Document:

Exhibit 4.15

Exhibit 4.15

This is an English translation of the original agreement in Chinese

SHAREHOLDERS’ AGREEMENT

This Shareholders’ Agreement (this “Agreement”) is entered into by and among the following parties
on September 17, 2008, in Guangzhou, the People’s Republic of China (“PRC”).

Party A: Guangdong Meidiya Investment Co., Ltd.

Registered address: Room 603, Xiangkang Commercial Building, No. 11 Sanyuanli Boulevard, Baiyun
District, Guangzhou

Party B: Chengdu Mingxia Industrial Co., Ltd.

Registered address: 4/F, Hongchuan Building, No. 17, Ambassador Road, Chengdu

Party C: Keping Lin

ID No.:

Address:

(Party A, Party B and Party C shall hereinafter individually be referred to as the “Party”, and
collectively the “Parties”; Party B and Party C are hereinafter collectively referred to as the
“Original Shareholders”)

Target Company: Beijing Fanhua Datong Investment Management Co., Ltd. (hereinafter called the
“Company”)

Address: Room 801-803, 805-808, Block B, Jiahao International Center, No. 116, Zi Zhuyuan Road,
Haidian District, Beijing

Whereas,

	1.	 	The Company is a limited liability company duly incorporated and validly existing under the
PRC laws, with a registered capital of RMB20 million, of which RMB11 million were contributed
by Party B, representing 55% of the equity interests in the Company, and RMB9 million were
contributed by Party C, representing 45% of the equity interests in the Company. As of the
date of execution of this Agreement, Party B and Party C lawfully enjoy all the shareholders’
rights underlying their
capital contributions to the Company.

 

 

 

	2.	 	Party B is a limited liability company duly incorporated and validly existing under the PRC
laws. It intends to transfer all of its 55% equity interests in the Company to Party A.

	3.	 	Party A is a limited liability company duly incorporated and validly existing under the PRC
laws. It intends to acquire the 55% equity interests in the Company currently held by Party B.

	4.	 	Party C agrees that Party B may transfer all of its 55% equity interests in the Company to
Party A. It also undertakes to invest RMB20 million into the capital reserve of the Company.

	5.	 	The Original Shareholders guarantee the Company’s performance targets for the years 2009 to
2010 in favor of Party A, and agree to provide a security deposit and adjust the equity
interests in connection with such guarentee.

In connection with the above-mentioned equity transfer, the Parties hereby enter into the following
agreement through friendly consultation in accordance with the applicable laws and regulations, and
in the spirit of equality and mutual benefit and in good faith.

	1.	 	Definition and Interpretation

In this Agreement, unless otherwise stated, the following terms shall have the following
meanings:

Confidential Information refers to all the oral or written information related to
the business operations, business strategies, business plans, investment plans, products,
sales, employees, technology, purchases, financial results or other matters of the Company
and the Parties hereto, including but not limited to all the reports and records, and
copies, duplications and translations thereof, that contain such information.

Force Majeure refers to any and all events that occurs after the date of this
Agreement and can not be predicted, avoided or overcome, and that has caused any Party
hereto to fail to perform any or all of its obligations under this Agreement, including
earthquakes, typhoons, floods, droughts, fires, wars, inaccessibility to domestic or
international transports, acts of governments, infectious diseases, riots, disruption of
electricity supply without notice, or any other similar incident.

 

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Closing refers to the completion of the procedures for registration of the Equity
Transfer at, and obtainment of documentation evidencing such Equity Transfer from, the
Administration for Industry and Commerce by the Parties hereto in accordance with the PRC
laws and this Agreement, after satisfying all applicable conditions.

Closing Date refers to the date on which the Administration for Industry and
Commerce issues a certificate of registration for the Equity Transfer in accordance with the
PRC laws and regulations.

Execution Date refers to the date on which this Agreement is signed and stamped by
the Parties hereto, as shown on the first page of this Agreement.

Equity Transfer refers to the transfer of 55% of the equity interests of the Company
from Party B to Party A according to the terms of this Agreement.

Consideration refers to the payment Party A shall make to Party B for acquiring the
55% equity interests of the Company held by Party B according to the terms of this
Agreement.

Articles of Association refers to the articles of association of the Company.

Date/Day refers to the calendar day.

China or PRC refers to the People’s Republic of China, excluding, solely for the
purpose of this Agreement, Taiwan, Hong Kong and Macau.

PRC laws refer to all the applicable laws, orders and regulations of the PRC, and
all the applicable regulations, guidelines, ordinances, notices, pronouncements,
instructions, decisions or other mandates promulgated by the governmental departments.

Standard Premiums with a Payment Period of more than 5 Years refers to the converted
premiums of life insurance policies with a payment period of more than 5 years, calculated
using life insurance policies with a 20-year payment term as the standard (see Annex 1 for
the conversion formula).

	2.	 	Equity Transfer and Consideration

	 	2.1	 	Party B intends to transfer all of its 55% equity interests in the Company to
Party A, and Party A agrees to acquire the said equity interests.

	 	2.2	 	Each of Party A and Party B confirms that the consideration for the Equity
Transfer shall be RMB11 million, which Party A shall pay in full within
sixty (60) business days after the Closing Date.

 

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	 	2.3	 	After the Closing, the proportion of each Party’s contribution in the registered
capital of the Company shall be:

Party A: RMB 11 million, representing 55% of the registered capital; and

Party C: RMB 9 million, representing 45% of the registered capital.

	3.	 	Capital Reserve

Party C agrees and undertakes to unilaterally invest an additional RMB 20 million to the
Company’s capital reserve within twenty-four (24) months after the Closing Date.

	4.	 	Performance Guarantee

	 	4.1	 	The Original Shareholders undertake that the annual net profit of the Company
shall not be less than RMB10 million, RMB30 million and RMB80 million in 2009, 2010 and
2011, respectively.

	 	4.2	 	Party A and the Original Shareholders agree that the above-mentioned net profit
refers to the sum of the net profit as presented in the consolidated financial
statements of the Company prepared in accordance with the U.S. GAAP, plus the consulting
fees, trademark licensing fees and other fees which the Company and its subsidiaries pay
to Party A and its related companies in the year.

	 	4.3	 	The Original Shareholders agree to adjust their equity interests according to the
actual result of the above-mentioned performance targets, and to provide a security
deposit as a guarantee. Annex 2 hereto sets forth the details of the equity adjustment
and the security deposit.

	5.	 	Corporate Governance

After the Closing, Party A and Party C agree to govern the Company in the following manner:

	 	5.1	 	Party A shall support Party C to continue to serve as the chairman of the board of
directors of the Company, whose term shall be governed by the Articles of Association of
the Company.

	 	5.2	 	The shareholders, the board of directors and the management of the Company shall
operate the Company in accordance with their respective terms of reference set out in the
Articles of Association of the Company (see Annex 3).

 

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	 	5.3	 	The board of directors of the Company shall consist of seven (7) members, of whom
four (4) shall be designated by Party A and three (3) shall be designated by Party C. An
audit committee of the board of directors shall be established and shall consist of three
(3) members, two (2) of whom shall be designated by Party A and one (1) shall be
designated by Party C. The chairman of the audit committee shall be designated by Party
A. The audit committee shall be responsible for establishing the budget management system
and accounting management procedures of the Company and its subsidiaries.

	 	5.4	 	The Company and its subsidiaries shall strictly observe the Nasdaq Marketplace
Rules to which Nasdaq-listed companies are subject and Sarbanes-Oxley Act.

	6.	 	Profits Distribution

Party A and Party C agree that the Company shall distribute to Party A all of the net profits
generated from 2009 to 2011 within a time frame specified by Party A.

	7.	 	Closing

	 	7.1	 	The Closing is subject to the following conditions:

	 	7.1.1	 	In accordance with the relevant laws, regulations, administrative
rulings and the respective articles of association, the internal authority of each
Party has made their respective resolution and has agreed upon the Equity Transfer
contemplated under this Agreement;

	 	7.1.2	 	The government authorities have duly approved (if necessary) the
change of shareholders of the Company pursuant to this Agreement, and the Parties
agree to use their best efforts to work with such authorities and provide the
necessary material and information;

	 	7.1.3	 	All representations and warranties made by the Parties hereunder
have continued to be true, complete and accurate, and there have been no material
misrepresentations or omissions, until the Closing Date;

	 	7.1.4	 	The Parties have performed their obligations hereunder in
accordance with this Agreement by the Closing Date;

 

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	 	7.1.5	 	The Parties shall have duly prepared a complete inventory of all
existing assets and financial resources of the Company before the Closing Date;

	 	7.1.6	 	Party C shall have formed a management team, established the
functional departments of the Company, and formulated the operational model,
internal policies and procedures and the financial budget model of the Company.

