Document:

Exhibit 4.1

                            CORONADO INDUSTRIES, INC.
                      16929 E. Enterprise Drive, Suite 202
                            Fountain Hills, AZ 85268

                                 March 29, 2001

Coronado Employees and Consultants,

     The  Company's  Board of  Directors  has decided to make  available  to all
employees and consultants,  shares of the Company's common stock at the price of
90% of the lowest  closing  bid price  during  the week prior to the  employee's
payday.

     To participate  in this program,  all you have to do is execute this letter
in the space below,  and indicate the amount of wages you wish to have allocated
to this Plan and the pay period from which your salary  will be  credited.  Your
free-trading shares will be delivered to you within a few days.

                                        Coronado Industries, Inc.

                                        By: /s/ Gary R. Smith
                                            ------------------------------
                                            Gary R. Smith, President

     ------------------------------         ------------------------------
     Amount of Wages                        Employee Signature

     ------------------------------         ------------------------------
     Pay Period From                        Name of Employee
     Which To Be Paid                       (Please Print)Exhibit 10.1

                           PURCHASE AND SALE AGREEMENT
                        (FF&E - NORTH SCOTTSDALE SCHOOL)

     This PURCHASE AND SALE  AGREEMENT  (FF&E - NORTH  SCOTTSDALE  SCHOOL) (this
"AGREEMENT") is entered into as of the 31st day of January, 2001, by and between
THE TESSERACT GROUP,  INC., a Minnesota  corporation,  in its corporate capacity
and in its  capacity as debtor and  debtor-in-possession  in its Chapter 11 case
pending  in the  United  States  Bankruptcy  Court for the  District  of Arizona
("SELLER"), and EDUCATION PROPERTY INVESTORS, INC. ("EPI"), a Nevada corporation
(EPI or its  assignee  under  SECTION  14.18  hereof  is  referred  to herein as
"BUYER").

                                    RECITALS

     A. Seller operates that certain private school ("SCHOOL") commonly known as
the  "North  Scottsdale  TesseracT  School"  located  at 9701  East  Bell  Road,
Scottsdale, Arizona 85260.

     B. Seller has filed a voluntary  petition for Chapter 11 relief under Title
11 of the United States Code  ("BANKRUPTCY  CODE"),  which is pending before the
United  States  Bankruptcy  Court for the District of Arizona  (the  "BANKRUPTCY
COURT").

     C. Seller desires, subject to the approval of the Bankruptcy Court, to sell
and Buyer desires to purchase  certain assets of Seller used in connection  with
Seller's  operations of the School on the terms and conditions set forth in this
Agreement and in accordance with Bankruptcy Code ss.ss.363 and 365.

     D.  Buyer  and  Seller  further  desire,  subject  to the  approval  of the
Bankruptcy  Court,  to enter into such other  agreements and  arrangements  that
effectuate the orderly transition of the School from Seller to Buyer, including,
but not limited to, the purchase of the Tract "B" Land (defined below).

     E.  Buyer has  completed  its due  diligence  of the  School  and all other
matters addressed in this Agreement.

     F.  The  parties  hereto   acknowledge  that:  (i)  they  intend  that  the
transaction  contemplated  under this  Agreement be an asset  purchase and not a
sale of the stock of Seller; and (ii) Buyer is not buying the Business of Seller
as defined in this Agreement.

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto agree as follows:
<PAGE>
                                   ARTICLE I.
                                   DEFINITIONS

     For purposes of this Agreement,  the following capitalized terms, when used
in this Agreement, shall have the meanings assigned to them as follows:

     1.1 ADMINISTRATIVE LEASE CLAIM. The term "Administrative Lease Claim" shall
mean the Claim for outstanding  rent due to EPI for October,  2000 for the North
Scottsdale School.  The parties agree that the amount of rent for October,  2000
for the North Scottsdale School is $89,647.80.

     1.2 INTENTIONALLY OMITTED.

     1.3 BUSINESS.  The term "Business" shall mean Seller's operations conducted
under the name  "TesseracT,"  "The TesseracT Group,  Inc.," or "North Scottsdale
TesseracT School," at the School and at any other location within or outside the
State of Arizona.

     1.4 CLAIM.  The term "Claim" shall be given the same meaning as provided to
such term under Bankruptcy Codess.101(5).

     1.5 CLOSING.  The term "Closing" shall mean the completed  exchange of: (i)
Closing  documents  set forth in ARTICLES XII AND XIII below,  together with the
simultaneous  conveyance  by Seller to Buyer of the  Purchased  Assets  (defined
below);  and (ii) the payment by Buyer to Seller of the Purchase  Price (defined
below).

