Document:

exh10_5.htm

     

     

    
      

      

    

    EXHIBIT
10.5

    EMPLOYMENT
AGREEMENT

     

    Amended
and Restated as of December 29, 2008

     

    This Amended and Restated
Employment Agreement (“Agreement”)
is dated as of December 29, 2008 by and between RESOURCE AMERICA, INC., a
Delaware corporation having its principal place of business at 1 Crescent Drive,
Suite 203, Navy Yard, Philadelphia, Pennsylvania 19112 (“RAI”)
and THOMAS C. ELLIOTT (“Elliott”).

     

    BACKGROUND

     

    WHEREAS,
Elliott and RAI are parties to an Employment Agreement dated November 17, 2006
(“Existing Agreement”); and

     

    WHEREAS,
RAI and Elliott desire to amend the Existing Agreement to comply with section
409A of the
Internal Revenue Code of 1986, as amended (“Code”)
and to make other appropriate changes to comply with applicable
law.

     

    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 Elliott hereby agree
that the Existing Agreement is amended and restated to read as
follows:

     

    1.          Employment.  During
the term of this Agreement, Elliott shall be employed as the Senior Vice
President-Finance and Operations of RAI.

     

    2.           Duties.  Elliott
shall report to, and accept direction from, the Chief Financial Officer of RAI
and from the Board of Directors of RAI (the “Board”).  Elliott
shall serve RAI diligently, competently and to the best of his
abilities.  Elliott shall devote substantially all of his time and
attention to the business of RAI and its affiliates, and shall not undertake any
other duties which conflict with these responsibilities.  Elliott
shall render such services as may reasonably be required of him to accomplish
the business purposes of RAI, and such duties as may be assigned to him from
time to time and which are appropriate for his position at
RAI.

     

    3.           Term.  Elliott’s
employment hereunder shall commence on the date hereof 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”). Such
Term shall automatically extend so that on any day that this Agreement is in
effect, it shall have a then current term of one (1)
year.  Such automatic extensions shall cease upon RAI’s written notice
to Elliott of its election to terminate this Agreement at the end of the one (1)
year period then in effect.

     

          4.           Compensation.

     

    (a)           Base
Compensation.  During
the period of employment, RAI shall pay to Elliott "Base Compensation" to be
established by the Board, which was initially as of the
date of
the Existing Agreement in an amount equal to Two Hundred Thousand Dollars
($200,000) per annum base compensation (the “Initial
Level”).  The Base Compensation will be payable in accordance
with the general payroll practices by which RAI pays its

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      executive officers, and the historical practice of RAI’s compensation of
Elliott.  It is understood that RAI, through the compensation
committee of the Board, will review Elliott’s performance on an annual basis and
increase or decrease (but in no event below the Initial Level) such Base
Compensation, based upon Elliott’s performance.

       

    

    (b)           Incentive
Compensation.  During the Term, Elliott 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 Elliott’s
performance.

     

    5.           Benefits.

     

                          Elliott shall
be entitled to receive the following benefits from RAI independent of any other
benefits which Elliott may receive from RAI or
otherwise:

     

                           (a)           Participation
in Plans.  Elliott 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 Elliott is eligible under
the terms of such plans or programs.

     

                          (b)           Disability.  Elliott
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 Elliott is eligible under the terms of such plans or
programs.

     

                          (c)           Reimbursement
of Expenses.  RAI shall reimburse Elliott for all reasonable
expenses incurred by Elliott in the performance of his duties, including without
limitation expenses incurred during business-related travel.  Elliott
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.  Elliott 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.  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, Elliott’s employment hereunder shall terminate as
follows:

     

                           (a)           Death.  Elliott’s
employment shall terminate automatically upon the death of
Elliott.

     

                           (b)           Termination
by RAI, for Cause.  RAI may
terminate this Agreement for Cause.  “Cause”
shall encompass the following: (i) Elliott has committed any act of fraud;
(ii)

    
      
        
        

      

      
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    illegal
conduct or gross misconduct by Elliott, 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) Elliott is charged with a felony; (iv) the
continued failure of Elliott substantially to perform Elliott’s duties under
this Agreement (other than as a result of physical or mental illness or injury),
after RAI delivers to Elliott a written demand for substantial performance that
specifically identifies, with reasonable opportunity to cure, the manner in
which RAI believes that Elliott has not substantially performed his duties; or
(v) Elliott has failed to follow reasonable written directions of RAI which are
consistent with his duties hereunder and not in violation of applicable law,
provided Elliott shall have ten business days after written notice to cure such
failure.

