Document:

Prepared by MerrillDirect

Exhibit 10.39

I.C.H. CORPORATION

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

ROBERT H. DRECHSLER

 

             This Amended and Restated Employment Agreement
("Agreement") is effective as of the 29th day of June,
2000, by and between I.C.H. Corporation ("ICH"), a Delaware
corporation with offices at 9255 Towne Centre Drive, Suite 600, San Diego, CA
92121, and its subsidiaries, Sybra, Inc., a Michigan corporation
("Sybra"), Lyon’s of California, Inc., a California corporation
("Lyons"), and Care Financial Corp., a Delaware corporation
("Care", and collectively, with ICH, Sybra and Lyons, the
"Companies"), each with offices at c/o I.C.H. Corporation, 9255 Towne
Centre Drive, Suite 600, San Diego, California 92121 and Robert H. Drechsler,
an individual residing at 15 Deer Run, Rye Brook, New York 10573  (the
"Executive").

             Whereas, Executive has served as Executive Vice
President – Acquisitions & Capital Markets and Corporate Counsel and in
similar capacities for each of the other Companies pursuant to his prior
employment agreement with ICH and the other Companies dated as of September 1,
1999 (the "Prior Agreement") and through such service, has acquired
special and unique knowledge, abilities and expertise; and

             Whereas, ICH desires to employ Executive as its
Co-Chief Executive Officer and to have Executive serve as Co-Chairman of the
Board of Directors of ICH (the "ICH Board") and the other Companies
desire to employ Executive in similar capacities and the Companies desire to
employ Executive in such capacities with any future subsidiaries of the
Companies and wish to be assured of his continued services on the terms and
conditions hereinafter set forth; and

             Whereas, Executive desires to be employed by ICH
as its Co-Chief Executive Officer and to serve as Co-Chairman of the ICH Board,
and by the other Companies and any future subsidiaries of the Companies in
similar capacities and to perform and to serve the Companies on the terms and
conditions hereinafter set forth.

             Now, Therefore, in consideration of the premises
and of the mutual promises, agreements and covenants set forth herein, the
parties hereto agree as follows:

             1.          Employment.

                           (a)         Duties.  The Companies hereby agree to employ
Executive, and Executive hereby accepts such employment as the Co-Chief
Executive Officer of ICH and agrees to serve as Co-Chairman of the ICH Board
and as Co-Chief Executive Officer and Co-Chairman of the Board of Directors of
each of the other Companies.  In his
role as Co-Chief Executive Officer of ICH and the other Companies, Executive shall
be responsible for duties of a supervisory or managerial nature as may be
directed from time to time by the ICH Board and each other respective Board of
Directors, provided, that such duties are reasonable and customary for an
Co-Chief Executive Officer.  Executive
agrees that he shall, during the term of this Agreement, except during
reasonable vacation periods, periods of illness and the like, devote
substantially all his business time, attention and ability to his duties and
responsibilities hereunder; provided, however, that nothing
contained herein shall be construed to prohibit or restrict Executive from (i)
serving as a director of any corporation, with or without compensation
therefor; (ii) serving in various capacities in community, civic, religious or
charitable organizations or trade associations or leagues; or (iii) attending
to personal business; provided, however,  that no such service or activity permitted
in this Section 1(a) shall materially interfere with the performance by
Executive of his duties hereunder. 
Executive shall report directly to the ICH Board and each other Board of
Directors.

                           (b)        Term.

                                        (i)          Except as otherwise provided in this
Agreement to the contrary, the terms and conditions of this Agreement shall be
and remain in effect during the period of employment (the "Employment
Period") established under this Section 1(b).  The initial Employment Period shall be for a term commencing on
the date of this Agreement and ending on the third anniversary of the date of
this Agreement; provided, however, that commencing on the first day after the
date of this Agreement and on each day thereafter, the Employment Period shall
be extended for one additional day so that a constant three (3) year Employment
Period shall be in effect, unless (A) ICH (on its behalf and on behalf of the
other Companies) or Executive elects not to extend the term of this Agreement
by giving written notice to the other party in accordance with Sections 4(b)
and 11 hereof, in which case, the term of this Agreement shall become fixed and
shall end on the third anniversary of the date of such written notice
("Notice of Non-Renewal"), or (B) Executive’s employment terminates
hereunder.

                                        (ii)         Notwithstanding anything contained
herein to the contrary, (A) Executive’s employment with the Companies may be
terminated by ICH (on its behalf and on behalf of the other Companies) or
Executive during the Employment Period, subject to the terms and conditions of
this Agreement; and (B) nothing in this Agreement shall mandate or prohibit a
continuation of Executive’s employment following the expiration of the
Employment Period upon such terms and conditions as the ICH Board and Executive
may mutually agree.

                                        (iii)
       If Executive’s employment with the
Companies is terminated, for purposes of this Agreement, the term
"Unexpired Employment Period" shall mean the period commencing on the
date of such termination and ending on the last day of the Employment Period.

                           (c)         Location/Travel.  Executive shall work at ICH's offices in New
York, New York.  Executive shall not be
required to relocate from the New York City area during the Employment Period.

             2.          Compensation.  Subject to the provisions of Section 7
hereof, the Companies shall each be responsible and have joint and several liability
for all compensation and benefits owed to Executive under this Agreement.  A reference to an ICH plan, program,
obligation or commitment shall also be considered an obligation or commitment
of each of the other Companies but shall not result in duplicate benefits being
paid or provided to Executive.

                           (a)         Salary.  Executive shall receive an annual base
salary of Three Hundred Thousand Dollars ($300,000).  The annual base salary payable to Executive pursuant to this
Section 2(a), which may be increased but not decreased by the ICH Board or the
Compensation Committee of the ICH Board, shall be hereinafter referred to as
the "Annual Base Salary" (it being understood that if and when such
Annual Base Salary is increased, it may not be subsequently decreased below
such new Annual Base Salary).

                           (b)        Annual Bonus.

                                        (i)
         Executive shall be entitled to
receive an annual cash bonus, hereinafter referred to as the "Annual
Bonus," based upon the performance of ICH and Executive as determined by
the ICH Board.  The target Annual Bonus
payable to Executive for each fiscal year shall be an amount equal to at least
forty percent (40%) of Executive’s Annual Base Salary for such year.

                                        (ii)         Executive’s Annual Bonus shall be paid
to Executive no later than forty five (45) days following the end of the period
for which the bonus is being paid.

                           (c)         Reimbursement of Business Expenses.  ICH shall reimburse Executive for all
reasonable out-of-pocket expenses incurred by him during the Employment Period,
including, but not limited to, all reasonable travel and entertainment
expenses.  Executive may only obtain
reimbursement under this Section 2(c) upon submission of such receipts and
records as may be required under the reimbursement policies established by ICH.

                           (d)        Additional Benefits; General Rights.  During the Employment Period, Executive
shall be entitled to:

                                        (i)          participate in all employee stock
option, pension, savings, and other similar benefit plans of ICH and/or such
other plans or programs of the other Companies as ICH may designate from time
to time;

                                        (ii)
        participate in all welfare plans
established by ICH such as life insurance, medical, dental, disability, and
business travel accident plans and programs and/or such other plan or programs
of the other Companies as ICH may designate from time to time.  In addition, ICH shall reimburse Executive
for (i) any premium costs Executive may incur with respect to the health
insurance plan currently maintained by ICH (and which may be maintained by ICH
from time to time) in which Executive (and his spouse and children)
participates and (ii) for all other medical and dental expenses not covered by
any medical or dental plan in which Executive (and his spouse and children)
participates, including, without limitation, deductibles and out of pocket
expenses;

                                        (iii)        reimbursement from ICH for any premium
costs associated with the life insurance policy in the face amount of Two
Million Dollars ($2,000,000) issued by Security Connecticut Life Insurance
Company and currently owned by Executive; provided, that such reimbursement
shall not exceed Seventy-Five Hundred Dollars ($7,500) per year;

                                        (iv)
      a minimum Four Hundred Dollars
($400) per month parking/transportation allowance;

                                        (v)        four (4) weeks paid vacation per year;
and

                                        (vi)       any other benefits provided by ICH to its
executive officers.

