Document:

exh10_3.htm

     

    
      

      

    

    Exhibit 10.3

    

    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 STEVEN J. KESSLER (“Kessler”).

     

    BACKGROUND

     

    WHEREAS,
Kessler and RAI are parties to an Employment Agreement dated October 5, 1999
(“Existing Agreement”); and

     

    WHEREAS, RAI
and Kessler desire to amend the Existing Agreement to comply with section 409A
of
the Code (as defined below) and to make other appropriate changes to
comply with applicable law.

     

    TERMS

     

    NOW,
THEREFORE, in consideration of the mutual promises set forth herein, and
intending to be legally bound hereby, RAI and Kessler agree that the Existing
Agreement is amended and restated to read as follows:

     

    1.           Employment.  During
the term of this Agreement, Kessler shall be employed as the Executive Vice
President and Chief Financial Officer of RAI.

     

    2.           Duties.  Kessler
shall report to and accept direction from the Chairman of the Board (as defined
below) and from the Board.  Kessler shall serve RAI diligently and to
the best of his abilities, but Kessler shall be required to devote only
so much of his time and attention to the business of RAI as may be required to
fulfill his duties.  It is recognized that Kessler in the past has
participated, and it is agreed that Kessler in the future may participate in
business endeavors separate and apart from RAI.

     

    3.           Term.  Kessler’s
employment hereunder shall continue in full force and effect for a period of
three (3) years, unless sooner terminated in accordance with the provisions
hereof.  Such term shall automatically extend so that on any day that
this Agreement is in effect, it shall have a then current term of three (3)
years.  Such automatic extensions shall cease upon RAI’s written
notice to Kessler of its election to terminate this Agreement at the end of the
three (3) year period then in effect.

     

    4.           Compensation.

     

                  a)           Base
Compensation.  During the period of employment, RAI shall pay
to Kessler “Base Compensation” to
be established by the Board, which was initially as of the date of the Existing
Agreement in an amount equal to Three Hundred Thousand Dollars ($300,000) 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 Kessler.  It is
understood that RAI, through the compensation committee of the Board, will
review Kessler’s performance on an annual basis and increase or decrease (but in
no event below the Initial Level) such Base Compensation, based upon Kessler’s
performance.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    c)           Reimbursement of
Expenses.  RAI shall reimburse Kessler for all reasonable
expenses incurred by Kessler in the performance of his duties, including
(without limitation) expenses incurred during business-related
travel.

     

    5.
          Benefits.

     

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

     

    a)           Participation in
Benefit Plans.  Kessler will participate in all employee
benefit plans in effect during the term of Kessler’s employment
hereunder.

     

    b)           Temporary
Disability.  During any period that Kessler fails to perform
his duties hereunder as a result of incapacity due to physical or mental illness
Kessler shall continue to receive his full compensation at the rate then in
effect for such period until his employment is terminated pursuant to paragraph
6(b) hereof.

     

    6.           Termination.

     

    Kessler’s
employment hereunder shall terminate as follows:

     

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

     

    b)           Disability.  RAI
may terminate this Agreement if Kessler becomes disabled by reason of any
physical or mental disability whatsoever for more than two hundred forty (240)
days in the aggregate during any calendar year and the Board determines, that
Kessler, by reason of such physical or mental disability, is rendered unable to
perform his duties and services hereunder (a “Disability”);

     

    c)           Termination
by Kessler for Cause.  Kessler
may terminate his employment for “cause” upon thirty (30) days’ prior written
notice to RAI, which notice shall set forth the grounds for such
termination.  The notice must be provided within sixty (60) days after
the event giving rise to the termination for “cause” 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, Kessler’s termination of employment for “cause” 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 “cause” under this
Agreement.  For the
purposes of this paragraph 6(c), “cause” shall be
deemed to exist if any of the following shall occur: (i) without the written
consent of Kessler, a substantial change in the services or duties required of
Kessler hereunder or the imposition of any services or duties substantially
inconsistent with, or in diminution of Kessler’s current position, services
or  duties, or status with RAI; (ii) failure to continue Kessler’s
coverage under any RAI benefit plan as required under paragraph 5(a) except
pursuant to a change to a benefit plan that applies to senior executives of RAI
generally or is required by law or regulation; or (iii) any material breach by
RAI of any provision of this Agreement;

    
      
        
        

      

      
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    d)           Termination by
Kessler Without Cause.  Kessler may terminate this Agreement
without cause upon one hundred eighty (180) days prior written notice to
RAI.