     

                            (c)           Termination
by RAI without Cause. RAI may terminate this Agreement without Cause upon
thirty (30) days prior written notice to Elliott.

     

                            (d)           Disability.  RAI
may terminate this Agreement if Elliott 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 Elliott, by reason
of such physical or mental disability, is rendered unable to perform his duties
and services hereunder (a “Disability”).  A
termination of Elliott’s employment by RAI for Disability shall be communicated
to Elliott by written notice, and shall be effective on the thirtieth (30th) day
after receipt of such notice by Elliott (the “Disability
Effective Date”), unless Elliott returns to full-time performance of his
duties before the Disability Effective Date.

     

                            (e)           Termination
by Elliott for Good Reason.  Elliott may terminate his
employment for Good Reason (as defined below) upon thirty (30) days’ prior
written notice to RAI, which notice shall set forth the grounds for such
termination and the
specific provision(s) of this Agreement on which Elliott
relies.  The notice must be provided within two (2) months
after the event giving rise to the termination for Good Reason
occurs.  RAI shall have a period of thirty (30) days during which it
may cure any condition reasonably susceptible of cure.  If RAI does
not correct the grounds for termination during the thirty (30) day period
following the notice of termination, Elliott’s termination of employment for
Good Reason must become effective within thirty (30) days after the end of the
cure period, in order for such termination to be treated as a termination for
Good Reason under this Agreement. For purposes of this paragraph (e) “Good
Reason” shall
mean: (i) any
action by RAI that results in a material diminution in Elliott’s position,
authority, 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 Elliott; (ii) any purported
termination of Elliott’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;  or (iv)   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
Elliott.

     

                           (f)           Change
of Control.  In
the event of a Change of Control (as defined below), Elliott 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.

    
      
        
        

      

      
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                            (g)           Termination
by Elliott Without Cause.  Elliott
may terminate this Agreement for any reason other than those set forth in
Section 6(e) (other than by such Elliott’s death or Disability) upon one
hundred eight (180) days prior written notice to RAI.

     

                            (h)           The
“Date
of Termination” means the date of Elliott’s death, the Disability
Effective Date, the date on which the termination of Elliott’s employment by RAI
for Cause or without Cause or by Elliott for Good Reason is effective, or the
date on which Elliott 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)           Consummation
of 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)           Consummation
of 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
Elliott’s employment is terminated by reason of Elliott’s death during the Term,
a death benefit shall be paid to Elliott’s designated beneficiaries (or, if
there is no such beneficiary, to Elliott’s estate or legal representative), in
an amount equal to the sum of the following amounts: (1) any portion of
Elliott’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

    
      
        
        

      

      
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    stock option grants)
received by Elliott 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 Elliott
hereunder shall terminate and Elliott’s rights in any stock option or incentive
plans shall be governed solely by the terms of the applicable plan and grant.
The
amount to be paid under this Section shall be paid as described in Section
7(f).

     

                       (b)          Disability.  Upon
the termination of Elliott’s employment pursuant to Section 6(d) hereof due to
Elliott’s Disability, Elliott shall be entitled to receive compensation
equal to his Base Compensation and any incentive compensation (excluding
stock option grants) pursuant to Section 4(b) that Elliott would otherwise have
earned through the expiration of the Term, as provided under Section
3.  The
amount to be paid under this Section shall be paid as described in Section 7(f);
provided, however that if Elliott is terminated by reason of Disability,
Elliott shall assign to RAI any benefits received on account of RAI provided
disability insurance for the period for which he has received payments pursuant
to this Section 7(b).

     

                       (c)           By
RAI for Cause; By Elliott Other than for Good Reason.  If
Elliott’s employment is terminated by RAI for Cause during the Term, RAI shall
pay Elliott his Base Compensation through the Date of Termination to the extent
earned but not yet paid.  If Elliott voluntarily terminates employment
during the Term, other than for Good Reason, RAI shall pay Elliott 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 Elliott hereunder shall
terminate and the rights of Elliott 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 Elliott for Good
Reason.  If, during the Term and before a Change of Control,
RAI terminates Elliott’s employment, other than for Cause, Death or Disability
(which shall include termination of this agreement at the end of its term due to
RAI giving the notice described in the last sentence of paragraph 3 hereof), or
Elliott terminates employment for Good Reason, RAI shall pay to Elliott an amount
equal to the Base Compensation as set forth in Section 4(a) that Elliott would
have earned if he had remained employed by RAI pursuant to this Agreement for a
period of one (1) year following his Date of Termination.  The
payments and benefits provided pursuant to this Section 7(d) are intended as
liquidated damages for a termination of Elliott’s employment by RAI other than
for Cause or for the actions of RAI leading to a termination of Elliott’s
employment by Elliott for Good Reason, and shall be the sole and exclusive
remedy therefor.  The
amount to be paid under this Section shall be paid as described in Section 7(f).
In addition, (i) Elliot shall receive the benefits set forth in 7(e)(ii)
and (ii) 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.

