Document:

ex10_1bsecondamdcommerce.htm

     

    
      

      

    

     

    Exhibit
      10.1(b)

     

    SECOND
      AMENDMENT TO LOAN AND SECURITY AGREEMENT

     

     

    This
      SECOND AMENDMENT AND JOINDER TO LOAN AND SECURITY AGREEMENT (“Amendment”) is
      dated November 15, 2007 among Resource
      America, Inc., a Delaware corporation (“Borrower”), Commerce
      Bank, N.A., a national banking association, in
      its capacity as agent ("Agent"), Commerce
      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 each being a "Lender" and collectively all being
      "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      restated, superseded, amended or replaced from time to time, the “Loan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 not to exceed Seventy Five Million Dollars ($75,000,000) (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, interalia, 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.  Section 1 of the Loan Agreement shall be
      amended by deleting the definitions of Aggregate Non-Callable Management
      Fees and Senior Management Fees and replacing each as
      follows:

     

    Aggregate
      Non-Callable Management Fees— At any time, the aggregate net present value
      of all management fees earned through the reinvestment period as defined in
      the
      Collateralized Debt Offering documents (other than Excluded Management Fees)
      to
      which Borrower, Trapeza Management, Subsidiary Guarantors and Resource Europe
      Management Limited are entitled pursuant to all Management Agreements, Trapeza
      Management Agreements and UK Management Agreements in effect from time to time;
      provided that Agent, on behalf of Lenders shall have a first priority perfected
      Lien in all fees payable under any Management Agreement (other than under the
      Trapeza Management

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Agreements)
      and any UK Management Agreement.  Net present value, for the purpose
      of this definition, shall be calculated as follows: the Management Fee Amount,
      discounted by (i.e. divided by) 1.08 to the  power of "n", with "n"
      being the number of years in the discount period.

     

    Senior
      Management Fees– For any period, the aggregate amount of (i) the REIT
      Management Fees payable in cash plus (ii) all senior management fees
      earned through the reinvestment period as defined in the Collateralized Debt
      Offering documents to which Borrower, Trapeza Management, Subsidiary Guarantors
      and Resource Europe Management Limited are entitled to under all Management
      Agreements, the Trapeza Management Agreements and UK Management Agreements
      (other than Excluded Management Fees and subordinated management fees) in effect
      from time to time in which as to subclauses (i) and (ii) Agent, on behalf of
      Lenders, shall have a first priority perfected Lien in all fees payable under
      any Management Agreement (other than under the Trapeza Management Agreements)
      and any UK Management Agreement.

     

    2.           Section
      1 of the Loan Agreement shall be amended by adding a new definition of UK
      Management Agreements as follows:

     

     UK
      Management Agreements– Collectively, those certain management agreements
      identified on Schedule H attached hereto.

     

    3.           Schedule
      C of the Loan Agreement shall be deleted in its entirety and replaced with
      Schedule C attached hereto.

     

    4.           A
      new Schedule H shall be added to the Loan Agreement in the form attached
      hereto as Schedule H.

     

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

     

    a.           Prior
      Representations. Borrower, by its execution of this Amendment, reconfirms
      all warranties and representations made to Lenders under the Loan Agreement
      and
      the other Loan Documents (as modified by
Schedule A to the Second Amendment
      attached hereto and made part hereof), and restate 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.

     

    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 after giving
      effect to this Amendment.

     

    6.           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.

     

    7.           Confirmation
      of Indebtedness. Borrower confirms and acknowledges that as of the close of
      business on November 14, 2007, (i) it is indebted to Agent and Lenders under
      the
      Loan Documents in the aggregate principal amount of $42,846,420 without any
      deduction, defense, setoff, claim or counterclaim, of any nature as of the
      date
      of this First Amendment, plus all fees, costs and Expenses incurred to date
      in
      connection with the Loan Documents.

     

    8.           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.

     

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

     

    a.           Execution
      and delivery by Borrower and each Lender of this Amendment to
      Agent;

     

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

     

    c.           A
      security assignment (the “UK Pledge Agreement”) executed by Resource Europe
      Management Limited granting Agent and Lenders a first priority Lien on, and
      security interest in, all management fees and proceeds payable under the UK
      Management Agreements, in form and substance satisfactory to Agent;

     

    d.           An
      opinion from Borrower’s United Kingdom counsel relating to the validity, and
      enforceability of the UK Pledge Agreement, in form and substance satisfactory
      to
Agent;
      and

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    e.           Such
      other items as Agent may reasonably require.

     

    10.           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.

     

    11.           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.

     

    12.           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.

     

    13.           Waiver
      of Jury Trial:  BORROWER, AGENT AND 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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    

    BORROWER:

    Resource
      America, Inc.

