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TARTER KRINSKY & DROGIN LLP Attorneys for The Christian Brothers Institute, et al. Debtors and Debtors-in-Possession 1350 Broadway, 11th Floor New York, New York 10018 (212) 216-8000 Scott S. Markowitz, Esq. Marilyn Simon, Esq. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------------------- x In re: : : THE CHRISTIAN BROTHERS INSTITUTE, et al. : : Debtors. : ------------------------------------------------------------------- x

Chapter 11 Case No.: 11-22820 (RDD) (Jointly Administered)

DEBTORS APPLICATION FOR RETENTION OF RE/MAX 10 AS DEBTORS REAL ESTATE BROKER TO: THE HONORABLE ROBERT D. DRAIN UNITED STATES BANKRUPTCY JUDGE The Christian Brothers of Ireland, Inc., debtor and debtor-in-possession (the Debtor), respectfully sets forth and alleges: 1. By this application (the Application), the Debtor respectfully requests that this

Court authorize it to retain Re/Max 10 (Re/Max) as its real estate broker with respect to the marketing and sale of real property located at 9757 S. Seeley Avenue, Chicago, Illinois (the Property). The Property was used as a residence for the Debtors Brothers in Chicago, Illinois, and is no longer occupied. A copy of the residential exclusive right to sell marketing agreement, dated August 29, 2011 (the Agreement) is annexed hereto as Exhibit A. The Agreement is for a six (6) month period and expires in March/April, 2011.

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JURISDICTION, VENUE AND STATUTORY BASES FOR RELIEF 2. The Court has jurisdiction over this Application under 28 U.S.C. 157 and 1334

and the Order of Reference, dated July 10, 1984 (Ward, C.P.J.). This matter is a core proceeding within the meaning of 28 U.S.C. 157(b)(2). Venue of this case and this Application in this district is proper under 28 U.S.C. 1408 and 1409. 3. The statutory bases for the relief requested herein are 11 U.S.C. 101(14),

327(a) and 328, Rule 2014 of the Federal Rules of Bankruptcy Procedure (the Rules) and Local Bankruptcy Rule 2014-1. BACKGROUND 4. On April 28, 2011 (the Petition Date), each of the above-captioned Debtors

commenced their respective Chapter 11 cases (individually, a Case and together, the Cases) by filing a voluntary petition for relief under Chapter 11 of Title 11, United States Code (the Code). Pursuant to 1107(a) and 1108 of the Code, the Debtors continue to operate as debtors-in-possession. No trustee has been appointed. 5. On May 11, 2011, the United States Trustee appointed an Official Committee of

Unsecured Creditors (the Committee). The Committee has retained Pachulski Stang Ziehl & Jones LLP as its counsel. 6. CBOI is a domestic not-for-profit 501(c)(3) corporation organized under the Not-

for-Profit Corporation Law of the State of Illinois. The purpose for which CBOI was, and continues to be, formed was to establish, conduct and support Catholic elementary and secondary schools principally throughout the State of Illinois, as well as other spiritual and temporal affairs of the former Brother Rice Province of the Congregation of Christian Brothers. As a not-forprofit corporation, the assets, and/or income are not distributable to, and do not inure to, the

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benefit of its members or officers. CBOI also depends upon grants and doncations to fund a portion of its operating expenses. CBOI has no employees and relies upon its board of directors to compile the information required in this Case. RELIEF REQUESRTED 7. The Debtor has determined, in the exercise of its business judgment, to sell the

Property as the Debtors Brothers no longer reside in the house. The Debtor has selected Re/Max because the firm has considerable experience in representing sellers of homes. Richard Ostergren, a real estate broker with considerable experience in selling and marketing homes of this type, is licensed in the State of Illinois and is a broker/owner of Re/Max. He, and/or Courtney Sinisi, a designated agent of Re/Max, will be primarily responsible for the marketing and sale of the Property. The Debtor believes, and respectfully submits, that Re/Max is

experienced and qualified to market the Property. Re/Max has indicated its willingness to serve as the Debtors exclusive real estate broker under the Agreement and in accordance with the terms of this Application. 8. The professional services that Re/Max will provide are specifically set forth in the

Agreement,1 but in general include marketing the Property to obtain prospective, well qualified purchasers that are ready, willing and able to purchase the Property. All costs associated with the marketing of the Property including, but not limited to, advertisements, public relations, marketing brochures, etc. will be borne by Re/Max. 9. Upon sale of the Property, Re/Max will be paid a commission of six (6%) percent In the event another licensed real estate broker is

of the sales price (the Commission).

This summary of the Agreement is descriptive only and is qualified in its entirety by the provisions of the Agreement. The terms of the Agreement will control in the event of any inconsistency between this Application and the Agreement.

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solicited by Re/Max to become involved in the transaction, Re/Max shall pay such broker a fee for services by separate agreement with such broker, and in no event shall the fee for services paid by the Debtor exceed the Commission. 10. Since it is acting merely as real estate broker and will be paid a commission, only,

it will be burdensome for Re/Max to comply with the requirements of the Bankruptcy Code with respect to maintenance of time records. Its sale efforts will not affect the Debtors cash flow. Based upon these factors, the Debtor respectfully requests that Re/Max (a) be exempted from the requirements to maintain time records; and (b) be exempted from the monthly record keeping and notice requirements that may be directed by any monthly interim compensation order that may be entered by this Court in the future. 11. The Debtor has listed the residence on Schedule A of its schedules of assets and

liabilities. There are no liens against the home and its sale is, therefore, expected to bring additional cash into the estate for distribution to unsecured creditors under a Plan. 12. Based upon the annexed affidavit of Richard Ostergren (the Affidavit), the

Debtor believes that Re/Max is well qualified to render the services required in this case to maximize the estates recovery, and the employment of Re/Max is necessary and is in the estates best interest. 13. Re/Max has advised Debtor that, except as may otherwise be set forth in the

Affidavit, Re/Max is a disinterested person within the meaning of Bankruptcy Code 101(14)(b). Re/Maxs officers, directors, shareholders and employees have no connection with the Debtor, its creditors, or any other interested party, and Re/Max neither holds nor represents an interest adverse to the estate in the matters upon it is to be engaged.

