Document:

ffwm-ex101_7.htm

Exhibit 10.1

 

SECOND AMENDMENT TO LOAN AGREEMENT 

 

THIS SECOND AMENDMENT TO LOAN AGREEMENT (this “Amendment”) is entered into as of April 6, 2018, between FIRST FOUNDATION INC., a Delaware corporation (“Borrower”), and NEXBANK SSB (with its participants, successors and assigns, “Lender”).

R E C I T A L S

A.Borrower and Lender are parties to that certain Loan Agreement dated as of February 8, 2017 (as heretofore amended and as it may be further amended, modified, supplemented, restated or amended and restated from time to time, the “Loan Agreement”). Unless otherwise indicated herein, all terms used with their initial letter capitalized are used herein with their meaning as defined in the Loan Agreement and all Section references are to Sections in the Loan Agreement. 

B.On May 18, 2017, Borrower executed an Amended and Restated Promissory Note in the principal amount of $50,000,000 in favor of Lender, evidencing the Loan (the “A&R Note”).

C.Borrower and Lender have agreed to increase the maximum amount of the Loan in an amount equal to $25,000,000, after which the maximum outstanding principal balance of the Loan as of the Effective Date (as hereinafter defined) shall be $75,000,000.

D.Borrower has requested that Lender amend the Loan Agreement as provided below.

E.Borrower has requested that Lender amend the A&R Note as provided in the Second Amended and Restated Promissory Note being delivered in connection herewith (the “Second Amended and Restated Note”).

F.Borrower and Lender desire to amend the Loan Documents, subject to the terms, conditions, and representations set forth herein, as requested by Borrower.

G.Borrower and Lender agree to the other terms and provisions provided below, subject to the terms, conditions, and representations set forth herein.

NOW, THEREFORE, in consideration of these premises and other valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree, as follows:

	
1.
	
Amendments to Loan Agreement. Subject to the satisfaction of the conditions set forth herein, the Loan Agreement is amended as follows:

(a)The following definition in Section 2.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

“Note:  That certain Second Amended and Restated Revolving Promissory Note dated as of the Second Amendment Effective Date in the aggregate principal amount of $75,000,000, or such lesser amount of the Loans as may be outstanding hereunder, made payable to the order of Lender, to evidence the Loans.”

(b)Section 2.1 of the Loan Agreement is hereby amended to add the following definition in the appropriate alphabetical order as follows:

“Second Amendment Effective Date:  April 6, 2018.”

(c)Section 4.1 of the Loan Agreement is hereby amended to delete the phrase “Fifty Million Dollars ($50,000,000)” and replace it with the phrase “Seventy-Five Million Dollars ($75,000,000)”.

 

 

	
2.
	
Conditions Precedent. Notwithstanding any contrary provision, this Amendment shall be effective on the first Business Day upon which all of the following conditions precedent have been satisfied (the “Effective Date”):

(a) Lender shall have received counterparts of this Amendment executed by Borrower, Lender, and each other party set forth on the signature pages hereto, and the original executed Second Amended and Restated Note;

(b)Lender shall have received satisfactory evidence that Borrower has paid the fees and expenses of counsel described in Section 5; 

(c)No Default or Event of Default shall have occurred and be continuing or shall result after giving effect to this Amendment; 

(d)Lender shall have received (i) an officer’s certificate of an authorized officer of Borrower certifying and attaching true and correct copies of its most recent Constituent Documents and (ii) a certified copy, signed by Borrower’s secretary, of a resolution of the board of directors of Borrower authorizing this Amendment and the Second Amended and Restated Note; and

(e)Lender shall have received an opinion from counsel for Borrower covering due authorization, execution and delivery and enforceability of the Amendment and the Second Amended and Restated Note.

(f)Lender shall have received such other instruments and documents incidental and appropriate to the transactions provided for herein as Lender or its counsel may reasonably request, and all such documents shall be in form and substance satisfactory to Lender (it being agreed that execution of this Amendment by Lender shall evidence that the foregoing conditions have been fulfilled).

	
3.
	
Reaffirmation of Loan Documents and Liens. Except as amended and modified hereby, any and all of the terms and provisions of the Loan Agreement and the other Loan Documents shall remain in full force and effect and are hereby in all respects ratified and confirmed by Borrower.  Borrower hereby agrees that, except as expressly provided in this Amendment, the amendments and modifications herein contained shall in no manner affect or impair the liabilities, duties and obligations of Borrower under the Loan Agreement and the other Loan Documents or the Liens securing the payment and performance thereof. Borrower further confirms that the liens and security interests in the Collateral created under the Loan Documents secure, among other indebtedness, Borrower’s obligations under the Loan Documents, and all modifications, amendments, renewals, extensions, and restatements thereof. 

