Document:

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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as
of the 20th day of December, 1999, effective as of January 1, 2000, by and
between BEACON EDUCATION MANAGEMENT LLC, a Tennessee limited liability company
("Employer"), and MICHAEL B. RONAN ("Executive").

                                   WITNESSETH:

         WHEREAS, Employer is a Tennessee limited liability company engaged in
the management of schools and educational institutions; and

         WHEREAS, Executive is a qualified administrator, is duly licensed as an
administrator.

         WHEREAS, Employer desires to employ Executive to provide educational
management services for and on behalf of Employer, and Executive desires to
accept such employment, subject to the terms and conditions set forth in this
Agreement.

         NOW, THEREFORE, in consideration of the mutual promises, covenants,
representations and warranties contained herein, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound, agree as follows:

SECTION 1.          EMPLOYMENT OF EXECUTIVE.

         1.1      General Duties of Executive. Employer hereby engages Executive
to serve as the Chief Operating Officer on behalf of Employer on the terms and
conditions set forth herein. The parties hereto acknowledge that Executive may
perform the duties hereunder from his present location. Executive hereby accepts
such engagement by Employer. Executive agrees to serve in such capacity
exclusively through this Agreement on a full-time basis and, in furtherance
thereof, to provide the following professional services:

         1.1.1    Professional Services. Executive shall oversee services
including but not limited to the following:

         -        marketing and development of school management contracts to
                  charter boards

         -        implementation of the Employer's school management contracts

         -        financial controls and human resources for the Employer and
                  the schools it managed

         -        student recruitment for schools managed by the Employer

         -        design and implementation of the Employer's educational
                  program

         -        compliance by the Employer and the schools it manages with
                  relevant laws and regulations

         -        design and procurement of facilities for schools managed by
                  the Company

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         -        all other aspects of the Employer's daily operations.

         subject to the direction and control of the Managing Members of the
Employer.

                  1.1.2    Time Commitment. Executive shall devote Executive's
full business time and efforts to rendering administrative services on behalf of
Employer.

                  1.1.3    Professionalism and Personal Conduct. All of
Executive's services shall be performed in accordance with the ethical standards
of the education profession. Executive shall avoid all personal acts, habits,
and usages which might injure in any way, directly or indirectly, executive's
professional reputation, or the reputation of Employer. Executive shall promote
the professional practice of Employer to the extent permitted by law and the
applicable standards of professional ethics.

                  1.1.4    Other. Executive shall perform any other duties,
within the scope of employment as an educational administrator and manager, as
Employer may from time to time reasonably direct.

         1.2      Executive's Representations and Warranties. Employer has
entered into this Agreement in reliance on Executive's representations and
warranties to Employer as follows:

                  1.2.1    Administrator Certification. Executive has, and will
maintain throughout the term of this Agreement, a license to act as a School
Superintendent. Executive shall promptly advise Employer of any cancellation,
suspension or impairment thereof.

                  1.2.2    No Violation. Executive is not in breach of, and will
not during the term of this Agreement be in breach of, any other contract,
obligation or covenant that would affect Executive's ability to perform
hereunder and, as a result of entering into this Agreement, will not breach any
such contract, obligation or covenant.

                  1.2.3    Prior Actions.

                           (a)      Executive's administrative certification in
any state has never been suspended, revoked or restricted.

                           (b)      Executive has never been reprimanded,
sanctioned or disciplined by any licensing board or state or local school board.

                           (c)      There have been no claims threatened or
pending against Executive for abuse.

                           (d)      Executive has never been denied membership
or reappointment of membership on the educational staff of any school or
institution and no school position has ever been suspended, curtailed or
revoked.

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         1.3      Conflict of Interest. Executive shall not accept employment or
contractual obligations with any other educational entity, organization, or
individual without Employer's written approval, which approval shall not be
unreasonably withheld so long as such activity does not interfere with
Executive's duties contained in this Agreement.

