Document:

EX-10.1

AMENDMENT No. 2

TO

NOTE PURCHASE AND PRIVATE SHELF AGREEMENT

THIS AMENDMENT No. 2 TO NOTE PURCHASE AND PRIVATE SHELF AGREEMENT is dated as of January 18,
2008 (this “Amendment”) is made to the Note Purchase and Private Shelf Agreement dated as of April
13, 2004 (the “Note Agreement”) among CHS Inc. (formerly known as Cenex Harvest States
Cooperatives), a nonstock agricultural cooperative organized under the laws of the State of
Minnesota (the “Company”) and Prudential Investment Management, Inc., (“PIM”), The Prudential
Insurance Company of America, ING Life Insurance and Annuity Company, United of Omaha Life
Insurance Company, Reliastar Life Insurance Company, Mutual of Omaha Insurance Company and each
Prudential Affiliate which becomes party thereto in accordance with the terms of such agreement
(jointly the “Purchasers”). This Amendment shall be effective as of the time determined in
accordance with in Section 6 below.

WHEREAS, the Company has requested that the holders of the Notes agree to certain amendments
to the Note Agreement as set forth below; and

WHEREAS, the Company and holders of the Notes signing this Amendment desire to amend the Note
Agreement as set forth below.

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, including the mutual promises and agreements contained herein, the parties hereto
hereby agree as follows:

1. Definitions. Capitalized terms used herein without definition shall have the definition given
to them in the Note Agreement if defined therein.

2. Amendment to Paragraph 2B(2). Paragraph 2B(2) of the Note Agreement is amended to delete in its
entirety clause (i) thereof and to substitute therefore the following: “(i) )October 27, 2009,
and”.

3. Uncommitted Facility. The Company and PIM expressly agree and acknowledge that, after giving
effect to the issuance of the Series J Notes, as of the date hereof the Available Facility Amount
is $30,000,000. NOTWITHSTANDING THE FOREGOING, THIS AMENDMENT AND THE AGREEMENT HAVE BEEN ENTERED
INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR ANY PRUDENTIAL AFFILIATE SHALL BE
OBLIGED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS
WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS
A COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

4. Company Representations. The Company hereby represents and warrants that, this Amendment has
been duly authorized, executed and delivered by it and that, both before and after giving effect to
this Amendment, (a) each representation and warranty set forth in paragraph 8 of the Note Agreement
is true and correct as of the date of execution and delivery of this letter by the Company with the
same effect as if made on such date (except to the extent such representations and warranties
expressly refer to an earlier date, in which case they were true and correct as of such earlier
date), and (b) no Default or Event of Default has occurred and is continuing under the Note
Agreement.

5. Effective Date. This Amendment shall become effective as of January 18, 2008 provided that it
has been executed by the Company and each of the Purchasers and copies hereof as so executed shall
have been delivered to the holders of the Notes.

6. General Provisions.

	 	6.1	 	The Note Agreement, except as expressly modified herein, shall continue in full
force and effect and shall continue to be binding upon the parties thereto.

	 	6.2	 	The execution, delivery and effectiveness of the Amendment shall not operate as
a waiver of any right, power or remedy of the Purchasers under the Note Agreement, nor
constitute a waiver of any provision of the Note Agreement.

7. Reference to and Effect on Note Agreement. Upon the effectiveness of the amendments in this
Amendment, each reference to the Note Agreement in any other document, instrument or agreement
shall mean and be a reference to the Note Agreement as modified by this Amendment.

8. Governing Law. This Amendment shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of Illinois.

9. Counterparts. This Amendment may be executed in any number of counterparts and by different
parties to this Amendment in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Telefax copies of documents or signature pages bearing original signatures, and executed documents
or signature pages delivered by telefax, shall, in each such instance, be deemed to be, and shall
constitute and be treated as, an original signed document or counterpart, as applicable. The
section titles contained in this Amendment are and shall be without substance, meaning or content
of any kind whatsoever and are not a part of the agreement between the parties hereto.

1

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Note Agreement to
be executed by their duly authorized officers effective as of the Effective Date.

COMPANY:

CHS Inc.

By:      

Name: John Schmitz

Title: Executive Vice President and Chief Financial

Officer

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

By:      

Vice President

THE PRUDENTIAL INSURANCE COMPANY

OF AMERICA

By:     

Vice President

ING LIFE INSURANCE AND ANNUITY COMPANY

By: Prudential Private Placement Investors, L.P.

(as Investment Advisor)

By: Prudential Private Placement Investors, Inc.

(as its General Partner)

By:

Vice President

2

RELIASTAR LIFE INSURANCE COMPANY

By: Prudential Private Placement Investors,

L.P. (as Investment Advisor)

By: Prudential Private Placement Investors, Inc.

(as its General Partner)

By:

Vice President

MUTUAL OF OMAHA INSURANCE COMPANY

	 	 	 
	By:

	 	Prudential Private Placement Investors,

L.P. (as Investment Advisor)
	By:

	 	Prudential Private Placement Investors, Inc.

(as its General Partner)

By:      

Vice President

UNITED OF OMAHA LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	Prudential Private Placement Investors,
	 
	 	L.P. (as Investment Advisor)
	By:
	 	Prudential Private Placement Investors, Inc.
	 
	 	(as its General Partner)
	 
	 	By:  ______________________________
	 
	 	Vice President

CHS INC.

SENIOR SERIES J NOTE

No. J-1

ORIGINAL PRINCIPAL AMOUNT: $25,000,000.00

ORIGINAL ISSUE DATE: February 8, 2008

INTEREST RATE: 5.78%

INTEREST PAYMENT DATES: February 8, May 8, August 8 and November 8 of each year commencing May 8,
2008.

