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                                                                  EXHIBIT 10. 17

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, dated March 1, 2003, is entered by and between
CHRONIMED INC., a Minnesota corporation (the "COMPANY"), and ANTHONY J. ZAPPA
(the "EMPLOYEE").

         1. ENGAGEMENT. The Company agrees to employ the Employee and the
Employee accepts such employment on the terms and conditions set forth in this
Agreement and, except to the extent superceded by this Agreement, subject to
those policies and procedures applying to the employees of the Company, as may
be amended from time to time. The Employee shall apply his best efforts and
devote substantially all of his time and attention to the Company's affairs.
Employee's title within the Company shall be Executive Vice President,
Operations. Employee shall perform those duties as may from time to time be
assigned to him consistent with the offices held by Employee.

         2. COMPENSATION. As consideration for the covenants and agreements
herein and Employee's services rendered, the Company shall provide Employee the
following compensation:

                  A. BASE SALARY. The Employee shall be paid an annual base
         salary of not less than $230,000.00 during the term of this Agreement,
         payable on the 15th and last day of each month by direct deposit to a
         bank account designated by Employee.

                  B. BONUS. The Employee shall participate in a Company
         management incentive compensation plan, commencing with a plan
         applicable to the Company's fiscal year beginning July 1, 2002, which
         is designed to offer employee the potential for an annual bonus
         targeted at 40% of base salary and up to 60% of base salary. Employee
         shall meet with the Company's Chief Executive Officer to establish
         qualitative and quantitative initiatives and objectives for the purpose
         of assessing the amount of bonus to be paid Employee at the end of the
         bonus period.

                  C. STOCK OPTIONS AND INCENTIVES. Employee shall be eligible to
         participate in annual stock options and incentives consistent with
         option and incentive plans made available to the management of the
         Company and pursuant to the Company's Board of Director's discretion.
         The terms of future stock options or incentives, including the number
         of shares available, exercise price, and vesting provisions shall be
         determined pursuant to each option or incentive agreement.

                  D. EMPLOYEE BENEFIT PLANS, INSURANCE, AND TIME-OFF. During the
         term of his employment, Employee shall be entitled to participate in
         any employee benefit plan or plans established and maintained by the
         Company for comparable employees, in accordance with the eligibility
         requirements and other terms and provisions of such plan or plans.
         Employee acknowledges and agrees that the Company is under no
         obligation to Employee to establish or maintain any employee benefit
         plan in which Employee may participate, and that the terms and
         provisions of any employee benefit plan of the Company are matters
         solely within the exclusive province of the Board of Directors.
         Employee shall be entitled to receive health, life, and disability
         insurance coverage on terms consistent with the Company's insurance
         offerings to comparable employees. Employee shall receive vacation and
         medical time-off pursuant to the Company's standard employee policies.

         3. TERM AND TERMINATION. The term of this Agreement shall commence on
February 1, 2003, and shall continue thereafter until terminated according to
this Section 3. This Agreement shall earlier terminate upon the occurrence of
any of the following:

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                  A. Written agreement of the parties to terminate;

                  B. Employee's death or Employee's eligibility for and receipt
         of long-term disability benefits under a Company sponsored plan of
         disability insurance;

                  C. Following 45 days written notice by one party to the other
         indicating the party's intention to terminate without cause; or

                  D. Termination by the Company for Cause. Cause shall be
         defined as (I) Employee's gross negligence or willful misconduct in the
         performance of Employee's duties; (II) the commission by Employee of
         any criminal act, act of fraud or dishonesty by Employee related to, or
         in connection with his employment by the Company, or conviction of a
         crime for which a sentence of more than 90 days incarceration may be
         imposed; or (III) Employee's persistent failure to meet the reasonable
         expectations of or duties consistent with the office held by Employee.

         4. SEVERANCE. In the event the Company terminates this Agreement
pursuant to Section 3C, the Company shall continue to pay Employee monthly
severance payments in an amount equal to what Employee would have received in
salary for twelve months following the date of termination, plus the average of
any incentive compensation paid or payable by the Company for the most recent
two fiscal years, payable according to the Company's ordinary incentive bonus
payment schedule. In addition to such salary and incentive compensation
payments, all unvested options held by Employee shall immediately vest on the
date of termination. Other than the severance payment identified herein, the
Company shall have no obligation past the date of termination to provide
Employee with employee benefits as identified in Section 2.D., except as may be
mandated by State or federal benefits contributions laws.