    

    By: _____________________                                                               

    Name: ___________________                                                                          

    Title: ____________________                                                                          

    

    

    AGENT:

    Commerce
      Bank, N.A.

    
      

      By: _____________________                                                               

      Name: ___________________                                                                          

      Title: ____________________                                                                          

    LENDERS:

    Commerce
      Bank, N.A., as Lender

    
      

      By: _____________________                                                               

      Name: ___________________                                                                          

      Title: ____________________                                                                          

       

    

    

    U.S.
      Bank, National Association, as
      Lender

    
      

      By: _____________________                                                               

      Name: ___________________                                                                          

      Title: ____________________                                                                          

(Signature
      Page S-1 to Second Amendment to Loan & Security Agreement)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
                                AGREED
        TO AND
        ACCEPTED:

    

     

    SURETIES:

    

    Apidos
      Capital Management, LLC

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

      

    

    

    Chesterfield
      Mortgage Investors, Inc.

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

         

         

      

    

    Coredo
      Capital Management, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Ischus
      Capital Management, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    RAI
      Ventures, Inc.

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    RCP
      Financial, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    

    

    Resource
      Credit Management, LLC

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

    

    Resource
      Capital Manager, Inc.

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

    

    Resource
      Capital Investor, Inc.

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

    

    Resource
      Capital Partners, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

       

    

    

    Resource
      Credit Partners GP, Inc.

    
      
        

        By:   ________________________________                                                             

        Name:  ___________________________

        Title:    ___________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Resource
      Financial Institutions Group,  Inc.

    

    By:   ________________________________                                                             

    Name:  ___________________________

    Title:    ___________________________

    

    

    Resource
      Financial Fund Management, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Housing Investors I, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Housing Investors II, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Housing Investors III, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Housing Investors IV, Inc.

     

    
      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    Resource
      Leasing, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Programs, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties VIII, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XIV, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XVII, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XXIV, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Resource
      Properties XXV, Inc.

     

    
      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XXVI, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XXX, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XXXI, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XXXIII, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XL, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Resource
      Properties XLI, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XLIX, Inc.

     

    
      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties 54, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Properties XLVII, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

                                    Resource
      Real Estate,
      Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Real Estate Funding, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Resource
      Real Estate Holdings, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Rittenhouse, Inc.

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    Resource
      Real Estate Management, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    RRE1
      Duraleigh Member, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

    RRE2
      Duraleigh Member, LLC

    
      

      By:   ________________________________                                                             

      Name:  ___________________________

      Title:    ___________________________

 (Signature
      Page S-2 to Second Amendment to Loan & Security Agreement)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “A”

     

    None

     

    (Schedule
      A to Second Amendment to Loan & Security Agreement)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “C”

     

    List
      of Subsidiaries that cannot be Subsidiary Guarantors

    

    
      	
               

            	
              1.

            	
              Chadwick
                Securities, Inc.

            

    

    
      	
               

            	
              2.

            	
              Resource
                Europe Management Limited

            

    

    
      	
               

            	
              3.

            	
              Resource
                Euope Limited

            

    

    
      	
               

            	
              4.

            	
              Trapeza
                Capital Management LLC

            

    

    5.           
       Trapeza Manager, Inc.

    
      	
               

            	
              6.

            	
              Trapeza
                Funding, LLC

            

    

    
      	
               

            	
              7.

            	
              Trapeza
                Funding II, LLC

            

    

    
      	
               

            	
              8.

            	
              Trapeza
                Funding III, LLC

            

    

    
      	
               

            	
              9.

            	
              Trapeza
                Funding IV, LLC

            

    

    
      	
               

            	
              10.

            	
              Trapeza
                Funding V, LLC

            

    

    
      	
               

            	
              11.

            	
              Trapeza
                TPS, LLC

            

    

    
      	
               

            	
              12.

            	
              Trapeza
                Management Group, LLC

            

    

    
      	
               

            	
              13.

            	
              Structured
                Finance Fund GP, LLC

            

    

    
      	
               

            	
              14.

            	
              Structured
                Finance Management LLC

            

    

    
      	
               

            	
              15.

            	
              Axios
                Capital Management, LLC

            

    

    
      	
               

            	
              16.

            	
              Resource
                RSI Phase I, LLC

            

    

    
      	
               

            	
              17.

            	
              Resource
                RSI Phase II, LLC

            

    

    
      	
               

            	
              18.

            	
              Press
                Building, LLC

            

    

    
      	
               

            	
              19.

            	
              RCP
                Nittany Pointe Manager, Inc.

            

    

    
      	
               

            	
              20.

            	
              RCP
                Chinoe Creek Manager, Inc.

            

    

    
      	
               

            	
              21.

            	
              RCP
                Fountains GP, Inc.

            

    

    
      	
               

            	
              22.

            	
              RCP
                Portland Courtyard Manager, Inc.

