Document:

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                                                                   Exhibit 10.48

                                    GUARANTY

         THIS GUARANTY (this "Guaranty") is made as of the 31st day of July,
2002, by BAYARD RUSTIN CHARTER SCHOOL, LLC, a Florida limited liability company
(the "Guarantor"), in favor of SCHOOL SERVICES LLC, a Delaware limited liability
company (the "Lender").

                                   WITNESSETH:

         WHEREAS, Lender, pursuant to the terms of that certain Credit and
Security Agreement (as amended from time to time the "Credit Agreement"), dated
as of the date hereof by and among Lender, Guarantor, Edison Schools Inc.
("Borrower"), and 110th and 5th Associates, LLC, a New York limited liability
company, is making a term loan to Borrower in the original principal amount of
Ten Million and 00/100 Dollars ($10,000,000.00) (the "Term Loan"); and

         WHEREAS, the Term Loan is evidenced by that certain Term Note (the
"Term Note"), dated as of the date hereof made by Borrower and payable to Lender
in the original principal amount of Ten Million and 00/100 Dollars
($10,000,000.00); and

         WHEREAS, Lender, pursuant to the terms of the Credit Agreement, is
making a revolving loan to Borrower in the original principal amount of up to
Ten Million and 00/100 Dollars ($10,000,000.00) (the "Revolving Loan"; together
with the Term Loan, collectively, the "Loans"); and

         WHEREAS, the Revolving Loan is evidenced by that certain Revolving Note
(the "Revolving Note"; together with the Term Note, collectively, the "Notes"),
dated as of the date hereof made by Borrower and payable to Lender in the
original principal amount of Ten Million and 00/100 Dollars ($10,000,000.00)
(the Credit Agreement, the Notes and all other loan documents evidencing,
governing or securing the Loans being hereinafter individually and collectively
referred to as the "Facility Documents"); and

         WHEREAS, it is a condition, among others, to the Lender's willingness
to make any Loans to the Borrower that the Guarantor execute and deliver this
Guaranty pursuant to which the Guarantor shall guaranty the payment and
performance of all Obligations (as defined in the Credit Agreement) of the
Borrower under and in connection with the Credit Agreement; and

         WHEREAS, in consideration of the direct and indirect benefits to be
received by the Guarantor as a result of the financing provided under the Credit
Agreement, and in order to induce the Lender to enter into the Credit Agreement,
the Guarantor has agreed to execute and deliver this Guaranty for the benefit of
the Lender;

         NOW, THEREFORE, in consideration of the foregoing premises and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         SECTION 1 Guaranty. The Guarantor hereby unconditionally guarantees the
full and punctual payment when due (whether at stated maturity, upon
acceleration, or otherwise) and the
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prompt performance of all of the Obligations now or hereafter owing by the
Borrower to the Lender under the Facility Documents and all costs and expenses
incurred by the Lender in connection with the enforcement of this Guaranty (all
of the foregoing collectively, the "Guaranteed Obligations"). Upon failure by
the Borrower to pay punctually any of the Obligations when due, the Guarantor
shall forthwith on demand pay such unpaid amount at the place and in the manner
specified in the Credit Agreement or relevant Facility Document. This Guaranty
is a guaranty of payment and not of collection. This Guaranty is secured by the
Bayard Mortgage (as defined in the Credit Agreement).

         SECTION 2 Guaranty Unconditional. The obligations of the Guarantor
hereunder shall be unconditional and absolute and, without limiting the
generality of the foregoing, shall not be released, discharged or otherwise
affected by any of the following, whether occurring before or after receipt by
the Lender of notice of termination of this Guaranty:

              (i) any extension, renewal, settlement, compromise, waiver or
release with respect to any obligation of the Borrower under the Credit
Agreement or any other Facility Document, by operation of law or otherwise, or
any obligation of any other guarantor of any of the Guaranteed Obligations;

              (ii) any modification, amendment or supplement to the Credit
Agreement or any other Facility Document;

              (iii) any change in the corporate existence, structure or
ownership of Borrower or any other guarantor of any of the Guaranteed
Obligations, or any insolvency, bankruptcy, reorganization or other similar
proceeding affecting the Borrower or its assets or any other guarantor of any of
the Guaranteed Obligations or its assets, or any resulting release or discharge
of any obligation of the Borrower or any other guarantor of any of the
Guaranteed Obligations;

              (iv) the existence of any claim, setoff or other right which the
Guarantor may have at any time against the Borrower, any other guarantor of any
of the Guaranteed Obligations, the Lender or any other person, whether in
connection with the Credit Agreement, any other Facility Document, or any
unrelated transactions;

              (v) the invalidity or unenforceability, regardless of the reason,
of the Credit Agreement, any other Facility Document or any provision thereunder
concerning rights or obligations of the Borrower or any other guarantor of any
of the Guaranteed Obligations;

              (vi) any provision of applicable law or regulation purporting to
prohibit payment by the Borrower or any other guarantor of the Guaranteed
Obligations of the principal under or interest on the Credit Agreement or any
other amount payable by the Borrower under any other Facility Document;

              (vii) any failure or omission to enforce any right, power or
remedy: (a) under the Credit Agreement or any other Facility Document, or (b)
with respect to any or all of the Guaranteed Obligations;

                                       2
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              (viii) the application of payments received from any source to the
payment of indebtedness other than the Guaranteed Obligations, any part thereof
or indebtedness which is otherwise not covered by this Guaranty even though the
Lender might lawfully have elected to apply such payments to all or any part of
the Guaranteed Obligations or to indebtedness which is not covered by this
Guaranty;

              (ix) any release, nonperfection or invalidity of any direct or
indirect security, regardless of when granted, for any obligation of the
Borrower under the Credit Agreement or any other Facility Document, or any
release or invalidity of obligations of any other guarantor of any of the
Guaranteed Obligations; or

              (x) any other act, omission or delay of any kind by the Borrower,
any other guarantor of the Guaranteed Obligations, the Lender or any other
person, or any other circumstance whatsoever, which might, but for the
provisions of this Section 2, constitute a legal or equitable discharge of the
Guarantor's obligations hereunder.

