Document:

exh10_1.htm

 

Exhibit 10.1

 

THIRD AMENDMENT TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT AND JOINDER

 

 

This THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT AND JOINDER (“Amendment”), dated as of November 16, 2012, is among Resource America, Inc., a Delaware corporation (“Borrower”), TD BANK, N.A., a national banking association, in its capacity as agent (“Agent”), TD BANK, N.A., a national banking association, in its capacity as issuing bank (“Issuing Bank”) and each of the financial institutions which are now or hereafter identified as Lenders on Schedule A (as such Schedule may be amended, modified or replaced from time to time) attached to the Loan Agreement (as defined below) (each such financial institution, individually a “Lender” and collectively all “Lenders”).

 

BACKGROUND

 

A.      Pursuant to the terms of a certain Amended and Restated Loan and Security Agreement dated as of March 10, 2011 among Borrower, Agent and Lenders (as the same has been or may be supplemented, restated, superseded, amended or replaced from time to time, the “Loan Agreement”), Lenders initially made available to Borrower, inter alia, a revolving line of credit and term loan (the “Loans”).  All capitalized terms used herein without further definition shall have the respective meaning set forth in the Loan Agreement and all other Loan Documents.

 

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

 

C.      Pursuant to the Loan Agreement, certain affiliates of Borrower (each a “Subsidiary Guarantor” and collectively the “Subsidiary Guarantors”) delivered to Agent various security and collateral documents, including, without limitation: (i) the Surety and Guaranty Agreement made by Subsidiary Guarantors in favor of Agent, (ii) the Guarantor Security Agreement made by Subsidiary Guarantors in favor of Agent, and (iii) the Subsidiary Collateral Pledge Agreement made by certain Subsidiaries in favor of Agent relating to the assets described therein, each as amended, restated, extended, supplemented or otherwise modified in writing from time to time.

 

D.      The Loan Agreement provides that no Subsidiary Guarantor shall create or acquire any Subsidiary unless (a)(i) such Subsidiary becomes party to the Surety and Guaranty Agreement and Guarantor Security Agreement, or (ii) Borrower otherwise provides an opinion of counsel that such Subsidiary is prohibited from becoming a Subsidiary Guarantor pursuant to its organizational documents or any loan documents to which it is a party, and (b) the Capital Stock of such Subsidiary is pledged to Lender.

 

E.      Resource Real Estate, Inc. has created a new Subsidiary, Resource Real Estate Funding II, Inc., a Delaware corporation (“Joining Guarantor”). Joining Guarantor is an indirect Subsidiary of Borrower and, in recognition of the benefits and privileges under the Loan Documents, Joining Guarantor and Borrower have requested that Joining Guarantor be permitted to join into the Loan Documents, as if an original signatory thereto, and Agent and Lender have so consented subject to the terms and conditions hereof.

 

F.      Borrower has requested that Agent and Lenders consent to the payment in full of the Existing Subordinated Debt on its scheduled maturity date and modify, in certain respects, the terms of the Loan Agreement, and Agent and Lenders have agreed to provide such consent and modifications in accordance with and subject to the satisfaction of the conditions hereof.

 

  

  

  

 

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

 

1.           Joinder.

 

a.           Joining Guarantor hereby becomes a Subsidiary Guarantor under the Loan Agreement and the Loan Documents.  All references to Subsidiary Guarantors contained in the Loan Agreement and Loan Documents are hereby deemed for all purposes to also refer to and include Joining Guarantor as a Subsidiary Guarantor and Joining Guarantor hereby agrees to comply with all of the terms and conditions of the Loan Documents (to which the other Subsidiary Guarantors are a party) as if an original signatory thereto.

 

b.           Joining Guarantor hereby joins in, assumes, adopts and becomes an Undersigned (as defined therein) under the Surety and Guaranty Agreement. All references to Undersigned contained in the Guaranty are hereby deemed for all purposes to also refer to and include Joining Guarantor as an Undersigned and Joining Guarantor hereby agrees to comply with all of the terms and conditions of the Surety and Guaranty Agreement as if an original signatory thereto.  Joining Guarantor is jointly and severally liable for, and hereby guarantees and becomes surety for, the unconditional and prompt payment and performance to Secured Parties of all Obligations.

 

c.           Joining Guarantor hereby joins in, assumes, adopts and becomes a Debtor (as defined therein) under the Guarantor Security Agreement and hereby grants Agent, for the ratable benefit of Secured Parties, a security interest in all of Joining Guarantor’s Collateral (as defined in the Guarantor Security Agreement).  All references to Debtors contained in the Guarantor Security Agreement are hereby deemed for all purposes to also refer to and include Joining Guarantor as a Debtor and Joining Guarantor hereby agrees to comply with all of the terms and conditions of the Guarantor Security Agreement as if an original signatory thereto.

 

2.           Amendment to Loan Documents.  Upon the effectiveness of this Amendment, the Loan Documents shall be amended as follows:

 

a.           Section 1 of the Loan Agreement shall be amended by deleting the definitions of “Applicable Base Rate”, “Applicable LIBOR Rate” and “Maturity Date” and replacing each as follows:

 

“Applicable Base Rate” – The Base Rate plus two hundred twenty five (225) basis points.

 

“Applicable LIBOR Rate” – The Adjusted LIBOR Rate plus three hundred (300) basis points.

 

  

2

  

 

 “Maturity Date” – The earlier of (a) the date on which the RCM Management Agreement is terminated or expires in accordance with its terms and (b) December 31, 2014.

 

b.           Schedule I to the Sponsored CDO Pledge Agreement is hereby deleted in its entirety and replaced with Schedule I attached to this Amendment as Exhibit A.

 

3.           Consent.  Subject to the effectiveness of this Amendment, Agent and Lenders hereby consent to the payment on October 15, 2013 of all amounts then due on the Existing Subordinated Debt in accordance with its terms (the “Subordinated Debt Maturity Payment”), provided that no Significant Default then exists.  Agent’s and Lenders’ consent to the Subordinated Debt Maturity Payment shall not otherwise affect the right of Agent and Lenders to demand compliance by Borrower and Subsidiary Guarantors with all of the terms, conditions and provisions of the Loan Agreement and Loan Documents or be deemed a waiver of any other transaction or future action on the part of Borrower and Subsidiary Guarantors requiring Agent or Required Lenders’ consent or approval under the Loan Agreement.

 

4.           Representations and Warranties.  Borrower represents and warrants to Agent, Issuing Bank and Lenders that:

 

a.           Prior Representations.  Schedule C, Schedule 5.1, Schedule 5.2, Schedule 5.7, Schedule 5.9, Schedule 5.10(a), Schedule 5.11(c)(ii), Schedule 5.14(a), Schedule 5.14(b), Schedule 5.17, Schedule 5.22 and Schedule 7.4(a), are amended and restated in their entirety and collectively attached as Schedule A to this Amendment.  After giving effect to the amended and restated Schedules attached hereto as Schedule A to this Amendment, the representations and warranties made to Agent, Issuing Bank and Lenders in the Loan Agreement are true and correct in all material respects.

 

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

 

c.           Valid, Binding and Enforceable. This Amendment and any assignment or other instrument, document or agreement executed and delivered in connection herewith, will be valid, binding and enforceable in accordance with their respective terms except as such enforceability may be limited by any federal or state law affecting debtor and creditor rights or relating to the bankruptcy, insolvency, reorganization, arrangement, moratorium, readjustment of debt, dissolution, liquidation or similar laws, proceedings, or equitable principles affecting the enforcement of creditors’ rights, as amended from time to time

 

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

 

  

3

  

 

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

 

6.           Confirmation of Indebtedness. Borrower confirms and acknowledges that as of the close of business on November 15, 2012, (a) it is indebted to Agent and Lenders under the Loan Documents in the aggregate principal amount of $0.00 and (b) Issuing Bank has issued Letters of Credit in the aggregate face amount of $503,057.00, in each case without any deduction, defense, setoff, claim or counterclaim of any nature as of the date of this Amendment, plus all fees, costs and Expenses incurred to date in connection with the Loan Documents.

 

7.           Confirmation of Subsidiary Guarantors.  By its signature below, each Subsidiary Guarantor hereby consents to and acknowledges the terms and conditions of this Amendment and agrees that its obligations under the Surety and Guaranty Agreement are ratified and confirmed and shall continue in full force and effect and shall continue to cover all Obligations of Borrower outstanding from time to time under the Loan Agreement as amended hereby. As security for the payment of the Obligations, and satisfaction by each Subsidiary Guarantor of all covenants and undertakings contained in the Loan Documents, each Subsidiary Guarantor hereby confirms its prior grant to Agent, for the ratable benefit of Secured Parties, of a continuing first lien on and security interest in, upon and to all of such Subsidiary Guarantor’s now owned or hereafter acquired, created or arising Collateral.

 

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

 

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

 

b.           Payment to Agent for the ratable benefit of Lenders of a fully earned, non-refundable amendment fee in the amount of $50,000.00;

 

c.           Delivery to Agent of (A) certified copies of resolutions of the board of directors of Joining Guarantor authorizing the execution, delivery and performance of this Amendment and the transactions contemplated hereby, and (B) Joining Guarantor’s certificate of incorporation and by-laws, as applicable;

 

d.           Delivery to Agent of an incumbency certificate for Joining Guarantor identifying all individuals authorized to execute this Amendment, with specimen signatures;

 

  

4

  

 

e.           Delivery to Agent of a good standing certificate for Joining Guarantor showing Joining Guarantor to be in good standing in its state of organization and in each other state in which it is doing business;

 

f.           Filing of a UCC Financing Statement against Joining Guarantor;

 

g.           Delivery to Agent of an opinion of counsel that each of RA Equityco, LLC, RFIG Partners, LLC, and RFIG Partners II, LLC is prohibited from becoming a Subsidiary Guarantor; and

 

h.           Payment by Borrower of all of Agent’s Expenses.

 

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

 

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

 

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

 

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

 

 

  

5

  

 

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

 

[Balance of Page Intentionally Blank]

 

  

6

  

 

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

 

 

 

BORROWER:

 

Resource America, Inc.

 

By:           /s/ Thomas C. Elliott                        

Name:           Thomas C. Elliott

Title:              Senior Vice President and Chief Financial

                     Officer

 

 

JOINING GUARANTORS:

 

Resource Real Estate Funing II, Inc.