            

    

    
      	
               

            	
              23.

            	
              RCP
                Albuquerque Manager, Inc.

            

    

    
      	
               

            	
              24.

            	
              RCP
                Avalon Manager, Inc.

            

    

    
      	
               

            	
              25.

            	
              RCP
                Falls at Duraleigh Manager, Inc.

            

    

    
      	
               

            	
              26.

            	
              RCP
                Sage Canyon Manager, Inc.

            

    

    
      	
               

            	
              27.

            	
              RCP
                Cuestas Manager, Inc.

            

    

    
      	
               

            	
              28.

            	
              RCP
                Holdco I Manager, Inc.

            

    

    
      	
               

            	
              29.

            	
              RCP
                Reserves Manager, Inc.

            

    

    
      	
               

            	
              30.

            	
              RCP
                Foxglove Manager, Inc.

            

    

    
      	
               

            	
              31.

            	
              RCP
                Santa Fe Manager, Inc.

            

    

    
      	
               

            	
              32.

            	
              RCP
                Regents Center Manager, Inc.

            

    

    
      	
               

            	
              33.

            	
              RCP
                Highland Lodge Manager, Inc.

            

    

    
      	
               

            	
              34.

            	
              RCP
                Reserves Holdings Manager, Inc.

            

    

    
      	
               

            	
              35.

            	
              RCP
                Grove Manager, Inc.

            

    

    
      	
               

            	
              36.

            	
              RCP
                Howell Bridge Manager, Inc.

            

    

    
      	
               

            	
              37.

            	
              RCP
                Heritage Lake Manager, Inc.

            

    

    
      	
               

            	
              38.

            	
              RCP
                Westchase Wyndham Manager, Inc.

            

    

    
      	
               

            	
              39.

            	
              RCP
                Pear Tree Manager, Inc.

            

    

    
      	
               

            	
              40.

            	
              RCP
                Wind Tree Manager, Inc.

            

    

    
      	
               

            	
              41.

            	
              RCP
                Chenal Brightwaters Manager, Inc.

            

    

    
      	
               

            	
              42.

            	
              AR
                Real Estate Investors, LLC

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	 	 

      	
               

            	
              43.

            	
              Resource
                Asset Management, Inc.

            

    

    
      	
               

            	
              44.

            	
              LEAF
                Asset Management, LLC

            

    

    
      	
               

            	
              45.

            	
              LEAF
                Commercial Finance Income Fund I,
                LP

            

    

    
      	
               

            	
              46.

            	
              LEAF
                Commercial Finance Income Fund II,
                LP

            

    

    
      	
               

            	
              47.

            	
              LEAF
                Equipment Leasing Income Fund III,
                LP

            

    

    
      	
               

            	
              48.

            	
              FLI
                Holdings, Inc.

            

    

    
      	
               

            	
              49.

            	
              LEAF
                Financial Corporation

            

    

    
      	
               

            	
              50.

            	
              LEAF
                Commercial Finance Co., LLC

            

    

    
      	
               

            	
              51.

            	
              Lease
                Equity Appreciation Fund I, LP

            

    

    
      	
               

            	
              52.

            	
              LEAF
                Fund I, LLC

            

    

    
      	
               

            	
              53.

            	
              Lease
                Equity Appreciation Fund II, LP

            

    

    
      	
               

            	
              54.

            	
              LEAF
                Fund II, LLC

            

    

    
      	
               

            	
              55.

            	
              Lease
                Equity Appreciation Fund III, LP

            

    

    
      	
               

            	
              56.

            	
              LEAF
                Funding, Inc.

            

    

    
      	
               

            	
              57.

            	
              LEAF
                Institutional Direct Management,
                LLC

            

    

    
      	
               

            	
              58.

            	
              Resource
                Capital Funding II, LLC

            

    

    
      	
               

            	
              59.

            	
              LEAF
                Ventures, LLC

            

    

    
      	
               

            	
              60.

            	
              Merit
                Capital Manager, LLC

            

    

    
      	
               

            	
              61.

            	
              Merit
                Capital Advance, LLC

            

    

    
      	
               

            	
              62.

            	
              LEAF
                Capital Management, Inc.

            

    

    
      	
               

            	
              63.

            	
              RAI
                Financial, Inc.

            

    

    
      	
               

            	
              64.

            	
              Resource
                Commercial Mortgages, Inc.

            

    

    
      	
               

            	
              65.

            	
              Resource
                Financial Services, Inc.

            

    

    
      	
               

            	
              66.

            	
              WS
                Mortgage Acquisition Corp.

            

    

    
      	
               

            	
              67.

            	
              Resource
                Properties II, Inc.

            

    

    
      	
               

            	
              68.

            	
              Resource
                Properties IV, Inc.

            

    

    
      	
               

            	
              69.

