Document:

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EXHIBIT 10.2(a)

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("Agreement"), is entered into on May 18,
2000, effective as of January 1, 2000 (the "Effective Date"), by and between
Insignia Financial Group, Inc., a Delaware corporation with an office at 200
Park Avenue, New York, New York 10166 (the "Company"), and Andrew Lawrence
Farkas, an individual with an office at 200 Park Avenue, New York, New York (the
"Executive").

                                   BACKGROUND

         The Company desires to assure itself of the services of the Executive
for the period provided in this Agreement, and the Executive is willing to serve
in the employ of the Company for such period upon the terms and conditions
provided in this Agreement.

                             STATEMENT OF AGREEMENT

         In consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

SECTION 1. EMPLOYMENT

         The Company hereby agrees to employ the Executive, and the Executive
hereby accepts such employment, in each case upon the terms and conditions set
forth herein, for a period commencing on the Effective Date and ending on
December 31, 2002, or on such earlier date as provided herein (the "Expiration
Date") (such period, as it may be so terminated, being referred to herein as the
"Employment Period").

SECTION 2. DUTIES AND SERVICES

         (a) OFFICES. Subject to Section 2(e), during the Employment Period the
Executive shall serve as Chief Executive Officer of the Company and, at the
Company's request, for no additional consideration, as an officer or director of
one or more of its subsidiaries. In the performance of his duties hereunder, the
Executive shall report to and shall be responsible only to the Board of
Directors of the Company. The Executive agrees to his employment as described in
this Section 2. The parties hereto understand and agree that the Executive has
substantial business interests outside of the scope of this Agreement,
including, without limitation, as a strategic partner at Charterhouse, and under
a consulting agreement with Apartment Investment and Management Company, and
both parties hereby consent to such arrangements. The Executive shall be
available to travel as the needs of the business of the Company reasonably
require.

         (b) NOMINATION TO THE BOARD OF DIRECTORS AND COMMITTEES THEREOF. The
Company agrees that the Executive shall be nominated by its Board of Directors
to be elected to such Board of Directors as a Director of the Company at each
meeting of its stockholders at which Directors of the Company are to be elected
for so long as the Executive shall be

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employed by the Company. The Company further agrees that, for so long as the
Executive shall be employed by the Company and shall be a Director of the
Company, he shall be elected or appointed, as the case may be, to serve (i) as
Chairman of the Board of Directors of the Company, and (ii) on the Executive
Committee of the Board of Directors of the Company as the Chairman thereto
(collectively, the "Board Positions"). This Section 2(b) shall terminate upon
the conversion of this Agreement into a consulting agreement pursuant to Section
2(e) of this Agreement.

         (c) LOCATION OF OFFICE. Subject to Section 2(e), during the Employment
Period the Company shall provide the Executive with an office in the principal
executive office of the Company in New York, New York. The Company will provide
the Executive with two executive secretaries acceptable to him, and other
support appropriate to his duties hereunder, in the sole discretion of the
Executive.

         (d) PRIMARY RESPONSIBILITIES. Subject to Section 2(e), during the
Employment Period, the Executive shall have primary responsibility and authority
for the business of the Company and its subsidiaries, including, without
limitation, the following areas:

         (i)      Underwriting decisions;

         (ii)     Securitization decisions;

         (iii)    Acquisition and disposition decisions;

         (iv)     Hiring and termination of employees;

         (v)      Setting executive and other employee compensation;

         (vi)     Setting the location of the Company's principal executive
                  offices at any time and from time to time; and

         (vii)    Other similar general management decisions affecting the
                  operations of the Company, in each case subject to the
                  approval of the Board of Directors of the Company or the
                  appropriate committee thereof to the extent required by the
                  laws of the State of Delaware or the By-Laws of the Company.

         (e) CONSULTING. If (i) without the prior written consent of the
Executive the Executive's title, powers or duties within the Company have been
substantially diminished, other than as a result of a Termination For Cause, or
(ii) if an Influence Change Event (as defined in Section 8(a)(iv)) after or in
connection with an Extraordinary Transaction (as defined in Section 8(a)(i), an
Extraordinary Stock Event (as defined in Section (8(a)(v)), or a Material Asset
Disposition (as defined in Section 4(k)), has taken place, then Executive may
elect in writing to convert this Agreement into a consulting agreement. Under
the terms of the consulting agreement, the Executive shall consult with respect
to the assets and liabilities of the Company as they existed immediately before
his election to convert this Agreement into a consulting agreement. Such
consultation shall be at the reasonable times convenient to the Executive on no
less than five business days' notice, the parties recognizing that the Executive
during the consulting period likely will have substantial other business
interests, including, without

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limitation, as a strategic partner at Charterhouse, and under a consulting
agreement with Apartment Investment and Management Company. The terms,
conditions and provisions of this Agreement (including all rights hereunder of
the Executive as to compensation, bonus, advance payments and benefits) shall
continue unabridged during the period of consulting, except that: (i) Section
2(a) shall be deleted and the remainder of Section 2 shall be modified by this
Section 2(e) and (ii) references to salary (and Base Salary) in Section 4(a) and
elsewhere in this Agreement shall be deemed to refer to a consulting fee (and
Base Consulting Fee), and such Base Consulting Fee shall be paid to the
executive in twelve monthly installments, payable on the first day of each
calendar month. The "Employment Period" shall be deemed to include the period
during which the Executive is obligated to provide consulting services hereunder
and therefore, to the extent permitted by law, the conversion shall not be
deemed a termination or resignation for any purpose and, if the law requires
that the conversion be treated as a termination, then the Company must provide
the Executive with benefits equivalent to those he would have received had there
been no termination. The Executive shall not be obligated to consult for more
than five days or portions of a day in any calendar month.

SECTION 3. KEY MAN LIFE INSURANCE

         The Company shall have the right to place a "key man" life insurance
policy, providing a death benefit of up to $15,000,000 upon the life of the
Executive, for which the Company is the beneficiary (the "Key Man Insurance
Policy"). In connection therewith, the Executive hereby authorizes the Company,
at its sole cost and expense, to purchase and maintain upon the life of the
Executive such insurance policy, and agrees to submit to such reasonable medical
examinations, and to provide and/or consent to the release of such medical
information, as may be necessary or desirable in order to secure the issuance
thereof. Except as may be required in order to obtain insurance coverage as
described in this Section 3, any and all information about Executive's health or
medical records shall be kept confidential by the Company and shall not be
disclosed by the Company to any party without the Executive's prior written
consent.

SECTION 4. COMPENSATION

         As full compensation for his services hereunder, the Company shall pay,
grant, issue or give, as the case may be, to the Executive the compensation and
benefits specified below:

         (a) BASE SALARY. Subject to the provisions of Sections 7 and 8, a base
salary at the rate of $1,000,000 per annum ("Base Salary"), which Base Salary
shall be paid to the Executive in accordance with the customary executive
payroll policy of the Company as in effect from time to time; provided, however,
that the Base Salary, as in effect at any time and from time to time, may be
further increased by action of the Board of Directors; and further provided,
however, that in no event shall the Base Salary be decreased at any time or from
time to time without the prior consent of the Executive, which consent may be
granted or withheld in the Executive's sole discretion.

         (b) SIGNING BONUS. The Executive shall be paid a non-refundable Signing
Bonus of $146,000 simultaneously with the execution and delivery of this
Agreement. This amount is intended to adjust the Executive's total Base Salary
to an annual rate of $1,000,000 for the period commencing June 1, 1999.

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         (c) ANNUAL PERFORMANCE BONUS UNDER EXECUTIVE PERFORMANCE INCENTIVE
PLAN. With respect to each calendar year during the Employment Period, the
Executive shall be paid a bonus (the "EPIP Bonus") under the Company's Executive
Performance Incentive Plan (the "EPIP") having a "Performance Target" equal to
$2,000,000, and an "Exceptional Performance Target" equal to $3,000,000, based
upon his performance against objectives determined in accordance with the EPIP.
The Compensation Committee will meet with the Executive not later than March
30th of each calendar year to determine the objectives to be met in order to
achieve the Performance Target and the Exceptional Performance Target for such
calendar year. To the extent that the Executive achieves objectives that exceed
50% of the Performance Target, but are less than the Performance Target, the
amount of the Performance Bonus shall be pro-rated. The EPIP Bonus shall also be
pro-rated if the Executive achieves objectives that exceed the Performance
Target but are less than the Exceptional Performance Target. The Executive shall
not receive an EPIP Bonus if less than 50% of the Performance Targets are
achieved. The Executive's EPIP Bonus for each calendar year, if any, shall be
payable by February 28th of the following year.

         (d) ADDITIONAL PERFORMANCE BONUS. In addition to the EPIP Bonus, with
respect to each calendar year during the Employment Period, the Executive shall
be paid an additional performance bonus (the "Additional Performance Bonus")
based on his performance against the Exceptional Performance Target developed
for the EPIP Bonus for such year. The Exceptional Performance Target amount for
such bonus shall be $1,000,000. To the extent that the Executive achieves
objectives that exceed the Performance Target, but are less than the Exceptional
Performance Target, the amount of the Additional Performance Bonus shall be
pro-rated. The Executive's Additional Performance Bonus for each calendar year,
if any, shall be payable by February 28th of the following year.

         (e) DISCRETIONARY BONUS. In addition to the EPIP Bonus and the
Additional Performance Bonus, the Compensation Committee may also elect to pay
the Executive such additional amounts in respect of his performance in a
calendar year during the Employment Period as it shall determine are
appropriate.

         (f) QUARTERLY ADVANCE PAYMENTS. The Company shall pay $375,000 (each
such payment being herein referred to as an "Advance") to the Executive on the
first day of each calendar quarter during each calendar year of the Employment
Term, commencing as of the Effective Date. The four Advances paid during each
year shall be recoupable from all cash amounts paid by the Company in respect of
that calendar year as payment(s) in respect of real estate promote
participations, interests or assignments; an EPIP Bonus payment, an Additional
Performance Bonus payment, a discretionary bonus payment pursuant to Section
4(e), a cash payment in connection with the equity grants described in Section
4(h), and/or an Extraordinary Transaction Payment or Material Asset Disposition
Bonus (each as defined below) and any other cash amount payable by the Company
in respect of the year in which such Advances are made other than base salary.

         (g) STOCK OPTIONS. On January 14, 2000, the Executive was granted an
option and a warrant exercisable for an aggregate of 1,000,000 shares of Common
Stock of the Company, having an exercise price of $8.00 per share of the
Company's Common Stock (the "Signing Grant").

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         (h) EQUITY GRANTS.

         (i)      The Executive shall have the right to receive equity interests
                  ("Equity Grants") in certain subsidiaries or affiliates of the
                  Company ("New Investment Entities" and "New Operating
                  Entities") as defined in the Equity Grant Resolution which is
                  attached as Exhibit A hereto. The terms, eligibility, vesting
                  rules and conditions of the Equity Grants are as set forth in
                  the Equity Grant Resolution.

         (ii)     SECTION 83(B) ELECTION. If the Executive shall determine to
                  make an election in accordance with Section 83(b) of the
                  Internal Revenue Code of 1986, as amended, in connection with
                  any equity interests granted to the Executive pursuant to this
                  Section 4(h), the Company and it affiliates shall cooperate
                  with the Executive in making such election.

         (i) CO-INVESTMENT PROGRAMS. During the Employment Period, the Executive
shall continue to participate in the Company's co-investment programs on the
basis currently in place or as may be amended by the Compensation Committee of
the Company.

         (j) EXTRAORDINARY TRANSACTION, INFLUENCE CHANGE EVENT, OR EXTRAORDINARY
STOCK EVENT. Upon the occurrence of an Extraordinary Transaction, an Influence
Change Event, or an Extraordinary Stock Event, the Company shall, in addition to
remaining obligated under the terms of this Agreement, immediately before the
Extraordinary Transaction, Influence Change Event, or Extraordinary Stock Event,
pay the Executive a payment (the "Extraordinary Transaction Payment") equal to
one percent (1%) of the total equity market capitalization of the Company on the
date the Extraordinary Transaction, the Influence Change Event, or the
Extraordinary Stock Event occurred. Notwithstanding the foregoing, (A) the
Company shall not be obligated to make any payment under this Section 4(j) (or
under Section 8(b)(iii)) with respect to a matter if it must also make a payment
with respect to such matter under Section 4(k) and (B) no more than one payment
shall be made under this Section 4(j) (or under Section 8(b)(iii)) with respect
to any single matter, regardless of whether that matter qualifies as more than
one of an Extraordinary Transaction, an Influence Change Event, or an
Extraordinary Stock Event.