                           (e)         One Time Cash Bonus.  ICH has paid to Executive on January 1, 2000
a one time cash bonus in an amount equal to $35,004.38 that enabled Executive
to exercise 6,223 of the vested option shares granted to Executive on February
15, 1999.  In addition to the aforesaid
cash bonus payment, ICH shall pay Executive, on or prior to April 15th
of the next following calendar year, a cash payment in an amount equal to
thirty percent (30%) of Executive's taxable income resulting from the payment
of the aforesaid cash bonus.

                           (f)         Withholding.  ICH and/or the other Companies, as the case
may be, shall deduct from all compensation paid to Executive under this
Agreement, any Federal, State or city withholding taxes, social security
contributions and any other amounts which may be required to be deducted or
withheld by the Companies pursuant to Federal, State or city laws, rules or
regulations.

             3.          Option Grant.

                           (a)         (i)          Executive
has received options issued pursuant to ICH’s 1997 Employee Stock Option Plan,
as amended (the "Stock Option Plan") as follows:

 

	Herein
  Referred To As	Grant
  Date	 	Number
  of Shares Granted	 	Exercise
  Price/Share ($)	 	Vesting	 
	1999 Options	February 15, 1999	 	60,000	 	5.625	 	10,000 shares on
  February 15, 1999, 20,000 shares on each of January 1, 2000 and January 1,
  2001 and 10,000 on January 1, 2002	 
	 	May 7, 1999	 	35,000	 	12.25	 	25% installments on
  May 7, 1999, January 1, 2000, January 1, 2001 and January 1, 2002	 
	2000 Options	June 29, 2000	 	35,000	 	5.06	 	50% on the grant date,
  25% installments on January 1, 2001 and January 1, 2002	 

The terms and conditions of each option
grant set forth above are memorialized in 
written option grant agreements between ICH and Executive dated the
dates thereof.  Such 1999 Options, 2000
Options plus any additional options granted to Executive in the future
(collectively referred to herein as the "Options") shall expire on the
tenth anniversary of each respective grant date.

                                        (ii)         The Options were and are intended to
qualify as incentive stock options within the meaning of Section 422(b) of the
Internal Revenue Code of 1986, as amended (the "Code"); provided,
however, that to the extent that any Options do not satisfy the requirements
of Section 422(b) of the Code either at the time of grant or before or after
exercise, including, without limitation, upon disposition of the underlying
stock acquired by the exercise of Options prior to the requisite holding
period, they shall be treated as non-qualified stock options.

                           (b)        In the event that Executive incurs
taxable income as a result of any or all of his Options being treated as
non-qualified options (i.e. Options have been exercised and the
requirements of Section 422(b) of the Code have not been or are no longer met)
(the "Taxable Event") as soon as practicable after a determination by
ICH and Executive that the Options are non-qualified and a Taxable Event has
occurred, ICH shall make an additional single sum cash payment to Executive in
an amount equal to thirty percent (30%) of Executive’s taxable income resulting
from the Taxable Event.  Such payment
shall only be made in the event Executive’s employment with ICH has not
terminated for Cause within the meaning of Section 4(a)(i) of this Agreement.

                           (c)
        Notwithstanding any provisions in
an Option grant agreement to the contrary, upon termination of his employment
for any reason, Executive shall have the right to exercise his Options at any
time through the tenth anniversary of the grant date of such Options.  Executive understands that the effect of
exercising any incentive stock options on a day that is more than ninety (90)
days after the date of termination of employment (or, in the case of a
termination of employment on account of death or disability, on a day that is
more than one (1) year after the date of such termination) shall be to cause
such incentive stock options to be treated as non-qualified stock options.

                           (d)        In the event ICH issues additional
shares of Common Stock and/or any class of stock convertible into Common Stock
and/or any other security convertible into Common Stock (including, without
limitation, options and warrants which may be granted to individuals or
entities other than employees and directors but excluding (i) the exercise of
any currently outstanding options or warrants, (ii) any future grants of
options, but only to the extent such grants relate to shares of Common Stock
currently authorized to be granted under the Stock Option Plan or the ICH 1997
Director Stock Option Plan (collectively, the "Option Plans") (i.e.
any options that may be granted by virtue of an increase in the number of
shares of Common Stock currently authorized under the Option Plans shall not be
excluded) and (iii) the exercise of any of such options) at any time during the
Employment Period and prior to Executive’s termination of employment and in
connection with a public or private equity offering or in connection with an
acquisition (the "Issuance"), Executive shall be granted additional
stock options and/or provided with a loan to purchase Common Stock, as
determined by the ICH Board, in an amount equal to three and one-half percent
(3.5%) of the number of shares issued pursuant to such Issuance.  The foregoing notwithstanding, in the event
ICH repurchases any shares of Common Stock, stock convertible into shares of
Common Stock and/or any other security convertible into shares of Common Stock,
the anti-dilution provisions set forth in this Section 3(d) shall not apply until
an equal number of such shares of Common Stock, stock convertible into shares
of Common Stock and/or other securities convertible into shares of Common Stock
are first reissued by ICH.  In addition,
equitable adjustments shall be made to such anti-dilution provisions in the
event ICH effectuates a stock split, reverse stock split, stock dividend or
other recapitalization transaction.

                           (e)         To the extent any Options are not
vested upon a "Change in Control" of ICH, such unvested Options shall
become fully vested and immediately exercisable upon a "Change in
Control" of ICH (whether or not such Change in Control is approved of by
the Continuing Directors of ICH (as defined in the Rights Agreement between ICH
and Mid-America Bank of Louisville and Trust Company dated as of February 19,
1997 and amended as of February 10, 1998)). 
A "Change in Control" of ICH shall be deemed to have occurred
upon the happening of any of the following events:

(i)  approval by the ICH Board or stockholders of
ICH of a transaction that would result in the reorganization, merger, or
consolidation of ICH with one or more other "Persons" within the
meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934
("Exchange Act"), other than a transaction following which:

(A)  at least seventy-one percent (71%) of the
equity ownership interests of the entity resulting from such transaction are
beneficially owned (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) in substantially the same relative proportions by Persons who,
immediately prior to such transaction, beneficially owned (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) at least seventy-one percent
(71%) of the outstanding equity ownership interests in ICH; and

(B)  at least seventy-one percent (71%) of the
securities entitled to vote generally in the election of directors of the
entity resulting from such transaction are beneficially owned (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the
same relative proportions by Persons who, immediately prior to such
transaction, beneficially owned (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) at least seventy-one percent (71%) of the securities
entitled to vote generally in the election of directors of ICH;

(ii)  the acquisition of all or substantially all
of the assets of ICH;

(iii)  a complete liquidation or dissolution of
ICH, or approval by the stockholders of ICH of a plan for such liquidation or
dissolution;

(iv)  the occurrence of any event in the nature of
an event described in this Section 3(e) if, immediately following such event,
at least seventy-five percent (75%) of the members of the ICH Board do not
belong to any of the following groups:

(A)  individuals who were members of the ICH
Board on the date of this Agreement; or

(B)  individuals who first became members of the
ICH Board after the date of this Agreement either:

(I)  upon election to serve as a member of the
ICH Board by affirmative vote of three-quarters of the members of such ICH
Board, or of a nominating committee thereof, in office at the time of such
first election; or

(II)  upon election by the stockholders of ICH to
serve as a member of the ICH Board, but only if nominated for election by affirmative
vote of three-quarters of the members of the ICH Board, or of a nominating
committee thereof, in office at the time of such first nomination; provided,
however, that such individual's election or nomination did not result from an
actual or threatened election contest (within the meaning of Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents (within the meaning of Rule
14a-11 of Regulation 14A promulgated under the Exchange Act) other than by or
on behalf of the ICH Board.

(v)  in a single transaction or a series of
related transactions, one or more other Persons, other than an employee benefit
plan sponsored by ICH, becomes the "beneficial owner," as such term
is used in Section 13 of the Exchange Act, of shares of Common Stock of ICH
(including newly issued shares) which equal thirty percent (30%) or more of the
issued and outstanding shares of Common Stock of ICH prior to such person or
persons becoming such a "beneficial owner."