 

 

By:           /s/ Thomas C. Elliott                        

Name:           Thomas C. Elliott

Title:              Senior Vice President and Chief Financial

                     Officer

 

 

AGENT:

 

TD BANK, N.A.

 

By:           /s/ Eric C. Tweer                            

Name:           Eric C. Tweer

Title:              Vice President

 

LENDER:

 

TD BANK, N.A., as Lender

 

By:           /s/ Eric C. Tweer                            

Name:           Eric C. Tweer

Title:              Vice President

 

  

S-1

  

 

 

AGREED TO AND ACCEPTED:

 

SURETIES:

 

Ischus Capital Management, LLC

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Chief Financial Officer

 

RAI Ventures, Inc.

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Senior Vice President

 

RCP Financial, LLC

 

By:  Resource Programs, Inc., its sole member

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Senior Vice President and Treasurer

 

Resource Capital Manager, Inc.

By:           /s/ Thomas C. Elliott                        

               Name:  Thomas C. Elliott

               Title:     Senior Vice President

 

Resource Capital Investor, Inc.

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Chief Financial Officer

 

 

  

S-2

  

 

 

Resource Capital Partners, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     Senior Vice President

 

Resource Financial Institutions Group,  Inc.

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Vice President and Chief 

                       Financial Officer

 

Resource Financial Fund Management, Inc.

 

By:           /s/ Thomas C. Elliott                        

          Name:  Thomas C. Elliott

          Title:     Senior Vice President

 

Resource Housing Investors I, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

 

Resource Housing Investors II, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

  

S-3

  

Resource Housing Investors III, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

Resource Housing Investors IV, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

Resource Leasing, Inc.

 

By:           /s/ Thomas C. Elliott                        

                Name:  Thomas C. Elliott

                Title:    Treasurer

 

Resource Programs, Inc.

 

By:          /s/ Thomas C. Elliott                        

               Name:  Thomas C. Elliott

               Title:     Senior Vice President and Treasurer

 

Resource Properties XVII, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

Resource Properties XXV, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

 

  

S-4

  

 

Resource Properties XXVI, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

Resource Properties XXX, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

Resource Properties XXXI, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

Resource Properties XLVII, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:    President

 

Resource Real Estate, Inc.

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     Chief Executive Officer

 

Resource Real Estate Funding, Inc.

 

By:           /s/ Thomas C. Elliott                        

                Name:  Thomas C. Elliott

                Title:     Senior Vice President 

 

 

  

S-5

  

 

Resource Real Estate Holdings, Inc.

 

By:           /s/ Thomas C. Elliott                        

                Name:  Thomas C. Elliott

                Title:     Vice President and Treasurer

 

Resource Real Estate Management, LLC

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     President

 

RRE1 Duraleigh Member, LLC

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     Senior Vice President

RRE2 Duraleigh Member, LLC

 

By:           /s/ Alan F. Feldman                          

                Name:  Alan F. Feldman

                Title:     Senior Vice President

 

RRE Avalon Member, LLC

 

By:          /s/ Alan F. Feldman                          

               Name:  Alan F. Feldman

               Title:     Senior Vice President

 

  

S-6

  

Resource Capital Partners II, LLC

 

By:           Resource Real Estate, Inc., its sole member

 

          By:          /s/ Alan F. Feldman                          

                                Name:  Alan F. Feldman

                                Title:    Chief Executive Officer

 

RRE Leaseco, LLC

 

By:          /s/ Alan F. Feldman                          

               Name:  Alan F. Feldman

               Title:    Senior Vice President

 

Resource Capital Markets, Inc.

 

By:          /s/ Thomas C. Elliott                        

                Name:  Thomas C. Elliott

                Title:    Chief Financial Officer

 

RRE D2R2 2007-1, LLC

 

By: Resource Real Estate, Inc., its sole member

 

          By:          /s/ Alan F. Feldman                          

                                Name:  Alan F. Feldman

                                Title:    Chief Executive Officer

 

RRE Investor, LLC

By: Resource Capital Partners II, LLC, its sole

 member

 

By: Resource Real Estate, Inc., its sole

 member

 

          By:          /s/ Alan F. Feldman                          

                                Name:  Alan F. Feldman

                                Title:    Chief Executive Officer

 

 

  

S-7

  

 

Resource Real Estate Management, Inc.

 

By:          /s/ Steven R. Saltzman                        

                Name:  Steven R. Saltzman

                Title:    Chief Financial Officer

 

Resource Real Estate Opportunity

Advisor, LLC

 

By:          /s/ Alan F. Feldman                          

               Name:  Alan F. Feldman

               Title:    Chief Executive Officer

 

Walnut Street Investments, LLC

 

By:          /s/ Alan F. Feldman                          

               Name:  Alan F. Feldman

               Title:    President

 

Resource Real Estate Opportunity

Manager, LLC

 

By:          /s/ Steven R. Saltzman                        

                Name:  Steven R. Saltzman

                Title:     Chief Financial Officer and

                            Senior Vice President

 

Resource Income Advisors, Inc.

 

By:          /s/ Thomas C. Elliott                        

                Name:  Thomas C. Elliott

                Title:     Senior Vice President and Chief Financial

                            Officer

 

Torsion Capital, LLC

 

By:           /s/ Thomas C. Elliott                        

Name:           Thomas C. Elliott

Title:              Chief Financial Officer

 

 

  

S-8

  

 

Torsion Advisors, LLC

 

By:           /s/ Thomas C. Elliott                        

Name:           Thomas C. Elliott

Title:              Chief Financial Officer

 

Parkwin Services, LLC

 

By:           /s/ Steven R. Saltzman                       

Name:           Steven R. Saltzman

Title:             Vice President and Treasurer

 

 

  

S-9

  

 

SCHEDULE A

 

 

Selected Updated Schedules to Loan Agreement

 

  

  

  

SCHEDULE C

 

LIST OF SUBSIDIARIES NOT GUARANTYING

 

	
1.

	
Resource Securities, Inc. (f/k/a Chadwick Securities, Inc.)

	
2.

	
Resource Europe Management Limited

	
3.

	
Resource RSI Phase I, LLC

	
4.

	
Resource RSI Phase II, LLC

	
5.

	
RCP Nittany Pointe Manager, Inc.

	
6.

	
RCP Fountains GP, Inc.

	
7.

	
RCP Avalon Manager, Inc.

	
8.

	
RCP Falls at Duraleigh Manager, Inc.

	
9.

	
RCP Sage Canyon Manager, Inc.

	
10.

	
RCP Cuestas Manager, Inc.

	
11.

	
RCP Holdco I Manager, Inc.

	
12.

	
RCP Reserves Manager, Inc.

	
13.

	
RCP Foxglove Manager, Inc.

	
14.

	
RCP Santa Fe Manager, Inc.

	
15.

	
RCP Regents Center Manager, Inc.

	
16.

	
RCP Highland Lodge Manager, Inc.

	
17.

	
RCP Grove Manager, LLC

	
18.

	
RCP Howell Bridge Manager, Inc.

	
19.

	
RCP Heritage Lake Manager, LLC

	
20.

	
RCP Westchase Wyndham Manager, LLC

	
21.

	
RCP Pear Tree Manager, LLC

	
22.

	
RCP Wind Tree Manager, LLC

	
23.

	
RCP Chenal Brightwaters Manager, LLC

	
24.

	
Resource Asset Management, LLC

	
25.

	
LEAF Asset Management, LLC

	
26.

	
FLI Holdings, Inc.

	
27.

	
LEAF Financial Corporation

	
28.

	
LEAF Funding, Inc.

	
29.

	
LEAF Ventures, LLC

	
30.

	
Merit Capital Manager, LLC

	
31.

	
Merit Capital Advance, LLC

	
32.

	
Resource Commercial Mortgages, Inc.

	
33.

	
RCP Magnolia Manager, LLC

	
34.

	
RCP West Wind Manager, LLC

	
35.

	
RCP Ryan’s Crossing Manager, LLC

	
36.

	
RCP Memorial Towers Manager, LLC

	
37.

	
RCP Villas Manager, LLC

	
38.

	
RCP Coach Lantern Manager, LLC

	
39.

	
RCP Foxcroft Manager, LLC

	
40.

	
RCP Tamarlane Manager, LLC

	
41.

	
RCP Park Hill Manager, LLC

	
42.

	
RCP Bent Oaks Manager, LLC

	
43.

	
RCP Cape Cod Manager, LLC

 

 

 

 

 

 

	
44.

	
RCP Woodland Hills Manager, LLC

	
45.

	
RCP Woodhollow Manager, LLC

	
46.

	
RCP Woodland Village Manager, LLC

	
47.

	
Merit Processing, LLC

	
48.

	
LEAF Ventures II, LLC

	
49.

	
Prompt Payment, LLC

	
50.

	
RRE Oak Park Leaseco, LLC

	
51.

	
RCP Wyndridge Manager, LLC

	
52.

	
RCP Waterstone Manager, LLC

	
53.

	
Highland Lodge Holdings, LLC

	
54.

	
RRE Highland Lodge Manager, Inc.

	
55.

	
RSI I Manager, Inc.

	
56.

	
RSI II Manager, Inc.

	
57.

	
RA Equityco, LLC

	
58.

	
RFIG Partners, LLC

	
59.

	
RFIG Partners II, LLC

 

  

  

  

 

SCHEDULE 5.1

 

STATES OF QUALIFICATIONS

 

 

	
Entity Name

	 	
State(s) of Qualification

	  	  	 	  
	
1.

	
Resource America, Inc.

	 	
DE, PA

	
2.

	
Ischus Capital Management, LLC

	 	
DE, NY

	
3.

	
RAI Ventures, Inc.

	 	
DE

	
4.

	
RCP Financial, LLC

	 	
PA

	
5.

	
Resource Capital Manager, Inc.

	 	
DE, NY

	
6.

	
Resource Capital Investor, Inc.

	 	
DE

	
7.

	
Resource Capital Partners, Inc.

	 	
DE, PA, CO

	
8.

	
Resource Financial Institutions Group, Inc.

	 	
DE

	
9.

	
Resource Financial Fund Management, Inc.

	 	
DE

	
10.

	
Resource Housing Investors I, Inc.

	 	
DE

	
11.