         (k) MATERIAL ASSET DISPOSITION BONUS. In the event of a Material Asset
Disposition, as defined below, in consideration of the services performed by the
Executive and consistent with the prior terms of the Executive's employment, the
Company (or, in the case of clause (iii) below, the spin-off entity or, in
default thereof, the Company) shall pay to the Executive immediately before the
consummation of such Material Asset Disposition, a cash bonus equal to one
percent (1%) of the consideration (valued as set forth below) received by the
Company or its shareholders as a result of such Material Asset Disposition. A
"Material Asset Disposition" as used herein means, without duplication for the
same matter: (i) a transaction which results in a majority of the equity
interest in the Company being beneficially owned by any "person" or "persons,"
including any "group" (as such terms are used in Section 13(d) and 14(d) of the
Exchange Act), other than any of the Company's present Affiliates; (ii) a sale
or series of sales by the Company of subsidiaries, divisions or assets (other
than marketable securities), or operating businesses, regardless of size; (iii)
a spin off, or series of spin offs, of any of the Company's divisions, operating
businesses or subsidiaries which is followed by a subsequent

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Extraordinary Transaction (as defined above, but with reference to the spun off
entity rather than the Company) of the subsidiary, division or business spun off
within five years following such spin off; (iv) any transaction which results in
any one or more of the Company's divisions, subsidiaries or operating
businesses, being owned by a third party. In the event a Material Asset
Disposition is consummated in one or more steps, including, without limitation,
by way of second-step merger, any additional consideration paid or to be paid in
any subsequent step in the Material Asset Disposition in respect of (x)
subsidiaries, divisions, assets (other than marketable securities), or operating
businesses of the Company and (y) capital stock of the Company (and any
securities convertible into, or options, warrants or other rights to acquire,
such capital stock) shall be included for purposes of calculating the bonus
payable pursuant to this Section (i). "Consideration" shall not include the
assumption, directly or indirectly, or repayment of indebtedness or other
liabilities of the Company but shall include the assumption, directly or
indirectly, or repayment of securities similar to the IFG Trust Convertible
Preferred Securities now outstanding. If all or a portion of the consideration
paid in the Material Asset Disposition is other than cash or securities, then
the value of such non-cash consideration shall be the fair market value thereof
on the date the Material Asset Disposition is consummated as mutually agreed
upon in good faith by the Company's Board of Directors and the Executive. If the
Board of Directors and the Executive are unable to come to agreement on the fair
market value of such non-cash consideration following the provisions of this
Section 4(k), then, at the request of either, an independent valuation expert
agreeable to both shall be appointed to determine the fair market value of such
non-cash consideration, and the determination of such independent expert shall
be binding on both the Executive and the Company. If such non-cash consideration
consists of common stock, options, warrants or rights for which a public trading
market existed prior to the consummation of the Material Asset Disposition, then
the value of such securities shall be determined by the closing or last sales
price thereof on the date of the consummation of the Material Asset Disposition;
provided, however, that if such non-cash consideration consists of newly-issued,
publicly-traded common stock, options, warrants or rights for which no public
trading market existed prior to the consummation of the Material Asset
Disposition, then the value thereof shall be the average of the closing prices
for the 20 trading days subsequent to the fifth trading day after the
consummation of the Material Asset Disposition. In such event, the portion of
the bonus payable to the Executive pursuant to this Section (i) attributable to
such securities shall be paid on the 30th trading day subsequent to consummation
of the Material Asset Disposition. If no public market exists for the common
stock, options, warrants or other rights issued in the Material Asset
Disposition, then the value thereof shall be as mutually agreed upon in good
faith by the Company's Board of Directors and the Executive. If the non-cash
consideration paid in the Material Asset Disposition consists of preferred stock
or debt securities (regardless of whether a public trading market existed for
such preferred stock or debt securities prior to consummation of the Material
Asset Disposition or exists thereafter), the value hereof shall be the face or
principal amount, as the case may be. Any amounts payable by a purchaser to the
Company, any shareholder of the Company or any Affiliate of either the Company
or any shareholder of the Company in connection with a non-competition,
employment, consulting, licensing, supply or other agreement shall be deemed to
be part of the consideration paid in the Material Asset Disposition. If all or a
portion of the consideration payable in connection with the Material Asset
Disposition includes contingent future payments, then the Company shall pay to
the Executive, upon consummation of such Material Asset Disposition, an
additional cash fee, determined in accordance with this Section 4(k) as, when
and if such contingency payments are

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received. However, in the event of an installment purchase at a fixed price and
a fixed time schedule, the Company agrees to pay the Executive, upon
consummation of the Material Asset Disposition, a cash fee determined in
accordance with this Section 4(k) based on the present value of such installment
payments using a discount rate of 6.5%. For purposes of this Section 4(k), in no
case shall the "consideration" received by the Company be greater than the total
market capitalization of the Company at the time of the Material Asset
Disposition.

         (l) FRINGE BENEFIT PROGRAMS. In addition to the other benefits provided
to the Executive hereunder and to the extent he satisfies the eligibility
requirements thereof and to the extent permitted by law, participation in fringe
benefit programs made available to senior executives and to employees or
independent contractors of the Company, including, without limitation, pension,
profit sharing, stock purchase, savings, bonus, disability, life insurance,
health insurance, hospitalization, dental, deferred compensation and other plans
and policies authorized on the date hereof or in the future. The Executive's
level of participation in all such plans and benefits shall be commensurate with
his status as the most senior executive of the Company.

         (m) EXPENSE REIMBURSEMENT. Reimbursement of the Executive for all
out-of-pocket expenses incurred by him in connection with the performance of his
duties hereunder, and business related mobile or cellular phone expense in
accordance with the Company's written policies and procedures, all upon the
presentation of appropriate documentation therefore in accordance with the then
regular procedures of the Company.

         (n) PERQUISITES. In addition to the other benefits provided to the
Executive hereunder, and at the sole cost and expense of the Company, except as
otherwise provided in Section 7(d), the Company shall provide to the Executive:

         (i)      $3,750 on the first day of each month, for car and driver
                  expenses; and

         (ii)     full reimbursement for expenses incurred in respect of
                  professional continuing education.

         (o) DISABILITY PROTECTION. Subject to the provisions of Sections 7 and
8 hereof, the Company will provide to the Executive disability insurance
coverage identical to the disability insurance coverage provided to senior
executives of the Company from time to time at the Company's sole cost and
expense.

         (p) PARACHUTE LIMIT. Notwithstanding anything else herein, to the
extent the Executive would be subject to the excise tax under Section 4999 of
the Internal Revenue Code of 1986, as amended (the "Code"), on such amounts or
benefits received from the Company required to be included in the calculation of
parachute payments for purposes of Sections 280G and 4999 of the Code (the
"Parachute Payments "), the amounts of any Parachute Payments shall be
automatically reduced as described herein to an amount one dollar less than an
amount that would subject the Executive to the excise tax under Section 4999 of
the Code (the "Parachute Limit"); provided, however, that this Section 4(k)
shall apply only if the reduced Parachute Payments to be received by Executive
(after taking into account further reductions for applicable federal, state and
local income, social security and other taxes) would be greater than the

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unreduced Parachute Payments to be received by the Executive minus (i) the
excise tax payable under Section 4999 of the Code with respect to such Parachute
Payments and (ii) all applicable federal, state and local income, social
security and other taxes on such Parachute Payments. The foregoing reduction
shall be applied to the Parachute Payments as follows: (i) first by reducing the
amounts payable under Section 4(f) (if such amounts are included in such
computation) until such amounts have been exhausted up to the Parachute Limit,
(ii) then by reducing any such other amounts and benefits (other than awards
described in (iii) below) as determined by the Company, and (iii)
notwithstanding anything contained herein or in an option, warrant or restricted
stock agreement, award or plan relating to the Executive then, on a pro-rata
basis up to the Parachute Limit, by failing to accelerate the vesting (without
affecting the right to vest) upon a change in ownership or effective control or
change in ownership of a substantial portion of assets (as described in Code
Section 280G(b)(2)(A)(i)) of any unvested awards of shares of restricted stock
of the Company previously granted to the Executive and options or warrants to
purchase shares of the Company previously granted to the Executive.
Notwithstanding the foregoing, the Company shall treat any of the amounts
described in clauses (i) through (iii) in the preceding sentence as a Parachute
Payment solely to the extent required by law.

         (q) REGISTRATION RIGHTS. The Company hereby agrees to continue the
Executive's registration rights with respect to all of the securities of the
Company beneficially owned by the Executive as set forth in the Registration
Rights Agreement heretofore executed by the Executive and the Company.

         (r) GENERAL VESTING TERMS. In the event of (a) a termination of
Executive's employment for any reason other than a Termination for Cause or a
voluntary termination by the Executive, including, but not limited to a Death
Termination Event, Disability Termination Event, Termination Without Cause, or
in the event of (b) the occurrence of an Extraordinary Transaction, an Influence
Change Event, or an Extraordinary Stock Event (whether or not resulting in a
termination of Executive's employment), then all options and warrants (but not
Equity Grants) that have been previously granted to the Executive (including,
without limitation, the Signing Grant granted to the Executive under Section
4(g)) will immediately vest and be exercisable by the Executive. Nothing herein
is intended to modify the separate vesting provisions that relate to the Equity
Grants referred to in Section 4(h) above and set forth in Exhibit A.

         (s) PURCHASE OF INSURANCE. Provided Executive does not voluntarily
terminate his employment during the Employment Period or is not subject to a
Termination For Cause by the Company, the Company will continue, at the
Company's sole cost, individual and dependent care health insurance coverage on
the Executive through the Employment Period, or through the date three years
from the Effective Date, whichever is later, and, following Executive's
cessation of employment with the Company for any reason, (i) thereafter, the
Executive shall have the right to continue, at the Executive's sole cost, any or
all life insurance policies on the life of the Executive maintained by the
Company during the Employment Period and to determine the beneficiaries and
owners thereof, and (ii) thereafter, the Executive and his dependents shall have
the right to purchase from or through the Company or its successor, at the
Executive's or his dependents' sole cost, individual and dependent care health
insurance coverage upon terms and conditions identical to the terms and
conditions upon which health insurance coverage is provided to employees of the
Company and their dependents. Notwithstanding anything in this

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Agreement to the contrary, the provisions of this Section 4(1) shall continue
regardless of the cessation of the Executive's employment with the Company. In
the case of the death of the Executive, whether during or after the Employment
Period, the rights under Section 4(1)(ii) of the persons who were the
Executive's dependents at the time of his death shall continue in fill force and
effect for the duration of each of their lives.

SECTION 5. REPRESENTATIONS. WARRANTIES AND COVENANTS OF THE EXECUTIVE

         The Executive represents and warrants to the Company as follows:

         (a) He is under no contractual or other restriction or obligation which
is inconsistent with the execution of this Agreement, the performance of his
duties hereunder, or the other rights of the Company hereunder; and

         (b) He is able to perform the essential functions of his duties
hereunder with or without reasonable accommodations.

SECTION 6. NON-SOLICITATION: CONFIDENTIALITY

         (a)      NON-SOLICITATION.