     1.6 CLOSING DATE.  The term "Closing Date" shall mean the date on which the
Closing occurs as determined pursuant to ARTICLE IX hereof.

     1.7 COURT.  The term "Court" shall mean the United States  Bankruptcy Court
for the District of Arizona.

     1.8 EQUIPMENT.  The term  "Equipment"  shall mean all furniture,  fixtures,
office  equipment,  computers,  printers,  and other tangible  personal property
owned by Seller as specifically set forth on SCHEDULE 1.8 attached hereto.

     1.9 JEBCO  LOAN.  JEBCO Loan  means that  certain  Promissory  Note,  dated
February 9, 2000 by Buyer to JEBCO Group, Inc. ("JEBCO") in the principal amount
of  $1,362,000  secured by that certain Deed of Trusts and  Assignment of Rents,
dated February 9, 2000 by Seller as Trustor, that certain Loan Agreement,  dated
February 9, 2000 by and between JEBCO and Seller,  and that certain Arizona Form
UCC-1 by Seller filed on February 10, 2000 with the Maricopa County Recorder.

     1.10  Tract "B" LAND.  The term  "Tract "B" Land"  shall  refer to the real
property adjacent to the Real Property that is being sold by Seller and acquired
by Buyer  contemporaneously  with  this  Agreement  pursuant  to the  Tract  "B"
Purchase and Sale Agreement.

                                       2
<PAGE>
     1.11 LEASE.  The term "Lease" shall mean that certain  Amended and Restated
Lease dated December 27, 1999 by and between  Seller,  as lessee,  and Buyer, as
lessor, pursuant to which Seller leases the Real Property from Buyer.

     1.12 NEW LEASE. EPI and/or Thomas J. O'Brien,  Bishop of the Roman Catholic
Church of the Diocese of Phoenix will provide  TesseracT with the benefit of use
of the North  Scottsdale  School free of Minimum Rent (as defined in Article III
of the Existing Lease), subject to the construction requirements of Assignee (as
proposed  buyer of the real property and  improvements  of the North  Scottsdale
School)  for  the  period  from  February  1  through  May  31,  2001,  for  the
continuation  of the North  Scottsdale  School;  provided,  however,  that:  (i)
TesseracT  shall  not be  responsible  for the  cost  or  expense  of  that  new
construction  to be performed by Assignee;  and (ii) in the  performance  of the
Assignee's   construction,   Assignee  shall  not  unreasonably  interfere  with
TesseracT's use of the Land or operations at the North  Scottsdale  School.  EPI
and TesseracT shall execute a new lease ("NEW LEASE"),  which New Lease shall be
the  same  form  as  the  Existing  Lease  with  only  the  following   material
modifications,  and except for those terms and conditions  which are clearly and
materially  inconsistent  with the terms and  spirit of the  parties'  agreement
reflected by or underlying this Agreement; (i) the term under the New Lease will
commence as of, and only upon,  the  Closing,  and shall  expire on May 31, 2001
with no  options  to  renew;  and (ii)  payment  of  Minimum  Rent  shall not be
required,  but all of  TesseracT's  other  obligations,  both of a monetary  and
non-monetary  nature, shall remain in effect. The form of the New Lease shall be
approved by the parties by February 15, 2001.

     1.13 PRESCHOOL.  The term  "Preschool"  shall mean the preschool  presently
operated by Seller at the Real Property.

     1.14 REAL PROPERTY.  The term "Real  Property" shall mean the real property
on which the School is located as more particularly described on SCHEDULE 1.14.

     1.15 SECTION 363 ORDER.  The term  "Section 363 Order" shall mean the order
entered by the Court pursuant to Bankruptcy Code ss.363 approving  Seller's sale
of the Land and the Purchased  Assets (as defined in SECTION 2.1 below) to Buyer
free and clear of any and all liens,  security interests,  and adverse interests
of any kind  including  the JEBCO Loan,  the form of which shall be agreed to by
the parties hereto.

     1.16 SECTION 365 ORDER.  The term  "Section 365 Order" shall mean the Order
entered by the Court pursuant to Bankruptcy  Code ss.365(a)  approving  Seller's
decision to: (i) reject the Lease as it relates to the Real  Property;  and (ii)
assume  the  Assumed  Contracts,  the form of which  shall be  agreed  to by the
parties hereto.