     

                       (e)           Following
a Change of Control.  If, during the Term, Elliott terminates
his employment following a Change of Control as provided in Section 6(f), or
Elliott’s employment is terminated by RAI or RAI’s successor following a Change
of Control then
RAI

    
      
        
        

      

      
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    shall
provide to Elliott the benefits described below (the “Severance
Benefits”).  All Severance Benefits shall be paid as described
in Section 7(f).

     

                                (i)           Severance
Payment.  In lieu of
any further compensation payments to Elliott for periods subsequent to the Date
of Termination, RAI shall pay to Elliott an amount
equal to (A) the Base Compensation as set forth in Section 4(a) that Elliott
would have earned if he had remained employed by RAI pursuant to this
Agreement through the end of the Term; plus (B) any incentive
compensation as set forth in Section 4(b) that that
Elliott would have earned if he had remained employed by RAI pursuant to this
Agreement through the end of the Term.  The incentive
compensation paid to Elliott pursuant to the foregoing sentence shall be an
amount which is not less than the amount of incentive compensation (excluding
stock option grants) Elliott received in the year immediately prior to the Date
of Termination.  In 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.

     

                                 (ii)           Benefits.

     

        (A)           For
the remainder of the Term (the
“Separation Period”), Elliott may elect continued health coverage under
RAI’s health plan in which Elliott participated at the Date of Termination, as
in effect from time to time, provided that Elliott shall be responsible for
paying the full monthly cost of such coverage, which shall be equal to the premium
determined
for purposes of continued coverage under section 4980B(f)(4) of the Code
(“COBRA
Premium”) in effect from time to time.

     

        (B)           RAI
shall pay Elliott an amount equal to the COBRA Premium cost of continued health
coverage under RAI’s health plan for the Separation Period, less the premium
charge that is paid by RAI employees for such coverage, as in effect on
Elliott’s Date of Termination.  The cash payments under this
subsection (B) shall be increased by a tax gross up payment equal to Elliott’s
income and FICA tax imposed on the payment under this subsection
(B).

     

        (C)           RAI
shall pay Elliott an amount equal to the cost that RAI would incur for life,
disability and accident insurance coverage (as calculated below) for the
Separation Period as if Elliott had continued in employment and participated in
RAI’s plans, less the premium charge that is paid by active RAI employees for
such coverage as in effect at Elliott’s Date of Termination.  The
monthly cost of disability, life and accident insurance coverage shall be
calculated based on RAI’s monthly cost of such coverage on Elliott’s Date of
Termination.   The cash payments under this subsection (C) shall
be increased by a tax gross up payment equal to Elliott’s income and FICA tax
imposed on the payment under this subsection (C).

     

    The
payments and benefits provided pursuant to this Section 7(e) are intended as
liquidated damages for a termination of Elliott’s employment, and shall be the
sole and exclusive remedy therefor.

     

    
      
        
        

      

      
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    f.           Payment
Provisions.

     

    (i)           Except
as provided in subsection (ii) below, all amounts paid upon Elliott’s
termination of employment as described in Section 7 shall be payable in regular
payroll installments over the applicable period described in the applicable
subsections .  Such installments shall commence within thirty (30)
days after the date of Elliott’s Date of Termination, subject to Elliott’s
delivery to RAI of an effective release of all claims against RAI and its
affiliates in
the standard form provided by RAI for employee terminations (“Release”)
and Elliott’s compliance with Section 13 below. Notwithstanding anything to the
contrary in this Agreement, if RAI is paying Severance Benefits to Elliott
pursuant to Section this 7(f)(i), then COBRA Premiums paid pursuant to Section
7(e)(ii)(B) shall be paid by RAI to Elliott only for the period during which
Elliott elects to participate in continued
health coverage under RAI’s health plan.  Notwithstanding anything in
this subsection (f) to the contrary, no Release shall be required with respect
to death benefits under Section 7(a)

     

    (ii)           If
Elliott’s employment is terminated upon or within two (2) years after a Change
of Control that is a 409A Change of Control, all amounts paid as upon Elliott’s
termination of employment as described in Section 7 shall be payable in a single
lump sum payment instead of installments.  The lump sum payment shall
be made within thirty (30) days after Elliott’s Date of Termination, subject to
Elliott’s delivery to RAI of an effective Release and compliance with Section 13
below.  For purposes of determining the amounts to be paid pursuant to
Section 7(e)(ii)(B) and Section 7(e)(ii)(C), the single lump sum payment shall
equal the total amount that would otherwise have been paid to Elliott under
Section 7(e)(ii)(B) and Section 7(e)(ii)(C) for the duration of the Separation
Period as determined as of the Date of Termination.  For purposes of
this Section, a “409A
Change of Control” means a
Change of Control of RAI that meets the requirements of a change of control
under section 409A of the Code and section 1.409A-3(i)(5) of the Treasury
Regulations, and any additional guidance or regulations promulgated under
section 409A of the Code.