	
Resource Housing Investors II, Inc.

	 	
DE

	
12.

	
Resource Housing Investors III, Inc.

	 	
DE

	
13.

	
Resource Housing Investors IV, Inc.

	 	
DE

	
14.

	
Resource Leasing, Inc.

	 	
DE

	
15.

	
Resource Programs, Inc.

	 	
DE, PA, NY

	
16.

	
Resource Properties XVII, Inc.

	 	
DE

	
17.

	
Resource Properties XXV, Inc.

	 	
DE

	
18.

	
Resource Properties XXVI, Inc.

	 	
DE

	
19.

	
Resource Properties XXX, Inc.

	 	
DE, PA

	
20.

	
Resource Properties XXXI, Inc.

	 	
DE

	
21.

	
Resource Properties XLVII, Inc.

	 	
DE

	
22.

	
Resource Real Estate, Inc.

	 	
DE

	
23.

	
Resource Real Estate Funding, Inc.

	 	
DE, PA, CA

	
24.

	
Resource Real Estate Holdings, Inc.

	 	
DE

	
25.

	
Resource Real Estate Management, LLC

	 	
DE

	
26.

	
RRE1 Duraleigh Member, LLC

	 	
DE

	
27.

	
RRE2 Duraleigh Member, LLC

	 	
DE

	
28.

	
RRE Avalon Member, LLC

	 	
DE

	
29.

	
Resource Capital Partners II, LLC

	 	
DE

	
30.

	
RRE Leaseco, LLC

	 	
DE

	
31.

	
Resource Capital Markets, Inc.

	 	
DE

	
32.

	
RRE D2R2 2007-1, LLC

	 	
DE

	
33.

	
RRE Investor, LLC

	 	
DE

	
34.

	
Resource Real Estate Management, Inc.

	 	
DE, CA, OH, PA, CT,

	  	  	 	
AL, FL, SC

	
35.

	
Resource Real Estate Opportunity Advisor, LLC

	 	
DE

	
36.

	
Walnut Street Investments, LLC

	 	
DE

	
37.

	
Resource Real Estate Opportunity Manager, LLC

	 	
DE

	
38.

	
Parkwin Services, LLC

	 	
DE, D.C., MD

	
39.

	
Resource Income Advisors, Inc.

	 	
DE

 

 

 

 

 

	
40.

	
Torsion Capital, LLC

	 	
DE

	
41.

	
Torsion Advisors, LLC

	 	
DE

	
42.

	
Resource Real Estate Funding II, Inc.

	 	
DE, PA

 

 

 

 

 

SCHEDULE 5.2

 

PLEACES OF BUSINESS

 

1845 Walnut Street, 9 and 10th Floor

Philadelphia, PA 19103

 

2005 Market Street, 15th Floor

Philadelphia, PA 19103

 

712 Fifth Avenue, 12th Floor

New York, NY  10019

 

One Crescent Drive, Suite 203

Navy Yard Corporate Center

Philadelphia, PA 19112

 

2121 Rosecrans Avenue, Suite 3310

El Segundo, CA 90245

 

Resource Europe Management LTD

6 Brook St

London, England W1S 1BB

 

3033 East First Avenue, Suite 805

Denver, CO  80206

 

Resource Real Estate Management

14301 First National Bank Parkway

Suite 310

Omaha, NE  68154

 

Resource Securities, Inc. (Singapore Branch)

Ocean Financial Tower

10 Collyer Quay, Level 40

Singapore  049315

 

 

 

 

 

 

SCHEDULE 5.7

 

FEDERAL TAX ID AND STATE ID NO.

 

	
Entity Name

	 	
EIN

	 	
State Id No.

	 
	
Resource America, Inc.

	 	
72-0654145

	 	
  636908

	 
	
Ischus Capital Management, LLC

	 	
42-1629547

	 	
3795325

	 
	
RAI Ventures, Inc.

	 	
23-3052654

	 	
3270521

	 
	
RCP Financial, LLC

	 	
04-3837567

	 	
  568031

	 
	
Resource Capital Manager, Inc.

	 	
20-2287162

	 	
3919391

	 
	
Resource Capital Investor, Inc.

	 	
20-2393947

	 	
3931224

	 
	
Resource Capital Partners, Inc.

	 	
13-4214163

	 	
3562036

	 
	
Resource Financial Institutions Group, Inc.

	 	
20-2593874

	 	
3929004

	 
	
Resource Financial Fund Management, Inc.

	 	
04-3686974

	 	
3530885

	 
	
Resource Housing Investors I, Inc.

	 	
23-2916186

	 	
2713100

	 
	
Resource Housing Investors II, Inc.

	 	
23-2916188

	 	
2713232

	 
	
Resource Housing Investors III, Inc.

	 	
23-2916190

	 	
2713037

	 
	
Resource Housing Investors IV, Inc.

	 	
23-2916191

	 	
2713230

	 
	
Resource Leasing, Inc.

	 	
51-0367697

	 	
2518557

	 
	
Resource Programs, Inc.

	 	
23-2544941

	 	
2171187

	 
	
Resource Properties XVII, Inc.

	 	
23-2836316

	 	
2489294

	 
	
Resource Properties XXV, Inc.

	 	
51-0374877

	 	
2629014

	 
	
Resource Properties XXVI, Inc.

	 	
52-2005749

	 	
2678319

	 
	
Resource Properties XXX, Inc.

	 	
51-0374880

	 	
2629018

	 
	
Resource Properties XXXI, Inc.

	 	
51-0365095

	 	
2464161

	 
	
Resource Properties XLVII, Inc.

	 	
23-2972692

	 	
2864483

	 
	
Resource Real Estate, Inc.

	 	
20-1093394

	 	
3799469

	 
	
Resource Real Estate Funding, Inc.

	 	
20-4326931

	 	
4109391

	 
	
Resource Real Estate Holdings, Inc.

	 	
65-1173932

	 	
3624814

	 
	
Resource Real Estate Management, LLC

	 	
22-3914452

	 	
3976137

	 
	
RRE1 Duraleigh Member, LLC

	 	
52-2448330

	 	
3900088

	 
	
RRE2 Duraleigh Member, LLC

	 	
52-2448325

	 	
3900089

	 
	
RRE Avalon Member, LLC

	 	
20-2081491

	 	
3906054

	 
	
Resource Capital Partners II, LLC

	 	
26-3419877

	 	
4604475

	 
	
RRE Leaseco, LLC

	 	
64-0960020

	 	
4346241

	 
	
Resource Capital Markets, Inc.

	 	
26-2740281

	 	
4550415

	 
	
RRE D2R2 2007-1, LLC

	 	
45-0573586

	 	
4428599

	 
	
RRE Investor, LLC

	 	
13-4214163

	 	
4685839

	 
	
Resource Real Estate Management, Inc.

	 	
22-3914452

	 	
4404764

	 
	
Resource Real Estate Opportunity Advisor, LLC

	 	
27-0332311

	 	
4696255

	 
	
Walnut Street Investments, LLC

	 	
30-3665750

	 	
4942797

	 
	
Resource Real Estate Opportunity Manager, LLC

	 	
27-0332473

	 	
4696257

	 
	
Parkwin Services, LLC

	 	
45-0707333

	 	
4956185

	 
	
Resource Income Advisors, Inc.

	 	
45-1167549

	 	
4956941

	 
	
Torsion Capital, LLC

	 	
45-3727472

	 	
5037586

	 
	
Torsion Advisors, LLC

	 	
45-3727806

	 	
5056141

	 
	
Resource Real Estate Funding II, Inc.

	 	
36-4736439

	 	
5176588

	 

 

  

  

  

 

SCHEDULE 5.10(a)

 

EXISTING GUARANTIES, INVESTMENTS AND BORROWINGS

 

GUARANTEES: 

 

Limited Loan Guarantee dated as of July ___, 2012

 

 

Guarantor                             Borrower                                                                         Lender

Borrower                              Lease Equity Appreciation Fund I, L.P.                                                     Portigon Financial Services

                                      Lease Equity Appreciation Fund II, L.P.

 

INVESTMENTS:                                                                                                           Balance at 6/30/12

Investments in real estate, net                                                                                          $    19,356,205.54

Investment Securities, at fair value:                                                                                  $    19,880,490.71

Investment in Unconsolidated Entities:                                                                              $    12,740,007.33

Investment in Unconsolidated Loan Manager                                                                    $    35,980,029.29

 

 

INTERCOMPANY BORROWINGS:

 

	
Lender

	 	
Borrower

	 	
Balance at 6/30/12

	 
	
Resource Programs

	 	
RAI Corporate

	 	$	24,286,173.44	 
	
RAI Corporate

	 	
Real Estate

	 	 	17,347,647.05	 
	
Resource Capital Partners, Inc.

	 	
RAI Corporate

	 	 	43,862,652.95	 
	
Resource Real Estate Funding

	 	
RAI Corporate

	 	 	233,169.95	 
	
Resource Real Estate Management, Inc.

	 	
RAI Corporate

	 	 	1,000.00	 
	
Resource Leasing

	 	
RAI Corporate

	 	 	35,732,287.36	 
	
RAI Corporate

	 	
LEAF Financial Corp

	 	 	47,783,115.10	 
	
RAI Corporate

	 	
Flih

	 	 	17,946,115.76	 
	
RAI Corporate

	 	
Resource Financial Fund Management

	 	 	24,706,624.80	 
	
RAI Corporate

	 	
Ischus

	 	 	28,013,390.05	 
	
RAI Corporate

	 	
RFIG

	 	 	5,581,655.57	 
	
RAI Corporate

	 	
Resource Capital Manager, Inc.

	 	 	2,023,319.46	 
	
Resource Capital Investor

	 	
RAI Corporate

	 	 	4,235,139.97	 
	
RAI Corporate

	 	
Trapeza

	 	 	94,399.79	 
	
RAI Corporate

	 	
Resource Asset Management, Inc. (RAMI)

	 	 	733,546.25	 
	
RAI Corporate

	 	
RAI Ventures

	 	 	6,395,780.24	 
	
RAI Corporate

	 	
Resource Securities, Inc.

	 	 	1,572,042.83	 
	
RAI Corporate

	 	
Resource Europe

	 	 	284,600.79	 
	
RAI Corporate

	 	
Resource Capital Markets, Inc.

