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CAMPUS PROGRAM CHARTER CONTRACT Between SPRING BRANCH INDEPENDENT SCHOOL DISTRICT AND KIPP, INC. This Campus Program Charter Contract ("Contract") is made by and between the Spring Branch Independent School District, a public independent school district and political subdivision of the State of Texas, whose business address is 955 Campbell, Houston, Texas 77024, ("SBISD") and KIPP, Inc., the charter holder for Kipp Inc. Charter, a Texas open enrollment charter school, whose business address is 10711 KIPP Way, Houston, Texas, 77099, (“KIPP”), with an effective date of March ___, 2012 (“Effective Date”)(individually, SBISD and KIPP shall be referred to herein as “Party,” and collectively as “Parties”). RECITALS WHEREAS, SBISD and KIPP are parties to that certain SKY Compact Agreement with an Effective Date of May 1, 2011 (“SKY Compact”); and WHEREAS, the SKY Compact contemplates that SBISD and KIPP would enter an agreement for KIPP to operate a campus charter program on an SBISD middle school campus; and WHEREAS, Section 11.157 of the Texas Education Code authorizes the SBISD Board of Trustees (“SBISD Board”) to contract with a public or private entity for that entity to provide educational services for SBISD; and WHEREAS, pursuant to Applicable Law (as hereinafter defined), KIPP, as an open enrollment charter school, is part of the public school system of Texas; and WHEREAS, Section 12.0521(a)(2) of the Texas Education Code authorizes the SBISD Board to establish a charter campus program by entering a contract with KIPP for the provision of educational services at a facility within the boundaries of SBISD; and WHEREAS, the SBISD Board has adopted policies EL (Legal) and EL (Local) to set forth the authority and requirements for the operation of an SBISD charter campus or program; and WHEREAS, SBISD and KIPP desire to enter into this Contract under the terms and conditions set forth herein for the establishment of a campus program charter. NOW, THEREFORE, for and in consideration of the mutual covenants, representations, and agreements set forth in this Contract, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties mutually agree as follows: ARTICLE I PURPOSE OF THE CONTRACT 1.01 Mission and Objectives. SBISD’s overarching focus is to graduate all SBISD students on time from high school and help them be in a position to go on to complete either a two-year technical degree, a two-year associate’s degree, or a four-year bachelor’s degree. KIPP’s mission is to develop in underserved students the academic skills, intellectual habits, and qualities of character necessary to succeed at all levels of pre-kindergarten through 12th grade, college, and the competitive world beyond. SBISD and KIPP believe and agree that they have a collective obligation to ensure that students graduate from high school prepared to succeed in college, work, and life. SBISD and KIPP believe that by granting KIPP a campus program charter within SBISD, SBISD and KIPP can work to better their focuses and missions and that by working together in a cooperative and collaborative manner, they can work to achieve their goal of best preparing students to succeed in college, work, and life. 1.02 Location of Charter Campus Programs. Beginning in the 2012-13 school year, KIPP will operate a campus program charter KIPP Courage College Prep (“KIPP Courage”) as a campus/program charter located in a portion of Landrum Middle School (“LMS”) at 2200 Ridgecrest, Houston, Texas, 77055. The Parties will collaborate to determine the areas and locations within LMS in which KIPP Courage will be located with the understanding that the KIPP Courage class offerings will be grouped in classrooms within the same part of the LMS Premises (as hereinafter defined). 1.03 Grades Served by KIPP Courage. Beginning with the 2012-13 school year, KIPP Courage will serve students in grade five at LMS and will add a grade each subsequent year during the Term, as that term is hereinafter defined, such that by 2015-16 and succeeding years, KIPP Courage will serve students in grades five through eight. Beginning with the 2015-16 school year, YES Prep Public Schools, Inc. (“YES Prep”) will operate a campus program charter at Northbrook High School (“YES Prep NHS”), which will serve students in grade nine and will add a grade each subsequent year during the per the terms of the charter contract between SBISD and YES Prep such that by 2016-17 and succeeding school years, YES Prep NHS will serve students in grades nine through twelve. KIPP Courage students will be deemed zoned to attend YES Prep NHS. The specific, final numbers of students to be enrolled within the anticipated enrollment figures above will be determined by the Parties. ARTICLE II DEFINED TERMS 2.01 Definitions. Any capitalized term used in this Contract shall have the meaning set forth in herein and in any Addendum. To the extent that such term is not otherwise defined, definitions will be set forth in an appendix to be attached to this Contract. 