         SECTION 3 Discharge Only Upon Payment In Full; Reinstatement In Certain
Circumstances. The obligations of the Guarantor hereunder shall remain in full
force and effect until the payment in full of all Guaranteed Obligations. If at
any time any payment of principal under or interest on the Credit Agreement or
relevant Facility Document or any other amount payable by the Borrower or any
other party on account of the Guaranteed Obligations is voided or must be
otherwise returned for whatever reason, including, without limitation in the
event of the insolvency, bankruptcy or reorganization of the Borrower, the
obligations of the Guarantor hereunder with respect to such payment shall be
reinstated as though such payment had been due but not made at such time.

         SECTION 4 Guarantor Waivers. The Guarantor irrevocably waives: (i)
notice of the acceptance hereof, as well as presentment, demand, and protest
under the Credit Agreement or any other Facility Document; (ii) any requirement
that notice be given at any time any action is taken by any person against the
Borrower, any other guarantor of the Guaranteed Obligations, any collateral
securing the Guaranteed Obligations, or any other person; and (iii) to the
fullest extent permitted by law, any notice not provided for herein.

         SECTION 5 No Waivers by Lender. No failure or delay by the Lender in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies provided in this Guaranty, the Credit Agreement and any
other Facility Documents shall be cumulative and not exclusive of any rights or
remedies provided by law.

         SECTION 6 Subrogation and Subordination. The Guarantor agrees not to
assert any right, claim or cause of action including, without limitation, a
claim for subrogation, reimbursement, indemnification or otherwise against the
Borrower arising out of or by reason of this Guaranty or the obligations
hereunder including, without limitation, the payment or securing or purchasing
of any of the Guaranteed Obligations by the Guarantor unless and until the
Guaranteed Obligations are paid in full and all commitments to lend under the
Credit Agreement

                                       3
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or relevant Facility Document are terminated. The Guarantor agrees that any and
all claims of the Guarantor against the Borrower or any of the Borrower's
subsidiaries, any endorser or any other guarantor of all or any part of the
Guaranteed Obligations, or against any of their respective properties, shall be
subordinate and subject in right of payment to the prior payment, in full, of
all principal and interest, all reasonable costs of collection (including
reasonable attorneys' and paralegals' fees and expenses) and any other
liabilities or obligations owing to the Borrower which may arise either with
respect to or under the Credit Agreement or any other Facility Document.
Notwithstanding any right of the Guarantor to ask, demand, sue for, take or
receive any payment from the Borrower, all rights, liens and security interests
(if any) of the Guarantor, whether now or hereafter arising or howsoever
existing, in any assets of the Borrower (whether constituting part of any
security or collateral which may be given to the Lender to secure payment of the
Guaranteed Obligations or otherwise) shall be and hereby are subordinated to the
rights of the Lender in those assets. The Guarantor shall have no right to
possession of any such asset or to foreclose upon any such asset, whether by
judicial action or otherwise, unless and until all of the Guaranteed Obligations
shall have been fully paid and satisfied and all commitments to lend under the
Credit Agreement have been terminated. If all or any part of the assets of the
Borrower, or the proceeds thereof, are subject to any distribution, division or
application to the creditors of the Borrower, whether partial, complete,
voluntary or involuntary, and whether by reason of liquidation, bankruptcy,
arrangement, receivership, assignment for the benefit of creditors or any other
action or proceeding, Guarantor waives any rights it may have in or to the
foregoing.

         SECTION 7 Stay of Acceleration. If acceleration of the time for payment
of any amount payable by the Borrower under the Credit Agreement or any other
Facility Document is stayed upon the bankruptcy of the Borrower, all such
amounts otherwise subject to acceleration under the terms of the Credit
Agreement or any other Facility Document shall nonetheless be payable by the
Guarantor hereunder forthwith on demand made by the Lender.

         SECTION 8 Guarantor Obligations Without Regard to Setoff, Counterclaim
or Taxes. All payments required to be made by the Guarantor hereunder shall be
made without setoff or counterclaim and free and clear of, and without deduction
or withholding for or on account of, any present or future taxes, levies,
imposts, duties or other charges of any nature imposed by any government or any
political or taxing authority, provided however, that if the Guarantor is
required by law to make such deduction or withholding, the Guarantor shall
forthwith pay to the Lender, such additional amount as results in the net amount
received by the Lender, equaling the full amount which would have been received
by the Lender had no such deduction or withholding been made.

         SECTION 9 Setoff Rights of Lender. Without limiting the rights of the
Lender under applicable law, the Guarantor authorizes the Lender to apply toward
the payment of all or any part of such Guaranteed Obligations any monies,
credits or other property belonging to the Guarantor, at any time held by or
coming into the possession of the Lender, or any of its respective affiliates,
custodians or nominees.

         SECTION 10 Notices. Any notice required or permitted to be given under
this Guaranty shall be sent by United States mail (postage prepaid), telegraph
or telex (charges prepaid),

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facsimile transmission or nationally established overnight courier service (with
all charges prepaid), addressed, at the address set forth for each party on the
signature page hereto, or at such other address as may be designated by either
party in a notice sent in accordance with the terms of this Section 10 to the
other party, and shall be deemed received (i) when received by the addressee if
sent via the United States mail; (ii) when delivered to the appropriate office
or machine operator for transmission if sent by telegraph or telex (answerback
confirmed in the case of telexes); (iii) when receipt thereof by the addressee
is confirmed by facsimile confirmation if sent by facsimile transmission; and
(iv) one business day after delivery to an overnight courier service if sent by
such service.

         SECTION 11 Successors and Assigns. This Guaranty is for the benefit of
the Lender and its respective successors and permitted assigns, subject to the
terms and provisions of Section 9 of the Credit Agreement. In the event of an
assignment of any amounts payable under the Credit Agreement or any other
Facility Document in accordance with the terms and provisions of Section 9 of
the Credit Agreement, the rights hereunder, to the extent applicable to the
indebtedness so assigned, may be transferred with such indebtedness. This
Guaranty shall be binding upon the Guarantor and its respective successors and
permitted assigns.

         SECTION 12 Changes in Writing. Neither this Guaranty nor any provision
hereof may be changed, waived, discharged or terminated orally. Any change,
waiver, discharge or termination shall be in writing signed by the Guarantor and
the Lender.