     

    (iii)           Notwithstanding
the foregoing, all payments that are subject to the section 409A six-month delay
shall be postponed as described in Section 13 below.

     

    8.           Confidential
Information.  All confidential information or trade secrets
which Elliott 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.  Elliott 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

    
      
        
           

           

          DB1/60081948.4

        

         

      

      
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    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
Elliott 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 Elliott of the provisions of such Sections, in addition
to giving rise to monetary damages, will be enjoined.

     

    11.           Assignment.

     

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

    
      
        
        

      

      
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                          (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.

    

     

    If
to RAI:

     

    Resource America,
Inc.

                                   1
Crescent Drive, Suite 203

                   
Navy Yard

                   
Philadelphia, PA 19112

                                                 Attn:  Michael S.
Yecies

                 

    If
to Elliott:

     

    Thomas C.
Elliott

                  1 Crescent Drive, Suite
203

                  Navy Yard

                  Philadelphia,
PA  19112

     

                         
(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.

     

        13.           Section
409A.

     

        (a)           Payment
Delay.  Notwithstanding anything in this Agreement to the
contrary, if Elliott is a “specified employee” of a publicly traded corporation
under section 409A of the Code and if payment of any amount under this Agreement
is required to be delayed for a period of six (6) months after separation from
service pursuant to section 409A of the Code, payment of such amount shall be
delayed as required by section 409A of the Code, and the accumulated postponed
amount, with interest (if applicable), shall be paid in a lump sum payment
within ten (10) days after the end of the six-month period.  If
Elliott dies during the postponement period prior to the payment of postponed
amount, the amounts withheld on account of section 409A of the Code, with
interest (if applicable), shall be paid to the personal representative of
Elliott’s estate within sixty (60) days after the date of Elliott’s
death.  A “specified employee” shall mean an employee who, at any time
during the twelve (12) month

     

    
      
        
        

      

      
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period
ending on the identification date, is a “specified employee” under section 409A
of the Code, as determined by the Board.  The determination of
“specified employees,” including the number and identity of persons considered
“specified employees” and the identification date, shall be made by the Board in
accordance with the provisions of sections 416(i) and 409A of the Code and the
regulations issued thereunder.  If a Change of Control shall have
occurred and amounts are postponed on account of section 409A, interest on the
postponed amounts shall accrue during for the postponement period at the prime
rate published in the Wall
Street Journal on Elliott’s Date of Termination.

    

     

      
(b)           Section
409A Compliance.  This Agreement is intended to comply with the
requirements of section 409A of the Code, and shall in all respects be
administered in accordance with section 409A.  Notwithstanding
anything in the Agreement to the contrary, distributions may only be made under
the Agreement upon an event and in a manner permitted by section 409A of the
Code or an applicable exemption.  All payments to be made upon a
termination of employment under this Agreement may only be made upon a
“separation from service” under section 409A.  For purposes of section
409A of the Code, the right to a series of payments under this Agreement shall
be treated as a right to a series of separate payments.  In no event
may Elliott, directly or indirectly, designate the calendar year of a
payment.  All reimbursements and in-kind benefits provided under this
Agreement shall be made or provided in accordance with the requirements of
section 409A of the Code, including, where applicable, the requirement that (i)
any reimbursement shall be for expenses incurred during Elliott’s lifetime (or
during a shorter period of time specified in this Agreement), (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during a
calendar year may not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other calendar year, (iii) the reimbursement of
an eligible expense will be made on or before the last day of the calendar year
following the year in which the expense is incurred, and (iv) the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit.

     

     

    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:             /s/
      Michael S.
      Yecies                                                  

            
	 
      	
              Michael S.
      Yecies

            
	 
      	
              SVP, CLO &
      Sec.