     

    e)           Change of
Control.  Kessler may, in his discretion, terminate his
employment upon a Change of Control by sending a Notice of
Termination.

     

    f)           Termination
by RAI.  Subject
to the requirements of Section 7, RAI may terminate this Agreement for any
reason upon sixty (60) days prior written notice to
Kessler.

     

    7.           Effect
of Termination.

     

    a)           Death.  Upon
the termination of Kessler’s employment pursuant to paragraph 6(a) hereof due to
Kessler’s death, a death benefit shall be paid to Kessler’s estate equal to the
total amount payable to Kessler under this Agreement until expiration of the
term in effect as of Kessler’s Date of Termination, as provided under Section 3,
assuming that Kessler’s total compensation for each year would be equal to the
Average Compensation.  The amount to be paid under this Section shall
be paid as described in Section 7(d).

     

    b)           Disability.  Upon
the termination of Kessler’s employment pursuant to paragraph 6(b) hereof due to
Kessler’s Disability, Kessler shall be entitled to receive compensation equal to
the product of (i) the Average Compensation, multiplied by (ii) seventy-five
percent (75%).  The amount to be paid under this Section shall be paid
as described in Section 7(d) and shall not be reduced by any payments made
directly to Kessler by an insurance company.

     

                    c)           For Cause; Change of
Control.  Upon the termination of this Agreement either (i) by
Kessler for cause pursuant to paragraph 6(c) hereof, (ii) by Kessler pursuant to
paragraph 6(e) after a Change of Control or (iii) by RAI pursuant to section
6(f) hereof, then RAI shall provide to Kessler the benefits described (the
“Severance
Benefits”).  All Severance Benefits shall be paid as described
in Section 7(d).

     

    (1)           Severance
Payment.  In lieu of any further compensation payments to
Kessler for periods subsequent to the Date of Termination, RAI shall pay to
Kessler an amount equal to the sum of the total amount payable to Kessler under
this Agreement until expiration of the term in effect as of Kessler’s Date of
Termination, as provided under Section 3, assuming that Kessler’s total
compensation for each year would be equal to the Average
Compensation.

     

    (2)           Benefits.

     

    
      
        
        

      

      
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      (A)           During
the thirty-six (36)-month period following Kessler’s Date of Termination (the
“Separation Period”), Kessler may elect continued health coverage under RAI’s
health plan in which Kessler participated at the Date of Termination, as in
effect from time to time, provided that Kessler 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 Kessler 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
Kessler’s Date of Termination.  The cash payments under this
subsection (B) shall be increased by a tax gross up payment equal to Kessler’s
income and FICA tax imposed on the payment under this subsection
(B).

    

     

    (C)           RAI
shall pay Kessler 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 Kessler 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 Kessler’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 Kessler’s Date of
Termination. The cash payments under this subsection (C) shall be increased by a
tax gross up payment equal to Kessler’s income and FICA tax imposed on the
payment under this subsection (C).

     

                    (d)           Payment
Provisions.

     

    (1)           Except
as provided in subsection (2) below, all amounts paid upon Kessler’s termination
of employment as described in Sections 7(a), 7(b), and 7(c) shall be payable in
regular payroll installments over the applicable period described in such
Sections .  Such installments shall commence within thirty (30) days
after the date of Kessler’s Date of Termination, subject to Kessler’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 Kessler’s compliance with Section 12 below. Notwithstanding anything to the
contrary in this Agreement, if RAI is paying Severance Benefits to Kessler
pursuant to this Section 7(d), then COBRA Premiums paid pursuant to Section
7(c)(2)(B) shall be paid by RAI to Kessler only for the period during which
Kessler elects to participate in continued
health coverage under RAI’s health plan.  Notwithstanding anything in
this subsection (d) to the contrary, no Release shall be required with respect
to death benefits under Section 7(a)

     

    (2)           If
Kessler’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 Kessler’s
termination of employment as described in Sections 7(a), 7(b), and 7(c) shall be
payable in a single lump sump payment instead of installments.  The
lump sum payment shall be made within thirty (30) days after Kessler’s Date of
Termination, subject to Kessler’s delivery to RAI of an effective Release and
compliance with Section 12 below.  For purposes of determining the
amounts
to be paid pursuant to Section 7(c)(2)(B) and Section 7(c)(2)(C), the single
lump sum payment shall equal the total amount that would otherwise have been
paid to Kessler under Section 7(c)(2)(B) and Section 7(c)(2)(C) for the duration
of the Separation Period. as determined as of the Date of
Termination.