	 	7.2	 	After the Closing, the equity interests of Party B, together with the rights and
obligations thereof, shall be transferred to Party A, and Party A shall enjoy the rights
and bear the obligations in accordance with the Articles of Association of the Company.

	 	7.3	 	In the event that all of the conditions listed above have not been satisfied or
waived in writing by Party A, and the Closing has not occurred, by the end of the three
(3)-month period beginning from the Execution Date, this Agreement shall be terminated
immediately, unless the Parties agree in writing to defer the termination to a date no
later than six (6) months after the Execution Date.

	8.	 	Representations, Warranties and Covenants of the Parties

	 	8.1	 	Representations, Warranties and Covenants of Party A

Party A confirms that the representations and warranties hereunder are true, complete
and accurate, and shall, except as previously disclosed, remain effective until the
expiration date of this Agreement:

	 	8.1.1	 	Party A is a company duly incorporated and validly existing under
the PRC laws;

	 	8.1.2	 	Party A has full right and power, and has obtained all internal and
external authorizations necessary, for the execution of and performance of the
obligations under this Agreement;

 

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	 	8.1.3	 	When executed by the Parties hereto, this Agreement shall constitute
a valid and binding agreement of Party A. The execution and performance of this
Agreement by Party A will not violate any law, regulation, rule, administrative
decision, legal judgment or arbitral award that is binding upon Party A, its
articles of association or
board resolutions, breach the terms, conditions and covenants in any agreement
with any third party, or otherwise cause any conflicts of interest;

	 	8.1.4	 	Party A has sufficient funds and has made adequate financial
arrangements to enable it to fulfill its payment obligations pursuant to the terms
and conditions hereof.

	 	8.2	 	Representations, Warranties and Covenants of Party B

Party B confirms that the representations and warranties hereunder are true, complete
and accurate, and shall, except as previously disclosed, remain effective until the
expiration date of this Agreement:

	 	8.2.1	 	Party B is a company duly incorporated and validly existing under
the PRC laws. Party B is a shareholder of the Company duly registered at the
Administration for Industry and Commerce and lawfully owns the equity interests
that it intends to transfer to Party A. Party B is the sole owner of such equity
interests;

	 	8.2.2	 	Party B has not, for its own benefit or for the benefit of any third
party, placed any mortgage, pledge, guarantee, lien, trust or any other
encumbrance that may subject the equity interests to any claims by any third
party;

	 	8.2.3	 	Party B has full right and power, and has obtained all internal and
external authorizations necessary, for the execution of and performance of the
obligations under this Agreement;

	 	8.2.4	 	When executed by the Parties hereto, this Agreement shall constitute
a valid and binding agreement of Party B. The execution and performance of this
Agreement by Party B will not violate any law, regulation, rule, administrative
ruling, legal judgment, arbitral decision that is binding upon Party B, breach the
terms, conditions or covenants of any agreement with any third party or otherwise
cause any conflicts of interest;

	 	8.2.5	 	Except for this Agreement, there is no binding agreement, decision
or third party’s right with respect to the sale, transfer, allocation, guarantee
or disposal in any other manner of such equity interests held by Party B;

 

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	 	8.2.6	 	The financial information, technical information, managerial
information and other material information disclosed by Party B is complete
and accurate in all material respects, and there are no material
misrepresentations or omissions;

	 	8.2.7	 	Except as expressly disclosed to Party A (see Annex 4), the Company
has not provided any form of guarantee to any other party, and there is no
litigation, investigation, penalty or arbitration caused or likely to be caused by
any guarantee or improper transaction;

	 	8.2.8	 	Except for the liabilities and defects of titles as expressly
disclosed to Party A (see Annex 3), the Company has full title and right to the
properties, assets, real properties and the interests therein, and intangible
assets and the rights therein, free of any encumbrance;

	 	8.2.9	 	Except as expressly disclosed to Party A (see Annex 4), there are no
litigations, claims, arbitrations, or other legal or administrative proceedings
pending against the Company; no claims have been threatened against the Company
that could affect any of its properties, assets or businesses, and there exist no
facts or circumstances that could give rise to such claims;

	 	8.2.10	 	Except as expressly disclosed to Party A (see Annex 4), there is no existing
default under any material agreement or commitment by the Company, nor is there
any circumstance, event or act that could give rise to such default.

	 	8.3	 	Representations, Warranties and Covenants of Party C

Party C confirms that the representations and warranties hereunder are true, complete
and accurate, and shall, except as previously disclosed, remain effective until the
expiration date of this Agreement:

	 	8.3.1	 	Party C is a PRC citizen with full civil capacity under the PRC
laws;

	 	8.3.2	 	Party C has full right and power, and has obtained all
authorizations necessary for the execution of and performance of the obligations
under this Agreement;

 

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	 	8.3.3	 	When executed by the Parties hereto, this Agreement shall constitute
a valid and binding agreement of Party C. The execution and performance of this
Agreement by Party C will not violate any law, regulation, rule, administrative
ruling, legal judgment, arbitral decision that is binding upon Party C, breach the
terms, conditions
or covenants of any agreement with any third party or otherwise cause any
conflicts of interest;

	 	8.3.4	 	Party C has sufficient funds and has made adequate financial
arrangements to enable it to fulfill its obligations pursuant to the terms and
conditions hereof.

	9.	 	Treatment of Credits and Liabilities

	 	9.1	 	Except as otherwise provided hereunder, all credits and liabilities of the
Company that exist as of the Closing Date shall continue to be enjoyed and borne by the
Company.

	 	9.2	 	The following liabilities that exist as of the Closing Date, or that result from
events that occurred before the date of the Closing shall not continue to be borne by
the Company:

	 	9.2.1	 	Liabilities of the Company that has not been disclosed expressly to
Party A;

	 	9.2.2	 	Taxes and fees payable that has not been disclosed expressly to
Party A;

	 	9.2.3	 	Obligations and responsibilities of the Company in accordance with
agreements to which the Company is a party that have not been disclosed expressly
to Party A.

	 	9.3	 	In the event that the Company assumes the liabilities set forth in Article 9.2,
Party A is entitled to be indemnified by the Original Shareholders, who shall be jointly
and severally liable for such indemnifications.

	10.	 	Transition Period Arrangement

	 	10.1	 	The transition period hereunder refers to the period from the Execution Date to
the Closing Date.

	 	10.2	 	During the transition period, the Original Shareholders shall ensure that Party A
enjoys the following rights with respect to the Company:

	 	10.2.1	 	Party A will have the right to assign a financial employee to supervise the
operational and financial condition of the Company for the purposes of ensuring
that the operational and financial condition of the Company will not fall below
the level on the Execution Date;

 

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	 	10.2.2	 	Party A will have the right to assign an observer to the Company,
who will have the right to attend meetings of the board of directors and
meetings of senior management of the Company.

	 	10.3	 	During the transition period, the Original Shareholders covenant that:

	 	10.3.1	 	The Company will conduct its business in the same manner as it does on the
Execution Date, will not dispose of any assets or businesses out of its ordinary
course of business, and will not enter into any agreement or take any other
similar action that could cause adverse changes to the operational and financial
condition of the Company.

	 	10.3.2	 	They will cooperate with the observer by promptly reporting to the observer the
operational and financial condition of the Company, and providing relevant
materials, such as financial statements, balance sheets, income statements and
statements of changes in financial condition. The Original Shareholders shall
provide necessary explanations to the relevant materials as requested by the
observer.

	11.	 	Confidentiality

	 	11.1	 	Each Party hereto agrees that it and its employees and consultants shall keep
confidential, and shall not disclose to any third party or use for other purposes, any
and all business, technical, and financial information and other related documents,
materials, information and data provided by the other Party in connection with the
negotiation, execution or performance of this Agreement.

	 	11.2	 	Section 11.1 is not applicable to the following information:

	 	11.2.1	 	Information that has already been publicly disclosed or can be obtained in other
manners in accordance with this Agreement;

	 	11.2.2	 	Information that has been obtained by a Party in a manner that does not violate
the obligations of confidentiality;

	 	11.2.3	 	Information that is required to be disclosed in accordance with applicable laws;

 

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	 	11.2.4	 	Information that is disclosed by CNinsure Inc, a related party of Party A, in
accordance with the laws of the United States;

	 	11.2.5	 	Information that is disclosed for the purpose of performing the
obligations hereunder.

	 	11.3	 	The confidentiality obligations hereunder shall be binding upon the relevant
persons for a period of three years commencing from the date when such person becomes
aware of, gets hold of, knows, or comes into contact with the confidential information.