                           (f)         In the event of a conflict between the
terms of any Option grant agreement or the Stock Option Plan and this
Agreement, the terms of this Agreement shall control.

4.          Termination of Employment; Events
of Termination.

                           (a)         Executive’s employment hereunder may be
terminated during the Employment Period under the following circumstances:

(i)  Cause.  Executive’s employment hereunder shall terminate for
"Cause" ten days after the date ICH shall have given Executive notice
of the termination of his employment for "Cause".  For purposes of this Agreement,
"Cause" shall mean (A) the commission by Executive of fraud,
embezzlement or an act of serious, criminal moral turpitude against any of the
Companies; (B) the commission of an act by Executive constituting material
financial dishonesty against any of the Companies; or (C) Executive's gross
neglect in carrying out his material duties and responsibilities under this
Agreement which has a material adverse effect on any of the Companies and which
is not cured within thirty (30) days subsequent to written notice from ICH to
Executive of such breach.

(ii)  Death.  Executive’s employment hereunder shall terminate upon his death.

(iii)  Disability.  Executive’s employment hereunder shall terminate ten days after
the date on which ICH shall have given Executive notice of the termination of
his employment by reason of his physical or mental incapacity or disability on
a permanent basis.  For purposes of this
Agreement, Executive shall be deemed to be physically or mentally incapacitated
or disabled on a permanent basis if the ICH Board determines he is unable to
perform his duties hereunder for a period exceeding six (6) months in any
twelve (12) month period.

(iv)  Good Reason.  Executive shall have the right to terminate
his employment for "Good Reason." 
This Agreement shall terminate effective immediately on the date
Executive shall have given the ICH Board notice of the termination of his
employment with ICH for "Good Reason."  For purposes of this Agreement, "Good Reason" shall
mean (A) any material and substantial breach of this Agreement by any of the
Companies, (B) a diminution of Executive’s responsibilities, loss of title or
position in which Executive currently serves, failure to reelect Executive to
the ICH Board or the Board of Directors of any of the other Companies or
reappoint Executive Co-Chairman of the ICH Board or Co-Chairman of the Board of
Directors of any of the other Companies, but not including the loss of
responsibilities and title associated with any of the Companies other than ICH
upon the sale of the stock or substantially all of the assets of such other
Company, (C) a Change in Control occurs and Executive voluntarily quits at any
time within the six (6) month period on or immediately following the Change in
Control, (D) ICH issues a Notice of Non-Renewal to Executive, (E) a reduction
in Executive’s Annual Base Salary or a material reduction in other benefits
(except for bonuses or similar discretionary payments) as in effect at the time
in question, or any other failure by the Companies to comply with Sections 2
and 3, hereof, (F) the relocation of Executive’s office outside the New York
City area, or (G) this Agreement is not assumed by a successor to ICH.

(v)  Without Cause.  ICH shall have the right to terminate
Executive’s employment hereunder without Cause subject to the terms and
conditions of this Agreement.  In such
event, this Agreement shall terminate, effective immediately upon the date on
which ICH shall have given Executive notice of the termination of his
employment for reasons other than for Cause or due to Executive’s Disability.

(vi)  Without Good Reason.  Executive shall have the right to terminate
his employment hereunder without Good Reason subject to the terms and conditions
of this Agreement.  This Agreement shall
terminate, effective immediately upon the date as of which Executive shall have
given the ICH Board notice of the termination of his employment without Good
Reason.

                           (b)        Notice of Termination.  Any termination of Executive's employment by
ICH or any such termination by Executive (other than on account of death) shall
be communicated by written Notice of Termination to the other party
hereto.  For purposes of this Agreement,
a "Notice of Termination" shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of Executive's employment under the provision so
indicated.  In the event of the
termination of Executive’s employment on account of death, written Notice of
Termination shall be deemed to have been provided on the date of death.

             5.          Payments Upon Termination.

                           (a)         Without Cause, for Good Reason,
Death or Disability.  If Executive's
employment is terminated by ICH without Cause (pursuant to Section 4(a)(v)), by
Executive for Good Reason (pursuant to Section 4(a)(iv)), due to death of
Executive (pursuant to Section 4(a)(ii)), or by ICH due to Executive’s
Disability (pursuant to Section 4(a)(iii)), Executive, or in the case of
Executive’s Death or Disability, Executive’s legal representative estate or
beneficiaries, as the case may be, shall be entitled to receive from ICH (i) a
lump sum payment in an aggregate amount equal to three (3) times the sum of (A)
then current Annual Base Salary and (B) the average of all bonuses, including,
without limitation, Executive's Annual Bonus, earned by or paid to Executive
during the two (2) immediately preceding full fiscal years of employment ending
prior to the date of termination (the "Severance Payment"); (ii) any
bonuses which have been earned but not been paid prior to such termination
("Prior Bonus Payment") and (iii) reimbursement of expenses incurred
prior to date of termination (the "Expense Reimbursement").  The aforesaid amounts shall be payable in
cash without discount for early payment, at the option of Executive, either in
full immediately upon such termination or monthly over the Unexpired Employment
Period (the "Payment Election"). 
In addition, (x) Executive's fringe benefits specified in Section 2
shall continue through the end of the Unexpired Employment Period, provided,
however, that such benefits which may not continue pursuant to law, such as
participation in a qualified pension plan, shall terminate on the date of
termination and further provided, that Executive shall be entitled to COBRA
continuation coverage and to continue the applicable life insurance policies
thereafter, at his cost ("Fringe Benefit Continuation); and (y) all
outstanding Options which are not vested as of the date of termination, if any,
shall upon such date of termination vest and become immediately exercisable in
accordance with the terms of the Option grant agreements and this Agreement
("Vested Options").

                           In
the event Executive terminates his employment within the six month period on or
immediately following a Change in Control which constitutes a termination for
Good Reason under this Agreement pursuant to Section 4(a)(iv)(C), Executive
shall be entitled to receive from ICH an additional lump sum cash payment in an
amount sufficient to pay any excise taxes which may be imposed on Executive
pursuant to Section 4999 of the Code (or any successor provisions) plus any excise
or income tax liability on the gross up payment itself so that on a net after
tax basis Executive shall be in the same position as if the excise tax under
Section 4999 of the Code (or any successor provisions) had not been imposed.

                           In
the event Executive is terminated by ICH without Cause or due to Executive’s
Disability, or Executive terminates his employment with ICH for Good Reason,
Executive shall have no duty to mitigate the amount of the payment received
pursuant to this Section 5(a), it being understood that Executive's acceptance
of other employment shall not reduce ICH’s or the other Companies’ obligations
hereunder.

                           (b)        Termination With Cause or Voluntary
Quit.  If ICH terminates Executive's
employment for Cause (pursuant to Section 4(a)(i)) or in the event Executive
voluntarily terminates his employment without Good Reason (pursuant to Section
4(a)(vi)) ("Voluntary Quit"), Executive shall be entitled to his
Annual Base Salary through the date of the termination of such employment and
Executive shall be entitled to any bonuses which have been earned but not paid
prior to such termination.  Executive
shall not be entitled to any other bonuses. 
Executive's additional benefits specified in Section 2 shall terminate
at the time of such termination. 
Additionally, Executive shall be entitled to all Options that have
vested as of the date of such termination. 
All outstanding Options, if any, which have not vested, as of the date
of such termination shall be forfeited, and if the termination is for Cause, no
further payments pursuant to Section 3(b) shall be made to Executive.

                           (c)         Termination by ICH Upon Change in
Control.  If ICH terminates
Executive’s employment for any reason in connection with a Change in Control
which is not approved by the Continuing Directors of ICH, Executive shall
receive from ICH in one lump sum, payable on the consummation of the Change in
Control an amount equal to the Severance Payment, the Prior Bonus Payment and
the Expense Reimbursement.  The
aforesaid amount shall be payable in cash without discount for early payment on
the consummation of such Change in Control. 
Executive shall be entitled to his Vested Options and Executive (and his
spouse and children) shall be entitled to Fringe Benefit Continuation.  In addition to the aforesaid cash payment,
ICH shall pay Executive, on the consummation of the Change in Control, in one
lump sum, a cash payment  in an amount
sufficient to pay any excise taxes which may be imposed on Executive pursuant
to Section 4999 of the Code (or any successor provisions) plus any excise or
income tax liability on the gross up payment itself so that on a net after tax
basis Executive shall be the same as if the excise tax under Section 4999 of
the Code (or any successor provisions) had not been imposed.