                                       3
<PAGE>
                                   ARTICLE II.
                                PURCHASE AND SALE

     2.1  ASSETS  TO BE  SOLD.  Subject  to the  terms  and  conditions  of this
Agreement,  on the Closing  Date,  Seller agrees to sell,  assign,  transfer and
convey the following assets to Buyer (collectively, the "PURCHASED ASSETS"):

          2.1.1 EQUIPMENT. The Equipment.

          2.1.2 OTHER PROPERTY. In addition to the Equipment,  any and all other
tangible  property,  inventory,  and  ancillary  assets  utilized  by  Seller in
connection with the Business  conducted at the School and located at the School,
including,  but not limited to,  supplies-on-hand  at the School (which supplies
shall, prior to Closing, be maintained by Seller in the ordinary course).

          2.1.3 CERTAIN RIGHTS.  All rights under or pursuant to all warranties,
representations  and  guarantees  made  by  suppliers  in  connection  with  the
Purchased  Assets or services  furnished to Seller  pertaining  to the School or
affecting the Purchased Assets,  to the extent such warranties,  representations
and guarantees:  (i) are not required by Seller to fulfill its obligations under
this Agreement; and (ii) are assignable.

          2.1.4 GOODWILL. All of Seller's goodwill that relates to the School.

     2.2 EXCLUDED ASSETS.  Notwithstanding  SECTION 2.1 above,  Seller shall not
sell, transfer,  assign,  convey or deliver to Buyer, any asset not specifically
addressed  in SECTION  2.1 above,  including  but not  limited to the  following
assets (collectively the "EXCLUDED ASSETS"):

          2.2.1  CONSIDERATION.  The consideration  delivered by Buyer to Seller
pursuant to this Agreement.

          2.2.2  INTELLECTUAL  PROPERTY.  All  intellectual  property of Seller,
including, but not limited to, Sellers' trademarks, trade names, curriculum, and
trade secrets.

          2.2.3  INSURANCE  POLICIES.  Seller's  insurance  policies  and rights
thereunder,  including,  but not  limited to,  general  liability  and  workers'
compensation insurance held by Seller.

          2.2.4 CORPORATE FRANCHISE. Seller's franchise to be a corporation, its
certificate of  incorporation,  corporate  seal,  stock books,  minute books and
other corporate records having exclusively to do with the corporate organization
and capitalization of Seller.

          2.2.5  PRESCHOOL  LICENSE.  Seller's  license  issued  by the  Arizona
Department of Education to operate the Preschool.

                                       4
<PAGE>
     2.3 SELLER'S  BUSINESS.  The parties  expressly  acknowledge and agree that
this  Agreement  is not entered  into for the sale of the stock of Seller or the
sale of Seller's Business. This Agreement addresses only the Purchased Assets.

                                  ARTICLE III.
                             [INTENTIONALLY OMITTED]

                                   ARTICLE IV.
                                TERMS OF PAYMENT

     4.1 PAYMENT DUE AT CLOSING.  At Closing,  Buyer shall  provide,  and Seller
shall  receive the  "PURCHASE  PRICE".  The Purchase  Price is comprised of: (i)
Buyer's  release and waiver of the  Administrative  Lease Claim (see SECTION 6.3
below) (the "WAIVED  ADMINISTRATIVE  CLAIM");  and (ii) $100,000 in cash paid by
certified funds or wire transfer on the Closing Date (the "CASH PAYMENT")

                                   ARTICLE V.
              REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER

     Seller hereby represents,  warrants, and covenants to Buyer as follows, and
the  warranties,  representations,  and  covenants  contained in this Article or
elsewhere in this Agreement shall be deemed to be made as of the Closing:

     5.1 CORPORATE  STATUS.  Seller is a  corporation  duly  organized,  validly
existing and in good  standing  under the laws of the State of Minnesota  and is
qualified to do business in the State of Arizona.

     5.2 CORPORATE AUTHORITY.  Subject only to approval of the Court, Seller has
full power and authority to execute and perform this Agreement and all corporate
action  necessary to confirm such  authority  has been duly and lawfully  taken.
Upon  execution  hereof,  this  Agreement  shall  be a  valid,  legally  binding
obligation of Seller,  enforceable in accordance  with its terms subject only to
approval by the Court.