	 	 	2,707,556.43	 
	
Resource Real Estate

	 	
Resource Programs

	 	 	41,416,593.38	 
	
Resource Real Estate Funding

	 	
Resource Capital Manager

	 	 	6,940,036.03	 
	
LEAF Financial

	 	
Resource Financial Fund Mgt.

	 	 	77,769.69	 
	
Resource Capital Markets

	 	
Resource Securities, Inc.

	 	 	50,461.19	 
	
Resource Capital Partners, Inc.

	 	
Resource Securities, Inc.

	 	 	233,279.02	 
	
Resource Securities, Inc.

	 	
Resource Real Estate Opportunity Advisor

	 	 	101,530.92	 
	
Resource Europe

	 	
Resource Securities, Inc.

	 	 	65,934.99	 
	
Resource Europe

	 	
Resource Capital Markets, Inc.

	 	 	151,455.12	 

  

  

  

 

 

	
RRE Opportunity Advisor, LLC

	 	
Resource Securities, Inc.

	 	 	156,811.36	 
	
RRE Opportunity Advisor, LLC

	 	
RAI Corporate

	 	 	2,884.92	 
	
Resource Capital Markets

	 	
Resource Financial Fund Management

	 	 	2,253,684.18	 
	
Resource Capital Markets

	 	
Resource Capital Manager, Inc.

	 	 	109,394.75	 

 

 

	  	 	  	 	 	
BALANCE AT

	 
	
LENDER

	 	
BORROWER

	 	 	
6/30/12

	 
	  	 	  	 	 	 	 
	
Senior Notes

	 	
Resource America, Inc.

	 	 	$	10,000,000	 
	
Resource Capital Corp.

	 	
Resource Capital Partners, Inc.

	 	 	 	1,677,432	 
	
Cantor Commercial Real Estate Lending, L.P.

	 	
Resource RSI Phase I & II, LLC

	 	 	 	10,573,532	 
	
CIT

	 	
Resource America, Inc.

	 	 	 	365,929	 
	  	 	  	 	 	 	22,616,893	 
	
TD Bank, N.A.

	 	
Resource America, Inc. line of credit

	 	 	 	0	 
	
Total borrowings per balance sheet at 6/30/12:

	 	  	 	 	$	22,616,893	 

 

 

  

  

  

 

 

SCHEDULE 5.11(c)(ii)

 

 

The Resource America, Inc. Employee Stock Ownership Plan (“ESOP”)

The Company had sponsored an Employee Stock Ownership Plan (“ESOP”) which was a qualified non-contributory retirement plan.  The Company has terminated the ESOP and, in connection with this termination, distributed the remaining plan assets to participants and liquidated the ESOP trust in the fourth quarter of fiscal 2012.

 

The Resource America, Inc. Investment Savings Plan (“401k”)

The Company sponsors a qualified 401(k) Plan to enable employees to save for their retirement on a tax deferred basis.  On January 1, 2012, the Plan was amended to become a Safe Harbor Plan and the match was changed to equal (1) 100% of participant contributions up to the first 3% of participant compensation, plus (2) 50% of participant contributions on the next 2% of participant compensation.  In addition, matching contributions made after January 1, 2012 are 100% vested.  As of September 30, 2012, the Plan is in compliance with all regulatory requirements.

 

 

 

 

 

SCHEDULE 5.14(a)

OTHER ASSOCIATIONS

Resource Financial Fund Management holds a Limited Partnership interest in each of the partnerships below:

	  	 	
Percentage of Limited

	
Entity

	 	
Partnership Interests Owned

	
Trapeza Partners I L.P.

	 	 	10.15%
	 	 	 	 
	
Trapeza Partners II L.P

	 	 	7.73%
	 	 	 	 
	
Trapeza Partners III L.P.

	 	 	6.10%
	 	 	 	 
	
Trapeza Partners IV L.P.

	 	 	5.04%
	 	 	 	 
	
Trapeza Partners V L.P.

	 	 	13.25%
	 	 	 	 
	
Compass Island Partners, L.P.

	 	 	10.00%
	 	 	 	 
	
Compass Island Partners A, L.P.

	 	 	10.00%
	 	 	 	 
	
Cradle Cove Partners, L.P.

	 	 	10.51%
	 	 	 	 
	
Cradle Cove Partners II, L.P.

	 	 	5.81%
	 	 	 	 
	
Cradle Cove Investment Opportunities Fund, L.P.

	 	 	5.90%
	 	 	 	 
	
Cradle Cove Investment Opportunities Fund A, L.P.

	 	 	0.10%
	 	 	 	 
	
Cradle Cove Investment Opportunities Fund C, L.P.

	 	 	0.10%
	 	 	 	 
	
CVC Global Credit Opportunities  Fund, L.P.

	 	 	2.70%

 

 

 

 

 

 

SCHEDULE 5.14(b)

 

SPONSORED CDO OFFERINGS AND STRUCTURED FINANCE INVESTMENTS

 

	
Direct Investments in CDOs

	 	
Total $ CDO Equity

	 	 	
RFFM $ Share of Equity

	 
	
Trapeza IX

	 	 	23,000,000	 	 	 	1,000,000	 
	
Trapeza X

	 	 	39,500,000	 	 	 	2,500,000	 
	
Trapeza XII

	 	 	25,000,000	 	 	 	950,000	 
	
Trapeza XIII

	 	 	30,000,000	 	 	 	2,500,000	 
	
Ischus I (RFFM)

	 	 	17,000,000	 	 	 	500,000	 
	
Ischus HG COLL 2007-1

	 	 	15,800,000	 	 	 	1,000,000	 
	
Ischus Mezz III

	 	 	23,000,000	 	 	 	2,000,000	 
	
Ischus Synthetic II

	 	 	36,000,000	 	 	 	3,000,000	 
	
Apidos IV

	 	 	27,000,000	 	 	 	1,000,000	 
	
Apidos Quattro

	 	 	25,500,000	 	 	 	1,000,000	 
	
Apidos IX

	 	 	38,925,000	 	 	 	1,287,330	 
	 	 	 	 	 	 	 	 	 
	
Total Direct Equity Investments in CDOs

	 	 	300,725,000	 	 	 	16,737,330	 

 

 

 

	
Investment in CDOs Through

	 	
Total Partnership Capital

	 	 	
RFFM Share of

	 	 	 	 
	
Trapeza Partnerships

	 	
Allocated to CDO

	 	 	
Partnership Cap

	 	 	
% Owned

	 
	
Trapeza III

	 	 	18,032,100	 	 	 	1,100,000	 	 	 	6.10	 
	
Trapeza IV

	 	 	7,542,600	 	 	 	380,000	 	 	 	5.04	 
	
Trapeza V

	 	 	8,300,100	 	 	 	1,100,000	 	 	 	13.25	 
	
Total Investments in CDOs

	 	 	33,874,800	 	 	 	2,580,000	 	 	 	7.62	 

 

 

 

	
Investment in Joint Ventures

	 	
Total Investment Amount

	 
	
CVC Credit Partners, L.P.

	 	$	35,980,029	 

 

 

 

  

  

  

 

SCHEDULE 5.17

 

CAPITAL STOCK OR UNITS

 

	  	 	
Authorized Shares / Units /

	 	
 Shares/Units/

	  	 	
% Interests Issued

	 	
% Interests

	  	 	  	 	  
	
RESOURCE AMERICA, INC.

	 	  	 	  
	
Preferred Stock

	 	
1,000,000

	 	
0

	
Common Stock

	 	
49,000,000

	 	
18,308,813

	
Ischus Capital Management, LLC

	 	
100%

	 	
100%

	
RAI Ventures, Inc.

	 	
1,000

	 	
100

	
RCP Financial, LLC

	 	
100%

	 	
100%

	
Resource Capital Manager, Inc.

	 	
1,000

	 	
1,000

	
Resource Capital Investor, Inc.

	 	
1,000

	 	
1,000

	
Resource Capital Partners, Inc.

	 	
1,000

	 	
100

	
Resource Financial Institutions Group, Inc.

	 	
1,000

	 	
1,000

	
Resource Financial Fund Management, Inc.

	 	
1,000

	 	
100

	
Resource Housing Investors I, Inc.

	 	
1,000

	 	
100

	
Resource Housing Investors II, Inc.

	 	
1,000

	 	
100

	
Resource Housing Investors III, Inc.

	 	
1,000

	 	
100

	
Resource Housing Investors IV, Inc.

	 	
1,000

	 	
100

	
Resource Leasing, Inc.

	 	
1,000

	 	
100

	
Resource Programs, Inc.

	 	
100

	 	
100

	
Resource Properties XVII, Inc.

	 	
1,000

	 	
100

	
Resource Properties XXV, Inc.

	 	
1,000

	 	
100

	
Resource Properties XXVI, Inc.

	 	
1,000

	 	
100

	
Resource Properties XXX, Inc.

	 	
1,000

	 	
100

	
Resource Properties XXXI, Inc.

	 	
1,000

	 	
100

	
Resource Properties XLVII, Inc.

	 	
1,000

	 	
100

	
Resource Real Estate, Inc.

	 	
1,000

	 	
100

	
Resource Real Estate Funding, Inc.

	 	
1,000

	 	
1,000

	
Resource Real Estate Holdings, Inc.

	 	
1,000

	 	
100

	
Resource Real Estate Management, LLC

	 	
100%

	 	
100%

	
RRE1 Duraleigh Member, LLC

	 	
100%

	 	
100%

	
RRE2 Duraleigh Member, LLC

	 	
100%

	 	
100%

	
RRE Avalon Member, LLC

	 	
100%

	 	
100%

	
Resource Capital Partners II, LLC

	 	
100%

	 	
100%

	
RRE Leaseco, LLC

	 	
100%

	 	
100%

	
Resource Capital Markets, Inc.

	 	
1,000

	 	
1,000

	
RRE D2R2 2007-1, LLC

	 	
100%

	 	
100%

	
RRE Investor, LLC

	 	
100%

	 	
100%

	
Resource Real Estate Management, Inc.

	 	
1,000

	 	
1,000

	
Resource Securities, Inc.

	 	
1,000

	 	
1,000

	
Resource Europe Management Limited

	 	
1

	 	
1

	
Resource RSI Phase I, LLC

	 	
100%

	 	
100%

  

  

  

 

	
Resource RSI Phase II, LLC

	 	
100%

	 	
100%

	
RCP Nittany Pointe Manager, Inc.

