CONTRACT AMENDMENT NO.1 Ann Arbor Learning Community In accordance with Article IX of the Terms and Conditions of the Contract ("Contract") dated July 1,2009, between EASTERN MICHIGAN UNIVERSITY BOARD OF REGENTS ("University Board") and ANN ARBOR LEARNING COMMUNITY (the "Academy"), the parties agree to amend the Contract. New Educational Service Provider Agreement Therefore, the Contract shall be amended as follows: • Amend Contract Schedule 5 Description of Staff Responsibilities by adding a new Educational Service Provider Agreement. All Amendment documents are attached to this Contract Amendment #1 Agreement. This Amendment shall take immediate effect. This amendment is hereby approved by the University Board and the Academy through their authorized designees. Dated: \ \ \ , alv e Winborne, irector, Univer y Charter Schools Office Desi&ll ~the Universi¢ BoarJl Dated: By: Academy B Designee ofthe g\ ,~ \ g J~-J {)OG EASTERN MICHIGAN UNIVERSITY Charter Schools Attachment B CONTRACT AMENDMENT NOTIFICATION FORM Please provide the information requested below to the Charter Schools Office (CSO), and include all appropriate supporting documentation: Name of Academy: Ann Arbor Learning Community Academy Board Designee:._T.:..e"'d=-L::;a"'y"'h.::;er:.- Title: Board President Designee's Organization Menlo Innovations Work Number (734) 665-1847 Fax Number: (734) 665-2990 Cell Number: (734) 834-0590 Email: t1ayher@gmail.com Please select the appropriate box(es:) Contract Amendment Requested (check all that apply) IZI Contract Schedule 5: Description of Staff Responsibilities D Position Description(s) IZI Educational Service Provider Agreement D Contract Schedule 6: Physical Plant D Physical Plant Description D Site Plan(s) D Scaled Floor Plan(s) D Facility Lease(s) D Facility Financing Agreement(s) D Contract Schedule 7c: Educational Programs D Contract Schedule 7d: Curriculum D Contract Schedule 7e: Methods of Pupil Assessment D D Contract Schedule 7f: Application and Enrollment of Students Matriculation Agreement(s) Max Enrollment Increase D D Contract Schedule 7h: Age or Grade Range of Pupils D Add grade(s) D Remove grade(s) Certific~lon: : IJ I herFb~¥I.Gertify the inf%.m~on includ~ in this checklist is complete and aCGurate to the best of my knOWledge ..-aAd1ic~owledge thEj;,~emy Boaj<l's obligation to promptly inform the CSO of any material changes. siwlatu;. oi Board~Pr.siii~;'t '07"1%.~~~ !; U Date . Submission: Please submit the completed form to the Charter Schools Office, Malverne Winborne, Ph.D., Director, 310 Porter Building, Eastern Michigan University, Ypsilanti, MI 48197 or email: charter schools@emich.edu. Rev. 13·0430 Charter Amendment AppJication Contract Amendment Notification Form Page 1 of 1 EASTERN MICHIGAN UNIVERSITY Charter Schools Schedule 1 PROGRAMMATIC CHANGES CHECKLIST Please check all sections proposed for amendment. rgJ Charter Contract Schedule 5: Staff Responsibilities o The Charter Contract Terms and Conditions provides the Academy Board the flexibility to employ or contract for personnel. Staffing levels should be sufficient to enable effective implementation of the Academy's Educational Program. The following items are required to be included in proposed changes to existing or newly developed position descriptions: • Tille(s) of positions(s) • Reporting relationship (the position's supervisor) • Name of employer (Academy Board or Educational Service Provider) • Criminal background check requirement • Qualifications, including education level and experience All proposed new or changed position descriptions have been submitted and include all of the attributes listed above: Yes 0 No 0 Please explain a No answer: rgJ If the Academy Board is considering contracting with an Educational Service Provider (ESP) (or amending its current ESP Agreement), then the Academy Board is required to comply with the Charter Schools Office's ESP policies. The current version of these policies is located on the Charter Schools Office's website http://www.emich.edu/charter/noflash/loginlindex.html. As a reminder, and for those academies that have not previously entered into an ESP agreement, the Charter Schools Office's ESP Policies require that any proposed ESP Agreements be submitted to the Charter Schools Office at least 3D-days prior to execution. Specifically, the submission to the Charter Schools Office is required to include the following: • Board-reviewed, draft ESP agreement • A written statement regarding the ESP's experience in providing services • Draft legal opinion • ESP Information Sheet • Pre-approval Board Certification document o ESP Policies Compliance document All required documentation in the ESP Policy has been submitted to the Yes Rev. 13-0430 rgJ No eso: 0 Charter Amendment Application Schedule 1: Programmatic Changes