<PAGE>   1

                                                                    EXHIBIT 10.9

[BEACON LOGO]


                                 March 9, 1999

Mr. James McGonigle
28 Meadow Lane
Westford, MA 01886

Dear Jim,

Beacon Education Management hereby extends an employment offer to you pending
the completion of a required background check, on the following terms and
conditions:

POSITION:  Chief Financial Officer

LOCATION:  Westborough, MA

DATE:      Effective March 15, 1999

PRIMARY INITIAL FUNCTIONS:

[ ]     Employee shall have the responsibility to manage the Company's financial
        operations, including but not limited to:

        --     Financial controls for the Company and the schools it manages.
        --     Compliance by the Company and the schools it manages with
               relevant laws and regulations that relate to the financial
               management of the school.
        --     Budgeting, cash flow management and investments.
        --     Real estate transactions and leases.
        --     Supervision of Accounting and Human Resources departments.
        --     Development of business plan.
        --     Liaison with banks and other financial institutions.
        --     All other aspects of the Company's daily financial operations.

[ ]     Together with the Chairman, Chief Operating Officer and the Managing
        Members, Employee shall establish the business strategy of the Company;

[ ]     Together with the Chairman, Chief Operating Officer and the Managing
        Members, Employee shall secure the financial resources to carry out the
        business plan of the Company;

[ ]     Development of financial systems and controls for JCR and Associates
        and other Beacon affiliates, partnerships or entities where Beacon
        has ownership.


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[ ]      Employee shall perform such other duties which are required or assigned
         and which are reasonably within the scope of the duties enumerated
         above.

Employee's duties shall be subject to the direction and control of the Chief
Operating Officer.

BASE SALARY: $115,000 per year

BONUS: Employee shall be eligible for a bonus of up to 5% of Employee's base
salary, to be based upon the evaluation of Employee's contribution to the
company by the Chief Operating Officer.

HEALTH INSURANCE Beacon will pay for 100% of Employee's health insurance
premiums under the Employer's standard plan in accordance with the Company's
standard policies.

401 K Company has established a 401(k) plan under which the company will
contribute an amount equal to 4% of the employee's salary and, in addition,
match any contribution by the employee up to 3% of the employee's salary. Thus,
if the employee contributes 3%, the contribution by the company will be 7%, for
a total of 10%. The 401(k) plan allows each employee to choose among several
mutual fund managers for the investment of these retirement funds. Employees
will accrue company retirement benefits from the date of employment and will be
fully vested immediately.

EXPENSE REIMBURSEMENT Beacon pays for auto mileage at IRS approved rate,
reasonable professional fees and subscriptions, reasonable out-of-pocket travel
expenses during overnight travel (including motel/hotel and meals). All
reimbursement are in accordance with Beacon's standard travel policies.

OWNERSHIP OPTIONS Employee will be granted 20,000 options on Points of Interest
in the Company, which options shall vest in over a three year period in
accordance with their terms of the company's option ownership plan.

SICK LEAVE: Twelve (12) paid days of sick leave per year will be provided to
Employee as needed for valid medical reasons. Unused sick leave days during a
year may be accumulated up to a maximum of 20 total days sick leave in any
year. Employer will consider individual circumstances that may warrant sick
leave in addition to the maximum provided hereunder.

DISABILITY INSURANCE Beacon will provide disability insurance that pays an
employee who becomes disabled 60% of the employee's salary beginning 90 days
after the disability and ending when the disability ends or at age 65,
whichever occurs first.

Beacon will pay 60% of the employee's salary from the last vested benefit day
up to the 90th day of disability.

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OTHER COMPANY BENEFITS AND POLICIES Other Company benefits and policies are
outlined in the personnel manual, and all Company benefits and policies are
subject to modification in the future.

SEVERANCE: In the event that the Employee's employment is terminated without
cause then the Employer shall pay up to nine (9) months compensation and
benefits after the effective date of termination. This severance will be paid
on the Employer's regular pay schedule. Severance pay will end after eighteen
pay periods or sooner if Employee accepts another offer of employment at an
equal or higher rate of compensation.