         SECTION 13 GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS GUARANTY
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PRINCIPLES (EXCEPT FOR NEW YORK
GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402). THE GUARANTOR HEREBY
SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND ANY NEW YORK STATE COURT SITTING IN THE
BOROUGH OF MANHATTAN, NEW YORK FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT
OF OR RELATING TO THIS GUARANTY, ANY OTHER FACILITY DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREIN OR THEREBY. THE GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY SUCH PROCEEDING IN SUCH A COURT AND ANY CLAIM THAT ANY
SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

         THE GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS
UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE AT THE OPTION
OF LENDER BY ANY ONE OF THE FOLLOWING (A) DELIVERY IN PERSON, (B) BY COURIER, OR
(C) CERTIFIED OR REGISTERED MAIL, POSTAGE PREPAID, TO THE GUARANTOR AT ITS
ADDRESS NOTED BELOW.

         ANY PROCESS SERVED BY MAIL SHALL BE COMPLETE ON THE DATE IT IS MAILED.
ANY PROCESS SERVED BY ANY OTHER MANNER AFOREMENTIONED SHALL BE COMPLETE ON THE
DATE IT IS DELIVERED. THE GUARANTOR

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CONSENTS TO SERVICE OF PROCESS AS AFORESAID. THE GUARANTOR ALSO WAIVES ANY
DEFECT IN SERVICE CAUSED BY ITS FAILURE TO NOTIFY LENDER IN WRITING OF ANY
CHANGE OF ADDRESS.

         NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER TO SERVE LEGAL PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR THE RIGHT OF LENDER TO BRING ANY ACTION
OR PROCEEDING AGAINST THE GUARANTOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTION.

         SECTION 14 WAIVER OF JURY TRIAL. THE GUARANTOR AND, BY ITS ACCEPTANCE
HEREOF, THE LENDER EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
GUARANTY, THE NOTES, ANY OTHER FACILITY DOCUMENTS, OR THE TRANSACTIONS
CONTEMPLATED THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE
BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY BANK, ANY
AGENT-RELATED PERSON, PARTICIPANT OR LENDER, WHETHER WITH RESPECT TO CONTRACT
CLAIMS, TORT CLAIMS, OR OTHERWISE. THE GUARANTOR AND, BY ITS ACCEPTANCE HEREOF,
THE LENDER EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A
COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE GUARANTOR AND,
BY ITS ACCEPTANCE HEREOF, THE LENDER FURTHER AGREE THAT THEIR RESPECTIVE RIGHT
TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION,
COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE
THE VALIDITY OR ENFORCEABILITY OF THIS GUARANTY, THE NOTES OR ANY OTHER FACILITY
DOCUMENTS OR ANY PROVISION THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY AND ANY
OTHER FACILITY DOCUMENTS.

                         [NO FURTHER TEXT ON THIS PAGE]

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         IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly
executed, by its authorized officer as of the day and year first above written
and delivered to the Lender.

                                        BAYARD RUSTIN CHARTER SCHOOL, LLC

                                        By:      /s/ David Graff
                                              ----------------------------------
                                              Name:   David Graff
                                              Title:  Senior Vice President and
                                                      General Counsel

                                              NOTICE ADDRESS:
                                              c/o Edison Schools Inc.
                                              521 Fifth Avenue
                                              11th Floor
                                              New York, New York 10175
                                              Attention: General Counsel
                                              (f) (212) 419-1868

                                              LENDER NOTICE ADDRESS

                                              c/o Leeds Weld & Co.
                                              660 Madison Avenue
                                              15th Floor
                                              New York, New York 10021
                                              Attention:  Robert A. Bernstein

                                       7<PAGE>

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") is made as of the 1st day of
October, 2002 by and between Edison Schools Inc., a Delaware corporation with
offices located at 521 Fifth Avenue, New York, New York 10175 (referred to
hereinafter as the "Employer" or "Company") and Charles J. Delaney, an
individual residing at One Inwood Road, Darien, Connecticut 06820 (referred to
hereinafter as the "Executive").

                              W I T N E S S E T H :
                               -------------------

          WHEREAS, the Employer desires to employ the Executive, and the
Executive desires to be employed by the Employer, upon the terms and conditions
hereof;

          NOW THEREFORE, in consideration of the foregoing promises and of the
covenants and agreements hereinafter contained, the parties hereto agree as
follows:

          1. EMPLOYMENT. The Employer hereby employs the Executive, and the
Executive hereby accepts employment with the Employer, upon the terms and
conditions set forth in this Agreement.

          2. TERM. The employment of the Executive hereunder shall commence on
the date hereof and shall continue through June 30, 2004 unless earlier
terminated by either party pursuant to the provisions of Section 10 hereof (the
actual term of employment of the Executive hereunder being hereinafter referred
to as the "Employment Period").

          3. TITLES; DUTIES; REPORTING.
          -----------------------------

          (a) During the Employment Period, the Executive shall render services
as the Vice Chairman, Business and Finance, of the Employer. He shall perform
duties consistent with such title and such other related duties, not
inconsistent with such titles, as the Employer otherwise shall request. In
addition, he shall serve as a member of the Company's Office of the Chief
Executive Officer ("Office of the CEO"). The Office of the CEO shall be made up
of the Executive, the Chief Executive Officer and the President and Chief
Operating Officer. The obligations and responsibilities of the Office of the CEO
shall be more fully described in Appendix A. Without limiting the foregoing, the
Executive's roles and responsibilities shall include (i) implementing a
continuous re-engineering process which shall result in increasing the EBITDA of
the Company and the return on investment of its products; (ii) responsibility
for negotiating and approving all financings of any type, including debt and
equity that the Company should enter into; (iii) developing an annual budget and
managing the budget preparation review process; (iv) developing the Company's
36-month financial plan in coordination with the other members of the Office of
the CEO; (v) develop and implement employee reports that record the
responsibilities and results of various
<PAGE>

employee goals; (vi) develop, install and track operating and financial results
and operating standards of the Company in cooperation with the other members of
the Office of the CEO; (vii) chair the Capital Investment Committee and be
responsible for organizing policies and procedures in relation to commitment and
disbursement of all capital fundings by the Company; (viii) develop and assist
in the delivery of a new investor relations strategy; (ix) ensure that any/all
products that the Company develops and offers to customers are based on a model
that delivers an acceptable return on investment and profitability and recommend
to the Office of the CEO changes to current products and practices that are
necessary to achieve these ends; (x) ensure that the Company is meeting its
annual budget and profitability targets and recommend actions to the Office of
the CEO that would result in improvements on any shortcomings which the
Executive believes need to be addressed; (xi) assume senior management
responsibility for the Company's financial department.

                (b) The Executive shall report directly to the Chief Executive
Officer of the Company.

