of Education and the Board has agreed jointly to request waivers of certain such laws. The waivers from Board policies, and the conditions therefore, and the waivers from state law to be requested jointly, are set forth in attached Exhibit B, which is hereby incorporated into this Contract.

j. Bidding Requirements. Unless purchased from or through the School District, contractual services and purchases of supplies, materials and equipment shall be procured through a system of competitive bidding, as required by Board policy and state law.

k. Periodic Review of Financial Enrollment. and Program Development Status. CICS shall be subject to a review of its operations and finances by the Board or a designee as of November 1 and March 1 of each year. CICS shall, on November 1 and March 1 each year, provide to the School District a brief written report concerning its operations, including, without limitation, progress made towards its educational goals and objectives, policy development issues, student attendance and student discipline information, and personnel matters.

l. Term. It is the intent of the Board of Education of the School District that the Charter and this Contract are to be effective as of the date first written above for a period of three (3) fiscal years (1994-95, 1995-96 and 1996-97), and to terminate on June 30, 1996. Although this Contract is for operation of CICS as a charter school in the School District for a period of three years, any financial commitment on the part of the School District contained in this Contract is subject to annual appropriation by the Board of Education and the parties agree that the School District has no obligation to fund the financial obligations under this Contract other than for the current year of the contract term; that the School District has not irrevocably pledged and held for payment sufficient cash reserves for funding CICS at or above eighty percent of the School District PPOR or for providing services described herein for the entire term of the Contract. Renewal of the charter may be sought by CICS in accordance with C.R.S. 22-30.5-110(2).

m. Termination. This Contract may be terminated, and the Charter revoked by the Board, for any of the grounds provided by state law, C.R.S. SS 22-30.5-110(3) and (4), and/or for any material breach of this Contract, upon thirty (30) days' advance written notice being given to CICS. Should CICS choose to terminate this Contract and revoke its Charter before the end of the Contract term it may do so with the Board's approval, at any time, upon thirty (30) days' advance written notice. In the event of termination, all assets not requiring return or transfer to donors or grantors or required for discharge of existing liabilities and operations of CICS shall be returned to the School District. Unless a donor or grantor specifically provides otherwise in writing, all gifts, donations and grants shall be assumed to be made to the charter school and shall be included among the assets returned to the School District upon termination of this Contract.

n. Dissolution. In the event CICS should cease operations for whatever reason, including the nonrenewal or revocation of its charter, or dissolution of the nonprofit corporation established pursuant to paragraph 8(a) above, it is agreed that the Board shall supervise and have authority to conduct the winding up of the business and affairs of CICS; provided, however, that in doing so, the School District does not assume any liability incurred by CICS beyond the funds allocated to it by the School District under this Contract. The School District's authority hereunder shall include, but not be limited to, the return and/or disposition of any assets acquired by purchase or donation by CICS during the time of its existence. All assets not requiring return or transfer to donors or grantors or required for discharge of existing liabilities and obligations of CICS shall be returned to the School District.

9. Employment Matters: The guidelines set forth on pp. 8-9, 16-18 and Appendices B and C of the Application concerning employment matters such as employee relationships, job descriptions, and terms and conditions of employment are accepted by the School District, and shall supersede the requirements of any Board approved policies or regulations, to the extent permitted by law, and subject to the following conditions in addition to all other provisions of this Contract:

a. Hiring of Personnel. Personnel may be selected by CICS subject to compliance with all federal and state rules and regulations, including, without limitation, requirements concerning the recruitment of applicants and the use of background and criminal checks, unless a specific waiver is obtained from the State Board of Education or other proper authority. CICS shall not place an employee under the direct supervision of, nor shall an employee be evaluated by a member of the employee's immediate family. The Governing Board of CICS may terminate the employment of any personnel so long as such employees are not terminated for constitutionally impermissible reasons.

b. Employee Compensation, Evaluation and Discipline. The School District agrees to waive all Board approved policies and regulations concerning the compensation, evaluation, promotion, discipline and termination of the employment of CICS employees subject to compliance with all state rules and regulations, unless specific waivers are obtained from the State Board of Education.