                           In
the event Executive is terminated by ICH in connection with a Change in Control
which is not approved by the Continuing Directors of ICH, Executive shall have
no duty to mitigate the amount of the payment received pursuant to this Section
5(c), it being understood that Executive's acceptance of other employment shall
not reduce the Companies obligations hereunder.

                           (d)        Vesting Trust.  At Executive’s option, the Companies shall
establish a vesting trust into which the Companies shall, to the extent
economically feasible, contribute and/or pledge assets to secure their
severance obligations to Executive under this Agreement.

             6.          Successors and Assigns.

                           (a)         This Agreement shall be binding upon
and inure to the benefit of ICH, its successors and assigns.  ICH shall require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all its assets to expressly assume and agree to perform this Agreement
in the same manner and to the same extent ICH would be required to perform if
no such succession had taken place.

                           (b)         Executive agrees that this Agreement is
personal to him and may not be assigned by him other than by the laws of
descent and distribution.  This
Agreement shall inure to the benefit of and be enforceable by Executive's legal
representative.

             7.          Joint and Several Liability.

                           (a)         No Duplication of Payments.  The Companies shall be jointly and severally
liable for any amounts payable to Executive under this Agreement.  Any amounts payable to Executive shall be
paid in the first instance by ICH, and to the extent not paid by ICH shall be
paid by the other Companies.  In no
event shall any amount payable pursuant to this Agreement be paid by ICH and
any other Company, or any two or more Companies and Executive shall not be
entitled to receive duplicate benefits or payments under any of the provisions
of this Agreement.

                           (b)        New Subsidiaries.  Any subsidiary of the Companies that is
formed or acquired on or after the date hereof shall be required to become a
signatory to this Agreement and shall become jointly and severally liable with
the Companies for the obligations hereunder.

                           (c)         Sale of Subsidiaries.  Upon the sale of the stock or substantially
all of the assets of any subsidiary of the Companies, which is approved by the
ICH Board, such subsidiary shall be automatically released from its obligations
hereunder and shall not be considered as having any continuing liability for
the obligations hereunder, and Executive shall be released from his obligations
to such subsidiary hereunder.

             8.          Governing Law.  This Agreement shall be construed in
accordance with, and its validity, interpretation, performance and enforcement
shall be governed by, the laws of the State of New York without regard to
conflicts of law principles thereof.
Each of the parties hereto hereby (a) irrevocably and unconditionally submits
to the non-exclusive jurisdiction of any New York State or Federal court
sitting in New York County, New York in any action or proceeding arising out of
or relating to this Agreement, (b) irrevocably waives, to the fullest extent it
may effectively do so, the defense of an inconvenient forum to the maintenance
of such action or proceeding, and (c) irrevocably and unconditionally consents
to the service of any and all process in any such action or proceeding by the
mailing of copies of such process by certified mail to such party and its
counsel at their respective addresses specified in Section 11 hereof.

             9.          Entire Agreement.

                          (a)         This instrument contains the entire understanding and
agreement among the parties relating to the subject matter hereof, except as
otherwise referred to herein, and supersedes all other prior agreements and
undertakings, both written and oral, among the parties with respect to the
subject matter hereof.  The parties
recognize that the Prior Agreement has been amended and restated in its
entirety by this Agreement and the terms of the Prior Agreement are of no further
force and effect.

                           (b)        Neither this Agreement nor any
provisions hereof may be waived or modified, except by an agreement in writing
signed by the party(ies) against whom enforcement of any waiver or modification
is sought.

             10.        Provisions Severable.   In case any one or more of the provisions
of this Agreement shall be invalid, illegal or unenforceable in any respect, or
to any extent, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby.

             11.
       Notices.  Any notice required or permitted to be given
under the provisions of this Agreement shall be in writing and delivered by
courier or personal delivery, facsimile transmission (to be followed promptly
by written confirmation mailed by certified mail as provided below) or mailed
by certified mail, return receipt requested, postage prepaid, addressed as
follows:

             If
to ICH or any of the other Companies:

                           ICH
Corporation

                           9255 Towne
Centre Drive

                           Suite 600

                           San Diego,
California  92121

                           Attention:
Board of Directors

                           Facsimile
Number:  (858) 638-2083

             With
a copy to:

                           Christopher
J. Sues, Esq.

                           Pryor Cashman
Sherman & Flynn LLP

                           410 Park Avenue

                           New York, New
York 10022

                           Facsimile
Number:  (212) 326-0806

             If
to Executive:

                           Robert
H. Drechsler, Esq.

                           15 Deer Run

                           Rye Brook, New
York  10573

                           Facsimile
Number:  (914) 937-9675

If delivered personally, by courier or
facsimile transmission (confirmed as aforesaid and provided written
confirmation and receipt is obtained by the sender), the date on which a notice
is delivered or transmitted shall be the date on which such delivery is
made.  Notices given by mail as
aforesaid shall be effective and deemed received upon the date of actual
receipt or upon the third business day subsequent to deposit in the U.S. mail,
whichever is earlier.  Either party
hereto may change its or his address specified for notices herein by
designating a new address by notice in accordance with this Section 11.

             12.        Counterparts.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and both of which taken
together shall constitute one and the same agreement.

 

 

THE REMAINDER OF THIS PAGE IS
INTENTIONALLY LEFT BLANK.   

In Witness Whereof,
the Companies and Executive have executed this Agreement as of the date first
above written.

	EXECUTIVE	 	ICH
  CORPORATION
	 	 	 
	/s/ Rober H. Drechsler	 	/s/ John A. Bicks
	

	 	

	Robert
  H. Drechsler	 	Name:
  John A. Bicks
	 	 	Title:
  C+o-Chairman and CEO
	 	 	 
	 	 	 
	 	 	SYBRA,
  INC.
	 	 	 
	 	 	/s/ John A. Bicks
	 	 	

	 	 	Name:
  John A. Bicks
	 	 	Title:
  Co-Chairman and CEO
	 	 	 
	 	 	 
	 	 	LYON’S
  OF CALIFORNIA, INC.
	 	 	 
	 	 	/s/ John A. Bicks
	 	 	

	 	 	Name:
  John A. Bicks
	 	 	Title:
  Co-Chairman and CEO
	 	 	 
	 	 	 
	 	 	CARE
  FINANCIAL CORP.
	 	 	 
	 	 	/s/ John A. Bicks
	 	 	

	 	 	Name:
  John A. Bicks
	 	 	Title:
  Co-Chairman and CEOPrepared by MerrillDirect

 

 

 

PURCHASE AGREEMENT

Seller:  CSC of
Minnesota LLC, a Minnesota

Limited Liability Company

 

Buyer:  IRET
Properties, a North Dakota

Limited Partnership

 

Property:  Cold Spring
Center

4150 Second Street South

St. Cloud, MN

Date of Agreement: 
January  8, 2001

 

INDEX

	1.	Sale of Property
	 	 
	2.	Earnest Money
	 	 
	3.	Purchase Price and Payment
	 	 
	4.	Buyer’s Right to Terminate
	 	 
	5.	Title
  Examination
	 	 
	6.	Seller’s
  Representations and Warranties
	 	 
	7.	1031 Tax Free Exchange
	 	 
	8.	Buyer’s Conditions to
  Closing
	 	 
	9.	Closing
	 	 
	10.	Seller’s Closing Documents
	 	 
	11.	Buyer’s
  Closing Documents
	 	 
	12.	Prorations
	 	 
	13.	Operation Prior to Closing
	 	 
	14.	Damage
	 	 
	15.	Condemnation
	 	 
	16.	Remedies
	 	 
	17.	Broker’s
  Commission
	 	 
	18.	Mutual
  Indemnification
	 	 
	19.	Assignment
	 	 
	20.	Time
	 	 
	21.	Survival
	 	 
	22.	Notices
	 	 
	23.	Captions
	 	 
	24.	Entire
  Agreement
	 	 
	25.	Binding Effect
	 	 
	26.	Capitalized
  Terms
	 	 
	27.	Interpretation
	 	 
	28.	Severability
	 	 
	29.	Waiver of
  Benefits
	 	 
	30.	Controlling Law
	 	 
	31.	Certificate
  of Dates
	 	 
	32.	Counterparts

EXHIBITS

	Exhibit
  A-	Legal
  Description of Real Property
	 	 
	Exhibit B-	Escrow Instructions
	 	 
	Exhibit C-	Certificate
  of Dates

 

PURCHASE AGREEMENT

             THIS PURCHASE AGREEMENT (“Agreement”)
is entered into effective as of January 8, 2001, between CSC of Minnesota LLC,
a Minnesota Limited Liability Company (“Seller”) and  IRET Properties, a North Dakota Limited Partnership (“Buyer”).