In addition Employer will pay up to $10,000 in out placement services during
this same nine month period.

EMPLOYMENT STATUS: Employee will be an "employee at will."

OFFICE Employee will be based at the Company's headquarters in Westborough, MA.

CONFIDENTIALITY/OWNERSHIP OF WORK PRODUCT As consideration for employment,
Employee shall sign an agreement acknowledging the confidentiality of Beacon
information and specifying Beacon as the owner of employee's work product.
Employee will also need to sign an agreement acknowledging that Employee will
not, during the term of employment, be in breach of any other contract or
obligation that would affect Employee's ability to perform hereunder.

REPORTING: Employee will report to the Chief Operating Officer.

Sincerely


/s/ Michael B. Ronan
Michael B. Ronan
Chief Operating Officer

Please indicate your agreement by your signature below:


/s/ James W. McGonigle

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<PAGE>   4
                                   AGREEMENT


         This Agreement (the "Agreement") is made and entered into on the 17
day of March, 1999, by and between Beacon Education Management LLC ("Employer")
and James McGonigle ("Employee").

         In consideration of Employee's employment by Employer, the parties
agree as follows:

         1.  Confidentiality. Employee agrees not to disclose, either during
the time he/she is employed by Employer or following the termination of his/her
employment hereunder to any person, firm, corporation or other entity, or use
for Employee's own benefit whether or not for monetary gain, any confidential
information ("Confidential Information") concerning the conduct or the business
affairs of Employer, including, without limitation, trade secrets, now-how,
inventions, curricula, customer and supplier lists, business plans, operational
records, pricing policies, referral sources or organizations, marketing and
sales plans, financial information, names, addresses, positions, salaries and
other terms of employment of other employees of Employer. Employee acknowledges
that all records, data, communications and other property of Employer entrusted
or loaned to Employee or prepared by Employee during the term of this Agreement
(including, but not limited to, any inventions, data, creations or other work
product) are Employer's property and Employee agrees to return any material so
loaned to or so prepared by Employee or Employer immediately upon termination
of employment. For the purposes of this Agreement, Confidential Information
does not include information that is or becomes part of the public domain,
other than through Employee's action or inaction.

         2.  Ownership of Work Product. As it relates to the business of
Employer, Employer shall own, and Employee hereby transfers and assigns to
Employer (to the extent proprietary), all rights of, in and to any material
and/or ideas and all results and proceeds of employee's services to Employer,
or conceived of or produced during Employee's employment, including but not
limited to, any inventions, data, creations, copyrighted materials (which are
works-made-for-hire), software programs or other work product (collectively,
"Work Product"). Employee will execute and deliver to Employer such
assignments, certificates of authorship or other instruments as Employer may
require from time-to-time to evidence ownership of such Work Product.

         3.  Non-Competition Covenant. During Employee's employment, Employee
shall not engage in as a principal, agent, trustee, employee or stockholder or
through the agency of any person, corporation, partnership, association or
agent or agency, in any business in competition with the business conducted by
the Employer or any of its affiliates at the time. During such period, Employee
further agrees that he/she will not, either directly or indirectly, through any
person, firm association, or corporation with which he/she is now or may
hereafter become associated, cause or induce any present or future employee of
the Employer or any if its affiliates to leave the employ of the Employer or
any such affiliate to accept employment with Employee or with such person,


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association or corporation. Notwithstanding the above, Employee shall not be
precluded from owning up to 5% of the outstanding capital stock of a competing
business whose stock is traded on a national securities exchange or over the
counter.

         4.       Non-Solicitation.  During Employee's employment and for one
(1) year thereafter, Employee shall not, directly or indirectly, individually
or on behalf of any other person or entity, do any of the following:

                  (a)      Call upon, solicit, or attempt to solicit Customers
                           to transfer their patronage from Employer to any
                           other business, firm or entity engaged in activities
                           which are directly or indirectly competitive with
                           those conducted by Employer;

                  (b)      Aid or agree to aid any competitor, Customer or
                           supplier of Employer in any attempt to hire any
                           employee of Employer; or

                  (c)      Induce or attempt to influence any person or business
                           entity who is or was a Customer or supplier of
                           Employer to transact business with a competitor of
                           Employer or cease to do business, in whole or in
                           part, with Employer.