                  (1)      In recognition of the close personal contact the
                           Executive has or will have with the Company's and its
                           affiliates' trade secrets, confidential information,
                           records and business relationships, and the position
                           of trust in which the Company holds the Executive,
                           the Executive further covenants and agrees that while
                           the Executive is employed by the Company and for a
                           period lasting for one (1) year following the date of
                           cessation of the Executive's employment with the
                           Company, the Executive will not, if such action would
                           have a material adverse effect on the Company, in
                           direct competition with the Company (where
                           competition is measured as of the date the Executive
                           ceases to be employed by the Company), either for
                           himself or as an officer, director, employee, agent,
                           representative, independent contractor or in any
                           relationship to any person, partnership, corporation,
                           or other entity (except the Company or its Affiliates
                           or subsidiaries), solicit, directly or by assisting
                           others, business from any of the Company's customers
                           or clients who were customers or clients of the
                           Company as of the date of the cessation of the
                           Executive's employment and with whom the Executive
                           has had material contact (as defined below) during
                           the twelve (12) month period preceding the date of
                           cessation of the Executive's employment with the
                           Company in the event of a cessation of employment
                           with the Company or, absent such cessation, during
                           the twelve (12) month period preceding the
                           solicitation, for the purpose of providing goods or
                           services to said customers and clients. For purposes
                           of this Agreement, "material contact" exists between
                           the Executive and any of the Company's

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                           customers or clients (i) with whom the Executive
                           actually dealt; or (ii) whose dealings with the
                           Company were handled, coordinated or supervised by
                           the Executive; or (iii) about whom the Executive
                           obtained confidential information in the ordinary
                           course of business through the Executive's
                           association with the Company.

                  (2)      The Executive covenants and agrees that, for a period
                           ending on the second anniversary of the date on which
                           the Executive's employment with the Company ceases,
                           the Executive will not solicit any employee, broker
                           or sales person of the Company, or any of its
                           respective subsidiaries or affiliates to leave their
                           employ for the employ of a person or entity which
                           directly competes with the Company, or any of its
                           respective subsidiaries or affiliates.

                  (3)      The Executives covenants and agrees that he will not,
                           either for himself or as an officer, director,
                           employee, agent, representative, or independent
                           contractor of any person, partnership, corporation,
                           or other entity (except the Company or its Affiliates
                           or subsidiaries), interfere with any contract that
                           exists between the Company and any customers or
                           clients of the Company as of the effective date of
                           this Agreement.

         The Executive acknowledges that the foregoing provisions are intended
to protect the Company's and its subsidiaries' and Affiliates' business and
customer contacts, not to prevent the Executive from pursuing a livelihood in
the general area of his previous training, and they should be interpreted
accordingly.

         (b) CONFIDENTIALITY. All confidential information which the Executive
may now possess, may obtain during or after his employment with Company, or may
create prior to the end of his employment with the Company or otherwise relating
to the business of the Company or any of its subsidiaries or affiliates or of
any customer or supplier of any of them shall not be published, disclosed, or
made accessible by him to any other person, either during or after the cessation
of his employment, or used by him except during his employment with the Company
in the business and for the benefit of the Company and its subsidiaries and
Affiliates. In addition, the Executive agrees not to disclose, publish or make
accessible to any other person, from and after the date of this Agreement,
during the Employment Period or at any time thereafter, any of the terms or
provisions of this Agreement, except the Executive's accountants or legal
counsel who need such information to advise him, prepare his tax returns, make
required filings, represent him and the like; provided, however, that the
Executive will be responsible for causing any such accountants and legal counsel
to be aware of and to abide by the obligations contained in this Section 6(b)
and will be responsible for any breach of such obligations by any of them. In
the event that the Executive becomes legally compelled to disclose any of the
confidential information, the Executive will provide the Company with prompt
written notice so that the Company may seek a protective order or other
appropriate remedy and/or waive in writing compliance with the provisions of
this Section 6(b) and in the event that such protective order or other remedy is
not obtained, or should the Company waive in writing compliance with the
provisions of this Section 6(b), the Executive will furnish only that portion of
the confidential

                                      -10-
<PAGE>

information which is so legally required. The Executive shall return all
tangible evidence of such confidential information to the General Counsel of the
Company prior to or at the cessation of his employment.

         (c) INTERPRETATION. Since a breach of the provisions of this Section 6
could not adequately be compensated by money damages, the Company shall be
entitled, in addition to any other right and remedy available to it, to an
injunction restraining such breach and the Company shall not be required to post
a bond in any proceeding brought for such purpose. The Executive agrees that the
provisions of this Section 6 are necessary and reasonable to protect the Company
in the conduct of its businesses. If any restriction contained in this Section 6
shall be deemed to be invalid, illegal, or unenforceable by reason of the
extent, duration, or geographical scope thereof, or otherwise, then the court
making such determination shall have the right to reduce such extent, duration,
geographical scope, or other provisions hereof, and in its reduced form such
restriction shall then be enforceable in the manner contemplated hereby. Nothing
herein shall be construed as prohibiting the Company from pursuing any other
remedies, at law or in equity, for such breach or threatened breach.

         (d) INVESTORS. Notwithstanding anything contained herein to the
contrary, nothing in this Agreement shall restrict the right of the Executive to
solicit or receive, on his own behalf or on behalf of others, any investment or
any funds in any form from any person, regardless of whether such person is an
investor in the Company or in any current or former affiliate of the Company.

SECTION 7. TERMINATION

         (a) DEFINITIONS.

                  (i)      Death Termination Event. As used herein, "Death
                           Termination Event" shall mean the death of the
                           Executive.

                  (ii)     Disability Termination Event. As used herein,
                           "Disability Termination Event" shall mean a
                           circumstance where the Executive is physically or
                           mentally incapacitated or disabled and is unable to
                           fully discharge his duties hereunder for a period of
                           185 consecutive days. Any dispute regarding whether
                           the Executive has incurred physical or mental
                           incapacity or disability shall be resolved by an
                           independent medical doctor mutually agreeable to the
                           Company and the Executive.

                  (iii)    Estate. As used herein, "Estate" shall mean (A) in
                           the event that the last will and testament of the
                           Executive has not been probated at the time of
                           determination, the estate of the Executive and (B) in
                           the event that the last will and testament of the
                           Executive has been probated at the time of
                           determination, the legatees of the Executive who are
                           entitled under such will to the assets or payments at
                           issue.

                  (iv)     Termination For Cause. As used herein, the term
                           "Termination For Cause" shall mean the termination by
                           the Company of the Executive's employment hereunder
                           upon a good faith determination by a majority vote

                                      -11-
<PAGE>

                           of the members of the Board of Directors of the
                           Company that termination of this Agreement is
                           necessary by reason of (A) the Executive's conviction
                           of a felony, (B) the Executive's commission of an
                           Act, or his failure to take any action, in bad faith
                           and to the material detriment of the Company, and the
                           Executive's failure to cure such act or failure
                           within 30 days after the Company sends written notice
                           thereof, or (C) the Executive's breach in a material
                           way of any material term of this Agreement and
                           failure to correct such breach within 30 days after
                           the Company sends written notice thereof.

                  (v)      Termination Without Cause. As used herein,
                           "Termination Without Cause" shall mean any
                           termination of the Executive's employment by the
                           Company hereunder that is not a Termination For
                           Cause, a Death Termination Event or a Disability
                           Termination Event, and shall include, without
                           limitation, a termination of the Executive's
                           employment hereunder due to the scheduled expiration
                           of the Employment Period on the date three years from
                           the Effective Date or (as contemplated by Section
                           8(b)(i)), an Extraordinary Transaction, an Influence
                           Change Event, or an Extraordinary Stock Event.

         (b) DEATH TERMINATION EVENT. Upon the occurrence of a Death Termination
Event, this Agreement shall terminate automatically upon the date that such
Death Termination Event occurred (subject to the last sentence of this Section
7), whereupon the Executive's estate shall receive the consideration set forth
in Sections 4(a), and 4(n)(i) and (ii), through the date three years from the
Effective Date. In addition, the Executive's Estate shall be entitled to receive
the payments contemplated by Section 4(j) and Section 4(k) if the event giving
rise to such payment occurs, or a definitive agreement regarding such event is
executed, before or within 180 days after the Death Termination Event.

         (c) DISABILITY TERMINATION EVENT. Upon the occurrence of a Disability
Termination Event, this Agreement shall terminate automatically upon the date
that such Disability Termination Event occurred (subject to the last sentence of
this Section 7), whereupon (i) the Company shall continue to pay seventy-five
percent (75%) of the then-current Base Salary to the Executive for twice the
period equal to the remaining term of the Employment Period (such calculation
will be determined upon the assumptions: (A) that the Employment Period will not
be terminated prior to the date three years from the Effective Date, and (B)
that the remaining term of the Employment Period will not in any event be less
than two years), (ii) the Company shall continue to provide to the Executive the
disability protection contemplated by Section 4(m) of this Agreement until such
time as the Executive elects to discontinue such coverage, (iii) the Company
will arrange for the Executive (x) to have the ability to maintain the Key Man
Insurance Policy thereafter at the sole expense of the Executive, and (y) to
designate the beneficiaries thereof, in each case to the exclusion of the
Company and as promptly as practicable after such termination, and (iv) the
Executive shall receive the consideration set forth in Sections 4(c) and 4(n)(i)
and (ii) through the date three years from the Effective Date. In addition, the
Executive shall be entitled to receive the payments contemplated by Section 4(j)
and Section 4(k) if the event giving rise to such payment occurs, or a
definitive agreement

                                      -12-
<PAGE>

regarding such event is executed, before or within 185 days after the Disability
Termination Event.

         (d) TERMINATION FOR CAUSE. The Executive and the Company agree that the
Company shall have the right to effectuate a Termination for Cause prior to the
date three years from the Effective Date. Upon the occurrence of a Termination
For Cause, this Agreement will terminate upon the date of that such Termination
For Cause occurs (subject to the last sentence of this Section 7), whereupon (i)
the Executive shall be entitled to receive the Base Salary, as then in effect,
to and including the date that such Termination for Cause occurs, and (ii) the
Company will arrange for the Executive (x) to have the ability to maintain the
Key Man Insurance Policy thereafter at the sole expense of the Executive, and
(y) to designate the beneficiaries thereof, in each case to the exclusion of the
Company and as promptly as practicable after such termination.

         (e) TERMINATION WITHOUT CAUSE. Upon the occurrence of a Termination
Without Cause, this Agreement shall terminate upon the date that such
termination occurs (subject to the last sentence of this Section 7), whereupon
(i) the Company shall (A) in the event that such termination is not by reason of
an Extraordinary Transaction, an Influence Change Event, or an Extraordinary
Stock Event, continue to pay to the Executive the then-current Base Salary for
the period ending three years after the Effective Date, and (B) in the event
that such termination is by reason of an Extraordinary Transaction, an Influence
Change Event, or an Extraordinary Stock Event, the Company shall pay to the
Executive the Extraordinary Transaction Payment (as defined in Section 4(j)) in
accordance with the provisions of Section 8, and (ii) the Company shall continue
to provide to the Executive the disability protection contemplated by Section
4(m) of this Agreement until such time as the Executive elects to discontinue
such coverage, and (iii) the Company will arrange for the Executive (x) to have
the ability to maintain the Key Man Insurance Policy thereafter at the sole
expense of the Executive, and (y) to designate the beneficiaries thereof, in
each case to the exclusion of the Company and as promptly as practicable after
such termination. In addition, in any of the foregoing events, the Company shall
continue, during the three-year period following such termination, to pay the
Executive the amounts and benefits set forth in Sections 4(n)(i) and (ii). Also,
the Executive shall be entitled to receive the payments contemplated by Section
4(j) and Section 4(k) if the event giving rise to such payment occurs, or a
definitive agreement regarding such event is executed, on or before the date
three years from the Effective Date.

         Notwithstanding anything in this Agreement to the contrary, (i)
Sections 3, 4(p), 4(q), 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20
and 21 of this Agreement shall survive any termination of this Agreement or of
the Executive's employment hereunder until the expiration of the statute of
limitations applicable hereto; and (ii) the Company will pay to the Executive
(or the Estate), regardless of the termination of this Agreement for any reason
other than a Termination For Cause, any amounts pursuant to Sections 4(j), 4(k)
and 8(b) with regard to Material Asset Disposition, Extraordinary Transaction,
Extraordinary Stock Event, or Influence Change Event (A) where definitive
agreements regarding such transaction have been executed before the termination
of this Agreement or (B) in the event of a Termination Without Cause, where the
event giving rise to such payment occurs, or a definitive agreement regarding
such event is executed, on or before the date three years from the Effective
Date.