	
4.
	
Representations and Warranties.  As a material inducement for Lender to enter into this Amendment, Borrower hereby represents and warrants to Lender (with the knowledge and intent that Lender is relying upon the same in consenting to this Amendment) that as of the Effective Date, and after giving effect to the transactions contemplated by this Amendment: (a) all representations and warranties in the Loan Agreement and in all other Loan Documents are true and correct in all material respects, as though made on the date hereof, except to the extent that (i) any of them speak to a different specific date; or (ii) the facts or circumstances on which any of them were based have been changed by transactions or events not prohibited by the Loan Documents; (b) no Default or Event of Default exists under the Loan Documents or will exist after giving effect to this Amendment; (c) this Amendment has been duly authorized and approved by all necessary organizational action and requires the consent of no other Person, and is binding and enforceable against Borrower in accordance with its terms; and (d) the execution, delivery and performance of this Amendment in accordance with its terms, does not and will not, by the passage of time, the giving of notice, or otherwise: (i) require any governmental approval, other than such as have been obtained and are in full force and effect, or violate any applicable law relating to Borrower; (ii) conflict with, result in a breach of, or constitute a default under the Constituent Documents of Borrower thereof, or any indenture, agreement, or other instrument to which Borrower is a party or by which it or any of its properties may be bound; or (iii) result in or require the creation 

 

 

		
or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by Borrower.

	
5.
	
Fees, Costs and Expenses.  Borrower agrees to pay promptly the reasonable fees and expenses of counsel to Lender for services rendered in connection with the preparation, negotiation, reproduction, execution, and delivery of this Amendment and all related documents; and

	
6.
	
Miscellaneous.

	
 
	
(a)
	
This Amendment shall be deemed to constitute a Loan Document for all purposes and in all respects.  Each reference in the Loan Agreement or Second Amended and Restated Note to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import, and each reference in the Loan Agreement or in any other Loan Document, or other agreements, documents or other instruments executed and delivered pursuant to the Loan Agreement to the “Loan Agreement”, shall mean and be a reference to the Loan Agreement as amended by this Amendment.

	
 
	
(b)
	
The Loan Documents shall remain unchanged and in full force and effect, except as provided in this Amendment and the Second Amended and Restated Note, and are hereby ratified and confirmed.  The execution, delivery, and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any rights of Lender under any Loan Document, nor constitute a waiver under any of the Loan Documents.

	
 
	
(c)
	
All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

	
 
	
(d)
	
This Amendment may be executed in one or more counterparts and by different parties hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be effective as delivery of manually executed counterparts of this Amendment.

	
 
	
(e)
	
THIS AMENDMENT, THE LOAN AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

	
 
	
(f)
	
The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.

	
 
	
(g)
	
Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

	
 
	
(h)
	
This Amendment shall be construed in accordance with and governed by the laws of the State of Texas without regard to its principles of conflicts of laws.

	
 
	
(i)
	
The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents

 

 

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment in multiple counterparts on the date stated on the signature pages hereto, but effective as of Effective Date.

 

BORROWER:

FIRST FOUNDATION INC.,

a Delaware corporation

By:/s/ John Michel
Name: John Michel
Title: Chief Financial Officer

 

Signature Page to

Second Amendment to Loan Agreement

 

 

LENDER:

NEXBANK SSB

By:/s/ Rhett Miller
Name: Rhett Miller
Title: SVP & Chief Credit Officer

Signature Page to

First Amendment to Loan Agreement

4841-6477-9104 v.1EX-10.1

 Exhibit 10.1 

COOPERATION AGREEMENT 

April 6, 2018 
 THIS
COOPERATION AGREEMENT (this “Agreement”), is made and entered into as of date first set forth above, by and among RAIT Financial Trust, a real estate investment trust formed and existing under the laws of the State of Maryland (the
“Company”), the Libby Frischer Family Partnership (“Investor”) and Charles Frischer (“CF”). 