Checklist Page 1 of 5 10/21/2013 13:27 FAX 2483180187 I,CCESS POINT 141002/018 e.s:;APEMY SERVICE AGREEMENT This Agreement is entered Into by and between AP Educational HR, LLC ("AP HR"), a Michigan limited liability company, its affiliates, subsidiaries and assigns ("AP HR") and Ann Arbor leaming community ("Academy"), a Michigan nonprofit corporation and governmental entity and Is effective on August 4, 2013 (the "Effective Date"). AP HR is in the business of offering and providing employment Of staff to work in Michigan public sohool acedemies, including empioyee administration and Employment Related Risk management services, These services inolude but are not limited to, staff employment, payroll, benefit administration, and other similar services, AP HR agrees to provide and Academy wants to retain Employee Administration (which inciudes employment of staff, payroll and benefit administration ano other related services) and Employment Related Risk Management services (the "Services") from AP HR; furlher, staff working at the Acedemy employed by AP HR will undertake all HR operational duties required under the Academy's charter contract with the Eastern Michigan UniversitY Soard of Regents. AP HR, as employer of such staff, shall take responsibility for the performance of such duties and shall ensure that HR processes are created and put in place to ensure the full ~nd timely performance of suoh duties. Before entering Into this Agreement, Academy and AP HR engaged in negotiations and eXchanged information in order for both parties to ascertain the nature ~nd eKlent of their working relationship ~nd this Agreement. Both parlies warrant that the information provided w~s and remains complete and accurate as of the effective date of this Agreement. AP HR has accepted current Aoademy st~ff and determined to employ said staff, sUbject to satisfactory results on criminal background and unprofessional conduct checks further described herein and further subject to assesoment of prOfessional certifioatlons as required by ~pplicabie iaw, Ac~demy is a Michigan Public Sohool Ac~demy providing pUblic school instruction as ~ charler school located at 3980 Research Park Drive, Ann Arbor, MI 48108, pursu~nt to a contract ("Contract") issued by the Eastern Michigan University Charter Schools Office ('CSO"). Academy operates under the general direction of its Board of Directors ("Board"), and relies on ils staff to undertake all operational duties. Employees of AP HR providing servioes at the Ac~demy are hereinafter referred to as "Covered Employees". The Academy shall designate the Covered Employees who having a legitimate educational interest In access to eduoation record Information as "school olficials, pursu~nt to tha Family Educational Rights and Privacy Act, 20 U,S.C. Section 1232g. 1. TERM, This Agreement shall begin on September 1, 2013 (the "Effective Date"), and shall continue until December 31, 2014 (the "Initial Term"), If this Agreement is not terminated during lis innlal or any successive term, this Agreement shall renew automatically for successive periods of one (1) year, unless either party notifies the other of its intent not to renew this Agreement. Nolice of nonrenewal mUst be given at least sbdy (60) days before the expiration Of the Initial or any Successive Term and, whenever reasonable, service shall not termin~te until the end of the instructional year. The parties acknOWledge thaI any Contraot reauthori,ation with eso may require Academy and APHR to submit an entirely new Agreement for review by CSO. ,his contract shall not become effective unlil the Academy receives notice from CSO thai CSO does not disapprove of the terms and conditions herein, This Contract shall not be effective beyond the term of the Academy's Charter. The Maximum term of this Agreement shall not eKceed the length of the Charter Contract. 2. SECURITY DEPOSIT. AP HR agrees to waive any security deposit 3. FEES AND CHARGES. Academy aljrees that it is responsibie for paying to AP HR, lhe followinlj fees and charges, a, SET UP FEE:. Academy agrees to pay AP HR a one-time non-refundable set up fee in the amount of $2,000.00 (two thousand dOllars). The set-up fee is due at the time this Aljreement is signed by the parties, b. SERVICE FEE, Academy aiso agrees that it will pay AP HR a service fee as describeo in the Rate Sheet attachad and incorporated into this Agreement. The partie; "gree that lhe s"Nlce fee InclUdes all employee wages and payroll taxes and contributions as well as AP HR's administrative fee. Academy acknOWledges that the service fee represents compensation to AP HR for rendering the services agreed to In Page 1 9524420.134562/162959 10/21/2013 13:27 FAX 2483180187 ACCESS POINT ~004/018 i. COBRA CHARGES. Upon termination of this Agreement for any