     5.3 TITLE TO PURCHASED ASSETS.  Seller has good and marketable title to the
Purchased  Assets,  and has full power and  authority to transfer  such title to
Buyer subject only to approval by the Court.

                                   ARTICLE VI.
               REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER

     Buyer  hereby  represents  and  warrants  to  Seller  as  follows  and  the
warranties  and  representations  contained in this Article or elsewhere in this
Agreement shall be deemed to be made as of Closing:

                                       5
<PAGE>
     6.1 ORGANIZATION.  Buyer is a corporation duly organized,  validly existing
and in good  standing  under the laws of the State of Nevada and is qualified to
do business in Arizona.

     6.2  AUTHORITY.  Buyer has full power and  authority to execute and perform
this Agreement and all action  necessary to confirm such authority has been duly
and lawfully  taken.  Upon execution  hereof,  this shall be a valid and legally
binding  obligation of Buyer,  enforceable  against Buyer in accordance with its
terms subject only to approval by the Court.

     6.3  ADMINISTRATIVE  LEASE CLAIM.  As of the Closing Date: (i) Buyer owns a
one hundred percent (100%) undivided interest in the Administrative Lease Claim;
and (ii) Buyer shall not have  previously  sold,  assigned,  or transferred  the
Administrative Lease Claim.

                                  ARTICLE VII.
                                 OTHER COVENANTS

     7.1  REJECTION  OF  LEASE OF REAL  PROPERTY.  Buyer  shall  have a claim as
defined in Bankruptcy Code ss.101(5) for lease rejection damages under the Lease
as it relates to the School (the "REJECTION  CLAIM").  The Rejection Claim shall
be  "allowed"  as that term is used in  Bankruptcy  Code  ss.502  (the  "ALLOWED
REJECTION CLAIM"). The amount of the Allowed Rejection Claim shall be calculated
in  accordance  with the Lease and shall only be  further  limited  pursuant  to
Bankruptcy  Code  ss.502(b)(6),  and such  calculation  will be determined on or
before February 15, 2001. Seller waives its right to seek reconsideration of the
Allowed Rejection Claim pursuant to Bankruptcy Code ss.502(j) or otherwise.

                                  ARTICLE VIII.
                                   INDEMNITIES

     8.1 SELLER. Seller agrees to hold harmless, indemnify and defend Buyer from
and against any and all  uninsured  loss,  claim,  damage,  liability or expense
(including,  but not  limited  to,  reasonable  attorneys'  fees and  costs) (i)
arising out of or  occurring as the result of any breach by Seller of any of its
covenants,  representations or warranties hereunder or (ii) arising out of or in
connection with or related to the Purchased  Assets or operation of the Business
at the  School  or at the  Land  prior to the date of  Closing,  other  than the
Assumed  Liabilities.  In no event  shall the  liability  of Seller  under  this
Section 8.1 together with the liability of Seller  arising out of or relating to
the Adjacent Property Purchase and Sale Agreement collectively exceed $5,000.

     8.2 BUYER. Buyer agrees to hold harmless,  indemnify and defend Seller from
and against any and all  uninsured  loss,  claim,  damage,  liability or expense
(including,  but not  limited  to,  reasonable  attorneys'  fees and  costs) (i)
arising out of or occurring in connection with any breach by Buyer of any of its
covenants, representations or warranties hereunder, or any liability of Buyer or
(ii) arising out of or in connection with or related to the Purchased  Assets or
operations at the School or the Land on or after the date of Closing.

                                       6
<PAGE>
     8.3 SOLE REMEDY.  The  indemnifications  in SECTION 8.1 OR 8.2, as the case
may be, will be the sole  remedy of the Buyer or the Seller if any matter  which
is the subject of a representation or warranty contained in ARTICLE V or ARTICLE
VI is not as represented or warranted.

                                   ARTICLE IX.
                                     CLOSING

     9.1  CLOSING.  Closing  shall  occur at the law  offices of  Chicago  Title
Insurance  Company,  2415 E. Camelback Road,  Suite 30,  Phoenix,  Arizona 85016
Escrow  Officer:  Jack Knott,  the Closing must occur by no later than March 13,
2001;  provided that such Closing may be extended for a period of up to, but not
to exceed fifteen (15) days to allow for the closing of the transaction with the
Assignee (the "CHURCH TRANSACTION").

