Document:

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                                                                    Exhibit 10.1

          SUMMARY OF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION

I. DIRECTOR COMPENSATION

     Each director of the Company who is not also an employee receives an annual
fee of $35,000, plus reimbursement of expenses incurred in attending meetings.
In addition, members of the Compensation Committee receive an annual fee of
$5,000, members of the Nominating and Corporate Governance Committee receive an
annual fee of $5,000 and members of the Audit Committee receive an annual fee of
$10,000. The Chairman of the Audit Committee also receives an additional annual
fee of $30,000 for his services as Chairman of the Audit Committee.

     Pursuant to the Company's Director Plan, as amended, each person who is
first elected or appointed to serve as a non-employee director of the Company
automatically is granted an option to purchase 15,000 shares of Common Stock at
the fair market value of the Common Stock on the date of the grant and each
person who is re-elected or continues as a non-employee director at each
subsequent annual meeting of shareholders automatically is granted an option to
purchase 3,000 shares of Common Stock at the fair market value of the Common
Stock on the date of grant. All options granted under the Director Plan become
exercisable one year after the date of grant, except that they become
immediately exercisable upon a "change in control" as defined in the Director
Plan, and, unless terminated earlier by the terms of the option, expire ten
years after the date of grant. Upon the exhaustion of shares available under the
Director Plan, the Company will issue the same number of options under the 2004
equity Incentive Plan to non-employee directors as described above.

     Pursuant to the Company's 2004 Equity Incentive Plan, each non-employee
director automatically receives an annual restricted stock award of 3,000 shares
(4,500 shares in the case of the Audit Committee Chairman). Directors who are
first elected or appointed to the Board at any time other than an annual meeting
of shareholders will receive a prorated restricted stock award upon their
initial election or appointment and will be eligible to receive annual grants of
3,000 shares at each annual meeting of shareholders thereafter. Generally,
restricted stock awards are granted to the non-employee directors for no
additional consideration and all restrictions will lapse one year after the date
of grant or earlier upon a change of control. In lieu of restricted stock
awards, the Company may issue restricted stock units or other equity
compensation available under the 2004 Equity Incentive Plan on similar terms.

     Non-employee directors are reimbursed their out-of-pocket costs in
attending Board and committee meetings.

II. EXECUTIVE COMPENSATION

     The Company's executive officers' compensation is comprised of base salary,
annual incentive compensation, long-term incentive compensation in the form of
stock options, restricted stock awards, restricted stock units or other equity
compensation, and various benefits, including those benefits that are generally
available to all full-time employees of the Company, such as participation in
group medical and life insurance plans and a 401(k) plan. Each of the executive
officers is also granted the use of an automobile leased by the Company at
prices ranging from $1,200 to $1,800 per month or receives a monthly cash
allowance for an equivalent amount. In addition, each of the executive officers
participate in the Company's Executive Salary Continuation Plan that provides
beneficiaries of participants with a salary continuation benefit in the event of
the participant's death while employed by the Company. Mr. Barrist's
compensation also includes the personal use by Mr. Barrist of 25 hours per year
of an aircraft partly owned by the Company.

     Each of the executive officers has an employment agreement with the Company
pursuant to which such officer is paid the minimum base annual compensation set
forth in the agreement subject to such increases as may be approved by the
Company's Compensation Committee. At a minimum, such base salaries are to be
adjusted each year in accordance with changes in the Consumer Price Index for
the Philadelphia area.

<PAGE>

     The Company has a management incentive program for its executive officers,
which is not set forth in a written agreement. The Compensation Committee will
establish a bonus pool to be paid to eligible participants based upon the
Company achieving certain performance goals, including, but not limited to,
earnings per share growth, approved by the Compensation Committee. The maximum
amount available for the bonus pool is the total of a percentage of each
eligible participant's base salary, ranging from 75 percent to 100 percent
depending on their position. Each eligible participant's share of this pool will
be determined based on the attainment of their personal performance goals.
Eighty percent of the aggregate amount of bonus to be paid to each participant
will be paid in cash and twenty percent will be paid in restricted stock units
("RSU"). Each restricted stock unit award will vest and the stock will be issued
only upon the occurrence of any of the following prior to the expiration of the
RSU: (i) the second anniversary of the award date, (ii) a change of control of
the Company, as defined in the 2004 Plan or (iii) the death or disability of the
grantee.

