Document:

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                                                                   EXHIBIT 10.25

                            CMC Heartland Partners
                          547 West Jackson Boulevard
                            Chicago, Illinois 60661

[date]

Mr. Edwin Jacobson
161 East Chicago Avenue
Apartment 43H
Chicago, Illinois 60611

          Re:  First Amendment to Employment Agreement

Dear Mr. Jacobson:

          We are writing with respect to your employment by CMC Heartland
Partners (the "Company") as President and Chief Executive Officer of the
Company, pursuant to an Employment Agreement, dated December 20, 1999 (the
"Employment Agreement"), the terms of which expire on May 30, 2002.  The Company
acknowledges and recognizes the value of your experience and abilities to the
Company and desires to amend the Employment Agreement as hereinafter set forth:

          Therefore, subject to your signing and returning to the Company, c/o
Richard P. Brandstatter, a duplicate original of this letter, effective as of
the date hereof, the Employment Agreement is amended in the following manner:

          1.  Section 1 and Section 7(d)(i) are hereby amended to delete the
date "May 30, 2002" and substitute therefor the date "May 30, 2005";

          2.  Section 3(a) is hereby amended to delete "$275,000" and substitute
therefor "$350,000";

          3.  Section 3(b)(ii)(1) is hereby deleted in its entirety and replaced
with the following Section 3(b)(ii)(1):

          "(ii)  (1)  The Capital Amount initially will be $26,789,044.75, which
          is equal to the product of (x) the average of the publicly reported
          per Unit closing sales prices for the first 30 trading days after the
          date the Units were distributed by Chicago Milwaukee Company ("CMC")
          to its common stockholders (the "Distribution Date") and (y) 2,142,438
          (the number of Units distributed on the Distribution Date).  For
          purposes of this subsection (ii), the "closing sales prices" of the
          Units as of a particular date shall mean the closing price (or, if
          there is no closing price, then the mean between the closing bid and
          asked prices), of such Unit as reported on the Composite Tape, or if
          not reported thereon, then such price as reported in the trading
          reports of the principal securities exchange in the United States on
          which such partnership interests are listed, or if the Units are not
          listed on a securities exchange in the United States, the mean between
          the dealer closing "bid" and "asked" prices as reported by the
          National Association of Securities Dealers Automated Quotation System
          ("NASDAQ") or NASDAQ's successor, or if not reported on NASDAQ, the
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          fair market value of such Unit as determined by the Board of Directors
          of the Managing General Partner in good faith."

          4.  Section 3(b)(ii)(2)(x)(ii) is hereby deleted in its entirety and
replaced with the following Section 3(b)(ii)(2)(x)(ii):

               "(ii) amounts paid by Heartland or the Company to repurchase
          Units and Class B limited partnership interests during such time
          period and"

          5.  Section 3(b) is amended by the addition of the following Section
3(b)(iii):

          "(iii)  In addition to the incentive payments that you will receive
     pursuant to Section 3(b)(i), effective for the period commencing January 1,
     2000 and continuing thereafter during the time you are an employee of the
     Company, you will also receive incentive payments equal to 1/2% override of
     net proceeds from sales of real estate (after deducting all debt
     obligations on the property sold, seller's sales closing costs (including,
     but not limited to title changes and transfer taxes) and any real estate
     broker's commissions, which incentive payment shall be paid on the 15/th/
     day of the following month in which the respective sale of the real estate
     occurred."

          6.  Section 3(b) is amended by the addition of the following Section
3(b)(iv):

          "(iv)  (1)  Upon your death, disability or termination without cause
          (as that term is defined in Section 6(c)), you, your designated
          beneficiary or estate upon written notice (the "Put Notice") delivered
          to the Company shall cause the Company to pay to you, your designated
          beneficiary or estate, as the case may be (collectively referred to as
          "Jacobson"), the then present value of your incentive payments under
          Section 3(b)(i) (the "Incentive Put"). In the event the Incentive Put
          is exercised by the Put Notice delivered to the Company, within 45
          days after receipt of the Put Notice, the Board of Directors of the
          Company shall, in good faith based upon the appraised value of the
          assets of the Company, make a determination as to the then present
          value of such incentive payments and prior to the expiration of the 45
          day period shall deliver to Jacobson a statement (the "Company
          Statement") setting forth the amount the Company proposes to pay to
          satisfy its obligation under the Incentive Put and a calculation on
          which the amount was determined.

                 (2) If Jacobson does not object in writing, delivered to the
          Company within 20 days after receipt of the Company Statement, the
          Company shall pay the incentive amount set forth in the Company
          Statement no later than six months following the date of receipt by
          the Company of the Put Notice.