	12.	 	Non-competition

Except with the prior written consent of Party A, each of the Original Shareholders of the
Company, so long as they remain as the Company’s shareholders, shall not engage in any
industry that competes with the Company, or operate a business that competes with the business
of the Company. Otherwise, Party A will have the right to demand that Party B terminate its
operations, and the right, or the right of first refusal, to purchase at a reasonable price
the equity interests in Party B. Party C shall not engage in an industry that competes with
the Company, or operate a business that competes with the business of the Company for a period
of ten years after he ceases to be a shareholder of the Company. Otherwise, Party A will have
the right to demand that Party C terminate its operations, and the right, or the right of
first refusal, to purchase at a reasonable price the equity interests held by Party C.

	13.	 	Expenses and Taxes

	 	13.1	 	Each of the Parties shall be responsible for its/his own expenses incurred for
the engagement of legal counsel, accountants, appraisers, financial advisers and other
professionals.

	 	13.2	 	Each of Party A and Party B shall be responsible for its own tax liabilities
incurred in connection with the Equity Transfer in compliance with the laws.

	 	13.3	 	All the other expenses incurred, including without limitation filing fees for the
change of registration with the administration for industry and commerce, shall be borne
by the Company.

 

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	14.	 	Liabilities for Breach

	 	14.1	 	A Party hereto is in breach of this Agreement if such Party:

	 	14.1.1	 	fails to perform any obligation hereunder;

	 
	 	14.1.2	 	violates any representation, warranty or covenant hereunder;

	 
	 	14.1.3	 	makes any false or misleading representation and warranty hereunder.

	 	14.2	 	In the event of an aforesaid breach, the observing party will have the right to
require the breaching party to take remedial measures within 30 days and, if the
breaching party fails to remediate the breach within the specified period, to terminate
this Agreement and seek damages from the breaching party.

	 	14.3	 	Each Party agrees that, without compromising or limiting the observing party’s
rights to assert claims and seek damages for breach of the covenants, warranties or
obligations under this Agreement, the breaching party shall indemnify the observing
party as requested by the observing party:

	 	14.3.1	 	No less than RMB1 million to have the Parties’ conditions restored to those that
existed before the breach;

	 	14.3.2	 	Reasonable fees and expenses the observing party directly and indirectly
incurred as a result of the breach, including but not limited to reasonable
expenses for litigation, arbitration and/or attorneys’ fees.

	15.	 	Force Majeure

	 	15.1	 	Should any Party fail to perform its obligations pursuant to the terms and
conditions under this Agreement due to Force Majeure, such Party may seek exemption from
liabilities for breach, to the extent such breach was caused by Force Majeure, in
accordance with applicable laws and this Agreement.

	 	15.2	 	In order to be exempted from liabilities for breach in reliance on Section 15.1,
the Party that claims to be unable to perform its obligations hereunder due to Force
Majeure shall perform the following obligations:

	 	15.2.1	 	take all necessary measures to minimize or remove the effects of Force Majeure
so that the losses caused by Force Majeure are minimized; otherwise such Party
shall be responsible for the excess losses caused by Force Majeure;

	 	15.2.2	 	notify the other Party promptly and in any event no later than fifteen (15) days
after the occurrence of Force Majeure;

 

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	 	15.2.3	 	use reasonable effort to resume performance of the obligation(s) affected by
Force Majeure as soon as possible;

	 	15.2.4	 	provide sufficient evidence of the existence and duration of the event of Force
Majeure.

	 	15.3	 	Performance in the Event of Force Majeure

	 	15.3.1	 	During the period when one or more Parties are unable to perform part or all of
the obligations under this Agreement due to Force Majeure, the Parties shall
continue to perform the other obligations set forth in this Agreement;

	 	15.3.2	 	Should the event of Force Majeure continue for a period of more than ninety (90)
days, the Parties may, through amicable consultations, decide how to continue with
the performance of this Agreement, or seek other equitable ways and use all
reasonable efforts to minimize the effects of the event of Force Majeure.

	16.	 	Governing Laws

The formation, validity, interpretation, performance and dispute resolution of this
Agreement shall be governed by the PRC laws.

	17.	 	Dispute Resolution

	 	17.1	 	Any dispute arising from or in connection with this Agreement shall be resolved
by the Parties through amicable consultation.

	 	17.2	 	If the Parties cannot resolve the dispute through amicable consultation within
sixty (60) days after the occurrence thereof, such dispute shall be submitted for
arbitration to the China International Economic and Trade Arbitration Commission. The
seat of the arbitration shall be in Beijing.

	 	17.3	 	If any provision hereof is held invalid under applicable laws, such invalidity
will not affect the validity and enforceability of the other provisions of this
Agreement.

 

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	18.	 	Miscellaneous

	 	18.1	 	This Agreement constitutes the entire representations and agreement between the
Parties and supersedes all oral or written representations, warranties, understandings
and agreements concerning the subject matters hereof between the Parties made or reached
prior to the execution hereof. The Parties acknowledge and agree that any
representation or warranty not explicitly included herein do not constitute the basis of
this Agreement, and
therefore will not serve as the basis for the determination of the rights and
obligations of the Parties and the interpretation of the terms and conditions hereof.

	 	18.2	 	All provisions of this Agreement are independent and severable. If any provision
of this Agreement is held to be illegal, invalid or unenforceable by any government,
governmental agency, judicial authority or arbitration institution, the validity of the
other provisions of this Agreement will not be affected thereby.

	 	18.3	 	The Parties agree that they may engage in further negotiations on issues not
covered herein, and enter into a supplemental agreement in writing, after the execution
of this Agreement. Such supplemental agreement will constitute an integral part of this
Agreement.

	 	18.4	 	No Party may assign its rights hereunder without the prior written consent of the
other Party. This Agreement will be binding upon the respective successors and permitted
assigns of the Parties hereto.

	 	18.5	 	This Agreement will become effective upon the execution and affixing of corporate
seal by the Parties.

	 	18.6	 	All notices specified in this Agreement shall be in writing, in Chinese, and
delivered via registered mail, facsimile or other electronic means of communication. A
notice is deemed to have been duly given when it is delivered to the registered address
of the receiving Party. If the notice is sent by registered mail, it will be deemed to
have been duly given on the delivery date noted on the return receipt thereof. If the
notice is transmitted by facsimile, it will be deemed to have been duly given upon the
receipt of the confirmation of such transmission from the fax machine.

	 	18.7	 	This Agreement shall be written in Chinese and executed in eight originals. Each
Party shall hold one original, and the remaining originals shall be filed for approval
or registration with applicable government agencies. Each original shall have equal
legal effect.

 

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Index to annexes:

1. Letter of Undertaking of the Original Shareholders

2. Article of Association of the Company

3. Letter of Disclosure

(The remainder of this page is intentionally left blank.)

 

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SIGNATURE PAGE

In witness whereof, the Parties have executed this Agreement on the date first written above.

Party A: Guangdong Meidiya Investment Co., Ltd.

Legal Representative (or Authorized Representative): /s/ Yinan Hu

Party B: Chengdu Mingxia Industrial Co., Ltd.

Legal Representative (or Authorized Representative): /s/ Fengxia Zou

Party C: Keping Lin

/s/ Keping Lin

Target Company: Beijing Fanhua Datong Investment Management Co., Ltd.

Legal Representative (or Authorized Representative): /s/ Keping Lin

 

 

 

Annex 1

Standard Premium Conversion Table

	 	 	 	 	 	 	 	 	 
	Insurance	 	 	 	Conversion	 	 	 
	category	 	Payment period	 	rate	 	 	Remarks
	Traditional personal life insurance
	 	Single payment and under
5  years	 	 	10	%	 	The aggregate amount of premiums from traditional personal life insurance policies with one
single premium payment or a payment period of less than 5 years (excluding five years),
universal life insurance and investment-linked insurance policies with one single premium payment
and their respective additional and supplemental parts shall not exceed 10% of the total
standard premiums.
	 