         5.       Law.  The validity and construction of this Employment
Agreement shall be determined according to the laws of the State of
Massachusetts.

         6.       Definition of "Customer".  For the purposes of this Agreement,
"Customer" means any individual or entity (including, without limitation, any
school, educational board, or educational institution, Employee, or Employee
consulting group) to whom Employer directly or indirectly provides, either
currently or at any time during Employee's employment, any management services
(without regard as to whom is billed for such services). "Customer" shall also
include any individual or entity actively solicited by Employer during
Employee's employment.

         7.       Injunctive Relief.  Employee acknowledges and agrees that any
breach of this Agreement could be expected to cause irreparable harm and injury
to Employer's goodwill and competitive position and that the remedy at law for
any breach of the provisions in this Agreement shall be inadequate.
Accordingly, Employee covenants and agrees that Employer shall, in addition to
other rights or remedies which it may have, be entitled to such equitable and
temporary or permanent injunctive relief to restrain Employee from any
violation of such provisions. Such right to obtain equitable and injunctive
relief may be exercised, at the option of Employer, concurrently with, prior to,
after or in lieu of, the exercise of any other rights or remedies Employer may
have as a result of such breach or threatened breach. The pursuit of one of
such remedies at any time shall not be deemed an election of remedy or waiver
of the right to pursue any of the other of such remedies.


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<PAGE>   6

                                    James McGonigle, EMPLOYEE


                                    /s/ James McGonigle
                                    -------------------------------------------

                                    Date: 3/15/99
                                          -------------------------------------



                                    BEACON EDUCATION MANAGEMENT LLC


                                    By: /s/ Michael B. Ronan
                                       ----------------------------------------

                                    Date: 3/15/99
                                          -------------------------------------


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            CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE OF
                                   ALL CLAIMS


         This Confidential Separation Agreement and General Release of All
Claims (the "Separation Agreement") is made as of the 9th day of October 2000,
by and between Beacon Education Management, Inc. (the "Company"), and James
McGonigle ("Employee"). This Separation Agreement supercedes in its entirety,
the Employment Agreement between the Company and the Employee dated March 9,
1999 (the "Employment Agreement").

                                    RECITALS

         WHEREAS, the Company and Employee entered into the Employment
Agreement, effective March 9, 1999 which provided Employee with certain benefits
and rights in exchange for serving in the position of Chief Financial Officer of
the Company;

         WHEREAS, the Employee acknowledges that the Company is desirous of
reaching a separation agreement covering the terms of the employee's voluntary
separation from the Company due to a change in the duties and responsibilities
of the position held by the employee; and

         WHEREAS, for sound business reasons and in the best interests of both
parties, the parties mutually agree that Employee shall resign his position
effective October 31, 2000, and terminate the Employment Agreement and in
connection therewith, the parties shall mutually release each other from all
obligations arising thereunder.

         THE PARTIES HEREBY AGREE, in consideration of the foregoing and for
mutual consideration, the sufficiency and receipt of which is hereby
acknowledged, to the following terms, conditions and obligations, as follows:

TERMINATION OF THE EMPLOYMENT AGREEMENT. The parties hereby terminate the
Employment Agreement effective as of October 31, 2000. Prior to October 31,
2000, Employee shall devote his full business time and attention to the duties
of the position, under the direction of the Company's Chief Operating Officer,
and shall perform his duties in a professional manner, with the skill and care
which would be exercised by comparable qualified professionals performing
similar services.


2.       CONSIDERATION. (a) In exchange for the Company's release and covenants
herein, Employee agrees to forego any benefits to which he may have been
entitled to receive under the Employment Agreement, including but not limited to
any severance pay or benefits. Employee further agrees to execute a letter of
resignation, as shown in Exhibit A.