                (c) During the Employment Period, Executive shall not engage in
any other business activity that shall interfere with the Executive's ability to
devote the business time, attention, skill and best efforts to the his duties
hereunder and the business and affairs of the Employer and its affiliates.

                (d) The Company will nominate the Executive on the management
slate of candidates to the Company's Board of Directors for the entire duration
of this Agreement.

          4. COMPENSATION.
           ------------

                  (a) Salary. For all services rendered by the Executive under
this Agreement (including, without limitation, services as an executive, officer
or member of any committee of the Employer or any of its affiliates), the
Employer shall pay the Executive a base salary at the rate of $5673.08 per week
(if annualized, $295,000.00) per annum, payable in substantially equal
installments in accordance with the Employer's usual payroll practices. This
salary shall go into effect October 1, 2002, and the first payment shall reflect
both the payment of a signing bonus of $73,750 and any retroactive pay as may be
due under this agreement. The Company shall, on an annual basis, review the
Executive's base salary to determine in its discretion whether, and if so to
what extent, the Executive's base salary under this Agreement should be
increased. Any increased base salary shall be deemed thereafter to be the base
salary required by this Agreement, and in no event shall the Executive's base
salary under this Agreement be lowered without the mutual written consent of
both the Company and the Executive.

                                       2

<PAGE>

                  (b) Bonus.
                      -----

                         (i) Current Year Bonus. Executive shall, subject to his
continued employment hereunder and quarterly Board approval, be eligible to
receive a bonus of up to $450,000 for fiscal year 2003, ending June 30, 2003.
This bonus shall be paid in four quarterly installments, with such payment to be
made to the Executive in the first regularly scheduled paycheck following Board
approval and within thirty days following October 1, 2002, December 30, 2002,
March 30, 2003 and June 30, 2003. The Board will evaluate the Executive's
eligibility for the quarterly payment as follows:

                                  (A) For the first three quarters of fiscal
year 2003, the Board shall review the following factors to determine the
Executive's eligibility for the quarterly bonus payment: 1) is the Company on
target to achieve $15 million in EBITDA; 2) is the Company on target to
refinance $30 million in the aggregate of Charter School Notes at any time
between July 1, 2002 and June 30, 2003; and 3) is the Company on target to
continue to operate without the need for securing additional outside equity
financing between the date hereof and June 30, 2003. If at the end of each
quarter the Board finds that the Executive has made reasonable progress toward
achieving these goals, then it must award the Executive $112,500 as a quarterly
bonus payment. If the Board finds that reasonable progress toward these goals
has not been made, then no payment shall be made for that quarter.

                                  (B) On June 30, 2003 the Executive shall be
eligible to receive up to the remainder of his potential bonus amount as stated
above in Section 4(b)(i) above ($450,000 less any payments made to the Executive
under Section 4(b)(i)(A) above) if the Board determines that the Company has 1)
achieved $15 million in EBITDA; 2) refinanced $30 million of gross proceeds from
Charter School Notes; and 3) the Company has not to date issued substantial
incremental equity other than for executive compensation or similar programs.

                                  (C) For the purposes of the above clauses,
EBITDA and Gross Proceeds of Charter School Notes are defined in Section 7
below.

                          (ii) Subsequent Year. The terms and conditions
relating to Executive's bonuses for the subsequent year shall be negotiated
between the Employer and the Executive on an annual basis. Nevertheless, it is
the good faith intention of the parties that the potential bonus to be paid to
the Executive in the subsequent year shall be no less than $450,000.

                          (iii) Continued Employment. Notwithstanding any of the
foregoing, Executive shall not be entitled to receive any of the bonus payments
referred to above unless he shall, at end of each quarter, continue to be
employed hereunder. In the event that, as of any such bonus eligibility date,
his employment

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<PAGE>

hereunder shall have terminated for any reason whatsoever, he shall not be
entitled to receive any bonus amount for the present quarter unless otherwise
provided in Section 10 below but would be entitled to receive monies for the
previous quarter.

                  (c) Restricted Stock.
                      ----------------

                          (i) Current Year. The Board has approved a grant to
the Executive of one million shares of restricted stock for services rendered
from the date hereof until June 30, 2003. For the purposes of determining the
Executive's compensation with respect to such grant, the grant shall be priced
at the closing trade price on the day of Board approval, which was September 27,
2002. 800,000 of the shares will time vest quarterly in equal parts with
twenty-five percent vesting at the execution of this Agreement and 25% vesting
on each of December 30, 3003, March 31, 2003 and June 30, 2003 so long as the
Executive remains employed by the Company. The remaining 200,000 shares will
vest quarterly subject to Board approval. The Board shall determine whether or
not any of the shares vest based on the same quarterly criteria as the current
year bonus as stated above in Section 4(b)(i). If the Company should terminate
the Executive's employment with cause (as defined in Section 10), or if the
Executive should terminate his employment for any reason, prior to June 30,
2003, then all shares remaining unvested at the time of such termination would
be cancelled immediately, except as otherwise provided for in Section 10 below.

                          (ii) Fiscal Year 2004. Unless the Executive gives
notice of termination pursuant to Section 10(e) below, he will be eligible to
receive an additional one million shares of restricted stock subject to Board
approval for the employment services retained herein to be rendered between July
1, 2003 and June 30, 2004. The Board will be asked to approve this grant of
restricted stock at the last regularly scheduled Board meeting prior to June 30,
2003. For the purposes of determining the Executive's compensation with respect
to such grant, the grant shall be priced at the closing trade price on the day
of approval. Assuming Board approval is given, 440,000 shares will time vest in
twelve equal parts with one-twelfth vesting at the end of each month with such
vesting beginning July 1, 2003 and continuing through June 30, 2004 so long as
the Executive remains employed by the Company. The remaining 560,000 will vest
at such time, and in accordance with such performance qualifications, as
determined by the Board at the meeting approving the grant of the shares.

                  (d) Benefit Plans. Executive shall also be entitled to such
benefits, and to participate in such benefit plans, as other members of the
Office of the CEO are entitled to (and subject in any event to the participation
standards and other terms and conditions of any such benefits or plans).

                  (e) Withholding. All amounts paid to the Executive hereunder
shall be subject to such withholdings as may be required by applicable law.