	 	5 years to 9 years	 	 	35	%	 
	 
	 	10 years to 14 years	 	 	65	%	 
	 
	 	15 years to 19 years	 	 	80	%	 
	 
	 	more than 20 years	 	 	100	%	 
	Universal life insurance
	 	Single payment, and the
additional and supplemental  parts	 	 	5	%	 
	 
	 	Basic part	 	 	50	%	 
	Investment-linked insurance
	 	Single payment, and  additional
and supplemental  parts	 	 	5	%	 
	 
	 	Basic part	 	 	50	%	 

 

 

 

Annex 2

Letter of Undertaking of the Original Shareholders

Each of the Original Shareholders undertakes irrevocably to Party A that:

	1.	 	Scope of Investment

Except with the prior written consent of Party A, such shareholder shall use its/his
shareholder’s rights in the Company to successfully cause and ensure that the Company’s
investments will be limited to the insurance intermediary industry only.

	2.	 	Adjustment of Equity Interests

If the Company fails to achieve the performance targets in 2009, 2010 and 2011, the Original
Shareholders agree to adjust its equity interests in the following manner:

	 	2.1	 	If the Company achieves lower than 50% of the net profit target of any of the years
2009, 2010 and 2011, the Original Shareholder shall transfer 15% of the equity interests
in the Company held by them to Party A at a consideration of RMB 1.00. If the Company
achieves higher than 50%, but lower than 60% of the net profit target in any of the three
years mentioned above, the Original Shareholders shall transfer 10% of the equity
interests in Datong held by them to Party A at a consideration of RMB 1.00.

	 	2.2	 	If the actual total net profit of the Company for the years 2009 to 2011 is less
than RMB96 million, the Original Shareholders shall transfer 15% of the equity interests
in the Company held by them to Party A at a consideration of RMB 1.00. However, if the
Company achieves lower than 60% of the net profit target for any year, the Original
Shareholders may transfer 5% less of the equity interests that they otherwise are
required to transfer to Party A for that year.

For example, if the net profit achieved in 2009 is higher than 60% of the performance target
for that year, the net profit achieved in each of 2010 and 2011 is lower than 50% of the
respective performance target for that year, and the total net profit achieved in those three
years is less than RMB96 million, the Original Shareholders shall transfer 35% of the equity
interests in the Company held by them to Party A at a consideration of RMB3.00. The
calculation formula is as follows: 0%+ 15%+15%+15%-5%-5%=35%.

 

 

 

	 	2.3	 	The actual fulfillment of the aforesaid performance targets shall be confirmed
jointly by Party A and Party C.

	3.	 	Security Deposit

	 	3.1	 	The Original Shareholders agree to irrevocably provide RMB180 million as a security
deposit to Party A within six (6) months after the Closing Date. Party A has the right
to return the security deposit to the Original Shareholders in installments based on the
number of sales teams, the number of productive sales agents and the monthly Standard
Premiums with a Payment Period of more than 5 Years of the Company and its subsidiaries,
provided, however, that each installment may not exceed RMB20 million. The particulars
are set forth in the following table:

	 	 	 	 	 
	Time	 	Installments	 	Conditions
	 
	 	 	 	 
	Before December 31,
2011

	 	First Installment
	 	1) 10 sales teams, 2) 200 productive sales agents, 3)  2 million standard premiums per month
	 
	 	 	 	 
	 

	 	Second Installment
	 	1) 20 sales teams, 2) 500 productive sales agents, 3) 5 million standard premium per month
	 
	 	 	 	 
	 

	 	Third Installment
	 	1) 30 sales teams, 2) 900 productive sales agents, 3) 9 million standard premiums per month
	 
	 	 	 	 
	 

	 	Fourth Installment
	 	1) 40 sales teams, 2) 1,300 productive sales agents, 3) 13 million standard premiums per month
	 
	 	 	 	 
	 

	 	Fifth Installment
	 	1) 50 sales teams, 2) 1,700 productive sales agents, 3) 17 million standard premiums per month
	 
	 	 	 	 
	 

	 	Sixth Installment
	 	1) 60 sales teams, 2) 2,100 productive sales agents, 3) 21 million standard premiums per month
	 
	 	 	 	 
	 

	 	Seventh Installment
	 	1) 70 sales teams, 2) 2,500 productive sales agents, 3) 25 million standard premiums per month
	 
	 	 	 	 
	 

	 	Eighth Installment
	 	1) 80 sales teams, 2) 2,900 productive sales agents, 3) 29 million standard premiums per month
	 
	 	 	 	 
	 

	 	Ninth Installment
	 	1) 90 sales teams, 2) 3,300 productive sales agents, 3) 33 million standard premiums per month

	 	3.2	 	If Party A does not return all the security deposit to the Original Shareholders
due to the Company’s failure to meet all of the above-mentioned requirements before
December 31, 2009, Party A will be entitled to keep the remaining amount of the security
deposit and will no longer be obligated to return it.

 

 

 

Annex 3

Articles of Association of the Company

 

 

 

Annex 4

Letter of Disclosure

Disclosure relating to:

Liabilities and title defects:

Pending litigations, claims, arbitrations, or other legal or administrative proceedings:

Defaults under existing material agreements or commitments:exh10_2.htm

     

    
      

      

    

    
      SEVENTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT

       

       

      This
SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (“Amendment”), dated May 15,
2009, is among Resource
America, Inc., a Delaware corporation (“Borrower”), TD BANK, N.A., a national
banking association, in its capacity as agent (“Agent”), TD BANK, N.A., a national
banking association, in its capacity as issuing bank (“Issuing Bank”) and each
of the financial institutions which are now or hereafter identified as Lenders
on Schedule A (as such Schedule may be amended, modified or replaced from time
to time) attached to the Loan Agreement (as defined below) (each such financial
institution, individually a “Lender” and collectively all
“Lenders”).

       

      BACKGROUND

       

      A.           Pursuant
to the terms of a certain Loan and Security Agreement dated May 24, 2007 among
Borrower, Agent and Lenders (as the same has been or may be supplemented,
restated, superseded, amended or replaced from time to time, the “Loan
Agreement”), Lenders made available to Borrower, inter alia, a
revolving line of credit (the “Loans”).  All capitalized terms used
herein without further definition shall have the respective meaning set forth in
the Loan Agreement and all other Loan Documents.

       

      B.           The
Loans are secured by, inter alia, continuing
perfected security interests in the Collateral.

       

      C.           Borrower
has requested that Agent and Lenders modify, in certain respects, the terms of
the Loan Agreement and Agent and Lenders have agreed to such modifications in
accordance with and subject to the satisfaction of the conditions
hereof.

       

      NOW,
THEREFORE, with the foregoing Background incorporated by reference and intending
to be legally bound hereby, the parties agree as follows:

       

      1.           Amendments to Loan
Agreement.  On the Seventh Amendment Effective
Date:

       

      a.           Section
1 of the Loan Agreement shall be amended by inserting “Dissolving Entity”
“Interest Coverage
Ratio”, “Leaf
Capital Event”, “Leaf Entity”, “Miscellaneous Excluded
Subsidiary”, “Real Estate Venture
Investments”, “Seventh Amendment,”
“Seventh Amendment
Effective Date” and “St. Cloud Investment”
as new definitions, reading in full as follows:

       

      “Dissolving Entity”
shall mean each of RAI Acquisition Corp., Resource Banking Advisory and
Management, Inc., Resource Properties XXXV, Inc., RRE Highland Lodge Leaseco,
LLC, and Resource Financial Advisors, LLC.

       

      “Interest Coverage
Ratio” – For any period, the ratio of (i) Consolidated Cash Flow
to  (ii) Consolidated Interest Expense, all as determined in
accordance with GAAP.

       

      “Leaf Capital
Event” – The issuance of any Subordinated Debt (other than any
subordinated promissory note executed by Leaf Financial Corporation,
a

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Delaware
corporation, in favor of Resource Leasing, Inc., a Delaware corporation) or the
issuance of any Capital Stock by Leaf.

       

      “Leaf
Entity”  - Each direct or indirect Subsidiary of Leaf and each
direct or indirect Subsidiary of LEAF Asset Management, LLC, a Delaware limited
liability company. .

       

      “Miscellaneous Excluded
Subsidiary” – Each of Chadwick Securities, Inc., Resource
Europe Management Limited, RCP Foxglove Manager, Inc., RCP Santa Fe Manager,
Inc., and RCP Howell Bridge Manager, Inc. and Apidos Select Corporate Credit
Fund GP, LLC.

       

      “Real Estate Venture
Investments” – Collectively, those certain debt and equity interests
(including Capital Stock), owned by Borrower or a Subsidiary Guarantor in
entities engaged in the business of investment in or acquisition, development,
and resale of real estate, listed on Schedule I.