                 (3) If prior to the expiration of the 20 day period Jacobson
          delivers to the Company written notice (the "Objecting Notice")
          objecting to the amount of the incentive payment set forth in the
          Company Statement, the Company and Jacobson shall negotiate in good
          faith to reach agreement on the amount of the incentive payment.  If
          during the 15 day period following receipt by the Company of the
          Objecting Notice, or such longer period as the Company and Jacobson
          agree in

                                      -2-
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          writing (the "Negotiating Period"), the Company and Jacobson reach
          agreement on the amount of the incentive payment, the Company shall
          pay the amount no later than six months following the date the Company
          received the Put Notice.

               (4) If during the Negotiating Period, the Company and Jacobson do
          not reach agreement on the amount of the incentive payment (the
          "Disagreement"), the Disagreement shall be submitted for resolution to
          an M.A.I. Appraiser selected by the Company and Jacobson.  If within
          10 days following the expiration of the Negotiating Period, the
          Company and Jacobson are not able to reach an agreement on the M.A.I.
          Appraiser to resolve the Disagreement, the Company and Jacobson within
          15 days following expiration of the Negotiating Period shall each
          select an M.A.I. Appraiser and the two M.A.I. Appraisers promptly
          after their selection shall each select a third M.A.I. Appraiser,
          which may not be the Company's M.A.I. Appraiser.  The third M.A.I.
          Appraiser prior to the expiration of sixty days after its selection
          shall make a determination as to the then present value of the
          incentive payment payable pursuant to the Incentive Put and shall
          deliver to the Company and Jacobson written notice of the amount
          determined (the "Resolution Notice").  The determination by the third
          M.A.I. Appraiser shall be binding on the Company and Jacobson and the
          Company shall pay the amount no later than the longer of (x) six
          months after the date the Company received the Put Notice or (y)
          thirty days after the Company received the Resolution Notice.  The
          fees and expenses of the M.A.I. Appraiser resolving the Disagreement
          shall be shared equally between the parties."

          Except as amended by this letter, the Employment Agreement remains in
full force and effect in accordance with its terms.

          If the foregoing is satisfactory, please indicate your agreement by
signing and returning to the Company the enclosed copy of this letter whereupon
this will constitute our agreement on the subject.

                                    CMC HEARTLAND PARTNERS

                                    By:  Heartland Technology, Inc.
                                         as General Managing Partner

                                    By:    ______________________________

                                    Name:  ______________________________

                                    Title: ______________________________

ACCEPTED AND AGREED TO:

______________________________
Edwin Jacobson

                                      -3-<PAGE>

                                                                   EXHIBIT 10.26

                   THE CMC HEARTLAND PARTNERS INCENTIVE PLAN

                           Effective January 1, 2000

          1.   Purpose.  The CMC Heartland Partners Incentive Plan (the "Plan")
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is intended to provide incentives which will attract, retain and motivate highly
competent persons of CMC Heartland Partners (the "Company").

          2.   Administration.  The Plan will be administered by a committee of
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the Board of Directors of the Company (the "Board") or a subcommittee of a
committee of the Board appointed by the Board from among its members (the
"Committee").  The Committee is authorized, subject to the provisions of the
Plan, to establish such rules and regulations as it deems necessary for the
proper administration of the Plan and to make such determinations and
interpretations and to take such action in connection with the Plan as it deems
necessary or advisable.  All determinations and interpretations made by the
Committee shall be binding and conclusive on all participants and their legal
representatives.  No member of the Board, no member of the Committee and no
employees of the Company shall be liable for any act or failure to act
hereunder, except in circumstances involving his or her bad faith, gross
negligence or willful misconduct, or for any failure to act hereunder by any
other member or employee or by any agent to whom duties in connection with the
administration of the Plan have been delegated.  The Company shall indemnify
members of the Committee and any agent of the Committee who is an employee of
the Company, against any and all liabilities or expenses to which they may be
subjected by reason of any act or failure to act with respect to their duties on
behalf of the Plan, except in circumstances involving such person's bad faith,
gross negligence or willful misconduct.

          3.   Term.  The Plan shall be effective January 1, 2000 and shall end
               ----
on December 31, 2003.

          4.   Participants.  Participants shall consist of such employees of
               ------------
the Company as the Committee in its sole discretion determines to be in a
position to impact the success and future growth and profitability of the
Company and whom the Committee may designate from time to time to receive
benefits under the Plan. The Committee shall consider such factors as it deems
pertinent in selecting participants. Each participant and the respective
participant's share of the Benefit Pool (as that term is defined below), or a
specific pool within the Benefit Pool, shall be listed on Exhibit A attached to
the Plan. The Committee may make additions from time to time to Exhibit A.

          5.   Benefit Pool.  The aggregate benefits payable under the Plan (the
               ------------
"Benefit Pool") shall be the following percentages of the net proceeds (the "Net
Proceeds") received by the Company on the sale of real estate after deducting
all debt obligations on the property sold, seller's closing costs (including,
but not limited to title changes and transfer taxes) and any real estate
broker's commissions:

               a.   3% of the Net Proceeds received by the Company in 2000 from
                    sales of real property closed in 2000 (the "2000 Benefit
                    Pool");

               b.   3% of Net Proceeds received by the Company in 2001 from
                    sales of real property closed in 2001 (the "2001 Benefit
                    Pool");
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               c.   2% of the Net Proceeds received by the Company in 2002 from
                    sales of real property closed in 2002 (the "2002 Benefit
                    Pool"); and

               d.   1% of the Net Proceeds received by the Company in 2003 from
                    sales of real property closed in 2003 (the "2003 Benefit
                    Pool").