                                       4
<PAGE>

          5. EXPENSES. The Employer shall reimburse the Executive for such
expenses as may be reasonably incurred by the Executive in furtherance of the
Executive's performance of the Executive's duties hereunder, subject to and in
accordance with the Employer's policies concerning reimbursement of such
expenses. The Company and the Executive shall execute a travel and expense
policy to be mutually agreed upon within thirty days following the execution of
this Agreement.

          6. CONFIDENTIAL AND PROPRIETARY INFORMATION.
             ----------------------------------------

                (a) Definition of Proprietary Information. For purposes of this
Agreement, the term "Proprietary Information" shall mean any sensitive or
otherwise confidential or proprietary materials or information related to the
business or activities of the Employer or its affiliates (including but not
limited to Edison Affiliates), whether or not reduced to writing or other
tangible form of expression and whether or not patentable or protectable by
copyright, which the Executive currently has or receives, has access to,
conceives or develops, in whole or in part, as a direct or indirect result of
his employment with the Employer or any affiliate, in the course of employment
with the Employer or any affiliate (in any capacity) or through the use of the
Employer's or any affiliate's facilities or resources. Proprietary Information
also includes third party information provided to the Employer or any affiliate
under an obligation of confidentiality. By way of illustration but not
limitation, Proprietary Information includes administrative procedures and
policies, internal administrative memoranda and forms, techniques, designs,
processes, formulae, data, plans for research and market development, course
development and marketing, business plans and budgets, unpublished financial
statements, license arrangements, prices and cost of supplies and products.

                (b) Non-Disclosure. Except to the extent otherwise authorized in
writing by the CEO or necessary in the ordinary course of performing the
Executive's duties hereunder, at all times during the Employment Period and
thereafter, the Executive shall (i) hold all Proprietary Information in the
strictest confidence, (ii) not use Proprietary Information for any purpose which
is detrimental to the Company and (iii) not disclose any Proprietary Information
to any person or entity, by publication or otherwise.

                (c) Return of Information. All notes, data, tapes, reference
materials, memoranda and other documents, materials or other tangible matter
constituting or containing Proprietary Information shall (as between the
Employer or the relevant affiliate, on the one hand, and the Executive, on the
other hand) belong exclusively to the Employer or the relevant affiliate. At any
time upon request of the Employer, or upon termination of Executive's employment
with the Employer, the Executive shall return to the Employer all such
documents, materials and tangible matter together with all copies thereof in the
Executive's possession or control.

                                       5
<PAGE>

                  (d) Ownership of Information. All Proprietary Information
shall (as between the Employer or the relevant affiliate, on the one hand, and
the Executive, on the other hand) be and remain the sole property of Employer or
the relevant affiliate. The Executive hereby assigns to Employer or the relevant
affiliate all of Executive's right, title and interest in any idea or concept,
invention, work of authorship or other information or material (whether or not
patentable or protectable by copyright) conceived or developed in whole or in
part by Executive, or in which the Executive may have aided the development,
while employed by the Employer or the relevant affiliate, including, without
limitation, any Proprietary Information that relates to the business of the
Employer or the Education industry. If any such works of authorship are deemed
in any way to fall within the definition of "work for hire", as such term is
defined in 17 U.S.C 101, such works shall be considered "works made for hire",
the copyright of which shall be owned solely, completely and exclusively by
Employer or the relevant affiliate. If any such works are determined not to be
"works for hire", such works are hereby automatically owned by and assigned and
transferred completely and exclusively to the Employer or the relevant
affiliate. The Executive agrees to execute, acknowledge and deliver any
instruments or documents and to do all other things reasonably requested by the
Employer or the relevant affiliate (both during and after the Executive's
employment with the Employer) in order to completely vest in the Employer or the
relevant affiliate all ownership rights in such ideas, concepts, inventions,
works, information and materials. The Executive further agrees to disclose
immediately to the Employer all Proprietary Information conceived or developed
in whole or in part by the Executive at any time while employed by the Employer.

          7. CERTAIN COVENANTS.
             -----------------

                  (a) Certain Terms. For purposes of this Agreement:
                      -------------

                          (i) the term "directly or indirectly" shall include,
without limitation, a reference to any business or entity: (A) which Executive
engages in, consults for, manages, operates, controls or supervises or in which
Executive participates in the management, operation, control or supervision of;
or (B) in which Executive has any direct or indirect ownership or financial
interest, other than the passive ownership by Executive of less than three
percent (3%) of the voting capital stock of a publicly held corporation;

                          (ii) the term "Determination Date" shall mean the
date, within the Restricted Period, with respect to which a determination as to
the application of Section 7(b) is being made;

                          (iii) the term "Person" shall mean any individual,
corporation, partnership, trust or other entity;

                                       6
<PAGE>

                          (iv) the term "Restricted Period" shall mean the
period commencing on the date hereof and ending on the date falling one year
after the date of termination of the Executive's employment with the Employer;

                          (v) the term "Restricted Business" shall refer to any
business that directly competes with Edison Schools Inc. in the for-profit K-12
sector. This sector includes businesses that provide directly or indirectly
whole school K-12 management or any education related business that Edison shall
be engaged in at the time of separation. A competing business shall not include
traditional non-profit education;

                          (vi) the term "Restricted Territory" shall mean all
states in which any aspect of the Restricted Business is, or was (as the case
may be), being conducted by the Employer or any affiliate as of the earlier of
(A) the Determination Date and (B) the date on which the Executive's employment
with the Employer shall have terminated.

                          (vii) the term "EBITDA" shall mean earnings before
interest, income tax expense, depreciation and amortization and stock based
capital charges and other onetime or specific event related charges including
but not limited gains or disposals on assets, charges related to closings pf
school, charges relating to losses on charter or other loans, extra ordinary
items and write-downs of investments and intangibles.

                          (viii) the term Gross Proceeds of Charter School Notes
shall mean the gross amount of funds received on a refinancing of charter school
loans before any deductions commissions or deal fees without deduction of monies
to be repaid to existing lenders.

