Document:

Exhibit 10(e) Amendment No. 1 to Amended & Restated Trust Agreement

    EXHIBIT
      10(e)  

     

    
      AMENDMENT
        NUMBER ONE

      TO
        THE

      AMENDED
        AND RESTATED TRUST AGREEMENT

      

      

      In
        accordance with Section 14 of the trust
        agreement for the Amended and Restated Trust Under Peoples Energy Corporation
        (the "Company") Directors Deferred Compensation Plan, Directors Stock And
        Option
        Plan, Executive Deferred Compensation Plan, and Supplemental Retirement Benefit
        Plan, effective March 1, 2004 (the
        "Trust Agreement"), the Company and The Northern Trust Company (the "Trustee")
        hereby amend the Trust Agreement, effective July 24,
        2006 as
        follows: 

      

      	1.  	
              Section
                1(f) of the Trust Agreement is hereby amended by deleting the first
                sentence and replacing it with the
                following:

            

       

      Upon
        a
        Change of Control (as defined herein), the Company shall, as soon as possible,
        but in no event longer than 10 business days following the Change of Control,
        make an irrevocable contribution to the Trust in an amount that is sufficient
        to
        pay each Participant or Beneficiary the benefits to which such Participant
        or
        Beneficiary would be entitled pursuant to the terms of the Plans as of the
        date
        on which such Change of Control occurred, except to the extent the Company
        receives a waiver from any Participant or Beneficiary waiving any right to
        receive any portion of such Participant's or Beneficiary's benefits from
        the
        Trust. Notwithstanding the foregoing, the Trustee shall have no duty to
        determine whether such irrevocable contribution by the Company is in an amount
        sufficient to pay such benefits or to enforce any contribution obligation
        of the
        Company, or to determine whether a waiver has been obtained.

       

      All
        provisions of the Trust Agreement not specifically mentioned in this Amendment
        shall be considered modified to the extent necessary to be consistent with
        the
        changes made in this Amendment.

       

      IN
        WITNESS WHEREOF, the Company and the Trustee have caused this Amendment to
        be
        executed and delivered as of the date first set forth above.

       

      
        
          	
                  COMPANY:

                   

                	 	
                  TRUSTEE:

                   

                
	
                  PEOPLES
                    ENERGY CORPORATION

                   

                	 	
                  THE
                    NORTHERN TRUST COMPANY

                   

                
	
                  
                    By:
                      /s/
                      Douglas M. Ruschau

                  

                	
                	
                  By:
                    /s/
                    Neal Brailov

                
	
                  Its:
                    Vice President & Treasurer

                	 	
                  Its:
                    Vice PresidentEx 10.6(c) Seventh Modification, dated July 2006 with Sovereign Bank

    SEVENTH
      MODIFICATION OF

    REVOLVING
      CREDIT LOAN AND

    SECURITY
      AGREEMENT AND OTHER LOAN DOCUMENTS

    

    THIS
      LOAN
      MODIFICATION AGREEMENT (this “Modification”)
      made
      this 24th day of July, 2006 by and among RESOURCE AMERICA, INC.
      (“RAI”),
      RESOURCE PROPERTIES XXX, INC. (“RPI
      XXX”),
      RESOURCE
      PROPERTIES XLI, INC. (“RPI
      XLI”)
      and
      RESOURCE CAPITAL INVESTOR, INC. (“RCI”),
      each a
      Delaware corporation (collectively, the “Borrowers”),
      and
      SOVEREIGN BANK, a federal banking association, having an address of 1500 Market
      Street, Suite 1420, Philadelphia, Pennsylvania 19102 (“Bank”
or
      “Lender”).
      

     

    BACKGROUND

     

    A. Resource
      Properties, Inc., which merged into RAI on June 29, 2005,
      RESOUCE
      PROPERTIES XXIV, INC. (“RPI
      XXIV”),
      RESOURCE PROPERTIES XL, INC. (“RPI
      XL”),
      and
      Resource Properties 53, Inc. (“RPI
      53”)
      (the
“Original
      Borrowers”)
      and
      Bank entered into a certain Revolving Credit Loan and Security Agreement dated
      July 27, 1999 (the “Loan
      Agreement”)
      wherein the Original Borrowers established a line of credit loan facility with
      Bank in the amount of Fifteen Million Dollars ($15,000,000) (the “Loan”).

     

    B. As
      security for the obligations of Original Borrowers under the Loan Documents,
      RPI
      XL granted to Lender that certain Leasehold Mortgage and Security Agreement
      (the
“Leasehold
      Mortgage”)
      with
      regard to the real estate known as Factors Walk - Phase Two, Savannah, Georgia
      (the “Savannah Real
      Estate”).

     

    C. Original
      Borrowers, and Bank entered into that certain Modification of Revolving Credit
      Loan and Security Agreement dated March 30, 2000 (the “First
      Modification”),
      whereby, inter
      alia,
      the
      principal amount of the Loan was increased to Eighteen Million Dollars
      ($18,000,000).

     

    D. To
      evidence the revised Loan in the amount of $18,000,000, Original Borrowers
      executed and delivered to Bank that certain Replacement Line Note dated March
      30, 2000, in the amount of $18,000,000 (the “Note”).

     

    E. Original
      Borrowers, RPI
      XXX,
      Resource Properties XXXI, Inc. (“RPI XXXI”), and Bank entered into that certain
      Second Modification of Revolving Credit Loan and Security Agreement and
      Modification of Other Loan Documents dated April 30, 2002 (the “Second
      Modification”),
      whereby RPI 53 requested that Bank release it from its obligations under the
      Loan and release certain collateral related to RPI 53’s obligations and then to
      substitute RPI XXX and RPI XXXI as additional makers under the Note and add
      additional collateral owned by RPI XXX and RPI XXXI to the security for the
      Loan, in accordance with the terms therein. 

     

    F. Original
      Borrowers, RPI XXX, RPI XXXI, and Bank entered into that certain Third
      Modification of Revolving Credit Loan and Security Agreement dated
      September

     

    
      
        
        

      

      
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    15,
      2003
      (the “Third
      Modification”)
      whereby the term of the Loan was extended until July 27, 2005.

     

    G. Original
      Borrowers, RAI, RPI XXX, RPI XXXI and Bank entered into that certain Fourth
      Modification of Revolving Credit Loan and Security Agreement and Other Loan
      Documents dated June 30, 2005 (the “Fourth
      Modification”)
      whereby (i)
      the
      term of the Loan was extended,
      (ii)
      RPI
      XXIV was released from its obligations under the Loan Documents and (iii) there
      was an acknowledgement that by operation of law, since Resource Properties,
      Inc., which was a Borrower under the Loan Documents, merged into RAI, RAI is
      now
      a Borrower under the Loan Documents

     

    H. RAI,
      RPI
      XXIV, RPI XL, RPI XXX, RPI XXXI and Bank entered into that Fifth Modification
      of
      Revolving Credit Loan and Security Agreement and Other Loan Documents dated
      September 29, 2005 (the “Fifth
      Modification”)
      whereby Bank
      (i)
accepted
      as additional Collateral for the Loan the property known as Wharf Lots 4 and
      5
      and located at Bull and River Streets, Savannah, Chatham County, Georgia (the
      “Georgia
      Property”),
      which
      is owned by RPI XXIV pursuant to that certain Deed to Secure Debt, Assignment
      of
      Rents and Security Agreement dated September 29, 2005 from RPI XXIV in favor
      of
      Lender (the “Georgia
      Mortgage”),
      and (ii)
      acknowledged RPI XXIV as a Borrower under the Loan Documents as if it had never
      been released in accordance with the terms of the Fourth Modification, which
      Bank agreed to do, on the terms and conditions as more fully set forth in the
      Fifth Modification. In
      connection with the Fifth Modification, an Allonge to Replacement Line Note,
      dated September 29, 2005, was given by RAI, RPI 53, RPI XXIV AND RPI XL (the
      “First
      Allonge”).