	 	
1,000

	 	
100

	
RCP Fountains GP, Inc.

	 	
1,000

	 	
100

	
RCP Avalon Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Falls at Duraleigh Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Sage Canyon Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Cuestas Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Holdco I Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Reserves Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Foxglove Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Santa Fe Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Regents Center Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Highland Lodge Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Grove Manager, LLC

	 	
100%

	 	
100%

	
RCP Howell Bridge Manager, Inc.

	 	
1,000

	 	
1,000

	
RCP Heritage Lake Manager, LLC

	 	
100%

	 	
100%

	
RCP Westchase Wyndham Manager, LLC

	 	
100%

	 	
100%

	
RCP Pear Tree Manager, LLC

	 	
100%

	 	
100%

	
RCP Wind Tree Manager, LLC

	 	
100%

	 	
100%

	
RCP Chenal Brightwaters Manager, LLC

	 	
100%

	 	
100%

	
Resource Asset Management, LLC

	 	
30,000,000

	 	
22,500,000

	
LEAF Asset Management, LLC

	 	
100%

	 	
100%

	
FLI Holdings, Inc.

	 	
1,000

	 	
100

	
LEAF Financial Corporation

	 	
10,000,000

	 	
9,900,000

	
LEAF Funding, Inc.

	 	
1,000

	 	
1,000

	
LEAF Ventures, LLC

	 	
100%

	 	
100%

	
Merit Capital Manager, LLC

	 	
100%

	 	
100%

	
Merit Capital Advance, LLC

	 	
100%

	 	
100%

	
Resource Commercial Mortgages, Inc.

	 	
1,000

	 	
100

	
RCP Magnolia Manager, LLC

	 	
100%

	 	
100%

	
RCP West Wind Manager, LLC

	 	
100%

	 	
100%

	
RCP Ryan’s Crossing Manager, LLC

	 	
100%

	 	
100%

	
RCP Memorial Towers Manager, LLC

	 	
100%

	 	
100%

	
RCP Villas Manager, LLC

	 	
100%

	 	
100%

	
RCP Coach Lantern Manager, LLC

	 	
100%

	 	
100%

	
RCP Foxcroft Manager, LLC

	 	
100%

	 	
100%

	
RCP Tamarlane Manager, LLC

	 	
100%

	 	
100%

	
RCP Park Hill Manager, LLC

	 	
100%

	 	
100%

	
RCP Bent Oaks Manager, LLC

	 	
100%

	 	
100%

	
RCP Cape Cod Manager, LLC

	 	
100%

	 	
100%

	
RCP Woodland Hills Manager, LLC

	 	
100%

	 	
100%

	
RCP Woodhollow Manager, LLC

	 	
100%

	 	
100%

	
Merit Processing, LLC

	 	
100%

	 	
100%

	
LEAF Ventures II, LLC

	 	
100%

	 	
100%

	
Prompt Payment, LLC

	 	
100%

	 	
100%

	
RRE Oak Park Leaseco, LLC

	 	
100%

	 	
100%

	
RCP Wyndridge Manager, LLC

	 	
100%

	 	
100%

  

  

  

	
RCP Waterstone Manager, LLC

	 	
100%

	 	
100%

	
RCP Woodland Village Manager, LLC

	 	
100%

	 	
100%

	
Resource Real Estate Opportunity Advisor, LLC

	 	
100%

	 	
100%

	
Walnut Street Investments, LLC

	 	
100%

	 	
100%

	
Resource Real Estate Opportunity Manager, LLC

	 	
100%

	 	
100%

	
Parkwin Services, LLC

	 	
100%

	 	
100%

	
Resource Income Advisors, Inc.

	 	
100%

	 	
100%

	
Torsion Capital, Inc.

	 	
100%

	 	
100%

	
Torsion Advisors, Inc.

	 	
100%

	 	
100%

	
Highland Lodge Holdings, LLC

	 	
100%

	 	
100%

	
RRE Highland Lodge Manager, Inc.

	 	
100%

	 	
100%

	
RSI I Manager, Inc.

	 	
100%

	 	
100%

	
RSI II Manager, Inc.

	 	
100%

	 	
100%

	
RA Equityco, LLC

	 	
100%

	 	
100%

	
Resource Real Estate Funding II, Inc.

	 	
1,000

	 	
1,000

	
RFIG Partners, LLC

	 	
100%

	 	
100%

	
RFIG Partners II, LLC

	 	
100%

	 	
100%

  

  

  

 

SCHEDULE 5.22

 

DEPOSIT ACCOUNTS

 

	
Resource America

	
The Bancorp Bank

	
Resource America

	
TD Bank N.A.

	
Resource America

	
TD Bank N.A.

	
Resource Financial Fund Management, Inc.

	
TD Bank N.A.

	
Resource Financial Fund Management, Inc.

	
TD Bank N.A.

	
Resource Financial Institutions Group

	
TD Bank N.A.

	
Resource Capital Manager, Inc.

	
TD Bank N.A.

	
Resource Capital Investor, Inc.

	
TD Bank N.A.

	
Ischus Capital Management LLC

	
TD Bank N.A.

	
Resource Capital Markets, Inc.

	
TD Bank N.A.

	
Resource Capital Partners, Inc.

	
TD Bank N.A.

	
Resource Real Estate Funding, LLC

	
TD Bank N.A.

	
Resource Real Estate Management, Inc.

	
TD Bank N.A.

	
RRE D2R2 2007-1, LLC

	
TD Bank N.A.

	
Resource Capital Partners, Inc.

	
Bank of America

  

  

  

SCHEDULE 7.4(a)

 

AFFILIATE TRANSACTIONS

 

Receivables and Payables with Related Parties

 

	  	 	
June 30,

	 	 	
September 30,

	 
	  	 	

2012

	 	 	

2011

	 
	
Receivables from managed entities and related parties, net:

	 	 	 	 	 	 
	
Commercial finance investment entities

	 	$	19,853	 	 	$	29,725	 
	
Real estate investment entities

	 	 	18,398	 	 	 	19,796	 
	
Financial fund management investment entities

	 	 	3,550	 	 	 	2,652	 
	
RSO

	 	 	4,907	 	 	 	2,539	 
	
Other

	 	 	209	 	 	 	103	 
	
Receivables from managed entities and related parties

	 	$	46,917	 	 	$	54,815	 
	  	 	 	 	 	 	 	 	 
	
Payables due to managed entities and related parties, net:

	 	 	 	 	 	 	 	 
	
Real estate investment entities

	 	$	1,396	 	 	$	1,010	 
	
RSO

	 	 	30	 	 	 	222	 
	
Payables to managed entities and related parties

	 	$	1,426	 	 	$	1,232	 

 

 

Fees and Expenses Reimbursements With Related Parties

 

	  	 	
Three Months Ended

	 	 	
Nine Months Ended

	 
	  	 	

June 30,

	 	 	

June 30,

	 
	  	 	

2012

	 	 	

2011

	 	 	

2012

	 	 	

2011

	 
	
Fees from unconsolidated investment entities (1) :

	 	 	 	 	 	 	 	 	 	 	 	 
	
Real estate(2) 

	 	$	4,405	 	 	$	3,753	 	 	$	12,862	 	 	$	9,909	 
	
Financial fund management

	 	 	765	 	 	 	1,038	 	 	 	2,468	 	 	 	3,523	 
	
RSO:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Management, incentive and servicing fees

	 	 	4,181	 	 	 	2,582	 	 	 	11,521	 	 	 	8,880	 
	
Dividends received

	 	 	510	 	 	 	612	 	 	 	1,646	 	 	 	1,835	 
	
Reimbursement of expenses

	 	 	1,134	 	 	 	687	 	 	 	2,731	 	 	 	1,708	 
	
RRE Opportunity REIT:

Reimbursement of costs and expensesand expenses

	 	 	150	 	 	 	473	 	 	 	785	 	 	 	1,441	 
	
Dividends received

	 	 	14	 	 	 	−	 	 	 	14	 	 	 	−	 
	
Atlas Energy, L.P. - reimbursement of net costs and

expenses

	 	 	160	 	 	 	220	 	 	 	478	 	 	 	830	 
	
LEAF:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
Reimbursement of net costs and expenses

	 	 	84	 	 	 	−	 	 	 	226	 	 	 	−	 
	
Payment for rent and related expenses

	 	 	(193	)	 	 	−	 	 	 	(497	)	 	 	−	 
	
Payment for sub-servicing the commercial finance

      investment partnerships

	 	 	(585	)	 	 	−	 	 	 	(1,696	)	 	 	−	 
	
1845 Walnut Associates Ltd - payment of rent and

operating expenses

	 	 	(155	)	 	 	(152	)	 	 	(469	)	 	 	(522	)
	
Graphic Images, LLC - payment for printing services 

	 	 	(34	)	 	 	(61	)	 	 	(136	)	 	 	(96	)
	
9 Henmar LLC - payment of broker/consulting fees 

	 	 	(20	)	 	 	(20	)	 	 	(42	)	 	 	(46	)
	
Ledgewood P.C. - payment for legal services 

	 	 	(239	)	 	 	(357	)	 	 	(508	)	 	 	(491	)
	
TBBK – reimbursement of net costs and expenses 

	 	 	32	 	 	 	8	 	 	 	106	 	 	 	8	 

 

 

  

  

  

EXHIBIT A

 

 

Schedule I to Subsidiary Collateral Pledge Agreement

 

  

  

  

EXHIBIT A

 

SCHEDULE I

 

Collateral

 

The following Collateral is hereby pledged by each respective Pledgor to Secured Party pursuant to the Collateral Pledge Agreement to which this Schedule is attached:

 

A.           Pledged Capital Stock

 

	
Name of Corporation

	
State of Inc.

	
Class of 

Stock

	
Certificate No.

	
Number 

of Shares

	
Pledgor

	
Resource Capital Corp.

	
MD

	
Common

	
CUSIP

76120W203 76120W906

	
100,000

11,349

	
Resource Capital Manager, Inc.

	
Resource Capital Corp.