FINAL MATURITY DATE: February 8, 2018

PRINCIPAL PREPAYMENT DATES AND AMOUNTS: February 8, 2014 — $5,000,000.00

February 8, 2015 — $5,000,000.00

February 8, 2016 — $5,000,000.00

February 8, 2017 — $5,000,000.00

Balance due at Maturity

FOR VALUE RECEIVED, the undersigned, CHS Inc. (herein called the “Company”), a nonstock
agricultural cooperative corporation organized and existing under the laws of the State of
Minnesota formerly known as Cenex Harvest States Cooperatives, hereby promises to pay to THE
PRUDENTIAL INSURANCE COMPANY OF AMERICA, or registered assigns, the principal sum of TWENTY-FIVE
MILLION DOLLARS, payable on the Principal Prepayment Dates and in the amounts specified above, and
on the Final Maturity Date specified above in an amount equal to the unpaid balance of the
principal hereof, with interest (computed on the basis of a 360-day year—30-day month) (a) on the
unpaid balance thereof at the Interest Rate per annum specified above, payable on each Interest
Payment Date specified above and on the Final Maturity Date specified above, commencing with the
Interest Payment Date next succeeding the date hereof, until the principal hereof shall have become
due and payable, and (b) on any overdue payment (including any overdue prepayment) of principal,
any overdue payment of Yield-Maintenance Amount and any overdue payment of interest, payable on
each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on
demand), at a rate per annum from time to time equal to the greater of (i) 2% over the Interest
Rate specified above or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase
Bank, National Association from time to time in New York City as its Prime Rate.

Payments of principal, Yield-Maintenance Amount, if any, and interest are to be made at the
main office of JPMorgan Chase Bank, National Association in New York City or at such other place as
the holder hereof shall designate to the Company in writing, in lawful money of the United States
of America.

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to a
Note Purchase and Private Shelf Agreement, dated as of April 13, 2004 (as amended from time to
time, the “Agreement”), between the Company, on the one hand, and Prudential Investment Management,
Inc., the Initial Purchasers named in the Purchaser Schedule attached thereto and each Prudential
Affiliate (as defined in the Agreement) which becomes party thereto, on the other hand, and is
entitled to the benefits thereof.

This Note is subject to optional prepayment, in whole or from time to time in part, on the
terms specified in the Agreement.

This Note is a registered Note and, as provided in the Agreement, upon surrender of this Note
for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer
duly executed, by the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for the then outstanding principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of transfer, the Company
may treat the person in whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company shall not be affected by any notice
to the contrary.

In case an Event of Default shall occur and be continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner and with the effect provided in the
Agreement.

Capitalized terms used and not otherwise defined herein shall have the meanings (if any)
provided in the Agreement.

This Note is intended to be performed in the State of Illinois and shall be construed and
enforced in accordance with the laws and decisions of such State.

CHS INC.

By:

3

Title:CHS INC.

SENIOR SERIES J NOTE

No. J-2

ORIGINAL PRINCIPAL AMOUNT: $25,000,000.00

ORIGINAL ISSUE DATE: February 8, 2008

INTEREST RATE: 5.78%

INTEREST PAYMENT DATES: February 8, May 8, August 8 and November 8 of each year commencing May 8,
2008.

FINAL MATURITY DATE: February 8, 2018

PRINCIPAL PREPAYMENT DATES AND AMOUNTS: February 8, 2014 — $5,000,000.00

February 8, 2015 — $5,000,000.00

February 8, 2016 — $5,000,000.00

February 8, 2017 — $5,000,000.00

Balance due at Maturity

FOR VALUE RECEIVED, the undersigned, CHS Inc. (herein called the “Company”), a nonstock
agricultural cooperative corporation organized and existing under the laws of the State of
Minnesota formerly known as Cenex Harvest States Cooperatives, hereby promises to pay to THE
PRUDENTIAL INSURANCE COMPANY OF AMERICA, or registered assigns, the principal sum of TWENTY-FIVE
MILLION DOLLARS, payable on the Principal Prepayment Dates and in the amounts specified above, and
on the Final Maturity Date specified above in an amount equal to the unpaid balance of the
principal hereof, with interest (computed on the basis of a 360-day year—30-day month) (a) on the
unpaid balance thereof at the Interest Rate per annum specified above, payable on each Interest
Payment Date specified above and on the Final Maturity Date specified above, commencing with the
Interest Payment Date next succeeding the date hereof, until the principal hereof shall have become
due and payable, and (b) on any overdue payment (including any overdue prepayment) of principal,
any overdue payment of Yield Maintenance Amount and any overdue payment of interest, payable on
each Interest Payment Date as aforesaid (or, at the option of the registered holder hereof, on
demand), at a rate per annum from time to time equal to the greater of (i) 2% over the Interest
Rate specified above or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase
Bank, National Association from time to time in New York City as its Prime Rate.

Payments of principal, Yield Maintenance Amount, if any, and interest are to be made at the
main office of JPMorgan Chase Bank, National Association in New York City or at such other place as
the holder hereof shall designate to the Company in writing, in lawful money of the United States
of America.

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to a
Note Purchase and Private Shelf Agreement, dated as of April 13, 2004 (as amended from time to
time, the “Agreement”), between the Company, on the one hand, and Prudential Investment Management,
Inc., the Initial Purchasers named in the Purchaser Schedule attached thereto and each Prudential
Affiliate (as defined in the Agreement) which becomes party thereto, on the other hand, and is
entitled to the benefits thereof.

This Note is subject to optional prepayment, in whole or from time to time in part, on the
terms specified in the Agreement.

This Note is a registered Note and, as provided in the Agreement, upon surrender of this Note
for registration of transfer, duly endorsed, or accompanied by a written instrument of transfer
duly executed, by the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for the then outstanding principal amount will be issued to, and registered in
the name of, the transferee. Prior to due presentment for registration of transfer, the Company
may treat the person in whose name this Note is registered as the owner hereof for the purpose of
receiving payment and for all other purposes, and the Company shall not be affected by any notice
to the contrary.