                                      -13-
<PAGE>

         (f) ADDITIONAL PAYMENT OBLIGATIONS. Upon the termination of the
Employment Period for any reason: (a) the Executive will be entitled to receive
any benefits then vested, and to make all elections and receive all rights,
under all employee benefit, pension, profit sharing, insurance and other plans
in which the Executive participated in accordance with the provisions of the
plan concerned; and (b) the Executive will be entitled to receive all accrued
and unused vacation pay as limited in accordance with Company policy, and the
payment of all business expenses that have not been reimbursed, at the time of
such termination. Anything contained herein to the contrary notwithstanding, the
obligations of the Company to make payments to the Executive in accordance with
this Agreement shall survive any termination of the Employment Period or this
Agreement.

SECTION 8. EXTRAORDINARY TRANSACTION

         (a) DEFINITIONS.

                  (i)      Extraordinary Transaction. As used herein,
                           "Extraordinary Transaction" shall mean the occurrence
                           of any one or more of the following:

                           (1)      the Company ceases to be required to file
                                    reports under Section 13 of the Securities
                                    Exchange Act of 1934, as amended (the
                                    "Exchange Act"), or any successor to that
                                    Section;

                           (2)      a majority of the members of the Board of
                                    Directors of the Company are not persons who
                                    (a) had been directors of the Company for at
                                    least the preceding 12 consecutive months or
                                    (b) when they initially were elected to the
                                    Board (x) were nominated (if they were
                                    elected by the stockholders) or elected (if
                                    they were elected by the directors) with the
                                    affirmative vote of two-thirds of the
                                    directors who were Continuing Directors at
                                    the time of the nomination or election by
                                    the Board and (y) were not elected as a
                                    result of an actual or threatened
                                    solicitation of proxies or consents by a
                                    person other than the Board of Directors of
                                    the Company or an agreement intended to
                                    avoid or settle such a proxy solicitation
                                    (the directors described in clauses (a) and
                                    (b) being "Continuing Directors");

                           (3)      any "person," including a "group" (as such
                                    terms are used in Sections 13(d) and 14(d)
                                    of the Exchange Act, but excluding the
                                    Company, any of its present affiliates (as
                                    such term is defined in Rule 405 promulgated
                                    under the Securities Act of 1933, as
                                    amended) ("Affiliates"), or any employee
                                    benefit plan of the Company or any of its
                                    present Affiliates) is or becomes the
                                    "beneficial owner" (as defined in Rule 13(d)
                                    (3) under the Exchange Act), directly or
                                    indirectly, of securities of the Company
                                    representing 30% or more of the combined
                                    voting power of the Company's then
                                    outstanding securities;

                                      -14-
<PAGE>

                           (4)      the purchase of Common Stock of the Company
                                    ("Common Stock") pursuant to any tender or
                                    exchange offer or otherwise made by any
                                    "person," including a "group" (as such terms
                                    are used in Sections 13(d) and 14(d) of the
                                    Exchange Act), other than the Company, any
                                    of its present Affiliates, or any employee
                                    benefit plan of the Company or any of its
                                    present Affiliates, which results in
                                    "beneficial ownership" (as so defined) of
                                    30% or more of the outstanding Common Stock;

                           (5)      the execution and delivery of a definitive
                                    agreement by the Company that provides for a
                                    merger or consolidation, or a transaction
                                    having a similar effect (unless such merger,
                                    consolidation or similar action is with a
                                    subsidiary of the Company or with another
                                    company, a majority of whose outstanding
                                    capital stock is owned by the same persons
                                    or entities who own a majority of the
                                    Company's outstanding Common Stock at such
                                    time), where (A) the majority of the Common
                                    Stock of the Company is no longer held by
                                    the persons who were the stockholders of the
                                    Company immediately prior to the
                                    transaction, (B) the sale, lease, exchange
                                    or other disposition of all or substantially
                                    all of the assets of the Company, but
                                    excluding the trading of marketable
                                    securities held as portfolio securities or
                                    (C) the Company's Common Stock is converted
                                    into cash, securities or other property
                                    (other than the common stock of a company
                                    into which the Company is merged), provided,
                                    however, that, in the event that the
                                    contemplated merger, consolidation or
                                    similar transaction is not consummated, then
                                    any rights that may arise under this
                                    paragraph (5) by virtue of such Change of
                                    Control shall not apply;

                           (6)      upon the consummation of any transaction
                                    requiring stockholder approval for the
                                    acquisition of the Company by an entity
                                    other than the Company or a subsidiary
                                    through purchase of assets, or by merger, or
                                    otherwise;

                           (7)      the election to the Board of Directors of
                                    the Company, by vote of the stockholders of
                                    the Company, of one individual under
                                    circumstances where (A) the Board of
                                    Directors of the Company, after such
                                    election, is comprised of one individual,
                                    and (B) all of the Farkas Shares (as defined
                                    in Section 8(a)(iii)) at the time of such
                                    election were not voted for such election to
                                    the Board of Directors of the Company of
                                    such individual;

                           (8)      the appointment to the Board of Directors of
                                    the Company, by vote of the Board of
                                    Directors of the Company, of one individual
                                    under circumstances where (A) the Board of
                                    Directors of the Company, after such
                                    appointment, is comprised of one individual,
                                    and (B) the Executive did not so vote for
                                    such appointment to the Board of

                                      -15-
<PAGE>

                                    Directors of the Company of such individual,
                                    either because the Executive was not a
                                    Director of the Company at such time or
                                    because the Executive did not vote
                                    affirmatively for the appointment to the
                                    Board of Directors of the Company of such
                                    individual;

                           (9)      the election to the Board of Directors of
                                    the Company, by the stockholders of the
                                    Company, of one or more individuals under
                                    circumstances where (A) the Board of
                                    Directors of the Company, after such
                                    election, is comprised of more than one
                                    individual under the By-Laws of the Company,
                                    as then in effect, and (B) a majority of the
                                    Directors of the Company in office after
                                    such election did not receive Executive
                                    Approval (as defined in Section 8(a)(ii));
                                    or

                           (10)     the appointment to the Board of Directors of
                                    the Company, by vote of the Board of
                                    Directors of the Company, of one or more
                                    individuals under circumstances where (A)
                                    the Board of Directors of the Company, after
                                    such appointment, is comprised of more than
                                    one individual under the By-Laws of the
                                    Company, as then in effect, and (B) a
                                    majority of the Directors of the Company in
                                    office after such appointment did not
                                    receive Executive Approval.

                  (ii)     Executive Approval. As used herein, the term
                           "Executive Approval" shall mean, with respect to any
                           member of the Board of Directors of the Company in
                           office at the time of determination, (A) if such
                           individual is not then a member of the Board of
                           Directors of the Company by virtue of election to the
                           Board of Directors of the Company by vote of the
                           stockholders of the Company, the Executive, as a
                           Director of the Company, voted for the appointment of
                           such individual to the Board of Directors of the
                           Company pursuant to which such individual is then a
                           member of the Board of Directors of the Company, and
                           (B) if such individual is then a member of the Board
                           of Directors of the Company by virtue of election to
                           the Board of Directors of the Company by vote of the
                           stockholders of the Company, all of the Farkas Shares
                           at the time of such election were voted in favor of
                           the election of such individual to the Board of
                           Directors of the Company pursuant to which such
                           individual is then a member of the Board of Directors
                           of the Company.

                  (iii)    Farkas Shares. As used herein, the term "Farkas
                           Shares," as of any time, shall mean the securities of
                           the Company entitled to vote generally in the
                           election of Directors of the Company as to which, at
                           such time, the Executive had the sole power to vote
                           or to direct the voting of.

                  (iv)     Influence Change Event. As used herein "Influence
                           Change Event" shall mean the occurrence of the loss
                           by the Executive of any of the Board Positions or if
                           the Executive's title, powers and duties within the
                           Company or the Board of Directors of the Company have
                           been diminished, in each

                                      -16-
<PAGE>

                           case other than as a result of a Termination For
                           Cause, without the prior written consent of the
                           Executive.

                  (v)      Extraordinary Stock Event. As used herein
                           "Extraordinary Stock Event" shall mean either (i) the
                           occurrence of more than fifteen (15%) percent of the
                           outstanding securities of the Company entitled to
                           vote in the election of directors of the Company
                           being owned (by beneficial ownership, as such term is
                           used in Section 13(d) of the Exchange Act, and the
                           rules and regulations thereunder or otherwise) or
                           acquired by any person (as such term is used in
                           Sections 13(d) and 14(d) of the Exchange Act), other
                           than the Executive, a person over whom the Executive
                           has the power to exercise a controlling influence
                           exclusive of any other person, or a person whose
                           beneficial ownership has been approved by the
                           Executive in writing (such person being referred to
                           herein as the "Acquiror") and the Acquiror either
                           describes, is required to describe, or would be
                           required to describe in the event that the Acquiror
                           was subject to Section 13(d) of the Exchange Act, as
                           in effect on the date hereof, any plans or proposals
                           which it may have which relate to or would result in
                           any of the events described in paragraphs (a) through
                           (j) of Item 4 of Schedule 13D, as in effect on the
                           date hereof, in a Schedule 13D, or amendments
                           thereto, filed with the Securities and Exchange
                           Commission with respect to such ownership or
                           acquisition or (ii) the occurrence of more than forty
                           (40%) percent of the outstanding securities of the
                           Company entitled to vote in the election of directors
                           of the Company being owned (by beneficial ownership,
                           as such term is used in Section 13(d) of the Exchange
                           Act and the rules and regulations thereunder, or
                           otherwise) or acquired by any person (as such term is
                           used in Sections 13(d) and 14(d) of the Exchange
                           Act), whether or not such ownership has been
                           consented to by the Executive.

         (b) EXTRAORDINARY TRANSACTION: INFLUENCE CHANGE EVENT; EXTRAORDINARY
STOCK EVENT. Upon the occurrence of either an Extraordinary Transaction, an
Influence Change Event, or an Extraordinary Stock Event, (i) this Agreement may,
at Executive's option exercised in writing, be terminated as of the date of such
Extraordinary Transaction, Influence Change Event, or Extraordinary Stock Event,
as the case may be (an "Extraordinary Transaction Termination"), (ii) in the
event of such termination contemplated by the immediately preceding Section
8(b)(i), the provisions of Section 7(e) of this Agreement shall be in effect as
of the date of such Extraordinary Transaction, Influence Change Event, or
Extraordinary Stock Event, as the case may be, and (iii) whether or not there is
such termination, the Company shall pay to the Executive, in immediately
available funds, the Extraordinary Transaction Payment, as described in Section
4(j), immediately before the occurrence of such Extraordinary Transaction,
Influence Change Event, or Extraordinary Stock Event, as the case may be.

                                      -17-
<PAGE>

SECTION 9. INDEMNIFICATION

         The Company hereby ratifies the indemnification of the Executive
pursuant to the terms of an Indemnification Agreement between the Executive and
the Company, dated as of September 21, 1998.

SECTION 10. NO MITIGATION.

         Anything contained herein to the contrary notwithstanding, if the
Executive's employment is terminated for any reason, he shall in no event be
required (i) to seek any other employment or take any other action by way of
mitigation or otherwise with respect to the amounts payable to the Executive
under this Agreement, or to pay any amounts to the Company that Executive may
receive from any other employment or otherwise at any time after the termination
of your employment (nor shall any such amounts be applied to reduce any payment
which the Executive is entitled to receive from the Company), or to account to
the Company for any such amounts.

SECTION 11. WITHHOLDING

         The Company shall be entitled to withhold from amounts payable to the
Executive hereunder such amounts as may be required by applicable law to be so
withheld.

SECTION 12. MODIFICATION

         This Agreement sets forth the entire understanding of the parties
hereto with respect to the subject matter hereof, supersedes all existing
agreements between them concerning such subject matter, including, without
limitation, the Employment Agreement dated August 3, 1998 between the Executive
and Insignia/ESG Holdings, Inc. This Agreement may be modified only by a written
instrument duly executed by each party.

SECTION 13. NOTICES

         Any notice or other communication required or permitted to be given
hereunder shall be in writing and shall be mailed by certified mail, return
receipt requested, or delivered against receipt to the party to whom it is to be
given, at the address of such party set forth in the preamble to this Agreement
(or to such other address as such party shall have furnished in writing in
accordance with the provisions of this Section 13). Notice to the Estate shall
be sufficient if addressed to the Executive as provided in this Section 13. Any
notice or other communication given by certified mail shall be deemed given at
the time of certification thereof, except for a notice changing a party's
address which shall be deemed given at the time of receipt thereof.