         1.4      Employer's Representations and Warranties. Employer hereby
warrants and represents as follows:

                  1.4.1    Employer is a Tennessee limited liability company,
engaged in the management of schools and educational institutions by and through
its subsidiaries qualified in the respective states in which Employer is engaged
in the management of such schools.

SECTION 2.          COMPENSATION AND BENEFITS.

         2.1      Compensation. For services rendered pursuant to this
Agreement, Executive shall receive the following compensation:

                  2.1.1    Salary. As base salary during the period January 1,
2000 through June 30, 2000, Employer shall pay Executive at the rate of One
Hundred Thirty Thousand Dollars ($130,000.00 ) per annum. Such base salary shall
increase to One Hundred Thirty Five Thousand Dollars ($135,000.00 ) per annum
for the period July 1, 2000 through June 30, 2001, and shall increase to One
Hundred Forty-five Thousand ($145,000.00) per annum for the period July 1, 2001
through June 30, 2002. For the period July 1, 2002 through September 30, 2002,
the base salary shall increase to One Hundred Fifty Five Thousand Dollars
($155,000.00) per annum.

                  2.1.2    Contribution Allowance. In accordance with two
Contribution Allowance Agreements dated July 2, 1997 and December 12, 1996
between Executive and Employer, Executive shall continue to vest over time in
options to purchase up to a total of twenty-seven thousand (27,000) Class B
Points of Interest pursuant to Employer's 1996 Points of Interest Option Plan
under the terms set forth in the two Contribution Allowance Agreements.

                  2.1.3    Bonuses. On September 15 of each year, Executive
shall be eligible to receive a bonus payment at the discretion of the Employer's
Board. On or before March 1, 2000, Executive and Employer's Board shall meet to
determine the amount of the bonus for which Executive shall be eligible each
year, and the criteria upon which the bonus payment shall be determined. At that
time, such amounts and criteria shall be added as an addendum to this Agreement
in a form similar to that attached hereto as Exhibit A.

                  2.1.4    Payment of Compensation. Employer shall pay Executive
all such compensation in accordance with Employer's normal payroll practices.

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         2.2      Tax Withholdings. Employer shall withhold from the
compensation payable to Executive any and all federal, state or local taxes and
fees as is customary or required by law.

         2.3      Benefits. Executive shall be entitled to participate in group
medical, dental, accident, disability, health and life insurance plans,
retirement funds, and other standard benefits (the "Benefits"), as may be
provided by Employer, from time to time, to its employees of comparable status,
subject to, and to the extent that, Executive is eligible under such benefit
plans in accordance with their terms. The parties hereto acknowledge that such
Benefits are subject to change from time to time as determined by the Managing
Members.

         2.4      Vacation. Executive shall be entitled to the same paid
vacation per annum as may be provided by Employer to its employees of comparable
status but in no event shall such vacation be less than two weeks per annum.
Executive shall schedule such vacation at times which are mutually acceptable to
Employer and Executive.

SECTION 3.          TERM AND TERMINATION.

         3.1      Term. The term of this Agreement shall be for a period of two
years, nine months, commencing on January 1, 2000 and ending on September 30,
2002.

         3.2      Termination By Executive For Cause. During the term of this
Agreement, Executive shall have the right to terminate this Agreement if there
has been a material breach of the provisions hereunder by Employer, provided
such breach is not corrected within thirty (30) days after written notice of the
breach is delivered to Employer by Executive.

         3.3      Termination By Employer for Cause. During the term of this
Agreement, whether during the Initial Term or during any renewal term, Employer
shall have the right to immediately terminate the Agreement and all its
obligations hereunder, upon any of the following occurrences:

                  (a)      death of Executive;

                  (b)      the failure of Executive to perform his or her duties
                           hereunder because of a physical or mental illness or
                           injury or otherwise for a period of ninety (90)
                           consecutive days after use of all accrued vacation
                           and sick days;

                  (c)      adjudication of Executive as legally incompetent by
                           any court having jurisdiction to determine such
                           matter;

                  (d)      Executive's conviction of or try of a plea of nolo
                           contendere for a felony or any crime involving moral
                           turpitude;

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                  (e)      acts of dishonesty by Executive towards Employer;

                  (f)      continued acts which violate Employer's policies and
                           procedures as specified in the Employer's written
                           employee manual, or acts which violate Employer's
                           professional practice standards or quality assurance
                           standards, after Executive has been given notice by
                           Employer of such acts and a reasonable time (not to
                           exceed thirty (30) days from receipt of notice) to
                           cure such acts;

                  (g)      a material breach of the provisions hereunder by
                           Executive, including Executive's neglect, failure or
                           refusal to perform or observe any or all of
                           Executive's obligations hereunder.