     

    I. RAI,
      RPI
      XXIV, RPI XL, RPI XXX and Bank entered into that Sixth Modification of Revolving
      Credit Loan and Security Agreement and Other Loan Documents dated March 30,
      2006
      (the “Sixth
      Modification”)
      whereby Bank
      agreed to (i)
      accept and acknowledge RPI XLI as a Borrower under the Loan Documents, (ii)
      accept as additional Collateral for the Loan a collateral assignment by RAI
      of
      all of its right title and interest in and to RPI XLI’s stock (the“RPI
      XLI Shares”),
      and
      (iii)
      release RPI XXXI as a Borrower under the Loan Documents.

     

    J. On
      April
      6, 2006, Bank released the collateral pledged by RPI XXX which consisted of
      a
      collateral assignment of a $3,400,000 loan.

     

    K. Borrowers
      have now requested that Bank: (i) accept
      and acknowledge RCI as a Borrower under the Loan Documents; (ii) accept as
      additional Collateral for the Loan a collateral assignment by RCI of all of
      its
      right title and interest in and to 700,000 shares of Resource Capital Corp.,
      a
      Maryland corporation (the“RCC
      Shares”);
      (iii)
      revise the amount of the Loan to $14,000,000; (iv) extend the maturity date
      of
      the Loan; (v) accept as further additional Collateral for the Loan, a collateral
      assignment of (A) a loan from RPI XXX to Uman Realty, LLC, a New Jersey limited
      liability company (“Uman”)
      in the
      amount of $2,800,000.00 (the “Headhouse
      Loan”),
      which
      is secured by a first mortgage on the real property located in Philadelphia,
      PA
      known as Headhouse Piers 3 & 5 (the “Headhouse
      Loan”)
      and
      (B)
      all notes, documents, instruments and agreements evidencing and/or securing
      such
      loan (the “Headhouse
      Loan Documents”);
      (vi)
      release the lien of the Georgia Mortgage on the Georgia Property
      (each

     

    
      
        
        

      

      
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    as
      defined in this Modification), and the Leashold Mortgage on the Savannah Real
      Estate; and (vii) release
      RP XL and RP XXIV as Borrowers, which Bank has agreed to do on the terms and
      conditions as more fully set forth herein.

     

    L. To
      evidence the collateral assignment of the RCC Shares, Bank and RCI,
      contemporaneously with the execution hereof, are entering into that certain
      Pledge and Security Agreement of even date herewith (the “RCI
      Pledge Agreement”)
      and
      that certain Securities Account Sole Control Agreement among RCI, Lender, Credit
      Suisse Securities (USA) LLC and Pershing LLC (the “Control
      Agreement”).

     

    M. To
      evidence the collateral assignment of the Headhouse Loan, Bank and RPI XXX
      contemporaneously with the execution hereof, are entering into that certain
      Collateral Assignment of Note, Mortgage and Other Loan Documents (the
“Headhouse
      Loan Assignment”)
      with
      respect to the collateral assignment of the Headhouse Loan.

     

    N. In
      connection with this Modification, an Allonge to Replacement Line Note, dated
      of
      even date hereof, shall be given by Borrowers to Lender (the “Second
      Allonge”).
      The
      Note, the Loan Agreement, the RCI Pledge Agreement, the Headhouse Loan
      Assignment and the Headhouse Loan Documents and all other documents, instruments
      and undertakings evidencing and/or securing the Loan, (as modified hereby and
      by
      the First Modification, Second Modification, Third Modification, Fourth
      Modification, the Fifth Modification and the Sixth Modification (collectively,
      the “Other
      Modifications”
and
      this Modification) and all documents instruments and agreement executed and
      delivered to Lender in connection with the Other Modifications and this
      Modification are hereinafter collectively referred to as the “Loan
      Documents”).
      All
      capitalized terms used but not defined herein shall have the meaning given
      to
      such terms in the Loan Agreement.

     

    AGREEMENT

     

    NOW
      THEREFORE, the parties hereto, intending to be legally bound, hereby agree
      as
      follows:

     

    1. Definitions.
      As used
      in this Modification, all capitalized terms shall have the respective meanings
      provided therefor herein or, in absence of such provision, the respective
      meanings provided therefor in the Loan Documents. Without limiting the
      foregoing:

     

    (a) References
      in the Loan Documents to the “Loan Agreement” shall mean and include the Loan
      Agreement as modified by this Modification and the Other
      Modifications.

     

    (b) References
      in the Loan Documents to the “Note” or the ”Line Note” shall mean and include
      the Note as modified by this Modification, the First Allonge, the Second
      Allonge, any other allonges to the Note and the Other
      Modifications.

     

    (c) References
      in the Loan Documents to the “Loan Documents” shall mean and include the Loan
      Documents, as defined therein, all as modified by this Modification and the
      Other Modifications.

     

    
      
        
        

      

      
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    (d) References
      in the Loan Documents to the terms “Borrowers” shall mean and include RAI, RPI
      XXX, RPI XLI and RCI.

     

    (e) References
      in the Loan Documents to the amount of the “Loan” or the “Line” or the “Line of
      Credit” being in an amount of up to $18,000,000.00, pursuant to the
      Modifications, shall be replaced with “$14,000,000.00”. 

     

    (f) The
      term
“Obligations” as used herein shall mean any and all Obligations of the
      Borrowers, or any of them, under the Note, the Loan Agreement, the Collateral
      Documents, the RCI Pledge Agreement and any other Loan Document, as modified
      by
      this Modification and the Other Modifications.

     

     

    2. Confirmation
      of Indebtedness.

     

    (a) Borrowers
      hereby confirm, acknowledge, and agree that as of the date hereof, the
      outstanding principal balance of the Note is $0. Borrowers further acknowledge
      and agree that the foregoing principal balance from the date stated is validly
      and duly owing by Borrowers to Bank.

     

    (b) Borrowers
      hereby confirm, acknowledge, and agree that as of the date hereof, the Borrowing
      Base, when adding in the value of the RCC Shares and Headhouse Loan as
      Collateral under the Loan Agreement and removing the Georgia Property and the
      Savannah Real Estate as Collateral, is $13,545,000.00. 

     

    (c) Borrowers
      hereby ratify, confirm and acknowledge that (i) the Note, the Collateral
      Documents, and the other Loan Documents are each in full force and effect as
      of
      the date hereof, (ii) the Note, the Collateral Documents and the other Loan
      Documents constitute valid and legally binding obligations of the Borrowers,
      (iii) no event of default, or event which if continuing would constitute an
      Event of Default, has occurred under the Loan Documents, and (iv) the Loan
      Documents are enforceable against the Borrowers and its assets in accordance
      with their respective terms.

     

    (d) Not
      by
      way of limitation of anything herein or in the Loan Documents, RCI hereby agrees
      to be bound by the Note, the Loan Agreement and other Loan Documents, as if
      it
      were an original party thereto and a Borrower under the Loan Documents listed
      therein, and RCI agrees to comply with all covenants set forth in the Loan
      Documents and hereby set forth their agreement to the remedies and rights
      granted to Bank therein.

