Section 1. Use of Site.

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1 Section 1. Use of Site. A. District agrees to allow Charter School exclusive use of the Site during Charter School s regular hours, for the sole purpose of operating the Charter School educational program in accordance with the Charter School s charter and MOU with the District. The Charter School s right to exclusive use of the Site shall not extend to the use of the space(s) set aside for the exclusive use of XXX or any other District Permittee located on the Site. Before the start of each school year, the principals/executive directors for the Charter School and all other programs/schools that are operating at the Site will meet and review their upcoming school year schedules with each other, and shall work together in good faith to eliminate or minimize scheduling conflicts, and to determine schedules for usage of shared space premises, so as to equitably accommodate all students. B. Charter School s right to exclusive use of the Site shall be coterminous with the term of this Agreement and shall be for the period commencing on July 1, 2005 and terminating on June 30, 2009, a term consistent with the Charter School s current charter. This Agreement shall not otherwise terminate except as provided herein. C. Charter School shall otherwise have full and exclusive use of all classrooms, administrative space, and other facilities on the Site as set forth in Attachment C. YYY shall have shared use of the space(s) to be shared with XX Academy under an arrangement to be negotiated separately with XX. The parties, YY Charter School, the District and XX hereto agree to meet prior to February 1 of each year to review and negotiate in good faith, if necessary the allocation of space for the Site as set forth in Attachment C. Nothing in this Agreement shall prevent the Charter School and XXX from renegotiating the space arrangements on an annual basis. If the Charter School and XXX fail to reach an agreement, the District shall allocate space in compliance with Proposition 39. Charter School shall comply with District policies and/or practices regarding the operations and maintenance of the facilities, furnishings, and equipment. D. Charter School shall have exclusive use of the Site during regular school hours as defined by Charter School s schedule and calendar, with the exception of the shared space with XXX. In response to unanticipated programmatic needs, Charter School shall have first priority use of the Site for all school-related programs and activities (i.e., sports programs, Open House, Back-to-School night, etc) during after school hours and Saturdays and Sundays. E. Charter School agrees to comply with the District s obligations under the Civic Center Act (Education Code section et seq.) in making use of the facilities accessible to members of the community. For purposes of compliance with the Civil Center Act with respect to the Site only, the Charter School Board of Trustees shall have the same obligations applicable to School District Boards of Trustees under Education Code sections and shall also follow District Board Policy and Administrative Regulations in making use of the facilities accessible to members of the community.

2 F. Any requests for use of the Site by third parties shall be submitted to the District s Real Estate Department. The Charter School shall comply with the District rules and regulations regarding Facility Use Permits. Any fees or revenues from rentals for third party use of non-exclusive areas at the Site will inure to the benefit of the District and not the Charter School. G. Pursuant to the requirements of Proposition 39, the allocation of space as set forth in Attachment C is based upon an assumption of 250 in-district ADA for the school year. Future requests for additional facilities based on enrollment increases may be made in the manner specified in Section of the Proposition 39 regulations (5 CCR, Section ) H. The Site shall be used and occupied only by the Charter School, with the exception of the shared space, and solely for the purpose of providing educational, instructional and related services as defined in its charter and all applicable agreements between the parties consistent with the operation and administration of the Charter School for the grade levels defined in its charter and for no other purposes. The Charter School shall not be required to provide any educational programs other than those as determined by the Charter School Board of Trustees. Changes in the type of use shall be made only upon the express written consent of District. I. The Site shall not be used for the storage of merchandise held for sale to the general public (except for merchandise related to school fund raising activities) or for lodging. No cooking shall be done or permitted by Charter School on the Site except as applicable for the purposes of providing food services to students and as related to the Charter School s curriculum. Prior to using the Site s Kitchen, Charter School s staff shall be trained by District staff in the operation of the equipment located in the Site s kitchen. J. Underwriters Laboratory-approved microwave oven, hot plates and portable equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided that such use is in accordance with all applicable federal, state and local laws, codes, ordinances, rules and regulations. The operation of before and after school and weekend programs, and holding meetings with school-related groups, in conjunction with the Charter School s programmatic usage, shall be considered consistent with the operation and administration of the Charter School under the terms of this provision. Charter School shall provide to the District a list of those third party vendors entering the Site for these purposes. K. Charter School shall not do, and shall use Charter School's best efforts to prevent any thing being done, in or about the Site or bring or keep anything therein, which will in any way conflict with any valid and applicable law which may now or hereafter be enacted, or create a nuisance, or commit or suffer to be committed any waste upon the Site, or use or allow the Site to be used for any unlawful purpose, or place any loads upon the floor, walls or ceiling which endanger the structure, or obstruct the sidewalks or passageways or stairways, in front of, within or adjacent to the Site, or do or permit

