Document:

exh10_6.htm

     

    
      

      

    

     

    
      THIRD
AMENDMENT TO LOAN AND SECURITY AGREEMENT

       

       

      This
THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (“Amendment”), dated August 7,
2008, but effective as of June 30, 2008, is among Resource
America, Inc., a Delaware corporation (“Borrower”), TD BANK, N.A. (successor by
merger to Commerce Bank, N.A.), a national banking association, in its capacity
as agent (“Agent”), TD BANK,
N.A. (successor by merger to Commerce Bank, N.A.), a national banking
association, in its capacity as issuing bank (“Issuing Bank”) and each of the
financial institutions which are now or hereafter identified as Lenders on
Schedule A (as such Schedule may be amended, modified or replaced from time to
time) attached to the Loan Agreement (as defined below), (each
such  financial institution, individually each being a “Lender” and
collectively all being “Lenders”).

       

      BACKGROUND

       

      A.           Pursuant
to the terms of a certain Loan and Security Agreement dated May 24, 2007 among
Borrower, Agent and Lenders (as the same has been or may be supplemented,
restated, superseded, amended or replaced from time to time, the “Loan
Agreement”), Lenders made available to Borrower, inter alia, a
revolving line of credit not to exceed Seventy Five Million Dollars
($75,000,000) (the “Loans”).  All capitalized terms used herein
without further definition shall have the respective meaning set forth in the
Loan Agreement and all other Loan Documents.

       

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

       

      C.           An
Event of Default exists under the Loan Agreement, and Borrower has requested
Lenders’ waiver of such Event of Default.  Lenders have agreed to
waive such Event of Default in accordance with and subject to the satisfaction
of the conditions hereof.

       

      D.           Borrower
has requested that Agent and Lenders also modify, in certain respects, the terms
of the Loan Agreement and Agent and Lenders have agreed to such modifications in
accordance with and subject to the satisfaction of the conditions
hereof.

       

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

       

      1.           Waiver of Existing
Default.  Borrower acknowledges that Borrower failed to
maintain the minimum Consolidated Net Worth required under Section 6.8(a) of the
Loan Agreement for the fiscal quarter ending June 30, 2008 (the “Existing
Default”) and that such failure constitutes an Event of Default under the Loan
Agreement.  Upon satisfaction of each of the Effectiveness Conditions
set forth in Section 8 of this Amendment, Lenders shall be deemed to have waived
the Existing Default as of the date of this Amendment.  Lenders’
waiver of the Existing Default shall in no way be construed as an agreement to
waive any Default or Event of Default that may have occurred prior to the date
hereof other than the Existing Default nor to waive any Default or Event of
Default arising after the date hereof, and Agent and Lenders reserve all rights
and remedies under the Loan Agreement and the Loan Documents as to any Default
or Event of Default other than the Existing Default.  The granting of
the waiver of the

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Existing
Default under this Amendment shall not be construed as a course of conduct or
dealing on the part of Agent and Lenders.

       

      2.           Amendments to Loan
Agreement.

       

      a.           Section
1 of the Loan Agreement shall be amended by deleting the definition of Maximum Revolving Credit
Amount and replacing it as follows:

       

      Maximum Revolving Credit
Amount – Subject to Section 2.9(b), the aggregate sum of each Lender’s
Revolving Credit Pro Rata Share, which in no event shall exceed in the
aggregate:

       

      (a) from August 7, 2008 through
September 29, 2008, Sixty Million Dollars ($60,000,000);

       

      (b) from September 30, 2008 through
December 30, 2008, Fifty-Five Million Dollars ($55,000,000);

       

      (c) from December 31, 2008 through
March 30, 2009, Forty-Five Million Dollars ($45,000,000); and

       

      (d) After March 30, 2009, Thirty
Million Dollars ($30,000,000); provided that notwithstanding any other provision
of this Agreement, after March 30, 2009, the Revolving Credit Pro Rata Share of
U.S. Bank, National Association shall be reduced to Zero Dollars ($0) and U.S.
Bank, National Association shall no longer be a Lender under this Agreement.
..