reason. Academy agrees to pay AP HR the sum of One Hundred Dollars (S100.00) per month for each Covered Employee who elects COBRA continuation coverage under any AP HR sponsored or administered Group Health Pian for each month of such election. Academy agrees to pay AP HR the sum of One Thousand Dollars ($1 ,OOO,OO) per month for each such Covered Employee who becomes employed by Or provides services to Acedemy or any entity affiliated with or controlled by Academy during the applicable COBRA eligibility period. Academy's obligations pursuant to this section shall terminate upon expiration of the respective Covered Employees' COBRA eligibility period. Further, in the event that at any lime during the Term or following termination of this Agreement AP HR administers COBRA coverage for any Covered Employee, AP HR reserves the right to charge a reasonable administrative fee for this service; provided that nothing herein shail be construed to obligate AP HR 10 administer COBRA coverage under a group plan maintained by Academy. 4. DEPOSIT OF ACADEMY FUNDS. The Academy Board's Treasurer shall direct that the deposit of all funds received by the Academy be placed in the Academy's depository account as required by law. The signatories on the Academy Board accounts shall SOlely be Academy Board members. Interest income earned on Academy aooounts shall accrue to the Academy. AP HR has no Intent and will take no action whatsoever with respect to the Academy'S depository account except as otherwise prOVided in this agreement. 5. ACADEMY PAYMENT OF FEES AND EXPENSeS TO AP HR. The Academy Board must pay to AP HR the fees and expenses associated w~h the Academy's HR services prOVided that documentation for the fees and expenses are provided timely for payment. Academy Board ral~ication will not be reqUired prior to payment, nor is it e oond~lon for payment No corporate costs of AP HR shall be Charged to, or reimbursed by the Academy. To achieve the timely payment of faes and expenses to AP HR, the Academy and AP HR have entered into an electronic fund transfer agreement ("ACH") dated August 19, 2013, which is incorporated herein. The purpose of the-agreement for the eleotronic transfer of funds is to enable AP HR to initiate through its agent benk. the eiectronic transfer of funds owed to AP HR by the Academy Board for payroll, pe",onnel and human resource management services. The electronic fund transfer agreement authorizes AP HR to instruct Fifth Third Bank to act as Its agent and to inillate electronic fund transfer of such funds from the Academy 80ard'. checking acoount to AP HR's bank, Fifth Third Bank. AP HR shall notify the Academy Board the day before the electronic fund transfer is scheduled of the amount to be transferred. The Academy Board warrants to AP HR that the necessary funds will be in the account and avaiiable for transfer. The Academy Board has the right to terminate the Electronic Fund TranSfer Agreement upon giving AP HR ten (10) days written notice of Its intent to terminate the Electronio Fund Transfer Agreement (EFTA). Termination of the Electronic Transfar Agreement shall not negate the Academy Board's obligation to pay AP HR for services rendered and invoices outstanding. Unless an acceptable a~ernetive method of payment is provided to AP HR, such notice of tennination of the EFTS shall act as a termination of the agreement immediately and AP HR shall be immediately paid in full for all outstanding invoices due and owing, 6. THE EMPLOYMENT RELATIONSHIP. AP HR will exolusively employ Academy's Covered Employees and aocepts full liability for benefrts. salaries, workers' compensation, unemployment compens.tion end liability insurance for such emplOyees subject to the terms of this Agreement. As the employer of Covered Employees, AP HR may subcontract to one or more other entities to assess or furnish certain information related to administrative qualifications (e.g, certification, criminal background cheok contents), AP HR shall, however, remain accountable to the Acedemy for the perfonnance and qual~y of such subcontraoted work. The parties agree that the tenn. of this Agreement affect only AP HR and Acedemy, and create no contract nor convey any right. to Academy's employees. AP HR shall have exclusive right of direction and control over Covered Empioyees, As a general proposition Academy shall govem its business operations and related matte", and shall adopt policies end administrative guidelines to be adhered to by AP HR. Dey-to·day operational control of Covered Employees, however, shell be at ail times vested in AP HR. AP HR reserves authority over human resources. managerial, and related administrative functions, all as more specifically provided baiow. All payroll, benefit, and personnel polioies and procedures for Covered Employees