         3.4      Effects of Termination.

                  3.4.1    Final Payment. Upon termination of this Agreement,
Employer will pay Executive as Executive's final compensation under this
Agreement: (i) any salary and reimbursable expense due and owing to Executive
for the period through the effective date of such termination; and (ii) vacation
time as of the effective date of such termination as reflected on Employer's
personnel records of Executive, such compensation to be determined pursuant to
the Employee Manual, less any outstanding amounts owed by Executive to Employer.

                  3.4.2    Resignation from Employer. Upon termination of this
Agreement, Executive shall be deemed to have resigned all positions then held by
Executive with Employer, including, without limitation, officerships or other
management positions in Employer.

                  3.4.3    Removal from Employer Offices. Executive shall
immediately vacate Employer's offices; provided, however, Employer shall afford
Executive reasonable access to its offices to remove Executive's personal
property.

                  3.4.4    Further Obligations. Upon the expiration or earlier
termination of this Agreement, neither party shall have any further obligations
hereunder except for (i) obligations accruing prior to the date of expiration or
termination and (ii) obligations, promises or covenants contained herein which
are expressly made to extend beyond the term of this Agreement, including,
without limitation, the covenants set forth in Section 4.

SECTION 4.          RESTRICTIVE COVENANTS.

         4.1      Confidentiality. Executive acknowledges and agrees that, while
employed by Employer and thereafter, Executive shall not, at any time, disclose
to any person, firm, corporation or other entity, or use for Executive's own
benefit whether or not for

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monetary gain, any confidential information ("Confidential Information")
concerning the conduct or the business affairs of Employer, including, without
limitation, trade secrets, know-how, inventions, curriculum, customer and
supplier lists, business plans, operation 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. Executive acknowledges that all records, data,
communications and other property of Employer entrusted or loaned, to Executive
or prepared by Executive during the term of this Agreement (including, but not
limited to, any inventions, data, creations or other work product) are
Employer's property and Executive agrees to return any material so loaned to or
so prepared by Executive 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
Executive's action or inaction.

         4.2      Ownership of Work Product. Employer shall own, and Executive
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
Executive's services hereunder, or conceived of or produced during Executive's
employment (including but not limited to, any inventions, data, creations,
software programs or other work product) (collectively, "Work Product").
Executive will execute and deliver such assignments, certificates of authorship
or other instruments as Employer may require from time to time to evidence
ownership of such Work Product.

         4.3      Non-Competition Covenant. During Executive's employment,
Executive shall not engage as principal, agent, trustee, employee or stockholder
or through the agency of any 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.

         4.4      Non-Solicitation. During the term of this Agreement and for a
period of two years thereafter (the "Non-Solicitation Period"), Executive 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 person or entity 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.

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         4.5      Definition of "Customer". For the purposes of Section 4
hereof, "Customer" means any individual or entity (including, without
limitation, any school, educational board, or educational institution,
executive, or executive consulting group) to whom Employer directly or
indirectly provides, either currently or at any time during Executive'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 Executive's employment.

         4.6      Injunctive Relief. Executive acknowledges and agrees that any
breach of Section 4 hereof 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 Section 4 hereof will be inadequate.
Accordingly, Executive 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 Executive 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 threatened 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.