         5. COVENANT NOT TO COMPETE. Employee hereby covenants and agrees that
during the term of this Agreement and until the later of (I) one year following
termination of this Agreement or any renewal thereof, or (II) Employee's receipt
of the last of any severance payments to Employee under Section 4, Employee
shall not be engaged within the United States, either directly or indirectly, in
any manner or capacity, whether as an advisor, principal, agent, partner,
officer, director, employee, or otherwise, in any business or activity, or own
beneficially or of record five per cent (5%) or more of the outstanding stock of
any class of equity securities in any corporation, in competition with the
business then being conducted by the Company, its subsidiaries or affiliates,
which business includes but may not be limited to the distribution of
medications for treatment of chronic illnesses, the management of chronic
disease states, and all research, analysis, and data services related to the
foregoing. Further, Employee will not for one year following termination of his
employment directly or indirectly attempt to hire away any then-current employee
of the Company, its subsidiaries or affiliates, or take any action to persuade
any such employee to leave employment with the Company, its subsidiaries or
affiliates.

         6. CONFIDENTIALITY. Employee will in the course of his employment with
the Company have access to confidential or proprietary data or information
belonging to the Company, its subsidiaries or affiliates. Employee will not at
any time divulge or communicate to any person (other than to a person bound by
confidentiality obligations to the Company similar to those contained in this
Agreement) or use to the detriment of the Company, its subsidiaries or
affiliates, or for the benefit of any other person Confidential or Proprietary
Data or Information. The provisions of this Section 6 shall survive Employees'
employment hereunder regardless of the cause of termination of employment or
this Agreement and shall remain intact for a period of three (3) years following
termination for any reason. "Confidential or Proprietary Data or Information"
shall mean information Employee learns or develops during the course of
employment that derives economic value by being not generally known or
ascertainable by others and includes, without limitation, financial information,
customer lists, supplier lists, trade secrets, secret processes, computer data
and programs, pricing, marketing, and advertising data, strategic or operational
plans, methods of research and testing, management systems and matters related
to sales and marketing techniques. Employee acknowledges and agrees that any
Confidential or Proprietary Data or Information that Employee has already
acquired was in fact received in confidence and in Employee's fiduciary

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capacity with respect to the Company.

         All written materials, records and documents made by Employee or coming
into Employee's possession during the term of employment concerning any product,
processes, information or services used, developed, investigated or considered
by the Company, its subsidiaries or affiliates, or otherwise concerning the
business or affairs of the Company, its subsidiaries or affiliates, shall be the
sole property of the Company and upon termination of Employee's employment for
any reason, or upon request of the Board of Directors during Employee's
employment, Employee shall promptly deliver the same to the Company. In
addition, upon termination of Employee's employment for any reason, or upon
request of the Board of Directors during Employee's employment, Employee shall
deliver to the Company all other property of the Company in Employee's
possession or under Employee's control including, but not limited to, financial
statements, marketing and sales data, computer hardware and software, and
Company credit cards.

         7. OTHER BUSINESS ACTIVITIES. Employee shall not serve as a director,
officer, employee, consultant, independent contractor or agent of another
company, whether for-profit, not-for-profit, charitable organization, foundation
or otherwise, during the term of this Agreement without the express prior
consent of the Company's Board of Directors.

         8. NOTICES. All notices, requests, demands and other communications
provided for by this Agreement shall be in writing and shall be deemed to have
been given when mailed at any general or branch United States Post Office
enclosed in a certified postpaid envelope, return receipt requested, and
addressed to the address of the respective party stated below or to such changed
address as the party may have fixed by notice:

                  If to the Employee:
                  Anthony J. Zappa
                  7110 W. 83rd St.
                  Bloomington, MN 55438

                  If to the Company:
                  Chronimed Inc.
                  10900 Red Circle Drive
                  Minnetonka, MN 55343
                  Attn: Chief Executive Officer

Any notice of change of address shall only be effective, however, when received.