shall be established by AP HR. Evaluation and compensalion systems shall comply with the Miohigan Revised School Code ("School Code"). During the term of the Agreement. AP HR shall have the right and authority to implement and supervise Academy's policies and procedures relating po"" 3 9524420.1 34562/162959 10/21/2013 13:28 FAX 2483180187 ACCESS POINT !iID008/018 to the Covered Employees contrary 10 this Agreement, Academy shall be solely responsible for all taxes, reporting req~irements and other liabil~ies with respect to those payments and the work performed by Covered Employees for s~ch payments shall be deemed solely for the benefit of Academy and o~tside the scope of Covered Employee's employment with AP HR. The parties agree that AP HR shall set the rate Of pay of the Covered Employees based on consultation With Academy. Changes in Covered Employee wages and compensation shall become effective only when agreed to by AP HR. (il) Subject to Academy's complete, timely and accurate reporting of wages or hours worked, AP HR shall provide payroll administration and timely payment of all applicable employer-related taxes including federal and state income tax wlthholdings, federal and slate ~nemployment taxes, Social Security taxes, and any other applicable federal, state or local employment-related taxes. b. AP HR shall maintain state mandated workers' compensation coverage on Covered Employees. AP HR Shall also provide loss prevention and claims management services consistent With Its policies and procedures; c. Provision and administration of Covered Employee benefits as mutually agreed; proced~res: d. Establishment of appropriate workplace employment and safety risk management policias and and e. Provision of other human resources services consistent with AP HR's policies and procedures. Subject to the terms and conditions of this Agreement, AP HR retains the right of direction and control over the Covered Employees oommenSUn;lte with its responsibility to perrorm the employer responsibilities listed above, including a right and obligation to hire, eval~ate, discipline, layoff and terminate Covered Employees. In the event of an employment-related i.sue that the Academy Board becomes aware of, Academy agrees to Immediately contact AP HR, which will then ass~me responsibility fOr any follow up investigation, discipline, tennination or other further action. AP HR also reserves authority to; Investigate, resolve and decide Covered Employee disputes and grievances, subject to any applicable collective bargaining agreement In place during the term of this Agreement reassign employees from one Academy work site to another when required by or not conflicting With Academy's rights and business necassily and subject to the teoms of any applicable collective bargaining agreement; and designate on-site supervisors to assist with administrative and personnel matlers on Academy'S premises during business hours. AP HR retains the right to change the classification codes, where necessary. to comply With the guidelines set forth by the National Council on Compensation Insurance (NCCI) or applicable state regulatory agency. AP HR also reserves a right of direction and control over management of safety, risk and ha~ard control at the worksite or sites affecling Covered Employees. including, with regard to Covered Empioyees; responsibility for periorming safety inspections of Academy equipment and premises: responsibility for the promulgation and administration of employment and safety policies; and responsibility for the management of workers" compensation claims, claims filings, and related procedures. AP HR agrees to make every effort to act in the Academy's besllnterest In exercising Its rights as contemplated herein, 7. INDEPENDENT CONTRACTOR RELATIONSHIP. The parties agree that AP HR provides its services to Academy as an independent contractor, and the provision of the services shall not be cOnstrued to create an employer/employee or agency reletionship, The parties acknowladge a contractual allocation of employment rights and responsibilities regarding Covered Employees. Except as expressly stated In this Agreement. neither party has the right or authority to assume or create any obligation, liability. or responsibility on behalf of the other, or to hold Itself out as an agent or representative of the other. 9524420.1 34562/162959 10/21/2013 13:28 FAX 2483180187 ACCESS POINT 1lJ008/018 Following agreement regarding the structure 01 the evaluation tool with AP HR, through its staff at Academy, shall be solely and exclusively responsible for the performance and maintenance of Administrator and Tea~her Evaluation Systems that comply with Sections 1249 and 1250 of the RevISed School Code," eccordance Withe procedure approved by AP HR. AP HR shall utilize the final performance evaluations for Covered Employees In accordance with applicable iaw, in assessing the Covered Employees' qualifications for continued employment, wage adjustment. promotion, disciplinary action, and termination subject to state. federal, and local iaws. AP HR reserves final decision-making authority With regaro to any SUch employment acllons. 