            	
              Resource
                Properties VI, Inc.

            

    

    
      	
               

            	
              70.

            	
              Resource
                Properties XV, Inc.

            

    

    
      	
               

            	
              71.

            	
              Resource
                Properties XVIII, Inc.

            

    

    
      	
               

            	
              72.

            	
              Resource
                Properties XX, Inc.

            

    

    
      	
               

            	
              73.

            	
              Resource
                Properties XXII, Inc.

            

    

    
      	
               

            	
              74.

            	
              Resource
                Properties XXIII, Inc.

            

    

    
      	
               

            	
              75.

            	
              Resource
                Properties XXIX, Inc.

            

    

    
      	
               

            	
              76.

            	
              Resource
                Properties XXXII, Inc.

            

    

    
      	
               

            	
              77.

            	
              Resource
                Properties XXXIV, Inc.

            

    

    
      	
               

            	
              78.

            	
              Resource
                Properties XXXVI, Inc.

            

    

    
      	
               

            	
              79.

            	
              Resource
                Properties XXXVIII, Inc.

            

    

    
      	
               

            	
              80.

            	
              Resource
                Properties XLII, Inc.

            

    

    
      	
               

            	
              81.

            	
              Resource
                Properties XLIV, Inc.

            

    

    
      	
               

            	
              82.

            	
              Resource
                Properties XLVI, Inc.

            

    

    
      	
               

            	
              83.

            	
              Resource
                Properties 50, Inc.

            

    

    
      	
               

            	
              84.

            	
              Resource
                Properties 51, Inc.

            

    

    
      	
               

            	
              85.

            	
              Resource
                Properties 52, Inc.

            

    

    
      	
               

            	
              86.

            	
              Resource
                Properties 53, Inc.

            

    

    
      	
               

            	
              87.

            	
              Deerfield
                RPI, LLC

            

    

    
      	
               

            	
              88.

            	
              Resource
                Properties XXXV, Inc.

            

    

    (Schedule
      C to Second Amendment to Loan & Security Agreement)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      “H”

     

    UK
      Management Agreements

     

    1.           Investments
      Management and Collateral Administration Agreement between Resource Europe
      CLO I
      B.V. and Resource Europe Management Limited dated May 22, 2007.

     

    (Schedule
      H to Second Amendment to Loan & Security Agreement)ex10_4cjbrotmanemplagrmt.htm

     

    
      

      

    

     

    Exhibit
      10.4

     

    EMPLOYMENT
      AGREEMENT

    

    

    This
      Employment Agreement
      (“Agreement”) is executed on this 18th
      day of June, 2007,
      by and between RESOURCE AMERICA, INC., a Delaware corporation having its
      principal place of business at  One Crescent Drive, Suite 203, Navy
      Yard Corporate Center; 2nd floor,
      Philadelphia, PA 19112 (“RAI”), and JEFFREY F. BROTMAN
      (“Brotman”).

    

    BACKGROUND

    

    A.           RAI
      desires to employ Brotman and Brotman desires to be employed by
      RAI.

    

    B.           Brotman
      and RAI desire to formally set forth the terms, conditions and agreements
      regarding Brotman’ employment as Executive Vice-President.

    

    AGREEMENT

    

    NOW,
      THEREFORE, in consideration of the
      premises and the mutual promises and covenants set forth herein, and intending
      to be legally bound hereby, RAI and Brotman hereby agree as
      follows:

    

    1)           Employment.  During
      the term of this Agreement, Brotman shall be employed as Executive
      Vice-President of RAI.

    

    2)           Duties.  Brotman
      shall report to, and accept direction from, the Chief Executive Officer of
      RAI
      and from the Chairman of the Board of Directors of RAI.  Brotman shall
      serve RAI diligently, competently and to the best of his abilities. Brotman
      shall be required to devote  as much of his time and attention to the
      business of RAI as is be required to fulfill his duties.  It is
      recognized that Brotman in the past has participated, and it is agreed that
      Brotman may in the future may participate in business endeavors separate and
      apart from RAI, but that his principal professional endeavor shall be his
      service to RAI hereunder.

    

    3)           Term.  Brotman’s
      employment hereunder shall commence on June 18, 2007 and continue in full force
      and effect for a period of one (1) year, unless sooner terminated in accordance
      with the provisions hereof (the “Term”).  The Term shall
      automatically extend each day so that on any day that this Agreement is in
      effect, there shall be one (1) year remaining in the
      Term.  Notwithstanding the foregoing, such automatic extensions shall
      cease upon RAI’s written notice to Brotman of its election to terminate this
      Agreement at the end of the one (1) year period then in effect.

    

    4)           Compensation.