In case an Event of Default shall occur and be continuing, the principal of this Note may be
declared or otherwise become due and payable in the manner and with the effect provided in the
Agreement.

Capitalized terms used and not otherwise defined herein shall have the meanings (if any)
provided in the Agreement.

This Note is intended to be performed in the State of Illinois and shall be construed and
enforced in accordance with the laws and decisions of such State.

CHS INC.

By:

Title:

4

PURCHASER SCHEDULE

CHS INC.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Aggregate Principal	 	 
	 	 	 	 	 	 	Amount of Notes	 	Note
	 	 	 	 	 	 	to be Purchased	 	Denomination(s)
	 
	 	THE PRUDENTIAL INSURANCE COMPANY OF	 	 	 	 	 	 	 	 
	 
	 	AMERICA	 	$	50,000,000.00	 	 	$	25,000,000.00	 
	 
	 	 	 	 	 	 	 	 	 	$	25,000,000.00	 
	(1)
	 	All payments on account of Notes held by such	 	 	 	 	 	 	 	 
	 
	 	purchaser shall be made by wire transfer of	 	 	 	 	 	 	 	 
	 
	 	immediately available funds for credit to:	 	 	 	 	 	 	 	 
	 
	 	Account Name:  Prudential Managed Portfolio	 	 	 	 	 	 	 	 
	 
	 	Account No.:	 	 	 	 	 	 	 	 
	 
	 	Account Name:  The Prudential - Privest Portfolio	 	 	 	 	 	 	 	 
	 
	 	Account No.:	 	 	 	 	 	 	 	 
	 
	 	JPMorgan Chase Bank	 	 	 	 	 	 	 	 
	 
	 	New York, NY	 	 	 	 	 	 	 	 
	 
	 	ABA No.:  021-000-021	 	 	 	 	 	 	 	 
	 
	 	Each such wire transfer shall set forth the name	 	 	 	 	 	 	 	 
	 
	 	of the Company, a reference to "5.78% Series J	 	 	 	 	 	 	 	 
	 
	 	Senior Notes due February 8, 2018, Security No.	 	 	 	 	 	 	 	 
	 
	 	INV05998, PPN 12542___" and the due date and	 	 	 	 	 	 	 	 
	 
	 	application (as among principal, interest and	 	 	 	 	 	 	 	 
	 
	 	Yield-Maintenance Amount) of the payment being	 	 	 	 	 	 	 	 
	 
	 	made.	 	 	 	 	 	 	 	 
	(2)
	 	Address for all notices relating to payments:	 	 	 	 	 	 	 	 
	 
	 	The Prudential Insurance Company of America	 	 	 	 	 	 	 	 
	 
	 	c/o Investment Operations Group	 	 	 	 	 	 	 	 
	 
	 	Gateway Center Two, 10th Floor	 	 	 	 	 	 	 	 
	 
	 	100 Mulberry Street	 	 	 	 	 	 	 	 
	 
	 	Newark, NJ 07102-4077	 	 	 	 	 	 	 	 
	 
	 	Attention:  Manager, Billings and Collections	 	 	 	 	 	 	 	 
	(3)
	 	Address for all other communications and notices:	 	 	 	 	 	 	 	 
	 
	 	The Prudential Insurance Company of America	 	 	 	 	 	 	 	 
	 
	 	c/o Prudential Capital Group	 	 	 	 	 	 	 	 
	 
	 	Two Prudential Plaza	 	 	 	 	 	 	 	 
	 
	 	180 North Stetson, Suite 5600	 	 	 	 	 	 	 	 
	 
	 	Chicago, IL 60601-6716	 	 	 	 	 	 	 	 
	 
	 	Attention:  Managing Director	 	 	 	 	 	 	 	 

5

	 	 	 
	(4)

	 	Recipient of telephonic prepayment notices:
	
 
	 	Manager, Trade Management Group
	
 
	 	Telephone: (973) 367-3141
	
 
	 	Facsimile: (888) 889-3832
	(5)

	 	Address for Delivery of Notes:
	
 
	 	Send physical security by nationwide overnight delivery service to:
	
 
	 	Prudential Capital Group

Two Prudential Plaza

180 North Stetson, Suite 5600

Chicago, IL 60601-6716

Attention: Wiley S. Adams

Telephone: (312) 540-4204
	(6)

	 	Tax Identification No.:

6EX-10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”), entered into as of February 5, 2008, by
and between RAIT Financial Trust, a Maryland real estate investment trust (the “Company”),
with a principal office in Philadelphia, Pennsylvania, and Kenneth R. Frappier
(“Executive”).

WHEREAS, Executive desires to continue employment with the Company, and the Company desires to
continue to employ Executive upon the terms and conditions set forth herein.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

1. Employment. The Company continues to employ Executive, and Executive hereby accepts such
continued employment and agrees to perform Executive’s duties and responsibilities, in accordance
with the terms, conditions and provisions hereinafter set forth.

1.1 Employment Term. This Agreement shall be effective as of the date of this Agreement and
shall continue until the third anniversary of the date of this Agreement, unless the Agreement is
terminated sooner in accordance with Section 2 or 3 below. In addition, the term of the Agreement
shall automatically renew daily so that it is at all times for a three year period. The period
commencing on the date of this Agreement and ending on the date on which the term of Executive’s
employment under the Agreement shall terminate is hereinafter referred to as the “Employment Term.”

1.2 Duties and Responsibilities. Executive shall serve as the Chief Credit Officer of
the Company. Executive shall perform all duties and accept all responsibilities incident to such
positions as may be reasonably assigned to him by the Board of Trustees of the Company (the
“Board”).