9. COOPERATION IN DEFENSE OF CLAIMS AND LITIGATION. The parties agree to cooperate fully to defend against claims brought against either AP HR or Acaoemy. Academy specifically agrees to cooperate lully when asked to assist AI" HR in defending against unemployment and Workers' Compensation claims and against all employment claims and litigation. Academy agrees that its cooperation includes. but Is not limited to completion of injury. disciplinary and termination reports, attendance at referee, magistrate and court-related hearings, participation as a witness where requested, answering questions and interrogatories and providing AP HR and its repre.ent"tives with access to non- AP HR files important to the defense 01 such claims and litigation. 10. iNSURANCE. The parties acknowledge and agree that they will provide insurance requirad by law and otherwise as stated in this Agreement. a. WORKERS' COMPENSATION INSURANCE TO BE OBTAINED BY AP HR. Unless otherwise mutually agreed in writing, AI" HR agrees that it will fumish and maintain in fuillorce and effect at ali times during the Term of this Agreement, state mandated Workers' Compensation Insurance COVering all Covered Employees, b. INSURANCES TO BE OBTAINED BY ACADEMY. Academy agrees that it will furnish and maintain in lull force and effect at all times during the Term of this Agreement, commercial general, business, products liability, and aula insurance, or such other insurance as Academy's business operations necessitate and as AI" HR may reasonably require. The commercial general liability insurance will insure both bodily injury and property damage liability, including blanket prOducts, completed operations, personai Injury and contractual liability in an amount not lees than One Million ($1,000,000) Dollars per occurrencelTwo Million ($2,000,000) Dollars aggregate per location (Combined Single Limit for Bodily Injury and Property Damage). The allto liability insurance will cover all motor vehicie operations for which Academy is legally responsible. The insurance will cover hired and non-owned vehicles, uninsured/underinsured molorist coverage, and any personal injury end property damage· protection required by an applicable state's "no-Iaull" insurance laws. The minimum combined singie limit of the coverage will be in an amounl not less than One Million ($1,000,000) Dollars per occurrance, Although not required, AP HR strongly recommends and urgas Academy to carry minimum Workers' Compensation insurance as follows: Statutory Workers' Compensation coverage; Five Hundred Thousand ($500,000) eech accident; Five Hundred Thousand ($500,000) bodily injury by disease each employee and policy limit; and Five Hundred Thousand ($500,000) Employers' Liability Broad Form All Stales Compensation Coverage, With voiuntary compensation endorsement. c. PROFESSIONAL LIABILITY INSURANCE. Academy shall provide professional liability insurence, including sexual abuse coverage, in the amount of $1,000,000 naming AP HR as an additional insured. Acedemy shali maintain a Workers' compensation policy With an "if only" provision. d. AP HR M,U.S.LC. INSURANCE COVERAGE. AI" HR shall maintain any insurance policy in the amount required by the Charter Contract and the Michigan Universities Seif Insurance Corporation. In the event the University or M.U,S.I.C. requests any change in coverage by AP HR, the AI" HR agreeS to comply wtth any change in the type of or amol,"t of coverage. as requested, within thirty (30) days efter notice of the insurance coverage change. The AP HR Insurance is separate from and in eddltion to the Insurance the Academy Board is required to obtain under the Contract, e, WAIVER OF SUBROGATION. each party agrees to release and forever discharge the other, and any officer, agent, employee or representative of the olher party, from any Iiabiiity arising from loas, damage or Injuri, for any reason, for which insurance is carried by the party providing this weiver. to the extent of any recovery Uf payment pursuant to such insurance policies. The parties agrae that they will have tilelr respective insurance policies endorsed to allow for this waiver, to the extant necessary to execute this provision. Pogo 7 9524420.1 34562/162959 10/21/2013 13:28 FAX 2483180187 ACCESS POINT 141010/018 right to assert, or not to assert, governmental immunity. This provision shall be read as supplemental to and consistent with the other indamnification provisions in this Agreement. To the extent a trier of fact or law finds any inconsistency between w~h provision and any other indemnification provision in this Agreement, this provision shall be controlling. 