     

    
      
        
        

      

      
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    (3)           Notwithstanding
the foregoing, all payments that are subject to the section 409A six-month delay
shall be postponed as described in Section 12 below.

     

    (4)           Vesting of
Options.  Upon any termination of this Agreement, the vesting
of all options to purchase securities of RAI granted to Kessler during his
employment with RAI shall be accelerated to the later of the effective date of
termination of this Agreement, or six (6) months after the date such option was
granted, and any provision contained in the agreements under which such options
were granted that is inconsistent with such acceleration is hereby modified to
the extent necessary to provide for such acceleration; such acceleration shall
not apply to any option that by its terms would vest prior to the date provided
for in this paragraph 7(d).

     

    8.           Gross-Up
Payment.

     

    a)           In
the event that (i) Kessler becomes entitled to any benefits or payments in
connection with the termination of Kessler’s employment, whether pursuant to the
terms of this Agreement or otherwise, including without limitation the Severance
Benefits (collectively, the “Total
Benefits”), and (ii) any of the Total Benefits will be subject to the
Excise Tax, RAI shall pay to Kessler an additional amount (the “Gross-Up
Payment”) such that the net amount retained by Kessler, after deduction
of any Excise Tax on the Total Benefits and any federal, state and local income
taxes, Excise Tax, and FICA and Medicare withholding taxes upon the payment
provided for by this paragraph 8(a), shall be equal to the Total
Benefits.  For purposes of determining whether any of the Total
Benefits will be subject to the Excise Tax and the amount of such Excise Tax,
the amount of the Total Benefits that shall be treated as subject to the Excise
Tax shall be equal to the amount of the Total Benefits reduced by the amount of
such Total Benefits that, in the opinion of tax counsel selected by Kessler, at
RAI’s expense and reasonably acceptable to RAI (“Tax
Counsel”), are not excess parachute payments (within the meaning of
section 28OG(b)(1) of the Code).

     

    b)           For
purposes of this Section 8, Kessler shall be deemed to pay federal income taxes
at the highest marginal rate of federal income taxation in the calendar year in
which the Excise Tax is (or would be) payable and state and local income taxes
at the highest marginal rate of taxation in the state and locality of Kessler’s
residence on the Date of Termination, net of the reduction in federal income
taxes which could be obtained from deduction of such state and local taxes
(calculated by assuming that any reduction under section 68 of the Code in the
amount of itemized deductions allowable to Kessler applies first to reduce the
amount of such state and local income taxes that would otherwise be deductible
by Kessler).  Except as otherwise provided herein, all determinations
required to be made under this Section 8 shall be made by Tax
Counsel.

     

    c)           In
the event that the Excise Tax is subsequently determined to be less than the
amount taken into account hereunder at the time of termination of Kessler’s
employment,

     

    
      
        
        

      

      
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    Kessler
shall repay to RAI, at the time that the amount of such reduction in Excise Tax
is finally determined, the portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment attributable to the Excise
Tax, federal, state and local income taxes and FICA and Medicare withholding
taxes imposed on the Gross-Up Payment being repaid by Kessler to the extent that
such repayment results in a reduction in Excise Tax, FICA and Medicare
withholding taxes and/or a federal, state or local income tax deduction) plus
interest on the amount of such repayment at the rate provided in section
1274(b)(2)(B) of the Code.  In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder at the time of the
termination of Kessler’s employment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), RAI shall make an additional Gross-Up Payment to Kessler in respect of
such excess (plus any interest, penalties or additions payable by Kessler with
respect to such excess) at the time that the amount of such excess is finally
determined.

     

    (d)           Any
Gross-Up Payment shall be paid by RAI to Kessler within five (5) days of receipt
of the Tax Counsel’s determination, but in any event not later than the end of
the calendar year in which the related taxes are remitted to the taxing
authority.

