Document:

ras-ex1015_614.htm

 

Exhibit 10.15 

RAIT FINANCIAL TRUST

2012 INCENTIVE AWARD PLAN

Share Award Grant Agreement

This is a Share Award dated as of April 26, 2017 (the “Date of Grant”) from RAIT Financial Trust, a Maryland real estate investment trust (the “Company”), to [INSERT NAME] (“Participant” and, together with the Company, the “Parties”), under the terms of the RAIT Financial Trust 2012 Incentive Award Plan (the “Plan”).

1.Defined Terms.  Except as set forth below, all capitalized terms shall have their respective meanings set forth in Section 1.02 of the Plan.  

(a)“Disability” shall mean the inability of a Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, as provided in Code section 409A(a)(2)(C) and Treas. Reg. § 1.409A-3(i)(4).  

(b)“Qualified Termination” means (1) termination of the Participant’s employment with the Company due to death or Disability or (2) an involuntary termination of the Participant’s employment with the Company, other than a termination for Cause (as defined in the Participant’s employment agreement).

(c)“Restriction Period” means, with respect to each Common Share which is the subject of this Grant, the period beginning on the Date of Grant and ending on the applicable Vesting Date.

(d) “Retirement” means the Participant’s voluntary separation of employment following satisfaction of the Rule of 70. The Rule of 70 is satisfied upon (1) completion of at least fifteen (15) years of service with the Company or its related entities; (2) attainment of the age of fifty-five (55) and (3) such Participant’s combined age and service equals at least seventy (70). A Participant may separate upon Retirement subject to providing at least six (6) months’ advance notice to the Company and entering into a separate three (3) year non-competition and non-solicitation agreement, if requested by the Company.

(e)“Share Award” means the [____] ([__]) Common Shares which are the subject of this Grant.

(f)“Vesting Date” means the date on which the Participant has a non-forfeitable right to the Common Shares and related dividends subject to this Share Award following the lapse of all restrictions set forth in Section 4.

2.Grant of Share Award.  Subject to the terms and conditions set forth herein, the Company hereby grants to Participant the Share Award, and Participant hereby acknowledges the restrictions on the Share Award.  The Share Award is subject to the terms and conditions of 

 

 

the Plan now in effect and as they may be amended from time to time in accordance with the Plan.  The terms and conditions of the Plan are, and automatically shall be, incorporated herein by reference and made a part hereof.  

3.Restrictions on Share Award and Related Dividends.  Subject to the terms and conditions set forth in the Plan and herein, and notwithstanding any other agreement to which the Participant is a party, during the Restriction Period, Participant shall not be permitted to sell, transfer, pledge, hypothecate, assign or otherwise dispose of the Common Shares and related dividends subject to this Share Award.  The Company or its transfer agent, American Stock Transfer & Trust Company, LLC, or any successor thereto (“Transfer Agent”), shall maintain a record of uncertificated Common Shares and related dividends subject to this Share Award during the Restriction Period.  Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition (each, a “Disposition”) of any Common Shares and related dividends subject to this Share Award in violation of this Share Award shall be void and of no effect, and the Company (or Transfer Agent, as appropriate) shall have the right to disregard any such Disposition on its books and records, to issue (or execute) “stop transfer” instructions and/or take such other action as the Company deems necessary or advisable to enforce the restrictions in this Share Award.

4.Vesting.  Subject to Section 5, the restrictions set forth in Section 3 on the Share Award shall lapse with respect to the following portion of Common Shares and related dividends subject to the Share Award:  (i) one quarter (1/4) on the first anniversary of the Date of Grant; (ii) one quarter (1/4) on the second anniversary of the Date of Grant; (iii) one quarter (1/4) on the third anniversary of the Date of Grant and (iv) one quarter (1/4) on the fourth anniversary of the Date of Grant.  The date on which the restrictions lapse for a particular portion of the Share Award and related dividends shall be the Vesting Date for such portion. If the foregoing vesting schedule would produce fractional Common Shares, the number of Common Shares that are vested shall be rounded down to the nearest whole Restricted Unit; provided, however, that on the final vesting date, the number of Common Shares vesting shall be adjusted to the extent necessary so that one hundred percent (100%) of the Share Award shall have vested.  On or before the thirtieth (30th) day following each Vesting Date, the Company will direct the Transfer Agent to note that the restrictions on the applicable Common Shares subject to this Share Award arising out of this Share Award have lapsed.

Forfeiture of Share Award

(a).  If Participant’s employment or other service relationship with the Company and all Subsidiaries terminates during the Restriction Period for any reason other than a Qualified Termination or Retirement, Participant shall forfeit any remaining unvested Common Shares and related dividends subject to the Share Award as of the date of such termination of employment or other service relationship.  Upon a forfeiture of unvested Common Shares and related dividends subject to the Share Award as provided in this Section 5, the Share Award shall be deemed canceled and such Common Shares and dividends shall be transferred to the Company.  If Participant’s employment or other service relationship with the Company and all Subsidiaries terminates during the Restriction Period as a result of a Qualified Termination or Retirement, the restrictions on the unvested Share Award shall lapse as of the date of such termination of employment or other service relationship.