            

    

     

     

    
      	 
      	
                       
      /s/ Thomas C. Elliott

            
	 
      	          THOMAS
      C. ELLIOTT
	 
      	 
      

    

     

    10exh10_6.htm

     

    
      

      

    

    EXHIBIT
10.6

    

      EMPLOYMENT
AGREEMENT

       

      Amended
and Restated as December 29, 2008

       

      This Amended and Restated
Employment Agreement (“Agreement”)
is dated as of December 29, 2008  by and between RESOURCE AMERICA,
INC., a Delaware corporation having its principal place of business at 1
Crescent Drive, Suite 203, Navy Yard, Philadelphia, Pennsylvania 19112 (“RAI”),
and MICHAEL S. YECIES (“Yecies”).

       

      BACKGROUND

       

      WHEREAS,
Yecies and RAI are parties to an Employment Agreement dated November 17, 2006
(“Existing Agreement”); and

       

      WHEREAS,
RAI and Yecies desire to amend the Existing Agreement to comply with section
409A of the Internal Revenue Code of 1986, as amended (“Code”)
and to make other appropriate changes to comply with applicable
law.

       

      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 Yecies hereby agree
that the Existing Agreement is amended and restated to read as
follows:

       

      1.           Employment.  During
the term of this Agreement, Yecies shall be employed as a Senior Vice President,
Chief Legal Officer and Secretary of RAI.

       

      2.           Duties.  Yecies
shall report to, and accept direction from, the Chief Executive Officer of RAI
and from the Board of Directors of RAI (the “Board”).  Yecies
shall serve RAI diligently, competently and to the best of his
abilities.  Yecies shall devote substantially all of his time and
attention to the business of RAI and its affiliates, and shall not undertake any
other duties which conflict with these responsibilities.  Yecies shall
render such services as may reasonably be required of him to accomplish the
business purposes of RAI, and such duties as may be assigned to him from time to
time and which are appropriate for his positions at
RAI.

       

      3.           Term.  Yecies’
employment hereunder shall commence on the date hereof 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”).  Such Term
shall automatically extend so that on any day that this Agreement is in effect,
it shall have a then current term of one (1) year.  Such
automatic extensions shall cease upon RAI’s written notice to Yecies of its
election to terminate this Agreement at the end of the one (1) year period then
in effect.

       

            4.           Compensation.

       

      (a)           Base
Compensation.  During
the period of employment, RAI shall pay to Yecies "Base Compensation" to be
established by the Board, which was initially as of
the

      
        
          
          

        

        
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      date of
the Existing Agreement in an amount equal to Two Hundred Ten Thousand Dollars
($210,000) per annum base compensation (the
“Initial
Level”).  Yecies’
Base Compensation will be payable in accordance with the general payroll
practices by which RAI pays its executive officers, and the historical practice
of RAI’s compensation of Yecies.  It is understood that RAI, through
the compensation committee of the Board, will review Yecies’ performance on an
annual basis and increase or decrease (but in no event below the Initial Level)
his Base Compensation based upon his performance.

       

      (b)           Incentive
Compensation.  During the Term, Yecies 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 Yecies’
performance.

       

      5.           Benefits.

       

      Yecies shall be entitled
to receive the following benefits from RAI independent of any other benefits
which Yecies may receive from RAI or otherwise:

       

      (a)           Participation
in Plans.  Yecies 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 Yecies is eligible under
the terms of such plans or programs.

       

      (b)           Disability.  Yecies
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 Yecies is eligible under the terms of such plans or
programs.

       

      (c)           Reimbursement
of Expenses.  RAI shall reimburse Yecies for all reasonable
expenses incurred by Yecies in the performance of his duties, including without
limitation expenses incurred during business-related travel.  Yecies
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.  Yecies 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.  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, Yecies’ employment hereunder shall terminate as
follows:

       

      (a)           Death.  Yecies’
employment shall terminate automatically upon the death of
Yecies.

       

      (b)           Termination
by RAI, for Cause.  RAI may
terminate this Agreement for Cause.  “Cause”
shall encompass the following: (i) Yecies has committed any act of fraud;
(ii)

       

      
        
          
          

        

        
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      illegal
conduct or gross misconduct by Yecies, 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) Yecies is charged with a felony; (iv) the
continued failure of Yecies substantially to perform Yecies’ duties under this
Agreement (other than as a result of physical or mental illness or injury),
after RAI delivers to Yecies a written demand for substantial performance that
specifically identifies, with reasonable opportunity to cure, the manner in
which RAI believes that Yecies has not substantially performed his duties; or
(v) Yecies has failed to follow reasonable written directions of RAI which are
consistent with his duties hereunder and not in violation of applicable law,
provided Yecies shall have ten business days after written notice to cure such
failure.

       

      (c)           Termination
by RAI without Cause. RAI may terminate this Agreement without Cause upon
thirty (30) days prior written notice to Yecies.