     

    9.           Indemnification.

     

    a)           If
Kessler is made a party or is threatened to be made a party to or is involved in
any action, suit or proceeding, whether civil, criminal, administrative or
investigative (herein a “proceeding”), by reason of the fact that he is or was
an employee (which term includes officer, director, agent and any other
capacity) of RAI or is or was serving at the request of RAI as an employee or
agent of another corporation or of a partnership, joint venture, trust or other
enterprise, including service with respect to employee benefit plans, whether
the basis of such proceeding is alleged action in an official capacity as an
employee or agent or in any other capacity while serving as an employee or
agent, Kessler shall be indemnified and held harmless by RAI to the fullest
extent authorized by applicable law, against all expense, liability and loss
(including, but not limited to, attorneys’ fees, judgments, fines, ERISA excise
taxes and penalties and amounts paid or to be paid in settlement) incurred or
suffered by Kessler in connection therewith and such indemnification shall
continue as to Kessler after he has ceased to be a director, officer, employee
or agent and shall inure to the benefit of Kessler’s heir, executors, and
administrators; provided, however, that RAI shall indemnify any such person
seeking indemnification in connection with a proceeding (or part thereof)
initiated by Kessler (other than a proceeding to enforce this paragraph 9) only
if such proceeding (or part thereof) was authorized directly or indirectly by
the Board of RAI.  The right to indemnification conferred in this
paragraph shall be a contract right and shall include the right to be, promptly
upon request, paid by RAI the expenses incurred in defending any such proceeding
in advance of its final disposition; provided, however, that if the Business
Corporation Law of the Commonwealth of Pennsylvania requires the payment of such
expenses incurred by an employee in his capacity as an employee (and not in any
other capacity in which service was or is rendered by such person while a
director or officer, including, without limitation, service to an employee
benefit plan) in advance of the final disposition of a proceeding, payment shall
be made only upon delivery to RAI  of an undertaking, by or on behalf
of Kessler, to repay all amounts so advanced if it shall ultimately be
determined that such employee is not entitled to be indemnified under this
paragraph or otherwise.

    

    
      
        
        

      

      
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    b)           The
indemnification provided by this paragraph shall not be limited or exclude any
rights, indemnities or limitations of liability to which Kessler may be
entitled, whether as a matter of law, under the Certificate of Incorporation,
By-laws of RAI, by agreement, vote of the stockholders or disinterested
directors of RAI or otherwise.

     

    c)           Kessler,
in seeking indemnification under this Agreement (an “Indemnitee”),
shall give the other party or parties (the “Indemnitor”)
prompt written notice of any claim, suit or demand that the Indemnitee believes
will give rise to indemnification under this Agreement; provided, however, that
the failure to give such notice shall not affect the liability of the Indemnitor
under this Agreement unless the failure to give such notice materially and
adversely affects the ability of the Indemnitor to defend itself against or to
cure or mitigate the damages.  Except as hereinafter provided, the
Indemnitor shall have the right (without prejudice to the right of the
Indemnitee to participate at its expense through counsel of its own choosing) to
defend and to direct the defense against any such claim, suit or demand, at the
Indemnitor’s expense and with counsel chosen jointly by Indemnitor and
Indemnitee, and the right to settle or compromise any such claim, suit or
demand; provided, however, that the Indemnitor shall not, without the
Indemnitee’s written consent, which shall not be unreasonably withheld, settle
or compromise any claim or consent to any entry of judgment.  The
Indemnitee shall, at the Indemnitor’s expense, cooperate in the defense of any
such claim, suit or demand.  If the Indemnitor, within a reasonable
time after notice of a claim fails to defend the Indemnitee, the Indemnitee
shall be entitled to undertake the defense, compromise or settlement of such
claim at the expense of and for the account and risk of the
Indemnitor.

     

    d)           Kessler
will be covered during the entire term of this Agreement by Officer and Director
liability insurance in amounts and on terms similar to that afforded to other
executives and/or directors of RAI or its affiliates, which such insurance shall
be paid by RAI.

     

    10.           Definitions.  Any
terms not otherwise defined herein shall have the following
meaning:

     

    a)           “Average
Compensation” means the average of the three highest amounts of annual
total compensation received by Kessler during any of the then current calendar
year (on an annualized basis) and the then preceding eight (8) calendar
years.

     

    b)           “Board”
means the Board of Directors of RAI.

     

    c)           A
“Change of
Control” means the occurrence of any of the following
events:

     

    (A)           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;

     

    
      
        
        

      

      
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    (B)           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;

     

    (C)           During
any period of twenty-four consecutive months, 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) cease for any reason
to constitute at least a majority of the Board; or

     

    d)           “Code”
means the Internal Revenue Code of 1986, as amended from time to
time.