1.3 Extent of Service. Executive agrees to use Executive’s best efforts to carry out
Executive’s duties and responsibilities under Section 1.2 hereof and, consistent with the other
provisions of this Agreement, to devote such business time, attention and energy thereto as is
reasonably necessary to carry out those duties and responsibilities. The foregoing shall not be
construed as preventing Executive from providing service to, or making investments in, other
businesses or enterprises provided there is no conflict with Executive’s ability to satisfy his
obligations to the Company.

1.4 Base Salary. For all of the services rendered by Executive hereunder, the Company
shall continue to pay Executive a base salary (“Base Salary”), at the annual rate of
$325,000, payable in installments at such times as the Company customarily pays its other senior
level executives. Executive’s Base Salary shall be reviewed annually for appropriate increases by
the Board pursuant to the Board’s normal performance review policies for senior level executives
but shall not be decreased.

1.5 Bonus. Executive shall continue to be eligible to receive annual bonuses in such
amounts as the Board may approve in its sole discretion or under the terms of any annual incentive
plan of the Company maintained for other senior level executives.

1.6 Retirement and Welfare Plans and Perquisites. Executive shall continue to be
entitled to participate in all employee retirement and welfare benefit plans and programs or
executive perquisites made available to the Company’s senior level executives as a group or to its
employees generally, as such retirement and welfare plans or perquisites may be in effect from time
to time and subject to the eligibility requirements of the plans. Nothing in this Agreement shall
prevent the Company from amending or terminating any retirement, welfare or other employee benefit
plans or programs from time to time as the Company deems appropriate.

1.7 Reimbursement of Expenses; Vacation. Executive shall continue to be provided with
reimbursement of reasonable expenses related to Executive’s employment by the Company on a basis no
less favorable than that which may be authorized from time to time for senior level executives as a
group, and shall be entitled to vacation and sick leave in accordance with the Company’s vacation,
holiday and other pay for time not worked policies.

1.8 Incentive Compensation. Executive shall continue to be entitled to participate in
any short-term and long-term incentive programs (including without limitation any equity
compensation plans) established by the Company for its senior level executives generally, at levels
commensurate with the benefits provided to other senior executives and with adjustments appropriate
for his position as Chief Credit Officer.

2. Termination. Executive’s employment shall terminate upon the occurrence of any of the
following events:

2.1 Termination Without Cause; Resignation for Good Reason.

(a) The Company may remove Executive at any time without Cause (as defined in Section 4) from
the position in which Executive is employed hereunder upon not less than sixty (60) days’ prior
written notice to Executive; provided, however, that, that in the event that such notice is given,
Executive shall be under no obligation to render any additional services to the Company and shall
be allowed to seek other employment. In addition, Executive may initiate a termination of
employment by resigning under this Section 2.1 for Good Reason (as defined in Section 4).
Executive shall give the Company not less than sixty (60) days’ prior written notice of such
resignation.

(b) Upon any removal or resignation described in Section 2.1(a) above, Executive shall be
entitled to receive only the amount due to Executive under the Company’s then current severance pay
plan for employees, if any. No other payments or benefits shall be due under this Agreement to
Executive, but Executive shall be entitled to any benefits accrued and earned in accordance with
the terms and conditions of any applicable benefit plans and programs of the Company in which
Executive participated prior to his termination of employment.

(c) Notwithstanding the provisions of Section 2.1(b), in the event that Executive executes and
does not revoke a written mutual release upon such removal or resignation, in a form acceptable to
the Company (the “Release ”), of any and all claims against the Company and all related
parties with respect to all matters arising out of Executive’s employment by the Company, or the
termination thereof (other than claims for any entitlements under the terms of this Agreement or
under any plans or programs of the Company under which Executive has accrued and is due a benefit),
and any claims against Executive for actions within the scope of his employment by the Company,
Executive shall be entitled to receive, in lieu of the payment described in Section 2.1(b), the
following:

(i) Executive shall receive a lump sum cash payment equal to one and a half times the sum of
(x) Executive’s Base Salary, as in effect immediately prior to his termination of employment and
(y) the average annual cash bonus Executive received for the three year period immediately prior to
his termination of employment. One-half of the amount described in the preceding sentence shall be
consideration for Executive’s entering into the restrictive covenants described in Section 5 below.
Except as otherwise required to comply with the requirements of Section 18 below, payment shall be
made within sixty (60) days following Executive’s last day of employment with the Company, but not
sooner than after the end of the revocation period for the Release.

(ii) Executive shall receive a lump sum cash payment equal to a pro rata portion of
Executive’s target annual cash bonus for the fiscal year of his termination (or, in the absence of
a target bonus opportunity for the fiscal year, 100% of Executive’s Base Salary) (the “Cash
Bonus ”). The pro rated Cash Bonus shall be determined by multiplying the Cash Bonus by a
fraction, the numerator of which is the number of days during which Executive was employed by the
Company in the fiscal year prior to his termination of employment and the denominator of which is
three hundred sixty-five (365). Except as otherwise required to comply with the requirements of
Section 18 below, payment shall be made within sixty (60) days following Executive’s last day of
employment with the Company, but not sooner than after the end of the revocation period for the
Release.

(iii) For a period of eighteen (18) months following the date of termination, Executive shall
continue to receive the medical coverage in effect at the date of his termination (or generally
comparable coverage) for himself and, where applicable, his spouse and dependents, at the same
premium rate as may be charged from time to time for employees generally, as if Executive had
continued in employment with the Company during such period. The COBRA health care continuation
coverage period under Section 4980B of the Internal Revenue Code of 1986, as amended (the
“Code”), shall run concurrently with the foregoing eighteen (18) month benefit period.