       

      (d)           Disability.  RAI
may terminate this Agreement if Yecies 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 Yecies, by reason
of such physical or mental disability, is rendered unable to perform his duties
and services hereunder (a “Disability”).  A
termination of Yecies’ employment by RAI for Disability shall be communicated to
Yecies by written notice, and shall be effective on the thirtieth (30th) day
after receipt of such notice by Yecies (the “Disability
Effective Date”), unless Yecies returns to full-time performance of his
duties before the Disability Effective Date.

       

      (e)           Good
Reason.
Yecies may terminate his employment for Good Reason (as defined below)
upon thirty (30) days’ prior written notice to RAI, which notice shall set forth
the grounds for such termination and the
specific provision(s) of this Agreement on which Yecies
relies.  The notice must be provided within two (2) months
after the event giving rise to the termination for Good Reason
occurs.  RAI shall have a period of thirty (30) days during which it
may cure any condition reasonably susceptible of cure.  If RAI does
not correct the grounds for termination during the thirty (30) day period
following the notice of termination, Yecies’ termination of employment for Good
Reason must become effective within thirty (30) days after the end of the cure
period, in order for such termination to be treated as a termination for Good
Reason under this Agreement. For purposes of this paragraph (e) “Good
Reason” shall
mean: (i) any action by RAI that results in a material diminution in Yecies’
position, authority, 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 Yecies; (ii) any
purported termination of Yecies’ 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; or (iv) 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
Yecies.

       

      (f)           Change
of Control.  In
the event of a Change of Control (as defined below), Yecies may terminate his
employment by providing such written notice to RAI for
a

      
        
          
          

        

        
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      period of
time commencing on the date such Change of Control occurs and ending on the date
six (6)months thereafter.

       

      (g)           Termination
by Yecies Without Cause.  Yecies
may terminate this Agreement for any reason other than those set forth in
Section 6(e) (other than by such Yecies’ death or Disability) upon one
hundred eight (180) days prior written notice to RAI.

       

      (h)           The
“Date
of Termination” means the date of Yecies’ death, the Disability Effective
Date, the date on which the termination of Yecies’ employment by RAI for Cause
or without Cause or by Yecies for Good Reason is effective, or the date on which
Yecies 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)           Consummation
of 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)           Consummation
of 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
Yecies’ employment is terminated by reason of Yecies’ death during the Term, a
death benefit shall be paid to Yecies’ designated beneficiaries (or, if there is
no such beneficiary, to Yecies’ estate or legal representative), in an amount
equal to the sum of the following amounts: (1) any portion of Yecies’ 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

      
        
          
          

        

        
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      the Date of Termination;
and (4) an amount equal to the value of all compensation (excluding stock option
grants) received by Yecies 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
Yecies hereunder shall terminate and Yecies’ rights in any stock option or
incentive plans shall be governed solely by the terms of the applicable plan and
grant. The
amount to be paid under this Section shall be paid as described in Section
7(f).

       

      (b)           Disability.  Upon
the termination of Yecies’ employment pursuant to Section 6(d) hereof due to
Yecies’ Disability, Yecies shall be entitled to receive compensation
equal to his Base Compensation and any incentive compensation (excluding
stock option grants) pursuant to Section 4(b) that Yecies would otherwise have
earned through the expiration of the Term, as provided under Section
3.  The
amount to be paid under this Section shall be paid as described in Section 7(f);
provided, however that if Yecies is terminated by reason of Disability,
Yecies shall assign to RAI any benefits received on account of RAI provided
disability insurance for the period for which he has received payments pursuant
to this Section 7(b).

       

      (c)           By
RAI for Cause; By Yecies Other than for Good Reason.  If
Yecies’ employment is terminated by RAI for Cause during the Term, RAI shall pay
Yecies his Base Compensation through the Date of Termination to the extent
earned but not yet paid.  If Yecies voluntarily terminates employment
during the Term, other than for Good Reason, RAI shall pay Yecies 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 Yecies hereunder shall
terminate and the rights of Yecies 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 Yecies for Good
Reason.  If, during the Term and before a Change of Control,
RAI terminates Yecies’ employment, other than for Cause, Death or Disability
(which shall include termination of this agreement at the end of its term due to
RAI giving the notice described in the last sentence of paragraph 3 hereof), or
Yecies terminates employment for Good Reason, RAI shall pay to Yecies an amount
equal to the Base Compensation as set forth in Section 4(a) that Yecies would
have earned if he had remained employed by RAI pursuant to this Agreement for a
period of one (1) year following his Date of Termination.  The
payments and benefits provided pursuant to this Section 7(d) are intended as
liquidated damages for a termination of Yecies’ employment by RAI other than for
Cause or for the actions of RAI leading to a termination of Yecies’ employment
by Yecies for Good Reason, and shall be the sole and exclusive remedy
therefor.  The
amount to be paid under this Section shall be paid as described in Section 7(f).
In addition, (i) Yecies shall receive the benefits set forth in 7(e)(ii)
and (ii) 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.

