SEC Contract Filing

Filing Date: 2018-04-09

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d559985dex101.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>COOPERATION AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">April&nbsp;6, 2018 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">THIS
COOPERATION AGREEMENT (this &#147;<U>Agreement</U>&#148;), 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
&#147;<U>Company</U>&#148;), the Libby Frischer Family Partnership (&#147;<U>Investor</U>&#148;) and Charles Frischer (&#147;<U>CF</U>&#148;). </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>RECITALS </U></B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS,
the CF beneficially and of record owns certain common shares of beneficial interest, par value $0.03 per share, of the Company (&#147;<U>Common Shares</U>&#148;) and other equity securities of the Company; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&nbsp;30, 2018 (the &#147;<U>Letter Agreement</U>&#148;) 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 &#147;<U>Declaration of Trust</U>&#148;)) 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 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&#146;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
&#147;<U>Additional Agreement</U>&#148;); and </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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&#146;s and CF&#146;s acquisition, disposition and voting of Common Shares and other equity securities of the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">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: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Section&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;<U>Ownership of Equity Securities</U>. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;Investor and CF each severally represents and warrants that, as of April&nbsp;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 </P>

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&#147;<U>Exchange Act</U>&#148;)) (collectively, the &#147;<U>Investor Group</U>&#148;) 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 <U>Section</U><U></U><U>&nbsp;3(c)</U> below)) of the Company (&#147;<U>Equity Securities</U>&#148;), other than the following, all
of which are beneficially owned by CF: 5,920,225 Common Shares, 523,700 shares of the Company&#146;s 7.75% Series A Cumulative Redeemable Preferred Stock (&#147;<U>Series A Preferred</U>&#148;), 229,409 shares of the Company&#146;s 8.375% Series B
Cumulative Redeemable Preferred Stock (&#147;<U>Series B Preferred</U>&#148;) and 160,700 shares of the Company&#146;s 8.875% Series C Cumulative Redeemable Preferred Stock (the &#147;<U>Series C Preferred</U>&#148;) (all such owned securities,
collectively, the &#147;<U>Owned Equity Securities</U>&#148;). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;Investor, CF and the Company
each hereby ac