                          (ix) For purposes of this Section 10, the term
"Change in Control" shall mean (A) the acquisition by any person or group of
persons acting in concert, of beneficial ownership (within the meaning of Rule
13d-3 under the Securities Exchange Act of 1934, as amended), directly or
indirectly, through a purchase, merger or other acquisition transaction or
series of transactions, of securities of the Employer entitling such person or
group to exercise 50% or more of the combined voting power or beneficial
ownership of the Employer's securities, (B) the transfer, whether by sale or
merger, of all or substantially all of the business and assets of the Employer
to any person or group or persons acting in concert, or (C) the adoption of a
plan of liquidation or dissolution of the Employer, other than any such
acquisition by or transfer to (x) the Employer or an affiliate of the Employer,
(y) a trustee or other fiduciary acting on behalf of any employee benefit plan
maintained by the Employer or by a member of the Employer's control group
(within the meaning of the Employee Retirement Income Security Act of 1974, as
amended), or (z) any person who currently owns at least 25% of the combined
voting power of the Employer's securities (on a fully diluted basis).

                                       7
<PAGE>

For purposes of this subsection (ii) the term "affiliate" shall mean, with
respect to any person, any other person that, directly or indirectly through one
or more intermediaries, controls, is controlled by or is under common control
with such first person, and the term "control" shall mean the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of an entity (other than a natural person), whether
through ownership of voting capital stock, by contract or otherwise.

                  (b) Non-Competition and Non-Solicitation. As a material
inducement to the Company to employ Executive and to pay the compensation
provided for hereunder, and without limiting any other obligation the Executive
may have under applicable law as an officer or executive of the Employer, during
the Restricted Period, the Executive shall not, directly or indirectly, anywhere
within the Restricted Territory, (i) engage in any aspect of the Restricted
Business or assist, advise, represent or consult for any other Person in
connection with such Person engaging in any aspect of the Restricted Business or
(ii) induce, or attempt to induce, any employee of the Employer or any
subsidiary to leave such employ, or to accept any other position or employment,
or assist any other Person in hiring any such employee, unless that person is
such an individual the Executive recruited to join the Company during the
employment period.

                  (c) Covenant to Cooperate. Executive agrees that during the
Employment Period and thereafter to cooperate with Employer in its defense or
settlement of any and all claims brought against the Employer that arose during
Executive's employment.

          8. CERTAIN ACKNOWLEDGEMENTS; SEVERABILITY.
             --------------------------------------

                 (a) Acknowledgment of Reasonableness. The Executive has
carefully read and understood Sections 6 and 7 of this Agreement (collectively,
the "Restrictive Covenants") and agrees that they are fair and reasonable and
reasonably required for the protection of the business and the interest of the
Employer and its affiliates.

                  (b) Specific Performance. The Executive agrees that damages
cannot reasonably compensate the Employer or any affiliate in the event of a
violation of the Restrictive Covenants and that it would be difficult to
ascertain the damages, which would be suffered by them. Accordingly, the
Executive hereby agrees and consents that in the event of any actual or
threatened such breach or violation, the Employer and/or the relevant affiliate
shall be entitled to and may obtain injunctive relief in order to prevent a
violation, or a continued violation, of the terms of this Agreement and/or may
otherwise specifically enforce the applicable covenants and restrictions. The
foregoing shall not limit the Employer or any affiliate in the pursuit of any
other rights or remedies it may have hereunder or at law or in equity, including
damages.

                                       8
<PAGE>

                 (c) Severability. The parties intend that the Restrictive
Covenants be enforced to the fullest extent permissible under applicable law. If
any particular term or provision thereof is adjudicated or determined, in any
jurisdiction and to any extent, to be invalid or unenforceable (including,
without limitation, as to duration, substantive scope or geographic area), such
term or provision shall be ineffective only as to such jurisdiction and only to
the extent of such invalidity or unenforceability, without invalidating or
rendering unenforceable any other term or provision of this Agreement. To that
end, the court shall be entitled to reformulate any term or provision deemed by
it to be ineffective or unenforceable, so as to render the covenants and
restrictions contained herein enforceable to the fullest extent permitted by
applicable law.

          9. COMPLIANCE WITH OTHER AGREEMENTS. The Executive represents and
warrants that the execution of this Agreement and Executive's performance
hereunder will not, with or without the giving of notice or the passage of time,
or both, conflict with, result in the breach of or the termination of, or
constitute a default under any agreement to which the Executive is or may be
bound. Executive represents and warrants that (other than this Agreement) the
Executive is not bound by any oral or written agreements which prohibit or
restrict the Executive from: (a) competing with, or in any way participating in
a business which competes with, any former employer or business of the
Executive; (b) soliciting personnel of the former employer or business to leave
such former employer's employment or to leave such business; or (c) soliciting
customers of the former employer or business or another business.

          10. TERMINATION. The following provisions set forth the only
circumstances under which this Agreement, and therefore the employment of
Executive hereunder, may be terminated prior to June 30, 2004:

                (a) Without Cause.
                    -------------

                          (i) Fiscal Year 2003. Notwithstanding any other term
or provision of this Agreement, the Employer may terminate this Agreement at any
time upon at least 5 days' notice to the Executive on or before June 30, 2003.
Should such a termination occur, in consideration for executing a Separation and
Release Agreement in the form customarily used by the Employer at the time of
termination, the Employer shall (A) accelerate the vesting of all the then
unvested shares of restricted stock that were granted to the Executive pursuant
to this Agreement prior to the date on which notice of termination was given,
(B) shall owe to the Executive a sum equal to the amount of base salary which
(at the then-current rate) would otherwise have been paid to the Executive
during the period from the date of termination through the end of the fiscal
year, and (C) owe the Executive $450,000 less sums already paid for bonus
payments according to the terms of Section 2(b)(i). The aforesaid sums described
in (B) and (C) above, will be paid to Executive in the first regularly scheduled
paycheck

                                       9

<PAGE>

following the effective date of the termination, if such payment is not made, or
if the vesting of the stock is not accelerated, the Company must continue to pay
the Executive his daily rate of pay until such action is not taken regardless of
whether or not future employment services continue to be rendered. Executive
acknowledges that the acceleration and payments pursuant to this Section 10(a)
is in substitution for, and not in addition to, any severance policy or similar
policy or program followed by the Employer or any Affiliate, and Executive
hereby waives any such rights to receive any payments under any such other
policies and programs.

                          (ii) Fiscal Year 2004. Notwithstanding any other term
or provision of this Agreement, the Employer may terminate this Agreement at any
time upon at least 5 days' notice to the Executive after June 30, 2003. In the
event of any such termination neither party shall have any further obligations
to the other, financial or otherwise following the effective date of the
termination.