SECTION 14. WAIVER

         Any waiver by either party of a breach of any provision of Agreement
shall not operate as a waiver of any other breach of such provision or of any
breach of any other provision of this

                                      -18-
<PAGE>

Agreement. The failure of a party to insist upon strict adherence to any term of
this Agreement on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement. Any waiver must be in writing.

SECTION 15. BINDING EFFECT

         The Executive's rights and obligations under this Agreement shall not
be transferable by assignment or otherwise, such rights shall not be subject to
commutation, encumbrance or the claims of the Executive's creditors, and any
attempt to do any of the foregoing shall be void. The provisions of this
Agreement shall be binding upon and inure to the benefit of the Executive and
his heirs and personal representatives, and shall be binding upon and inure to
the benefit of the Company and its successors.

SECTION 16. ASSIGNMENT; THIRD PARTY BENEFICIARIES

         The Company may only assign this Agreement and its rights and
obligations hereunder: (a) to any entity controlled by, controlling or under
common control with the Company; or (b) to any entity which, by way of merger,
consolidation or sale of substantially all of the assets of the Company becomes
a successor to the Company, so long as such successor assumes in writing the
Company's obligations hereunder.

         This Agreement does not create, and shall not be construed as creating,
any rights enforceable by any person not a party to this Agreement; provided,
however, that notwithstanding any provision of this Agreement to the contrary,
each of the successors, spouse, issue, legatees, estate, administrators,
executors, and legal representatives of the Executive shall be entitled to rely
upon and to enforce this Agreement as a third party beneficiary hereof.

SECTION 17. HEADINGS

         The headings in this Agreement are solely for convenience of reference,
and shall be given no effect in the construction or interpretation of this
Agreement.

SECTION 18. ENFORCEMENT

         Should the Executive sue to enforce any of his rights under this
Agreement and should the Executive prevail on any issue in such suit, then the
Company shall pay all the Executive's costs of such suit (including attorneys
fees and disbursements). If any taxes are imposed on such payment, the Company
shall make such additional payments to the Executive as may be necessary, so
that after deducting the taxes imposed on all payments made to the Executive
pursuant to this paragraph, the Executive is left on an after tax basis with an
amount equal to his claim for indemnification prior to the payments described in
this sentence.

SECTION 19. COUNTERPARTS

         This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                      -19-
<PAGE>

SECTION 20. GOVERNING LAW

         This Agreement shall be governed by and construed in accordance with
the internal laws of the State of New York, without reference to the conflict of
law provisions thereof.

SECTION 21. WAIVER OF TRIAL BY JURY

TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALING
BETWEEN OR AMONG THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE
RELATIONSHIPS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO
ENCOMPASS ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO
THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON
THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS
AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT
IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS

                                      -20-
<PAGE>

WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO THE TRIAL BY THE COURT.

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

                                            INSIGNIA FINANCIAL GROUP, INC.

                                            By: /s/ Adam B. Gilbert
                                            -----------------------------------
                                            Name: Adam B. Gilbert
                                            -----------------------------------
                                            Its: Executive Vice President
                                            -----------------------------------

                                            EXECUTIVE

                                            /s/Andrew L. Farkas
                                            -----------------------------------
                                            Name: Andrew L. Farkas

<PAGE>

EXHIBIT A

                       ACTION BY UNANIMOUS WRITTEN CONSENT

                                       OF

                           THE COMPENSATION COMMITTEE
                                       OF
                             THE BOARD OF DIRECTORS
                                       OF
                         INSIGNIA FINANCIAL GROUP, INC.

                                January 14, 2000

         THE UNDERSIGNED, being the members of the Compensation Committee of the
Board of Directors of Insignia Financial Group, Inc., a Delaware corporation
(the "Company"), in accordance with Section 141 of the General Corporation Law
of the State of Delaware, hereby consent to the taking of the following actions
and direct that this consent be filed with the minutes of the Company.

                  WHEREAS, the Compensation Committee of the Board of Directors
         of the Company wishes to empower Andrew L. Farkas, in his capacity as
         Chief Executive Officer of the Company (the "CEO"), to direct and
         participate in the grants of equity interests in certain subsidiaries
         of the Company on the terms and subject to the conditions hereinafter
         set forth;

NOW, THEREFORE, BE IT:

                  RESOLVED, that for purposes of these resolutions, the
         following terms have the meanings set forth below:

                           "Award" means a grant (by means of direct or indirect
                  transfer, contractual arrangement or otherwise) of Base NIE
                  Equity or Base NOE Equity pursuant to these resolutions.

                           "Base NIE Equity" means, with respect to any New
                  Investment Entity, the equity interests, in whatever kind or
                  form, issued to or held by the Company or one or more of its
                  subsidiaries in exchange for or as a result of their actual or
                  deemed (for accounting purposes) contributions to the equity
                  capital of such New Investment Entity, regardless of whether
                  such contributions are made in the form of cash, tangible
                  property or other assets (such as services).

<PAGE>

                           "Base NOE Equity" means, with respect to any New
                  Operating Entity, the equity interests, in whatever kind or
                  form, issued to or held by the Company or one or more of its
                  subsidiaries in exchange for or as a result of their actual or
                  deemed (for accounting purposes) contributions to the equity
                  capital of such New Operating Entity, regardless of whether
                  such contributions are made in the form of cash, tangible
                  property or other assets (such as services), but only to the
                  extent that the total amount of such contributions does not
                  exceed $7,500,000 (or such greater amount as may be approved
                  by the Compensation Committee).

                           "Change of Control" means, with respect to any New
                  Operating Entity, any of the following events, provided such
                  event occurs following satisfaction of the Third-Party
                  Investment Condition: (i) the sale of all or substantially all
                  of the outstanding equity securities of such New Operating
                  Entity (or any successor thereto) to one or more persons or
                  entities not controlled by the Company; or (ii) a merger,
                  consolidation or similar transaction involving such New
                  Operating Entity (or any successor thereto) if as a result
                  thereof the equityholders of such New Operating Entity
                  immediately prior to such transaction own equity securities
                  representing less than 50% of either the common equity
                  securities of the surviving or resultant entity or the
                  combined voting power of all outstanding securities of the
                  surviving or resultant entity.

                           "Exchange Act" means the Securities Exchange Act of
                  1934, as amended.

                           "Liquidity Event" means, with respect to any New
                  Operating Entity, any of the following events: (i) a sale by
                  such New Operating Entity of all or substantially all of the
                  assets of such New Operating Entity (or any successor thereto)
                  to one or more persons or entities not controlled by the
                  Company, in exchange for consideration consisting primarily of
                  cash, Marketable Securities or a combination of both; (ii) a
                  sale of all or substantially all of the outstanding equity
                  securities of such New Operating Entity (or any successor
                  thereto) to one or more persons or entities not controlled by
                  the Company, in exchange for consideration consisting
                  primarily of cash, Marketable Securities or a combination of
                  both; (iii) the closing of an initial underwritten public
                  offering of common equity securities of such New Operating
                  Entity (or any successor thereto); (iv) a merger or

                                      -2-
<PAGE>

                  consolidation of such New Operating Entity (or any successor
                  thereto) with another entity, as a result of which the holders
                  of the common equity securities of such New Operating Entity
                  (or any successor thereto) receive consideration consisting
                  primarily of cash, Marketable Securities or a combination of
                  both; or (v) a liquidation of such New Operating Entity (or
                  any successor thereto).

                           "Marketable Security" means any security (A) of a
                  class (or series of a class) that is (i) registered under
                  Section 12 of the Exchange Act and (ii) traded or listed on a
                  national securities exchange or The NASDAQ Stock Market, or
                  (B) exchangeable or exercisable for or convertible into a
                  security of a class (or series of a class) that is (i)
                  registered under Section 12 of the Exchange Act and (ii)
                  traded or listed on a national securities exchange or The
                  NASDAQ Stock Market.

                           "Minimum Return Condition" means (A) with respect to
                  any New Investment Entity, the condition that the aggregate
                  value of the distributions made by such New Investment Entity
                  in respect of Base NIE Equity is at least equal to the
                  aggregate amount of actual or deemed (for accounting purposes)
                  contributions made to the equity capital of such New
                  Investment Entity in exchange for the Base NIE Equity, plus an
                  annual, compounded 10% return thereon; or (B) with respect to
                  any New Operating Entity, the condition that the value of the
                  portion of Base NOE Equity not subject to any outstanding
                  Award (regardless of whether such Base NOE Equity is still
                  owned by the Company or one or more of its subsidiaries at
                  such time) is at least equal to the aggregate amount of actual
                  or deemed (for accounting purposes) contributions made to the
                  equity capital of such New Operating Entity in exchange for
                  the Base NOE Equity, plus an annual, compounded 10% return
                  thereon.

                           "New Entity" means a New Investment Entity or a New
                  Operating Entity, as the context requires.

                           "New Investment Entity" means any special purpose
                  entity initially capitalized (and controlled) by the Company
                  or one or more of its subsidiaries on or after January 1, 2000
                  for the primary purpose of (i) making and/or holding a
                  minority, non-controlling investment by the Company in debt
                  and/or equity securities (including securities such as
                  warrants and options which may be received in exchange for
                  services to be performed by the Company or one of its

                                      -3-
<PAGE>

                  subsidiaries) of one or more other companies or business
                  ventures not directly or indirectly controlled by the Company
                  at the time of the initial investment by the Company, provided
                  that the total actual or deemed (for accounting purposes)
                  contributions to the equity capital of such special purpose
                  entity does not exceed an amount authorized by the Board of
                  Directors of the Company (either specifically or pursuant to a
                  standing general grant of authority) or (ii) serving as a
                  managing general partner (or in a similar capacity) of an
                  entity that raises third-party capital to be invested in debt
                  and/or equity securities of businesses not directly or
                  indirectly controlled by the Company.

                           "New Operating Entity" means any operating entity (or
                  holding company of an operating entity) initially capitalized
                  (and controlled) by the Company or one or more of its
                  subsidiaries on or after January 1, 2000 for the primary
                  purpose of engaging in a line of business which is outside of
                  the scope of the traditional lines of business engaged in by
                  the Company and its subsidiaries prior to June 1999, it being
                  acknowledged that for this purpose all Internet-oriented lines
                  of business fall into the category of a non-traditional line
                  of business, provided that it is contemplated at the time of
                  the formation of such entity that the capital to be invested
                  in such entity by unaffiliated third parties will be greater
                  than the capital invested in such entity by the Company.

                           "Third-Party Investment Condition" means, with
                  respect to any New Operating Entity, the condition that one or
                  more persons or entities not controlled by the Company shall
                  have made equity "investments" in such New Operating Entity in
                  an aggregate amount at least equal to the aggregate amount of
                  actual or deemed (for accounting purposes) contributions made
                  to the equity capital of such New Operating Entity made by the
                  Company and its subsidiaries in exchange for the Base NOE
                  Equity. For this purpose, (i) the term "investments" shall be
                  broadly interpreted to include any and all contributions of
                  cash or property to the equity capital of such New Operating
                  Entity, including pursuant to a merger or similar transaction
                  or an initial underwritten public offering of the common
                  equity securities of such New Operating Entity, and (ii)
                  contributions of property other than cash shall be valued at
                  fair market value at the time of contribution.

                                      -4-
<PAGE>

                           "Vesting Rules" means, with respect to any Award that
                  is required to comply with the "Vesting Rules" as provided in
                  these resolutions, the following rules (all of which are
                  subject to any contrary terms contained in any employment
                  agreement between the Company (or one of its subsidiaries) and
                  the recipient of the Award, which contrary terms shall
                  control):

                  (1)      Subject to the exceptions provided for in the
                           following rules regarding delays, acceleration and
                           forfeiture, the Award shall not vest (i.e., cease to
                           be subject to forfeiture back to the Company) more
                           rapidly than 1/48 per month on the last calendar day
                           of each month, commencing with the month in which the
                           applicable underlying investment was made or new
                           business operating initiative was commenced.