       

      b.           Schedule
A to the Loan Agreement shall be replaced in its entirety with Schedule A
as attached to this Amendment.

       

      c.           Section
6.8 of the Loan Agreement shall be amended by deleting subsection (a) and
replacing it as follows:

       

      (a) Consolidated Net
Worth - Borrower shall maintain at all times Consolidated Net Worth, to
be tested quarterly at the end of each fiscal quarter, of not less than the
following amounts for the following periods:

      

      June 30,
2008 through September 29,
2008                                                                                                           $150,000,000

      September
30, 2008 through September 29,
2009                                                                                                           $170,000,000

      September
30, 2009 through September 29,
2010                                                                                                           $180,000,000

      September
30, 2010 through September 29,
2011                                                                                                           $190,000,000

      September
30, 2011 through September 29,
2012                                                                                                           $200,000,000

      

       

      3.           Further Amendments.
Each of Borrower and Lenders, as consideration for the waiver of the Existing
Default, hereby agree to negotiate in good faith a future amendment (the “Future
Amendment”) to Section 6.8(a) of the Loan Agreement, and to execute and deliver
such Future Amendment, along with Borrower’s payment of all of Agent’s expenses
and such other

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      items as
Agent may reasonably require in connection with the preparation, execution and
delivery of the Future Amendment, to Agent no later than sixty (60) days after
the date hereof.

       

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

       

      a.           Prior
Representations. Borrower, by its execution of this Amendment, reconfirms
all warranties and representations made to Lenders under the Loan Agreement and
the other Loan Documents and restates such warranties and representations as of
the date hereof, all of which shall be deemed continuing until all of the
obligations due to Secured Parties are indefeasibly paid and satisfied in
full.

       

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

       

      c.           Valid, Binding and
Enforceable. This Amendment and any assignment or other instrument,
document or agreement executed and delivered in connection herewith, will be
valid, binding and enforceable in accordance with their respective
terms.

       

      d.           No
Default.  After giving effect to this Amendment, no Default or
Event of Default exists.

       

      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 modified by this Amendment
are each ratified and confirmed and continue unchanged in full force and
effect.  Any reference to the Loan Agreement and all other Loan
Documents respectively in this or any other instrument, document or agreement
related thereto or executed in connection therewith shall mean the Loan
Agreement and all other Loan Documents respectively as amended by this
Amendment.  As security for the payment of the Obligations, and
satisfaction by Borrower of all covenants and undertakings contained in the Loan
Agreement, Borrower hereby confirms its prior grant to Agent, for the ratable
benefit of Secured Parties, of a continuing first lien on and security interest
in, upon and to all of Borrower's now owned or hereafter acquired, created or
arising Collateral as described in Section 3 of the Loan Agreement.

       

      6.           Confirmation of
Indebtedness. Borrower confirms and acknowledges that as of the close of
business on August 6, 2008, it is indebted to Agent and Lenders under the Loan
Documents in the aggregate principal amount of $43,600,000 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 Surety and Guaranty Agreement dated May 24, 2007 is ratified
and confirmed and shall continue in full force and effect and shall continue to
cover all obligations of Borrower outstanding from time to time under the Loan
Agreement as amended hereby.

       

      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
by Borrower of all of Agent’s Expenses;

       

      c.           Payment
by Borrower to Agent, for the benefit of Lenders, of a non-refundable waiver fee
in the amount of Ten Thousand Dollars ($10,000); and

       

      d.           Such
other items as Agent may reasonably require.

       

      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.           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.

       

      
        [Signature
Pages to Follow]

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

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

       

      
 

      BORROWER:

      Resource
America, Inc.

      

      

      By:                                                                

      Name:                                                                           

      Title:                                                                           

      

      

      AGENT:

      TD BANK, N.A. (successor by
merger to Commerce Bank, N.A.)