RECITALS 
 WHEREAS,
the CF beneficially and of record owns certain common shares of beneficial interest, par value $0.03 per share, of the Company (“Common Shares”) and other equity securities of the Company; 

WHEREAS, Investor has expressed an interest in purchasing Common Shares and other equity securities of the Company and in connection therewith
has, together with CF and the Company, entered into that certain letter agreement dated as of March 30, 2018 (the “Letter Agreement”) pursuant to which the Company has exempted Investor from the Ownership Limit (as defined in
the Amended and Declaration of Trust of the Company, as the same has been amended and restated from time to time (the “Declaration of Trust”)) with respect to certain Common Shares that Investor intends to acquire after the date of
the Letter Agreement in an amount which, when added to the Common Shares owned prior to the date of the Letter Agreement by the Investor, CF or by any other entity in which CF has an ownership interest (other than a public entity in which his
beneficial ownership is less than 1%), does not at any time exceed 12.5% of the outstanding Common Shares; and 
 WHEREAS, Investor, CF and
the Company anticipate that Investor and CF may, after the date hereof, seek to enter into an additional agreement, in substantially the same form as the Letter Agreement, pursuant to which Investor would be exempted from the Ownership Limit with
respect to the acquisition of shares of the Company’s preferred stock and/or the Common Shares to a greater extent than contemplated by the Letter Agreement (such additional agreement, as it may be amended from time to time, the
“Additional Agreement”); and 
 WHEREAS, as an inducement to, and in consideration of, the Company entering into the
Additional Agreement, the Company, Investor and CF seek to regulate, among other things, the Investor’s and CF’s acquisition, disposition and voting of Common Shares and other equity securities of the Company. 

NOW, THEREFORE, in consideration of the mutual agreements and covenants set forth herein, and for other good and valuable consideration, the
parties agree as follows: 
 Section 1.    Ownership of Equity Securities. 

(a)    Investor and CF each severally represents and warrants that, as of April 5, 2018, neither
Investor, CF nor any of their respective affiliates or associates (as such terms are defined pursuant to the Securities Exchange Act of 1934, as amended (the 

 
“Exchange Act”)) (collectively, the “Investor Group”) owned, beneficially or of record, any Common Shares or other equity securities (which, as used herein,
includes, without limitation, any shares of preferred stock of the Company and any Derivative Security (as defined in Section 3(c) below)) of the Company (“Equity Securities”), other than the following, all
of which are beneficially owned by CF: 5,920,225 Common Shares, 523,700 shares of the Company’s 7.75% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred”), 229,409 shares of the Company’s 8.375% Series B
Cumulative Redeemable Preferred Stock (“Series B Preferred”) and 160,700 shares of the Company’s 8.875% Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred”) (all such owned securities,
collectively, the “Owned Equity Securities”). 
 (b)    Investor, CF and the Company
each hereby acknowledges and reaffirms their respective representations, warranties, covenants and other agreements set forth in the Letter Agreement. 

(c)    Investor and CF acknowledge and agree that (i) in connection with the acquisition of the Owned
Equity Securities or any disposition prior to April 5, 2018 of Equity Securities, neither Investor nor CF was furnished with any materials or information by the Company, or any of its affiliates or representatives or any other person acting on
its behalf, other than information available in the Company’s filings and submissions with the Securities and Exchange Commission, (ii) in connection with any acquisitions and Transfers (as defined below) of Equity Securities permitted by
this Agreement, the Letter Agreement or the Additional Agreement (each a “Future Transaction” and, collectively, the “Future Transactions”), nothing in this Agreement shall obligate the Company to provide and
neither Investor nor CF will be entitled to receive, and neither Investor nor CF will rely upon, any information, statement, advice (whether accounting, tax, financial, legal or other), representation or warranty made by the Company, or any of its
affiliates or representatives or any other person acting on its behalf other than is then publicly available, and (iii) Investor and CF are able to fend for themselves with respect to the Owned Equity Securities and any Future Transactions,
have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the Owned Equity Securities and any Future Transactions and have the ability to bear the economic risks of their respective
investments and can afford the complete loss of any investments made in the Owned Equity Securities and in Future Transactions. Investor and CF acknowledge and agree that the Company may, now or in the future (including at the time of any Future
Transaction and the execution and delivery of the Additional Agreement and any amendment thereto) be in possession of material non-public information not made available to Investor or CF and Investor and CF
each irrevocably disclaims any right to such information. 
 Section 2.    Disposition of Equity Securities.