         4.7      Reasonableness of Restrictions. The parties agree that the
duration and scope of the restrictions imposed under Section 4 hereof (the
"Covenants") are fair and reasonable and are reasonably required for the
protection of Employer. Should any court of competent jurisdiction determine
that any of the Covenants, or any part thereof, are unenforceable because of the
duration or scope of such provision, the parties hereto agree that such court
shall have the power to substitute, to the extent enforceable, provisions
similar hereto or such other provisions as will enable Employer, to the fullest
extent practicable, to enjoy the benefits intended to be agreed upon by and
under this Section 4.

         4.8      Litigation Costs. In the event a legal action is instituted to
enforce this Section 4, each party shall be responsible for its costs and
expenses, including attorney's fees, incurred in connection with such action.

SECTION 5.          MISCELLANEOUS.

         5.1      Assignment. Employer may assign this Agreement to any entity
related or affiliated with Employer. Executive shall not have the right to
assign this Agreement or delegate any of Executive's responsibilities hereunder
without the prior written consent of Employer, which consent may be withheld in
its sole and absolute discretion. Any attempted assignment in violation of this
Section shall be null and void.

         5.2      Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior

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agreements, representations, warranties, statements, promises and
understandings, whether oral or written, with respect to the subject matter
hereof.

         5.3      Modifications. This Agreement may not be amended, altered or
modified except by writing signed by the parties.

         5.4      Notices. Any notice or other communication required or
permitted by this Agreement shall be in writing and shall either be
hand-delivered, sent via overnight mail by a reputable overnight courier such as
Federal Express, or sent by certified or registered mail (postage prepaid)
addressed as follows:

         If to Employer:            Beacon Education Management LLC
                                    28 White Bridge Road, Suite 210
                                    Nashville, Tennessee 37205
                                    Attention:  William R. DeLoache, Jr.

         With copy to:              Bass, Berry & Sims PLC
                                    2700 First American Center
                                    Nashville, Tennessee 37238-2700
                                    Attention: Howard H. Lamar III

         If to Executive:           Michael B. Ronan
                                    121 Upton Road
                                    P.O. Box 171
                                    Uxbridge, Massachusetts 01569

or to such other addresses or persons as may be furnished from time to time in
writing by one party to the other party. The notice shall be effective on the
date of delivery if delivered by hand, the date of delivery as indicated on the
receipt if sent via overnight mail, or the date indicated on the return receipt
whether or not such notice is accepted by the addressee.

         5.5      Third-Party Benefits. None of the provisions of this Agreement
will be for the benefit of, or enforceable by, any third-party beneficiary.

         5.6      Governing Law. This Agreement shall be governed by the laws of
the State of Tennessee and that venue for all such disputes under this Agreement
shall be in the applicable state and federal courts located in Davidson County,
Tennessee.

         5.7      Headings. The Section headings in this Agreement are inserted
only as a matter of convenience, and in no way define, limit, extend or
interpret the scope of this Agreement or of any particular Section.

         5.8      Severability. The validity, legality or enforceability of the
remainder of this Agreement will not be affected even if one or more of the
provisions of this Agreement will be held to be invalid, illegal or
unenforceable in any respect.

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         5.9      Waiver of Breach. The waiver by either party hereto of a
breach or violation of any provision of this Agreement shall not operate as, or
be construed to be, a waiver of a subsequent breach of the same or other
provision hereof.

         5.10     Counterparts. This Agreement may be executed simultaneously in
two or more counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement as of the date first above written.

                                    EMPLOYER:

                                    Beacon Education Management LLC
                                    A Tennessee Limited Liability Company

                                    By:  /s/ WR DeLoache, Jr.
                                        -------------------------------

                                    Title:   Chairman
                                           ----------------------------

                                    EXECUTIVE:

                                     /s/ Michael B. Ronan
                                    -----------------------------------
                                    Michael B. Ronan

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                                    Exhibit A

                                      Bonus

September 15, 2000

         Bonus Potential: to be determined

         Criteria:         to be determined

September 15, 2001

         Bonus Potential:  to be determined

         Criteria:         to be determined

September 15, 2002

         Bonus Potential:  to be determined

         Criteria:         to be determined

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[BEACON EDUCATION MANAGEMENT, INC. LOGO]

                                 March 29, 2000

Mr. Michael B. Ronan, Chief Operating Officer
Beacon Education Management, Inc.
121 Upton Road
Uxbridge, MA  01569

Dear Mike,

Attached are copies of the bonus criteria and targets established by the Board
of Directors of Beacon Education Management, Inc. during executive session at
its meeting on March 29, 2000. These criteria and targets reflect the
discussions that you and I had leading up to that meeting, and hereby become a
part of Exhibit A of your employment contract dated December 20, 1999.