       

      
        
          
          

        

        
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      (e)           Following
a Change of Control.  If, during the Term, Yecies terminates
his employment following a Change of Control as provided in Section 6(f), or
Yecies’ employment is terminated by RAI or RAI’s successor following a Change of
Control then RAI
shall provide to Yecies the benefits described below (the “Severance
Benefits”).  All
Severance Benefits shall be paid as described in Section
7(f).

       

      (i)           Severance
Payment.  In lieu of
any further compensation payments to Yecies for periods subsequent to the Date
of Termination, RAI shall pay to Yecies an amount
equal to (A) the Base Compensation as set forth in Section 4(a) that Yecies
would have earned if he had remained employed by RAI pursuant to this
Agreement through the end of the Term; plus (B) any incentive
compensation as set forth in Section 4(b) that that
Yecies would have earned if he had remained employed by RAI pursuant to this
Agreement through the end of the Term.  The incentive
compensation paid to Yecies pursuant to the foregoing sentence shall be an
amount which is not less than the amount of incentive compensation (excluding
stock option grants) Yecies received in the year immediately prior to the Date
of Termination.  In 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.

       

      (ii)           Benefits.

       

                          (A)           For
the remainder of the Term (the
“Separation Period”), Yecies may elect continued health coverage under
RAI’s health plan in which Yecies participated at the Date of Termination, as in
effect from time to time, provided that Yecies shall be responsible for paying
the full monthly cost of such coverage, which shall be equal to the premium
determined
for purposes of continued coverage under section 4980B(f)(4) of the Code
(“COBRA
Premium”) in effect from time to time.

       

                          (B)           RAI
shall pay Yecies an amount equal to the COBRA Premium cost of continued health
coverage under RAI’s health plan for the Separation Period, less the premium
charge that is paid by RAI employees for such coverage, as in effect on Yecies’
Date of Termination.  The cash payments under this subsection (B)
shall be increased by a tax gross up payment equal to Yecies’ income and FICA
tax imposed on the payment under this subsection (B).

       

                          (C)           RAI
shall pay Yecies an amount equal to the cost that RAI would incur for life,
disability and accident insurance coverage (as calculated below) for the
Separation Period as if Yecies had continued in employment and participated in
RAI’s plans, less the premium charge that is paid by active RAI employees for
such coverage as in effect at Yecies’ Date of Termination.  The
monthly cost of disability, life and accident insurance coverage shall be
calculated based on RAI’s monthly cost of such coverage on Yecies’ Date of
Termination.   The cash payments under this subsection (C) shall
be increased by a tax gross up payment equal to Yecies’ income and FICA tax
imposed on the payment under this subsection (C).

       

      
        
          
          

        

        
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      The
payments and benefits provided pursuant to this Section 7(e) are intended as
liquidated damages for a termination of Yecies’ employment, and shall be the
sole and exclusive remedy therefor.

       

       

      f.           Payment
Provisions.

       

      (i)           Except
as provided in subsection (ii) below, all amounts paid upon Yecies’ termination
of employment as described in Section 7 shall be payable in regular payroll
installments over the applicable period described in the applicable subsections
..  Such installments shall commence within thirty (30) days after the
date of Yecies’ Date of Termination, subject to Yecies’ delivery to RAI of an
effective release of all claims against RAI and its affiliates in
the standard form provided by RAI for employee terminations (“Release”)
and Yecies’ compliance with Section 13 below. Notwithstanding anything to the
contrary in this Agreement, if RAI is paying Severance Benefits to Yecies
pursuant to Section this 7(f)(i), then COBRA Premiums paid pursuant to Section
7(e)(ii)(B) shall be paid by RAI to Yecies only for the period during which
Yecies elects to participate in continued
health coverage under RAI’s health plan.  Notwithstanding anything in
this subsection (f) to the contrary, no Release shall be required with respect
to death benefits under Section 7(a).