                                   ARTICLE X.
                  CONDITIONS PRECEDENT TO BUYER'S DUTY TO CLOSE

     Buyer shall have no duty to close, and no obligation hereunder,  unless and
until each and every one of the following  conditions  precedent have been fully
and completely satisfied:

     10.1  CONTINUED  TRUTH  OF  WARRANTIES.  All  of  the  representations  and
warranties of Seller  contained  herein shall continue to be true and correct at
Closing.

     10.2  PERFORMANCE  OF  OBLIGATIONS.  Seller  shall have fully  performed or
tendered  substantial  performance  of each  and  every  one of its  obligations
hereunder which by its terms is capable of performance before Closing.

     10.3 DELIVERY OF CLOSING DOCUMENTS.  Seller shall have tendered delivery to
Buyer of all the documents,  in form and substance  reasonably  satisfactory  to
Buyer, required to be delivered to Buyer by Seller on or before Closing pursuant
to this Agreement.

     10.4  LITIGATION.  No lawsuit,  administrative  proceedings  or other legal
action shall have been filed  against  Seller as of the Closing Date which seeks
to  restrain or enjoin  Buyer's  acquisition  of the  Purchased  Assets,  or the
assumption of the Assumed Contracts.

     10.5 COURT  ORDERS.  The Court shall have entered the Section 363 Order and
the Section 365 Order.

     10.6 TRACT "B" PURCHASE AND SALE AGREEMENT. The conditions precedent to the
Buyer's  obligations  under the Adjacent  Property  Purchase and Sale  Agreement
shall have been fulfilled or waived by the Buyer.

     10.7 TRANSACTION WITH ASSIGNEE. Buyer shall have consummated the closing of
the Church Transaction.

                                       7
<PAGE>
                                   ARTICLE XI.
                 CONDITIONS PRECEDENT TO SELLER'S DUTY TO CLOSE

     Seller shall have no duty to close this  transaction  unless and until each
and  every  one of the  following  conditions  precedent  have  been  fully  and
completely satisfied:

     11.1  CONTINUED  TRUTH  OF  WARRANTIES.  All  of  the  representations  and
warranties of Buyer  contained  herein shall  continue to be true and correct at
Closing.

     11.2  PERFORMANCE  OF  OBLIGATIONS.  Buyer  shall have fully  performed  or
tendered  substantial  performance  of each  and  every  one of its  obligations
hereunder which by its terms is capable of performance before Closing.

     11.3 DELIVERY OF CLOSING  DOCUMENTS.  Buyer shall have tendered delivery to
Seller of all the documents,  in form and substance  reasonably  satisfactory to
Buyer, required to be delivered to Seller by Buyer on or before Closing pursuant
to this Agreement.

     11.4  LITIGATION.  No lawsuit,  administrative  proceedings or legal action
other than the Chapter 11 Case shall have been filed by or against  Seller as of
the  Closing  Date  which  seeks to  restrain  or  enjoin  Seller's  sale of the
Purchased Assets or the assumption of the Assumed Contracts.

     11.5 COURT  ORDERS.  The Court shall have entered the Section 363 Order and
the Section 365 Order.

     11.6  ADJACENT  PROPERTY  PURCHASE  AND  SALE  AGREEMENT.   The  conditions
precedent to the Seller's  obligations  under the Adjacent Property Purchase and
Sale Agreement shall have been fulfilled or waived by the Seller.

                                  ARTICLE XII.
                   ITEMS TO BE DELIVERED AT CLOSING BY SELLER

     At Closing,  Seller shall,  unless  waived in writing by Buyer,  deliver to
Buyer the following items, each in form and substance  reasonably  acceptable to
Buyer and Buyer's counsel:

     12.1  BILL OF  SALE.  A duly  executed  bill of  sale  selling,  assigning,
transferring, and conveying the Purchased Assets to Buyer or its assignee.

     12.2  CERTIFIED  RESOLUTION.  A copy  of the  resolution  of the  Board  of
Directors of Seller,  certified  by the  Secretary  of Seller,  authorizing  the
execution and performance of this Agreement.

                                       8
<PAGE>
     12.3 REPRESENTATIONS AND WARRANTIES. A certificate signed by an appropriate
representative  of  Seller  to the  effect  that  all  the  representations  and
warranties of Seller contained herein are true and correct as of Closing.

                                  ARTICLE XIII.
                    ITEMS TO BE DELIVERED AT CLOSING BY BUYER

     At Closing,  Buyer shall,  unless waived in writing by Seller,  deliver the
following items, each in form and substance reasonably  acceptable to Seller and
Seller's counsel, to Seller:

     13.1  CERTIFIED   RESOLUTION.   A  copy  of  the  resolutions   appropriate
representative(s)  of Buyer  authorizing  the execution and  performance of this
Agreement.