Please contact me if you have any questions concerning these documents.

Sincerely,

/s/ William R. DeLoache, Jr.
William R. DeLoache, Jr.
Chairman; Beacon Education Management, Inc.

28 White Bridge Road, Suite 210                               Phone 615-352.2080
Nashville, TN  37205                                          Fax 615-352-1776
                                                   Email: deloache@beaconedu.com

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    BONUS CRITERIA AND TARGETS FOR MICHAEL B. RONAN, CHIEF OPERATING OFFICER
                        BEACON EDUCATION MANAGEMENT, INC.

   ESTABLISHED BY THE BOARD OF DIRECTORS OF BEACON EDUCATION MANAGEMENT, INC.
                                 MARCH 29, 2000

            EXHIBIT A -- EMPLOYMENT CONTRACT DATED DECEMBER 20, 1999

                      FY 2000-01 BONUS CRITERIA AND TARGETS
          40% OF BASE SALARY (BASE = $135,000; TARGET BONUS = $54,000)

1.       60% Quantitative

         (a)      CONSOLIDATED PRETAX INCOME. Target = positive pre tax income.
                  Determines 20% of total bonus. This portion of the bonus is
                  doubled if the pretax income achieved is in excess of
                  $750,000. This portion is not paid if there is a pretax loss.

         (b)      NUMBER OF SCHOOLS IN OPERATION IN 00- 01 IN WHICH BEACON IS
                  PAID A FEE OF AT LEAST $149,000. Target = 15 Determines 10% of
                  total bonus. This portion of the bonus is to be increased or
                  decreased based on the number of contracts in excess of 10
                  (e.g. 20% of this portion of the bonus paid if 11 total
                  contracts; 100% of this portion paid if 15 total contracts;
                  200% of this portion paid if 20 total contracts.)

         (c)      NUMBER OF DEVELOPMENT SCHOOL CONTRACTS SIGNED AS OF JUNE
                  30, 2001, FOR OPENING IN 01-02, IN WHICH PROJECTED MANAGEMENT
                  FEE IS AT LEAST $225,000. Target = 8 Determines 15% of total
                  bonus target. This portion of the bonus is to be increased or
                  decreased based on the number of contracts in excess of four
                  (e.g. 25% of this portion paid if 5 total contracts; 100% of
                  this portion paid if 8 total contracts; 200% of this potion
                  paid if 12 total contracts.)

         (d)      NUMBER OF CONTRACT MANAGEMENT SCHOOLS (VS. CHARTER SCHOOLS)
                  WITH LOCAL SCHOOL DISTRICTS FOR MANAGEMENT IN 2001-02, THAT
                  ARE SIGNED AND IN PLACE AS OF JUNE 30, 2001. Target = 1,
                  Determines 15% of total bonus target. This portion of the
                  bonus is to be increased or decreased based on the number of
                  contracts (e.g. 0% of this portion paid if 0 total contracts;
                  100% of this portion paid if 1 total contracts; 200% of this
                  portion paid if 2 total contracts; 300% paid if 3 total, etc.

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         2.       40% Qualitative based on Board review of relevant information.

                  (a)      RECRUITMENT OF A MANAGER CAPABLE OF STEPPING IN TO
                           MANAGE BEACON IN THE EVENT OF MIKE'S ABSENCE.
                           Determines 15% of total bonus target.

                  (b)      ACADEMIC STRESSES OF BEACON'S SCHOOLS UNDER
                           MANAGEMENT BY BEACON FOR TWO FULL YEARS. Determines
                           15% of total bonus target.