WITNESSETH:

In
consideration of the covenants and provisions hereinafter set forth and other
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged,
Seller and Buyer agree as follows:

             1.          Sale of
Property. 
Subject to the terms and on the conditions hereinafter set forth, Seller
agrees to sell to Buyer, and Buyer agree to buy from Seller, the following
property (collectively, the “Property”):

(a)   Real Property. That certain property
known as Cold Spring Center located at 4150 Second Street South, St. Cloud, MN,
which is legally described on Exhibit A attached hereto (the “Land”)
together with (I) all buildings and improvements now located on the Land (the “Improvements”),
and (ii) all easements, interests, rights and privileges, benefiting or
appurtenant to the Land including, but not limited to, all rights, title and
interest of Seller in and to any land lying in the bed of any highway, street,
road or avenue or alley, existing or proposed, in front of or abutting o
adjoining the Land and all right, title and interest of Seller in and to any
unpaid award for the taking by eminent domain of any part of the Land or the
Improvements or for damage thereto by reason of a change of grade of any
highway, street, road, avenue or alley (collectively, the “Real Property”).

(b)  Personal Property.  All personal property owned by Seller and
located on said Real Property.

(c)   Warranties.  Seller’s interests in all warranties and guaranties given to,
assigned to or benefiting Seller of the Real Property with respect to the
acquisition, construction, design, use, operation, management or maintenance of
the Real Property (the “Warranties”).

(d)  Plans. 
Copies of the as-built blueprints, plans and specifications for the
Improvements to the extent in Seller’s possession (the “Plans”).

             Hereinafter, the Warranties and
Plans are collectively referred to as the “Operational Documents.”

             2.          Earnest
Money. 
If Buyer does not exercise Buyer’s right to terminate this Agreement
pursuant to Section 4, Buyer shall, within three (3) days after the Termination
Date, deliver One Hundred Thousand Dollars ($100,000.00) in U.S. Federal Funds
(the “Earnest
Money”) to Stewart Title Guarantee Company, c/o Carma Allen, 50
South Steele, Suite 600, Denver, CO 
80209, (303)331-0333 (the “Escrow Agent”), a Texas company.  Upon receipt of the Earnest Money, the
Escrow Agent shall deposit the Earnest Money into an interest bearing escrow
account, which shall be invested at Buyer’s direction.  Except as provided in Section 16, all
interest earned on the Earnest Money shall belong to the Buyer.  The Escrow Agent, shall acknowledge its
agreement to hold and deliver the Earnest Money in accordance with the terms of
this Agreement and the Letter of Instructions, a copy of which is attached
hereto as Exhibit B, by executing the Letter of Instructions and returning a
copy thereof to Seller and Buyer. 
FAILURE TO DEPOSIT THE EARNEST MONEY WITHIN THE STATED TIME SHALL
TERMINATE THIS AGREEMENT

             3.          Purchase
Price and Payment. 
The total purchase price (“Purchase Price”) to be paid by the Buyer
for the Property shall be Eight Million Two Hundred Fifty Thousand Dollars
($8,250,000).  The balance of the Purchase
Price shall be paid by Buyer in cash, certified funds or by wire transfer on
the Closing Date.  Said purchase price
shall be disbursed as provided in Paragraph 7 hereof to accomplish a tax free
exchange.

             4.          Buyer’s
Right to Terminate. 
Notwithstanding anything to the contrary which is contained in this
Agreement, Buyer shall have the right to terminate this Agreement, for any
reason, by delivering written notice thereof (the “Termination Notice”) to
Seller and to the Escrow Agent on or before February 16, 2001 ( the “Termination
Date”). If Buyer terminates this Agreement in accordance with this
Section, the Escrow Agent shall promptly return the Earnest Money and all
accrued interest thereon to Buyer, this Agreement shall be thereby terminated
and neither Seller nor Buyer shall have any further rights or obligations under
this Agreement except that Buyer shall have the right to recover any damages
that Buyer has sustained as a result of any breach by Seller of its
representations and warranties in this Agreement.

             5.          Title
Examination. 
Title Examination will be conducted as follows:

(a)         Title Evidence.  Within fifteen (15) days after the
Termination Date, Seller shall, at Buyer’s expense, furnish Buyer with the
following (collectively, the “Title Evidence”):

(i)          Title Insurance Commitment.  A commitment for an ALTA Owner’s policy of
title insurance for the Real Property dated subsequent to the date hereof which
shall be issued by the Escrow Agent (the “Commitment”).  The Commitment shall show all exceptions to title including, but
not limited to, all covenants, conditions, restrictions, reservations,
easements, rights, and rights-of-way, liens, and other matters of record, and
shall include proper searches for bankruptcies, judgments, and State and Federal
tax liens affecting the Real Property or Seller.

(ii)         Exception Documents.  Complete and legible copies of all documents
or instruments which are listed in the Commitment as affecting the Real
Property (the “Exception Documents”).

(iii)        Survey.  A survey of the Real Property (the “Survey”).

(iv)       UCC Searches.  A report of UCC Searches for any filings
against the Property made by a search firm acceptable to Buyer (the “UCC Search”).

(b)        Buyer’s
Objections.  Buyer shall be allowed
ten (10) days after receiving the last of the Title Evidence in which to notify
Seller in writing of any objections based on the form of or the matters
disclosed by the Title Evidence (“Objections”).  Buyer’s failure to make Objections within such time period will
constitute waiver of Objections.  Any
matter shown on such Title Evidence and not objected to by Buyer shall be a
“Permitted Exception” hereunder.  If
Seller notifies Buyer that Seller is unwilling to cure any Objections or if the
Objections are not cured within sixty (60) days after Buyer delivers written
notice of the Objections to Seller, Buyer will have the right to do any of the
following:

(i)          Waive the Objection and for each
Objection that relates to a judgment, mortgage, deed of trust or other lien
against the Real Property, reduce the amount of the Purchase Price to be paid
at Closing by the amount the Escrow Agent requires in order to resolve such
liens; or

(ii)         Terminate this Agreement by delivering
written notice thereof to Seller, whereupon the Escrow Agent shall immediately
return the Earnest Money and all accrued interest thereon to Buyer.

(c)         Warranty Deed.  At Closing, Seller shall convey good and
marketable title to the Property to Buyer by Warranty Deed subject only to any
Permitted Exceptions.

(e)         Title Policy.  Seller will, at Buyer’s expense, furnish to
Buyer at Closing a title policy (the “Title Policy”) or a suitably marked up
Commitment (the “Marked-Up Commitment”) signed by the Escrow Agent undertaking
to issue such a Title Policy with coverage limits equal to the Purchase Price
showing Buyer in fee title to the Real Property subject only to the Permitted
Exceptions.

             6.          Seller’s Representations and Warranties.  Seller represents and warrants to Buyer as
follows:

(a)         Authority.  This Agreement has been duly executed and
delivered; all of Seller’s Closing Documents to be signed by Seller will have
been duly executed and delivered at Closing; such execution, delivery and
performance by Seller does not conflict with or result in a violation of any
judgment, order, or decree of any court or arbiter to which Seller is a party
or by which it is bound; this Agreement and those of Seller’s Closing Documents
to be signed by Seller will contain the valid and binding obligations of
Seller, and be enforceable in accordance with their terms.