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14.

Re/Max has not entered into any agreement prohibited by 155 of Title 18 of the

United States Code. 15. The Debtor respectfully submits that no notice of this Application is necessary

inasmuch as the requested relief does not affect the substantive rights of any party. A copy of this Application, the Affidavit, and the proposed order of retention has been submitted to the United States Trustee and counsel for the Committee for review and approval. 16. No previous application for the relief requested herein has been made to this or

any other court. WHEREFORE, the Debtor respectfully requests that the prefixed order be entered pursuant to 327(a) and 328 of the Bankruptcy Code, Bankruptcy Rule 2014 and Local Bankruptcy Rule 2014-1(a), authorizing the Debtor to employ and retain Re/Max as its exclusive real estate agent to market the Property on the terms set forth in the Agreement, and that it have such other and further relief as is just and proper. Dated: New York, New York August 30, 2011 THE CHRISTIAN BROTHERS OF IRELAND, INC. By: /s/ Brother Kevin Griffith Brother Kevin Griffith Vice-President

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TARTER KRINSKY & DROGIN LLP Attorneys for The Christian Brothers Institute et al. Debtors and Debtors-in-Possession 1350 Broadway, 11th Floor New York, New York 10018 (212) 216-8000 Scott S. Markowitz, Esq. Marilyn Simon, Esq. UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------------------- x In re: : : THE CHRISTIAN BROTHERS INSTITUTE, et al. : : Debtors. : ------------------------------------------------------------------- x

Chapter 11 Case No.: 11-22820 (RDD) (Jointly Administered)

AFFIDAVIT OF RICHARD OSTERGREN IN SUPPORT OF DEBTORS APPLICATION FOR RETENTION OF RE/MAX 10 AS EXCLUSIVE REAL ESTATE BROKER TO CHRISTIAN BROTHERS OF IRELAND, INC. STATE OF NEW YORK ) ) ss.: COUNTY OF NEW YORK ) Richard Ostergren, being duly sworn, states as follows: 1. I am a Broker/Owner of Re/Max 10 (Re/Max) with an office located at 9909

Southwest Highway, Oaklawn, Illinois. Among other things, Re/Max is an Illinois licensed real estate brokerage firm. 2. I submit this affidavit in support of the application (the Application) of

Christian Brothers of Ireland, Inc. (CBOI)1 the above-captioned debtor and debtor-inpossession (the Debtor), for an order authorizing it to retain Re/Max as its exclusive real estate agent to market and sell a residence located at 9757 S. Seeley Avenue, Chicago, Illinois 60643

The last four digits of CBOIs employer identification number are 0603 and its mailing address is 1001 S. Pulaski, Room 106, Chicago, Il. 60655.

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(the Property) under the terms of a residential exclusive right to sell marketing agreement, dated August 29, 2011 (the Agreement), annexed as Exhibit A to the Application. 3. Re/Max is experienced and qualified to represent the Debtor in its effort to sell the

Property in this Case. The services to be rendered include all of those services summarized in the Application and set forth in the Agreement.2 4. Neither I, Re/Max, nor any officer, director, shareholder or employee of Re/Max,

insofar as I have been able to ascertain, has any connection with the Debtor, its creditors or any other interested party or their respective attorneys and accountants, except that Re/Max, its officers, directors, shareholders and employees: (a) may have represented in the past, and may represent in the future, entities in matters wholly unrelated to the Debtors Case, where one or more of the said parties may have been, or may be or become involved in this Case; and (b) may represent or may have represented, certain of the Debtors creditors in matters wholly unrelated to its Case. 5. Neither I, Re/Max nor any officer, director, shareholder or employee of Re/Max,

insofar as I have been able to ascertain, holds or represents any interest adverse to that of the estate in the matters upon which Re/Max is to be engaged and I believe Re/Max to be a disinterested person within the meaning of 101(14) of the Bankruptcy Code. 6. I have advised the Debtor of Re/Maxs willingness to serve as its exclusive real

estate agent under the Agreement, consistent with the provisions of the Bankruptcy Code and Rules for professional services rendered and expenses incurred in accordance with the provisions of 328, 330 and 331 of the Bankruptcy Code.

Capitalized terms otherwise undefined herein shall have the meaning set forth in the Application.

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7.

The six (6%) percent commission rate to be paid upon the closing of the sale of

the Property is competitive with the rates charged by other firms and the services to be rendered are also comparable to those provided by other brokerage firms. 8. While employed by the Debtor, Re/Max will not represent any other entity having

an adverse interest in connection with this Case. 9. To the best of my knowledge, information and belief, Re/Max has not entered into

any agreement prohibited by 155 of Title 18 of the United States Code or Rule 201(6)(b) of the Bankruptcy Rules. 10. I have read the Application for an order approving the retention of Re/Max as the

Debtors exclusive real estate agent to sell the Property and, to the best of my knowledge, information and belief, the contents of said Application are true and correct.

/s/ Richard Ostergren Richard Ostergren Sworn to before me this 30th day of August, 2011 /s/ Lynnda Coury Lynnda Coury Notary Public, State of Illinois Commission Expires January 27, 2014

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