13, MATERIAL BREACH OF CONTRACT BY ACADEMY, Notwithstanding other provisions of this Agreament, a party may, at any time, terminate this Agreement for the other party's material breach of the Agreemant, if the breach Is not cured within a reasonable penod of time, not to exceed thirty (30) days, and provided that the non-breaching party provides the breaching party With wriUen notice Of the breach prior to the breaching party's opportunity to cure. If the nature of the braach of this Agreement is SUCh that thirty (30) days is not enough time to cure, then the party ehall not be deemed in breach If ii begins to cure wnhin the thirty (30) day period, diligently continues to cure the breach, and the cure is completed within sixty (60) days from the non-breaching party's notice. Within three (3) days of receipt of a notice that a party is in material breach of this Agreement, the breaching party agrees that ~ will provide written response to the other stating its agreement to cure the breach and specifying its plan of action. If the nature of the breach is such that irreparable harm may be or has been caused to the non-breaching party, or ~ the nature of the breach is such that a cure is not possible, then termination of this Agreement will be effective immediately upon notice of same to the breaching party, A material breach of this Agreement bY Academy includes, without limitation: failure to pay any fees or charges when due; failure to comply with any reasonable directive from AP HR as required or allowed in this Agreement; failure to comply with any laW or governmental rule or regulation regarding personnel issues or workplace or worker health or safety: committing any act that usurps AP HR's rights as employer of Covered Employees as stated In this Agreement: failure to provide and maintain any insurance required by this Agreement or by law, rule or regulation; failure to disclose any past, present or known potential unemployment, Workers' Compensation, labor dispute, or employment problems or risks; failure to compietely and accuralely disclose any past, present or known potential prOblems, risks or changes to employees' employment histories 01 haalth situations, inclUding but not limited to separations or physical, mentai or emotional disorders: or failure to immediately notifY AP HR of any material change in Academy's current business operations. A material breach of this Agreement by AP HR includes, wilhout limitation, and provided Academy is otherwise in compliance with the Agreement:. failure to provide and maintain insurance: or faiiure to remit required withholding taxes, and any action or inactiOn by AP HR that is not cured w~hln 60 days of notice thereof which causes the Charter Contract to be revoked, terminated, suspended or which causes the Charter Contract to be put in jeopardY of revocation, termination or suspension by Eastern Michigan University, 14. REVOCATION or TERMINATION of CHARTER CONTRACT BY EASTERN MICHIGAN UNIVERSITY, If the Academy's Charter Contract issued by the Eastern University Board of Regents is revoked. terminated, or a new Charter Contract is not issued to the Academy after expiration Of the Academy's Contract, this Agreement shall automatically terminate on the same date as the Academy's Contract is revoked, terminated or expires without further ection Of the parties, 15, TERMINATION OF AGREEMENT, In addition to eilher party's ability to elect to not renew this Agreement, as prOVided in Paragraph 1 above, and e~her party's ability to terminate this Agreement for matenai breach of this Agreement as prOVided for in Paragraph 13 above. this Agreement may be terminated during its Term in the event of Academy's bankruptcy, assignment for the benefit of creditors, dissolUtion, receivership or other cessation of Academy's business, Academy further agrees to provide AP HR with written notice of any fect or circumstance which couid reasonably result in any such event. The parties shail endeavor to provide for the provision of services through the end of the inslr1,Jc/ionai year, AP HR and the Academy shall work together tc ensure a smooth transition of operations. 