     13.2 THE NEW LEASE. The New Lease.

     13.3 THE ADMINISTRATIVE  LEASE CLAIM. Buyer's written release and waiver of
the Administrative Claim.

     13.4 REPRESENTATIONS AND WARRANTIES. A certificate signed by an appropriate
representative  of  Buyer  to  the  effect  that  all  the  representations  and
warranties of Buyer contained herein are true and correct as of Closing.

     13.5 THE PURCHASE PRICE. The Purchase Price.

                                  ARTICLE XIV.
                                  MISCELLANEOUS

     14.1 RIGHT TO BID. Buyer  acknowledges  and understands  that the Court may
consider  higher  and  better  offers  for the  Purchased  Assets  and the Land.
Notwithstanding  any other language to the contrary herein,  Buyer  acknowledges
and agrees that, Buyer shall not be entitled to receive any overbid protections,
breakup fees or other buyer protections,  if Buyer is not ultimately approved as
the buyer of the Purchased Assets.

     14.2  FURTHER  ASSURANCES.  Each party  shall,  at any time after  Closing,
execute  and  deliver  to the other  party all such  additional  instruments  of
conveyance and assignments,  certificates or similar documents and take all such
further actions as such other party may reasonably request.

     14.3 NO OTHER AGREEMENTS.  This Agreement,  and all agreements delivered as
part of the Closing contemplated herein, constitute the entire agreement between
the parties with respect to its subject  matter.  All prior and  contemporaneous
negotiations,  proposals and  agreements  between the parties are  superseded by
this  Agreement.  Any  changes  to this  Agreement  must be agreed to in writing
signed by both parties.

                                       9
<PAGE>
     14.4 WAIVER.  Either party may waive the performance of any obligation owed
to it by the  other  party  hereunder  for  the  satisfaction  of any  condition
precedent to the waiving party's duty to perform any of its covenants, including
its obligations to Close.  Any such waiver shall be valid only if contained in a
writing signed by the waiving party.

     14.5 Intentionally Omitted.

     14.6 NOTICES.  Any notices  required or allowed in this Agreement  shall be
effectively given if placed in a sealed envelope, postage prepaid, and deposited
in the United States mail, registered or certified, addressed as follows:

          To Seller:                    Lucian Spataro, Ph.D.
                                        The TesseracT Group, Inc.
                                        4515 East Muirwood Drive
                                        Phoenix, Arizona  85048

          Copy To:                      Robert J. Miller, Esq.
                                        Bryan Cave LLP
                                        Two North Central Avenue, Suite 2200
                                        Phoenix, Arizona  85004

          To Buyer:                     Education Property Investors, Inc.
                                        Legal Department
                                        300 Esplanade Drive, Suite 1860
                                        Oxnard, California  93030
                                        Attention:  Mr. Andre C. Dimitriadis.

          Copy to:                      Education Property Investors, Inc.
                                        Legal Department
                                        300 Esplanade Drive, Suite 1860
                                        Oxnard, California  93030
                                        Attention:  Legal Department

     14.7 BROKER AND FINDERS. Each of the parties hereto represents and warrants
to the  other  that it has not  employed  or  retained  any  broker or finder in
connection with the  transactions  contemplated by this Agreement nor has it had
any  dealings  with  any  person  which  may  entitle  such  person  to a fee or
commission  from any party hereto.  Each of the parties shall indemnify and hold
the other harmless for, from and against any claim,  demand or damage whatsoever
by virtue of any arrangement or commitment made by it with or to any person that
may entitle  such person to any fee or  commission  from the other party to this
Agreement.

     14.8  RISK OF  LOSS.  The  risk of  loss,  damage,  or  destruction  of the
Purchased  Assets shall be borne by Seller until Closing.  In the event any loss
or damage to or taking of any such  Purchased  Assets is material in the context
of this transaction and occurs before Closing,  Seller shall immediately  notify
Buyer of the nature and extent of such loss, damage or taking,  and Buyer shall,
at its option,  by written  notice to Seller,  either  terminate  this Agreement
without  further  liability or obligation  to Seller,  or Buyer may proceed with

                                       10
<PAGE>
this transaction on the terms and conditions  mutually agreeable to the parties,
including any adjustment in the Purchase Price.