	
MD

	
Common

	
RCC-284

RCC-296

RCC-297

RCC-359

RCC-363

RCC-383

RCC-497

RCC-632

RCC-615

RCC-690

RCC-728

RCC-736

RCC-743

RCC-769

RCC-771

RCC-775

RCC-792

RCC-794

TBD

	
5,738

2,086

6,252

9,960

11,349

26,194

17,839

42,239

26,097

143,334

73,815

124,688

53,490

4,482

29,808

45,938

28,252

83,776

34,506

	
Resource Capital Manager, Inc.

	
Resource Capital Corp.

	
MD

	
Common

	
CUSIP 7612W203

	
900,000

	
Resource Capital Investor, Inc.

	
Resource Capital Corp.

	
MD

	
Common

	  	
200,000

	
Resource Capital Investor, Inc.

	
Resource Capital Manager, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Financial Fund Management, Inc.

	
Resource Financial Institutions Group, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Financial Fund Management, Inc.

	
Resource Real Estate Funding, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Real Estate, Inc.

	
Resource Real Estate Funding II, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Real Estate, Inc.

	
Resource Capital Partners, Inc.

	
DE

	
Common

	
3

	
100

	
Resource Real Estate, Inc.

	
Resource Real Estate, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Real Estate Holdings, Inc.

	
Resource Real Estate Management, Inc.

	
DE

	
Common

	
1

	
1,000

	
Resource Capital Partners, Inc.

	 Resource Capital Markets, Inc.	 DE	 Common	 1	 1,000	 RAI Ventures

 

 

 

  

  

  

 

 

B.           Pledged Partnership Interests

 

	
Name of Partnership

	
Type of 

Partnership

	
Partnership 

Interests 

Pledged

	
Percentage of 

Pledged 

Units

	
Percentage 

of Total

	
Pledgor

	
Trapeza Partners L.P.

	
Limited

	
2,750,000

	
100%

	
10.15

	
Resource Financial Fund Management, Inc.

	
Trapeza Partners II L.P.

	
Limited

	
3,000,000

	
100%

	
7.73

	
Resource Financial Fund Management, Inc.

	
Trapeza Partners III L.P.

	
Limited

	
1,100,000

	
100%

	
6.10

	
Resource Financial Fund Management, Inc.

	
Trapeza Partners IV L.P.

	
Limited

	
380,000

	
100%

	
5.04

	
Resource Financial Fund Management, Inc.

	
Trapeza Partners V L.P.

	
Limited

	
1,100,000

	
100%

	
13.25

	
Resource Financial Fund Management, Inc.

	
Compass Island Partners, L.P.

	
Limited

	
1,743,472

	
100%

	
10.0

	
Resource Financial Fund Management, Inc.

	
Compass Island Partners A, L.P.

	
Limited

	
1,965,442

	
100%

	
10.0

	
Resource Financial Fund Management, Inc.

	
Cradle Cove Partners, L.P.

	
Limited

	
1,182,408

	
100%

	
 10.5

	
Resource Financial Fund Management, Inc.

	
Cradle Cove Partners II, L.P.

	
Limited

	
737,315

	
100%

	
5.8

	
Resource Financial Fund Management, Inc.

	
Cradle Cove Investment Opportunities Fund, L.P.

	
Limited

	
214,400

	
100%

	
5.9

	
Resource Financial Fund Management, Inc.

	
Compass Island Investment Opportunities Fund A, L.P.

	
Limited

	
1,000

	
100%

	
0.1

	
Resource Financial Fund Management, Inc.

	
Compass Island Investment Opportunities Fund C, L.P.

	
Limited

	
1,000

	
100%

	
0.1

	
Resource Financial Fund Management, Inc.

	
CVC Global Credit Opportunities Fund, L.P.

	
Limited

	
250,000

	
100%

	
2.70%

	
Resource Financial Fund Management, Inc.

	
RCP Partners, LP

	
Limited

	
0

	
100%

	
99

	
Resource Programs, Inc.

	
Resource Real Estate Investors, L.P.

	
Limited

	
95,138.89

	
100%

	
11.50

	
Resource Capital Partners, Inc.

	
Resource Real Estate Investors II, L.P.

	
Limited

	
92,264.21

	
100%

	
6.43

	
Resource Capital Partners, Inc.

	
Resource Real Estate Investors III, L.P.

	
Limited

	
186,375.90

	
100%

	
7.40

	
Resource Capital Partners, Inc.

	
Resource Real Estate Investors IV, L.P.

	
Limited

	
163,954.08

	
100%

	
5.53

	
Resource Capital Partners, Inc.

	
Resource Real Estate Investors V, L.P.

	
Limited

	
220,825.89

	
100%

	
6.28

	
Resource Capital Partners, Inc.

  

  

  

 

	
Name of Partnership

	
Type of Partnership

	
Partnership 

Interests 

Pledged

	
Percentage of 

Pledged 

Units

	
Percentage 

of Total

	
Pledgor

	
Resource Real Estate Investors 6, L.P.

	
Limited

	
204,678.36

	
100%

	
5.73

	
Resource Capital Partners, Inc.

	
Resource Real Estate Investors 7, L.P.

	
Limited

	
180,768.33

	
100%

	
5.53

	
Resource Capital Partners, Inc.

	
The Metropolitan Fund: Dover Pension Investors – 1986

	
Limited

	
7,000

	
100%

	
7.000

	
Resource Properties XXV, Inc.

 

 

C.           Pledged Membership Interests

 

	
Name of Limited Liability Company

	
State of Org.

	
Class of 

Membership

Interests

	
Percentage 

Voting

Interest

	
Percentage Economic

Interest

	
Pledgor

	
Resource Real Estate Management, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners, Inc.

	
Ischus Capital Management, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Financial Fund Management, Inc.

	
Trapeza Capital Management, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Funding, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Funding II, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Funding III, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Funding IV, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Funding V, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza TPS, LLC

	
DE

	
Voting

	
50%

	
50%

	
Resource Financial Fund Management, Inc.

	
Trapeza Management Group, LLC

	
DE

	
Voting

	
33.3%

	
33.3%

	
Resource Financial Fund Management, Inc.

	
RCP Financial LLC

	
PA

	
Voting

	
100%

	
100%

	
Resource Programs, Inc.

	
RRE Leaseco, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Real Estate, Inc.

	
Walnut Street Investments, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners II, LLC

	
Resource Capital Partners II, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Real Estate, Inc.

	
RRE Investor, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners II, LLC

	
RRE D2R2 2007-1, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Real Estate, Inc.

	
Resource Real Estate Opportunity Advisor, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Real Estate, Inc.

	
Resource Real Estate Opportunity Manager, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Real Estate, Inc.

	
RRE1 Duraleigh Member, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners, Inc.

	
RRE2 Duraleigh Member, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners, Inc.

	
RRE Avalon Member, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners, Inc.

	
Parkwin Services, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Capital Partners II, LLC

	
Torsion Capital, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Financial Fund Management, Inc.

	
Torsion Advisors, LLC

	
DE

	
Voting

	
100%

	
100%

	
Resource Financial Fund Management, Inc.

 

 

 

D.           Other Pledged Equity Interests

 

	
Name of LLC

	
State of Org.

	
Interest

	
Certificate /

Note Number

	
Dollar Amount / 

Preferred Shares

	
Pledgor

	
Trapeza CDO IX, Ltd.

	
Cayman Islands

	
Sub Notes

	
R-l

	
$1,000,000

	
Resource Financial Fund Management, Inc.

	
Trapeza CDO X, Ltd.

	
Cayman Islands

	
Sub Notes

	
R-29

	
$2,500,000

	
Resource Financial Fund Management, Inc.

	
Trapeza CDO XII, Ltd.

	
Cayman Islands

	
Sub Notes

	
R-3

	
$950,000

	
Resource Financial Fund Management, Inc.

	
Trapeza CDO XIII, Ltd.

	
Cayman Islands

	
Sub Notes

	
R-2

	
$2,500,000

	
Resource Financial Fund Management, Inc.

	
Ischus CDO I Ltd.

	
Cayman Islands

	
Preference Shares

	
R-4

	
500 Preference Shares

	
Resource Financial Fund Management, Inc.

	
Ischus Mezzanine CDO III, Ltd.

	
Cayman Islands

	
Preference Shares

	
C-l

	
2,000 Preference Shares

	
Resource Financial Fund Management, Inc.

	
Ischus Synthetic ABS CDO 2006-2 Ltd.

	
Cayman Islands

	
Preference Shares

	
004

	
3,000,000 Preference Shares

	
Resource Financial Fund Management, Inc.

	
HG-COLL 2007-1 Ltd.

	
Cayman Islands

	
Preference Shares

	
004

	
1,000,000 Preference Shares

	
Resource Financial Fund Management, Inc.

	
Apidos CDO IV

	
Cayman Islands

	
Sub Notes

	
C-l

	
$1,000,000

	
Resource Financial Fund Management, Inc.

	
Apidos Quattro CDO

	
Cayman Islands

	
Sub Notes

	
C-l

	
$1,000,000

	
Resource Financial Fund Management, Inc.

	
Apidos CLO IX

	
Cayman Islands

	
Sub Notes

	
C-2

	
$1,287,330

	
Resource Financial Fund Management, Inc.TSN 2012 10K EX - 10.11

EXHIBIT 10.11

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”), effective the 27th day of August, 2012 (the “Effective Date”), by and between Tyson Foods, Inc., a Delaware corporation (“Company”), and any of its subsidiaries and affiliates (hereinafter collectively referred to as “Employer”), and Curt T Calaway, Persn XXXXXX  (hereinafter referred to as “Employee”).