       

       “Seventh Amendment” –
The Seventh Amendment to Loan and Security Agreement dated May __, 2009 among
Borrower, Agent, Issuing Bank and Lenders.

       

      “Seventh Amendment Effective
Date” – The date when all conditions precedent to the effectiveness of
the Seventh Amendment have been satisfied.

       

      “St. Cloud
Investment”  -- That certain subordinate loan in the
approximate principal amount of $694,000 held by Resource Properties VIII, Inc.
and listed as Item 5 under the title “Legacy Assets” in Schedule I.

       

      b.           Section
1 of the Loan Agreement shall be amended by deleting the definitions of Adjusted Revolving Credit
Base Rate, Excluded Subsidiary,
L/C Sublimit,
Leaf, Maximum Revolving Credit
Amount and Revolving Credit Maturity
Date and replacing each as follows:

       

      Adjusted Revolving Credit
Base Rate – The Base Rate plus five hundred
(500) basis points; provided that the Adjusted Revolving Credit Base Rate shall
not be less than ten percent (10%) per annum.

       

      Excluded Subsidiary
-  Each Subsidiary (whether direct or indirect) of Borrower, which is
(i) prohibited from guaranteeing the Obligations pursuant to a financing
agreement related to such Subsidiary’s Indebtedness, (ii) a Leaf Entity, or
(iii) a Miscellaneous Excluded Subsidiary, and which prohibition is confirmed in
writing by counsel to Borrower.  Excluded Subsidiaries are set forth
on Schedule C attached hereto, as such Schedule may be amended, supplemented,
replaced or restated from time to time.

       

      
        	
                 
      

              	
                L/C Sublimit –
      An amount equal to ten percent (10%) of the Maximum Revolving Credit
      Amount then in effect.

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                Leaf – Leaf
      Financial Corporation, a Delaware
corporation.

              

      

       

      Maximum Revolving Credit
Amount – Subject to Section 2.9(b), the sum of Thirty-Five Million
Dollars ($35,000,000); provided however that the Maximum Revolving Credit Amount
shall, irrespective of any permanent reductions to the Maximum Revolving Credit
Amount pursuant to Section 2.9, automatically and permanently reduce by Eight
Hundred Fifty Thousand Dollars ($850,000) on the fifteenth day of each month
commencing June 15, 2009.

       

      Revolving Credit Maturity
Date – October 15, 2010.

       

      c.           The
Loan Agreement shall be amended by deleting Section 2.1(a)(i) and replacing it
as follows:

       

      (i)
Subject to the terms and conditions of this Agreement, each Lender hereby
severally establishes for the benefit of Borrower a revolving credit facility
(collectively, the “Revolving Credit”) which shall include Letters of Credit
issued by Issuing Bank and cash Advances extended by Lenders to or for the
benefit of Borrower from time to time hereunder (“Revolving Credit
Loans”).  The aggregate principal amount of all Revolving Credit
Loans, unreimbursed Letters of Credit plus outstanding and undrawn Letters of
Credit shall not, at any time, exceed the Borrowing Base.  Subject to
such limitation, the outstanding balance of Revolving Credit Loans may fluctuate
from time to time, to be reduced by repayments made by Borrower, to be increased
by future Revolving Credit Loans which may be made by Lenders and, subject to
the provisions of Sections 2.1(d) and 8 below, shall be due and payable on
the Revolving Credit Maturity Date. If the aggregate principal amount of all
Revolving Credit Loans, unreimbursed Letters of Credit plus outstanding and
undrawn Letters of Credit at any time exceeds the Borrowing Base
(“Overadvance”), Borrower shall within five (5) Business Days notice from Agent,
repay the Overadvance in full (provided that Borrower shall repay any
Overadvance existing on the date of a reduction in the Maximum Revolving Credit
Amount on that date).

       

      d.           The
Loan Agreement shall be amended by deleting Section 2.6 and replacing it as
follows:

       

      2.6           Interest:

       

      (a)           The
unpaid principal balance of cash Advances under the Revolving Credit shall bear
interest, subject to the terms hereof, at a per annum rate equal to the Adjusted
Revolving Credit Base Rate.

       

      (b)           Changes
in the interest rate applicable to Base Rate Loans shall become effective on the
same day that there is a change in the Base Rate.

       

      (c)           Interest
on Base Rate Loans shall be payable monthly, in arrears, on the first day of
each month, beginning on the first day of the first full calendar month after
the Closing Date, and on the Revolving Credit Maturity Date.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (d)           
Borrower shall no longer have the option to request or continue LIBOR Rate
Loans.

       

      e.           Section
2.8 of the Loan Agreement shall be amended by deleting subsection (b) and
replacing it as follows:

       

      (b)           Borrower
shall pay to Agent, for the benefit of Lenders in accordance with each Lender’s
Pro Rata Percentage, letter of credit fees at a per annum rate equal to five
percent (5.00%) of the average daily maximum amount available to be drawn under
each Letter of Credit on the first day of each calendar quarter in
arrears.  Such fees are the “L/C Fees.”

       

      f.           Section
2.8 of the  Loan Agreement shall be amended by insertion of a new
subsection (f),  reading in full as follows:

       

      “(f)  On
December 31, 2009 (or upon the occurrence of any Event of Default prior to
December 31, 2009), Borrower shall pay to Agent for the benefit of Lenders in
accordance with each Lender’s Pro Rata Percentage, $500,000 as the second
installment of the extension fee described in Paragraph 2 of the Seventh
Amendment, provided that if the Obligations have been paid in full and
terminated prior to December 31, 2009 and no Event of Default has occurred prior
to such date, the second installment shall not be due or payable.”

       

      g.           Section
2.9 of the Loan Agreement shall be amended by deleting subsection (b) and
replacing it as follows:

       

      (i)
Borrower may, upon five (5) Business Days prior notice, permanently reduce the
Maximum Revolving Credit Amount; provided that, any such reduction shall be in a
minimum amount of One Million Dollars ($1,000,000) and integral multiples of
Five Hundred Thousand Dollars ($500,000).

       

      (ii) Each
mandatory prepayment under Section 2.9(c) and (d) shall permanently reduce the
Maximum Revolving Credit Amount by an amount equal to such
prepayment.

       

      h.           Section
2.9 of the Loan Agreement shall be amended by insertion of new subsections (c)
and (d), reading in full as follows:

       

      (c) Upon
(i) the issuance by Borrower or any Subsidiary Guarantor of any Subordinated
Debt; (ii) the issuance by Borrower or any Subsidiary Guarantor of any Capital
Stock (other than (x) Capital Stock issued to Borrower or any other Subsidiary
Guarantor and (y) Capital Stock issued pursuant to Borrower’s equity
compensation plans in amounts and on terms reasonably consistent with past
practices), or (iii) subject to any limitation in Section 7.1(a), any Asset Sale
by Borrower or any Subsidiary Guarantor (each of the foregoing a “Mandatory
Prepayment Event”), Borrower shall on the date of such Mandatory Prepayment
Event prepay the Revolving Credit Loans by an amount equal to thirty percent
(30%) of the aggregate net proceeds (i.e., gross
proceeds less the reasonable and

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      customary
costs and expenses of any such incurrence, issuance or Asset Sale) received by
Borrower or Subsidiary Guarantor from such Mandatory Prepayment Event; provided
that (x) in the case of a sale of an ownership interest in the National Press
Building by Press Building, LLC, seventy-five percent (75%)of the net proceeds
(i.e., gross proceeds less the reasonable and customary costs and expenses of
such sale) shall be applied by Borrower to prepay the Revolving Credit
Loans.

       

      (d) Upon
the occurrence of any Leaf Capital Event, Borrower shall prepay the Revolving
Credit Loans by an amount equal to one hundred percent (100%) of the net
proceeds (i.e., gross proceeds less the reasonable and customary costs and
expenses of such Leaf Capital Event) in excess of Ten Million Dollars
($10,000,000) received by Leaf; provided that the aggregate amount payable under
this clause (d) shall not exceed Fifteen Million Dollars
($15,000,000).

       

      i.           Section
3.1 of the Loan Agreement shall be amended by deleting subsection (xiii) and
replacing it as follows:

       

       (xiii)
Investment
Property – All Investment Property of Borrower consisting of Sponsored
CDO Equity Interests, all Pledged Securities, the Capital Stock of Subsidiary
Guarantors and other Subsidiaries as identified in the Subsidiary Collateral
Pledge Agreements, and Real Estate Venture Investments.