     

    (e) In
      order
      to induce Bank to enter into this Modification, the Borrowers hereby reaffirm
      the various representations and warranties made by the Original Borrowers in
      the
      Loan Documents, as if such representations and warranties were made by each
      of
      the Borrowers as of this date, and set forth fully herein, except as such
      representations and warranties may be otherwise modified by the updated
      Schedules and Exhibits attached hereto. In order to induce Bank to enter into
      this Modification, the Borrowers each hereby represent and warrant to Bank
      that
      all representations and warranties made by the Original Borrowers in the Loan
      Documents are hereby made by the Borrowers on and as of the date hereof. Not
      by
      way of limitation of the foregoing, the Borrowers hereby further represent
      and
      warrant that:

     

    
      
        
        

      

      
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    (i) RCI
      is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of the State of Delaware, with full power and authority to execute, deliver
      and
      comply with this Modification and the RCI Pledge
      Agreement,
      and to
      carry on its respective business as it is now being conducted and is duly
      licensed or qualified as a foreign corporation in good standing in each
      jurisdiction in which the character or location of the properties owned by
      it or
      the business transacted by it requires such licensing or
      qualification;

     

    (ii) The
      execution and delivery by RCI of this Modification and the RCI Pledge
      Agreement and
      the
      other Borrowers of this Modification and the consummation of the transactions
      contemplated by the Loan Documents and this Modification and the fulfillment
      and
      compliance with the respective terms, conditions and provisions of the Loan
      Documents: (a) have been duly authorized by all requisite corporate action
      of
      all of the Borrowers, (b) will not conflict with or result in a breach of,
      or
      constitute a default (or might, upon the passage of time or the giving of notice
      or both, constitute a default) under, any of the terms, conditions or provisions
      of (i) any applicable statute, law, rule, regulation or ordinance, (ii) any
      Borrowers’ articles of incorporation or bylaws, (iii) any indenture, mortgage,
      loan or credit agreement or instrument to which any of the Borrowers is a party
      or by which any of them may be bound or affected, or (iv) any judgment or order
      of any court or governmental department, commission, board, bureau, agency
      or
      instrumentality, domestic or foreign, and (c) will not result in the creation
      or
      imposition of any lien, charge or encumbrance of any nature whatsoever upon
      any
      of the property or assets of any of the Borrowers under the terms or provisions
      of any such agreement or instrument, except liens in favor of Bank;

     

    (iii) This
      Modification has been duly executed and delivered to Bank by each of the
      Borrowers, and the RCI Pledge Agreement
      and
      Headhouse Loan Assignment have been duly executed and delivered by RCI and
      RPI
      XXX, respectively and
      this
      Modification and other documents and instruments required hereby or executed
      in
      connection herewith constitute legal, valid and binding obligations of such
      parties, enforceable in accordance with their respective terms;

     

    (iv) None
      of
      the Borrowers is in violation of its respective articles of organization or
      bylaws, nor is any such party in default in the performance or observance of
      any
      of its respective obligations, covenants or conditions contained in any
      indenture or other agreement creating, evidencing or securing any Indebtedness
      or pursuant to which any such Indebtedness is issued, nor is any of the
      Borrowers in violation of or in default under any other agreement or instrument
      or any judgment, decree, order, statute, rule or governmental regulation,
      applicable to any of them or by which any of their properties may be bound
      or
      affected; 

     

    (v) There
      are
      no actions, suits or proceedings pending or, to the best of any of the
      Borrowers’ knowledge, threatened against any of the Borrowers, or any properties
      of any of them before any court or governmental department, commission, board,
      bureau, agency or instrumentality, domestic or foreign, which, if determined
      adversely to any of the Borrowers, would have a material adverse effect on
      such
      Borrower’s financial or operating condition;

     

    (vi) No
      authorization, consent, approval, license, exemption or any other action by
      and
      no registration, qualification or filing with any governmental agency
      or

     

    
      
        
        

      

      
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    authority
      is or will be necessary in connection with the execution, delivery and
      performance of this Modification or any other document or instrument required
      hereby by any of the Borrowers;

     

    (vii) RCI
      is
      the sole owner of the RCC Shares and has full right an authority to pledge
      the
      RCC Shares to Lender as contemplated hereby. The RCC Shares are and will be
      owned by RCI free of any pledge, mortgage, hypothecation, lien, charge,
      encumbrance, or security interest in such instruments or the proceeds thereof,
      except such as are granted under the RCI Pledge Agreement;

     

    (viii) With
      respect to the Headhouse Loan: (i) the Headhouse Loan Documents are in full
      force and effect; (ii) Uman is the borrower thereunder and has no claim, cause
      of action, defense, set-off, counterclaim or challenge of any kind or nature
      whatsoever against the payment of any of the sums owing under the Headhouse
      Loan
      Documents or the enforcement or validity of the Headhouse Loan Documents; (iii)
      the Headhouse Loan Documents are in full force and effect and there are no
      defaults thereunder; (iv) the outstanding principal balance thereunder, as
      of
      the date hereof, is $2,800,000; and (v) all representations and warranties
      of
      RPI XXX under the Headhouse Loan Assignment are true, correct and complete,
      in
      all material respects;

     

    (ix) On
      and as
      of the date of this Modification, to the best of any of the Borrowers’
knowledge, there exists no default or Event of Default under the Note, or any
      other Loan Document and no event which with notice or lapse of time or both
      would, if unremedied, be a default or Event of Default under the Note, or any
      other Loan Document.

     

    (f) Each
      of
      the Borrowers hereby ratify and confirm that it is fully obligated under the
      Loan Documents and that the Loan Documents remain in full force and effect
      as
      modified hereby. The Loan Documents, AND
      THE WARRANTS OF ATTORNEY TO CONFESS JUDGMENT CONTAINED IN THE NOTE, AND ANY
      OF
      THE OTHER LOAN DOCUMENTS,
      extend
      to and secure the payment of the obligations of the Borrowers under the Loan
      Documents (the “Obligations”),
      as
      modified by this Modification and the Other Modifications. Each of the Loan
      Documents remains in full force and effect, as modified by this Modification
      and
      the Other Modifications and, along with the Premises and the other Collateral,
      AND
      THE WARRANTS OF ATTORNEY TO CONFESS JUDGMENT CONTAINED IN THE NOTE, AND ANY
      OF
      THE OTHER LOAN DOCUMENTS,
      extend
      to and continue to evidence and secure the Obligations and the Loan Documents,
      each as modified by this Modification and the Other Modifications. To the extent
      required in order to achieve the intent of this Modification, this Modification
      shall be deemed to modify each of the Loan Documents.

     

    (g) BORROWERS
      HEREBY CONFIRM AND AGREE THAT THEY HAVE NO CLAIM, CAUSE OF ACTION, DEFENSE,
      SET-OFF, COUNTERCLAIM OR CHALLENGE OF ANY KIND OR NATURE WHATSOEVER AGAINST
      THE
      PAYMENT OF ANY OF THE SUMS OWING UNDER THE NOTE, OR THE TERMS OF THE OTHER
      LOAN
      DOCUMENTS OR THE ENFORCEMENT OR VALIDITY OF THE NOTE, OR THE OTHER LOAN
      DOCUMENTS, AND DO HEREBY REMISE, RELEASE AND FOREVER DISCHARGE ANY AND ALL
      SUCH
      CLAIMS, CAUSES OF ACTION, DEFENSES, SET-OFFS, COUNTERCLAIMS OR
      CHALLENGES.

     

    
      
        
        

      

      
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    3. Amendment
      to Note.
      Borrowers and Lender hereby acknowledge and agree that the term “Borrower” under
      the Note shall mean all of the Borrowers, each of which hereby assumes, on
      a
      joint and several basis,
      all
      obligations of “Borrower” thereunder and is otherwise obligated thereunder as if
      it were an original signatory thereto. Borrowers and Lender also agree that
      the
      face amount of the Note shall be $14,000,000.00. BORROWERS
      HEREBY AGREE THAT THEY ARE, OR REMAIN, AS THE CASE MAY BE, BOUND BY THE WARRANT
      OF ATTORNEY TO CONFESS JUDGMENT AS SET FORTH IN THE NOTE. THE BORROWERS HEREBY
      CONFIRM THAT THEY HAVE AGREED TO BE BOUND BY THE FOREGOING AFTER RECEIVING
      ADVICE FROM COUNSEL OF THEIR CHOOSING WITH REGARD TO THE SAME AND FURTHER
      CONFIRM THAT THEIR AGREEMENT TO BE SO BOUND IS BASED ON A KNOWING, VOLUNTARY
      AND
      INTELLIGENT DECISION.
      