                  (b) For Cause. This Agreement may be terminated immediately
by the Employer (by written notice to the Executive) for cause. For purposes of
this Agreement, "Cause" shall mean:

                          (i) the Executive's breach, in any material respect,
of this Agreement (including the Executive's refusal or other failure, other
than by reason of mental or physical disability, to perform any of the
Executive's duties hereunder), the Executive shall have five days to remedy and
cure such breach following the receipt of written notice of the same;

                          (ii) the Executive's commission of any material act
of fraud, or moral turpitude in connection with his employment;

                          (iii) the Executive's commission of any willful or
intentional act having the effect of injuring, in any material respect, the
reputation, business or business relationships of the Employer or any of its
affiliates;

                          (iv) the entering by the Executive of a plea of
guilty or nolo contendere to, or the conviction of the Executive for, a felony
or crime which carries a potential penalty of imprisonment for more than ninety
(90);

                          (v) the Executive's habitual abuse of alcohol or
prescription drugs or abuse of controlled substances;

                  (c) Death or Disability. This Agreement shall terminate
automatically upon the occurrence of Executive's death. In addition, the
Employer shall have the right, at any time after the Executive shall have become
disabled, to terminate this Agreement immediately. For purposes of this
Agreement, the Executive shall be deemed to have become disabled when, by reason
of physical or mental illness, incapacity or disability, the Executive shall
fail to perform the Executive's duties

                                       10
<PAGE>

hereunder for one continuous period of ninety (90) days or more, or shorter
periods aggregating one hundred twenty (120) days or more, within any period of
twelve (12) consecutive months; provided, however, that any days of disability
separated by ten (10) or fewer days shall be considered continuous. During any
period when the Executive implicitly or explicitly purports to be unable to
perform the Executive's duties hereunder by reason of physical or mental
illness, incapacity or disability, the Executive, at the request and expense of
Employer, shall submit to one or more examinations by a physician of the
Employer's choice.

                  (d) Termination by the Executive for Good Reason. The
Executive may terminate this Agreement at any time upon at least 5 days' written
notice to the Company if the Company breaches any of the material terms of this
Agreement, including but not limited to the failure of the Office of the CEO to
operate in accordance with the terms set forth in Appendix A attached hereto.

                          (i) If the Executive gives notice of termination as
provided above, the Company shall have 5 days to cure such breach. If the breach
is cured, (A) the Executive has the option to elect to keep this Agreement in
full force and effect or (B) if despite the Company's curing during the allowed
time period, the Executive still wishes to terminate this Agreement, he may do
so, provided however that the Company shall have no further obligations to him
and the provisions of Section 10(d)(ii) shall not come into effect.

                          (ii) If the Executive gives notice of his intent to
terminate this Agreement due to the failure of the Office of the CEO to comply
with the terms of Appendix A prior to June 30, 2003, and the Company fails to
cure as described above, then on the effective date of termination (defined as
the 6th day after the notice was served on the Company) and in consideration for
executing a Separation and Release Agreement in the form customarily used by the
Employer ( a form of which will be mutually agreed upon within 30 days of the
execution of this agreement and attached here to as Exhibit B) at the time of
termination, the Employer shall (A) accelerate the vesting of all the then
unvested shares of restricted stock that were granted to the Executive pursuant
to this Agreement prior to the date on which notice of termination was given,
(B) shall owe to the Executive a sum equal to the amount of base salary which
(at the then-current rate) would otherwise have been paid to the Executive
during the period from the date of termination through June 30, 2003, and (C)
owe the Executive $450,000 less sums already paid for bonus payments according
to the terms of Section 2(b)(i). The aforesaid sums described in (B) and (C)
above, of shall be payable to Executive in substantially equal and successive
installments, all of which shall be paid on or about the same dates on which
payments of salary are made to other Executives of the Employer. Executive
acknowledges that the acceleration pursuant to this Section 10(d) is in
substitution for, and not in addition to, any severance policy or similar policy
or program followed by the Employer or any Affiliate, and Executive hereby
waives any such rights to receive any payments under any such other policies

                                       11

<PAGE>

and programs. If the Executive terminates this Agreement after June 30, 2003,
the Company shall have no further obligations to the Executive except to pay any
compensation owed to the Executive for the previous quarter or year.

                  (e) Termination by Either Party For Year Two. Either party may
terminate this Agreement effective June 30, 2003 for any reason or no reason by
giving the other written notice of such intent by May 1, 2003. If such notice is
provided, all terms and conditions of this Agreement shall remain in full force
and effect through June 30, 2003 and thereafter this Agreement shall be
terminated with our further obligation of either party to the other except as to
monies and shares owed to the Executive pursuant to the terms of the this
Agreement.

                  (f) Change in Control. If there is a change in control prior
to June 30, 2003 as defined in Section 7(a)(ix) above, then the Employer shall
(A) accelerate the vesting of all the then unvested shares of restricted stock
that were granted to the Executive pursuant to this Agreement prior to the date
on which notice of termination was given, and (B) owe the Executive $450,000
less sums already paid for bonus payments according to the terms of Section
2(b)(i).

          11. OBLIGATIONS OF EMPLOYER UPON TERMINATION. Upon the termination of
this Agreement, regardless of the reason therefore, the Employer shall be under
no further obligation to the Executive except to pay the Executive (a) any
salary owing to the Executive under Section 4(a) for services rendered up to and
including the last day of the Employment Period (the "Termination Date"), (b)
any payment owing to the Executive under Section 10(a)(i) or 10(d)(ii) in the
event of a termination by the Employer without cause or failure by the Office of
the CEO to comply with the terms of Appendix A (which failure is not cured), as
the case may be, (c) any reimbursement for expenses incurred by the Executive
pursuant to Section 5 up to and including the Termination Date, and (d) any
compensation or other sums otherwise owed to the Executive as of the Termination
Date in connection with his bonus arrangements with the Employer or any benefit
plan of the Employer. Benefits payable to the Executive pursuant to any benefit
plan of the Employer shall be subject to and payable in accordance with the
terms of such plan.

          12. MISCELLANEOUS.
               -------------

                  (a) Assignment; Binding Effect. This Agreement is personal in
nature and neither of the parties hereto shall, without the consent of the
other, assign or transfer this Agreement or any rights or obligations hereunder;
provided, however, that the Employer shall have the right to assign and/or
delegate any or all of its rights and obligations hereunder to (i) any person or
entity who shall acquire (whether by sale of assets, merger or otherwise) all or
substantially all of its assets (excluding, for purposes of each such
determination, cash, cash equivalents and any real property or interests
therein) or (ii) any affiliate of the Employer and that the Executive shall have
the right to assign

                                       13
<PAGE>

the proceeds hereof to a family trust or charitable trust controlled by him or
his family. Any assignment or delegation by either party in violation of this
Agreement shall be null and void ab initio. Subject to the foregoing two
sentences, this Agreement and all of the provisions hereof shall be binding
upon, and inure to the benefit of, the parties hereto, and their successors,
assigns, executors, administrators, personal and legal representatives, heirs
and distributes.