WITNESSETH:
WHEREAS, Employer is engaged in a very competitive business, where the development and retention of extensive trade secrets and proprietary information is critical to future business success; and
WHEREAS, Employee, by virtue of Employee’s employment with Employer, is involved in the development of, and has access to, this critical business information, and, if such information were to get into the hands of competitors of Employer, Employee could do substantial business harm to Employer; and
WHEREAS, Employer has advised Employee that agreement to the terms of this Agreement, and specifically the non-compete and non-solicitation sections, is an integral part of this Agreement, and Employee acknowledges the importance of the non-compete and non-solicitation sections, and having reviewed the Agreement as a whole, is willing to commit to the restrictions as set forth herein;
NOW, THEREFORE, Employer and Employee, in consideration of the above and the terms and conditions contained herein, hereby mutually agree as follows:
1.    Duties.  Employee shall perform the duties of SVP & CAO or shall serve in such other capacity and with such other duties for Employer as Employer shall from time to time prescribe.  Employee shall perform all such duties with diligence and thoroughness.  Employee shall be subject to and comply with all rules, policies, procedures, supervision and direction of Employer in all matters related to the performance of Employee’s duties.
2.    Term of Employment.  The term of employment hereunder shall be for a period of three (3) years, commencing on the Effective Date and terminating on the third anniversary of the Effective Date, unless terminated prior thereto in accordance with the provisions of this 

1

Agreement (the period from the Effective Date to the earlier of the third anniversary of the Effective Date or any earlier termination of employment is referred to herein as the “Period of Employment”).  Notwithstanding the expiration of the Period of Employment, regardless of the reason, and in addition to other obligations that survive the Period of Employment, the obligations of Employee under Sections 8 (b), (c), (d), (e), (f), (g), (h), and (i) shall continue in effect after the Period of Employment for the time periods specified in these sections.
3.    Compensation.  For the services to be performed hereunder, Employee shall be compensated by Employer during the Period of Employment at the rate of not less than Two hundred seventy-five thousand dollars and 00/100 ($275,000.00) per year payable in accordance with Employer’s payroll practices, and in addition may receive awards under Employer’s annual bonus plan then in effect, subject to the discretion of the senior management of Employer.  Such compensation will be subject to review from time to time when salaries of other officers and managers of Employer are reviewed for consideration of increases thereof.
4.    Participation in Benefit Programs.  Employee shall be entitled to participate in any benefit programs generally applicable to employees of Employer adopted by Employer from time to time.  All expenses for which Employee may be eligible for reimbursement and all in-kind benefits Employee may receive pursuant to this Section 4 must be incurred by or provided to, as applicable, the Employee during the Period of Employment for the Employee to be eligible for the reimbursement or the in-kind benefit.  All taxable reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred, nor shall the amount of taxable, reimbursable expenses incurred or in-kind benefits provided in one taxable year affect the expenses eligible for reimbursement or the in-kind benefits provided, as applicable, in any other taxable year.  The right to a taxable reimbursement or an in-kind benefit under this Agreement will not be subject to liquidation or exchange for another benefit.
5.    Limitation on Outside Activities.  Employee shall devote Employee’s full employment energies, interest, abilities and time to the performance of Employee’s obligations hereunder and shall not, without the written consent of the Chief Executive Officer or the General Counsel of the Employer, render to others any service of any kind or engage in any activity which conflicts or interferes with the performance of Employee’s duties hereunder.

2

6.    Ownership of Employee’s Inventions.  All ideas, inventions, and other developments or improvements conceived by Employee, alone or with others, during Employee’s Period of Employment, whether or not during working hours, (i) that are within the scope of the business operations of Employer, (ii) that were developed at the direction of the Employer, or (iii) that relate to any of the work or projects of the Employer, are the exclusive property of Employer.  Employee agrees to assist Employer, at Employer’s expense, to obtain patents on any such patentable ideas, inventions, and other developments, and agrees to execute all documents necessary to obtain such patents in the name of the Employer.
		
	7.
	Termination.

(a)    Voluntary Termination.  Employee may terminate Employee’s employment, including Employee’s retirement, pursuant to this Agreement at any time by not less than ninety (90) days prior written notice to Employer.  Upon receipt of such notice, Employer shall have the right, at its sole discretion, to accelerate Employee’s date of termination at any time during said notice period.  Employee shall not be entitled to any compensation from Employer for any period beyond Employee’s actual date of termination, and Employee’s Stock Options and Restricted Stock (each as hereinafter defined) shall be treated as provided in the award agreements pursuant to which such rights were granted. Employee shall not be entitled to a bonus for the fiscal year of the Employer in which such termination occurs.
(b)    Involuntary Termination Without Cause.  Employer shall be entitled, at its election and without Cause (as defined in Section 7(c)), to terminate Employee’s employment pursuant to this Agreement upon written notice to Employee.  Subject to the limitations of Section 7(e), upon a termination by Employer without Cause pursuant to this Section 7(b), Employer shall continue to pay Employee at Employee’s current base salary, paid in the manner provided in Section 3 above, for a period commencing with the separation from service (within the meaning of Section 409A of the Internal Revenue Code and the regulations thereunder, and which occurs on or after the effective date of the termination), and continuing for a period of eighteen (18) months after the date of the separation from service.  Employer shall treat Employee’s Stock Options and Restricted Stock as provided in the award agreements pursuant to which such equity rights were granted.  Employee shall not be entitled to any bonus for the fiscal year of the Employer in which such termination by Employer occurs.   

3

The Employee’s eligibility to receive benefits under this Section 7(b) shall be conditioned upon (i) the Employee’s execution of a General Release and Separation Agreement, generally as stated in the format and containing those terms reflected in Exhibit A to this Agreement, and (ii) the General Release and Separation Agreement becoming effective after the lapse of any permitted or required revocation period without the associated revocation rights being exercised by Employee.  Employer reserves the right in its sole discretion to modify the format and terms of the General Release and Separation Agreement during the term of this Agreement.  The obligation to continue base salary shall accrue from the date of the termination by Employer and, if the release is signed and not revoked, payments shall commence by the later of (1) the end of the revocation period provided pursuant to the terms of the release agreement (but no later than the sixtieth (60th) day following the Employee’s termination by Employer) or (2) the effective date of the separation from service, with any accrued but unpaid base salary continuation being paid on the date of the first payment.
(c)    Involuntary Termination With Cause.    Employer may, at its sole and absolute discretion, terminate this Agreement and Employee’s Period of Employment hereunder for Cause (defined below) without any payment, liability or other obligation.  As used herein, the term "Cause" shall mean (i) willful malfeasance or willful misconduct committed by Employee in connection with Employee’s performance of Employee’s duties hereunder which results in damage or injury to the Employer; (ii) gross negligence committed by Employee in connection with the performance of Employee’s duties hereunder which results in damage or injury to the Employer; (iii) any willful and material breach by Employee of Section 8 of this Agreement, as determined in the Employer’s sole discretion; or (iv) the conviction of Employee of a felony or job-related misdemeanor.
(d)    Death or Incapacity.  If Employee is unable to perform Employee’s duties pursuant to this Agreement by reason of Disability (defined below), Employer may terminate Employee’s employment pursuant to this Agreement by thirty (30) days written notice to Employee.  If Employee is unable to perform Employee’s duties pursuant to this Agreement by reason of death, this Agreement shall immediately terminate.  Employee’s Stock Options and Restricted Stock in the event of a termination under this section shall be treated as provided in the award agreements pursuant to which such equity rights were granted.  In the event of 

4

Employee’s death or Disability, Employee, or Employee’s estate, as applicable, shall receive a prorated bonus for the portion of time worked during the fiscal year of the Employer in which termination under this Section 7(d) occurs, based upon the bonus received by Employee during the immediately prior fiscal year.  The prorated bonus amount shall be paid in a lump sum within thirty (30) days following the date of the Employee’s death or determination of Disability status, as applicable.  For purposes of this Section 7(d), “Disability” means the Employee (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is receiving income or replacement benefits for a period of not less than three (3) months under an accidental or health plan covering employees of the Employer due to any medically determinable mental or physical impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.  Any determination of the Employee’s disability status under Section 7(d)(i) shall be supported by the written opinion of a physician competent in the branch of medicine to which such disability relates.
(e)    Temporary Suspension or Limitation of Payments.
(i)Notwithstanding the foregoing, if the Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code (and the regulations thereunder) at the date of Employee’s separation from service, to the extent that all or a portion of any payments due under Section 7 of this Agreement (including, without limitation the payment of any salary continuation) exceeds the amount, if any, that can be paid as separation pay that does not constitute a deferral of compensation under Section 409A of the Internal Revenue Code (and the regulations thereunder), or that otherwise can be paid without resulting in a failure under Section 409A(a)(1) of the Internal Revenue Code, payment shall be delayed until the later of six (6) months after the separation from service or the date the payment would otherwise be made under Section 7.  Any payments that are so delayed shall be paid in one lump sum during the seventh month following the date of the Employee’s separation from service.
(ii)Notwithstanding the foregoing, if the total payments to be paid to the Employee pursuant to Section 7, along with any other payments to the Employee by the Employer, would result in the Employee being subject to the excise tax imposed by Section 4999 

5

of the Internal Revenue Code, the Employer shall reduce the aggregate payments to the largest amount which can be paid to the Employee without triggering the excise tax, but only if and to the extent that such reduction would result in the Employee retaining larger aggregate after-tax payments.  The determination of the excise tax and the aggregate after-tax payments to be received by the Employee will be made by the Employer.  If payments are to be reduced, the payments made latest in time will be reduced first and if payments are to be made at the same time, non-cash payments will be reduced before cash payments.
8.    Additional Compensation, Confidential Information, Trade Secrets, Limitations on Solicitation and Non-Compete Clause.
(a)    Employee shall receive, in addition to all regular compensation for services as described in Section 3 of this Agreement, as additional consideration for signing this Agreement and for agreeing to abide and be bound by the terms, provisions and restrictions of this Section 8, the following:
(i)    An award of 10,905.4858 shares of Tyson Foods, Inc. Class A Common Stock (“Common Stock”) subject to the terms and conditions of a restricted stock agreement currently in use by the Employer for awards to employees generally (referred to herein as “Restricted Stock”).
(ii)    During Employee’s Period of Employment, on grant dates to be specified by Employer which Employer expects to be consistent with Employer’s past practices for grants of options to employees generally, a grant of 21,200 options on each such grant date to purchase shares of Common Stock (referred to herein as “Stock Options”), subject to the terms and conditions of the Tyson Foods, Inc. 2000 Stock Incentive Plan or any subsequent equity plan adopted by the Employer (“Stock Plan”), and the option grant agreement then in use on the date of grant by the Employer for employees generally.
(b)    Employee recognizes that, as a result of Employee’s employment with the Employer, Employee has had and will continue to have access to confidential information in multiple forms, electronic or otherwise, and such confidential information may include, but is not limited to, trade secrets; proprietary information; intellectual property; other documents, data, and information concerning methods, processes, controls, techniques, formulas, production, distribution, purchasing, financial analysis, returns and reports; information regarding other 