                  (2)      In the case of an Award of Base NOE Equity, (i)
                           simultaneously with a Change of Control of the New
                           Operating Entity to which the Award relates, the
                           entire then unvested portion of the Award may vest,
                           and (ii) simultaneously with the closing of an
                           initial underwritten public offering of the common
                           equity securities of the New Operating Entity to
                           which such Award relates, 50% of the then unvested
                           portion of such Award may vest, provided that the
                           managing underwriter(s) of such offering do not
                           object in writing to such accelerated vesting.

                  (3)      If the applicable Award agreement so provides, the
                           Award (or the applicable portion thereof) shall be
                           deemed "Time Vested" once it has vested in accordance
                           with Rules (1) and/or (2) above and will no longer be
                           subject to forfeiture back to the Company as a result
                           of termination of employment.

                  (4)      Upon termination of all employment by the recipient
                           with the Company and its subsidiaries for any reason
                           (including death or disability), the entire portion
                           of the Award which is not then Time Vested must be
                           forfeited back to the Company; provided, however,
                           that if the termination of employment is without
                           cause and the applicable Award Agreement so provides,
                           then the entire portion of the Award which is not
                           then Time Vested will automatically become Time
                           Vested (and thus not subject to forfeiture back to
                           the Company as a result of termination of
                           employment).

                                      -5-
<PAGE>

                  (5)      Notwithstanding that the Award (or the applicable
                           portion thereof) may have been Time Vested, the Award
                           (or the applicable portion thereof) may not fully
                           vest, and no non-forfeitable distributions or other
                           payments may be made to the recipient in respect
                           thereof, unless and until:

                           (A)      if the Award relates to a New Investment
                                    Entity, the Minimum Return Condition has
                                    been satisfied; and

                           (B)      if the Award relates to a New Operating
                                    Entity, both (x) a Liquidity Event has
                                    occurred and (b) the Minimum Return
                                    Condition has been satisfied; provided,
                                    however, that in the event that the Minimum
                                    Return Condition has not been satisfied
                                    within 360 days following the applicable
                                    Liquidity Event, the Company shall afford
                                    the recipient of the Award a fair
                                    opportunity (as determined by the
                                    Compensation Committee in good faith) to
                                    forfeit an appropriate portion of such Award
                                    back to the Company in lieu of actual
                                    satisfaction of the Minimum Return
                                    Condition, and if the recipient accepts such
                                    opportunity and forfeits the applicable
                                    portion of the Award, the Minimum Return
                                    Condition may be deemed satisfied; and
                                    further provided that if (i) the Minimum
                                    Return Condition is not satisfied (or deemed
                                    satisfied pursuant to the foregoing proviso)
                                    within the applicable period or (ii) at the
                                    time the Minimum Return Condition is
                                    satisfied (or deemed satisfied) the
                                    Third-Party Investment Condition has not
                                    been satisfied, the entire Award (including
                                    the Time Vested portion thereof) shall be
                                    forfeited back to the Company.

                  AND FURTHER RESOLVED, that from the date hereof and until the
         sooner of December 31, 2002 or such time as the CEO ceases to serve as
         the Chief Executive Officer of the Company for any reason, the CEO be,
         and he hereby is, empowered to make restricted grants (by means of
         direct transfer, contractual arrangement or otherwise), at any time and
         from time to time, of up to 25% (in the aggregate) of the Base NIE
         Equity in each New Investment Entity to one or more members of
         management or other key employees of the Company or one of its
         subsidiaries, including himself, upon such individual terms and in such
         percentage amounts as he deems appropriate under the circumstances;
         provided, however, that (i) the terms of each such Award must be set
         forth in a written document signed by both the Company and the
         recipient of such Award and (ii) with respect to any such Award granted
         to himself or which relates to 3.0% or more of the Base NIE Equity, the
         terms of such

                                      -6-
<PAGE>

         Award must comply with the Vesting Rules; and further provided that if
         all or any portion of any Award granted to any person other than the
         CEO is forfeited back to the Company (or one of its subsidiaries) in
         accordance with the terms of such Award, then the Base NIE Equity
         underlying the forfeited portion of such Award may be re-granted by the
         CEO pursuant to a new Award to any other then-eligible person under
         this resolution, including himself, subject to all of the foregoing
         applicable conditions, limitations and restrictions.

                  AND FURTHER RESOLVED, that from the date hereof and until the
         sooner of December 31, 2002 or such time as the CEO ceases to serve as
         the Chief Executive Officer of the Company for any reason, the CEO be,
         and he hereby is, empowered to make restricted grants (by means of
         direct transfer, contractual arrangement or otherwise), at any time and
         from time to time, of up to 30% (in the aggregate) of the Base NOE
         Equity in each New Operating Entity to one or more members of
         management or other key employees of the Company or one of its
         subsidiaries, including himself, upon such individual terms and in such
         percentage amounts as he deems appropriate under the circumstances;
         provided, however, that (i) the terms of each such Award must be set
         forth in a written document signed by both the Company and the
         recipient of such Award and (ii) with respect to any such Award granted
         to himself or which relates to 3.0% or more of the Base NOE Equity, the
         terms of such Award must comply with the Vesting Rules; and further
         provided that if all or any portion of any Award granted to any person
         other than the CEO is forfeited back to the Company (or one of its
         subsidiaries) in accordance with the terms of such Award, then the Base
         NOE Equity underlying the forfeited portion of such Award may be
         re-granted by the CEO pursuant to a new Award to any other
         then-eligible person under this resolution, including himself, subject
         to all of the foregoing applicable conditions, limitations and
         restrictions.

                  AND FURTHER RESOLVED, that the Compensation Committee retains
         the authority on behalf of the Company to interpret these resolutions
         with respect to any ambiguity that may arise hereunder and regarding
         their applicability in circumstances not contemplated hereby.

                                      -7-
<PAGE>

                  IN WITNESS WHEREOF, the undersigned have executed this Written
         Consent effective as of the 14th day of January, 2000, and direct that
         it be filed with the minutes of the proceedings of both the Board of
         Directors the Company and the Compensation Committee thereof.

                                            /s/ H. Strauss Zelnick
                                            -----------------------------------
                                            H. Strauss Zelnick

                                            /s/ Robert J. Dennison
                                            -----------------------------------
                                            Robert J. Denison

                                      -8-<PAGE>

EXHIBIT 10.2 (b)

                              AMENDED AND RESTATED

                              EMPLOYMENT AGREEMENT

         This Amended and Restated Employment Agreement (this "Agreement") is
entered into on May 19, 2000, by and between INSIGNIA FINANCIAL GROUP, INC., a
Delaware corporation with an office at 200 Park Avenue, New York, New York 10166
(the "Company"), and ADAM B. GILBERT, an individual residing at 60 Cowdin
Circle, Chappaqua, New York 10514 (the "Executive").

         WHEREAS, the Company and the Executive are parties to that certain
Amended and Restated Employment Agreement dated as of December 23, 1998 (the
"Original Agreement"); and

         WHEREAS, the Company and the Executive each desires to make certain
amendments to the Original Agreement in order to clarify certain of the
provisions thereof and memorialize certain other agreements between the Company
and the Executive;

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the Executive hereby agree that the Original
Agreement is hereby amended and restated to read in its entirety as follows:

         SECTION 1. EMPLOYMENT. The Company hereby agrees to employ the
Executive, and the Executive hereby accepts such employment, in each case upon
the terms and conditions set forth herein, for a period commencing on May 19,
2000 (the "Commencement Date") and ending on December 31, 2002 (the "Expiration
Date"), subject to earlier termination as set forth herein (such period, as it
may be so terminated, being referred to herein as the "Employment Period").

         SECTION 2. DUTIES AND SERVICES.

         (a) OFFICES. During the Employment Period, the Executive shall serve as
an Executive Vice President-Legal, Secretary and General Counsel of the Company,
with principal responsibility for the Company's legal affairs. In addition, at
the request of the Company, the Executive shall serve as an officer and/or
director of one or more subsidiaries of the Company. In the performance of his
duties hereunder, the Executive shall report to and shall be responsible to the
Chief Executive Officer and the Board of Directors of the Company. The Executive
agrees to his employment as described in this Section 2, and agrees to devote
substantially all of his working time and efforts to the performance of his
duties hereunder. The Executive shall be available to travel as the needs of the
business of the Company reasonably require.

         (b) LOCATION OF OFFICE. During the Employment Period, the Executive's
office shall be located at 200 Park Avenue, New York, New York, or at such other
location in New York,

                                      -2-
<PAGE>

New York as the Company may reasonably request. The Company shall provide the
Executive with an appropriate office, an executive secretary reasonably
acceptable to him and other reasonable support appropriate to his duties
hereunder.

         (c) PRIMARY RESPONSIBILITIES. During the Employment Period, the
Executive shall (i) have such appropriate and lawful responsibilities assigned
to him by the Chief Executive Officer and/or the Board of Directors of the
Company, and (ii) comply with all lawful written policies and procedures of the
Company.

         (d) OTHER ACTIVITIES. The Executive may (i) devote reasonable time to
the management of his personal financial affairs and (ii) to the extent that he
may do so without unduly interfering with his duties at the Company, participate
on boards of directors of other enterprises which do not directly or indirectly
compete with the Company; provided, however, that (x) the Executive shall not
join the board of directors of any public company without first obtaining the
approval of the Chief Executive Officer of the Company and (y) the Executive
shall give prompt notice of his election or appointment to any other board of
directors, whether of a private for-profit company or any not-for-profit
company, to the Chief Executive Officer of the Company. The Executive may retain
any compensation paid to him for such service.

         SECTION 3. COMPENSATION. Except as otherwise provided herein, as full
compensation for the Executive's services under this Agreement, the Company
shall pay, grant, issue or give, as the case may be, to the Executive the
following compensation and benefits:

         (a) BASE SALARY. Subject to the provisions of Section 6, an annual base
salary ("Base Salary") at the rate of $400,000 per annum, payable in cash in
accordance with the customary executive payroll policy of the Company as in
effect from time to time; provided, however, that the Base Salary may be
increased by action of the Board of Directors of the Company or the Compensation
Committee thereof (the "Compensation Committee").

         (b) ANNUAL BONUS. An annual discretionary bonus ("Bonus"), the amount,
if any, of which shall be determined by the Board of Directors of the Company or
the Compensation Committee, and which shall be paid to the Executive, with
respect to any given fiscal year of the Company, before the expiration of 74
days after the end of such fiscal year.

         (c) FRINGE BENEFIT PROGRAMS. In addition to the other benefits provided
to the Executive hereunder and to the extent he satisfies the eligibility
requirements thereof and to the extent permitted by law, participation in fringe
benefit programs made available generally to employees and/or to senior
executives of the Company, including without limitation pension, profit sharing,
stock purchase, savings, bonus, disability, life insurance, health insurance,
hospitalization, dental, deferred compensation and other plans and policies
authorized on the date hereof or in the future.

         (d) EXPENSE REIMBURSEMENT. Reimbursement of the Executive for all
out-of-pocket expenses reasonably incurred by him in connection with the
performance of his duties hereunder, including without limitation (i)
professional activities and membership fees and dues relating to professional
organizations of which the Executive currently is a member or is directed in
writing

                                      -3-
<PAGE>

to be a member by the Board of Directors, Chief Executive Officer or President
of the Company, (ii) expenses required for licensing of the Executive and (iii)
cellular phone expenses, all upon the presentation of appropriate documentation
therefor in accordance with the then regular procedures of the Company.

         (e) [INTENTIONALLY OMITTED]

         (f) VACATIONS, ETC. Twenty (20) paid vacation days per year on a
non-cumulative basis; and leaves-of-absence in accordance with the regular
procedures of the Company governing senior officers in existence from time to
time.

         SECTION 4. EXTRAORDINARY EVENT.

         (a) DEFINED. As used herein, "Extraordinary Event" shall mean the
cessation of Andrew L. Farkas to serve as either the Chairman of the Board of
Directors of the Company or an executive officer of the Company for any reason
effective simultaneously with or within one year following a merger,
consolidation, asset sale or other similar transaction involving the Company .