 (a)    Subject to the remainder of this Section 2, from the date hereof
until the fourth day following the 2019 Annual Meeting of Shareholders of the Company (the “Restricted Period”), neither Investor nor CF shall, and Investor and CF shall cause each member of the Investor Group not to, without the
prior written consent of the Company: 

  
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 (1)    Transfer (as defined below) more than 370,000 Common
Shares acquired after March 30, 2018 (the “Newly Acquired Common Shares”) on any trading day, 

(2)    Transfer any Newly Acquired Common Shares to any affiliate or associate of any member of the
Investor Group that does not, prior to such Transfer, agree with the Company in writing to be bound by the provisions of this Agreement binding on the Investor Group, 

(3)    Transfer any Newly Acquired Common Shares to any person that would knowingly result in such person,
together with its affiliates and associates, owning, controlling or otherwise having any, beneficial, economic or other ownership interest representing in the aggregate in excess of 3% of the Common Shares outstanding at such time, 

(b)    Any Transfer must be (i) made in accordance with the volume limitations set forth in clause
(e) of Rule 144 of the Securities Act of 1933 or (ii) a marketed block trade to an unaffiliated third party. 

(c)    As used herein, “Transfer” means (i) sell, assign, give, pledge, encumber,
hypothecate, mortgage, exchange or otherwise dispose, (ii) grant to any person any option, right or warrant to purchase or otherwise receive, or (iii) enter into any swap or other agreement that transfers, in whole or in part, any of the
economic consequences or other rights of ownership. 
 Section 3.    Standstill. 

(a)    During any period during which the Investor Group collectively owns beneficially or of record any
Equity Securities of a class or series in excess of the Ownership Limit (without, for the avoidance of doubt, giving effect to any exemption therefrom granted pursuant to the Letter Agreement or any Additional Agreement) applicable to such class or
series (such Equity Securities, “Additional Equity Securities”) (any such period, a “Standstill Period”), neither Investor nor CF shall, and Investor and CF shall cause the Investor Group and any person
acting on behalf of or in concert with the Investor Group to not, directly or indirectly, without the prior written consent of the Company: 

(1)    except as permitted pursuant to the terms of the Additional Agreement, if and as applicable, and the
Letter Agreement, acquire, agree to acquire, propose, seek or offer to acquire, or facilitate the acquisition or ownership of, any Equity Securities, or any direct or indirect right to acquire any Equity Securities, 

(2)    enter, agree to enter, propose, seek or offer to enter into or facilitate any merger, business
combination, recapitalization, restructuring, tender offer, transaction involving a material amount of the Company’s assets or other extraordinary transaction involving the Company or any of its subsidiaries, 

  
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 (3)    initiate, encourage, make, or in any way participate
or engage in, any “solicitation” of “proxies” or “consent solicitation” (as such terms are used in the proxy rules of the Securities and Exchange Commission) to vote, or seek to advise or influence any person with
respect to the voting of, any Common Shares or other Equity Securities (including, for the avoidance of doubt, indirectly by means of communication with the press or the media), 

(4)    nominate or recommend for nomination a person for election at any shareholder meeting at which
directors of the Company’s board of trustees (the “Board”) are to be elected, 

(5)    submit any shareholder proposal for consideration at, or bring any other business before, any
shareholder meeting of the Company, 
 (6)    form, join or in any way participate in a “group”
(within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any Common Shares or other Equity Securities, 

(7)    call, request the calling of, or otherwise seek or assist in the calling of a special meeting of the
shareholders of the Company, 
 (8)    otherwise act, alone or in concert with others, to seek to control
or influence the management, policies, business or corporate structure of the Company, 
 (9)    demand a
copy of the Company’s list of shareholders or its other books and records pursuant to any statutory right, whether under the laws of the State of Maryland or any other jurisdiction, 

(10)    commence, encourage or support any derivative action in the name of the Company, or any class
action against the Company or any of its officers or trustees in order to, directly or indirectly, effect any of the actions expressly prohibited by this Agreement or cause the Company to amend or waive any of the provisions of this Agreement
(provided that, for the avoidance of doubt, this clause shall not prevent Investor or CF from bringing an action to enforce the provisions of this Agreement), 

(11)    disclose any intention, plan or arrangement prohibited by, or inconsistent with, the foregoing, or