                  (c)      SUCCESS IN ESTABLISHING THE BEACON BRAND. Determines
                           10% of total bonus target.

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    BONUS CRITERIA AND TARGETS FOR MICHAEL B. RONAN, CHIEF OPERATING OFFICER
                        BEACON EDUCATION MANAGEMENT, INC.

   ESTABLISHED BY THE BOARD OF DIRECTORS OF BEACON EDUCATION MANAGEMENT, INC.
                                 MARCH 29, 2000

            EXHIBIT A -- EMPLOYMENT CONTRACT DATED DECEMBER 20, 1999

                      FY 1999-00 BONUS CRITERIA AND TARGETS
           15% OF BASE SALARY (BASE = $130,000; TARGET BONUS $20,000)

1.       50% Quantitative

         (a)      NUMBER OF SCHOOLS UNDER MANAGEMENT AS OF JUNE 30, 2000, WITH
                  MANAGEMENT FEES FOR 1999-00 IN EXCESS OF $125,000. Target = 9
                  (counting the 3 Chandler park schools as one). Determines 25%
                  of total bonus. Increases or decreases are pro rata based on
                  change from the target.

         (b)      NUMBER OF DEVELOPMENT SCHOOL CONTRACTS IN PLACE AS OF JUNE 30,
                  2000, FOR OPENING IN 00-01, IN WHICH PROJECTED MANAGEMENT FEE
                  IS AT LEAST $150,000. Target = 6. Determines 25% of total
                  bonus target. This portion of the bonus is to be increased or
                  decreased based on the number of contracts in excess of three
                  (e.g. 33% of this portion paid if 4 total contracts; 100% of
                  this portion paid if 6 total contracts; 200% of this portion
                  paid if 9 total contracts.) Mystic Valley counts as a
                  development project for purposes of this section.

2.       50% Qualitative, based on Board review

         (a)      SUCCESS OF JCR INTEGRATION IN 1999-00. Determines 25% of bonus
                  target.

         (b)      SUCCESS IN BUILDING A GOOD HEADQUARTERS' MANAGEMENT TEAM.
                  Determines 25% of bonus target.

                                       14<PAGE>   1
                                                                   EXHIBIT 10.12

                              CONSULTING AGREEMENT

         THIS AGREEMENT is dated September 22, 2000 by and between BEACON
EDUCATION MANAGEMENT, INC., a Delaware corporation (the "Company"), and Lamar
Alexander ("Consultant").

                              W I T N E S S E T H:

         WHEREAS, Consultant serves on the Company's board of directors; and

         WHEREAS, the Company desires to retain Consultant to perform the
services set forth in this Agreement under the terms herein provided and
Consultant is agreeable to performing such services under such terms.

         NOW THEREFORE, in consideration of the mutual covenants herein
contained, the parties agree as follows:

         1. Engagement as Consultant. The Company hereby retains and engages
Consultant to render to the Company consulting and advisory services as set
forth on Schedule I hereto from time to time as reasonably requested by the
Company during the term hereinafter set forth. Consultant hereby accepts such
engagement and agrees to render such services upon the terms and conditions
hereinafter set forth. Consultant's services are as enumerated herein and shall
not include the authority of Consultant to execute contracts or agreements on
behalf of the Company.

         2. Extent of Consulting

         (a)      During the Term of Consulting, Consultant shall perform his
obligations hereunder faithfully and to the best of his ability.

         (b)      During the Term of Consulting, Consultant shall use such time,
energy and skill as may be reasonably necessary for the performance of his
duties, responsibilities and obligations hereunder.

         (c)      Consultant shall act in accordance with laws, ordinances,
regulations or rules of any governmental, regulatory or administrative body,
agent or authority, any court or judicial authority, or any public, private or
industry regulatory authority. Nothing contained herein shall require Consultant
to perform any act which would violate any laws, ordinances, regulations or
rules of any governmental, regulatory or administrative body, agent or
authority, any court or judicial authority, or any public, private or industry
regulatory authority.