         (b) EXTRAORDINARY EVENT BONUS. Within ten business days after the
occurrence of an Extraordinary Event, the Company shall, regardless of whether
the Executive elects to convert this Agreement into a consulting agreement
pursuant to Section 4(c), pay to the Executive an amount in cash equal to 110%
of the Base Salary then in effect. In addition, if the Executive elects to
convert this Agreement into a consulting agreement pursuant to Section 4(c),
then: (i) within ten business days after the effective date of such election,
the Company shall pay to the Executive an amount in cash equal to the product of
(x) the number of days that have elapsed from and including the first day of the
fiscal year in which such Extraordinary Event occurred, multiplied by (y) the
amount of Bonus paid to the Executive by the Company (or bonus paid by Insignia,
if applicable) in respect of the fiscal year immediately preceding the fiscal
year in which such Extraordinary Event occurred (but excluding any special bonus
paid to the Executive in respect of the merger of Insignia into Apartment
Investment and Management Company), multiplied by (z) 0.00274; and (ii) upon the
effective date of such election, all stock options, shares of restricted stock
and other awards granted under or otherwise subject to the 1998 Stock Incentive
Plan of the Company (the "Company Stock Plan") then held by the Executive will
fully, immediately and automatically vest and be exercisable as and to the
extent permitted by the Company Stock Plan, and all promote, participation and
other similar contractual interests not subject to the Company Stock Plan then
held by the Executive will fully, immediately and automatically vest (i.e., no
longer be subject to forfeiture for any reason), notwithstanding any provisions
to the contrary in the applicable governing agreements or other instruments
pursuant to which such interests were granted to the Executive (it being the
intent of the parties that any such contrary provisions are overridden and
superceded hereby).

         (c) CONVERSION TO CONSULTING AGREEMENT. During the 120-day period
following the occurrence of an Extraordinary Event, the Executive shall have the
right, in his sole discretion, to elect in writing to convert this Agreement
into a consulting agreement, whereupon: (i) the Executive will cease to be an
employee of the Company and shall resign all officer and other

                                      -4-
<PAGE>

positions with the Company and its subsidiaries; (ii) the Executive shall be
required, through the Expiration Date, to consult with respect to the assets,
liabilities and transactions of the Company as they existed immediately before
such Extraordinary Event, such consultation to be at the reasonable times
convenient to the Executive on no less than five business days' notice, but in
no event for more than five days or portions of a day in any calendar month, the
parties recognizing that the Executive during the consulting period likely will
have significant other business interests; and (iii) the terms of this Agreement
(including all rights of the Executive hereunder as to salary, bonus,
reimbursements, payments and health and other benefits) shall continue
unabridged through the Expiration Date, except that (1) Section 2 hereof will be
superseded by this Section 4(c) and (2) references herein to the "employment" of
the Executive shall be deemed to be references to the consultancy by the
Executive.

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE EXECUTIVE AND THE COMPANY;
           KEY PERSON INSURANCE.

         (a) The Executive represents and warrants to the Company as follows:

                  (i) He is under no contractual or other restriction or
         obligation which is inconsistent with the execution of this Agreement,
         the performance of his duties hereunder, or the other rights of the
         Company hereunder; and

                  (ii) He is under no physical or mental disability that would
         hinder his performance of duties under this Agreement.

         (b) The Company represents and warrants to the Executive that the
execution and delivery of this Agreement by the Company has been duly approved
by the Board of Directors of the Company or the Compensation Committee.

         (c) The Executive agrees to cooperate with the Company, upon request,
in connection with the obtaining by the Company of a key person insurance policy
upon the life of Executive. The Executive is not aware of any fact or
circumstance which would preclude the Company from obtaining such insurance, and
the Executive has not heretofore been declined by an insurance company or
provider for life insurance.

         SECTION 6. NON-COMPETITION AND NON-SOLICITATION; CONFIDENTIALITY.

         (a) NON-COMPETITION AND NON-SOLICITATION.

                  (i) In view of the unique and valuable services it is expected
         the Executive will render to the Company and its Subsidiaries (as
         hereinafter defined), the Executive's knowledge of the customers, trade
         secrets and other proprietary information relating to the business of
         the Company and its customers and suppliers, and similar knowledge
         regarding Subsidiaries of the Company it is expected the Executive will
         obtain, the Executive agrees that, through and including the Expiration
         Date plus any additional period during which the Executive is employed
         by the Company, he will not compete with or be engaged in the same
         business as, or "Participate In" (as hereinafter defined)

                                      -5-
<PAGE>

         any other business or organization which competes with or is engaged in
         the same business as the Company or any of its Subsidiaries, with
         respect to any product or service sold or activity engaged in by the
         Company or any Subsidiary of the Company in any geographical area in
         which, at the time of such expiration or cessation, such product or
         service is sold or activity is engaged in by the Company or any
         Subsidiary of the Company; provided, however, that the provisions of
         this Section 6(a)(i) shall not be interpreted to preclude the
         Executive, at any time and from time to time, from (1) Participating In
         any other organization if approved by the Board of Directors of the
         Company, or (2) owning not more than five percent (5%) of the
         outstanding capital stock of any publicly-traded entity. The terms
         "Participate In" and "Participating In" mean "directly or indirectly,
         for his own benefit or for, with or through any other person, own or
         owning, manage or managing, operate or operating, control or
         controlling, loan money to or lending money to, or participate in or
         participating in, as the case may be, the ownership, management,
         operation or control of, or be connected or being connected, as the
         case may be, as a director, officer, employee, partner, consultant,
         agent, independent contractor or otherwise, or acquiesce or
         acquiescing, as the case may be, in the use of his name in." The term
         "Subsidiary" means "any entity actually directly or indirectly
         controlled by the Company or of which the Company directly or
         indirectly owns (in the aggregate) in excess of 20% of the outstanding
         voting or economic interests."

                  (ii) In recognition of the close personal contact the
         Executive will have with the Company's and its Subsidiaries' trade
         secrets, confidential information, records and business relationships,
         and the position of trust in which the Company will hold the Executive,
         the Executive covenants and agrees that for so long as the Executive is
         employed by the Company, and for a period lasting for two (2) years
         following the later of the date on which the Executive's employment
         with the Company ceases for any reason or the Expiration Date, the
         Executive will not, either for himself or as an officer, director,
         employee, agent, representative, independent contractor or in any other
         relationship to any person, partnership, corporation or other entity
         (other than the Company and its Subsidiaries), (A) directly or
         indirectly interfere with or disturb, or seek to interfere with or
         disturb, any contractual relation in favor of the Company or any of its
         Subsidiaries or (B) solicit, directly or indirectly, including by
         assisting others, business from any customer or client of the Company
         of any of its Subsidiaries with whom the Executive has had Material
         Contact (as defined below) during the twelve (12) month period
         preceding the date of cessation of the Executive's employment with the
         Company for the purpose of providing goods or services to such customer
         or client. For purposes of this Agreement, the Executive shall be
         deemed to have had "Material Contact" with a customer or client of the
         Company or a Subsidiary (x) with whom the Executive actually dealt, or
         (y) whose dealings with the Company or Subsidiary were handled,
         coordinated or supervised by the Executive, or (z) about whom the
         Executive obtained confidential information in the ordinary course of
         business through the Executive's association with the Company or the
         Subsidiary.

                  (iii) The Executive covenants and agrees that, for a period of
         two (2) years following the later of the Commencement Date or the date
         on which the Executive's employment with the Company ceases, the
         Executive will not solicit, employ, engage or

                                      -6-
<PAGE>

         in any manner encourage any employee, broker or sales person of the
         Company or of any of its Subsidiaries (other than the Executive's
         personal secretary), to leave his or her employ for the employ of a
         person or entity which directly or indirectly competes with the Company
         or of any of its Subsidiaries unless and until he or she (A) has been
         terminated by the Company or a Subsidiary other than for cause or (B)
         has not been employed by the Company or any of its Subsidiaries for a
         period of two (2) years.

                  (iv) The Executive acknowledges that the foregoing provisions
         are intended to protect the Company's and its Subsidiaries business and
         customer contacts, and not to prevent the Executive from pursuing a
         livelihood in the general area of his previous training, and that such
         provisions should be interpreted accordingly.

         (b) CONFIDENTIALITY. The Executive covenants and agrees that he shall
not publish, disclose or make accessible by him to any other person, either
during or after the cessation of his employment, or use except during his
employment with the Company in the business and for the benefit of the Company
and its Subsidiaries, any confidential information which the Executive may now
possess, may obtain during or after his employment with Company, or may create
prior to the end of his employment with the Company relating to the business of
the Company or any of its Subsidiaries or of any customer or supplier of any of
them. In the event that the Executive becomes legally compelled to disclose any
of the confidential information, the Executive will provide the Company with
prompt written notice so that the Company may seek a protective order or other
appropriate remedy and/or waive in writing compliance with the provisions of
this Section 6(b), and in the event that such protective order or other remedy
is not obtained, or should the Company waive in writing compliance with the
provisions of this Section 6(b), the Executive will furnish only that portion of
the confidential information which is so legally required. Upon demand therefor,
the Executive shall return all tangible evidence of such confidential
information to the Chief Executive Officer of the Company (or his designee)
prior to or at the cessation of his employment.

         (c) INTERPRETATION AND ENFORCEMENT. The Executive acknowledges and
agrees that a breach of the provisions of this Section 6 could not adequately be
compensated by money damages, and, therefore, the Company shall be entitled, in
addition to any other right and remedy available to it, to an injunction
restraining such breach, and the Company shall not be required to post a bond in
any proceeding brought for such purpose. The Executive further acknowledges and
agrees that the provisions of this Section 6 are necessary and reasonable to
protect the Company and its Subsidiaries in the conduct of their businesses. If
any restriction contained in this Section 6 shall be deemed to be invalid,
illegal or unenforceable by reason of the extent, duration or geographical scope
thereof or otherwise, then the court making such determination shall have the
right to reduce such extent, duration, geographical scope or other provision
hereof, and in its reduced form such restriction or other provision shall then
be enforceable in the manner contemplated hereby. Nothing herein shall be
construed as prohibiting the Company from pursuing any other remedies, at law or
in equity, for any such breach or threatened breach.

                                      -7-
<PAGE>

         SECTION 7. TERMINATION.

         (a) DEFINITIONS.

                  (i) DEATH TERMINATION EVENT. As used herein, "Death
         Termination Event" shall mean the death of the Executive.

                  (ii) DISABILITY TERMINATION EVENT. As used herein, "Disability
         Termination Event" shall mean a circumstance where the Executive is
         physically or mentally incapacitated or disabled or otherwise unable to
         fully discharge his duties hereunder as a result of a single or related
         series of illnesses or conditions for a period of 100 consecutive days.

                  (iii) ESTATE. As used herein, the term "Estate" shall mean (A)
         in the event that the last will and testament of the Executive has not
         been probated at the time of determination, the estate of the
         Executive, and (B) in the event that the last will and testament of the
         Executive has been probated at the time of determination, the legatees
         or the Executor who are entitled under such will to the assets or
         payments at issue.

                  (iv) TERMINATION FOR CAUSE. As used herein, the term
         "Termination For Cause" shall mean (A) the termination by the Company
         of the Executive's employment hereunder upon a good faith determination
         by a majority vote of the members of the Board of Directors of the
         Company (after notice to the Executive and an opportunity for the
         Executive and/or his representative to appear before the Board of
         Directors of the Company) that termination of this Agreement is
         necessary by reason of (1) the conviction of the Executive of a felony
         under state or federal law, or the commission by the Executive an act
         of employment discrimination or sexual harassment under state or
         federal law, or the failure by the Executive to observe any policy of
         the Company set forth in a written policy manual or handbook, as
         amended from time to time, (2) the continued breach by the Executive of
         any provision of this Agreement for a period of thirty (30) days after
         written notice of such breach is given to the Executive by the Company,
         including gross negligence in the performance by the Executive of his
         duties or responsibilities hereunder, (3) the failure by the Executive
         to comply with any lawful directive of the Board of Directors or the
         Chief Executive Officer of the Company, which failure continues for ten
         (10) days after written notice thereof is given to the Executive, (4) a
         material violation of any provision of Section 5 of this Agreement by
         the Executive, (5) the taking by the Executive of any action on behalf
         of the Company or any of its Subsidiaries without the possession by the
         Executive of the appropriate authority to take such action (other than
         as a result of innocent error), (6) the taking by the Executive of any
         action that the Executive knows to be in conflict of interest with the
         Company or any of its Subsidiaries given the Executive's position with
         the Company and its Subsidiaries, or (7) the usurpation by the
         Executive of an opportunity that the Executive knows to be a corporate
         opportunity of the Company or any of its Subsidiaries; or (B) the
         voluntary cessation of employment by the Executive prior to the
         Expiration Date.