     14.9 THIRD-PARTY BENEFICIARY. Nothing contained herein shall create or give
rise to any  third-party  beneficiary  rights for any  individual or entity as a
result of the terms and provisions of this Agreement.

     14.10  RELATIONSHIP OF PARTIES.  The relationship of Seller and Buyer shall
be that of  independent  entities and neither shall be deemed to be the agent of
the other.  It is not intended by this  Agreement  to, and nothing  contained in
this Agreement  shall,  create any  partnership,  joint venture or other similar
arrangement between Seller and Buyer.

     14.11 CHOICE OF LAW. This Agreement shall be governed by and interpreted in
accordance  with the laws of the  State  of  Arizona  and,  as  applicable,  the
Bankruptcy Code.

     14.12  PARAGRAPH  HEADINGS.  The Section,  Article and  paragraph  headings
contained herein are for convenience only and shall have no substantive  bearing
on the interpretation of this Agreement.

     14.13 RULES OF INTERPRETATION.  The following rules of interpretation shall
apply to this Agreement,  the Schedules hereto and any certificates,  reports or
other  documents or instruments  made or delivered  pursuant to or in connection
with this Agreement,  unless otherwise  expressly provided herein or therein and
unless the context hereof or thereof clearly requires otherwise:

          14.13.1 A reference to any document or  agreement  shall  include such
document or agreement as amended,  modified or supplemented from time to time in
accordance with its terms, and if a term is said to have the meaning assigned to
such term in another document or agreement and the meaning of such terms therein
is amended, modified or supplemented, then the meaning of such term herein shall
be deemed automatically amended, modified or supplemented in a like manner.

          14.13.2  References to the plural  include the singular,  the singular
the plural and the part the whole.

          14.13.3  The words  "include,"  "includes,"  and  "including"  are not
limiting.

          14.13.4 A reference to any law includes any amendment or  modification
to such law which is in effect on the relevant date.

          14.13.5 A reference to any person or entity  includes its  successors,
heirs and permitted assigns.

                                       11
<PAGE>
          14.13.6 The words "hereof,"  "herein,"  "hereunder," and similar terms
in this  Agreement  refer to this Agreement as a whole and not to any particular
provision of this Agreement.

          14.13.7 All Schedules to this Agreement  constitute  material terms of
this Agreement and are incorporated fully into the terms of this Agreement.

     14.14 TIME IS OF THE ESSENCE. Time is of the essence in the performance and
observance of all obligations and duties under this Agreement.

     14.15  ATTORNEY  FEES.  Each party  shall bear its own legal fees and costs
incurred in the negotiation and closing of this  transaction.  In the event of a
dispute arising between the parties under this Agreement,  the prevailing  party
shall be  entitled  to  reasonable  attorneys'  fees and  costs of suit from the
non-prevailing party.

     14.16 COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may be executed in
any number of counterparts,  each of which shall be an original, but all of such
counterparts shall together constitute but one and the same instrument. Delivery
of an executed  counterpart of this Agreement by telefacsimile  shall be equally
as effective as delivery of a manually  executed  counterpart of this Agreement.
Any party delivering an executed  counterpart of this Agreement by telefacsimile
also shall deliver a manually  executed  counterpart  of this  Agreement but the
failure  to  deliver  a  manually  executed  counterpart  shall not  affect  the
validity, enforceability, and binding effect of this Agreement.

     14.17 NO  ADMISSIONS.  Nothing  in this  Agreement  shall  be,  or shall be
construed to be, an  admission  of liability by the parties  hereto to any other
person, party or entity.

     14.18 NO  ASSIGNMENTS.  Neither this  Agreement nor any right or obligation
hereunder may be assigned by either party hereto without the written  consent of
the other party; provided that Buyer may assign its rights and obligations under
this Agreement to Assignee.

     14.19  BANKRUPTCY  COURT  APPROVAL.  Seller  shall  file a  motion  seeking
bankruptcy court approval of the transactions addressed herein promptly upon the
execution of this Agreement.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>
     IN WITNESS  WHEREOF,  the parties hereto have set their hands effective the
date set forth above.