    

    a)           Base
      Compensation.  Brotman’s compensation during the Term shall
      be determined by the Board of Directors of RAI (the “Board”), subject to
      the next sentence and Section 4b).  During the initial year of the
      Term, RAI shall pay to Brotman “Base Compensation” initially in an amount
      equal to Three Hundred Fifty Thousand Dollars

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        
($350,000.00)
        per annum (the “Initial Level”).  Brotman’s Base Compensation will be
        payable in accordance with the general payroll practices by which RAI pays
        its
        executive officers.  It is understood that RAI, through the
        compensation committee of the Board of RAI, will review Brotman’s performance on
        an annual basis and may increase or decrease (but in no event below the Initial
        Level) his Base Compensation based upon his performance.

    

    

    (b)           Incentive
      Compensation.  During the Term, Brotman may receive incentive
      compensation in the form of cash bonus payments, stock option grants, restricted
      stock grants and other forms of incentive compensation, based upon Brotman’s
      performance.

    

    5)           Benefits.

    

    Brotman
      shall be entitled to receive
      the following benefits from RAI:

    

    a)           Participation
      in Plans.  Brotman shall be entitled to participate in all
      applicable incentive, savings, and retirement plans, practices, policies, and
      programs of RAI and in any group life, hospitalization or disability insurance
      plans, and health programs, in each case to the extent Brotman is eligible
      under
      the terms of such plans or programs.

    

    b)           Disability.  Brotman
      shall be eligible for any short and long term disability and any life insurance
      plans or programs that are available to other Senior Vice Presidents of RAI
      in
      each case to the extent Brotman is eligible under the terms of such plans or
      programs.

    

    c)           Reimbursement
      of Expenses.  RAI shall reimburse Brotman for all reasonable
      expenses incurred by Brotman in the performance of his duties, including without
      limitation expenses incurred during business-related travel. Brotman shall
      present to RAI, from time to time, an itemized account of such expenses in
      such
      form as may be required by RAI.

    

    d)           Personal
      Time Off.  Brotman shall be entitled to a number of days of
      personal time off work during each calendar year which shall be no less than
      the
      amount set forth in RAI’s company policies for its senior
      officers.  This includes days used for vacation, illness or other
      personal matters but is exclusive of such office holidays as may be designated
      by RAI.

    

    6)           Termination.

    

    Anything
      herein contained to the
      contrary notwithstanding, Brotman’s employment hereunder shall terminate as a
      result of any of the following events:

    

    a)           Brotman’s
      death;

    

    b)           Termination
      by RAI, for Cause.  “Cause” shall encompass the following:
      (i) Brotman has committed any act of fraud; (ii) illegal conduct or gross
      misconduct by Brotman, in either case that is willful and results in material
      and demonstrable damage to the business or reputation of RAI or any of its
      affiliates; (iii) Brotman is charged with a felony; (iv) the continued failure
      of Brotman substantially to perform Brotman’s duties under this Agreement (other
      than as

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    a
      result
      of physical or mental illness or injury), after RAI delivers to Brotman a
      written demand for substantial performance that specifically identifies, with
      reasonable opportunity to cure, the manner in which RAI believes that Brotman
      has not substantially performed his duties; or (v) Brotman has failed to follow
      reasonable written directions of RAI which are consistent with his duties
      hereunder and not in violation of applicable law, provided Brotman shall have
      ten business days after written notice to cure such failure;

    

    c)           Termination
      by RAI without Cause, upon thirty (30) days prior written notice to
      Brotman;

    

    d)           Brotman
      becomes disabled by reason of physical or mental disability for more than one
      hundred eighty (180) days in the aggregate or a period of ninety (90)
      consecutive days during any 365-day period and the Board determines, in good
      faith and in writing, that Brotman, by reason of such physical or mental
      disability, is rendered unable to perform his duties and services hereunder
      (a
“Disability”).  A termination of Brotman’s employment by RAI
      for Disability shall be communicated to Brotman by written notice, and shall
      be
      effective on the thirtieth (30th) day after
      receipt
      of such notice by Brotman (the “Disability Effective Date”), unless
      Brotman returns to full-time performance of his duties before the Disability
      Effective Date.

    