       

      j.           Section
3.3(a) of the Loan Agreement shall be amended by inserting the following at the
end of the paragraph:

       

      Borrower
shall complete all actions necessary for Agent, on behalf of Lenders, to obtain
a perfected security interest in the Real Estate Venture Investments (except for
the St. Cloud Investment) within fifteen (15) days of the Seventh Amendment
Effective Date.

       

      k.           Section
5 of the Loan Agreement shall be amended by insertion of a new Section 5.26,
reading in full as follows:

       

      5.26           Miscellaneous Excluded
Subsidiary. Each Miscellaneous Excluded Subsidiary (except for Chadwick
Securities, Inc., Apidos Select Corporate Credit Fund GP, LLC and Resource
Europe Management Limited) owns assets with an aggregate value of less than
$10,000.

       

      l.           Section
6.8 of the Loan Agreement shall be amended by deleting subsections (a), (b) and
(c) and replacing each as follows:

       

      (a) Intentionally
omitted.

       

      (b) Interest Coverage
Ratio – Borrower shall maintain an

      Interest
Coverage Ratio, to be tested quarterly as of each fiscal quarter end on a
rolling four quarter basis, of not less than 1.25 to 1.0.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

       

       

      
        (c) Consolidated Funded Debt to
Net Worth Ratio – Borrower shall maintain a Consolidated Funded Debt to
Net Worth Ratio, to be tested as of each fiscal 

        quarter
end, of not greater than 0.5 to 1.0.

         

      

      m.           Section
6 of the Loan Agreement shall be amended by insertion of a new Section 6.24,
reading in full as follows:

       

      6.24           Dissolving
Entities.  Borrower shall cause each Dissolving Entity to
dissolve and be fully wound-up within sixty (60) days of the Seventh Amendment
Effective Date.  Borrower shall promptly provide Agent with written
evidence of such dissolution.

       

      n.           Section
7.4(a) of the Loan Agreement shall be amended by inserting the following after
the word “purposes” at the end of such Section:

       

      “; or
(iii) such transaction is a transaction referenced in Section 2.9(c)(i) or
Section 2.9(c)(ii) of this Agreement.”

       

      o.           Schedule
A to the Loan Agreement shall be replaced in its entirety with Schedule A
as attached to this Amendment.

       

      p.           Schedule
C to the Loan Agreement shall be replaced in its entirety with Schedule C
as attached to this Amendment.

       

      q.           The
Loan Agreement shall be amended by insertion of Schedule I as attached to this
Amendment.

       

      2.           Extension
Fee.  In consideration for the modifications to the Loan
Agreement  made herein on the terms described in this Amendment,
Borrower shall pay to Agent for the benefit of Lenders in accordance with each
Lender’s Pro Rata Percentage, an extension fee of One Million Five Hundred
Thousand Dollars ($1,500,000).  The extension fee shall be payable in
two installments.  The first installment of One Million Dollars
($1,000,000) shall be non-refundable and fully earned and due on the Seventh
Amendment Effective Date.  The second installment of Five Hundred
Thousand Dollars ($500,000) shall, except as set forth in Section 2.8(f) of the
Loan Agreement, be non-refundable and fully earned on the Seventh Amendment
Effective Date and payable as described in Section 2.8(f) of the Loan
Agreement.

       

      3.           Representations and
Warranties.  Borrower warrants and represents to Agent and
Lenders that:

       

      a.           Prior
Representations. Except as set forth on Schedule B to this Amendment,
Borrower, by its execution of this Amendment, reconfirms all warranties and
representations made to Lenders under the Loan Agreement and the other Loan
Documents and restates such warranties and representations as of the date
hereof, all of which shall be deemed continuing until all of the obligations due
to Secured Parties are indefeasibly paid and satisfied in full.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      b.           Authorization. The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of the transactions herein contemplated (i) are

       

      and will
be within its powers, (ii) have been duly authorized by all necessary action on
behalf of Borrower and (iii) are not and will not be in contravention of any
order of court or other agency of government, of law or of any indenture,
agreement or undertaking to which Borrower is a party or by which the property
of Borrower is bound, or be in conflict with, result in a breach of or
constitute (with due notice and/or lapse of time) a default under any such
indenture, agreement or undertaking, or result in the imposition of any lien,
charge or encumbrance of  any nature on any of the properties of the
Borrower.

       

      c.           Valid, Binding and
Enforceable. This Amendment and any assignment or other instrument,
document or agreement executed and delivered in connection herewith, will be
valid, binding and enforceable in accordance with their respective
terms.

       

      d.           No
Default.  No Default or Event of Default exists.

       

      e.           Real Estate Venture
Investments. Except for the Real Estate Venture Investments,
Borrower and any Subsidiary Guarantor are otherwise prohibited from granting
security interests to Agent for the benefit of Lenders in any other debt and
equity investments owned by Borrower or a Subsidiary Guarantor in entities
engaged in the business of investment in, or acquisition, development or resale
of real estate.

       

      4.           Ratification of Loan
Documents.  This Amendment is hereby incorporated into and made
a part of the Loan Agreement and all other Loan Documents respectively, the
terms and provisions of which, except to the extent modified by this Amendment
are each ratified and confirmed and continue unchanged in full force and
effect.  Any reference to the Loan Agreement and all other Loan
Documents respectively in this or any other instrument, document or agreement
related thereto or executed in connection therewith shall mean the Loan
Agreement and all other Loan Documents respectively as amended by this
Amendment.  As security for the payment of the Obligations, and
satisfaction by Borrower of all covenants and undertakings contained in the Loan
Agreement, Borrower hereby confirms its prior grant to Agent, for the ratable
benefit of Secured Parties, of a continuing first lien on and security interest
in, upon and to all of Borrower’s now owned or hereafter acquired, created or
arising Collateral as described in Section 3 of the Loan Agreement.

       

      5.           Confirmation of
Indebtedness. Borrower confirms and acknowledges that as of the close of
business on May 14, 2009, it is indebted to Agent and Lenders under the Loan
Documents in the aggregate principal amount of $43,600,000 without any
deduction, defense, setoff, claim or counterclaim of any nature as of the date
of this Amendment, plus all fees, costs and Expenses incurred to date in
connection with the Loan Documents.

       

      6.           Confirmation of Subsidiary
Guarantors.  By its signature below, each Subsidiary Guarantor
hereby consents to and acknowledges the terms and conditions of this Amendment
and agrees that its Surety and Guaranty Agreement dated May 24, 2007 is ratified
and confirmed and shall continue in full force and effect and shall continue to
cover all obligations of Borrower outstanding from time to time under the Loan
Agreement as amended hereby.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      7.           Effectiveness
Conditions.  This Amendment shall become effective upon the
satisfaction of the following conditions:

       

             
a.           Execution
and delivery of this Amendment by the parties hereto;

       

      b.           Execution
and delivery by Borrower and each Subsidiary Guarantor of an Affirmation and
Amendment to Loan Documents, in form and substance satisfactory to
Agent;

       

      c.           Resolutions
of Borrower and each Subsidiary Guarantor authorizing the execution, delivery
and performance of this Amendment and any amendment or modification to any other
Loan Document;

       

      d.           Payment
by Borrower of all of Agent’s Expenses;

       

      e.           Payment
by Borrower to Agent for the ratable benefit of Lenders of the first installment
of the extension fee described in Section 2 of this Amendment, of which $333,334
is for the account of U.S. Bank, National Association and $666,666 is for the
account of TD Bank, N.A., and

       

      f.           A
confirmation letter from independent outside counsel with regard to Excluded
Subsidiaries.

       

      8.           Governing
Law.  THIS AMENDMENT, AND ALL RELATED AGREEMENTS AND DOCUMENTS,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF
THE COMMONWEALTH OF PENNSYLVANIA. THE PROVISIONS OF THIS AMENDMENT AND ALL OTHER
AGREEMENTS AND DOCUMENTS REFERRED TO HEREIN ARE TO BE DEEMED SEVERABLE, AND THE
INVALIDITY OR UNENFORCEABILITY OF ANY PROVISION SHALL NOT AFFECT OR IMPAIR THE
REMAINING PROVISIONS WHICH SHALL CONTINUE IN FULL FORCE AND EFFECT.

       

      9.           Modification.  No
modification hereof or any agreement referred to herein shall be binding or
enforceable unless in writing and signed by Borrower and Agent or Lenders, as
required under the Loan Agreement.

       

      10.           Duplicate
Originals:  Two or more duplicate originals of this Amendment
may be signed by the parties, each of which shall be an original but all of
which together shall constitute one and the same instrument.