     

    e)           “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time.

     

    f)           “Excise
Tax” means any excise tax imposed under Section 4999 of the Code or a
similar provision that may later be enacted.

     

    g)           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.

     

    (h)           “Notice of
Termination” After a Change of Control, Kessler may terminate this
Agreement by sending a written notice to RAI that
shall (i) specify the date of termination (the “Date of
Termination”) which shall not be more than sixty (60) days from the date
such Notice of Termination is given, (ii) indicate the specific provisions of
this Agreement that will apply upon such termination and (iii) set forth in
reasonable detail the facts and circumstances for the application of the
provisions indicated.

     

    (i)           “Person”
shall have the meaning given in Section 3(a)(9) of the Exchange Act and shall
also include any syndicate or group deemed to be a “person” under Section
13(d)(3) of the Exchange Act.

     

    (j)           “RAI”
means Resource America, Inc., a Delaware corporation and any direct or indirect
subsidiary of RAI by which Kessler is employed.  References to
payments, benefits, privileges or other rights to be provided by RAI
or  such subsidiary by which Kessler is employed, as the case may be,
will correspond to the corporate entity obligated to make payments or provide
benefits, privileges or other rights pursuant to employee benefit plans affected
by the provisions hereof, and in the absence of any such existing plans or
provisions, such reference shall be deemed to be to RAI.  RAI shall
also mean any successor by merger or other business combination to more than
one-half of the assets or ownership of RAI.

    

    
      
        
        

      

      
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              11.           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 State of Delaware, 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

     

    If to
Kessler:

     

    Steven J.
Kessler

    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.

     

    
      
        
        

      

      
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            12.           Section
409A.

     

                    (a)           Payment
Delay.  Notwithstanding anything in this Agreement to the
contrary, if Kessler 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
Kessler 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
Kessler’s estate within sixty (60) days after the date of Kessler’s
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 Kessler’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 Kessler, 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 Kessler’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.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

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

     

     

     

    
      	 
      	
              RESOURCE
      AMERICA, INC.

            
	 
      	 
      
	 
      	
              By:             /s/
      Michael S.
      Yecies                                                  

            
	 
      	
              Michael S. Yecies

            
	 
      	
              SVP, CLO &
  Sec.

            

    

     

     

    
      	 
      	
                       
      /s/ Steven J. Kessler

            
	 
      	          STEVEN
      J. KESSLER
	 
      	 
      

    

     

     

    11exh10_4.htm

     

    
      

      

    

    EXHIBIT
10.4

     

     

     

    
      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 JEFFREY F.
BROTMAN (“Brotman”).

       

      BACKGROUND

       

      WHEREAS,
Brotman and the Company are parties to an Employment Agreement dated June 18,
2007 (“Existing Agreement”); and

       

      WHEREAS,
RAI and Brotman desire to amend the Existing Agreement to comply with section
409A of the Internal Revenue Code of 1986, as amended (the “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
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 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 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.  During
the period of employment, RAI shall pay to Brotman "Base Compensation" to be
established by the Board, which was initially as of the date of the Existing
Agreement in an amount equal to Three Hundred Fifty Thousand Dollars ($350,000)
per annum base compensation (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 independent of any other benefits which
Brotman may receive from RAI or otherwise:

       

      (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 follows:

       

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

       

      (b)           Termination
by RAI, for Cause.  RAI may terminate this Agreement 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 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.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

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

       

      (d)           Disability.  RAI
may terminate this Agreement if 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)           Termination
by Brotman for Good Reason.  Brotman 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 Brotman
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, Brotman’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. “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.

       

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

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      (g)           Termination
for Good Reason. 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 days 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)           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
Brotman’s employment is terminated by reason of Brotman’s death during the Term,
a death benefit shall be paid to Brotman’s designated beneficiaries (or, if
there is no such beneficiary, to Brotman’s estate or legal representative), in
an amount equal to 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 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. The amount to be paid under this Section
shall be paid as described in Section 7(f).

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      (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 compensation equal to
his Base Compensation and any incentive compensation (excluding stock option
grants) pursuant to Section 4(b) that Brotman would otherwise have earned
through the expiration of the Term, as provided under Section 3.  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.  The amount to be paid
under this Section shall be paid as described in Section 7(f); provided, however
that 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 for which he has received 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, then 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, and RAI shall provide to Brotman the benefits
described below (the “Severance
Benefits”).    All Severance Benefits shall be paid
as described in Section 7(f).