 (12)    advise, assist or encourage or enter into any discussions, negotiations, agreements or
arrangements with any other persons in connection with any of the foregoing. 
 (b)    During any
Standstill Period, neither Investor nor CF shall (and Investor and CF shall cause the Investor Group to not), directly or indirectly, without the prior written consent of the Company, (i) make any request directly or indirectly, to amend or
waive any provision of this Section 3 (including this sentence), (ii) take any action 

  
 4 

 
challenging the validity or enforceability of any provision of this Section 3 (including this sentence) or make any public disclosure in respect thereof or
(iii) take any action that would reasonably be expected to require the Company to make a public announcement regarding the possibility of a business combination, merger or other type of transaction described in this
Section 3 with the Company. 
 (c)    As used herein, the term
“Derivative Security” means (i) any subscription, option, conversion right, warrant, phantom stock right or other agreement, security or commitment of any kind obligating the Company or any of its subsidiaries to issue, grant,
deliver or sell, or cause to be issued, granted, delivered or sold, any Common Shares or shares of preferred stock of the Company or any security convertible into, or exchangeable for, any Common Shares or shares of preferred stock of the Company or
(ii) any obligations measured by the price or value of any Common Shares or any shares preferred stock of the Company, in the case of each of the foregoing clauses (i) and (ii), whether any of the foregoing is exercisable immediately, only
after the passage of time or upon the satisfaction of one or more conditions. 
 Section 4.    Voting. 

(a)    During the Standstill Period, Investor and CF shall cause all Additional Equity Securities owned,
beneficially or of record, by the Investor Group to be present for quorum purposes and to be voted in accordance with the recommendation of a majority of the Board with respect to any matter at any meeting of shareholders of the Company for which
proxies are solicited during the Standstill Period. With respect to any matter on which the consent of a member of the Investor Group is solicited by reason of such member’s holding of Additional Equity Securities during the Standstill Period,
Investor and CF shall cause such member of the Investor Group to provide its consent as a holder of such Additional Equity Securities to such matter as recommended by a majority of the Board. 

(b)    If and when requested by the Company, Investor and CF shall, and shall cause any member of the
Investor Group to, promptly execute and deliver to the Company an irrevocable proxy, in customary form, to vote or to give consent with respect to all of the Additional Equity Securities as to which Investor or CF (or such member of the Investor
Group) is entitled to vote, in the manner and with respect to the matters set forth in this Section 4. Such proxy shall terminate upon the earlier of the expiration of the Standstill Period or the termination of this
Section 4. 
 Section 5.    REIT Status. Notwithstanding
Section 2, in any calendar year, promptly following written notice from the Company (provided that such notice is delivered on or prior to June 30th of such calendar year), Investor and/or CF shall, and shall cause the
Investor Group to, Transfer any Equity Securities owned, beneficially or of record, by the Investor Group as necessary in order for the Company to continue to qualify as a real estate investment trust under the Code; provided, however, that
(a) prior to Investor and/or CF becoming obligated to effect such a Transfer, the Company, Investor and CF shall in good faith consult with each other in order to determine whether the Company may continue to qualify as a real estate investment
trust under the Code without such a Transfer having to be effected and (b) 

  
 5 

 
neither the Company nor the Board has granted an exemption (i) from the Ownership Limit with respect to the acquisition of shares of the Company’s preferred stock and/or the Common
Shares to any person other than a member of the Investor Group (or the Excluded Holder (as defined in the Declaration of Trust), to the extent set forth in the Declaration of Trust) that is, at the time the Company provides such written notice, then
in effect and (ii) that does not require such person to Transfer securities as necessary in order for the Company to continue to qualify as a real estate investment trust under the Code. 

Section 6.    Optional Redemption. At any time during 2018 or 2019, the Company may, at its option, redeem, at
the applicable Redemption Price (as defined below) any shares of Series A Preferred, Series B Preferred or Series C Preferred owned of record or beneficially by the Investor Group (other than Owned Equity Securities) by providing written notice to
the Investor. As used herein, “Redemption Price” means, (a) with respect to any shares of Series A Preferred, Series B Preferred or Series C Preferred that the Company exercises its option to redeem in 2018, $16.75 per share,
and, (b) with respect to any shares of Series A Preferred, Series B Preferred or Series C Preferred that the Company exercises its option to redeem in 2019, $20.75 per share. The closing of any such redemption shall occur three
(3) business days following the Investor’s receipt of written notice from the Company. The parties shall (and Investor and CF shall cause the Investor Group to) execute any and all agreements and other instruments as shall be customary or
reasonably necessary to effect any such redemption. 
 Section 7.    Miscellaneous. 

