EXECUTION COPY
 
FIRST AMENDMENT TO RECEIVABLES LOAN AND SECURITY AGREEMENT
 
THIS FIRST AMENDMENT TO THE RECEIVABLES LOAN AND SECURITY AGREEMENT, dated as
December 21, 2006 (this “Amendment”), is entered into by RESOURCE CAPITAL
FUNDING II, LLC, (the “Borrower”), LEAF FINANCIAL CORPORATION (“LEAF Financial”
or the “initial Servicer”) as the Servicer and MORGAN STANLEY BANK (“Morgan
Stanley”) as a Lender.
 
R E C I T A L S
 
A.  The Borrower, LEAF Financial, Morgan Stanley, U.S. Bank National Association
and Lyon Financial Services, Inc. are parties to the Receivables Loan and
Security Agreement, dated as of October 31, 2006 (as amended, supplemented or
otherwise modified from time to time, the “Agreement”);
 
B. The parties hereto desire to amend the Agreement on the terms and conditions
set forth herein.
 
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:
 
1.  Certain Defined Terms. Capitalized terms used but not defined herein shall
have the meanings set forth for such terms in Section 1.01 of the Agreement.
 
2.  Amendments to the Agreement. The Agreement is hereby amended to incorporate
the changes reflected on Exhibit A hereto.
 
3.  Consent. Morgan Stanley hereby consents to the execution and delivery of the
First Amendment to the Purchase and Sale Agreement, dated as of the date hereof
(the “PSA Amendment”), between the Originator and the Borrower.
 
4.  Conditions Precedent. The effectiveness of this Amendment is expressly
conditioned upon the satisfaction of the following conditions precedent:
 
(a)  the execution and delivery by all of the parties hereto of this Amendment
and the PSA Amendment; and
 
(b)  The execution and delivery by all of the parties thereto of the Membership
Interest Purchase Agreement, dated as of the date hereof, between RCC
Commercial, Inc., as seller, and the Originator, as buyer; and
 
(c)  the delivery of favorable opinions of counsel regarding true sale and
substantive nonconsolidation matters, in form and substance reasonably
satisfactory to Morgan Stanley.
 

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(d)  The delivery of a reliance letter to Morgan Stanley Capital Services, Inc.
with respect to the opinions of counsel dated October 31, 2006 and delivered in
connection with the execution and delivery of the Receivables Loan and Security
Agreement, excluding any such opinions delivered with respect to true sale and
nonconsolidation matters.
 
5.  Representations and Warranties. Both the Borrower and the Servicer
represents and warrants to Morgan Stanley that:
 
(a)  this Amendment has been duly authorized, executed and delivered on its
behalf, and the Agreement, as so amended, constitutes its legal, valid and
binding obligation enforceable against it in accordance with the terms hereof or
thereof;
 
(b)  the representations and warranties made by it in the Agreement (as amended
by this Amendment) are true and correct as of the date hereof (except to the
extent such representations and warranties speak as a prior date or have been
the subject of any prior notice or waiver); and
 
(c)  after giving effect to this Amendment, no Program Termination Event, Event
of Default, or Unmatured Event of Default shall exist on the date hereof.
 
6.  Effect of Amendment. Except as expressly amended and modified by this
Amendment, all provisions of the Agreement shall remain in full force and
effect. After the date hereof, all references in the Agreement to “this
Agreement”, “hereof”, or words of similar effect referring to such Agreement
shall be deemed to be references to the Agreement as amended by this Amendment.
This Amendment shall not be deemed to expressly or impliedly waive, amend or
supplement any provision of the Agreement other than as set forth herein.
 
7.  Counterparts. This Amendment may be executed in any number of counterparts
and by different parties on separate counterparts, each of which shall be deemed
to be an original and all of which when taken together shall constitute but one
and the same instrument.
 
8.  Governing Law. This Amendment shall be governed by, and construed in
accordance with, the law of the State of New York without regard to any
otherwise applicable principles of conflicts of law.
 
9.  Section Headings. The various headings of this Amendment are included for
convenience only and shall not affect the meaning or interpretation of this
Amendment, the Agreement or any provision hereof or thereof.
 
Signature pages follow
 
2

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IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by
their respective officers thereunto duly authorized, as of the date first above
written.
 

 
THE BORROWER:
RESOURCE CAPITAL FUNDING II, LLC
 
By: ______________________________
    Name:
    Title:
 
THE SERVICER:
LEAF FINANCIAL CORPORATION
 
By: ______________________________
    Name:
    Title:
 
   
THE LENDER:
MORGAN STANLEY BANK
 
By: ______________________________
    Name:
    Title:
 

S-1

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Exhibit A

AMENDMENTS

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