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         3. Relationship of Parties. It is the express intention and
understanding of the Company and Consultant that the relationship of Consultant
to the Company shall be at all times that of an independent contractor, with
Consultant having full and complete liberty to use its own free and uncontrolled
will, judgment, and discretion as to the method and manner of performing the
obligations of Consultant hereunder. Nothing herein contained or done pursuant
to this Agreement shall constitute Consultant, its agents or employees a
partner, joint venturer, or employee of the Company.

         4. Term. The term of this Agreement shall commence on the date hereof
and shall continue for a period of twelve (12) months and shall automatically be
extended for successive twelve (12) month periods unless notice of termination
is given not less than sixty (60) days prior to the end of the initial twelve
(12) month period or any successive twelve (12) month period, as applicable,
unless otherwise earlier terminated in accordance with Section 5 hereof.

         5. Termination.  This Agreement shall be terminated:

                  (a)      by the Company or Consultant without Cause at any
         time upon sixty (60) days' written notice thereof to the other party;

                  (b)      by the Company for Cause at any time immediately upon
         written notice to Consultant. For the purposes of this Agreement,
         termination by the Company of this Agreement for "Cause" shall mean
         termination due to (i) Consultant's commission of any act or omission
         involving dishonesty or fraud with respect to the Company, any of its
         affiliates or any of their respective customers or suppliers, (ii)
         Consultant's conduct tending to bring the Company or any of its
         affiliates into public disgrace or disrepute, (iii) Consultant's
         substantial and repeated failure to perform his duties as set forth in
         this Agreement or as reasonably directed by the Board of Directors of
         the Company, or (iv) Consultant's willful misconduct with respect to
         the Company or any of its affiliates.

                  (c)      Upon any such termination of this Agreement, all
         rights and duties of the parties toward each other shall cease except
         Sections 3, 6, 8 and 9 of this Agreement shall survive termination of
         this Agreement.

         6. Return of Records. Upon termination of this Agreement for any
reason, Consultant shall return to the Company all records, documents,
information, and data (including data stored in computers), and all copies of
the foregoing, that relate to the Company or its business.

         7. Compensation. As compensation for the performance by Consultant of
its obligations under this Agreement, the Company agrees to pay to Consultant a
consulting fee through the Term hereof of $35,000 payable in monthly
installments.

                                        2
<PAGE>   3

         8. Indemnification. Each party agrees to indemnify, defend and hold the
other harmless from any and all claims, actions, damages, liabilities, costs,
and expenses, including reasonable attorneys' fees and expenses and including
claims of third parties, arising out of or relating to such indemnitor's
performance under this Agreement, except for actual or threatened claims,
actions, damages, liabilities, costs, and expenses which arise from such
indemnities' negligence or willful misconduct. This indemnity shall not apply
unless the party claiming indemnification informs the indemnitor as soon as
practicable of any claim or action giving rise to such indemnity and gives the
indemnitor full opportunity to control the response to, and the defense and
settlement of, such claim or action. The indemnification rights provided under
this Section 8 are in addition to all other rights or remedies that an
indemnified party may have at law, in equity or otherwise.

         9. Confidentiality. Consultant agrees that all information communicated
to him by the Company, whether before or after the date of this Agreement, was
and shall be received in strict confidence and shall be used only for purposes
of this Agreement or in Consultant's role as a director, and that no such
information including, without limitation, the provisions of this Agreement,
shall be disclosed by Consultant, without the prior written consent of the
Company, except as may be necessary by reason of legal, accounting, or
regulatory requirements applicable to Consultant. If Consultant breaches, or
threatens to commit a breach of the covenant contained in this Section 9, the
Company shall have the following rights and remedies, each of which shall be
independent of the other and severally enforceable, and all of which shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company: (a) the right and remedy to have the rights and obligations of this
Section 9 specifically enforced by any court having jurisdiction, it being
hereby acknowledged and agreed by Consultant that any such breach or threatened
breach will cause irreparable injury to the Company and that money damages will
not provide an adequate remedy to the Company; and (b) the right and remedy to
require Consultant to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits derived or received by
Consultant as a result of any transactions constituting a breach of the covenant
contained in this Section 9, and Consultant shall account for and pay over such
benefits to the Company.