(a)    Governing Law; Submission to Jurisdiction. This Agreement shall be governed by and construed
in accordance with the Laws of the State of Maryland, without regard to the conflict of laws principles thereof that would require the application of the Law of any other jurisdiction. The parties irrevocably and unconditionally submit to the
exclusive jurisdiction of the state and federal courts of Maryland solely and specifically for the purposes of any action or proceeding arising out of or in connection with this Agreement. 

(b)    Waiver. Waiver by a party of a breach hereunder by another party shall not be construed as a
waiver of any subsequent breach of the same or any other provision. No delay or omission by a party in exercising or availing itself of any right, power or privilege hereunder shall preclude the later exercise of any such right, power or privilege
by such party. No waiver shall be effective unless made in writing with specific reference to the relevant provision(s) of this Agreement and signed by a duly authorized representative of the party granting the waiver. 

(c)    Entire Agreement. This Agreement, together with the Letter Agreement and the Additional
Agreement, contains the entire agreement among the parties with respect to the subject matter hereof and thereof and supersedes all prior and contemporaneous arrangements or understandings, whether written or oral, with respect hereto and thereto.

 (d)    Amendments. No provision in this Agreement shall be supplemented, deleted or amended
except in a writing executed by each of the parties hereto. 

  
 6 

 (e)    Severability. If any term or provision of this
Agreement is held invalid, illegal or unenforceable in any respect under any applicable law or as a matter of public policy, the validity, legality and enforceability of all other terms and provisions of this Agreement will not in any way be
affected or impaired. If the final judgment of a court of competent jurisdiction or other governmental authority declares that any term or provision hereof is invalid, illegal or unenforceable, the parties hereto agree that the court making such
determination will have the power to reduce the scope, duration, area or applicability of the term or provision, to delete specific words or phrases, or to replace any invalid, illegal or unenforceable term or provision with a term or provision that
is valid, legal and enforceable and that comes closest to expressing the intention of the invalid, illegal or unenforceable term or provision. 

(f)    Assignment. Neither this Agreement nor any rights or duties of a party hereto may be assigned
by such party, in whole or in part, without the prior written consent of the other party. 

(g)    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns and on any assignee or transferee of the Equity Securities owned beneficially or of record by Investor or CF. 

(h)    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original but which together shall constitute one and the same instrument. 
 (i)    Third Party
Beneficiaries. None of the provisions of this Agreement shall be for the benefit of or enforceable by any third party. No third party shall obtain any right under any provision of this Agreement or shall by reason of any such provision make any
claim in respect of any debt, liability or obligation (or otherwise) against any party hereto. 

(j)    Remedies. The rights, powers and remedies of the parties under this Agreement are cumulative
and not exclusive of any other right, power or remedy which such parties may have under any other agreement or law. No single or partial assertion or exercise of any right, power or remedy of a party hereunder shall preclude any other or further
assertion or exercise thereof. 
 (k)    Specific Performance. The parties hereby acknowledge and
agree that the rights of the parties hereunder are special, unique and of extraordinary character, and that if any party refuses or otherwise fails to act, or to cause its affiliates to act, in accordance with the provisions of this Agreement, such
refusal or failure would result in irreparable injury to the Company, Investor or CF, as the case may be, the exact amount of which would be difficult to ascertain or estimate and the remedies at law for which would not be reasonable or adequate
compensation. Accordingly, if any party refuses or otherwise fails to act, or to cause its affiliates to act, in accordance with the provisions of this Agreement, then, in addition to any other remedy which may be available to any damaged party at
law or in equity, such damaged party will be entitled to seek specific 

  
 7 

 
performance and injunctive relief, without posting bond or other security, and without the necessity of proving actual or threatened damages, which remedy such damaged party will be entitled to
seek in any court of competent jurisdiction. 
 [Signature Pages Follow] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day
and year first written above. 
  

			
	RAIT FINANCIAL TRUST
		
	By:	 	/s/ John J. Reyle
	Name: John J. Reyle
	Title:    Interim Chief Executive Officer, Interim President and General Counsel

  

			
	LIBBY FRISCHER FAMILY PARTNERSHIP
		
	By:	 	/s/ Charles Frischer
	Name: Charles Frischer
	Title: General Partner

  

	
	/s/ Charles Frischer
	Charles Frischer

 [Signature Page to Cooperation Agreement]

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