       

      (ii)           If
Yecies’ employment is terminated upon or within two (2) years after a Change of
Control that is a 409A Change of Control, all amounts paid as upon Yecies’
termination of employment as described in Section 7 shall be payable in a single
lump sum payment instead of installments.  The lump sum payment shall
be made within thirty (30) days after Yecies’ Date of Termination, subject to
Yecies’ delivery to RAI of an effective Release and compliance with Section 13
below.  For purposes of determining the amounts to be paid pursuant to
Section 7(e)(ii)(B) and Section 7(e)(ii)(C), the single lump sum payment shall
equal the total amount that would otherwise have been paid to Yecies under
Section 7(e)(ii)(B) and Section 7(e)(ii)(C) for the duration of the Separation
Period as determined as of the Date of Termination.

        For
purposes of this Section, a “409A
Change of Control” means a Change of Control of RAI that meets the
requirements of a change of control under section 409A of the Code and section
1.409A-3(i)(5) of the Treasury Regulations, and any additional guidance or
regulations promulgated under section 409A of the
Code.

       

      (iii)           Notwithstanding
the foregoing, all payments that are subject to the section 409A six-month delay
shall be postponed as described in Section 13 below.

       

      8.           Confidential
Information.  All confidential information or trade secrets
which Yecies 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.  Yecies 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

      
        
          
          

        

        
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      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
Yecies 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 Yecies of the provisions of such Sections, in addition
to giving rise to monetary damages, will be enjoined.

       

      11.           Assignment.

       

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

      
        
          
          

        

        
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      (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.

       

      If
to RAI:

       

      Resource America,
Inc.

                    1 Crescent Drive, Suite
203

                                   
Navy Yard

                                   
Philadelphia, PA 19112

                         
Attn:  Jonathan Cohen

       

      If
to Yecies:

       

      Michael S.
Yecies

                                    
1 Crescent Drive, Suite 203

                                    
Navy Yard

                                    Philadelphia,
PA 19112

       

      (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.

       

      13.           Section
409A.

       

      (a)           Payment
Delay.  Notwithstanding anything in this Agreement to the
contrary, if Yecies is a “specified employee” of a publicly traded corporation
under section 409A of the Code and if payment of any amount under this Agreement
is required to be delayed for a period of six (6) months after separation from
service pursuant to section 409A of the Code, payment of such amount shall be
delayed as required by section 409A of the Code, and the accumulated postponed
amount, with interest (if applicable), shall be paid in a lump sum payment
within ten (10) days after the end of the six-month period.  If Yecies
dies during the postponement period prior to the payment of postponed amount,
the amounts withheld on account of section 409A of the Code, with interest (if
applicable), shall be paid to the 

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          
personal
representative of Yecies’ estate within sixty (60) days after the date of
Yecies’ death.  A “specified employee” shall mean an employee who, at
any time during the twelve (12) month period ending on the identification date,
is a “specified employee” under section 409A of the Code, as determined by the
Board.  The determination of “specified employees,” including the
number and identity of persons considered “specified employees” and the
identification date, shall be made by the Board in accordance with the
provisions of sections 416(i) and 409A of the Code and the regulations issued
thereunder.  If a Change of Control shall have occurred and amounts
are postponed on account of section 409A, interest on the postponed amounts
shall accrue during for the postponement period at the prime rate published in
the Wall
Street Journal on Yecies’ Date of Termination.

      

       

      (b)           Section
409A Compliance.  This Agreement is intended to comply with the
requirements of section 409A of the Code, and shall in all respects be
administered in accordance with section 409A.  Notwithstanding
anything in the Agreement to the contrary, distributions may only be made under
the Agreement upon an event and in a manner permitted by section 409A of the
Code or an applicable exemption.  All payments to be made upon a
termination of employment under this Agreement may only be made upon a
“separation from service” under section 409A.  For purposes of section
409A of the Code, the right to a series of payments under this Agreement shall
be treated as a right to a series of separate payments.  In no event
may Yecies, directly or indirectly, designate the calendar year of a
payment.  All reimbursements and in-kind benefits provided under this
Agreement shall be made or provided in accordance with the requirements of
section 409A of the Code, including, where applicable, the requirement that (i)
any reimbursement shall be for expenses incurred during Yecies’ lifetime (or
during a shorter period of time specified in this Agreement), (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during a
calendar year may not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other calendar year, (iii) the reimbursement of
an eligible expense will be made on or before the last day of the calendar year
following the year in which the expense is incurred, and (iv) the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for
another benefit.

       

      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:  /s/
      Jeffrey F. Brotman                                                             

              
	 
      	      
      Jeffrey F. Brotman
	 
      	      
      Executive Vice President

      

       

       

      
        	 
      	
                       
      /s/ Michael S. Yecies

              
	 
      	       
      MICHAEL S. YECIES
	 
      	 
      

      

       

      
10

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