    e)           A
      termination by Brotman for Good Reason upon thirty (30) days’ prior written
      notice to RAI.  “Good Reason” shall mean: (i) any action by RAI
      that results in a material diminution in Brotman’s position, authority,
      reporting responsibility, duties or responsibilities, other than an isolated,
      insubstantial, and inadvertent action that is not taken in bad faith and is
      remedied by RAI promptly after receipt of notice thereof from Brotman; (ii)
      any
      purported termination of Brotman’s employment by RAI for a reason or in a manner
      not expressly permitted by this Agreement; (iii) any failure by RAI to
      comply with Section 11(c) of this Agreement; (iv) Brotman shall receive notice
      from RAI of termination of this Agreement at the end of the term then in effect
      pursuant to the last sentence of paragraph 3 of this Agreement or (v) any
      other substantial breach of this Agreement by RAI that either is not taken
      in
      good faith or is not remedied by RAI promptly after receipt of notice thereof
      from Brotman; provided, however, that termination by Brotman for Good Reason
      shall be effective only if such failure has not been cured within thirty (30)
      days after notice of such failure has been given to RAI.  Except as
      provided in the following sentence, a termination of employment by Brotman
      for
      Good Reason shall be effectuated by giving RAI written notice of the termination
      within two (2) months of the event constituting Good Reason, setting forth
      in
      reasonable detail the specific conduct of RAI that constitutes Good Reason
      and
      the specific provision(s) of this Agreement on which Brotman
      relies.  In the event of a Change of Control, Brotman may terminate
      his employment by providing such written notice to RAI for a period of time
      commencing on the date such Change of Control occurs and ending on the date
      six
      (6) months thereafter.

    

    f)           A
      termination by Brotman following a Change of Control (as defined below) of
      RAI.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    (g)     Termination
      by
      Brotman for any reason other than those set forth in Section 6(e) (other
      than by such Brotman’s death or disability) upon 180 day’s prior written notice
      to RAI.

    

    (h)           The
      “Date of Termination” means the date of Brotman’s death, the Disability
      Effective Date, the date on which the termination of Brotman’s employment by RAI
      for Cause or without Cause or by Brotman for Good Reason is effective, or the
      date on which Brotman gives RAI notice of a termination of employment without
      Good Reason, as the case may be.

    

    (i)           A
      “Change in Control” means the occurrence of any of the following
      events:

    

    (1)           RAI’s
      shareholders approve (or, in the event no approval of RAI’s shareholders is
      required, RAI consummates) a merger, consolidation, share exchange, division
      or
      other reorganization or transaction of RAI (a “Fundamental Transaction”) with
      any other corporation, other than a Fundamental Transaction which would result
      in the voting securities of RAI outstanding immediately prior thereto continuing
      to represent (either by remaining outstanding or by being converted into voting
      securities of the surviving entity) at least sixty percent (60%) of the combined
      voting power immediately after such Fundamental Transaction of (i) RAI’s
      outstanding securities, (ii) the surviving entity’s outstanding securities, or
      (iii) in the case of a division, the outstanding securities of each entity
      resulting from the division;

    

    (2)           the
      shareholders of RAI approve a plan of complete, liquidation or winding-up of
      RAI
      or an agreement for the sale or disposition (in one transaction or a series
      of
      transactions) of all or substantially all of RAI’s assets;

    

    (3)           during
      any period of twenty-four consecutive months, less than one-third of the
      individuals who at the beginning of such period constituted the Board (including
      for this purpose any new director whose election or nomination for election
      by
      RAI’s shareholders was approved by a vote of at least two-thirds (2/3) of the
      directors then still in office who were directors at the beginning of such
      period) are on the Board at the end of such period.

    

    
      	
               

            	
              (4)

            	
              neither
                Edward E. Cohen nor Jonathan Cohen are on the Board;
                or

            

    

     

    (5)           Jonathan
      Cohen is no longer Chief Executive Officer of RAI.

    

    7.           Effect
      of Termination.

    

    (a)           Death.  If
      Brotman’s employment is terminated by reason of Brotman’s death during the Term,
      RAI shall pay to Brotman’s designated beneficiaries (or, if there is no such
      beneficiary, to Brotman’s estate or legal representative), in a lump sum in cash
      within sixty (60) days after the Date of Termination, the sum of the following
      amounts: (1) any portion of Brotman’s Base Compensation through the Date of
      Termination that has been earned but not yet been paid; (2) any accrued but
      unpaid vacation pay through the Date of Termination; (3) an amount equal to
      one
      (1) year’s Base Compensation as of the Date of Termination; and (4) an amount
      equal to the value of all compensation (excluding stock option grants) received
      by

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Brotman
      pursuant to Section 4(b) during the prior year ending on the Date of
      Termination.  In the event of termination under this Section 7(a), all
      other benefits, payments or compensation to be provided to Brotman hereunder
      shall terminate and Brotman’s rights in any stock option or incentive plans
      shall be governed solely by the terms of the applicable plan and
      grant.

    

    (b)           Disability.  Upon
      the termination of Brotman’s employment pursuant to Section 6(d) hereof due to
      Brotman’s disability, Brotman shall be entitled to receive his Base Compensation
      and any incentive compensation (excluding stock option grants) pursuant to
      Section 4(b) until the expiration of the Term, payable on the dates Brotman
      would have been paid if he was still working for RAI.  If Brotman is
      terminated by reason of Disability, Brotman shall assign to RAI any benefits
      received on account of RAI provided disability insurance for the period in
      which
      he is receiving payments pursuant to this Section 7(b).