(i) The Governing Board of CICS shall be independently responsible for the supervision and evaluation of the teaching staff within CICS, as prescribed by the Application.

(ii) CICS shall adopt its own written policies in compliance with federal and state law, concerning the recruitment, promotion, discipline and termination of personnel; methods for evaluating performance; and a plan for resolving employee-related problems, including complaint and grievance procedures. Final administrative appeals in matters regarding employment and employee discipline shall be determined by the Governing Board of CICS and not the Board of Education.

(iii) CICS shall notify the School District and other appropriate authorities, in accordance with state law, of discipline of CICS employees arising from misconduct that brings direct harm to students or others or from violations of law or policy.

c. Payroll. Employees shall be paid through the payroll department of the School District using its procedures for recording employee work hours, overtime, absences, leaves, vacation and other adjustments, as supplemented or modified by written agreement between the parties.

d. Benefits. CICS may purchase on behalf of its employees coverage under health, dental and vision insurance coverage available to School District employees, at cost, in accordance with Schedule 2.

e. PERA Membership. All CICS employees shall be members of the Public Employee's Retirement Association and subject to its requirements. CICS shall be responsible for the cost of the School District's/employer's respective share of any required contributions.

f. Equal Opportunity Employer. CICS affirms that it shall not discriminate against any employee on the basis of race, creed, color, sex, national origin, religion, ancestry, age or disability in its recruitment, selection, training, utilization, termination or other employment related activities.

g. Employee Welfare and Safety. CICS shall comply with all Board approved policies, and applicable federal and state laws, concerning employee welfare, safety and health issues, including, without limitation, the requirements of federal law for a drug free workplace.

h. Employee Records. CICS shall be responsible for establishing and maintaining personnel records for its employees in compliance with all Board approved policies and regulations, and applicable federal and state laws, concerning the maintenance, retention and disclosure of employee records, including, without limitation, the requirements of the Colorado Open Records Law, SS 24-72-204 et seq. CICS shall provide to the School District the employee identification data necessary for the payroll process and state reporting.

i. Employee Conflicts of Interest. All CICS employees shall comply with the Board's policies and regulations, and applicable state law, concerning staff conduct and staff conflicts of interest.

j. School District Teachers. Current teachers of the School District who are selected for employment by CICS are eligible for a one year leave of absence from their employment with the School District, consistent with state law, and may be eligible for two additional one year leaves of absence upon mutual agreement of the teacher and the School District. Such leaves shall commence on the day following the last day of service to the School District required under the teacher's current contract and shall end on the first day of the teacher's provision of services upon the teacher's return to the School District. Leave for teachers will not be approved to commence prior to the completion of services by the teacher under the teacher's current contract with the School District. A request for return to the School District during the term of the leave may be granted by the School District at its sole discretion. The status of any teacher in the School District employed by CICS and on an approved leave from the School District shall not be affected by such employment, however, the teacher will not be eligible to move vertically on the School District's salary schedule. A probationary teacher shall not acquire nonprobationary status in the School District or accrue credit toward nonprobationary status with the School District based on employment with CICS while on approved leave. The period of time during which a teacher is on approved leave for employment with CICS shall not be credited as continuous service. Upon returning to the employment of the School District, CICS teachers in good standing will be guaranteed a position with the School District, although not necessarily in the same position as he or she previously held. A probationary teacher whose contract with the School District is nonrenewed prior to the commencement of services to CICS will not be provided a position in the School District upon completion of employment with CICS.