(iv) Executive shall also receive any other amounts earned, accrued and owing but not yet paid
under Section 1 above and under any applicable benefit plans and programs of the Company (other
than severance plans or programs) in which Executive participated prior to his termination of
employment, subject to the terms and conditions of any such plans and programs.

2.2 Voluntary Termination. Executive may voluntarily terminate his employment for any
reason upon thirty (30) days’ prior written notice. In such event, after the effective date of such
termination, except as provided in Section 2.1 with respect to a resignation for Good Reason, no
further payments shall be due under this Agreement, except that Executive shall be entitled to any
benefits accrued and due in accordance with the terms and conditions of any applicable benefit
plans and programs of the Company in which Executive participated prior to his termination of
employment.

2.3 Disability. The Company may terminate Executive’s employment, to the extent
permitted by applicable law, if Executive has been unable to perform the material duties of his
employment for a period of ninety (90) consecutive days in any twelve (12) month period because of
physical or mental injury or illness (“Disability”); provided, however, that the Company
shall continue to pay Executive’s Base Salary until the Company acts to terminate Executive’s
employment. Executive agrees, in the event of a dispute under this Section 2.3 relating to
Executive’s Disability, to submit to a physical examination by a licensed physician jointly
selected by the Board and Executive. If the Company terminates Executive’s employment for
Disability, Executive shall be entitled to receive the following:

(a) Executive shall receive a lump sum cash payment equal to a pro rata portion of Executive’s
Cash Bonus. The pro rated Cash Bonus shall be determined as provided in Section 2.1(c)(ii) above.
Except as otherwise required to comply with the requirements of Section 18 below, payment shall be
made within sixty (60) days following Executive’s last day of employment with the Company.

(b) The Company shall pay to Executive any amounts earned, accrued and owing but not yet paid
under Section 1 above and any other benefits accrued and earned in accordance with the terms and
conditions of any applicable benefit plans and programs of the Company in which Executive
participated prior to his termination of employment.

2.4 Death. If Executive dies while employed by the Company, the Company shall pay to
Executive’s executor, legal representative, administrator or designated beneficiary, as applicable,
(i) any amounts earned, accrued and owing but not yet paid under Section 1 above and any benefits
accrued and earned under the Company’s benefit plans and programs in which Executive participated
prior to his termination of employment, in accordance with the terms and conditions of such plans
and programs, and (ii) a pro rated Cash Bonus for the fiscal year in which Executive’s death
occurs, which pro rated Cash Bonus shall be determined according to Section 2.1(c)(iii) above and,
except as otherwise required to comply with the requirements of Section 18 below, shall be paid
within sixty (60) days following the date of Executive’s death. Otherwise, the Company shall have
no further liability or obligation under this Agreement to Executive’s executors, legal
representatives, administrators, heirs or assigns or any other person claiming under or through
Executive.

2.5 Cause. The Company may terminate Executive’s employment at any time for Cause upon
written notice to Executive, in which event all payments under this Agreement shall cease, except
for Base Salary to the extent already accrued. Executive shall be entitled to any benefits accrued
and earned before his termination in accordance with the terms and conditions of any applicable
benefit plans and programs of the Company in which Executive participated prior to his termination
of employment.

2.6 Notice of Termination. Any termination of Executive’s employment shall be
communicated by a written notice of termination to the other party hereto given in accordance with
Section 10. The notice of termination shall (i) indicate the specific termination provision in this
Agreement relied upon, (ii) briefly summarize the facts and circumstances deemed to provide a basis
for a termination of employment and the applicable provision hereof, and (iii) specify the
termination date in accordance with the requirements of this Agreement.

3. Change of Control.

3.1 Change of Control. Upon a “Change of Control” (as defined below) while Executive
is employed by the Company, all outstanding unvested equity-based awards held by Executive shall
fully vest and shall become immediately exercisable, as applicable.

3.2 Termination for Good Reason Following a Change of Control. If, within the six (6)
month period following a Change of Control, Executive terminates his employment with the Company
for any reason or no reason, such termination shall be deemed a termination by Executive for Good
Reason covered by Section 2.1; provided, however, that Executive shall give the Company not less
than thirty (30) days’ prior written notice of such resignation.

3.3 Parachutes. If any amount payable to or other benefit receivable by Executive
pursuant to this Agreement is deemed to constitute a Parachute Payment (as defined below), alone or
when added to any other amount payable or paid to or other benefit receivable or received by
Executive which is deemed to constitute a Parachute Payment (whether or not under an existing plan,
arrangement or other agreement), and would result in the imposition on Executive of an excise tax
under Section 4999 of the Code, then, in addition to any other benefits to which Executive is
entitled under this Agreement, Executive shall be paid by the Company an amount in cash equal to
the sum of the excise taxes payable by Executive by reason of receiving Parachute Payments plus the
amount necessary to put Executive in the same after-tax position (taking into account any and all
applicable federal, state and local excise, income or other taxes at the highest applicable rates
on such Parachute Payments and on any payments under this Section 3.3 as if no excise taxes had
been imposed with respect to Parachute Payments). For purposes of this Agreement, “Parachute
Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. The calculation
under this Section 3.3 shall be as determined by the Company’s accountants. All amounts paid
pursuant to this Section, shall be paid no later than the end of Executive’s taxable year next
following Executive’s taxable year in which the related taxes are remitted to the taxing authority.

4. Definitions.

4.1 “Cause ” shall mean any of the following grounds for termination of Executive’s
employment:

(a) Executive shall have been convicted of a felony;

(b) Executive intentionally and continually fails substantially to perform his reasonably
assigned material duties to the Company (other than a failure resulting from Executive’s incapacity
due to physical or mental illness), which failure has been materially and demonstrably detrimental
to the Company and has continued for a period of at least 30 days after a written notice of demand
for substantial performance, signed by a duly authorized officer of the Company, has been delivered
to Executive specifying the manner in which Executive has failed substantially to perform; or

(c) Executive breaches Section 5 of this Agreement.