         9. SUCCESSORS AND ASSIGNS. This Agreement shall inure to the benefit
of, and be binding upon, the Company, its successors and assigns, including,
without limitation, any corporation which may acquire all or substantially all
of the Company's assets and business or into which the Company may be
consolidated or merged, and the Employee, his heirs, executors, administrators
and legal representatives. The Employee may not assign his rights or obligations
under this Agreement without the prior consent of the Company. The Company may
assign this Agreement to any entity acquiring substantially all the assets or
business of the Company or any subsidiary entity of the Company to which
Employee is assigned, by way of purchase, merger, or otherwise.

         10. APPLICABLE LAW. This Agreement shall be governed by the laws of the
State of Minnesota.

         11. OTHER AGREEMENTS. This Agreement supersedes all prior
understandings and agreements between the parties. It may not be amended orally,
but only by a writing signed by the parties hereto.

         12. NON-WAIVER. No delay or failure by either party in exercising any
right under this Agreement, and no partial or single exercise of that right,
shall constitute a waiver of that or any other right.

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         13. HEADINGS. Headings in this Agreement are for convenience only and
shall not be used to interpret or construe its provisions.

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

         15. SEVERABILITY. If any provision of this Agreement is found to be
invalid, prohibited, or unenforceable, such provision shall be deemed modified
to the extent necessary to make it valid and enforceable or, if it cannot be
modified, then severed and the remainder of this Agreement shall remain in full
force and effect.

CHRONIMED INC.                                     EMPLOYEE

By /s/ Charles V. Owens, Jr.                /s/ Anthony J. Zappa
   ----------------------------             ---------------------------
Charles V. Owens, Jr.                       Anthony J. Zappa
Chairman,
Board Compensation Committee

                                      E-46<PAGE>
                                                                     EXHIBIT 4.1

                               VESTIN GROUP, INC.
                                 [COMPANY LOGO]

                                SUBORDINATED NOTE

NUMBER ______________________________  DATE ISSUED________________________

PRINCIPAL AMOUNT $___________________  TERM ______________________________

ANNUAL PERCENTAGE YIELD  _____%        MATURITY DATE _____________________

                            INTEREST COMPOUNDED DAILY

                            PAYABLE ________________

VESTIN GROUP, INC., a Delaware corporation herein called the Company, for value
received, hereby promises to pay to:

(the "Holder" or "Noteholder")

      Interest payments shall be made by check delivered by mail to the address
of the Holder appearing on the Note register maintained by the Registrar (which
address may be changed from time to time by notice given by Holder in writing to
the Registrar) on the Regular Record Date preceding the subject Payment Date;
principal and interest payment at the end of the term hereof shall also be made
by check delivered by mail to the address of the Holder appearing on the Note
register maintained by the Registrar, or in person to Holder at the offices or
agency of the Paying Agent, in exchange for this Note. Holder shall be notified
prior to such payment of the address at which such payment shall occur. The
Company is currently acting as Paying Agent and Registrar. The Company may
change the Registrar or Paying Agent without notice to the Noteholder.

      All payments hereunder shall be made in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

      All interest on the Notes will be compounded daily and computed on the
basis of a year of 360 days.

      This Note is being issued pursuant to an Indenture dated as of       ,
2003 ("Indenture") between the Company and U.S. Bank National Association

                                      -1-
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as Trustee and in connection with an offering by the Company of an aggregate of
$600,000,000 U.S. principal amount of unsecured, subordinated investment notes
("Notes") as described in the Company's Prospectus dated March 28, 2003, as
amended and supplemented from time to time, and a current interest rate
supplement thereto. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code ss.ss.77aaa-77bbbb) ("TIA"). The Notes are
subject to all such terms, and Holder is referred to the Indenture and such Act
for a statement of such terms. All capitalized terms not otherwise defined
herein shall have the meaning given to such terms in the Indenture.

      Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

      IN WITNESS WHEREOF, Vestin Group, Inc. has caused this Note to be signed
on the date first above written.

                      ISSUER:

                      VESTIN GROUP, INC.