     

    4. Amendment
      to the Loan Agreement.

     

    (a) The
      following definitions in the Loan Agreement shall be amended as indicated
      below:

     

    (i)
       The
      term
“Borrower” as defined in the Loan Agreement shall mean the
      Borrowers;

     

    (ii) 
      The term
“Loan Documents” as defined in the Loan Agreement and the other Loan Documents
      shall be expanded to include the RCI Pledge Agreement and the Headhouse Loan
      Assignment, and shall no longer include the Georgia Mortgage or the Leasehold
      Mortgage;

     

    (iii) 
      The term
“Collateral” and/or “Substitute Collateral” as defined in the Loan Agreement
      shall be expanded to include the RCC Shares and Headhouse Loan, and shall no
      longer include the Georgia Property and the Savannah Real Estate, consequently,
      Exhibit “A” shall be amended to include the RCI Pledge Agreement and the
      Headhouse Loan Assignment and exclude the Georgia Mortgage and the Leasehold
      Mortgage. 

    

    (iv) Replace
      the definition of “Collateral Documents” with the following:

    

    ““Collateral
      Documents” means the Assigned Loan Documents and all documents, instruments and
      agreements evidencing the pledge, assignment or granting of any security
      interest in and to any of the Real Estate, the RPI XLI Shares, the RCC Shares
      or
      any other Collateral and/or Substitute Collateral evidencing, securing and/or
      otherwise relating to the Line, including without limitation those documents
      and
      instruments set forth on Exhibit “A” attached hereto and made a part
      hereof, as the same may be amended from time to time in accordance with the
      terms hereof.”

    
      
        
        

      

      
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    (v) Replace
      the definition of “Substitute Collateral” with the following:

    

    ““Substitute
      Collateral” means all of the (a) real property or notes, mortgages and other
      documents and instruments, evidencing and/or securing a commercial mortgage
      loan
      (or a participation interest therein) of which a Borrower is the owner (all
      as
      more fully described in Section 4.1 herein), where Bank shall have received
      an
      Appraisal of the real property subject to such loan and such other reports
      (including environmental reports), surveys, and information relating thereto
      as
      Bank may request, and (b) such other real or personal property as Bank may
      accept from a Borrower as collateral for the obligations of Borrower hereunder
      and under the other Loan Documents, where such Substitute Collateral is
      evidenced by mortgages, assignments, deeds of trust, mortgages, pledge
      agreements and other documents, instruments and agreements as my be resonbaly
      required by Bank. Upon the delivery of Substitute Collateral to Bank and the
      acceptance thereof by Bank, all such documents and instruments shall constitute
      Collateral Documents (and Exhibit “A” shall be amended accordingly) and the
      real property, if any, to which they relate shall constitute Real Estate and
      Collateral and the personal property, if any to which they relate, if any,
      shall
      constitute Collateral (and Exhibits “A” and “B” shall be amended
      accordingly).

    

    (b) The
      amout
      of the Loan is hereby changed to $14,000,000.00 and therefore, the amount of
      the
“Line of Credit” or the “Loan”, as referenced in the Loan Agreement and the
      other Loan Documents is hereby changed to $14,000,000.00.

    

    (c) The
      following definitions shall be added to the Loan Agreement :

    

    ““Assigned
      Loan Documents” means any notes, mortgages, participation agreements, pledge
      agreements, deeds of trust, assignments or other documents instruments or
      agreements evidencing any loan or particpation assigned to Bank by any Borrower
      as security for the Line Note, including, but not limited to, the Headhouse
      Loan
      Documents.”

    

    ““Headhouse
      Loan Documents means any and all notes, documents, instruments and agreements
      evidencing and/or securing the Headhouse Loan.

    

    ““Headhouse
      Loan” means that certain mortgage loan from PRI XXX to Uman Realty LLC, a New
      Jersey limited liability company in the amount of $2,800,000.

    

    ““Pledge
      Agreements” means the RAI Pledge Agreement and the RCI Pledge
      Agreement.

    

    ““RAI”
      means Resource America, Inc, a Delaware corporation.

    
      
        
        

      

      
        -
          8
          -

        
          

        

      

      
        
        

      

    

    

    ““RAI
      Pledge Agreement” means the Pledge Agreement from RAI in favor of Lender,
      whereby RAI pledges and assigns to Lender, as collateral for the obligations
      of
      Borrower hereunder and under the other Loan Documents, the RPI XLI
      Shares.”

    

    ““RCC”
      means Resource Capital Corp., a Maryland corporation.

    

    ““RCC
      Shares” means the shares of RCC, pledged to Lender, pursuant to the RCI Pledge
      Agreement, by RCI for the obligations of Borrower hereunder and under the other
      Loan Documents.”

     

    
            
        ““RCI” means Resource Capital Investor, Inc., a Delaware
        corporation.”

    

     

              ““RCI
      Pledge Agreement” means the RCI Pledge Agreement from RCI in favor of Lender,
      whereby RCI assigns to Lender, as collateral for the obligations of Borrower
      hereunder and under the other Loan Documents, the RCC Shares.”

     

            
      ““RPI XLI Shares” means the shares of Resource Properties XLI, Inc., pledged to
      Lender, pursuant to the RAI Pledge Agreement, by RAI, as collateral for the
      obligations of Borrower hereunder and under the other Loan
      Documents.”

    

    (d) Section
      1.1 of the Loan Agreement shall be deleted in its entirety and replaced with
      the
      following: 

     

    
                   “Line
        of Credit.
        Bank will establish for Borrower for and during the period from the date
        hereof
        and until July 27, 2009 (the “Expiration Date”), subject to the Extension
        Periods (set forth and defined in Section 3.9 hereof), and further, subject
        to
        the terms and conditions hereof (including without limitation the Borrowing
        Base
        set forth in Section 1.4 herein), a revolving line of credit (the “Line”)
        pursuant to which Bank will from time to time make loans to Borrower in an
        aggregate outstanding principal amount not to exceed at any time Fourteen
        Million Dollars ($14,000,000).”

    

     

                                  
      (e) Section
      1.2 of the Loan Agreement shall be deleted in its entirety and replaced
      with:

    

       
      ““Use
      of Proceeds Borrower
      may use the advances under the Line for general working capital
      purposes.” 

    

    (f) The
      first
      sentence of Section 1.4 of the Loan Agreement shall be deleted in its entirety
      and replaced with the following: 

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

                       
      “Notwithstanding anything contained herein to the contrary, but subject to the
      provisions of Section 4.4(b) herein, the aggregate outstanding principal balance
      of the Line shall not exceed at any time the sum of the following (the
“Borrowing
      Base”)
      (i) sixty-five percent (65%) of the Appraised Value of the Real Estate (not
      including such of the Real Estate that has been released from the lien of any
      Collateral Documents or that otherwise relates to a Collateral Document that
      has
      been terminated or satisfied) plus
      (ii)
      with respect to the Intown Loan Documents, the lesser of (A) $6,430,000 less
      the
      value of any mortgage lien senior to the mortgage securing the Intown loan
      documents or (B) anticipated cash flow from the Intown Loan divided by .12
      plus
      (iii) fifty percent (50%) of the fair market value of the RCC Shares, which
      shares shall be marked to market monthly by Lender, plus
      (iv)
      with respect to the Headhouse Loan, the lesser of (A) $2,600,000 less the value
      of any mortgage lien senior to the mortgage securing the Headhouse loan
      documents or (B) the anticipated cash flow from the Headhouse Loan divided
      by
      .12. Notwithstanding the foregoing, in the event of a default under the Intown
      Loan Documents or the Headhouse Loan Documents, Lender may determine to remove
      the cash flow of the Intown Loan and/or the Headhouse Loan, as applicable,
      from
      the Borrowing Base, if Lender believes, in its reasonable discretion, that
      the
      collection of the Intown Loan, or the Headhouse Loan, as applicable, has been
      materially impaired. The value assigned to the Collateral for purposes of
      computing the Borrowing Base, is set forth on Schedule 1.4
      hereto.”