4.2 “Good Reason” shall mean, without Executive’s consent,:

(a) the material reduction of Executive’s title, authority, duties and responsibilities
or the assignment to Executive of duties materially inconsistent with Executive’s
position or positions with the Company;

(b) a reduction in Base Salary of the Executive; or

(c) the Company’s material and willful breach of this Agreement.

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice
of termination on account thereof (specifying a termination date no later than 30 days
from the date of such notice) is given no later than 30 days after the time at which the
event or condition purportedly giving rise to Good Reason first occurs or arises and (ii)
if there exists (without regard to this clause (ii)) an event or condition that
constitutes Good Reason, the Company shall have 15 days from the date notice of such a
termination is given to cure such event or condition and, if the Company does so, such
event or condition shall not constitute Good Reason hereunder.

4.3 “Change of Control” shall mean the occurrence of any of the following:

(a) The acquisition of the beneficial ownership, as defined under the Securities Exchange Act
of 1934, of twenty-five percent (25%) or more of the Company’s voting securities or all or
substantially all of the assets of the Company by a single person or entity or group of affiliated
persons or entities other than by a Related Entity (as defined below); or

(b) The merger, consolidation or combination of the Company with an unaffiliated entity, other
than a Related Entity (as defined below) in which the directors of the Company as applicable
immediately prior to such merger, consolidation or combination constitute less than a majority of
the board of directors of the surviving, new or combined entity unless one-half of the board of
directors of the surviving, new or combined entity, were directors of the Company immediately prior
to such transaction and the Company’s chief executive officer immediately prior to such transaction
continues as the chief executive officer of the surviving, new or combined entity; or

(c) During any period of two consecutive calendar years, individuals who at the beginning of
such period constitute the Board cease for any reason to constitute at least two-thirds thereof,
unless the election or nomination for the election by the Company’s stockholders of each new
director was approved by a vote of at least two-thirds of the directors then still in office who
were directors at the beginning of the period; or

(d) The transfer of all or substantially all of the Company’s assets or all or substantially
all of the assets of its primary subsidiaries to an unaffiliated entity, other than to a Related
Entity (as defined below).

For purposes of the definition of “Change of Control” as set forth herein, the term “Related
Entity” shall mean an entity that is an “affiliate” of Betsy Cohen, or any member of Mrs. Cohen’s
immediate family including her spouse or children, as determined in accordance with Rule 12b-2 of
the General Rules and Regulations under the Securities Exchange Act of 1934, as amended.

5. Non-Competition, Non-Solicitation, Intellectual Property and Confidentiality. Executive
hereby acknowledges that, during and solely as a result of his employment by the Company, Executive
will receive special training and education with respect to the operation of the Company’s business
and other related matters, and access to confidential information and business and professional
contacts. In consideration of Executive’s employment and in consideration of the special and unique
opportunities afforded by the Company to Executive as a result of Executive’s employment, Executive
hereby agrees to abide by the terms of the non-competition, non-solicitation, intellectual property
and confidentiality provisions below. Executive agrees and acknowledges that his employment is
full, adequate and sufficient consideration for the restrictions and obligations set forth in those
provisions.

5.1 Non-Competition and Non-Solicitation. In consideration of the Company’s entering
into this Agreement, Executive agrees that during the Employment Term and without regard to its
termination for any reason which does not constitute a breach of this Agreement by the Company, and
for a period of twelve (12) months thereafter, Executive shall not, unless acting pursuant hereto
or with the prior written consent of the Board:

(a) directly or indirectly, own, manage, operate, finance, join, control or participate in the
ownership, management, operation, financing or control of, or be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise with, or use or permit
Executive’s name to be used in connection with any Competing Business (defined below) within any
state in which the Company currently engages in any lending activity or any state in which the
Company engaged in any lending activity during the thirty-six month period preceding the date the
Executive’s employment terminates; provided, however, that notwithstanding the foregoing, this
provision shall not be construed to prohibit the passive ownership by Executive of not more than
five percent (5%) of the capital stock of any corporation which is engaged in any Competing
Business having a class of securities registered pursuant to the Securities Exchange Act of 1934,
as amended;

(b) solicit or divert to any Competing Business any individual or entity which is an active or
prospective customer of Company or was such an active or prospective customer at any time during
the preceding 12 months; or

(c) employ, attempt to employ, solicit or assist any Competing Business in employing any
employee of the Company whether as an employee or consultant.

The term “Competing Business” shall mean: any entity or enterprise in the business of providing
equity alternatives through lending or other financial devices on residential or commercial
property.

In the event that the provisions of this Section 5.1 should ever be adjudicated to exceed the time,
geographic, product or other limitations permitted by applicable law in any jurisdiction, then such
provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product
or other limitations permitted by applicable law.

5.2 Developments. Executive shall disclose fully, promptly and in writing to the
Company any and all inventions, discoveries, improvements, modifications and other intellectual
property rights, whether patentable or not, which Executive has conceived, made or developed,
solely or jointly with others, while employed by the Company and which (i) relate to the business,
work or activities of the Company or (ii) result from or are suggested by the carrying out of
Executive’s duties hereunder or from or by any information that Executive may receive as an
employee of the Company. Executive hereby assigns, transfers and conveys to the Company all of
Executive’s right, title and interest in and to any and all such inventions, discoveries,
improvements, modifications and other intellectual property rights and agrees to take all such
actions as may be requested by the Company at any time and with respect to any such invention,
discovery, improvement, modification or other intellectual property rights to confirm or evidence
such assignment, transfer and conveyance. Furthermore, at any time and from time to time, upon the
request of the Company, Executive shall execute and deliver to the Company, any and all
instruments, documents and papers, give evidence and do any and all other acts that, in the opinion
of counsel for the Company, are or may be necessary or desirable to document such assignment,
transfer and conveyance or to enable the Company to file and prosecute applications for and to
acquire, maintain and enforce any and all patents, trademark registrations or copyrights under
United States or foreign law with respect to any such inventions, discoveries, improvements,
modifications or other intellectual property rights or to obtain any extension, validation,
reissue, continuance or renewal of any such patent, trademark or copyright. The Company shall be
responsible for the preparation of any such instruments, documents and papers and for the
prosecution of any such proceedings and shall reimburse Executive for all reasonable expenses
incurred by Executive in compliance with the provisions of this Section 5.2.