(SEAL)                BY: ____________________________________

                      Attest: ________________________________
                              Officer of Company

                      COUNTERSIGNED AND REGISTERED BY
                      ________________________________________

                      ________________________________________

                      BY: ------------------------------------
                           Authorized Signature

                             [REVERSE SIDE OF NOTE]

      1. Subordination. The indebtedness evidenced by the Note shall be
postponed and subordinated and is subject in right of payment, to the extent and
in the manner set forth in the Indenture, to the prior payment in full of all
"Senior Debt" of the Company. "Senior Debt" means any indebtedness (whether
outstanding on the date of issuance of this Note or thereafter created) incurred
by the Company in connection with borrowings by the Company (including its
subsidiaries) whether such indebtedness is or is not specifically designated by
the Company as

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being "Senior Debt" in its defining instruments. The Company agrees, and Holder
by accepting this Note consents and agrees, to the subordination provided for in
the Indenture and authorizes the Trustee to give it effect.

      2. Subrogation. As more fully set forth in the Indenture, subject to the
payment in full of all Senior Debt of the Company, Holder shall be subrogated to
the rights of the holders of Senior Debt of the Company to receive payments or
distributions of assets of the Company made on the Senior Debt of the Company
until the principal of and interest on this Note shall be paid in full, and for
purposes of such subrogation, no such payment or distributions to the holders of
Senior Debt of the Company of cash, property or securities, which otherwise
would be payable or distributable to Holder, shall be between the Company, its
creditors other than the holders of Senior Debt of the Company, and Holder, be
deemed to be a payment by the Company to or on account of this Note, it being
understood that the provisions of this paragraph are intended solely for the
purpose of defining the relative rights of Holder, on the one hand, and the
holders of Senior Debt of the Company, on the other hand.

      3. Nonimpairment. Nothing contained in this Note is intended to or shall
impair, as between the Company, the Company's creditors other than the holders
of Senior Debt of the Company, and Holder, the obligation of the Company, which
is absolute and unconditional, to pay to Holder the principal of and interest on
this Note, as and when the same shall become due and payable in accordance with
its terms, and which, subject to the rights under Article 10 of the Indenture of
the holders of Senior Debt of the Company, is intended to rank equally with all
other general obligations of the Company. In addition, nothing contained in this
Note is intended to or shall affect the relative rights of Holder and creditors
of the Company other than the holders of Senior Debt of the Company, nor shall
anything herein or therein prevent the Holder of this Note from exercising all
remedies otherwise permitted by the Indenture and applicable law upon the
occurrence of an Event of Default, subject to the rights, if any, under Article
10 of the Indenture of the holders of Senior Debt of the Company in respect of
cash, property or securities of the Company received upon the exercise of any
such remedy.

      4. Redemption by the Company. The Company may not redeem, in whole or in
part, any Note prior to its stated maturity, except upon 90 days prior written
notice to the Holder thereof listed on the records maintained by the Company.

      5. Right of Set-Off In Certain Circumstances. Subject to the conditions of
applicable law, if the holder of the Note is a borrower or guarantor on a loan
made by the Company's subsidiaries which becomes delinquent, the Company
reserves the right to set-off principal and interest payments due on the debt
securities against such delinquent loans. This right to set-off payments due on
the debt securities is subject to the Holder's agreement with the set-off terms
at the time the loan is originated or the guarantee is entered into.

      6. Events of Default. An Event of Default is:

            (a) Default in the payment of any interest upon this Note when it
becomes due and payable and continuance of such default for a period of 30 days
(whether or not prohibited by the subordination provisions of the Indenture); or

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            (b) Default in the payment of principal of this Note when it becomes
due and payable at maturity (whether or not prohibited by the subordination
provisions of the Indenture) and continuance of such default for 30 days; or

            (c) Failure by the Company to comply with any of its agreements upon
a liquidation, consolidation, merger or transfer of substantially all of the
Company's assets (after notice and provided such default is not cured within 60
days after receipt of notice); or

            (d) Failure by the Company for 60 days after notice to comply with
any of its other agreements in the Indenture or this Note; or

            (e) Certain events of bankruptcy or insolvency (with respect to the
Company).

      If an Event of Default occurs and is continuing, the Trustee or the
holders of at least a majority in principal amount of the then outstanding Notes
may declare all the Notes to be due and payable immediately, except that in the
case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Notes become due and payable immediately without
further action or notice. Holders of Notes may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Notes. Subject to
certain limitations, holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or powers.
The Trustee may withhold from Noteholders notice of any continuing default
(except a default in payment of principal or interest) if it determines that
withholding notice would have no material adverse effect on the Noteholders. The
Company must furnish an annual compliance certificate to the Trustee.