6

employees as further discussed in Section 8(f); customer lists; supplier lists; vendor lists; and other sensitive information and data regarding the customers, suppliers, vendors, services, sales, pricing, and costs of Employer which is the property of and integral to the operations and success of Employer.  Employee agrees to be bound by the provisions of this Section 8, which Employee agrees and acknowledges to be reasonable and necessary to protect legitimate and important business interests and concerns of Employer regarding such confidential information.  Employee acknowledges that the information referred to above has independent economic value from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.  Employee further acknowledges that Employer has taken all reasonable steps under the circumstances to maintain the secrecy and/or confidentiality of such information.
(c)    Employee agrees that Employee will not divulge to any person, nor use to the detriment of Employer, nor use in any business or process of manufacture in Direct Competition (defined is Section 8(e)) with Employer, at any time during Period of Employment or thereafter, any of the trade secrets and/or other confidential information of the Employer, whether in electronic form or otherwise, without first obtaining the express written permission of Employer. A trade secret shall include any information maintained as confidential and used by Employer in its business, including but not limited to a formula, pattern, compilation, program, device, method, technique or process that has value, actual or potential, from its confidentiality and from not being readily ascertainable to others who could also obtain value from such information.  For purposes of this Section 8, the compilation of information used by Employer in its business shall include, without limitation, the identity of customers and suppliers and information reflecting their interests, preferences, credit-worthiness, likely receptivity to solicitation for participation in various transactions and related information obtained during the course of Employee’s employment with Employer.
(d)    Employee agrees that at the time of leaving the employ of Employer, Employee will deliver to Employer, and not keep or deliver to anyone else, any and all originals and copies, electronic or hard copy, of notebooks, memoranda, documents, communications, and, in general, any and all materials relating to the business of Employer, or constituting property of the Employer.  Employee further agrees that Employee will not, directly or indirectly, request or 

7

advise any customers or suppliers of Employer to withdraw, curtail or cancel its business with Employer.
(e)    Employee agrees that during Employee’s Period of Employment and for a period of one (1) year after the expiration of the Period of Employment (it is expressly acknowledged that this clause is intended to survive the expiration of the Period of Employment), Employee will not directly or indirectly, in the United States, participate in any Position (defined below) in any business in Direct Competition (defined below) with any business of the Employer.  The term “Direct Competition,” as used in this section, shall mean any business that directly competes against any line of business in which Employee was actively engaged during Employee’s employment with the Employer.  The term “Position,” as used in this section, includes a partner, director, holder of more than 5% of the outstanding voting shares, principal, executive, officer, manager or any employment or consulting position with an entity in Direct Competition with Employer, where Employee performs any duties which are substantially similar to those performed by the Employee during Employee’s employment with Employer.  Employee acknowledges that a “substantially similar” position shall include any employment or consulting position with an entity in Direct Competition with Employer is one in which Employee might be able to utilize the valuable, proprietary and confidential information to which Employee was exposed during Employee’s employment with Employer.  It is acknowledged and agreed that the scope of the clause as set forth above is essential, because (i) a more restrictive definition of “Position” (e.g. limiting it to the “same” position with a competitor) will subject the Employer to serious, irreparable harm by allowing competitors to describe positions in ways to evade the operation of this clause, and substantially restrict the protection sought by Employer, and (ii) by allowing the Employee to escape the application of this clause by accepting a position designated as a “lesser” or “different” position with a competitor, the Employer is unable to restrict the Employee from providing valuable information to such competing entity to the harm of the Employer.
(f)    Employee recognizes that Employee possesses confidential information about other employees of Employer relating to their education, experience, skills, abilities, salary and benefits, and interpersonal relationships with customers and suppliers of Employer.  Employee agrees that during Employee’s Period of Employment hereunder, and for a period of 

8

three (3) years after the expiration of the Period of Employment (it is expressly acknowledged that this clause is intended to survive, if applicable, the expiration of the Period of Employment), Employee shall not, directly or indirectly, solicit or contact any employee or agent of Employer, with a view to or for the purposes of inducing or encouraging such employee or agent to leave the employ of Employer, for the purpose of being hired by Employee, any employer affiliated with Employee, or any competitor of Employer.  Employee agrees that Employee will not convey any such confidential information or trade secrets about other employees to anyone.
(g)    Employee acknowledges that the restrictions contained in this Section 8 are reasonable and necessary to protect Employer’s interest in this Agreement and that any breach thereof will result in an irreparable injury to Employer for which Employer has no adequate remedy at law.  Employee therefore agrees that, in the event  Employee breaches any of the provisions contained in this Section 8, Employer shall be authorized and entitled to seek from any court of competent jurisdiction (i) a temporary restraining order, (ii) preliminary and permanent injunctive relief,  (iii) an equitable accounting of all profits or benefits arising out of such breach, (iv) direct, incidental and consequential damages arising from such breach; and/or (v) all reasonable legal fees and costs related to any actions taken by Employer to enforce Section 8.
(h)    Employer and Employee have attempted to specify a reasonable period of time, a reasonable area and reasonable restrictions to which this Section 8 shall apply.  Employer and Employee agree that if a court or administrative body should subsequently determine that the terms of this Section 8 are greater than reasonably necessary to protect Employer’s interest, Employer agrees to waive those terms which are found by a court or administrative body to be greater than reasonably necessary to protect Employer’s interest and to request that the court or administrative body reform this Agreement specifying a reasonable period of time and such other reasonable restrictions as the court or administrative body deems necessary.  Further, Employee agrees that Employer shall have the right to amend or modify this Section 8 as necessary to comport with the determination of any court or administrative body that such Section in this or a similar agreement entered into by Employer with any other officer or manager of Employer is greater than reasonably necessary to protect Employer’s interest.

9

(i)    Employee further agrees that this Section 8, as well as Sections 11 and 12 relating to choice of law and forum for resolution, are integral parts of this Agreement, and that should a court fail or refuse to enforce the restrictions contained herein in the manner expressly provided in Sections 8(a) through 8(h) above, the Employer shall recover from Employee, and the court shall award to the Employer, the consideration (or a pro-rata portion thereof to the extent these provisions are enforced but the time frame is reduced beyond that specified above) provided to and elected by Employee under the terms of Section 8(a) above (or the monetary equivalent thereof), its cost and its reasonable attorney’s fees.  Employee acknowledges that such award is not intended as “liquidated damages” and is not exclusive to other remedies available to Employer.  Instead such award is intended to ensure that Employee is not unjustly enriched as a result of retaining contract benefits not earned by Employee.
9.    Modification.  This Agreement contains all the terms and conditions agreed upon by the parties hereto, and no other agreements, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or bind either of the parties hereto, except for any pre-employment confidentiality agreement that may exist between the parties or any agreement or policy specifically referenced herein.  This Agreement cannot be modified except by a writing signed by both parties.
10.    Assignment.  This Agreement shall be binding upon Employee, Employee’s heirs, executors and personal representatives and upon Employer, its successors and assigns. Employee may not assign this Agreement, in whole or in part, without first obtaining the written consent of the Chief Executive Officer of Employer.
11.    Applicable Law.  Employee acknowledges that this Agreement is performable at various locations throughout the United States and specifically performable wholly or partly within the State of Delaware and consents to the validity, interpretation, performance and enforcement of this Agreement being governed by the internal laws of said State of Delaware, without giving effect to the conflict of laws provisions thereof.
12.    Jurisdiction and Venue of Disputes.  The courts of Washington County, Arkansas shall have exclusive jurisdiction and be the venue of all disputes between the Employer and Employee, whether such disputes arise from this Agreement or otherwise.  In addition, Employee 

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expressly waives any right Employee may have to sue or be sued in the county of Employee’s residence and consents to venue in Washington County, Arkansas.
13.    Acceleration Upon a Change in Control.  Upon the occurrence of a Change in Control (defined below) the Restricted Stock and Stock Options that have been granted to Employee pursuant to award agreements from the Employer under Section 8(a), or which have otherwise been previously granted to Employee under an award agreement from the Employer; and which awards are unvested at the time of the Change in Control, will vest sixty (60) days after the Change in Control event occurs (unless vesting earlier pursuant to the terms of an award agreement).  If the Employee is terminated by the Employer without Cause during such sixty (60) day period, all of the unvested Restricted Stock and Stock Options granted pursuant to such award agreements will vest on the date of termination.  For purposes of this Agreement, the term "Change in Control" shall have the same meaning as the term "Change in Control" as set forth in the Stock Plan; provided, however, that a Change in Control shall not include any event as a result of which one or more of the following persons or entities possess, immediately after such event, over fifty percent (50%) of the combined voting power of the Employer, or, if applicable, a successor entity: (a) Tyson Limited Partnership, or any successor entity; (b) individuals related to Don Tyson by blood, marriage or adoption, or the estate of any such individual (including Don Tyson); or (c) any entity (including, but not limited to, a partnership, corporation, trust or limited liability company) in which one or more of the entities, individuals or estates described in clauses (a) and (b) hereof possess over fifty percent (50%) of the combined voting power or beneficial interests of such entity.  The Committee (as defined in the Stock Plan) shall have the sole discretion to interpret the foregoing provisions of this paragraph.
14.    Severability.  If, for any reason, any one or more of the provisions contained in this Agreement are held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the day and year first above written.

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EMPLOYEE ACKNOWLEDGES EMPLOYEE HAS COMPLETELY READ THE ABOVE, HAS BEEN ADVISED TO CONSIDER THIS AGREEMENT CAREFULLY, AND HAS BEEN FURTHER ADVISED TO REVIEW IT WITH LEGAL COUNSEL OF EMPLOYEE’S CHOOSING BEFORE SIGNING.  EMPLOYEE FURTHER ACKNOWLEDGES EMPLOYEE IS SIGNING THIS AGREEMENT VOLUNTARILY, AND WITHOUT DURESS, COERCION, OR UNDUE INFLUENCE AND THEREBY AGREES TO ALL OF THE TERMS AND CONDITIONS CONTAINED HEREIN.

	
		
	/s/ Curt T Calaway

	(Employee)

	 
	 

	Springdale, AR

	(Location)

	 
	 

	8/27/12

	(Date)

	 
	 

	Tyson Foods, Inc.

	 
	 

	By
	/s/ Dennis Leatherby

	Title
	EVP & CFO

12

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