    

    (c)           By
      RAI for Cause; By Brotman Other than for Good Reason.  If
      Brotman’s employment is terminated by RAI for Cause during the Term, RAI shall
      pay Brotman his Base Compensation through the Date of Termination to the extent
      earned but not yet paid.  If Brotman voluntarily terminates employment
      during the Term, other than for Good Reason, RAI shall pay Brotman his Base
      Compensation through the Date of Termination to the extent earned but not yet
      paid.  In the event of termination under this Section 7(c), all other
      benefits, payments or compensation to be provided to Brotman hereunder shall
      terminate and the rights of Brotman in any stock option or incentive plans
      shall
      be governed solely by the terms of the applicable plan and grant.

    

    (d)           By
      RAI Other than for Cause, Death or Disability; by Brotman for Good
      Reason.  If, during the Term, RAI terminates Brotman’s
      employment, other than for Cause, Death or Disability, or Brotman terminates
      employment for Good Reason, RAI shall pay to Brotman amounts equal
      to
      Compensation as set forth in Section 4 and 5 as if he had remained employed
      by
      RAI pursuant to this Agreement, for a period of one year, payable in
      Brotman’s discretion as a lump sum or at the time when the same would have
      become due and payable if such termination had not occurred.  The
      incentive compensation paid to Brotman pursuant to the foregoing sentence shall
      be an amount which is not less than the amount of incentive compensation
      (excluding equity based compensation grants) Brotman received in the year
      immediately prior to the Date of Termination (and if such Date of Termination
      shall occur prior to Brotman receiving any incentive compensation, the incentive
      compensation for the purposes of this paragraph will be deemed to be an amount
      equal to the Base Compensation).   The payments and benefits
      provided pursuant to this Section 7(d) are intended as liquidated damages for
      a
      termination of Brotman’s employment by RAI other than for Cause or for the
      actions of RAI leading to a termination of Brotman’s employment by Brotman for
      Good Reason, and shall be the sole and exclusive remedy therefor.

    

    (e)           Following
      a Change of Control.  If, during the Term, Brotman terminates
      his employment within six (6) months following a Change of Control, or Brotman’s
      employment is terminated by RAI in anticipation of  a Change of
      Control or  within six (6) months following a Change of Control, RAI
      shall pay to Brotman amounts equal
      to
      compensation and benefits as set forth in Sections 4 and 5 as if he had remained
      employed by RAI pursuant to this Agreement, for a period of thirty (30)
      months, payable in at the time when the same would

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    have
      become due and payable if such termination had not occurred, or if the Change
      of
      Control occurs due to a Fundamental Transaction, at Brotman’s discretion in a
      lump sum upon such termination.  The incentive compensation paid to
      Brotman pursuant to the foregoing sentence shall be an amount which is not
      less
      than the amount of incentive compensation (excluding stock option grants)
      Brotman received in the year immediately prior to the Date of Termination (and
      if such Date of Termination shall occur prior to Brotman receiving any incentive
      compensation, the incentive compensation for the purposes of this paragraph
      will
      be deemed to be in an amount equal to the Base Compensation).  In the
      addition to the foregoing, any restricted stock of RAI or its affiliates
      outstanding on the Date of Termination shall be fully vested as of the Date
      of
      Termination and all options outstanding on the Date of Termination shall be
      fully vested and exercisable in accordance with the terms of the applicable
      plan
      and grant.  The payments and benefits provided pursuant to this
      Section 7(e) are intended as liquidated damages for a termination of Brotman’s
      employment by RAI other than for Cause or for the actions of RAI leading to
      a
      termination of Brotman’s employment by Brotman for Good Reason, and shall be the
      sole and exclusive remedy therefor.  Notwithstanding anything herein
      to the contrary, any termination of Brotman’s employment within one hundred
      twenty (120) days prior to a Change of Control (other than for Cause) will
      be
      deemed to have been in anticipation of such Change of Control.

    

    8.           Confidential
      Information.  All confidential information or trade
      secrets which Brotman may obtain during the period of employment relating to
      the
      business of RAI and its affiliates shall not be published, disclosed, or made
      accessible by him to any other person, firm, or corporation except in the
      business and for the benefit of RAI and its affiliates.  The
      provisions of this Section 8 shall survive the termination of this Agreement,
      but shall not apply to any information which is or becomes publicly available
      otherwise than by any breach of this Section 8.