       

      11.           Release.  As
further consideration for the agreement of Agent, Issuing Bank and Lenders to
enter into this Amendment, Borrower (and by its execution below, each Subsidiary
Guarantor) hereby waives, releases, and discharges Agent, Issuing Bank and each
Lender, all affiliates of Agent, Issuing Bank and each Lender and all of the
directors, officers, employees, attorneys and agents of Agent, Issuing Bank and
each Lender and all affiliates of such Persons, from any and all claims,
demands, actions or causes of action existing as of the date hereof, arising out
of or in any way relating to this Amendment, the Loan Agreement, the Loan
Documents and/or any documents, agreements, instruments, dealings or other
matters connected with this Amendment, the Loan Agreement, the Loan Documents or
the administration thereof.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      12.           Waiver of Jury
Trial:  BORROWER, AGENT AND EACH LENDER EACH HEREBY WAIVE ANY
AND ALL RIGHTS EACH MAY HAVE TO A JURY TRIAL IN CONNECTION
WITH ANY LITIGATION, PROCEEDING OR COUNTERCLAIM ARISING WITH RESPECT TO RIGHTS
AND OBLIGATIONS OF THE PARTIES HERETO OR UNDER THE LOAN DOCUMENTS OR WITH
RESPECT TO ANY CLAIMS ARISING OUT OF ANY DISCUSSIONS, NEGOTIATIONS OR
COMMUNICATIONS INVOLVING OR RELATED TO ANY PROPOSED RENEWAL, EXTENSION,
AMENDMENT, MODIFICATION, RESTRUCTURE, FORBEARANCE, WORKOUT, OR ENFORCEMENT OF
THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS.

       

      

       

      [Signature
Pages to Follow]

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      IN
WITNESS WHEREOF, the undersigned parties have executed this Amendment the day
and year first above written.

       

      

      

      BORROWER:

      Resource
America, Inc.

      

      

      By: /s/ Thomas C. Elliott                                                                

      Name:
Thomas C. Elliott

      Title:  
Senior Vice President - Finance & Operations

      

      

      AGENT:

      TD BANK, N.A. (successor by
merger to Commerce Bank, N.A.)

      

      

      By:  /s/ Gerard L. Grady                                                                                                                                  

      Name: 
Gerard L. Grady

      Title:    Senior
Vice President

      

      

      LENDERS:

      TD BANK, N.A. (successor by
merger to Commerce Bank, N.A.),
as
Lender

       

      
        By:  /s/ Gerard L. Grady                                                                                                                                  

        Name: 
Gerard L. Grady

        Title:    Senior
Vice President

      

      U.S.
Bank, National Association, as Lender

       

      
        By:  /s/ Jsseph L. Svehla                                                                                                                                  

        Name: 
Joseph L. Svehla

        Title:    Vice
President

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AGREED TO AND
ACCEPTED:

      

      SURETIES:

      

      Apidos
Capital Management, LLC

      

      By: /s/ Thomas C. Elliott                                                                

      Name:
Thomas C. Elliott

      Title:  
Vice President & Chief Financial Officer

      

      

      Chesterfield
Mortgage Investors, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: 
Alan F. Feldman

      Title:   
President

      

      

      Coredo
Capital Management, LLC

      

      By: 
/s/ Jeffrey Blomstrom                                                                                                                            

      Name:  Jeffrey
Blomstrom

      Title:    President

      

      

      Ischus
Capital Management, LLC

      

      By: /s/ Thomas C. Elliott                                                                

      Name: Thomas
C. Elliott

      Title:   Chief
Financial Officer

      

      

      

      RAI
Ventures, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name: 
Thomas C. Elliott

      Title:    Senior
Vice President

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      RCP
Financial, LLC

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Credit Management, LLC

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Chief
Financial Officer

      

      

      Resource
Capital Manager, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Senior
Vice President - Finance & Operations

      

      

      Resource
Capital Investor, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Vice
President - Finance

      

      

      Resource
Capital Partners, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:    Senior
Vice President

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Resource
Credit Partners GP, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Chief
Financial Officer

       

       

      Resource
Financial Institutions Group,  Inc.

       

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Vice
President - Finance & Treasurer

      

       

      Resource
Financial Fund Management, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:   
Senior Vice President and Chief Financial Officer

      

      

      Resource
Housing Investors I, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  
President

      

      

      Resource
Housing Investors II, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Housing Investors III, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  
President

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Resource
Housing Investors IV, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

       

      Resource
Leasing, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Treasurer

      

      

      Resource
Programs, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties VIII, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties XIV, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties XVII, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Resource
Properties XXIV, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

       

       

      Resource
Properties XXV, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties XXVI, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties XXX, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  
President

      

      

      Resource
Properties XXXI, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  
President

      

      

      Resource
Properties XXXIII, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Resource
Properties XL, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

       

      Resource
Properties XLI, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Properties XLIX, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  
President

      

      

      Resource
Properties 54, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: Alan
F. Feldman

      Title:  President

      

      
         

        Resource
Real Estate, Inc.

        

        By: 
/s/ Alan F. Feldman                                                                                                                               

        Name:  Alan
F. Feldman

        Title:   
President

        
 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Resource
Real Estate Funding, Inc.

      

      By: /s/ Thomas C. Elliott                                                                

      Name:  Thomas
C. Elliott

      Title:    Senior
Vice President

      

      

      Resource
Real Estate Holdings, Inc.

      

      By: 
/s/ Thomas C. Elliott                                                                                                                               

      Name:  Thomas
C. Elliott

      Title:   
Vice President

      

      

      Resource
Rittenhouse, Inc.

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      Resource
Real Estate Management, LLC

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
President

      

      

      RRE1
Duraleigh Member, LLC

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name: 
Alan F. Feldman

      Title:   
Senior Vice President

      

      

      RRE2
Duraleigh Member, LLC

      

      By: 
/s/ Alan F. Feldman                                                                                                                               

      Name:  Alan
F. Feldman

      Title:   
Senior Vice President

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        

        RRE
Avalon Member, LLC

        

        

        By: 
/s/ Alan F. Feldman                                                                                                                               

        Name:  Alan
F. Feldman

        Title:   
Senior Vice President

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

        SCHEDULE
“A”

      

      
         

        
          
            	
                     

                    Lenders

                  	 	
                    Pro
      Rata

                    Percentage

                  	 	
                    Revolving
      Credit

                    Pro Rata Share as of May 15,
      2009

                  
	 
      
	
                    TD
      Bank, N.A.

                  	 	
                    66.66666666%

                  	 	
                    $23,333,333.00

                  
	 	 	 	 	 
	
                    U.S.
      Bank, National Association

                  	 	
                    33.33333334%

                  	 	
                    $11,666,667.00

                  
	 	 	 	 	 
	Total:	 	
                    100%

                  	 	
                    $35,000,000

                  

          

        

        

        (Schedule
A to Loan and Security Agreement)

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        SCHEDULE “C”

         

        List of Subsidiaries Not Guarantying 

        

        
          	
                   
      

                	
                  1.

                	
                  Chadwick Securities,
  Inc.

                

        

        
          	
                   
      

                	
                  2.

                	
                  Resource Europe Management
      Limited

                

        

        
          	
                   
      

                	
                  3.

                	
                  Resource RSI Phase I,
  LLC

                

        

        
          	
                   
      

                	
                  4.

                	
                  Resource RSI Phase II,
  LLC

                

        

        
          	
                   
      

                	
                  5.

                	
                  RCP Nittany Pointe Manager,
      Inc.

                

        

        
          	
                   
      

                	
                  6.

                	
                  RCP Chinoe Creek Manager,
    Inc.

                

        

        
          	
                   
      

                	
                  7.

                	
                  RCP Fountains GP,
  Inc.

                

        

        
          	
                   
      

                	
                  8.

                	
                  RCP Portland Courtyard Manager, Inc.

                

        

        
          	
                   
      

                	
                  9.

                	
                  RCP Albuquerque Manager,
    Inc.

                

        

        
          	
                   
      

                	
                  10.

                	
                  RCP Avalon Manager,
  Inc.

                

        

        
          	
                   
      

                	
                  11.

                	
                  RCP Falls at Duraleigh Manager,
      Inc.

                

        

        
          	
                   
      

                	
                  12.

                	
                  RCP Sage Canyon Manager,
    Inc.

                

        

        
          	
                   
      

                	
                  13.

                	
                  RCP Cuestas Manager,
  Inc.

                

        

        
          	
                   
      

                	
                  14.