(b)        Contracts.  Seller has made available to Buyer a correct
and complete copy of each Contract (or a correct and complete description of
any oral Contract) affecting the operation and maintenance of the Real Property
and all amendments thereto.  The
Contracts are in full force and neither Seller, nor any other party to the
Contracts, is in default under the Contracts.

(c)         FIRPTA.  Seller is not a “foreign person”, “foreign
partnership”, “foreign trust”, or “foreign estate” as those terms are defined
in Section 1445 of the Internal Revenue Code.

IF
BUYER PURCHASES THE PROPERTY HEREUNDER AND CLOSES PURSUANT TO THE PROVISIONS
HEREOF, BUYER WILL HAVE HAD AMPLE OPPORTUNITY TO INSPECT AND EVALUATE THE
PHYSICAL CHARACTERISTICS, TITLE MATTER, ZONING, SURVEY QUESTIONS, ACCESS
ISSUES, SOIL CONDITIONS, ENVIRONMENTAL AND FINANCIAL CHARACTERISTICS OF THE
PROPERTY, AND WILL HAVE INDEPENDENTLY DETERMINED THAT THE PROPERTY IS
ACCEPTABLE IN ALL RESPECTS TO BUYER. 
BUYER FURTHER ACKNOWLEDGES AND AGREES THAT BUYER IS EXPERIENCED IN THE
ACQUISITION, DEVELOPMENT, LEASING, OWNERSHIP AND MANAGEMENT OF COMMERCIAL REAL
ESTATE; AND THAT TO THE EXTENT THAT BUYER’S OWN EXPERTISE OR EXPERIENCE WITH
RESPECT TO ANY ASPECT OF THE PROPERTY IS INSUFFICIENT TO ENABLE BUYER TO REACH
AN INFORMED CONCLUSION, BUYER WILL HAVE ENGAGED PRIOR TO THE CLOSING THE
SERVICES OF PERSONS QUALIFIED TO ADVISE BUYER WITH RESPECT TO SUCH
MATTERS.  ACCORDINGLY, BUYER
ACKNOWLEDGES AND AGREES THAT BUYER WILL BE PURCHASING AND ACCEPTING THE
PROPERTY ABSOLUTELY AND UNCONDITIONALLY “AS-IS” WITHOUT RELYING UPON ANY
REPRESENTATIONS OR WARRANTIES MADE BY SELLER OR AGENTS FOR SELLER.

             7.          Section
1031 Tax Free Exchange.  Buyer and its assigns intend to acquire the Property as
replacement property with the proceeds from like-kind real property pursuant to
Section 1031 of the Internal Revenue Code in accordance with the requirements
of said Section 1031 and the regulations thereunder.  Seller, without cost to it, agrees to cooperate with Seller in accomplishing
said exchange by executing all deeds and other documents reasonably required
for said purpose.

             8.          Buyer’s
Conditions to Closing. 
Buyer’s obligation to close on the purchase of the Property under this
Agreement is contingent upon the occurrence, performance or satisfaction (in
Buyer’s sole discretion) each of the following:

(a)         Title.  Seller must perform its obligation to convey
to Buyer good and marketable title to the Property and deliver the Title Policy
or the Marked-Up Commitment to Buyer at Closing in accordance with the
requirements of Section 5 above.

(b)        Performance of Seller’s Obligations.  Seller shall have performed all of Seller’s
obligations under this Agreement, including, but not limited to, the following:

(i)          Seller shall allow Buyer, and Buyer’s
agents, access to the Real Property without charge and at all reasonable times
for the purpose of Buyer’s investigation and testing the same.  Buyer shall pay all costs and expenses of
such investigation and testing and shall hold Seller and the Real Property
harmless for all costs and liabilities relating thereto (except for such costs
and liabilities that may arise in connection with the remediation of any
pre-existing hazardous waste or pollution problem that is discovered as a result
of such investigation and testing). 
Buyer shall further repair and restore any damage to the Real Property
caused by or occurring during Buyer’s testing and return the Real Property to
substantially the same condition as existed prior to such entry.

(ii)         Seller shall have delivered Seller’s
Closing Documents to Buyer in accordance with Section 9.  

             Any and all of the foregoing
conditions are for the sole benefit of Buyer and may be waived, in writing, by
Buyer.  If any of the foregoing
conditions are not fulfilled, this Agreement shall be null and void at Buyer’s
option, and the Earnest Money and all interest accrued thereon shall be
returned to Buyer.  Seller, however,
shall remain liable to Buyer for the breach of any representation or warranties
contained in Section 6 hereof.

             9.          Closing.  The closing of the purchase and sale
contemplated by this Agreement (the “Closing”) shall occur on the date
specified by Buyer which is at least thirty (30) days after the Termination
Date but, in any event, not later than September 1, 2001.  Any reference herein to the “Closing Date”
shall mean the actual date of Closing as described in this Section.  The Closing shall take place at the offices
of the Escrow Agent or at such other place as may be mutually agreed upon by
the parties hereto.  Seller agrees to
deliver possession of the Property to Buyer on the Closing Date.

             10.        Seller’s
Closing Documents. On the Closing Date, Seller shall execute
and/or deliver to Buyer the following (collectively, the “Seller’s Closing Documents”):

(a)         Deed and Bill of Sale.  A Warranty Deed conveying the Real Property
to Buyer subject only to those exceptions permitted under Subsection 4(c) and a
Bill of Sale conveying the Personal Property to Buyer.

(b)        Assignment of Warranties.  An Assignment of Warranties conveying the
Warranties to Buyer.

(c)         Title Policy.  The Title Policy or the Marked-Up Commitment
in the form specified in Section 5 of this Agreement.

(d)        FIRPTA Affidavit.  A non-foreign affidavit, properly executed
and in recordable form, containing such information as is required by IRC
Section 1445(b)(2) and its regulations.

(e)         Other Instruments.  All other instruments reasonably necessary
to close this Agreement which sellers customarily execute or obtain and which
are requested by the Escrow Agent, including, by way of example but not
limitation, closing statements, releases, affidavit of parties in possession,
and delivery of instruments required by the Escrow Agent as set forth in the
Commitment to satisfy all matters set forth in the requirements section
thereof.

             11.        Buyer’s
Closing Documents. 
On the Closing Date, Buyer will execute and/or deliver to Seller the
following (collectively, the “Buyer’s Closing Documents”):

(a)         Purchase Price.  The Purchase Price in cash, certified funds
or by wire transfer of U.S. Federal Funds.

(b)        Other Instruments.  All other instruments reasonably necessary
to close this Agreement which buyers customarily execute or obtain and which
are requested by the Escrow Agent, including, by way of example but not
limitation, closing statements.

             12.        Prorations.  Seller and Buyer agree to the following
prorations and allocation of costs regarding this Agreement:

(a)         Title and Closing Fee.  Buyer will pay all costs for preparing the
Commitment and the cost of the Title Policy. 
Seller and Buyer will each pay one-half of any reasonable and customary
closing fee or charge imposed by any closing agent designated by the Escrow
Agent.

(b)        Deed Tax.  Buyer shall pay all state deed tax or other
taxes which must be paid in order to record the Warranty Deed for the Real
Property.

(c)         Real Estate Taxes and Special Assessments.  Real estate taxes and special assessments
payable in the year Closing occurs shall be prorated by Seller and Buyer as of
the Closing Date based upon a calendar year. If the amount of such real estate
taxes and special assessments cannot be determined on the Closing Date, Seller
will deposit with the Escrow Agent from the Purchase Price, an amount equal to
100% of the most current estimate of such taxes, assuming for estimating
purposes that the Real Property will be fully assessed.  Such deposit will be held in escrow and all
interest earnings on such deposit to pay Seller’s share of the actual real estate
taxes and special assessments payable in the year Closing occurs.  Any excess of such deposit will be paid by
the Escrow Agent to Seller.  Seller will
pay any deficiency, when such real estate taxes and special assessments are
known.

(d)        Recording Cost.  Seller will pay the cost of all recording
necessary to place record title in the condition warranted and requested by
Buyer in this Agreement.  Buyer will pay
the cost of recording all other documents.