10. Insurance and Legal Liabilities: The Application is amended as follows which amendments shall supersede and control over any conflicting language contained in the Application.

a. Insurance. It is agreed that during the initial term of this Contract, the School District will provide insurance coverages as set forth in Schedule 2, attached and incorporated into this Contract, which are consistent with the coverages available to the School District itself. CICS agrees that it will coordinate all risk management activities through the School District's risk management office. this will include the prompt reporting of any and all pending or threatened claims, filing of timely notices of claim, cooperating fully with the School District in the defense of any claims and complying with the defense and reimbursement provisions of the Colorado Governmental Immunity Act and the School District's applicable insurance policies. CICS shall neither compromise, settle, negotiate nor otherwise affect any disposition of potential claims asserted against it without the School District's prior written approval.

b. Legal Liabilities. CICS shall operate in compliance with all Board approved policies and regulations and all applicable federal, state and local laws, rules and regulations, unless specifically waived as indicated in attached Exhibit B or unless such waiver is obtained from the proper authority pursuant to the procedures of paragraph (i) below subsequent to the execution of this Contract.

(i) Waiver. Waivers from specific Board approved policies or regulations and/or state law may be requested by CICS by submitting such a request, in writing, to the School District's Superintendent. The request shall include the reasons why CICS is in need of or desires the waiver. The Superintendent shall have ten (10) school days to review the request and, thereafter, will present the matter before the Board at its next regular meeting. Waivers of Board approved policies and regulations may be granted only to the extent permitted by state law. In the event the School District policy or regulation from which CICS seeks a waiver is required by state law, or where CICS otherwise requests release from a state regulation, the School District agrees to jointly request such a waiver from the State Board of Education, if the School District's Board first approves the request.

(ii) Faith and Credit. CICS agrees that it will not extend the faith and credit of the School District to any third person or entity. CICS acknowledges and agrees that it has no authority to enter into a contract that would bind the School District and that CICS's authority to contract is limited by the same provisions in law or Board policy that apply to the School District itself. CICS also is limited in its authority to contract by the amount of funds obtained from the School District, as provided hereunder, or from other independent sources. CICS's Governing Board shall hereby be delegated the authority to approve contracts to which CICS is a party, subject to the requirements and limitations of the Colorado constitution, state law, Board approved policies and the provisions of this Contract.

(iii) Indemnification. To the extent not covered by insurance or otherwise barred by the Colorado Governmental Immunity Act, CICS agrees to indemnify and hold the School District, its Board, agents and employees harmless from all liability, claims and demands on account of injury, loss or damage, including, without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage or any other losses of any kind whatsoever which arise out of or are in any manner connected with CICS's operations. The foregoing provision shall not be deemed a relinquishment or waiver of any kind of applicable limitations of liability provided by the Colorado Governmental Immunity Act.

11. Transportation. The School District and CICS acknowledge and agree that transportation will not be provided to students attending CICS. If CICS subsequently determines to provide transportation during the term of this contract, CICS may contract with the School District for transportation services at cost, by separate written agreement as an addendum to this Contract.

12. Miscellaneous Provisions.

a. Entire Agreement. This Contract, with attachments, contains all terms, conditions and provisions hereof and the entire understandings and all representations of understandings and discussions of the parties relating thereto, and all prior representations, understandings and discussions are merged herein and superseded and canceled by this Contract.

b. Amendment. This Contract may only be modified or amended by further written agreement executed by the parties hereto.

c. Notice. Any notice required, or permitted, under this Contract, shall be in writing and shall be effective upon personal delivery (subject to verification of service or acknowledgement of receipt) or three (3) days after mailing when sent by certified mail, postage prepaid, to the Office of the Executive Committee, in the case of notice being sent to CICS, or to the Office of the Superintendent for notice to the School District.

d. No Waiver. The parties agree that no assent, express or implied, to any breach by either of them of any one or more of the covenants and agreements expressed herein shall be deemed or be taken to constitute a waiver of any succeeding or other breach.

e. Dispute Resolution. In the event any dispute arises between the School District and CICS concerning this Contract, including, without limitation, the implementation of or waiver from any policies, regulations or procedures, such dispute shall first be submitted to the Superintendent of the School District or his designee for review. Thereafter, representatives of the School District and CICS shall meet and attempt in good faith to negotiate a resolution of the dispute. In the event these representatives are unable to resolve the dispute informally pursuant to this procedure, they shall submit the matter to the Board for its consideration. The decision of the Board shall be final; provided, however, CICS may appeal to the State Board of Education concerning those matters within its jurisdiction under the Act.

f. Applicable Law. The parties intend that where this Contract references federal or state law that they be bound by any amendment to such laws, upon the effective date of such amendments.

g. Invalidity. If any provision of this Contract is determined to be unenforceable or invalid for any reason, the remainder of the Contract shall remain in effect, unless otherwise terminated by one or both of the parties in accordance with the terms contained herein.