3 to be done anything in any way tending to unreasonably disturb the occupants of neighboring properties. L. To the extent that the Premises may be inadequate for interscholastic sports, the District shall make available to Charter School a gymnasium in suitable facilities of the District for scheduled interscholastic games, subject to its availability, time constraints and scheduling considerations placed on the District by its existing student activities and/or contractual obligations. M. The parties agree that the provision of facilities pursuant to this Agreement constitutes full and complete satisfaction of the District s obligation to provide facilities to Charter School under Education Code section and the Proposition 39 regulations for the 2005/2006 school year. Section 2. Furnishings and Equipment. The District shall provide, in accordance with the Proposition 39 regulations, furnishings and equipment at the Site. These furnishings and equipment shall remain the property of the District and shall be provided to the Charter School no later than seven days prior to the first day of instruction of the Charter School in compliance with 5 C.C.R., Section (g). The furnishings and equipment provided shall be equivalent to those furnishings and equipment provided in the comparison group of schools in accordance with 5 C.C.R. Section The District and the Charter School agree to exchange the mutually agreeable inventory of the furnishings and equipment that will be located at the Site within six months of the date of the agreement. Section 3. Reimbursement. In the event that the space allocated to the Charter School is considered over allocated in accordance with 5 C.C.R. Section , the Charter School shall reimburse the District under the terms set forth in the regulations. Section 4. Term. A. The term of this Agreement shall begin on its date of execution or July 1, 2005 whichever is earlier and shall end on June 30, 2009, a term consistent with the Charter School s charter. Pursuant to 5 C.C.R. Section (g), the Site shall be furnished, equipped and available for occupancy by the Charter School at least seven days prior to the first day of instruction. However, the District agrees to use its best efforts to allow full occupancy to the Charter School on or before August 1, In addition, the District has agreed to allow the Charter School management, employees and contractors access to the Site after July 1, B. Except as provided below, Charter School shall not be required to comply with the notification, time lines, and other procedural requirements of Education Code Section and State Regulations in requesting use of District facilities during the Term or Renewal Term of this Agreement. Notwithstanding this provision, pursuant to Education Code Section 47614(b)(2), the Charter School shall provide the District with a reasonable projection of the Charter School s average daily classroom attendance by in-district students no later than May 1 of each year for the following year. This

4 requirement is not a condition precedent to the continued use and occupation of the Site during the term of this Agreement. If the Charter School during that following year, generates less average daily classroom attendance by in-district students than it projected, the Charter School shall reimburse the District for the over-allocated space at rates set by the State Board of Education in accordance with all applicable regulations. C. If Charter School needs additional space or additional furnishings and equipment to accommodate additional in-district student growth for any school year during this Term or any Renewal Term, then the Charter School shall make a timely request for Prop.39 facilities in accordance with the State Regulations. The parties shall then amend the terms of this Agreement, if necessary, and the parties shall execute a new Agreement. D. The Charter Schools right to renew this Agreement shall be subject to compliance with the notification requirements of Education Code section and 5 C.C.R. sections et seq. and compliance with the terms of this Agreement. The District reserves the right to provide alternative facilities at the end of the term of this Agreement that meet the requirements of Prop. 39. Section 5. Renewal/Amendment. This Agreement may either be renewed for a successive term, consistent with the Charter School s charter or amended as necessary by mutual agreement of the parties. To avoid disruption of the Charter School s program, it is the District s intent to use its best efforts to keep the Charter School at the Site for any renewal term of this Agreement. Section 6. District s Right to Transfer the Charter School. A. The District reserves the right to move the Charter School to another Proposition 39 compliant Site if reasons exist establishing that the transfer would be in the best interests of the entire District, including Charter School students, and the failure to transfer the Charter School would result in the inequitable treatment of all students in the District. These reasons include but are not limited to fiscal and budget reasons, destruction of other school site property, natural catastrophes and academic reasons. The District will provide at least ninety days notice of the transfer to the Charter School. The District shall also strive to avoid the disruption of the Charter School s educational programs and transfer the school after the completion of the School Year. B. If the District voluntarily transfers the Charter School, the District will be subject to the provisions set forth in Section 7 of this Agreement. Section 7. Termination. A. This Agreement will terminate upon the termination or revocation of the Charter or the Charter School s material breach of this Agreement in accordance with this Agreement. B. If this Agreement is terminated due to a decision by the District to transfer the Charter School pursuant to Section 6, the District shall pay Charter School the cost of all

5 District approved capital improvements, less depreciated value based upon an annual depreciation schedule, attached hereto as Attachment D that have been made to the Site. C. Upon the termination of this Agreement, the right to exclusive use and occupation of the Site and the facilities and District equipment thereon shall revert to the District subject, to the parties negotiation of a successor Agreement, if necessary, containing the terms of the District s provision of facilities to the Charter School in accordance with the provisions of Proposition 39. As titleholder to the Site and the facilities and District equipment located thereon, the District reserves the right at the termination of this Agreement to recoup the full rights and benefits of such ownership, including but not limited to use of such Site, facilities and equipment for District services. Section 8. Facilities Fee. The District shall charge the Charter School the sum of $.88 per square foot for the Charter School s use and occupancy of the Site ( Facilities Fee ) for the school year. The District shall charge the Facilities Fee on a quarterly basis commencing with September 15, The Facility Fee shall be computed on an annual basis and may be changed on a yearly basis. Section 9. Supervisory Fee. The Charter School shall pay the District an amount equal to one percent (1%) of the Charter School revenues (excluding grants, loans, and private donations) for oversight in accordance with Education Code Section for the school year. The Supervisory Fee shall be computed on an annual basis, and may be changed on a yearly basis and the District shall not be required to produce the documentation regarding the actual costs of supervision.

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