                                     THE TESSERACT GROUP, INC.,
                                     a Minnesota corporation

                                     By  /S/ LUCIAN SPATARO
                                         ---------------------------------------
                                     Its CFO
                                         ---------------------------------------

                                                                          SELLER

                                     EDUCATION PROPERTY INVESTORS, INC.,
                                     a Nevada corporation

                                     By  /S/ JULIA KOPTA
                                         ---------------------------------------
                                     Its SENIOR VICE PRESIDENT
                                         ---------------------------------------

                                                                           BUYER

                                       13
<PAGE>
                                  SCHEDULE 1.8

                                   (EQUIPMENT)
<PAGE>
                                  SCHEDULE 1.14

                         (DESCRIPTION OF REAL PROPERTY)
<PAGE>
                 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT
                        (FF&E - NORTH SCOTTSDALE SCHOOL)

THIS FIRST  AMENDMENT TO PURCHASE AND SALE  AGREEMENT  (FF&E - NORTH  SCOTTSDALE
SCHOOL)  (this  "AMENDMENT")  is made and  entered  into as of this  15th day of
March,  2001 by and between THE TESSERACT GROUP,  INC., a Minnesota  corporation
("SELLER")  and  EDUCATION  PROPERTY  INVESTORS,   INC.,  a  Nevada  corporation
("BUYER").

                                    RECITALS

     A. Buyer and Seller have previously executed that certain Purchase and Sale
Agreement  (FF&E - North  Scottsdale  School)  dated as of January 31, 2001 (the
"AGREEMENT"),  with  respect to  certain  assets of Seller  located in  Maricopa
County, Arizona.

     B.  Buyer  and  Seller  wish to  amend  the  Agreement,  subject  to and in
accordance with the further terms, covenants and provisions of this Amendment.

          NOW,  THEREFORE,  IN  CONSIDERATION  OF the  Agreement,  the foregoing
Recitals,  the mutual  agreements,  covenants  and  promises  contained  in this
Amendment and other good and valuable  consideration,  the receipt,  sufficiency
and validity of which is hereby acknowledged, Buyer and Seller agree as follows:

          1.  DEFINITIONS.  Capitalized  terms  used in this  Amendment  without
definition  shall have the  meanings  assigned  to such terms in the  Agreement,
unless the context expressly requires otherwise.

          2. ADMINISTRATIVE  LEASE CLAIM. SECTION 1.1 of the Agreement is hereby
amended in its entirety to read as follows:

     "The term  "Administrative  Lease  Claim"  shall mean EPI's Claim for:  (i)
     one-half (1/2) of the outstanding rent due for October,  2000 for the North
     Scottsdale  School, in the amount of $44,823.90;  (ii) the outstanding rent
     due for October, 2000 for the Eagan School in the amount of $32,837.63; and
     (iii) the  outstanding  rent due for October,  2000 for the  Paradise  Lane
     School in the amount of $16,772.12."

          3. REPRESENTATIONS,  WARRANTIES AND COVENANTS OF BUYER. SECTION 6.3 of
the Agreement is hereby amended in its entirety to read as follows:

     "As of the Closing Date, (i) Buyer owns the Administrative Lease Claim; and
     (ii) Buyer shall not have  previously  sold,  assigned,  or transferred the
     Administrative Lease Claim."
<PAGE>
          5. COUNTERPARTS;  FACSIMILE SIGNATURES. This Amendment may be executed
in any number of  counterparts,  each of which shall be an original,  but all of
such  counterparts  shall together  constitute but one and the same  instrument.
Delivery of an executed  counterpart  of this  Agreement by  facsimile  shall be
equally as  effective  as delivery of a manually  executed  counterpart  of this
Agreement.  Any party  delivering an executed  counterpart  of this Agreement by
facsimile also shall deliver a manually  executed  counterpart of this Agreement
but the failure to deliver a manually executed  counterpart shall not affect the
validity, enforceability, and binding effect of this Amendment.

          6.  FULL  FORCE  AND  EFFECT.  Except as  expressly  modified  by this
Amendment,  the Agreement remains  unmodified and in full force and effect.  All
references in the Agreement to "this  Agreement"  shall be deemed  references to
the Agreement as modified by this Amendment.

          IN WITNESS  WHEREOF,  Buyer and Seller have executed this Amendment as
of the date and year first above written.

SELLER:                                     BUYER:

THE TESSERACT GROUP, INC.                   EDUCATION PROPERTY INVESTORS, INC.,
a Minnesota corporation                     a Nevada corporation

By:   /S/ MIKE LYNCH                        By:   /S/ JULIA KOPTA
      --------------------------                  --------------------------
Name: Mike Lynch                            Name: JULIA KOPTA
Its:  Chief Operating Officer               Its:  SENIOR VICE PRESIDENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]