This Agreement made and concluded this 26th day of July, 1954, and amended on November 4, 2003, by and between the following school districts, the Town School District of the Town of Bridport, the Town School District of the Town of Cornwall, the Town School District of the Town of Ripton, the Town School District of the Town of Salisbury, the Town School District of the Town of Shoreham, the Town School District of the Town of Weybridge, all municipal corporations organized and existing under and by virtue of the laws of the State of Vermont, and the Incorporated School District Number Four in Middlebury, an Incorporated School District organized and existing under and by virtue of the laws of the State of Vermont.

WHEREAS the aforesaid school districts have all respectively voted in favor of consolidating with each other for the purpose of forming a Union School District pursuant to the authority contained in No. 202 of the Acts of 1953 at their own respective Town School District Meetings, which said votes were conditioned upon said Union School District being organized and operated in accordance with the provisions of said Act except as modified by certain agreements entered into by said school districts forming said Union School District;

WHEREAS the said voters of said school districts by said votes respectively authorized each of said school districts to enter into agreements with each other concerning the formation of said Union School District which said Agreements were respectively set forth in the respective warnings for said meetings at which said votes were taken;

AND WHEREAS the Commissioner of Education has temporarily designated the Union School formed by the aforesaid school districts as No. 3 Union School District, which said Union School District is now composed of the aforesaid school districts as member districts;

NOW THEREFORE, THIS AGREEMENT WITNESSETH.

The aforesaid respective School Districts do hereby mutually agree with each other, for themselves and their successors, in consideration of the following agreements herein mutually agreed upon by each of the aforesaid school districts, that said Union School District shall be organized and operated in accordance with the following agreements:

1. That said Union School District shall operate as a middle school and a high school having a six year course consisting of grades 7, 8, 9, 10, 11, and 12.

2. That said middle school and high school shall be located within the territorial limits of the Town of Middlebury.

3. That the expense of transportation of pupils to said middle school and high school shall be divided among the member districts in proportion to the student enrollment, as hereinafter defined, in said middle and high school from each member district.

4. That student enrollment shall include all students residing in a member district and enrolled for the whole or a part of a given school year in grades 7, 8, 9, 10, 11, and 12 in said middle and high school as determined by the Average Daily Membership (ADM), as defined by state law, of the first 40 days of the prior school year.

5. That upon the legal vote of the Town School District of Bridport to enroll grade 7 students and grade 8 students in said Union School District No. 3, Bridport Town School District may enroll students in grade 7 and grade 8 in said middle school beginning with the school year following the date of said positive legal vote.

6. That all expenses, including transportation, building, maintaining and operating said Union School District No. 3 shall be divided among the member districts proportional to the student enrollment, as above defined, in each member district in relation to the total student enrollment. It is further agreed that, beginning with the 2006-2007 school year, said expenses shall be apportioned among the member districts based on the prior three-year average of the Average Daily Membership (ADM).

7. That the school board of said Union School District No. 3 shall consist of directors to be elected by the member districts at their respective annual meetings. Beginning with the election held in March 2005, the total number of directors shall be fixed at 13, and each member district shall be entitled to a number of directors proportional to the number of registered voters in each member district in relation to the total number of registered voters in the seven towns of the Union School District No. 3. The number of voters shall be determined on the basis of the voter checklist as of March 31, 2004, and beginning on March 31, 2009, and each five years thereafter, the proportional representation for the next five ensuing elections, subject to the provision that each individual member district shall be entitled to at least one board member. For example, the proportions of registered voters in the member districts as of March 31, 2009 will establish the number of directors from each district for the elections in March 2010 and 2014, with at least one director from each member district.

IN WITNESS WHEREOF the Town School Districts hereto have caused this Agreement to be executed in their names by their respective school directors and the Incorporated School District Number Four in Middlebury has caused this Agreement to be executed in its name by its Prudential Committee, the day and year first above written.