         (b)      In exchange for Employee's release and covenants herein, the
                  Company agrees to pay and provide severance benefits as
                  follows:


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                  (i)      $86,250 paid in 18 equal installments on the l5th and
the last day of each month, beginning November 15, 2000 and ending August 15,
2001 (Amended on October 31, 2000 to read, ("July 31, 2001)) from which all
necessary deductions, to the extent and in the same manner as such deductions
(including medical, disability and dental) have been taken prior to this
Separation Agreement, will be taken. Subparagraph (iv) below details the
insurance payments, deductions, and benefits. Such payments shall be made in
accordance with the Company's regular payroll cycle and subject to the offset
provisions of the original employment agreement dated March 9, 1999. If Employee
accepts another offer of employment at a rate equal to or higher than
$115,000.00 per year, then payments from Company shall cease as of Employee's
first day of employment with another company. If Employee accepts another offer
of employment at a rate below $115,000 per year, then remaining payments shall
be appropriately pro-rated. Employee acknowledges that Employee has an
affirmative duty to notify Company if Employee accepts another offer of
employment. On or before November 30, 2000, Employee will also be paid for any
unused vacation days that have been accrued as of October 31, 2000.

                  (ii)     Contingent upon Employee achieving the objectives set
herein below, Beacon shall extend the date through which Employee is eligible to
exercise his stock options that are vested as of September 30, 2000 under the
Company's 1996 plan. Such date shall be extended from October 31, 2000 to
October 31, 2001.

                                Objectives: Obtaining by October 31, 2000 signed
                                agreements with qualified financial institutions
                                to provide financing on terms reasonably
                                acceptable to the Company, through its Chief
                                Operating Officer for all necessary facility
                                improvements, equipment, technology and
                                furniture for the following schools: Thurgood
                                Marshall Academy, St. Louis Charter School,
                                Ethel Hedgeman Lyle Academy, South Buffalo
                                Charter School, Lowell Community Charter School,
                                Central New York Math and Science Charter
                                School, Pontiac Academy of Excellence and Conner
                                Creek Academy - Warren. In addition the Employee
                                will provide a detailed roll out plan for the
                                new 401 K plan that insures that plan
                                consolidation will be completed by the date
                                required by the IRS.

Employee and Company acknowledge that, as of October 31, 2000, Employee has
vested options to purchase 26,667 shares at an exercise price of $2.64 per
share; and

                  (iii)    Up to $10,000 for out placement services payable to a
third party upon invoicing to Beacon for these services, if such services are
used within a 9 month period after the effective date of this termination.

                  (iv)     Employer will continue to provide the same health and
dental benefits as when Employee was regularly employed by Employer. Employer
will pay the same amount and portion of the cost of Employee's health and dental
insurance as was paid by Employer immediately prior to the termination of
Employee's employment with Employer. Upon Employee becoming eligible to receive
health and/or dental benefits, regardless of the cost to Employee, from any
other employer, then Employer's obligation to continue Employee's health


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<PAGE>   9

and/or dental benefits will immediately cease. Employee affirmatively promises
to notify Employer as soon as Employee knows of the date when Employee becomes
eligible under another health and/or dental plan. In no event shall Employer's
obligation under this subparagraph (iv) continue passed the time when Employer
is obligated to make payments to Employee under subparagraph (i) above. At such
time as Employer's obligations under this paragraph cease, Employee will be able
to continue Employee's health and/or dental coverage, at Employee's sole
expense, under the terms of the COBRA law.


         The severance payments provided as described in this Section 3(b) are
referred to collectively as the "Severance Benefits." Employee will not be
entitled to the payment or accrual of any additional compensation or benefits
from the Company, or its subsidiaries or affiliates, except as provided in this
Agreement. Employee acknowledges that these Severance Benefits are in
replacement of any pay or benefits to which he would otherwise be entitled.