    

    9.           Covenant
      Not to Solicit.  Brotman shall not, during the Term and
      for a period ending on the date one (1) year from the Date of Termination,
      directly or indirectly through another person or entity (i) induce or
      attempt to induce any officer or employee of RAI or its affiliates to leave
      the
      employ of RAI or such affiliate, or in any way interfere with the relationship
      between RAI and any of its affiliates and any officer or employee thereof,
      (ii) hire any person who was an officer or employee of RAI or any of its
      affiliates within 180 days after such person ceased to be an officer or employee
      of RAI or any of its affiliates or (iii) induce or attempt to induce any
      customer, supplier, vendor, licensee, issuer, originator, investor or other
      business relation of RAI or any of its affiliates to cease doing business with
      RAI or such affiliate or in any way interfere with the relationship between
      any
      such customer, supplier, vendor, licensee, issuer, originator, investor or
      business relation and RAI or any of its affiliates.

    

    10.           Remedies
      in Case of Breach of Certain Covenants or
      Termination.  RAI and Brotman agree that the damages that
      may result to RAI from misappropriation of confidential information or
      solicitation as prohibited by Sections 8 and 9 could be estimated only by
      conjecture and not by any accurate standard, and, therefore, any breach by
      Brotman of the provisions of such Sections, in addition to giving rise to
      monetary damages, will be enjoined.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    11.           Assignment.

    

    (a)           This
      Agreement is personal to Brotman and, without the prior written consent of
      RAI,
      shall not be assignable by Brotman.  This Agreement shall inure to the
      benefit of and be enforceable by Brotman’s legal representatives.

    

    (b)           This
      Agreement shall inure to the benefit of and be binding upon RAI and its
      successors and assigns, and RAI may assign this Agreement to any company in
      which RAI has an interest.  Brotman acknowledges and agrees that, if
      this Agreement is assigned pursuant to the previous sentence, he will also,
      if
      requested by any affiliate of RAI perform the reasonable duties of a vice
      president of finance of any such affiliate.

    

    (c)           RAI
      shall require any successor (whether direct or indirect, by purchase, merger,
      consolidation, or otherwise) to all or substantially all of the business and/or
      assets of RAI expressly to assume and agree to perform this Agreement in the
      same manner and to the same extent that RAI would have been required to perform
      it if no such succession had taken place.  As used in this Agreement,
“RAI” shall mean both RAI as defined above and any such successor that assumes
      and agrees to perform this Agreement, by operation of law or
      otherwise.

    

    12.           Miscellaneous.

    

    (a)           Severability.  In
      case any one or more of the provisions contained herein shall, for any reason,
      be held to be invalid, illegal, or unenforceable in any respect such validity,
      illegality or unenforceability shall not affect any other provisions of this
      Agreement, and this Agreement shall be construed as if such invalid, illegal
      or
      unenforceable provision(s) had never been contained herein, provided that such
      invalid, illegal or unenforceable provision(s) shall first be curtailed, limited
      or eliminated only to the extent necessary to remove such invalidity, illegality
      or unenforceability with respect to the applicable law as it shall then be
      applied.

    

    (b)           Modification
      of Agreement.  This Agreement shall not be modified by any
      oral agreement, either expressed or implied, and all modifications thereof
      shall
      be in writing and signed by the parties hereto.

    

    (c)           Waiver.  The
      waiver of any right under this Agreement by any of the parties hereto shall
      not
      be construed as a waiver of the same right at a future time or as a waiver
      of
      any other rights under this Agreement.

    

    (d)           Governing
      Law.  This Agreement shall be governed by and construed in
      accordance with the internal laws of the Commonwealth of Pennsylvania, without
      giving affect to the principles of conflicts of laws.

    

    (e)           Notices.  Any
      notice to be given pursuant to this Agreement shall be sufficient if in writing
      and mailed by certified or registered mail, postage-prepaid, to the addresses
      listed below, or to such other address as either party may notify the other
      of
      in accordance with this Section.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    If
      to
      RAI:

    

    Resource
      America, Inc.

    
      	
               

            	
              1845
                Walnut Street

            

    

    
      	
               

            	
              Suite
                1000

            

    

    
      	
               

            	
              Philadelphia,
                PA 19103

            

    

    
      	
               

            	
              Attn:
                Michael S. Yecies

            

    

    

    If
      to
      Brotman:

    

    Jeffrey
      F. Brotman

    P.O.
      Box 738

    Gladwyne,
      PA 19035

    

    

    (f)           Duplicate
      Originals and Counterparts.  This Agreement may be executed
      in any number of duplicate originals or counterparts or facsimile counterparts,
      each of such duplicate original or counterpart or facsimile counterpart shall
      be
      deemed to be an original and all taken together shall constitute but one and
      the
      same instrument.

    

    

    IN
      WITNESS WHEREOF, the parties hereto
      have executed or caused to be executed this Agreement as of the date first
      above
      written.

    

    

    RESOURCE
      AMERICA, INC.

    

    

    By:____________________________

    Michael
      S. Yecies

    SVP,
      CLO & Sec.

    

    

    JEFFREY
      F. BROTMAN

    

    ________________________________

     

     

    8

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