     

    (g) A
      new
      Section 1.5 shall be added to the Loan Agreement, as follows:

    

    “Limitation
      on Number of Tranches
      Borrower shall be limited to having no more than three (3) LIBOR Rate tranches
      outstanding at any one time.”

     

    

    (h) Replace
      Section 2.1 of the Loan Agreement with the following:

    

    “Interest
      on the Line.
      Interest on the unpaid outstanding principal balance of the Line will accrue
      from the date of the advance until final payment thereof, at Borrower’s option,
      at either (i) equal to, or (ii) at the LIBOR Rate plus 200 basis points, a
      per
      annum rate equal to the Prime Rate in effect from time to time (such interest
      rate to change immediately upon any change in the Prime Rate), or at the
      Borrower’s option, at the LIBOR Rate plus 200 basis points. 

    

    The
      “LIBOR Rate” means the offered rate for delivery in two London Banking Days (as
      defined below) of deposits of U.S. Dollars which the British Bankers’
Association fixes as its LIBOR rate and which appears on the Telerate Page
      3750
      as of 11:00 a.m. London time on the day on which the Interest Period commences,
      and for a period approximately equal to such Interest Period. If the first
      day
      of any Interest Period is not a day which is both a (i) business day, and (ii)
      a
      day on which US dollar deposits are transacted in the London interbank market
      (a
“London Banking Day”), the LIBOR Rate shall be determined in reference to the
      next preceding day which is both a business day and a London Banking Day. If
      for
      any reason the LIBOR Rate is unavailable and/or the Lender is unable to
      determine the LIBOR Rate for any Interest Period, the LIBOR Rate shall be deemed
      to be equal to the Prime Rate.

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

    “Interest
      Period” means the period commencing on the date on which the interest rate under
      the Loan is converted to (or is continuing as) the LIBOR Rate, and ending on
      (but excluding) the day which numerically corresponds to such date one month
      thereafter (or, if such month has no numerically corresponding day, on the
      last
      business day of such month).”

    

    (i) Section
      3.9 of the Loan Agreement shall be deleted in its entirety and replaced with
      the
      following:

     

    “Bank
      may elect to extend the Expiration Date for up to two, one-year periods (each
      an
“Extension Period”), subject to the following terms and
      conditions:

     

    (i) On
      or
      before May 31 of each year commencing on May 31, 2009, Bank will notify Borrower
      if (i) Bank has elected to extend the Expiration Date then in effect by an
      Extension Period, or (ii) Bank has elected not to extend the Expiration Date
      then in effect. A failure by the Bank to send any such notice shall be deemed
      to
      be an election by Bank not to extend the Expiration Date then in
      effect;

     

    (ii)
       as
      of
      the date of the commencement of any Extension Period, there shall not have
      occurred any Event of Default and there shall be, as of such date, no Potential
      Default; 

     

    (iii)
       as
      of
      the date of the commencement of any Extension Period, there shall have not
      occurred any material adverse change in the financial condition of any Borrower
      and/or the Collateral; and

     

    (iv)
       on
      or
      before the commencement date of any Extension Period, Borrower shall execute
      or
      cause to be executed any other documents reasonably requested by
      Bank.

     

    To
      the extent that Borrower elects to extend the Expiration Date for an Extension
      Period, the term the “Expiration Date” shall be the last day of such applicable
      Extension Period.

     

    In
      the event that Bank determines in the exercise of its sole discretion that
      it
      will extend the Expiration date then in effect, Borrower shall, at least five
      (5) days prior to the then current Expiration Date, pay to Bank an extension
      fee
      of Thirty-Five Thousand Dollars ($35,000). If Borrower shall fail to pay such
      extension fee to Bank as and when required, Bank’s election to extend the
      Expiration Date shall be deemed to be canceled and shall be null and void and
      of
      no further force or effect and the Expiration Date then in effect shall continue
      as if Bank had not provided any notice of election to extend.”

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

     

    
      (j) Delete
        Sections 4.1, 4.2 and 4.3 of the Loan Agreement in their entirety and replace
        with the following:

       

    

                        
      “4.1 Assignment
      and Security Interest.
      As
      security for the performance by Borrower of this Agreement and the other Loan
      Documents and the payment of the Line Note and as security for the performance
      of the Guaranty and all other liabilities of any Borrower to Bank (whether
      absolute or contingent, matured or unmatured, direct or indirect, sole, joint,
      several or joint and several, similar or dissimilar, related or unrelated,
      due
      or to become due or heretofore or hereafter contracted or acquired), Borrower
      hereby pledges, assigns, transfers and sets over to Bank and grants to Bank
      a
      security interest in all of Borrower’s right, title and interest in and to the
      following: 

     

    (a) all
      of Borrower’s powers, privileges and other benefits under any and all Assigned
      Loan Documents;

     

    (b) the
      immediate right to receive and collect all sums payable to or receivable by
      Borrower under or pursuant to the provisions of all Assigned Loan Documents,
      whether as principal, interest, casualty or insurance payments, or otherwise
      (“Payments”);

     

    (c) the
      right to make all waivers and agreements, to give all notices, consents and
      releases, and to take all action upon the happening of a Collateral Document
      Default;

     

    (d) the
      right to do any and all other things whatsoever which Borrower is or may become
      entitled to do under the Assigned Loan Documents, including without limitation
      all rights to be substituted as a creditor in any bankruptcy proceeding
      affecting any Obligor, Assigned Loan Documents, or Real Estate, with full voting
      rights, the right to receive dividends, and the right to participate in the
      administration of any plan, whether in liquidation or reorganization, and the
      right to take any and all actions that Borrower may be entitled to take as
      a
      participant under any Assigned Loan Document. In further of the foregoing
      assignment, Borrower hereby irrevocably authorizes and empowers Bank, in its
      own
      name or in the name of its nominee, or in the name of Borrower or as its
      attorney, to ask, demand, sue for, collect and receive any and all Payments
      to
      which Borrower is or may become entitled under any Assigned Loan Document and
      to
      enforce compliance by any Obligor, or any maker, mortgagor, or other party
      thereto, with all of the terms and provisions thereof;

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

     

    (e) All
      Deposit Accounts maintained by any Borrower, together with all cash deposited
      in
      the same.

     

    4.2 Representations
      Regarding Collateral.
      Borrower represents and warrants that:

     

    (a) Borrower
      has full right and title to the Collateral and (either as owner of the Assigned
      Loan Documents or a participation interest in and to the Assigned Loan
      Documents) to the Assigned Loan Documents, free from

     

    any
      lien, security interest, encumbrance or other right, title and interest of
      any
      other person or entity.

     

    (b) Borrower
      has not made any currently effective assignment of any interest in any of the
      Collateral or the Assigned Loan Documents other than to Bank pursuant to this
      Agreement and the other Loan Documents.

     

    (c) No
      Obligor has any set-off, defense or counterclaim to any of its obligations
      under
      any Assigned Loan Document (as the same may have been modified by any
      forbearance agreement relating thereto).

     

    (d) Subject
      to the provisions of any forbearance agreement relating thereto, all Assigned
      Loan Documents are in full force and effect with respect to the payment
      obligations arising under them.

     

    (e) Except
      as may be specifically provided in the Assigned Loan Documents, no Payments
      have
      been collected, anticipated, waived, released, discounted or otherwise
      discharged or compromised except in accordance with their regularly scheduled
      payment dates.

     

    (f) There
      is only one original note evidencing each loan to which the Assigned Loan
      Documents relate, if applicable, only one original deed-in-lieu of foreclosure
      relating to any loans to which the Assigned Loan Documents relate, and, if
      applicable, only one Participation Certificate evidencing participation
      interests comprising a portion of the Collateral, all of which, to the extent
      applicable, have been delivered to Bank.