      

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      LENDERS:

      TD BANK, N.A. (successor by
merger to Commerce Bank, N.A.),
as
Lender

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      U.S.
Bank, National Association, as Lender

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      AGREED TO AND
ACCEPTED:

      

      SURETIES:

      

      Apidos
Capital Management, LLC

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      

      Chesterfield
Mortgage Investors, Inc.

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      Coredo
Capital Management, LLC

      
        

        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      

      Ischus
Capital Management, LLC

      

      
        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

      

      

      RAI
Ventures, Inc.

       

      
        By:                                                                

        Name:                                                                           

        Title:                                                                           

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

                                RCP Financial, LLC

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Credit Management, LLC

      

      
        By:                                                                

        
          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Capital Manager, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Capital Investor, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Capital Partners, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      Resource
Credit Partners GP, Inc.

      

      
        By:                                                                

        
          Name:                                                                           

          Title:                                                                           

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

                                                           
Resource Financial Institutions Group,  Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Financial Fund Management, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Housing Investors I, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Housing Investors II, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Housing Investors III, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Housing Investors IV, Inc.

      

       

      
        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

                                          Resource Leasing,
Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Programs, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties VIII, Inc.

      

      
        By:                                                                

        
          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XIV, Inc.

       

      
        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      Resource
Properties XVII, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XXIV, Inc.

      

       

      
        By:                                                                

        Name:                                                                           

        Title:                                                                           

      

       

                                       

                                      Resource Properties
XXV, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

      

      

      Resource
Properties XXVI, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XXX, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XXXI, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

      

      

      Resource
Properties XXXIII, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XL, Inc.

      

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Resource
Properties XLI, Inc.

       

      
        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XLIX, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties 54, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Properties XLVII, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Real Estate, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

           

        

      

      Resource
Real Estate Funding, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Resource
Real Estate Holdings, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Rittenhouse, Inc.

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      Resource
Real Estate Management, LLC

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      RRE1
Duraleigh Member, LLC

      
         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      RRE2
Duraleigh Member, LLC

      

         

        
          By:                                                                

          Name:                                                                           

          Title:                                                                           

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      

       

      

       

      SCHEDULE
“A”

       

      
        	
                 

                Lenders

                 

              	
                Pro
      Rata

                Percentage

              	
                Revolving
      Credit

                Pro Rata Share

              
	
                From
      August 7, 2008 through September 29, 2008:

                 

              
	
                TD
      Bank, N.A. (successor by merger to Commerce Bank, N.A.)

              	
                66.66666666%

              	
                $40,000,000.00

              
	
                 

                U.S.
      Bank, National Association

              	
                 

                33.33333334%

              	
                 

                $20,000,000.00

              
	
                 

                From
      September 30, 2008 through December 30, 2008:

                 

              
	
                TD
      Bank, N.A.

              	
                66.66666666%

              	
                $36,666,667.00

              
	
                 

                U.S.
      Bank, National Association

              	
                 

                33.33333334%

              	
                 

                $18,333,333.00

              
	
                 

                From
      December 31, 2008 through March 30, 2009:

                 

              
	
                TD
      Bank, N.A.

              	
                66.66666666%

              	
                $30,000,000.00

              
	
                 

                U.S.
      Bank, National Association

              	
                 

                33.33333334%

              	
                 

                $15,000,000.00

              
	
                 

                After
      March 30, 2009:

                 

              
	
                TD
      Bank, N.A.

              	
                100%

              	
                $30,000,000.00

              

      

      

      

      

      (Schedule
A to Loan and Security Agreement)exhibit10.htm

Exhibit 10.1

    CONSULTING
SERVICES AGREEMENT

     

    THIS CONSULTING SERVICES
AGREEMENT (Agreement) is made as of May 15, 2008 by and between Regency
GP LLC, a Delaware limited liability company (“Company”), and William E. Joor
III, having an address at 2230 Albans Road, Houston, Texas  77005
(hereinafter called “Consultant”).

     

    RECITALS

     

    As the
former chief legal and administrative officer of the Company, Consultant will
provide management consulting and advisory services with respect to the business
and affairs of the Company.