      7. Transfer and Exchange. The transfer of Notes may be registered and
Notes may be exchanged as provided in the Indenture. This Note may not be
assigned, transferred or otherwise alienated without the prior written consent
of the Company (which consent shall not be unreasonably withheld) and shall be
subject to the Company's right to demand and receive an opinion of Holder's
legal counsel (which counsel shall be reasonably acceptable to the Company) that
the transfer does not violate any applicable securities laws. The Company may
also require a signature guarantee.

      8. Optional Extension of Term. The Company will provide each Holder of a
Note which matures prior to              , 2005, the option to renew the term of
the Note. The Company will provide written notification to such Holder of the
upcoming Maturity Date of the Note at approximately twenty (20) but not less
than fifteen (15) days prior to the Maturity Date. This renewal notice will
provide the Holder of an eligible Note with an option to renew the Note for an
identical or alternative term. The renewal notice will specify the new rate
applicable to the renewal term and will include a copy of the current supplement
to the prospectus, which lists all of the rates applicable to each term offered
at the Holder's Maturity Date in the event the Holder elects to select an
alternative term upon the maturity of the Note. The renewal notice will indicate
that the Holder should have previously received a copy of the updated
prospectus, if applicable, and where the Holder can get another copy of the
prospectus. To renew the Note, the Holder must return the renewal form included
in the renewal notice prior to the Note's maturity. Otherwise, the Company will
redeem the Note upon its maturity.

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      9. Persons Deemed Owners. The registered Holder of a Note may be treated
as its owner for all purposes.

      10. Amendments and Waivers. Subject to certain exceptions, the Indenture
or the Notes may be amended or supplemented and any existing Default under, or
compliance with any provision of, the Indenture may be waived with the written
consent of the Holders of at least a majority in principal amount of the Notes
then outstanding. Without the consent of any Holder, the Company and the Trustee
may amend or supplement the Indenture or the Notes to cure any ambiguity, defect
or inconsistency; to provide for assumption of the Company's obligations to
holders of the debt securities in the case of a merger or consolidation; to
provide for additional uncertificated Notes or certificated Notes (if
applicable); to make any change that would provide any additional rights or
benefits to the holders of the Notes or that does not adversely affect the legal
rights under the indenture of any such holder, including an increase in the
aggregate dollar amount of debt securities which may be outstanding under the
Indenture; to modify the Company's policy to permit redemptions of the Notes
upon the death or total permanent disability of any holder of the Notes (but
such modification shall not adversely affect any then outstanding security); to
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act; or to make any
other change that may be required, provided that such change does not have a
material adverse effect on the Noteholders.

      11. Trustee Dealings with Company. So long as done in accordance with the
TIA, the Trustee, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates,
and may otherwise deal with the Company or its Affiliates, as if it were not
Trustee.

      12. No Recourse Against Others. A director, officer, employee,
incorporator or stockholder, of the Company, as such, shall not have any
liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

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      13. Authentication. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

      The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:

                               VESTIN GROUP, INC.
                                 2901 EL CAMINO
                             LAS VEGAS, NEVADA 89102

                         -------------------------------

      The following abbreviations, when used in the inscription on the face of
the within Note, shall be construed as though they were written out in full
according to applicable laws or regulations.

TEN COM   -   tenants in common
TEN ENT   -   tenants by the entireties
JT TEN    -   joint tenants with right of survivorship and not as tenants in
              common

UNIF GIFT MIN ACT - __________  Custodian_________________
                      (Cust)             (Minor)
                    under Uniform Gifts/Transfers to Minors
                    Act______________________________
                                  (State)

      Additional abbreviations may also be used though not in the above list.

                         -------------------------------

      FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE:

---------------------------------------------------

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               (NAME AND ADDRESS OF ASSIGNEE, INCLUDING ZIP CODE,
                              MUST BE TYPEWRITTEN)

                                      -6-
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the within Note, and all rights thereunder, hereby irrevocably

--------------------------------------------------------------------------------
constitute and appoint

______________________________________________________________________ Attorney
to transfer said Note on the books of the Company, with full power of
substitution in the premises.

Dated:

                      -------------------------------------

NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without alteration
or enlargement, or any change whatever.

                                      -7-

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