3.       EMPLOYEE'S RELEASE.

         (a)      In consideration for the Severance Benefits as set forth in
this Agreement, Employee agrees to release the Company its affiliates and all of
their officers, directors, employees, shareholders and agents from all claims or
causes of action of whatever nature that Employee now may have or may arise at a
later date and that Employee either knows about or hereafter may learn about
arising from or during the Employee's employment, resulting from the termination
of Employee's employment, or occurring prior to the parties entering into the
Employment Agreement. This means that Employee cannot and will not file any
claim, charge, or lawsuit for the purpose of obtaining any monetary award above
and beyond the amounts provided for in this Agreement, reinstatement of his
employment, or any equitable relief. The Employee also agrees that he will make
no statement to any third party, orally, in writing, or electronically, which
might hurt the reputation of the Company or otherwise be considered a negative
remark or statement about the Company. The Employee will make no comments or
statements, which might be considered to be disparaging to the Company or any of
its employees, agents, or representatives. The Company will make no comments or
statements to any third party who might be considered to be disparaging to the
Employee or which would hurt the reputation of the Employee.

         (b)      Employee acknowledges that this General Release includes, but
is not limited to, all claims arising under federal, state or local laws
prohibiting employment discrimination and all claims growing out of any legal
restrictions on the Company's right to terminate its employees including any
breach of contract claims. This General Release also specifically encompasses
all claims of employment discrimination based on race, color, religion, sex, and
national origin, as provided under Title VII of the Civil Rights Act of 1964, as
amended, all claims of discrimination based on age, as provided under the Age
Discrimination in Employment Act of 1967, as amended, all claims under the
Employee Retirement Income Security Act (ERISA), all claims under the Family and
Medical Leave Act (FMLA), and all claims of employment discrimination under the
Americans with Disabilities Act (ADA) as well as claims under state law as
provided under the Massachusetts Fair Employment Practice Act and any other
applicable state laws concerning his employment. This General Release further
specifically encompasses all


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<PAGE>   10

claims related to compensation, benefits, incentive packages or any other form
of compensation Employee may or may not have received during his employment.

         (c)      Employee intends this Agreement to be binding upon himself,
his estate, his heirs and assignees. Employee understands and agrees that if
Employee breaches this Agreement or if he files any claim or lawsuit against the
Company seeking any equitable relief, all payments and benefits provided herein
shall cease, and Employee or such Employee's estate shall be required to
reimburse the Company for all payments and benefits Employee received under this
Agreement prior to such time, including attorneys' fees incurred by the Company.

         (d)      The Company agrees that the information provided as a result
of third party reference inquiries regarding employment with the Company shall
be consistent with Exhibit B. All calls will be referred to the President and
COO.

4.       CONFIDENTIALITY. (a) The Company and Employee agree to maintain
absolute confidentiality and secrecy concerning the terms of this Termination
Agreement and will not reveal, or disseminate by publication in any manner
whatsoever this document or any matters pertaining to it to any other person,
including but not limited to any past or present employee of the Company or any
media representative except as required by legal process. This confidentiality
provision does not apply to communications necessary between immediate family
members or legal and financial planners or tax preparers who are also bound by
this confidentiality agreement. The parties agree that should a party breach
this confidentiality provision, the other party is entitled to bring legal
action for all damages as well as attorneys? fees incurred in the bringing of
such an action.

         (b)      In further consideration of the Company's payments to
Employee, Employee agrees that from the date of the termination of the
Employment Agreement, Employee agrees to hold in strict confidence and not to
disclose to any third party any of the valuable, confidential, and proprietary
business, financial, technical, economic, sales, and/or other types of
proprietary business information relating to the Company and/or any other entity
owned by or affiliated with the Company (including all trade secrets), in
whatever form, whether oral, written, or electronic (collectively, the
"Confidential Information"), to which Employee has, or is given (or has had or
been given), access as a result of his employment by the Company. It is agreed
that the Confidential Information is confidential and proprietary to the Company
because such Confidential Information encompasses technical know-how, trade
secrets, or technical, financial, organizational, sales, or other valuable
aspects of the Company's business and trade, including, without limitation,
technologies, products, processes, plans, clients, personnel, operations, and
business activities. This restriction shall not apply to any Confidential
Information that (a) becomes known generally to the public through no fault of
the Employee; (b) is required by applicable law, legal process, or any order or
mandate of a court or other governmental authority to be disclosed; or (c) is
reasonably believed by Employee, based upon the advice of legal counsel, to be
required to be disclosed in defense of a lawsuit or other legal or
administrative action brought against Employee; provided, that in the case of
clauses (b) or (c), Employee shall give the Company reasonable advance written
notice of the Confidential Information intended to be disclosed and the reasons
and circumstances surrounding such disclosure, in order to permit


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the Company to seek a protective order or other appropriate request for
confidential treatment of the applicable Confidential Information.