5.3 Confidentiality.

(a) Executive acknowledges that, by reason of Executive’s employment by the Company, Executive
will have access to confidential information of the Company, including, without limitation,
information and knowledge pertaining to products, inventions, discoveries, improvements,
innovations, designs, ideas, trade secrets, proprietary information, manufacturing, packaging,
advertising, distribution and sales methods, sales and profit figures, customer and client lists
and relationships between the Company and dealers, distributors, sales representatives,
wholesalers, customers, clients, suppliers and others who have business dealings with them
(“Confidential Information”). Executive acknowledges that such Confidential Information is
a valuable and unique asset of the Company and covenants that, both during and after the Employment
Term, Executive will not disclose any Confidential Information to any person (except as Executive’s
duties as an officer of the Company may require or as required by law or in a judicial or
administrative proceeding) without the prior written authorization of the Board. The obligation of
confidentiality imposed by this Section 5.3 shall not apply to information that becomes generally
known to the public through no act of Executive in breach of this Agreement.

(b) Executive acknowledges that all documents, files and other materials received from the
Company during the Employment Term (with the exception of documents relating to Executive’s
compensation or benefits to which Executive is entitled following the Employment Term) are for use
of Executive solely in discharging Executive’s duties and responsibilities hereunder and that
Executive has no claim or right to the continued use or possession of such documents, files or
other materials following termination of Executive’s employment by the Company. Executive agrees
that, upon termination of employment, Executive will not retain any such documents, files or other
materials and will promptly return to the Company any documents, files or other materials in
Executive’s possession or custody.

5.4 Equitable Relief. Executive acknowledges that the restrictions contained in
Sections 5.1, 5.2 and 5.3 hereof are, in view of the nature of the business of the Company,
reasonable and necessary to protect the legitimate interests of the Company, and that any violation
of any provision of those Sections will result in irreparable injury to the Company. Executive also
acknowledges that in the event of any such violation, the Company shall be entitled to preliminary
and permanent injunctive relief, without the necessity of proving actual damages, and to an
equitable accounting of all earnings, profits and other benefits arising from any such violation,
which rights shall be cumulative and in addition to any other rights or remedies to which the
Company may be entitled. Executive agrees that in the event of any such violation, an action may be
commenced for any such preliminary and permanent injunctive relief and other equitable relief in
any federal or state court of competent jurisdiction sitting in Pennsylvania or in any other court
of competent jurisdiction. Executive hereby waives, to the fullest extent permitted by law, any
objection that Executive may now or hereafter have to such jurisdiction or to the laying of the
venue of any such suit, action or proceeding brought in such a court and any claim that such suit,
action or proceeding has been brought in an inconvenient forum. Executive agrees that effective
service of process may be made upon Executive by mail under the notice provisions contained in
Section 10 hereof.

6. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive’s
continuing or future participation in or rights under any benefit, bonus, incentive or other plan
or program provided by the Company and for which Executive may qualify; provided, however, that if
Executive becomes entitled to and receives the payments provided for in Section 2.1(b) or (c) of
this Agreement, Executive hereby waives Executive’s right to receive payments under any severance
plan or similar program applicable to all employees of the Company.

7. Survivorship. The respective rights and obligations of the parties under this Agreement
shall survive any termination of Executive’s employment to the extent necessary to the intended
preservation of such rights and obligations.

8. Mitigation. Executive shall not be required to mitigate the amount of any payment or
benefit provided for in this Agreement by seeking other employment or otherwise and there shall be
no offset against amounts due Executive under this Agreement on account of any remuneration
attributable to any subsequent employment that Executive may obtain.

9. Arbitration; Expenses. In the event of any dispute under the provisions of this
Agreement, other than a dispute in which the primary relief sought is an equitable remedy such as
an injunction, the parties shall be required to have the dispute, controversy or claim settled by
arbitration in Philadelphia, Pennsylvania in accordance with the National Rules for the Resolution
of Employment Disputes then in effect of the American Arbitration Association, before a panel of
three arbitrators, two of whom shall be selected by the Company and Executive, respectively, and
the third of whom shall be selected by the other two arbitrators. Any award entered by the
arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by either
party in accordance with applicable law in any court of competent jurisdiction. This arbitration
provision shall be specifically enforceable. The arbitrators shall have no authority to modify any
provision of this Agreement or to award a remedy for a dispute involving this Agreement other than
a benefit specifically provided under or by virtue of the Agreement. Each party shall be
responsible for its own expenses relating to the conduct of the arbitration (including reasonable
attorneys’ fees and expenses) and shall share the fees of the American Arbitration Association.

10. Notices. All notices and other communications required or permitted under this
Agreement or necessary or convenient in connection herewith shall be in writing and shall be deemed
to have been given when hand delivered or mailed by registered or certified mail, as follows
(provided that notice of change of address shall be deemed given only when received):

If to the Company, to:

RAIT Financial Trust

Cira Centre

2929 Arch Street, 17th Floor

Philadelphia, PA 19104

Attention: Chief Legal Officer

If to Executive, to:

Kenneth R. Frappier

[Address Omitted]

or to such other names or addresses as the Company or Executive, as the case may be, shall
designate by notice to each other person entitled to receive notices in the manner specified in
this Section.