16. EFFECT OF TERMINATION. The parties agree that termination of this Agreement ior any reasOn will not relieve Academy frOm any of its obligations or liabilities to AP HR pursuant to this Agleement which arose or accrued prior to the termination, including but not limited to payment of any outstanding faes or charges and reimbursement of any health insurance, Workers' Compensation or unemployment claims or liabilities incurred by AP HR which are Academy'. responsibility pursuant to this Agreement. Academy acknowledges and agrees that termination of this Agreement for any re8S011 will result in termination of Workers' Compansetion coverage for all Covered Empioyees effective 12:01 a,m, on the date the Agreement is terminated. The parties also agree that the cooperation reqUired by this Agreement, as expressed in Paragraph 6, survives expiration or termination Plilgf) It 9524420, I 34562/162959 10/21/2013 13:29 FAX 2483190197 ACCESS POINT @012/018 23. COMPLIANCE WlrH SECTION MCl 380,503C. On an annual basis, AP HR agrees to provide the Academy Board with the same Information that a school district is required to disclose under section 18(2) of the State School Aid Act of 1979, MCL 380.1616, for the most recent school fiscal year for which the Information is available. Within thirty (30) days of receipt of this information, the Academy Board shall make the information available on the lIcademy's website home page, in a fOI1Tl and manner prescribed by the Michigan Departm.ent of Education. The defined terms in section 503c of the Code. MCL 380,503c, shall hove the same meaning In thiS Agreement. 24. INFORMAIiON TO BE PROViDED BY ESP. AP HR shall make information concerning the operation and management of the Academy, Including without limitations the Information described in SChedule 8 of the Acedemy's Charter Agreement with Its Authorizer, available to the Academy as deemed necessary by the Academy Board in order to enable the Academy to fully satisfy ~s Obligations under the law." SUCh Information will be developed by AP HR employees designated by the Academy as having the requisite knowledge of the operations and management of the Academy. 25. MARKETING and DEVELOPMENT COSTS. Marketing and development costs paid by or Charged to the academy shall be limited to those costs specific to the Academy program, and shall not inclode any costs for marketing and development of AP HR. 26. PURCHASING OF EQUIPMENT, MATERIALS AND SUPPLIES. If AP HR purchases equipment, materials and supplies on behalf of or as the agent of the Academy, such equipment materials and supplies shall be and remain the property of the Academy. AP HR shall comply with the Revised School Code (InCluding but not limited to Sections 1267 and 1274) as if the academy were making these purchases directly from a third party supplier, Where AP HR prooures equipment. materials and supplies at the request of or on behalf of the Academy, AP HR shall not include any added fees or charges wfth the cost of equipment, materials and supplies purChased from third parties. 21. MISCELLANEOUS. a. ASSIGNMENT. The parties agree that Academy will not assign this Agreement, its rights or duties under the Agreement, or any interest in the Agreement, without AP HR's prior written consent. The parties also agree that AP HR may assign or delegate Its rights and duties under this Agreement to any AP HR subsidiary or affiliated entity, provided that the assignment or delegation does not relieve AP HR of its obligations under the Agreement and further prOVided that the Parties provide prior notification to the Academy's authorizing body, that any assignable party Shall be considered and ESP and be subject to the Academy's authorizing body's ESP Policies and such assignable party shall follow the ESP Policies.. b. INrEGRATION. This Agreement and the Addenda or Exhibits attached to it, constitute the parties' entire agreement regarding the SUbjects contained in the Agreement. This Agreement supersedes all prior agreements and negotiations, whether oral or written. No other agreement. statement, promise cr practice between the parties Shall be binding on the parties. Changes to this Agreement and its Addenda or Exhibits may only be made by the parties' mutual written agreement. c. WAIVER OF BREACH. The parties agree that failure by either party at any time to require performance by the other party or to claim a breach of any provision of this Agreement will not be construed as a waiver of any subsequent breach nor affect the effecliveness or validity of the Agreement or any of ils parts, nor ber either perty from SUbsequent enforcement or breach of the Agreement. d. GOVERNING lAw' The parties agree that this Agreement will be gOVerned and construed according to the lews of the State of Michigan. e. ATTORNEY FEES, In the event that any aelion is brought by either party as a result of breaCh or default of any provision of this Agreement, each party shall be responsible for payment of its own cosls and attorney fees. f. NOTiCES. Any notice to be give" under this Agreement will be deemed given if made in writing and sent by certified mail to the respective party's address as stated in this Agreement. p(l.g& 11 9524420.1 345621I 62959 10/21/2013 13:30 FAX 2483180187 ACCESS