     The following table sets forth the current base salaries of the Company's
CEO and each of the executive officers who were named in the Summary
Compensation Table in the Company's Proxy Statement relating to its 2006 Annual
Meeting of Shareholders. The salaries set forth below reflect the CPI adjustment
required under the employment agreements that were made by the Compensation
Committee effective as of January 1, 2006.

NAME AND PRINCIPAL POSITION                         SALARY
------------------------------------------------   --------
Michael J. Barrist                                 $739,253
Chairman of the Board, President and Chief
Executive Officer

Charles F. Burns,                                  $363,650
Executive Vice President,
Business Process Outsourcing

Stephen W. Elliott                                 $311,700
Executive Vice President, Information
Technology and Chief Information Officer

Joshua Gindin, Esq.                                $311,700
Executive Vice President
and General Counsel

Steven Leckerman                                   $415,600
Executive Vice President and Chief Operating
Officer - Accounts Receivable Management - North
America

Steven L. Winokur                                  $415,600
Executive Vice President,
Chief Financial Officer and Chief Operating
Officer - Shared Services<PAGE>

Exhibit 10.1

May 10, 2006

Palisades Collection, L.L.C.
210 Sylvan Avenue
Englewood Cliffs, NJ  07632
Attention: Gary Stern

         Re: Third Amended and Restated Loan and Security Agreement dated as of
             May 11, 2004 (as amended, modified, supplemented or restated from
             time to time, the "Credit Agreement")

Dear Mr. Stern:

         Reference is made to the Credit Agreement dated as of May 11, 2004, as
amended, by and among (a) Asta Funding Acquisition I, LLC, a Delaware limited
liability company, Asta Funding Acquisition II, LLC, a Delaware limited
liability company, Palisades Acquisition I, LLC, a Delaware limited liability
company, Palisades Acquisition II, LLC, a Delaware limited liability company,
Palisades Acquisition IV, LLC, a Delaware limited liability company, Palisades
Collection, L.L.C., a Delaware limited liability company, and Cliffs Portfolio
Acquisition I, LLC, a Delaware limited liability company, (sometimes
collectively referred to herein as "Borrowers" and individually as a
"Borrower"); (b) Asta Funding, Inc., a Delaware corporation, Computer Finance,
LLC, a Delaware limited liability company and AstaFunding.com, LLC, a Delaware
limited liability company, Asta Commercial, LLC, a Delaware limited liability
company (collectively, "Guarantors"); "), (c) Palisades Acquisition V, LLC, a
Delaware limited liability company, Palisades Acquisition VI, LLC, a Delaware
limited liability company, Palisades Acquisition VII, LLC, a Delaware limited
liability company, Palisades Acquisition VIII, LLC, a Delaware limited liability
company, Palisades Acquisition IX, LLC, a Delaware limited liability company,
Palisades Acquisition X, LLC, a Delaware limited liability company, Option Card,
LLC, a Colorado limited liability company, Sylvan Acquisition I, LLC, a Delaware
limited liability company, and Vativ Recovery Solutions, LLC, a Texas limited
liability company (collectively, the "Additional Credit Parties"), as additional
Guarantors, and (d) Israel Discount Bank of New York, a New York banking
corporation (individually, "Agent") for itself, as a lender, and as agent for
the other lenders signatory hereto (collectively referred to herein as
"Lenders") from time to time. Capitalized terms used but not specifically
defined herein shall have the meaning provided for such terms in the Loan
Agreement.

The purpose of this letter is to confirm that the Lenders have reviewed the
request of the Credit Parties for a temporary extension of the Commitment
Termination Date from May 11, 2006 until July 11, 2006 and have agreed to amend
the Credit Agreement as set forth herein. As of the date of this letter, the
definition of Commitment Termination Date, as set forth on Annex A to the Credit
Agreement is amended and restated in its entirety to read as follows:
<PAGE>

                  "Commitment Termination Date" means the earliest of (a) July
         11, 2006, (b) the date of termination of Lenders' obligations to make
         Advances or permit the existing Revolving Loan to remain outstanding
         pursuant to Section 8.2(b), and (c) the date of indefeasible prepayment
         in full by Borrowers of the Revolving Loan, and the permanent reduction
         of all Commitments to zero dollars ($0).