     

    4.3 Covenants
      Regarding Collateral.
      So
      long as the Line Note remains unpaid or Bank has any commitment under the Line,
      without the prior written consent of Bank, which consent shall not be
      unreasonably withheld or delayed:

     

    (a) Borrower
      shall not obtain any other loans or other financing secured by an encumbrance,
      lien, mortgage, security interest or other interest in any of the Collateral,
      or
      assign, sell, transfer (voluntarily or by operation of law), or otherwise
      dispose of any interest in any of the Collateral or the Real
      Estate.

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    (b) Borrower
      shall receive or collect monthly (or otherwise if so provided by the terms
      of
      the Assigned Loan Documents) payment of principal and interest pursuant to
      and
      in accordance with the terms and conditions of the Assigned Loan
      Documents.

     

    (c) Prior
      to the occurrence of an Event or Default, Borrower shall not alter, amend,
      extend, cancel or otherwise change any terms or conditions of the Assigned
      Loan
      Documents if as a result thereof there would occur an Event of Default or
      Potential Default. Following the occurrence of anEvent
      of Default, Borrower shall not alter, amend, cancel or otherwise change any
      provision of any of the Assigned Loan Documents.

     

    (d) In
      the event Borrower goes into possession of any of the Real Estate relating
      to
      the Assigned Loan Documents, should Bank thereafter decide to go into possession
      pursuant to this Agreement, Borrower shall immediately vacate the affected
      Real
      Estate and perform whatever acts or execute whatever documents required by
      Bank,
      in its sole discretion, to expedite Bank’s possession of the affected Real
      Estate.

     

    (e) Borrower
      shall keep accurate and complete records of Payments and the Collateral
      Documents and shall furnish Bank with such information as Bank may request,
      including without limitations, the information required by Section 8
      herein.

     

    (f) Following
      the occurrence of an Event of Default Borrower, shall not exercise any right
      or
      remedy granted under any of the Assigned Loan Documents without the prior
      written consent of Bank.

     

    (g) Following
      the occurrence of an Event of Default, Borrower shall not (i) waive, excuse,
      condone or in any manner release or discharge any obligation, covenant or
      agreement of any Obligor under any Assigned Loan Document; (ii) cancel,
      terminate or permit the surrender of any Assigned Loan Document; or (iii)
      solicit or accept any prepayment of monies under any Assigned Loan
      Document.

     

    (h) Borrower
      shall not release or terminate any of its interest in, to or under any Assigned
      Loan Document.

     

                           
      (i) Borrower
      shall not propose or consent to any plan of reorganization or liquidation in
      any
      proceeding in the United States Bankruptcy Court with regard to any Assigned
      Loan Documents, Real Estate, Collateral or Obligor.”

     

    (k) In
      Section 4.4, 4.5, 4.6, 4.7, both paragraphs numbered 4.8, 4.9, 4.10, and 4.11,
      replace the terms “Collateral Documents” with “Assigned Loan Documents” and
      replace the term “Collateral Document” with Assigned Loan Document”, wherever
      such terms appear.

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    (a) Schedules
      5.3, 5.4, 5.7, 5.13, 5.18, and 5.22 to the Loan Agreement shall be replaced
      with
      the schedules attached hereto of the same numbers to reflect the inclusion
      of
      RCI as a Borrower, and any other changes. 

     

    (b) The
      definition of “Deposit Accounts as set forth in Section 5.22 of the Loan
      Agreement shall be amended to include all bank accounts of any Borrower (other
      than RAI bank accounts at banks other than Bank), all of which are set forth
      on
Schedule 5.22.”

    

    (l) Replace
      Section 6.22 of the Loan Agreement with the following:

    

    “6.22 Bank
      Accounts.

     

    (a) Except
      as otherwise permitted herein, no Borrower shall open or maintain any bank
      accounts with respect to the Collateral, the Assigned Loan Documents or the
      Real
      Estate other than the Deposit Accounts and bank accounts maintained with Bank.
      Each Borrower shall deposit or cause to be deposited into the Deposit Accounts
      or such other accounts as may be maintained with Bank from time to the time
      the
      rentals and other income from the Real Estate and all other Payments. Any income
      received with respect to the balance from time to time standing to the credit
      of
      the Deposit Accounts and any other deposit accounts maintained with Bank,
      including any interest, shall remain, or be deposited in the Deposit Accounts
      or
      such other accounts.

     

    (b) All
      right, title and interest in and to the cash amounts on deposit from time to
      time in the Deposit Accounts shall vest in Bank, shall constitute part of the
      Collateral hereunder and shall not constitute payment of the Bank Indebtedness
      until applied thereto as hereinafter provided. Each Borrower shall as promptly
      as possible deposit the proceeds of any Collateral and all payments received
      by
      it into the Deposit Accounts. Until so deposited, all such proceeds shall be
      held in trust by Borrower for and as the property of Bank and shall not be
      commingled with any other funds or property of either of them. The balance
      from
      time to time standing to the credit of the Deposit Accounts shall, except as
      set
      forth in subsection (c) below, be distributed to Borrower in accordance with
      the
      provisions of the Depository Agreements.

     

    (c) If
      an
      Event of Default shall have occurred and Bank shall have given notice to
      Borrower of its intent to exercise exclusive control over the Deposit Accounts,
      then (i) the applicable Borrower shall instruct all Obligors and other Persons
      obligated in respect of any Assigned Loan Document or Real Estate to make all
      payments in respect of the Assigned Loan Document, and shall use its best
      efforts to cause them to do so, directly to the Deposit Accounts, and (ii)
      no
      Borrower shall be entitled to receive any distribution from the Deposit
      Accounts.”

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    (m) A
      new
      Section 6.23 shall be added to the Loan Agreement and shall read as
      follows:

     

    “6.23 RCC
      Shares.
      

    

    (a) Borrowers
      represent and warrant that the RCC Shares have been registered under the
      Securities Act of 1933, as amended ("Securities Act"), under a currently
      effective Form S-11 shelf registration statement of RCC.  Borrowers further
      represent that, under a registration rights
      agreement with RCC, of which Borrowers, or their subsidiaries, are
      beneficiaries, RCC is required to use its commercially reasonable best efforts
      to maintain the registration's effectiveness until the earlier of two years
      following the registration's effective date or the date all shares covered
      by
      the registration have been sold or all shares not held by affiliates of RCC
      are
      eligible for sale pursuant to Rule 144(k) of the Securities Act."

    

    (b) Borrowers
      represent and warrant that the RCC Shares have been held by RCI since March
      5,
      2005 and were fully paid for by it on such date. Borrowers further represent
      and
      warrant that RCI complies with all of the conditions relating to a pledgor
      of
      securities set forth in Rule 144(d)(3)(iv) under the Securities
      Act."

    

    (n) Section
      7.1 of the Loan Agreement shall be deleted in its entirety and replaced with
      the
      following:

    

    “”Minimum
      Tangible Net Worth” Borrower shall maintain a minimum Tangible Net Worth of One
      Hundred Million Dollars ($100,000,000.000) plus eighty-five percent (85%) of
      future equity offerings of Borrower at September 30, 2006 and at each calendar
      quarter end thereafter. For purposes hereof, “Tangible Net Worth” shall be
      defined as Total Assets less intangibles and less Liabilities, each determined
      in accordance with GAAP.”

    

    (o) Section
      7.2 of the Loan Agreement shall be revised deleted in its entirety and replaced
      with the following: 

    

    
      	 	 	
              “Debt
                Service Coverage Ratio. “Borrower shall maintain a ratio of (a) revenues,
                calculated on an annualized basis, of the cash flow derived from
                the
                Headhouse Loan and the Intown Loan plus dividends received on account
                of
                the RCC Shares (annualized based upon the most recent calendar quarter),
                to (b) the greater of (i) actual interest paid on the Line during
                the
                period of calculation, or (ii) $1,400,000.00, of not less than 1.15
                to
                1.0.”