          6.   Payments.
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               a.   2000 Benefit Pool.  As soon as administratively practicable
                    -----------------
                    after December 31, 2000, but in no event later than March
                    31, 2001, each participant shall receive 50% of his/her
                    share in the 2000 Benefit Pool determined as of December 31,
                    2000.  If the participant is an employee of the Company on
                    December 31, 2003, the balance of the participant's share of
                    the 2000 Benefit Pool shall be paid to the participant
                    without interest on December 31, 2003.  If the participant
                    is not an employee on December 31, 2003, the unpaid balance
                    of the participant's share of the 2000 Benefit Pool shall be
                    forfeited.

               b.   2001 Benefit Pool.  As soon as administratively practicable
                    -----------------
                    after December 31, 2001, but in no event later than March
                    31, 2002, each participant shall receive 50% of his/her
                    share in the 2001 Benefit Pool determined as of December 31,
                    2001.  If the participant is an employee of the Company on
                    December 31, 2003, the balance of the participant's share of
                    the 2001 Benefit Pool shall be paid to the participant
                    without interest on December 31, 2003.  If the participant
                    is not an employee on December 31, 2003, the unpaid balance
                    of the participant's share of the 2001 Benefit Pool shall be
                    forfeited.

               c.   2002 Benefit Pool.  As soon as administratively practicable
                    -----------------
                    after December 31, 2002, but in no event later than March
                    31, 2003, each participant shall receive 50% of his/her
                    share in the 2002 Benefit Pool determined as of December 31,
                    2002.  If the participant is an employee of the Company on
                    December 31, 2003, the balance of the participant's share of
                    the 2002 Benefit Pool shall be paid to the participant
                    without interest on December 31, 2003.  If the participant
                    is not an employee on December 31, 2003, unpaid balance of
                    the participant's share of the 2002 Benefit Pool shall be
                    forfeited.

               d.   2003 Benefit Pool.  As soon as administratively practicable
                    -----------------
                    after December 31, 2003, but in no event later than March
                    31, 2004, each participant shall receive 100% of his/her
                    share in the 2003 Benefit Pool determined as of December 31,
                    2003.

                                      -2-
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          7.   Cessation of Employment.
               -----------------------

               a.   In the event a participant ceases to be an employee of the
     Company as a result of the participant's death, total and permanent
     disability, resignation, retirement or termination without cause, such
     participant, or the participant's designated beneficiary or estate shall
     receive, except as provided in Section 6, all accrued benefits through the
     date on which the participant ceased to be an employee of the Company.

               b.   In the event a participant ceases to be an employee of the
     Company as a result of the participant's termination with cause, such
     participant shall forfeit all accrued benefits through such date of
     termination with cause.

               c.   For purposes of subsection b of this Section 7, termination
     with cause shall have the following meaning:

                    (i)    a participant's commission of a material act of fraud
                           against the Company or its affiliates;

                    (ii)   a participant's conviction of any crime which
                           constitutes a felony in the jurisdiction involved; or

                    (iii)  a participant's willful, repeated and demonstrable
                           failure to substantially perform his/her duties over
                           a period of not less than 30 days, other than any
                           such failure resulting from incapacity due to
                           physical or mental illness, or material breach of any
                           obligations under this Agreement, and failure to cure
                           such failure or breach within 30 days after receipt
                           of written notice from the Board. No act or failure
                           to act will be considered "willful" unless done, or
                           omitted to be done in good faith and without
                           reasonable belief that such action or omission was in
                           the best interests of the Company and its affiliates.

               d.   All amounts in the Benefit Pool which are forfeited may be
          allocated by the Committee to existing participants in the Plan or to
          additional participants or not allocated in whole or part.  Any
          amounts not allocated under the Plan shall not be included in any
          benefits payable under the Plan.

          8.   Amendment and Termination.  The Committee, in its absolute
               -------------------------
discretion and without any notice, may at any time modify or amend, in whole or
in part, any or all of the provisions of this Plan, or suspend or terminate it
entirely.

          9.   Withholding.  All payments made pursuant to this Plan shall be
               -----------
net of any amounts required to be withheld pursuant to applicable federal, state
and local tax withholding requirements.

          10   Governing Law.  The Plan shall be construed, administered and
               -------------
governed in all respects under and by the laws of the state of Illinois.

                                      -3-
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                                    CMC HEARTLAND PARTNERS

                                    By:  _________________________________

                                    Its: _________________________________

                                      -4-

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