     

    Company
has requested Consultant to perform these services on an as needed basis,
subject to the terms and conditions in this Agreement.

     

    Consultant
agrees he shall perform such consulting and advisory services as an independent
contractor (and not as an employee) on and subject to the terms and conditions
set forth herein.

     

    NOW, THEREFORE, for and in
consideration of the mutual covenants herein set forth and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     

    ARTICLE
1

     

    NATURE
OF WORK

     

    1.1 Consultant
shall perform any and all such management consulting and advisory services for
the Company and any one or more of its subsidiaries (“Consulting Services”), as
may from time to time be designated by the Board of Directors of the Company or
the Chief Legal Officer of the Company, being the Company’s authorized
representative in this regard.  The Consulting Services shall be
provided under the direction of the Company’s authorized
representative.  Consultant shall perform the Consulting Services with
due diligence at all times acting in the best interests of the Company and its
subsidiaries.  Consultant shall use his best professional judgment and
discretion in determining the manner in which services are performed for the
Company.

     

    1.2 Consultant
shall not have the authority to hire outside contractors for work under this
Agreement without the prior written approval of the Company.

     

    1.3 Company
agrees to provide Consultant with such information, materials and supplies as
are necessary to perform Consultant’s duties at Company’s expense.

     

    1.4 Consultant
shall perform the duties required hereunder in compliance with the Company’s
Code of Business Conduct, a copy of which has been provided to
Consultant.

    
      
        
        

      

      
        Exhibit 10.1 -
Page1

        
          

        

      

      
        
        

      

    

    ARTICLE
2

     

    PAYMENT
TO CONSULTANT

     

    2.1 In full
and complete consideration for Consultant (i) making available the Consulting
Services to the Company, whether or not requested by the Company, and (ii) the
release and waiver provided for in Section 4.1, the Company shall pay to
Consultant the consulting fees specified in Section 2.3.

     

    2.2 Consultant
and the Company agree that the Company shall have the right to call upon up to
16 hours of Consultant’s time each week, exclusive of Saturdays, Sundays and
Company holidays, during the Term of this Agreement.  Company may not
require any Consulting Services to be performed that require more than 16 hours
in any week without the consent of Consultant.

     

    2.3 Subject
to Section 4.1, the Company shall pay Consultant for the Consulting Services,
whether or not requested by the Company, at a rate of $17,900.00 per calendar
month (prorated for any partial month), commencing on May 15,
2008.  Any time expended by Consultant in excess of
16  hours in any week shall be authorized in writing by Company’s
authorized representative and shall be compensated at the rate of $200.00 per
hour.  Any excess time accrued during the Term hereof shall be billed
by Consultant with supporting documentation on a monthly basis.

     

    2.4 The
Company shall reimburse Consultant for all reasonable business expenses that are
incurred in accordance with the Company’s general policies and are approved by
the Company in advance.  Invoices for expenses chargeable to the
Company hereunder shall be supported by appropriate receipts.  Any
expenses not submitted to the Company within sixty (60) days after incurrence
shall not be reimbursed by the Company unless specifically authorized by the
Company’s authorized representative.

     

    2.5 If
Consultant shall timely elect COBRA continuation coverage, the monthly premium
for such COBRA continuation coverage during the Term of this Agreement shall be
the monthly premium charged to an active employee for similar coverage based on
Consultant’s elected coverage tier status.

     

    2.6 Consultant
shall submit invoices not more often than monthly, and, subject to Section 4.1,
the Company shall pay the amount owed within thirty (30) days from the Company’s
receipt of the invoice.  All invoices and billings under this
Agreement shall be submitted to:

     

    Regency
GP LLC

    1700
Pacific Ave., Suite 2900

    Dallas,
Texas  75201

    Attention:  Dan
A. Fleckman, Chief Legal Officer

    Phone:  214-750-1771

    Fax:  214-750-1749

     

    All
payments under this Agreement shall be made to Consultant at the account
currently designated in writing by Consultant for direct payment.