IN WITNESS WHEREOF, the parties have executed this Contract as of the date first above written.

COMMUNITY INVOLVED CHARTER SCHOOL
by: President Governing Board

ATTEST: Secretary

 JEFFERSON COUNTY SCHOOL DISTRICT NO. R-1
by: President Board of Education

 ATTEST: Secretary

 APPROVED AS TO FORM AND CONTENT:
by: School District Attorney

Schedule 1

CHARTER SCHOOL CONTRACT
Business Services

The School District will provide the following business services at no cost to CICS: (1) payroll functions for CICS similar to those provided for other employees of the School District, including the preparation of W-2's and other reports that are required by state or federal law to be given to employees or filed with such agency. Employees will be paid once per month on the last working day of the month, and checks will be printed on School District check stock. When School District schools are in session, checks will be delivered to CICS. At other times, checks will be mailed to employees' home addresses. W-2's will be issued with the District's federal and state employer identification numbers. It is the responsibility of CICS to maintain all time and attendance reporting and leave data, including accruals, usages and balances. CICS shall be responsible for certifying all payroll information to the School District in compliance with timelines that allow for the sequential processing of all employees' data and the preparation of payroll checks consistent with School District requirements.

(2) An office computer terminal and connection to the School District's main frame computer and training for the use of School District accounting and computer systems. Any computer services in addition to the office terminal and connection and training may be provided to CICS at cost.

(3) Mail delivery will be provided by the School District to CICS.

(4) Access to the School District purchasing system, including the obtaining of goods at School District prices and delivery from the School District's warehouse, for routine supplies and materials.

All other purchasing services, including, without limitation, the preparation of specifications, conduct of the bidding process and evaluating goods and services may be purchased by CICS at cost, through a separate written agreement as an addendum to the Contract between CICS and the School District.

(5) Use of surplus furniture, materials and books on the same basis as is available to other schools in the School District.

CICS staff may participate in School District staff development activities and programs on the same basis as staff employed by the School District. Where a fee is required for School District staff, such fee shall be paid by Sci-Tech.

Schedule 2

CHARTER SCHOOL CONTRACT
Insurance

To the extent permitted by its policies currently in force, the School District agrees to include CICS as a named insured in the School District's coverages for acquisition of property, liability (including professional liability), and crime coverages. The School District also agrees to secure bonding for CICS personnel in accordance with the requirements of law and school District policy. The School District shall have the full authority to purchase the insurance, administer the claims, as well as provide loss control management of CICS insurance exposures. Coverages for worker's compensation and unemployment insurance are the responsibility of CICS.

For the first year of the charter, the coverages to be provided, as set forth above, and bonding of CICS personnel will be provided to CICS by the School District without charge. For subsequent school years, if the loss experience of CICS is sufficient to result in an increased expense to the School District for its insurance coverages, such coverages will be provided at a cost negotiated between CICS and the School District.

Schedule 3

CHARTER SCHOOL CONTRACT
Employee Benefits and Personnel Services

Employees of CICS shall be eligible for health, dental and vision benefits consistent with the same eligibility requirements and benefits made available from time to time for other School District's certificated and classified employee groups.

CICS will pay or reimburse the School District through appropriate funds or account transfer, the cost of providing these benefits to each employee at CICS, based upon the pro rata cost attributable to comparable employees of the School District. In the event CICS requires payment by or reimbursement from any employees for any benefits provided, the risk of uncollectibility shall be borne by CICS.