5.       RETURN OF COMPANY PROPERTY. Promptly upon termination of the Employment
Agreement. Employee or Employee's personal representative shall return to the
Company (a) all Confidential Information; (b) all other records, designs,
patents, business plans, financial statements, manuals, memoranda, lists,
correspondence, reports, records, charts, advertising materials, and other data
or property delivered to or compiled by Employee by or on behalf of the Company,
or its representatives, vendors, or customers that pertain to the business of
the Company, whether in paper, electronic, or other form; and (c) all keys,
credit cards, telephones, pagers, computers, vehicles, and other property of the
Company. Employee shall not retain or cause to be retained any copies of the
foregoing. Employee hereby agrees that all of the foregoing shall be and remain
the property of the Company, as the case may be, and be subject at all times to
their discretion and control.

6.       CHOICE OF LAW. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts. This Agreement
and its subject matter have substantial contacts with Massachusetts and all
actions, suits, or other proceedings with respect to this Agreement shall be
brought in the United States District Court having jurisdiction in Worcester
County, Massachusetts, or in the Massachusetts Court having jurisdiction over
that County. In any such action, suit, or proceeding, such court shall have
personal jurisdiction of all the parties hereto, and service of process upon
them under any applicable statutes, laws and rules shall be deemed valid and
good.

7.       EMPLOYEE ACKNOWLEDGMENTS. Employee acknowledges that he has read the
terms of this Termination Agreement and that he understands the terms and
effects, including the fact that he has agreed to release and forever discharge
the Company from any legal action arising out of his employment relationship
with the Company, the terms and conditions of that employment relationship, and
the termination of that employment relationship. He further acknowledges that he
signed this Termination Agreement voluntarily and knowingly in exchange for the
consideration described herein, which he acknowledges as adequate and
satisfactory to him. EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED IN WRITING
TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND HAS BEEN GIVEN
SUFFICIENT TIME TO DO SO. Employee further acknowledges that he has had a period
of twenty-one (21) days within which to consider this Agreement. This Agreement
may be revoked by Employee at any time during the seven (7) day period beginning
on the date that he has signed it. This Agreement shall not become effective if
he revokes the Agreement during the seven-day period and will not become
effective otherwise until after expiration of the seven-day period.

8.       MARCH 17, 1999 AGREEMENT. The Company and the Employee agree that the
provisions of the March 17, 1999 Agreement between the Company and Employee,
concerning Confidentiality, Ownership of Work Product, Non-Competition Covenant,
and Non-Solicitation, remains in full force and effect. Employee acknowledges
that the terms of the March 17, 1999 Agreement are reasonable and that he will
not challenge the validity of the March 17, 1999 Agreement. Any terms of the
March 17, 1999 Agreement pertaining to compensation, benefits, and work
responsibilities are superceded by this Separation Agreement.


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<PAGE>   12

9.       WAIVER OF RIGHT OF RE-EMPLOYMENT. Employee agrees that he forever
waives and relinquishes any and all claim, right, or interest in reinstatement
or future employment that he presently has or might in the future have with the
Company. Employee agrees that he will not seek employment with the Company in
the future.

10.      EFFECTIVE DATE. This Termination Agreement shall not become effective
if revoked by Employee during the seven-day revocation period and will not
become effective until after expiration of the seven-day period.


      [Remainder of page left intentionally blank, signature page follows]


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<PAGE>   13


DATED THIS 10th day of October, 2000.


                                            BEACON EDUCATION MANAGEMENT, INC.



                                            By:      /s/ Michael B. Ronan
                                                -------------------------------
                                            Name:    Michael B. Ronan
                                                  -----------------------------
                                            Title:            COO
                                                   ----------------------------



                                            James McGonigle


                                               /s/ James McGonigle
                                            -----------------------------------


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