(e)         Operating Costs.  All operating costs of the Property, will be
allocated between Seller and Buyer as of the Closing Date, so that Seller pays
that part of the operating costs allocable to the period prior to the Closing
Date, and Buyer pays that part of the operating costs allocable to the period
from and after the Closing Date.

(f)         Attorneys’ Fees.  Each of the parties will pay its own
attorneys’ fees, except that a party defaulting under this Agreement or any
closing document will pay the reasonable attorneys’ fees and court costs
incurred by the non-defaulting party to enforce its rights regarding such
default.

             13.        Operation
Prior to Closing. 
During the period from the Effective Date to the Closing Date, Seller,
at Seller’s expense, will maintain the Property in its current condition
excepting only ordinary wear and tear and damage or loss thereto covered by
insurance.

             14.        Damage.  If, prior to the Closing Date, all or any
part of the Property is substantially damaged by fire, casualty, the elements
or any other cause, Seller shall immediately give Buyer written notice of such
fact and Buyer shall have the right (to be exercised within thirty (30) days
after receipt of Seller’s notice) to terminate this Agreement.  If this Agreement is so terminated, neither
party will have any further obligations under this Agreement and the Earnest
Money and all accrued interest thereon shall be refunded to Buyer.  If Buyer fails to terminate this Agreement
despite such damage, or if the Property is damaged but not substantially,
Seller shall promptly commence to repair such damage or destruction and return
the Property to its condition prior to such damage.  If such damage shall be completely repaired prior to Closing
Date, then there shall be no reduction in the Purchase Price and Seller shall
retain the proceeds of all insurance related to such damage.  If such damage shall not be completely
repaired prior to the Closing Date but Seller is diligently proceeding to
repair, then Seller shall complete the repair after the Closing Date and shall
be entitled to receive the proceeds of all insurance related to such damage
after repair is completed; provided, however, that Buyer shall have the right
to delay the Closing Date until the repair is completed.  If Seller fails to diligently proceed to
repair such damage, then Buyer shall have the right to require the Closing to
occur and the Purchase Price (specifically, first the cash portion thereof, if
applicable which is payable on the Closing Date) shall be reduced by the cost
of such repair (as estimated by Buyer’s contractor), or at Buyer’s option, the
Seller shall assign to Buyer all right to receive the proceeds of all insurance
related to such damage and the Purchase Price shall be reduced by the amount of
any deductibles on such insurance.  For
purposes of this Section, the words “substantially damaged” mean damage that
would cost $200,000 or more to repair.

             15.        Condemnation.  If, prior to the Closing Date, eminent
domain proceedings are commenced against all or any part of the Property,
Seller shall immediately give Buyer written notice of such fact and Buyer shall
have the right (to be exercised within thirty (30) days after receipt of
Seller’s notice) to terminate this Agreement. 
If this Agreement is so terminated, neither party will have further
obligations under this Agreement and the Earnest Money and all accrued interest
thereon shall be reduced by any condemnation awards paid to Seller prior to
Closing and Seller shall, at Closing, assign Buyer all of Seller’s right,
title, and interest in and to any award made or to be made in the condemnation
proceedings.  Prior to the Closing Date,
Seller shall not designate counsel, appear in, or otherwise act with respect to
the condemnation proceedings without Buyer’s prior written consent.

             16.        Remedies.  If Buyer defaults under this Agreement,
Seller shall have the right to terminate this Agreement by giving written
notice to Buyer.  If Buyer fails to cure
such default within the time period specified by law, this Agreement will
terminate.  Upon such termination the
Escrow Agent will deliver the Earnest Money and all accrued interest thereon to
Seller and Seller shall retain the same as liquidated damages, time being of
the essence of this Agreement.  The
termination of this Agreement and retention of such sums by Seller will be the
sole remedy available to Seller for such default by Buyer, and Buyer will not
be liable for damages or specific performance. 
If Seller defaults under this Agreement, Buyer shall have the right to
seek and recover damages from Seller for nonperformance or specific performance
of this Agreement.

             17.        Broker’s
Commission. Seller and Buyer represent and warrant to
each other that they have dealt with no other brokers, finders, or the like in
connection with this transaction other than Colliers Towle and Kami, Inc.,
whose fees shall be paid pursuant to an agreement attached hereto as Exhibit
D.  Seller and Buyer agree to indemnify
each other and to hold each other harmless against all claims, damages, costs
or expenses of or for any brokerage fees or commissions resulting from their
actions or agreements regarding the execution or performance of this Agreement,
and to pay all costs of defending any action or lawsuit brought to recover any
such fees or commissions incurred by the other party (including reasonable
attorneys’ fees) or in enforcing such right to indemnification.

             18.        Mutual
Indemnification.          Seller
and Buyer agree to indemnify each other against, and hold each other harmless
from, all liabilities (including reasonable attorneys’ fees in defending
against claims or in enforcing such right to indemnification) arising out of
the ownership, operation or maintenance of the Property for their respective
periods of ownership.  Such rights to
indemnification will not arise to the extent that (a) the party seeking
indemnification actually receives insurance proceeds or other cash payments
directly attributable to the liability in question (net cost of collection,
including reasonable attorneys’ fees), or (b) the claim for indemnification
arises out of the act or neglect of the party seeking indemnification.  If and to the extent that the indemnified
party has insurance coverage, or the right to make claim against any third
party for any amount to be indemnified against set forth above, the indemnified
party will, upon full performance by the indemnifying party or, if such rights
are not assignable, the indemnified party will diligently pursue such rights by
appropriate legal action or proceeding and assign the recovery and/or right of
recovery to the indemnifying party to the extent of the indemnification payment
made by such party.

             19.        Assignment.  Buyer shall have the right to assign its
rights hereunder.

             20.        Time.  Time is of the essence of this
Agreement.  Where any date or time
prescribed by this Agreement falls on a Saturday, Sunday, or statutory holiday,
such date or time shall automatically be extended to the next business day.

             21.        Survival.  All of the terms of this Agreement will
survive and be enforceable after the Closing and will not merge into the
Warranty Deed to be delivered by Seller to Buyer.

             22.        Notices.  Any notices required or permitted to be
delivered in connection with this Agreement must be in writing and may be given
by certified or registered mail, facsimile, hand delivery or by overnight
courier and shall be deemed to be received (a) if given by certified or
registered mail, three (3) days after when deposited in the United States mail,
postage prepaid, certified mail, return receipt requested, or (b) if given by
facsimile or hand delivery, when such notice is received by the party to whom
it is addressed, or (c) if given by an overnight courier or delivery service,
when delivered by such courier.  Notice
shall be sent to Seller or Buyer at the address or telecopy number set forth
below.  Any party shall have the right
to change its address by giving five (5) days written notice to the other
parties.

	 	If
  to Seller:	CSC
  of Minnesota LLC, a Minnesota
	 	Limited
  Liability Company
	 	c/o
  Duane Lund
	 	4150
  Olson Memorial Highway
	 	Golden
  Valley, MN  55422
	 	Phone:  (763) 398-1104
	 	Fax:  (763) 398-1101
	 	 
	 	If
  to Buyer:	IRET
  Properties
	 	ATTN:
  Thomas A. Wentz, Sr.
	 	12
  South Main
	 	Minot,
  North Dakota 58701
	 	Phone:
  (701) 837-4738
	 	Fax:
  (701) 838-7785

             23.        Captions.  The paragraph headings or captions appearing
in this Agreement have been inserted for convenience only, are not part of this
Agreement and are not to be considering in interpreting this Agreement.

             24.        Entire
Agreement:  Modification.  This written Agreement together with the
Exhibits attached hereto constitutes the complete agreement between the parties
and supersedes any prior or contemporaneous oral or written agreements between
the parties regarding the Property. 
There are no verbal agreements that change this Agreement and no waiver
of any of its terms will be effective unless in writing executed by the
parties.

             25.        Binding
Effect. 
This Agreement binds and benefits the parties and their successors and
assigns.

             26.        Capitalized
Terms. 
All capitalized terms shall have the meaning assigned to them in this Agreement.

             27.        Interpretation.  The parties acknowledge that each party and
its counsel have reviewed this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
any amendments or exhibits hereto.