         10. General Provisions.

         (a) Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered or mailed (registered or certified mail, postage
prepaid, return receipt requested or by overnight courier service) as follows:

                                        3
<PAGE>   4

         If to Consultant:

                  Lamar Alexander
                  208 Craighead
                  Nashville, Tennessee 37205

         If to the Company:

                  Beacon Education Management, Inc.
                  112 Turnpike Road, Suite 107
                  Westborough, Massachusetts 01581
                  ATTN: William DeLoache, Jr.

         with a copy to:

                  Bass, Berry & Sims PLC
                  315 Deaderick Street, Suite 2700
                  Nashville, Tennessee  37238
                  Attn: Howard H. Lamar III

or to such other address as any party may have furnished to the others in
writing in accordance herewith, except that notices of change of address only
shall be effective upon receipt.

         (b) Attorneys' Fees and Costs. In the event that attorneys' fees or
other costs are incurred to secure performance of any of the obligations set
forth in this Agreement, to establish damages for the breach hereof or to obtain
any other appropriate relief, whether by way of prosecution or defense, the
prevailing party shall be entitled to recover reasonable attorneys' fees and
costs incurred therein.

         (c) Counterparts. This Agreement may be executed in one or more
counterparts for the convenience of the parties hereto, all of which together
shall constitute one and the same instrument.

         (d) Binding Agreement; Assignment. This Agreement shall be binding on,
and inure to the benefit of, the parties hereto and their respective
representatives, successors, and assigns, but neither this Agreement nor any of
the rights, interests, or obligations hereunder shall be assigned or delegated
by the parties hereto, whether by operation of law or otherwise, without the
prior written consent of the other parties, nor is this Agreement intended to
confer upon any other person other than the parties hereto any rights or
remedies hereunder. Any assignment or delegation in violation of this Agreement
shall be null and void.

                                        4
<PAGE>   5

         (e) Payment of Taxes. Consultant shall indemnify and hold harmless the
Company from and against and shall assume full responsibility for payment of all
federal, state and local taxes or contributions imposed or required under
employment insurance, social security and income tax laws with respect to
Consultant's compensation under this Agreement.

         (f) Governing Law. This Agreement, and all obligations or rights of the
parties under this Agreement, shall be governed by, construed and interpreted
under the laws of the State of Tennessee.

         (g) Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

         (h) Amendment. This Agreement may not be changed or modified in any way
subsequent to the date of execution except by an instrument in writing executed
on behalf of each of the parties hereto.

                            [signature page follows]

                                        5
<PAGE>   6

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                           THE COMPANY:

                                           BEACON EDUCATION
                                                 MANAGEMENT, INC.

                                           By: /s/ William R. DeLoache, Jr.
                                               -------------------------------
                                           Name: William R. DeLoache, Jr.
                                                 -----------------------------
                                           Title: Chairman
                                                  ----------------------------

                                           CONSULTANT:

                                           /s/ Lamar Alexander
                                           -----------------------------------
                                           Lamar Alexander

                                        6
<PAGE>   7

                                   SCHEDULE I

Consultant shall provide services from time to time as mutually agreed to by the
Consultant and Company regarding marketing, recruitment, government relations
and such other services as agreed upon. Marketing services shall include, among
other things, meeting with charter and school district boards (or their
representatives), selected vendors, potential investors, and third party
consultants or advisors. Recruitment services shall include assisting the
Company in hiring officers of the Company and selected principals for charter
and/or contract schools under management. Government relations services shall
include, among other things, meeting with various local, state and/or federal
governmental officials regarding specific issues and general policy matters
associated with the Company's business.

The Company and Consultant shall work together to maximize the utilization of
Consultant's time on behalf of the Company, while acknowledging consultant's
desire to avoid unnecessary or excess travel in the delivery of services
hereunder.

                                        7

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