                                      -8-
<PAGE>

                  (v) TERMINATION WITHOUT CAUSE. As used herein, "Termination
         Without Cause" shall mean any termination of the Executive's employment
         by the Company hereunder other than as a result of a Termination For
         Cause, a Death Termination Event or a Disability Termination Event.

         (b) DEATH TERMINATION EVENT. Subject to the provisions of Section 9,
this Agreement shall terminate automatically upon the occurrence of a Death
Termination Event, whereupon (i) the Company will continue to pay to the Estate
the Base Salary, as then in effect, through the Expiration Date, and (ii) all
stock options, shares of restricted stock and other awards granted under or
otherwise subject to the Company Stock Plan then held by the Executive will
fully, immediately and automatically vest and be exercisable as and to the
extent permitted by the Company Stock Plan, and all promote, participation and
other similar contractual interests not subject to the Company Stock Plan then
held by the Executive will fully, immediately and automatically vest (i.e., no
longer be subject to forfeiture for any reason), notwithstanding any provisions
to the contrary in the applicable governing agreements or other instruments
pursuant to which such interests were granted to the Executive (it being the
intent of the parties that any such contrary provisions are overridden and
superceded hereby). In addition, if (i) an Extraordinary Event occurs within one
year after the occurrence of such Death Termination Event and (ii) a definitive
agreement relating to the specific merger, consolidation, asset sale or other
similar transaction (or relating to another substantially similar transaction)
which gave rise to such Extraordinary Event had been executed and delivered by
all parties thereto and was in effect at the time such Death Termination Event
occurred, then the Company shall pay to the Estate, within ten business days
after the occurrence of such Extraordinary Event, all amounts (without
duplication) to which the Executive would have been entitled pursuant to Section
4(b) assuming the Executive had made the election to convert this Agreement to a
consulting agreement pursuant to Section 4(c) immediately after the occurrence
of such Extraordinary Event.

         (c) DISABILITY TERMINATION EVENT. Subject to the provisions of Section
9, this Agreement shall terminate automatically upon the occurrence of a
Disability Termination Event, whereupon (i) the Company will continue to pay to
the Executive the Base Salary, as then in effect, through the Expiration Date,
and (ii) all stock options, shares of restricted stock and other awards granted
under or otherwise subject to the Company Stock Plan then held by the Executive
will fully, immediately and automatically vest and be exercisable as and to the
extent permitted by the Company Stock Plan, and all promote, participation and
other similar contractual interests not subject to the Company Stock Plan then
held by the Executive will fully, immediately and automatically vest (i.e., no
longer be subject to forfeiture for any reason), notwithstanding any provisions
to the contrary in the applicable governing agreements or other instruments
pursuant to which such interests were granted to the Executive (it being the
intent of the parties that any such contrary provisions are overridden and
superceded hereby). In addition, if (i) an Extraordinary Event occurs within one
year after the occurrence of such Disability Termination Event and (ii) a
definitive agreement relating to the specific merger, consolidation, asset sale
or other similar transaction (or relating another substantially similar
transaction) which gave rise to such Extraordinary Event had been executed and
delivered by all parties thereto and was in effect at the time such Disability
Termination Event occurred, then the Company shall pay to the Executive, within
ten business days after the occurrence of such Extraordinary Event,

                                      -9-
<PAGE>

         all amounts (without duplication) to which the Executive would have
         been entitled pursuant to Section 4(b) assuming the Executive had made
         the election to convert this Agreement to a consulting agreement
         pursuant to Section 4(c) immediately after the occurrence of such
         Extraordinary Event.

         (d) TERMINATION FOR CAUSE.

                  (i) The Executive acknowledges and agrees that the Company
         shall have the absolute right to terminate the Executive for any of the
         reasons enumerated in Section 6(a)(iii)(A).

                  (ii) Subject to the provisions of Section 9, this Agreement
         shall terminate automatically upon the occurrence of a Termination For
         Cause, whereupon (A) the Executive shall not be entitled to receive any
         additional payments hereunder other than the Base Salary, as then in
         effect, to and including the date that such Termination For Cause
         occurs, and (B) the Company shall be entitled to any and all remedies
         and damages available to it.

         (e) TERMINATION WITHOUT CAUSE. Subject to the provisions of Section 9,
this Agreement shall terminate automatically upon the occurrence of a
Termination Without Cause, whereupon (i) the Company shall: (1) continue to pay
the Base Salary, as then in effect, to the Executive until the Expiration Date,
in the same manner and at the same times as such Base Salary would have
otherwise been payable to the Executive had this Agreement not been terminated;
(2) within 90 days of the occurrence of such Termination Without Cause, pay to
the Executive an amount in cash equal to two times the amount of Bonus paid to
the Executive in respect of the fiscal year of the Company immediately preceding
the year in which such Termination Without Cause occurs; and (3) continue to
provide health, life and, to the extent permissible under the applicable plans,
disability insurance benefits to the Executive until the Expiration Date, which
benefits shall not at any time be less favorable than those which the Executive
would have received had he continued to be employed by the Company at such time
pursuant to this Agreement; provided, however, that if the Executive should
subsequently obtain employment from any source which provides such insurance
benefits to Executive at no out-of-pocket cost to him, then the benefits to be
provided to the Executive under this clause (3) shall be appropriately reduced
for so long as such subsequent employment continues and the Executive continues
to receive such benefits from such subsequent employer; and (ii) all stock
options, shares of restricted stock and other awards granted under or otherwise
subject to the Company Stock Plan then held by the Executive will fully,
immediately and automatically vest and be exercisable as and to the extent
permitted by the Company Stock Plan, and all promote, participation and other
similar contractual interests not subject to the Company Stock Plan then held by
the Executive will fully, immediately and automatically vest (i.e., no longer be
subject to forfeiture for any reason), notwithstanding any provisions to the
contrary in the applicable governing agreements or other instruments pursuant to
which such interests were granted to the Executive (it being the intent of the
parties that any such contrary provisions are overridden and superceded hereby).
In addition, if (i) an Extraordinary Event occurs within one year after the
occurrence of such Termination Without Cause and (ii) a definitive agreement
relating to the specific merger, consolidation, asset sale or other similar
transaction (or relating to another

                                      -10-
<PAGE>

substantially similar transaction) which gave rise to such Extraordinary Event
had been executed and delivered by all parties thereto and was in effect at the
time such Termination Without Cause, then the Company shall pay to the
Executive, within ten business days after the occurrence of such Extraordinary
Event, all amounts (without duplication) to which the Executive would have been
entitled pursuant to Section 4(b) assuming the Executive had made the election
to convert this Agreement to a consulting agreement pursuant to Section 4(c)
immediately after the occurrence of such Extraordinary Event.

         SECTION 8. WITHHOLDING. The Company shall be entitled to withhold from
amounts payable to the Executive hereunder such amounts as may be required by
applicable law to be so withheld.

         SECTION 9. SURVIVAL. Notwithstanding anything in this Agreement to the
contrary, the provisions of Sections 3 through 18 (inclusive) of this Agreement
shall survive any termination of this Agreement or cessation of the Executive's
employment hereunder through the later of (i) the Expiration Date or (ii) the
applicable period stated therein.

         SECTION 10. ENTIRE AGREEMENT; MODIFICATION. This Agreement sets forth
the entire understanding of the parties hereto with respect to the subject
matter hereof and supersedes all existing agreements between the parties
concerning such subject matter. This Agreement may be modified only by a written
instrument duly executed by the party charged therewith.

         SECTION 11. NOTICES. Any notice or other communication required or
permitted to be given hereunder shall be in writing and shall be mailed by
certified mail, return receipt requested, or otherwise delivered against
receipt, to the party to whom it is to be given, at the address of such party
set forth in the preamble to this Agreement (or to such other address as such
party shall have furnished in writing in accordance with the provisions of this
Section 11). Any notice or other communication given by certified mail shall be
deemed given at the time of certification thereof, except for a notice changing
a party's address which shall be deemed given at the time of receipt thereof.

         SECTION 12. WAIVER. Any waiver by either party of a breach of any
provision of this Agreement shall not operate as a waiver of any other breach of
such provision or of any breach of any other provision of this Agreement. The
failure of a party to insist upon strict adherence to any term of this Agreement
on one or more occasions shall not be considered a waiver or deprive that party
of the right thereafter to insist upon strict adherence to that provision or any
other provision of this Agreement. Any waiver must be in writing and signed by
the party charged therewith.

         SECTION 13. BINDING EFFECT. The Executive's rights and obligations
under this Agreement are not transferable by assignment or otherwise, such
rights shall not be subject to commutation, encumbrance or the claims of the
Executive's creditors, and any attempt to do any of the foregoing shall be void
and of no effect. The provisions of this Agreement shall be binding upon and
inure to the benefit of the Executive and his heirs and personal
representatives, and shall be binding upon and inure to the benefit of the
Company and its successors.

                                      -11-
<PAGE>

         SECTION 14. HEADINGS. The headings in this Agreement are solely for
convenience of reference, and shall be given no effect in the construction or
interpretation of this Agreement.

         SECTION 15. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without
reference to any otherwise applicable conflict of law provisions.

         SECTION 16. CONSTRUCTION AND INTERPRETATION. Should any provision of
this Agreement require judicial interpretation, the parties hereto agree that
the court interpreting or construing the same shall not apply a presumption that
the terms hereof shall be more strictly construed against one party by reason of
the rule of construction that a document is to be more strictly construed
against the party which itself, or through its agent, prepared the same, and it
is expressly agreed and acknowledged that the Executive, the Company and their
respective attorneys and representatives have participated in the preparation
hereof. No provision of this Agreement shall be interpreted in favor of, or
against, any party hereto by reason of the extent to which such party or its
counsel participated in the drafting hereof or by reason of the extent to which
any such provision is inconsistent with any prior draft hereof.

         SECTION 17. WAIVER OF TRIAL BY JURY. TO THE EXTENT PERMITTED BY
APPLICABLE LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES ANY AND ALL
RIGHTS IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY DEALING BETWEEN OR AMONG THEM RELATING TO
THE SUBJECT MATTER OF THIS AGREEMENT AND THE RELATIONSHIPS HEREIN ESTABLISHED.
THE SCOPE OF THIS WAIVER IS INTENDED TO ENCOMPASS ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS
AGREEMENT, AND THAT EACH PARTY WILL CONTINUE TO RELY ON THIS WAIVER IN THE
RELATED FUTURE DEALINGS BETWEEN THE PARTIES. EACH PARTY HERETO FURTHER
REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL
AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
SUCH CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT
IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO THE TRIAL BY THE COURT.

         SECTION 18. AVAILABLE REMEDIES. The Executive acknowledges and agrees
that the Executive's employment hereunder was granted by the Company primarily
in reliance upon the covenants, agreements, duties, obligations and assurances
of the Executive contained herein, and in the event of a breach of any such
covenant, agreement, duty, obligation or assurance of the Executive, including a
voluntary cessation by Executive of his employment hereunder prior

                                      -12-
<PAGE>

to the Expiration Date, (i) the Company and its Subsidiaries, including their
respective businesses and properties, would suffer irreparable damage for which
money damages alone would not adequately compensate the Company, and (ii) the
Company shall be entitled, in addition to any other remedies and damages
available to it, to obtain injunctive relief in the form of a temporary
injunction, permanent injunction, restraining order or other comparable remedies
in order to prevent or cease the violation of such covenant, agreement, duty,
obligation or assurance.

         SECTION 19. COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                      -13-
<PAGE>

         IN WITNESS WHEREOF, each party hereto, intending to be legally bound,
has duly executed this Agreement as of the date first written above.

                                            INSIGNIA FINANCIAL GROUP, INC.

                                            By: /s/Frank M. Garrison
                                            -----------------------------------
                                                Frank M. Garrison
                                                Office of the Chairman

                                            EXECUTIVE

                                            /s/ Adam B. Gilbert
                                            -----------------------------------
                                            Adam B. Gilbert

                                      -14-

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