    
      
        
        

      

      
        Exhibit 10.1 -
Page2

        
          

        

      

      
        
        

      

    

     

    2.7 The
Company shall have the right at its sole discretion and upon ten (10) days
written notice to Consultant to audit all charges made by Consultant pursuant to
this Agreement.

     

    2.8 It is
intended that the consulting fees paid hereunder shall constitute earnings from
self-employment income.  The Company will not withhold any amounts
therefrom as US federal income tax withholdings from wages or as employee
contributions under the US Federal Insurance Contributions Act or make employer
contributions thereunder with respect thereto.  Consultant shall be
solely responsible for the reporting, estimation and payment of all taxes, fees
and other contributions on or attributable to the fees and business expense
reimbursements paid hereunder.  Consultant hereby fully indemnifies
the Company against all such taxes and fees and any penalties or interest
thereon.  Attached as Attachment A is a Notice and Verification of
Independent Contractor Status.

     

    2.9 It is
understood and agreed by Consultant that this Agreement is not intended to and
does not create the relationship of employer and employee between the Company
and Consultant.  Consultant is an independent contractor with the
responsibility for, and control over, the details and means of performing the
Consulting Services.  Nothing contained in this Agreement shall be
construed as constituting Consultant as an agent, representative or employee of
the Company, and Consultant shall not represent to the contrary to any person,
unless expressly authorized by the Company’s authorized
agent.  Consultant agrees and acknowledges that he shall not be
entitled to any benefits, perquisites or compensation afforded to employees of
the Company or any partner of the Company, even if it is subsequently held or
determined that Consultant is an employee of the Company rather than an
independent contractor.

     

    ARTICLE
3

     

    TERM

     

    3.1 Subject
to Section 4.1, the term (“Term”) of this Agreement is May 15, 2008 through
November 15, 2008, subject to its earlier termination pursuant to Section
3.2.

     

    3.2 Consultant’s
engagement shall terminate on the occurrence of any of the following
events:

     

    (i) death of
Consultant;

    (ii) written
notice given by the Company of a material violation by Consultant of any
provisions of this Agreement; or

    (iii) on
November 15, 2008.

     

    ARTICLE
4

     

    RELEASE

     

    4.1 Notwithstanding
anything in this Agreement to the contrary, Consultant shall not be entitled to
receive any payments provided under this Agreement unless, (i) he executes the
general release and waiver agreement attached as Attachment B to this Agreement
and (ii) such release has become nonrevocable by Consultant.

    
      
        
        

      

      
        Exhibit 10.1 -
Page3

        
          

        

      

      
        
        

      

    

    ARTICLE
5

     

    CONFIDENTIAL
INFORMATION

     

    5.1 The
parties hereto acknowledge that certain financial, technical and other business
information that is eithernonpublic, confidential or proprietary in nature may
be provided to Consultant in the course of the performance of Consulting
Services.  Any such correspondence, documents, drawings, maps,
reports, analyses, compilations, studies, notes, specifications, computer
printouts, data, or other information relating to or generated by the work
performed pursuant to this Agreement (“Confidential Information”) shall, at all
times, belong to the Company and shall be usable at any time by the Company for
any purpose, without payment or charge.  Consultant covenants that he
will not at any time use or permit others to use said documents or information,
or copies thereof, relating to the work performed under this Agreement for his
or their personal benefit during the term of this Agreement or at any time
following the expiration thereof.

     

    5.2 The
Consulting Services to be performed hereunder by Consultant are of a
confidential nature, and Consultant covenants that any developments resulting
from Consultant’s work for the Company shall be considered the sole proprietary
information of the Company.

     

    5.3 The
Consultant shall not, during the term of this Agreement or following the
expiration thereof, disclose to any third party any Confidential Information,
whether written or oral, (i) that Consultant may acquire or has previously
acquired from the Company or about the Company or (ii) the work performed
pursuant to this Agreement.  Confidential Information shall not
include any information that (i) is required by law to be disclosed (provided,
however, that, prior to such disclosure, Consultant shall give reasonable notice
to the Company of the information required to be disclosed), (ii) has become
part of the public domain other than by acts or omissions of Consultant or (iii)
was or is in the possession of Consultant prior to the date of disclosure by the
Company (whether that date is before or after the date of this
Agreement).