                	
                  RCP Holdco I Manager,
  Inc.

                

        

        
          	
                   
      

                	
                  15.

                	
                  RCP Reserves Manager,
  Inc.

                

        

        
          	
                   
      

                	
                  16.

                	
                  RCP Foxglove Manager,
  Inc.

                

        

        
          	
                   
      

                	
                  17.

                	
                  RCP Santa Fe Manager, Inc.

                

        

        
          	
                   
      

                	
                  18.

                	
                  RCP Regents Center Manager,
      Inc.

                

        

        
          	
                   
      

                	
                  19.

                	
                  RCP Highland Lodge Manager,
      Inc.

                

        

        
          	
                   
      

                	
                  20.

                	
                  RCP Grove Manager,
  LLC

                

        

        
          	
                   
      

                	
                  21.

                	
                  RCP Howell Bridge Manager,
    Inc.

                

        

        
          	
                   
      

                	
                  22.

                	
                  RCP Heritage Lake Manager,
    LLC

                

        

        
          	
                   
      

                	
                  23.

                	
                  RCP Westchase Wyndham Manager,
      LLC

                

        

        
          	
                   
      

                	
                  24.

                	
                  RCP Pear Tree Manager,
  LLC

                

        

        
          	
                   
      

                	
                  25.

                	
                  RCP Wind Tree Manager,
  LLC

                

        

        
          	
                   
      

                	
                  26.

                	
                  RCP Chenal Brightwaters Manager,
  LLC

                

        

        
          	
                   
      

                	
                  27.

                	
                  Resource Asset Management,
    LLC

                

        

        
          	
                   
      

                	
                  28.

                	
                  LEAF Asset Management,
  LLC

                

        

        
          	
                   
      

                	
                  29.

                	
                  LEAF Commercial Finance Income Fund I,
      LP

                

        

        
          	
                   
      

                	
                  30.

                	
                  LEAF Commercial Finance Income Fund II,
      LP

                

        

        
          	
                   
      

                	
                  31.

                	
                  FLI Holdings,
  Inc.

                

        

        
          	
                   
      

                	
                  32.

                	
                  LEAF Financial
  Corporation

                

        

        
          	
                   
      

                	
                  33.

                	
                  LEAF Commercial Finance Co,
    LLC

                

        

        
          	
                   
      

                	
                  34.

                	
                  LEAF Funding,
      Inc.

                

        

        
          	
                   
      

                	
                  35.

                	
                  LEAF Institutional Direct Management,
      LLC

                

        

        
          	
                   
      

                	
                  36.

                	
                  Resource Capital Funding II,
      LLC

                

        

        
          	
                   
      

                	
                  37.

                	
                  LEAF Ventures,
  LLC

                

        

        
          	
                   
      

                	
                  38.

                	
                  Merit Capital Manager,
  LLC

                

        

        
          	
                   
      

                	
                  39.

                	
                  Merit Capital Advance,
  LLC

                

        

        
          	
                   
      

                	
                  40.

                	
                  LEAF Capital Management,
    Inc.

                

        

        
          	
                   
      

                	
                  41.

                	
                  Resource Commercial Mortgages,
      Inc.

                

        

        
          	
                   
      

                	
                  42.

                	
                  Resource Properties XXXV,
    Inc.

                

        

        
          	
                   
      

                	
                  43.

                	
                  RCP Magnolia
      Manager, LLC 

                

        

        
          	
                   
      

                	
                  44.

                	
                  RCP West Wind Manager, LLC
  

                

        

        
          	
                   
      

                	
                  45.

                	
                  RCP Ryan’s Crossing
      Manager, LLC 

                

        

        
          	
                   
      

                	
                  46.

                	
                  RCP Memorial Towers Manager, LLC
      

                

        

        
          	
                   
      

                	
                  47.

                	
                  RCP Cypress Landing Manager,
      LLC

                

        

        
          	
                   
      

                	
                  48.

                	
                  Cypress Landing Partners, LLC
    

                

        

        
          	
                   
      

                	
                  49.

                	
                  RCP Island Tree Manager, LLC
    

                

        

        
          	
                   
      

                	
                  50.

                	
                  Island Tree Partners, LLC
  

                

        

        
          	
                   
      

                	
                  51.

                	
                  RCP Villas Manager,
LLC

                

        

        
          	
                   
      

                	
                  52.

                	
                  RCP Coach Lantern Manager, LLC
    

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        
          	
                   
      

                	
                  53.

                	
                  RCP Foxcroft Manager, LLC
  

                

        

        
          	
                   
      

                	
                  54.

                	
                  RCP Tamarlane Manager, LLC
  

                

        

        
          	
                   
      

                	
                  55.

                	
                  RCP Park Hill Manager, LLC
  

                

        

        
          	
                   
      

                	
                  56.

                	
                  RCP Bent Oaks Manager, LLC
  

                

        

        
          	
                   
      

                	
                  57.

                	
                  RCP Cape Cod Manager, LLC
  

                

        

        
          	
                   
      

                	
                  58.

                	
                  RCP Woodland Hills Manager, LLC
      

                

        

        
          	
                   
      

                	
                  59.

                	
                  RCP Woodhollow Manager, LLC
  

                

        

        
          	
                   
      

                	
                  60.

                	
                  Merit Processing, LLC

                

        

        
          	
                   
      

                	
                  61.

                	
                  LEAF Ventures II, LLC
  

                

        

        
          	
                   
      

                	
                  62.

                	
                  Prompt Payment, LLC
  

                

        

        
          	
                   
      

                	
                  63.

                	
                  LEAF Commercial Finance Fund, LLC
      

                

        

        
          	
                   
      

                	
                  64.

                	
                  RRE Oak Park Leaseco, LLC
  

                

        

        
          	
                   
      

                	
                  65.

                	
                  RRE Highland Lodge Leaseco,
    LLC

                

        

        
          	
                   
      

                	
                  66.

                	
                  RAI Acquisition Corp.
  

                

        

        
          	
                   
      

                	
                  67.

                	
                  Resource Banking Advisory and Management, Inc.
      

                

        

        
          	
                   
      

                	
                  68.

                	
                  Apidos Select Corporate Credit Fund GP, LLC

                

        

        
          	
                   
      

                	
                  69.

                	
                  Resource Financial Advisors, LLC
      

                

        

        
          	
                   
      

                	
                  70.

                	
                  RRE VIP Borrower, LLC
  

                

        

        
          	
                   
      

                	
                  71.

                	
                  RRE VIP International Village,
      LLC

                

        

        
          	
                   
      

                	
                  72.

                	
                  RRE VIP Regency Park,
  LLC

                

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        SCHEDULE “I”

         

        Real Estate Venture Investments

        

        Legacy
Assets

        1. 
Countryside -
$2MM loan from Resource
Properties XXXI, Inc. to Hopmeadow Development, Inc.  RAI has
pledged its equity interests in RP XXXI to Lenders.

        2. 
Barker Lofts -
$135K loan from RAI to Barker Lofts, LLC.

        3. 
Met Fund XXVI -
 Resource
Properties XXVI, Inc. owns an interest in The Metropolitan Fund: Dover
Pension Investors – 1986 (“Met Fund”).  Met Fund owns boat
slips.

        4. 
National Press
- RAI is the
Class A Member of Press Building, LLC.   The Class B Member is
Trust II - Press Building, LLC.  Can pledge the Economic Interests of the
Class A Member. 

        5. 
St. Cloud –
Subordinate loan held by Resource
Properties VIII, Inc.  RAI has pledged its equity interest in
RP VIII to Lenders.

        6. 
Elkins – $1.4MM
loan from Resource
Properties XVII, Inc. to Elkins West Associates secured by a
DOT.  RAI has pledged its equity interests in RP XVII to
Lenders.

         

        Joint
Ventures

        1. 
HUD MF 2007 -
RRE D2R2
2007-1, LLC can pledge its interests in RRE HUD MF 2007,
LLC.

          

        RRE Sponsored
Funds

        1. 
Resource Real Estate
Investors, L.P. – Resource Capital
Partners, Inc. can pledge its LP interests.

        2. 
Resource Real Estate
Investors II, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests.

        3. 
Resource Real Estate
Investors III, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests.

        4. 
Resource Real Estate
Investors IV, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests.

        5. 
Resource Real Estate
Investors V, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests.

        6. 
Resource Real Estate
Investors 6, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests. 

        7. 
Resource Real Estate
Investors 7, L.P. - Resource Capital
Partners, Inc. can pledge its LP interests.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]