2 ARTICLE III RELATIONSHIP OF THE PARTIES 3.01 Nature of the Relationship. The relationship between the Parties hereto shall be that of contracting parties. KIPP will operate as an independent contractor to SBISD and will be responsible for delivering the services required by this Contract. The relationship between and among the Parties was developed and entered into through arms-length negotiations and is based solely on the terms of this Contract and such contracts and agreements as may be created in the future from time to time between the Parties. 3.02 No Common Control. Neither Party is a division, subsidiary, affiliate, or any part of the other Party or has the right or authority to exercise any common control of any other Party. Nothing herein will be construed to create a partnership or joint venture by or between the SBISD and KIPP. 3.03 No Agency. Neither Party will be the agent of another except to the extent otherwise specifically provided by this Contract. Neither Party has the express or implied authority or will in any case represent to third parties, and will whenever needed disclaim to such parties, any ability to bind the other Party to any duty imposed by contract, other than this Contract, unless the Party on which such duty is to be inferred has specifically authorized such action at a meeting of that Party’s governing board held in accordance with the Texas Open Meetings Act (appearing in minutes of such meeting) and as agreed in writing by that Party. ARTICLE IV GOVERNING STRUCTURE OF THE CHARTER SCHOOL 4.01. Governance Under SKY Compact. The SKY Compact provides for the superintendents of SBISD, KIPP, and YES Prep Public Schools, Inc. (“YES Prep”) (individually, any one of the superintendents shall be referred to herein as “Superintendent” and collectively, the superintendents are referred to herein as “Superintendents”) to have administrative oversight and decision-making authority regarding actions taken with respect to the SKY Compact subject to approvals that may be required by the respective governing boards of SBISD, KIPP, and YES Prep. The Superintendents of SBISD and KIPP have identified key personnel within their respective organizations to serve on a steering committee and on academic and operational working groups to identify and resolve any issues relating to and to provide advice on implementation of the KIPP Courage Program. As used herein, the term “Program” involves all components of the operation of KIPP Courage campus program charter, including, without limitation, the grade levels served, the courses taught, the instructional materials, transportation and other services, and the other responsibilities of each of the Parties to this Contract.. 4.02. Governance of Campus Charter Program. The principal of LMS, an SBISD employee, (“LMS Principal”) and the School Leader of KIPP Courage (“KIPP Courage School Leader”) and their delegees will be responsible for their respective organization’s requirements and authority for day-to-day operations of the Program. The LMS Principal shall be responsible for all students who attend LMS but are not enrolled in the KIPP Courage Program; for the management of SBISD employees assigned to the LMS campus; for the building and facilities, except as otherwise may be set forth herein; for collaborating with the KIPP Courage School 3 Leader for shared use of the common areas of the LMS campus and for shared use of SBISD equipment and materials; in collaboration with the KIPP Courage School Leader, for Program students when they are engaged in non-KIPP Courage activities; and other duties as may be required of LMS for the implementation the Program. The KIPP Courage School Leader shall be responsible for all Program students during the time they are in engaged in Program classes and activities and in collaboration with the LMS Principal for Program students when they are engaged in non-KIPP Courage activities; for classroom use by KIPP; for KIPP materials, equipment, and supplies; for ensuring proper use of any equipment and materials loaned to KIPP by SBISD or assigned for use to KIPP by SBISD; for the management of KIPP employees assigned to the Program at the LMS campus; for ensuring proper use of the SBISD building and facilities by KIPP employees; for collaborating with the LMS Principal for shared use of the common areas of the LMS campus and for shared use of SBISD equipment and materials; and other duties as may be required by KIPP for the implementation the Program. The authority of the LMS Principal and the KIPP Courage School Leader are subject to this Contract, Applicable Law, the board-adopted policies of their respective organizations, and any approvals required by the Superintendents.

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