     

    5.4 As of the
date of termination of this Agreement, the Consultant shall remit and surrender
at the Company’s offices, without any cost to the Company, all Confidential
Information, together with all copies thereof, relating to the work that has
been provided to or performed by Consultant and that Consultant has in his
possession or is within his power to acquire possession at that
time.  Consultant shall not retain copies of any Confidential
Information.

     

    5.5 Without
prejudice to the rights and remedies otherwise available to the Company,
Consultant agrees that the Company shall be entitled to equitable relief by way
of injunction or otherwise if Consultant breaches or threatens to breach any of
the provisions of this Agreement, and Consultant hereby waives any requirement
for the Company to post bond (or any other security) to obtain such equitable
relief.

     

    5.6 The terms
and conditions of this Article 5 shall survive the termination of this
Agreement.

    
      
        
        

      

      
        Exhibit 10.1 -
Page4

        
          

        

      

      
        
        

      

    

    ARTICLE
6

     

    NOTICES

     

    6.1 Unless
otherwise specifically provided in this Agreement, any written notice or other
communication given pursuant to this Agreement shall be sufficiently delivered
if delivered personally or mailed or if given by telegram, fax, or similar means
of visual data transmission to the parties at the addresses set forth herein or
at such other address as may be designated from time to time by any party by
written notice to each other; and, if mailed, such notice shall be deemed
received on the fifth business day following the date on which the same is
mailed by registered or certified mail, postage prepaid, and properly
addressed.  If delivered personally or by telegram, fax, or similar
means of visual data transmission, then such notice shall be deemed delivered
when transmitted and such transmission has been confirmed received.

     

    ARTICLE
7

     

    GENERAL

     

    7.1 This
Agreement shall be construed under the laws of the State of Texas, disregarding
any conflicts of laws or principles that would cause the laws of a different
jurisdiction to apply hereto.  If any provision of this Agreement is
illegal or unenforceable under the laws of the State of Texas, such provision
shall be severable and the remainder of this Agreement shall continue in full
force and effect.

     

    7.2 This
Agreement requires personal services of Consultant and, accordingly, is not
assignable in whole or in part by Consultant without the prior written consent
of the Company.

     

    7.3 This
Agreement shall inure to the benefit and be binding upon the parties hereto and
their heirs, descendants, successors and permitted assigns.

     

    7.4 The
headings herein are for convenience of reference only and shall not affect the
meaning or interpretation of this Agreement.

     

    7.5 Time
shall be of the essence hereof.

     

    7.6 This
Agreement contains the entire understanding of the parties hereto pertaining to
the subject matter contained herein and replaces and supersedes all previous and
contemporaneous contracts, agreements and understandings (written or oral),
among the parties hereto pertaining to the matters contained
herein.

     

    7.7 No waiver
by any party or any default by any other party in the performance of any
provision, condition or requirement herein shall be deemed to be a waiver of, or
in any manner release the other party from, performance of any tougher
provision, condition or requirement herein.

     

    7.8 This
Agreement may be amended only by written contract signed by both of the parties
hereto.

     

    7.9 If any
litigation is commenced against any party hereto with respect to the subject
matter contained in this Agreement, the party prevailing in such litigation
shall be entitled, in addition to such other relief as may be granted in such
proceeding, to a reasonable sum from the non-prevailing parties for attorney’s
fees in such litigation, which sum shall be determined in such litigation or in
a separate action for such purpose.

    
      
        
        

      

      
        Exhibit 10.1 -
Page5

        
          

        

      

      
        
        

      

    

    7.10 No
presumption shall operate in favor of or against any party hereto as a result of
any responsibility that any party may have had for drafting this
Agreement.