                  (b) Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York (without
regard to principles of conflicts of law). Each party to this Agreement
expressly and irrevocably (a) consents that any legal action or proceeding
against him, her or it under, arising out of or in any manner relating to, this
Agreement may be brought in any court of the State of New York located within
the Southern District of New York or in the United States District Court for the
Southern District of New York, (b) consents and submits to the personal
jurisdiction of any of such courts in any such action or proceeding, (c)
consents to the service of any complaint, summons, notice or other process
relating to any such action or proceeding by delivery thereof to him, her or it
by hand or by any other manner provided for in Section 12(d), (d) waives any
claim or defense in any such action or proceeding based on any alleged lack of
personal jurisdiction, improper venue or forum non conveniens or any similar
basis, and (e) waives all rights, if any, to trial by jury with respect to any
such action or proceeding. Nothing in this Section shall affect or impair in any
manner or to any extent the right of any party to commence legal proceedings or
otherwise proceed against any other party in any jurisdiction or to serve
process in any manner permitted by law.

                  (c) Counterparts. This Agreement may be executed in one or
more counterparts each of which shall be deemed an original for all purposes.

                  (d) Notices. All notices, requests, demands and other
communications provided for or permitted under this Agreement shall be in
writing and shall be either personally delivered (including delivery by express
couriers such as Federal Express) or sent by prepaid certified mail, return
receipt requested, addressed to the party to which notice is to be given at the
address set forth below for such party, or to such other address as such party
may have fixed by notice given in accordance with the terms hereof:

                           If to the Executive:
                           Charles J. Delaney
                           One Inwood Rd.
                           Darien, Connecticut 06820

                                       13

<PAGE>

                           If to the Employer:
                           Edison Schools Inc.
                           521 Fifth Avenue, 15th Floor
                           New York, New York  10175
                           Attention:  Chief Executive Officer

                           with a copy to:

                           Edison Schools Inc.
                           521 Fifth Avenue
                           New York, New York 10175
                           Attention:  General Counsel

Any notice sent as aforesaid shall be deemed given and effective upon the
earlier of (i) delivery to the address for the receiving party provided for
herein and (ii) the date falling three days after notice of attempted delivery
has been left at the address to which a notice to the receiving party is to be
sent hereunder.

                  (e) Continuation. In the event that this Agreement shall
expire and Executive shall nevertheless continue to be employed by the Employer,
the parties acknowledge that the terms of this Agreement, absent a supplemental
written agreement between the parties to the contrary (and except for the
provisions of Sections 6, 7, 8 and, to the extent relevant to the preceding
three sections, 12), shall not be deemed to apply to such post-expiration
employment, any such employment being (and without limiting the foregoing) on an
at-will basis.

                  (f) Survival. Notwithstanding Section 10, the provisions of
Sections 6, 7, 8, 11 and 12 shall survive the termination hereof, regardless of
the reason therefore.

                  (g) Entire Agreement; Modification and Waiver. This Agreement
constitutes the entire agreement between the parties hereto, and expressly
supersedes or replaces any and all prior agreements between the parties, oral or
written, with the respect to the subject matter hereof. None of the terms or
provisions hereof shall be modified or waived, and this Agreement may not be
amended or terminated, except by a written instrument signed by a party against
which modification, waiver, amendment or termination is to be enforced. No
waiver of any one provision shall be construed as a waiver of any other
provision and the fact that an obligation is waived for a period of time shall
not be considered to be a continuous waiver. Without limiting the foregoing, no
waiver of any breach or violation hereof shall be implied from forbearance or
failure by the Employer to take action.

                                       14

<PAGE>

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              ----------------------------------------------------

                                       15
<PAGE>

                           IN WITNESS WHEREOF, this Agreement has been entered
into as of the date first set forth above.

                                  EMPLOYER:

                                  EDISON SCHOOLS INC.

                                    /s/   H. Christopher Whittle
                                  ----------------------------------------
                                  By:  Chris Whittle
                                  Title: Chief Executive Officer

                                  EXECUTIVE:

                                  /s/ Charles J. Delaney
                                  ----------------------------------------
                                  CHARLES J. DELANEY

                                       16
<PAGE>

                                   APPENDIX A
                                   ----------

                      The Office of Chief Executive Officer
                      -------------------------------------
1.       The Office of the CEO shall be made up of three members: i) the Chief
         Executive Office; ii) the Vice Chairman, Business and
         Finance and iii) the President and Chief Operating Officer.
2.       The members of the Office of the CEO must meet not less than twice a
         month with each meeting lasting for no less than two consecutive hours.
         The members shall set a schedule of meetings at the beginning of each
         quarter.
3.       All decisions regarding capital investment in any school, product or a
         contractual commitment of capital must be approved unanimously in
         writing by all members of the Office of the CEO.
4.       All decisions regarding employee compensation, for existing central
         staff members or new hires (i.e. employees whose primary workplace is
         not in the schools), including promotions, raises and bonuses, stipends
         or other form of compensation, must be presented in writing to the
         Office of the Executive and approved by two thirds of the members.
         Issues of compensation must be addressed by the Office of the Executive
         at least once a month.
5.       Approval of all annual budgets for both central and sites must be
         unanimously approved in writing by all members of the Office of the
         Executive. Increasing the expenses a department or division of the
         Company in the aggregate must also be unanimously approved in writing
         by all members of the Office of the Executive.
6.       A decision not to discipline an employee in accordance with the
         policies regarding disciplinary actions to be taken for violations of
         the Business Code of Conduct must be reviewed by the Office of the CEO
         as well as the Chief Financial Officer and must be approved in writing
         by three out of four individuals.
7.       All debt or equity issuances other than to employees must be approved
         unanimously in writing by all members of the Office of the CEO.

<PAGE>

                                   APPENDIX B

                    Separation Agreement and General Release

                     TO BE ADDED WITHIN 30 DAYS OF EXECUTION

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