11. Contents of Agreement; Amendment and Assignment.

11.1 This Agreement sets forth the entire understanding between the parties hereto with
respect to the subject matter hereof and cannot be changed, modified, extended or terminated except
upon written amendment approved by the Board and executed on its behalf by a duly authorized
officer and by Executive. This Agreement supersedes the provisions of any employment or other
agreement between Executive and the Company that relate to any matter that is also the subject of
this Agreement and such provisions in such other agreements will be null and void.

11.2 All of the terms and provisions of this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the respective heirs, executors, administrators, legal
representatives, successors and assigns of the parties hereto, except that the duties and
responsibilities of Executive under this Agreement are of a personal nature and shall not be
assignable or delegatable in whole or in part by Executive. The Company shall require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business or assets of the Company, within fifteen (15) days of such
succession, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent as the Company would be required to perform if no such succession had taken place.

12. Severability. If any provision of this Agreement or application thereof to anyone or
under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect any other provision or application of this
Agreement which can be given effect without the invalid or unenforceable provision or application
and shall not invalidate or render unenforceable such provision or application in any other
jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular
circumstances, it shall nevertheless remain in full force and effect in all other circumstances.

13. Remedies Cumulative; No Waiver. No remedy conferred upon a party by this Agreement is
intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative
and shall be in addition to any other remedy given under this Agreement or now or hereafter
existing at law or in equity. No delay or omission by a party in exercising any right, remedy or
power under this Agreement or existing at law or in equity shall be construed as a waiver thereof,
and any such right, remedy or power may be exercised by such party from time to time and as often
as may be deemed expedient or necessary by such party in its sole discretion.

14. Beneficiaries/References. Executive shall be entitled, to the extent permitted under
any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation
or benefit payable under this Agreement following Executive’s death by giving the Company written
notice thereof. In the event of Executive’s death or a judicial determination of Executive’s
incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer
to Executive’s beneficiary, estate or other legal representative.

15. Miscellaneous. All section headings used in this Agreement are for convenience only.
This Agreement may be executed in counterparts, each of which is an original. It shall not be
necessary in making proof of this Agreement or any counterpart hereof to produce or account for any
of the other counterparts.

16. Withholding. All payments under this Agreement shall be made subject to applicable tax
withholding, and the Company shall withhold from any payments under this Agreement all federal,
state and local taxes as the Company is required to withhold pursuant to any law or governmental
rule or regulation. Except as specifically provided otherwise in this Agreement, Executive shall
bear all expense of, and be solely responsible for, all federal, state and local taxes due with
respect to any payment received under this Agreement.

17. Governing Law. This Agreement shall be governed by and interpreted under the laws of
the Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions.

18. Section 409A.

18.1 Interpretation. This Agreement shall be interpreted to avoid any penalty
sanctions under section 409A of the Code. If any payment or benefit cannot be provided or made at
the time specified herein without incurring sanctions under section 409A, then such benefit or
payment shall be provided in full at the earliest time thereafter when such sanctions will not be
imposed. All payments to be made upon a termination of employment under this Agreement may only be
made upon a ‘separation from service’ under section 409A of the Code. For purposes of section 409A
of the Code, each payment made under this Agreement shall be treated as a separate payment and the
right to a series of installment payments shall be treated as the right to a series of separate
payments. In no event may the Executive, directly or indirectly, designate the calendar year of
payment.

18.2 Payment Delay. Notwithstanding any provision to the contrary in this Agreement,
if any of the cash severance payments are deemed as deferred compensation subject to the
requirements of section 409A of the Code and at the time of Executive’s termination of employment
Executive is a ‘specified employee’ (as such term is defined in section 409A(2)(B)(i) of the Code
and its corresponding regulations), as determined by the Company (or any successor thereto), in its
sole discretion in accordance with its ‘specified employee’ determination policy, then all cash
payments to Executive pursuant to this Agreement shall be postponed for a period of six months
following Executive’s ‘separation from service’ with the Company (or any successor thereto). The
postponed amounts shall be paid to Executive in a lump sum within thirty (30) days after the date
that is six (6) months following Executive’s ‘separation from service’ with the Company (or any
successor thereto), and any amounts payable to Executive after the expiration of such six (6) month
period under this Agreement shall continue to be paid to Executive in accordance with the terms of
this Agreement. If Executive dies during such six-month period and prior to the payment of the
postponed cash amounts hereunder, the amounts delayed on account of section 409A of the Code shall
be paid to the personal representative of the Executive’s estate within sixty (60) days after
Executive’s death, and any amounts not delayed shall be paid to the personal representative of the
Executive’s estate in accordance with the terms of this Agreement. If any of the cash payments
payable pursuant to this Agreement are delayed due to the requirements of section 409A of the Code,
there shall be added to such payments interest during the deferral period at an annualized rate of
interest equal to 5%.

18.3 Reimbursements. All reimbursements provided under this Agreement shall be made
or provided in accordance with the requirements of section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or
during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible
for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in
any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before
the last day of the calendar year following the year in which the expense is incurred, and (iv) the
right to reimbursement is not subject to liquidation or exchange for another benefit.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this
Agreement as of the date first above written.

RAIT FINANCIAL TRUST

	 	 	 
	By:

	 	/s/ Jack E. Salmon
	
 
	 	 
	Name:

Title:

	 	Jack E. Salmon

Chief Financial Officer and Treasurer
	EXECUTIVE

	By:

	 	/s/ Kenneth R. Frappier
	
 
	 	 
	
 
	 	Kenneth R. Frappier

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