     

    7.11 The
Company and Consultant agree to the resolution by binding arbitration of all
claims, demands, causes of action, disputes, controversies or other matters in
question (“claims”) arising out of, based upon or related this Agreement,
whether in contract, tort or otherwise and whether provided by statute or common
law, that the Company may have against Consultant or that Consultant may have
against the Company or its parents, subsidiaries and affiliates, and each of the
foregoing entities’ respective officers, directors, employees or agents in their
capacity as such or otherwise; except that this agreement to arbitrate shall not
limit the Company’s right to seek equitable relief, including injunctive relief
and specific performance.  The arbitrator may make an interim award
granting equitable relief to either party and such award may be enforced like a
final award.  The Company and Consultant agree that any arbitration
shall be in accordance with the Federal Arbitration Act (“FAA”) and, to the
extent an issue is not addressed by the FAA, with the then-current National
Rules for the Resolution of Employment Disputes of the American Arbitration
Association (“AAA”) or such other rules of the AAA as applicable to the claims
being arbitrated.  The arbitration shall be conducted by a single
arbitrator, who shall be selected by agreement of the parties or if they do not
agree on an arbitrator within 15 days after either the Company or Consultant has
made a demand for arbitration then the arbitrator will be selected pursuant to
the rules of the AAA.  If a party refuses to honor its obligations
under this Agreement to arbitrate, the other party may compel arbitration in
either federal or state court.   The arbitrator shall apply the
substantive law of the State of Texas (excluding Texas choice-of-law principles
that might call for the application of some other state’s law), or federal law,
or both as applicable to the claims asserted.  The arbitrator shall
have exclusive authority to resolve any dispute relating to the interpretation,
applicability, enforceability or formation of this Agreement to arbitrate,
including any claim that all or part of this Agreement is void or voidable and
any claim that an issue is not subject to arbitration.  The parties
agree that the exclusive venue for arbitration will be in the county in which
the Company’s headquarters are then located, and that any arbitration commenced
in any other venue will be transferred to such county upon the written request
of any party to this Agreement.  If permitted by law, the party in
whose favor the arbitrator renders the award may, in the discretion of the
arbitrator, also be awarded all costs and expenses actually incurred, including
reasonable attorneys’ fees, and costs, but excluding expert witness
fees.  Any and all of the arbitrator’s orders, decisions and awards
may be enforceable in, and judgment upon any award rendered by the arbitrator
may be confirmed and entered by, any federal or state court having
jurisdiction.  All proceedings conducted pursuant to this agreement to
arbitrate, including any order, decision or award of the arbitrator, shall be
kept confidential by all parties except to the extent such disclosure is
required by law, or in a proceeding to enforce the rights
hereunder.  THE PARTIES ACKNOWLEDGE THAT, BY SIGNING THIS AGREEMENT,
THEY ARE WAIVING ANY RIGHT THAT THEY MAY HAVE TO A JURY TRIAL OR A COURT TRIAL
OF ANY CLAIM.

     

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

     

    

     

    Regency
GP LLC

     

    By:                                                              

    Name:  Byron
R.
Kelley                                                                                     Name:  William
E. Joor III

    Title:  Chairman,
President &
CEO                                                                                     Title:  Consultant

    Date:  May
15,
2008                                                                                     Date:  May
15, 2008

    
      
         

      

      
        Exhibit 10.1 -
Page6

        
          

        

      

      
         

      

    

    Attachment
A

     

    Notice
and Verification of Independent Contractor Status

     

    It is
understood and agreed that in providing services to Regency GP LLC and its
affiliates (hereinafter collectively referred to as “Regency”), I am and will
remain at all times an independent contractor and no relationship of employer
and employee is thereby created between Regency and me.

     

    Date:                                                      Signed:                                                      

     

    

     

    Safety
and Health

     

    I
understand and agree that in providing Consulting Services to Regency, I will
read and abide by the provisions of the Regency Code of Business Conduct, a copy
of which l acknowledge receiving.

     

    Date:                                                      Signed:

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