POINT ~014/018 i. Amendment. In the event this Agreement is emended, the submission requirements contained in Section A of the eso Educational SeNice Provider Policies. AP HR amendments will be added 10 the Academy's Charter Contract through the Charter Contract amendment precess Identified in the Charter Contract Terms and Conditions. THE PARTIES AFFIRM THAT THeY HAVE ReAD AND UNDERSTAND, AND AGREE WITH THE TERMS OF THIS AGREEMENT. AP Educational HR, LLC Ann Arbor Le~rning Colnmu,llity 1_, By: Its: Deted: A II / I I ~ (:) ZtSident/ Iv Pago 13 9524420,1 345621162959 10/21/2013 13:30 FAX 2483180197 Set uo benefit deductions In pay system Forward applications electronically to providers to ensure accuracy Confirm enrollment to emolovees via e-mail C. BENEFITS ADMINISTRATION Reconcile and pav monthly bills for each olan Research benefits cove",~ Issues Fulfill employee requests for Information Within 24 hours Assist employees with covelO"e chanoes Notify payroll of deductions, changes Assist emplovees with claims Issues Manaoe liaison and relatlonshio with Droviders Write and distribute benefits bulletins Provide manaoement reool'lS Plan annual Open Enrollment Open Enrollment orientations to employees to explain plan enhancements D. IlEALTH INSURANCE Offer a choice of medical dental and vision Dlans Offer choice of life insurance, AD&D, short and long term dlsabilltv Dian. Control for receipt of ennollment Rrocess Ensure employees under.tand late entrant r;.k$ (ERISA) Enrollment after emDlovment status changeslPT to FT) A>$emble and upload benefit enrollment and educational materials Maintain regulations related for SPO avallabllltv E. GROUP TERM LIFE AND DISABILITY Calculate orem/urns and coverage limits Resoond to employees aue.tlons Process coverage ~nd beneficiary changes Track ~nd proce.s optlon~' additional coverage Distribute plan summaries F. FLEXIBLE BENEFITS PLAN Maintain and balance flexible spending accounts Process and remit employee claims Provide online balance tracking Review ellglbilltv for ore-tax treatment Review receipts to a••ure they comply with IRS Preoare and respond to IRS Audits Preoare and file form 5500 Get new enrollment ferms annuallY G. 401K PLAN ADMINISTRATION ~ ACCESS POUlT Included Included X X Available X X X X X X X X X X X X X Included Included Included Included Included Included Included Included InclUded Included Included Included Included X Included Ineluded Included Included X Included X Included Included Included Included Included )( X X X x X X X )( )( X X )( X X Provide online account access X Review for pre-ta> treatment Control for receipt of enrollment process Ensure employees understand late entrant risks (ERISAi . Enrollment after employment status chan.e. IPR to FTI Assemble and upload benefit enrollment and educational materials )( X X X X Included Included Included Included Included Included Included Included Included Included I Included Included Included Included 016/018 10/21/2013 13:30 FAX , 2483190197 I4l 018/018 ACCESS POINT , -, Update compenv oollcles and handbook Consult on prooer Job Descrlotlon Implementation AssI" with performance Improvement and corrective action Teacher Evaluations x X X Included Included Included School Leader V. EMPLOYEE RELATIONS Develop/maintain basic company pplicies Develop/maintain forms and orocedures Counsel management on performance and corrective action issues Prepare/review case file documentation Counsel management on employee Issues Respond to emplovee inquiries and concerns Investigate and mediate complaints Assist and counsel in rellards to Involuntarv terminations Desi~n exit Interview materials Prepare/review severance agreement, and general release. Plan redual"n in force Implementation X Included Included Included X Included X X X Ineluded Included Available Included Available Available Available X X X X included Included Included Available X X Included Included Included Included Included X Included Included Ineluded Included Available X X X Avolloble Available Available X X X X X X VI. RISK MANAGEMENT A. SAfETY PlAN Provide Illness and InjulY Prevention Plan Provide Safetv Plan Maintain OSHA records Provide OSHA postlngs for online posting B. WORKER'S COMPENSATION Comolete and file claim forms Monitor treatment .tatu, with medical .taff Coordinate return to work or lilrht dUtv Coordinate loss prevention activities with insurer Check for duplicate WC/heolth clolms X X X C. UNEMPLOYMENT Review annual rate determinatIon Resppnd and administer unemplovment Insuronce In all state Review and handle clolms flied Contest unwarranted claims Attend hearings or file appeals oS necessary D. EMPLOYER UABllliY Research emDlover Iiabilitv issues Research/obtain Insur.nce for emplever liability Obtain le~ol counsel for employment Issues X X X X $SO hr. plus expo