            

    

    

    (p) Exhibit
      “A” and Exhibit “B” to the Loan Agreement shall be replaced with the exhibits
      attached hereto of the same letters to reflect the inclusion of the RCC Shares
      and new Headhouse Loan and the removal of the Georgia Property and the Savannah
      Real Estate as Collateral and Substitute Collateral, and any other changes.
      

    

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

    5. Conditions
      Precedent.
      The
      obligation of Bank to effect the modifications and agreements contained herein
      is subject to the conditions precedent that:

     

    (a) There
      has
      been no material adverse change in the financial or operating condition of
      any
      of the Borrowers since the date of the last submission of financial statements
      to Bank.

     

    (b) The
      Borrowers shall have paid a fee to the Bank for the Bank’s agreement to extend
      to the Maturity Date, as provided herein, in the amount of 75 basis points
      on
      the maximum amount of the Line.

     

    (c) The
      Borrower’s shall have paid Bank’s counsel fees incurred in connection with this
      Modification.

     

    (d) All
      representations and warranties made by any of the Borrowers herein or in
      connection with this Modification shall be true, correct and compete in all
      material respects.

     

    (e) Bank
      shall have received all of the following documents, each of which shall be
      in
      form and substance satisfactory to Bank:

     

    (i) Copies,
      certified in writing by the secretaries or assistant secretaries of the
      Borrowers, of (a) resolutions of their respective boards of directors evidencing
      approval of this Modification and the other matters contemplated hereby and
      the
      execution and delivery by RCI of the RCI Pledge Agreement, and by RPI XXX of
      the
      Headhouse Loan Assignment and (b) each document evidencing other necessary
      action and approvals, if any, with respect to this Modification, the RCI Pledge
      Agreement or the Headhouse Loan Assignment;

     

    (ii) Written
      certificates by each of the secretaries or assistant secretaries of the
      Borrowers as to the names and signatures of each Borrowers’ officers who are
      authorized to sign this Modification, and the other documents or certificates
      to
      be executed and delivered by them pursuant hereto;

     

    (iii) Evidence
      satisfactory to Bank that the certificates of incorporation and bylaws of RAI,
      RPI XL, RPI XXX and RPI XXI delivered to Bank on or about July 27, 1999 or
      April
      30, 2002, as applicable, and the articles of incorporation of RPI XLI delivered
      to the Bank on March 20, 2006, have not been amended in any way (or if they
      have
      been amended, the nature of such amendment) and are in full force and effect,
      and certified certificates of incorporation and bylaws of all of the other
      Borrowers, as well as good standing certificates issued by the secretary of
      state of the state of incorporation of each of the Borrowers;

     

    (iv) Certificate
      of incorporation of RCI, certified as true, correct and complete by the
      secretary of state of the state of Delaware and bylaws or RCI, certified as
      true, correct and complete by the secretary of RCI;

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    (v) A
      fully
      executed copy of this Modification adding RCI as a Borrower and otherwise
      modifying the Note consistent with the terms hereof; 

     

    (vi) The
      following documents with respect to the RCC Shares;

     

    (A) A
      Pledge
      and Security Agreement (the “Pledge
      Agreement”)
      of even
      date herewith from RCI in favor of Bank; and

     

    (B) The
      Control Agreement.

    (vii) The
      following documents with respect to the Headhouse Loan; 

     

    (A) A
      full
      set of all of the Headhouse Loan Documents, which shall be in form and content
      reasonably satisfactory to Lender, including the original note from Uman in
      the
      amount of the Headhouse Loan, which note shall be endorsed in favor of Lender
      by
      RPI XXX;

    

    (B) The
      Headhouse Loan Assignment; and

    

    (C) Consent
      and estoppel certificate from Uman with respect to the assignment of the
      Headhouse Loan Assignment, in form and content as many be satisfactory to
      Lender.

    

    (viii) Opinion
      of counsel from Borrowers’ counsel with respect to each Borrower’s due
      formation,
      the
      validity and enforceability of this Modification, the Pledge Agreement, the
      Headhouse Loan Assignment, the authority and capacity of the respective
      Borrowers to execute such documents, the creation and perfection in favor of
      Bank of a first priority security interest in and to the RCC Shares and the
      Headhouse Loan Documents and such other matters as Bank may request;
      and

     

    (ix) Such
      other documents as Bank may reasonably request in connection with this
      Modification.

     

    

    6. Reaffirmation
      of Loan Documents, Accommodations and Collateral.
      Borrowers hereby ratify and confirm that each of them is fully obligated under
      the Loan Documents and that the Loan Documents remain in full force and effect
      as modified hereby. The Assigned Loan Documents and the other Loan Documents
      shall remain in full force and effect and shall be deemed hereby to extend
      to
      and secure the Obligations, including without limitation those created under
      this Modification. To the extent required in order to achieve the intent of
      this
      Modification, this Modification shall be deemed to modify each of the Loan
      Documents and, along with the Real Estate and other other Collateral extend
      to
      and continue to evidence and secure the Loan Documents and the Obligations
      as
      modified by this Modification.

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

    7. Miscellaneous.

     

    (a) Paragraph
      headings used in this Modification are for convenience only and shall not affect
      the construction of this Modification.

     

    (b) From
      time
      to time, Borrowers will execute and deliver to Bank such additional documents
      and will provide such additional information as Bank may reasonably require,
      to
      carry out the terms of this Modification.

     

    (c) Borrowers
      hereby indemnify, hold harmless, and upon request will defend Bank and its
      shareholders, officers, directors, employees, attorneys and agents, and their
      respective
      successors and assigns (collectively, the “Indemnified
      Parties”)
      from
      and against any and all claims and liabilities to third parties, and will pay
      and reimburse to the Indemnified Parties all losses, payments, reasonable costs
      and expenses associated therewith, or with Bank’s defense (including without
      limitation reasonable attorneys fees) which Bank may suffer, incur or be exposed
      to by reason of or in connection with or rising out of (i) the transactions
      evidenced by or referred to in or related to this Modification or any of the
      Loan Documents, as modified by this Modification; and (ii) any actions or
      omissions of any one or more of the Indemnified Parties which conforms with
      the
      terms of this Modification or the Loan Documents, or is in good faith and
      connected therewith or with the enforcement thereof; provided,
      however,
      that
      the Indemnified Parties shall not be indemnified, defended or held harmless
      for
      any consequential or indirect losses or damages, or any losses or damages which
      were caused by the Indemnified Parties’ willful misconduct or gross negligence.
      The provisions of this paragraph shall survive any cancellation, satisfaction,
      termination or modification of this Modification, the Note, the Deed of Trust,
      the Mortgage, any other Loan Document, and the repayment of the
      Loan.

     

    (d) This
      Modification shall be governed by and construed in accordance with the laws
      of
      the Commonwealth of Pennsylvania.

     

    (e) Borrowers
      shall pay all costs and expenses of Bank in connection with the preparation,
      execution, delivery, administration and enforcement of this Modification
      (including title charges and the fees and out-of-pocket costs of counsel with
      respect hereto). 

     

    (f) This
      Modification may be signed in counterparts, all of which when taken together
      shall constitute one and the same instrument.