       

      (1)           Severance
Payment.  In lieu of any further compensation payments to
Brotman for periods subsequent to the Date of Termination, RAI shall pay to
Brotman an amount equal to one (1) year’s Base Compensation as of the Date of
Termination plus any incentive compensation (excluding stock option grants)
pursuant to Section 4(b) payable to Brotman as if he had remained employed by
RAI pursuant to this Agreement for a period of one (1) year.  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.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      (2)           Benefits.

       

      (A)           During
a period of one (1) year following Brotman’s Date of Termination (the “Separation
Period”), Brotman may elect continued health coverage under RAI’s health
plan in which Brotman participated at the Date of Termination, as in effect from
time to time, provided that Brotman 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 Brotman 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
Brotman’s Date of Termination.  The cash payments under this
subsection (B) shall be increased by a tax gross up payment equal to Brotman’s
income and FICA tax imposed on the payment under this subsection
(B).

       

      (C)           RAI
shall pay Brotman 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 Brotman 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 Brotman’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 Brotman’s Date of
Termination. The cash payments under this subsection (C) shall be increased by a
tax gross up payment equal to Brotman’s income and FICA tax imposed on the
payment under this subsection (C).

       

      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 therefore.

       

       

      (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 provide to Brotman the
Severance Benefits described below.  All Severance Benefits shall be
paid as described in Section 7(d).

       

      (1)           Severance
Payment. In lieu of any further compensation payments to Brotman for
periods subsequent to the Date of Termination, RAI shall pay to Brotman an
amount equal to thirty (30) month’s Base Compensation as of the Date of
Termination plus any incentive compensation (excluding stock option grants)
pursuant to Section 4(b) payable to Brotman as if he had remained employed by
RAI pursuant to this Agreement for a period of thirty (30)
months.  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.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      (2)           Benefits.

       

      (D)           During
a
period of thirty (30) months following Brotman’s Date of Termination (the
“Change of Control Separation Period”), Brotman may elect continued
health coverage under RAI’s health plan in which Brotman participated at the
Date of Termination, as in effect from time to time, provided that Brotman shall
be responsible for paying the full monthly cost of such coverage, which shall be
equal to the COBRA
Premium in effect from time to time.

       

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

       

      (F)           RAI
shall pay Brotman an amount equal to the cost that RAI would incur for life,
disability and accident insurance coverage (as calculated below) for the Change
of Control Separation Period as if Brotman 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 Brotman’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 Brotman’s Date of Termination. The cash payments under this
subsection (C) shall be increased by a tax gross up payment equal to Brotman’s
income and FICA tax imposed on the payment under this subsection
(C).

       

      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. 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.

       

      f.           Payment
Provisions.

       

      (1)           Except
as provided in subsection (2) below, all amounts paid upon Brotman’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 Brotman’s Date of Termination, subject to Brotman’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 Brotman’s compliance with Section 13 below. Notwithstanding anything to the
contrary in this Agreement, if RAI is paying Severance Benefits to Brotman
pursuant to Section this 7(f)(1), then COBRA Premiums paid pursuant to Section
7(e)(2)(B) shall be paid by RAI to Brotman only for the period during which
Brotman 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)

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      (2)           If
Brotman’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 Brotman’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 Brotman’s Date of Termination, subject to
Brotman’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)(2)(B) and Section 7(e)(2)(C), the single lump sum payment shall
equal the total amount that would otherwise have been paid to Brotman under
Section 7(e)(2)(B) and Section 7(e)(2)(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 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 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.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      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 RAT 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.

         

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      If
to RAI:

       

      Resource
America, Inc.

      1
Crescent Drive, Suite 203

      Navy
Yard

      
        	
                 
      

              	
                Philadelphia,
      PA  19112

              

      

      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.

       

      13.           Section
409A.

       

      (a)           Payment
Delay.  Notwithstanding anything in this Agreement to the
contrary, if Brotman 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
Brotman 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
Brotman’s estate within sixty (60) days after the date of Brotman’s
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 Brotman’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

      
        
          
            
            

          

          
            10

            
              

            

          

          
            
            
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 Brotman, 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
Brotman’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/
      Jeffrey F. Brotman

                
	 
      	           
      JEFFREY F. BROTMAN
	 
      	 
      

        

11

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