Except as otherwise specifically modified by this letter, all terms, conditions,
covenants, rights, duties, obligations and liabilities of the Borrower Parties
under the Credit Agreement remain in full force and effect and unmodified.

Kindly indicate your agreement with the terms of this letter by signing in the
space provided below. By signing in the space provided below, Guarantors and
Additional Credit Parties hereby confirm and agree that the terms, conditions,
covenants, guaranties, assurances, promises and provisions contained in the
Guaranties and the other Loan Documents to which each is a party remain in full
force and effect without amendment or modification as a result of this Amendment
and that the obligations, liabilities and duties of Guarantors and Additional
Credit Parties remain unimpaired as a result of this Amendment and are in full
force and effect.

This letter will become effective upon execution by each of the parties listed
below and delivery of an executed copy by each such party to Agent. This letter
may be executed in one or more counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same document.
Signature pages may be detached from the counterparts and attached to a single
copy of this letter to physically form one document. Signatures may be exchanged
by facsimile, with the original signature to follow. Each party to this letter
agrees to be bound by its own faxed signature and to accept the faxed signature
of the other parties to this letter.

                                Very truly yours,

                                ISRAEL DISCOUNT BANK OF NEW YORK,
                                as Agent

                                By: /s/ James Jordon
                                    -------------------------------------------
                                Print Name: James Jordon
                                            --------------------------------
                                Print Title: Vice President
                                             ----------------------------------

                                By: /s/ Roy Grossman
                                   --------------------------------------------
                                Print Name: Roy Grossman
                                            -----------------------------------
                                Print Title: Senior Vice President
                                             ----------------------------------

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BORROWERS:                      ASTA FUNDING ACQUISITION I, LLC
---------

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                ASTA FUNDING ACQUISITION II, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES COLLECTION, L.L.C.

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION I, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION II, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION IV, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                CLIFFS PORTFOLIO ACQUISITION I, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

GUARANTORS:                     ASTA FUNDING, INC.
----------

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: President & CEO

                                COMPUTER FINANCE, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                ASTAFUNDING.COM, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                ASTA COMMERCIAL, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

ADDITIONAL
CREDIT PARTIES:                 PALISADES ACQUISITION V, LLC
--------------

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION VI, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION VII, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                PALISADES ACQUISITION VIII, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION IX, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                PALISADES ACQUISITION X, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                OPTION CARD, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                SYLVAN ACQUISITION I, LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

                                VATIV RECOVERY SOLUTIONS LLC

                                By: /s/ Gary Stern
                                    -------------------------------------------
                                Name: Gary Stern
                                Title: Manager

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                ISRAEL DISCOUNT BANK OF NEW YORK,
                                as a Lender

                                By: /s/ James Jordon
                                    -------------------------------------------
                                Print Name: James Jordon
                                            -----------------------------------
                                Print Title: Vice President
                                             ----------------------------------

                                By:/s/ Roy Grossman
                                    -------------------------------------------
                                Print Name: Roy Grossman
                                            -----------------------------------
                                Print Title: Senior Vice President
                                             ----------------------------------

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.

                                By: /s/ Patrick McCarthy
                                    -------------------------------------------
                                Print Name: Patrick McCarthy
                                            -----------------------------------
                                Print Title: Vice President
                                             ----------------------------------

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                HARRIS N.A.

                                By: /s/  Robert G. Bomben
                                    -------------------------------------------
                                Print Name: Robert G. Bomben
                                            -----------------------------------
                                Print Title: Vice President
                                             ----------------------------------

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                BANK LEUMI USA

                                By: /s/ Mary Ellen Bianco
                                    -------------------------------------------
                                Print Name: Mary Ellen Bianco
                                            -----------------------------------
                                Print Title: Vice President
                                             ----------------------------------

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

<PAGE>

                                THE BERKSHIRE BANK

                                By: /s/ Ira A. Mermelstein
                                    -------------------------------------------
                                Print Name: Ira A. Mermelstein
                                            -----------------------------------
                                Print Title: Vice President
                                             ----------------------------------

Signature page to Letter Agreement dated May 10, 2006 - IDB/Asta

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