     

    (g) BORROWERS
      ACKNOWLEDGE THAT THE NOTE, AND OTHER LOAN DOCUMENTS CONTAIN AUTHORIZATIONS
      TO
      CONFESS JUDGMENT AGAINST BORROWERS, THAT AT THE TIME ORIGINAL BORROWERS EXECUTED
      THE NOTE, AND THE OTHER LOAN DOCUMENTS BORROWERS CONSULTED, AND IN CONNECTION
      WITH THE EXECUTION OF THIS MODIFICATION AND THE EXECUTION OF THE DOCUMENTS
      AND
      INSTRUMENTS REQUIRED HEREBY HAVE CONSULTED LEGAL COUNSEL WITH RESPECT THERETO
      AND THAT BORROWERS UNDERSTAND (AND AT THE TIME BORROWERS EXECUTED THE NOTE,
      AND
      OTHER LOAN DOCUMENTS BORROWERS UNDERSTOOD) THAT THE EXERCISE BY BANK
      OF   

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

     

    THE
      AUTHORIZATIONS WILL RESULT IN THE ENTRY OF A JUDGMENT AGAINST BORROWERS AND
      THE
      SALE OR ATTACHMENT OF OR EXECUTION UPON BORROWERS’ PROPERTY (INCLUDING WITHOUT
      LIMITATION REAL PROPERTY, PERSONAL PROPERTY AND BANK ACCOUNTS) WITHOUT PRIOR
      NOTICE OR THE OPPORTUNITY FOR A HEARING.

     

    

    Signature
      lines follow on next page.

     

    
      
        
        

      

      
        -
          21
          -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Modification as of the
      date written above.

     

     

    Witness/Attest:     BORROWERS:

     

    RESOURCE
      AMERICA, INC., a Delaware corporation

     

    ______________________________               By:
      __________________________________

    Name:

    Title:

    

     

    RESOURCE
      PROPERTIES XXX, INC., a Delaware corporation

     

    ______________________________               By:
      __________________________________

    Name:

    Title:

    

     

    RESOURCE
      PROPERTIES XLI, INC., a Delaware corporation

     

     

    ______________________________              By:
      __________________________________

    Name:

    Title:

    

     

    RESOURCE
      CAPITAL INVESTOR, INC., a Delaware corporation

     

    ______________________________           By:
      __________________________________

    Steven
      Kessler, CFO

    

     

    
      
        
        

      

      
        -
          22
          -

        
          

        

      

      
        
        

      

    

    

    

    

    BANK:

    

    SOVEREIGN
      BANK, a federal banking association

    

    

    Attest:
      _____________________________                              
By:
      ________________________________

    Name:

    Title:

    
      
        
        

      

      
        -
          23
          -

        
          

        

      

      
        
        

      

    

    STATE
      OF       :

    :
      SS

    COUNTY
      OF      :

    

    BE
      IT
      REMEMBERED, that on this _______ day of July, 2006, personally came before
      me,
      the Subscriber, a Notarial Officer for the State and County aforesaid,
      ____________, the _____________ of RESOURCE AMERICA, INC. and
      the
      President
      of
RESOURCE
      PROPERTIES XXX, INC., and RESOURCE PROPERTIES XLI, INC. each a Delaware
      corporation, each existing under the laws of the State of Delaware, party to
      this instrument, known to me personally to be such, and acknowledged this
      instrument to be the act and deed of the aforesaid corporations, that the
      signature of the officer thereto is in his own proper handwriting, and that
      his
      act of sealing, executing, acknowledging and delivering said instrument was
      duly
      authorized by the aforesaid corporations.

    

    IN
      WITNESS WHEREOF, I have hereunto set may hand and official seal.

    

    _____________________________

    Notary
      Public

    

    

    

    

    STATE
      OF      :

    :
      SS

    COUNTY
      OF      :

    

    BE
      IT
      REMEMBERED, that on this _____day of July, 2006, personally came before me,
      the
      Subscriber, a Notarial officer of the State and County aforesaid, Steven J.
      Kessler, the Chief Financial officer of RESOURCE CAPITAL INVESTOR, INC., a
      Delaware corporation, existing under the Laws of the State of Delaware
party
      to
      this instrument, known to me personally to be such, and acknowledged this
      instrument to be the act and deed of the aforesaid corporations, that the
      signature of the officer thereto is in his own proper handwriting, and that
      his
      act of sealing, executing, acknowledging and delivering said instrument was
      duly
      authorized by the aforesaid corporations.

    

    IN
      WITNESS WHEREOF, I have hereunto set may hand and official seal.

    

    _____________________________

    Notary
      Public

    
      
        
        

      

      
        -
          24
          -

        
          

        

      

      
        
        

      

    

     

     

    EXHIBIT
      “A”

     

    Collateral

     

    

    
      	
              A.

            	
              Resource
                Properties XXX, Inc.
                (Headhouse)

            

    

    

    Collateral
      Assignment of (i) Leasehold Mortgage dated April 27, 2006 covering real property
      and improvements known as The Headhouses of Piers 3 and 5 North Columbus
      Boulevard, Philadelphia, PA; (ii) assignment of leases dated April 27, 2006;
      

    

    B. Collateral
      Assignment of that certain loan in the amount of $6,750,000.00 from RPI XLI
      to
      Intown Development Corporation, a Connecticut corporation and National Housing
      Partnership, a District of Columbia limited partnership, dated ____ and all
      documents and instruments evidencing and/or securing the same; 

    

    

    C. Resource
      America, Inc.

    

    All
      issued and outstanding shares of Resource Properties XLI, Inc.

    

    D. Resource
      Capital Investor, Inc.

     

    700,000
      shares of the stock of Resource Capital Corp.

    
      
        
        

      

      
        -
          25
          -

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “B”

     

    Real
      Estate

     

    

     

    1. 3-7
      N.
      Christopher Columbus Boulevard, Philadelphia, Pennsylvania

     

    

     

    
      
        
        

      

      
        -
          26
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5.3

     

    Ownership
      Interests of Resulting Borrowers

     

    

     

    1. Resource
      America, Inc. is a public company

     

    
      	 	
              2.

            	
              Resource
                Properties XXX, Inc., Resource Properties XLI, Inc. and Resource
                Capital
                Investor, Inc. are all owned by Resource America,
                Inc.

            

    

     

    
      
        
        

      

      
        -
          27
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5.4

     

    Stock
      Owned by Resulting Borrowers

     

    See
      attached.

     

    

    
      
        
        

      

      
        -
          28
          -

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      5.7

    

    

    Pending
      Litigation or Proceedings 

    

    

    Pending
      litigation matters involving Resource America, Inc.:

    

    
      	
              1.

            	
              Cherry,
                et al. v. Resource America, Inc., et al.,
                New York Supreme Court, Chautauqua County, No.
                K1-2000-171.

            

    

    
      	
              2.

            	
              Pyramid
                Video, Inc. V. National Press Building L.P., et al.,
                District of Columbia Superior Court, No.
                02-0003479.

            

    

    
      
        
        

      

      
        -
          29
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5.13

     

    Names
      and Addreses of Resulting Borrowers

     

    

    Resource
      America, Inc. - Jonathan Z. Cohen, President

    Resource
      Properties XXIV, Inc. - Alan F. Feldman, President

    Resource
      Properties XLI, Inc. - Alan F. Feldman, President

    Resource
      Capital Investor, Inc. - Jonathan Z. Cohen, President

    

    1845
      Walnut Street, 10th Floor

    Philadelphia,
      PA 19103 

    

     

    
      
        
        

      

      
        -
          30
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5.18

     

    Encumbrances

     

    The
      property and assets of Resulting Borrowers are not subject to any lien,
      encumbrance or security interest except as set forth below:

     

     

    1. 3
      - 7 N.
      Christopher Columbus Boulevard, Philadelphia, Pennsylvania

     

    a. $2,800,000
      Leasehold Mortgage held by Resource Properties XXX, Inc.

     

    
      
        
        

      

      
        -
          31
          -

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5.22

     

    Permitted
      Bank Accounts

     

    

    Hudson
      United Bank

    1607
      Walnut Street

    Philadelphia,
      PA 19103

    

    Resource
      Properties XXX, Inc.

    80041-56064

    00042-47108

    

    

    Resource
      Properties XLI, Inc. 

    42-92665

    

    At
      Hudson
      United Bank

    1000
      MacArthur Blvd.

    Mahwah,
      NJ 07430

    

     

        Sovereign
      Bank

        0322035589

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