             28.        Severability.  If any provision of this Agreement is held
to be illegal, invalid or unenforceable under present or future laws, such
provision shall be fully severable, and this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement, and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by
the illegal, invalid or unenforceable provision or by its severance from this
Agreement, provided that both parties may still effectively realize the
complete benefit of the transaction contemplated hereby.

             29.        Waiver of
Benefits. 
If any of the warranties, representations, covenants, agreements, or
conditions (individually and collectively the “Requirements”) required
herein are not true, correct, performed, satisfied or met, the party for whose
benefit the Requirements are intended may, at its sole election, waive any such
Requirements in which event this Agreement shall continue in full force and
effect.

             30.        Controlling
Law. 
This Agreement has been made under the laws of the State of Minnesota,
and such laws will control its interpretation.

             31.        Certificate
of Dates.  On
the Effective Date, Buyer shall fill in, execute and send two copies of the
Certificate of Dates that is attached hereto as Exhibit E to Seller.  Within five (5) days after Seller’s receipt
of the Certificates, Seller shall execute one of the Certificates and return it
to Buyer in order to confirm the parties agreement as to the actual dates of
the Effective Date, the Termination Date, and the Closing Date under this
Agreement.

             32.        Counterparts.  This Agreement may be executed in
counterparts, all of which together shall constitute one and the same
agreement.  This Agreement shall be
binding as long as all parties execute one (although not necessarily the same)
counterpart.  This Agreement may be
executed by facsimile signatures and each facsimile signature shall be binding
as if it were and original signature.

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

 

	SELLER:	 	BUYER:
	 	 	 
	CSC
  of Minnesota LLC, a Minnesota Limited Liability Company	 	IRET
  Properties, a North Dakota Limited Partnership, by
	 	 	IRET.
  Inc., its sole General Partner
	By:
  /s/ Duane H. Lund	 	 
	 	

	 	By
  /s/ Thomas A. Wentz, Sr.
	 	 	 	

	Its:  Manager	 	 
	 	

	 	Name:
  	Thomas
  A. Wentz, Sr.
	 	 	 	 	 
	 	 	 	Title:	President
	 	 	 	 	 
						

EXHIBIT A TO
THAT CERTAIN PURCHASE AGREEMENT

BETWEEN
CSC OF MINNESOTA LLC, A MINNESOTA LIMITED LIABILITY 

COMPANY, AS SELLER,

AND IRET PROPERTIES, A NORTH DAKOTA LIMITED

PARTNERSHIP, AS BUYER,

LEGAL
DESCRIPTION OF REAL PROPERTY:

(Attached as Appendix A)

Parcel
1:

Lots
2, 3 and 8 and the East half of Lots 4 and 7, Block 2, Highway Addition, except
the North 3 feet of said Lots 2, 3 and 4; and Lots 1, 2 and 3, Block 4, Highway
Addition Plat 2, Except the North 3 feet of said Lot 1;

Parcel
2:

Lot
5 and the West half of Lot 4, Block 2, Highway Addition Except:

	(1)	The
  South 10 feet of said Lot 5;
	 	 
	(2)	The
  South 10 feet of the West Half of said Lot 4:
	 	 
	(3)	That
  part of said Lot 5 and that part of the West half of said Lot 4 lying Northerly
  of the following described line: 
  Beginning at a point on the East line of the West Half of said Lot 4,
  distant 3 feet South of the North line of said Lot 4; thence Westerly and
  Parallel to the North line of said Lots 4 and 5 a distance of 176.41 feet;
  thence deflect left 45 degrees along a straight line to the West line of said
  Lot 5 and there terminating.

All
according to the plats thereof recorded in the Office of the County Recorder in
and for Stearns County Minnesota.

Abstract
Property

EXHIBIT B TO
THAT CERTAIN PURCHASE AGREEMENT

BETWEEN IRET PROPERTIES, AS SELLER,

AND CSC OF MINNESOTA LLC, AS BUYER

Stewart
Title Guaranty Company

50 South Steele, Suite 600

Denver, CO  80209

ATTN: Carma Allen

	RE:	Purchase
  Agreement between IRET Properties, as Seller, and CSC of Minnesota LLC, as
  Buyer (the “Purchase Agreement”).

 

Stewart
Title & Guarantee Company (“Escrow Agent”) has been appointed to serve
as the Escrow Agent under the above-referenced Purchase Agreement.  As Escrow Agent, you will be receiving and
holding the Earnest Money in accordance with the Purchase Agreement.  The purpose of this letter is to provide you
with joint direction from the Seller and Buyer, as defined in the Purchase
Agreement, as to disposition of the Earnest Money and all accrued interest
thereon.  You are authorized and
directed to disburse funds as follows:

	 	(i)	If
  Seller cancels the Purchase Agreement pursuant to its terms and provides you
  with a copy of a Notice of Cancellation, an Affidavit of Service that
  indicates that such Notice has been served upon Buyer and an Affidavit
  executed by the Seller to indicate that such Notice was given, then you shall
  promptly deliver the Earnest Money and all accrued interest thereon to Seller
  unless prior to such payment you receive a copy of a court order enjoining
  such cancellation; and
	 	 	 
	 	(ii)	If
  the purchase and sale of the Property closes, you will deliver the Earnest
  Money and all accrued interest thereon to Seller at Closing and such amounts
  shall be credited against the Purchase Price.

By
acceptance of this letter, the Escrow Agent has agreed to hold and deliver the
Earnest Money and all accrued interest thereon in accordance with the Purchase
Agreement and this letter on the understanding that the Escrow Agent shall not
be liable for any acts or omissions of any kind unless occasioned by its
negligence, misconduct or its failure to account for funds held on deposit.

Seller
and Buyer agree to hold the Escrow Agent harmless from any claims or damages
arising out of the performance of the Escrow Agent’s duties including court
costs and reasonable attorney’s fees incurred in connection therewith, except
for claims or damages with respect to or arising out the Escrow Agent’s
negligence, misconduct or failure to account for funds held on deposit.

	 	 	 	 	Very
  truly yours,	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	IRET
  Properties, by IRET, Inc.	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	 	

	 
	 	 	 	 	 	 
	 	 	 	 	Name:
  Thomas A. Wentz, Sr.	 
	 	 	 	 	 	 
	 	 	 	 	Title:
  President	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	CSC
  of Minnesota LLC	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	 	

	 
	 	 	 	 	Its:	 
	 	 	 	 	 	

	 
	 	 	 	 	 	 
	Agreed
  to on this 	 	 day of	 	 	 
	 	

	 	 	 	 
	 	,
  2001.	 	 	 	 
	

	 	 	 	 	 
	 	 	 	 	 	 
	Stewart
  Title & Guaranty Company	 	 	 	 	 
	 	 	 	 	 	 
	By:	 	 	 	 	 
	 	

	 	 	 	 	 
	Name:	 	 	 	 	 
	 	

	 	 	 	 
	 	 	 	 	 	 
	Title:	 	 	 	 	 
	 	

	 	 	 	 
																					

EXHIBIT C TO
THAT CERTAIN PURCHASE AGREEMENT

BETWEEN IRET PROPERTIES, AS BUYER,

AND CSC OF MINNESOTA LLC, AS SELLER

CERTIFICATE
OF DATES

             Seller and Buyer agree that the
following defined dates in the above-referenced Purchase Agreement shall mean,
unless delayed as provided therein, the dates specified as follows:

	 	1.	The
  Effective Date means 	 	,
  2001
	 	 	 	

	 
	 	 	 	 	 
	 	2.	Termination
  Date means February 16, 2001.	 	 
	 	 	 	 	 
	 	3.	The
  Closing Date means the date at least 30 days after the termination date as
  specified by Buyer, but not later than September 1, 2001.	 	 
								

	BUYER
	 
	IRET
  Properties, by IRET, Inc.
	 
	By:
	 	

	 
	Name:
  Thomas A. Wentz, Sr.
	 
	Title:
  President
	 
	 
	 
	SELLER
	 
	CSC
  of Minnesota LLC
	 
	By:
	 	

	Its:
  
	 	

477566_1

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