 

 

 

6.Lapse of Restrictions.  Upon the lapse of the Restriction Period with respect to the applicable Common Shares and related dividends subject to this Share Award, the Participant’s ability to hold, sell, transfer, pledge, assign or otherwise encumber the stock and dividends shall be unrestricted, subject to the tax withholding requirements set forth in Paragraph 10(c). Notwithstanding the foregoing, Participant agrees to be bound by RAIT’s policy regarding the transfer of interests in the Company and acknowledges that such policy may limit the timing and manner in which Participant may sell or otherwise transfer any Common Shares issued by the Company pursuant to this Agreement. The RAIT Insider Trading Policy is attached to this Agreement.

7.Dividends, Voting and Recapitalization.  

(a)Dividends.  Pursuant to Section 5.06 of the Plan, Participant shall be entitled to dividends attributable to Common Shares subject to this Share Award as follows:

(i)Dividends on Vested Common Shares.  With respect to Common Shares subject to this Share Award that have vested under Section 4, if any dividends are paid with respect to the Common Shares, Participant shall have the right to receive such dividends paid on such vested Common Shares in such amount and at such times as received by all other shareholders of the Company.  

 

(ii)Dividends on Unvested Common Shares.  With respect to Common Shares subject to this Share Award that have not vested under Section 4, if any dividends are paid with respect to the Common Shares, the Participant shall receive a credit to the Participant’s Share Award dividend account equal to the value of the cash dividends that would have been distributed if the unvested Common Shares at the time of the payment date of the relevant cash dividend were vested Common Shares.  Within thirty (30) days following the Vesting Date of any unvested Common Shares, a cash payment will be paid to the Participant by the Company equal to the value of the aggregate amount of cash credited to the Participant's Share Award dividend account for the corresponding unvested Common Shares that vested as of the Vesting Date.  No interest shall accrue with respect to any cash amounts credited to the Participant's Share Award dividend account.  If any unvested Common Shares are forfeited for any reason prior to the Vesting Date, the aggregate amount credited to the Participant's Share Award dividend account with respect to such unvested Common Shares shall terminate and the Participant shall not have any rights with respect to any such amounts.

(b)Voting.  Participant shall have the right to vote all Common Shares under this Share Award, regardless of vested status, while such Common Shares remain outstanding and the Participant otherwise retains such voting rights.  

(c)Recapitalization.  In the event of any changes in the capital stock of the Company by reason of any stock dividends, split-ups or combinations of shares, reclassifications, mergers, consolidations, reorganizations or liquidations while any Common Shares comprising the Share Award shall be subject to restrictions on transfer and forfeiture hereunder, any and all new, substituted or additional securities to which Participant is entitled shall be subject immediately to the terms, conditions and restrictions of this Award.

 

 

 

8.Notices.  Any notice to the Company relating to this Share Award shall be addressed to the Company in care of the Chief Financial Officer of the Company at the principal office of the Company, and any notice to the Participant shall be addressed to such Participant at the current address shown on the payroll records of the Company, or to such other address as the Participant may designate to the Company in writing.  Any notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 

9.Applicable Laws.  The Company may from time to time impose any conditions on the Share Award as it deems necessary or advisable to ensure that the Award satisfies the conditions of applicable laws.  

10.Tax Matters.  

(a)The Common Shares and related dividends subject to this Share Award are intended to constitute property that is subject to a substantial risk of forfeiture during the Restriction Period, and subject to federal income tax in accordance with Section 83 of the Code.  Section 83 of the Code generally provides that Participant will recognize compensation income with respect to each installment of the Share Award on such installment's Vesting Date in an amount equal to the then fair market value of the shares for which restrictions have lapsed.  Alternatively, Participant may elect, pursuant to Section 83(b) of the Code, to recognize compensation income for all or any part of the Share Award at the Date of Grant in an amount equal to the fair market value of the Share Award subject to the election on the Date of Grant.  Such election must be made within thirty (30) days of the Date of Grant, and Participant shall immediately notify the Company if such an election is made.  Participant should consult his or her tax advisors to determine whether a Section 83(b) election is appropriate.  If Participant (after consulting with his or her tax advisors) decides to file an 83(b) election, then instructions and an election form are attached hereto as Appendix A.

(b)The grant of this Share Award is intended to be exempt from the requirements of Section 409A of the Code, and, to the extent that further guidance is issued under Section 409A of the Code after the date of this Award, the Company may make any changes to this Award as are necessary to bring this award into compliance with the applicable exemptions under Section 409A of the Code and the Treasury regulations issued thereunder.

(c)The Participant shall be required to pay to the Company, or make other arrangements satisfactory to the Company to provide for the payment of, any federal, state, local or other taxes that the Company is required to withhold with respect to the grant, vesting or payment of the Common Shares and related dividends subject to this Share Award.  The Participant may elect to satisfy any tax withholding obligation of the Company with respect to the Common Shares and related dividends subject to this Share Award by having Common Shares and related dividends subject to this Share Award withheld in accordance with the terms of the Plan. 

 

 

 

11.Share Award Not to Affect Employment.  The Share Award granted hereunder shall not confer upon Participant any right to continue in the employment or other service relationship of the Company or any Subsidiary or affiliate of the Company.

12.Restrictions on Issuance or Transfer of Common Shares.

(a)The obligation of the Company to issue, or remove the restrictions on, Common Shares shall be subject to the condition that, if at any time the Committee shall determine in its discretion that the listing, registration or qualification of the Common Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, such issuance or removal, the Common Shares may not be issued or such restrictions removed, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.  The issuance of Common Shares and the payment of cash to the Participant pursuant to this Agreement are subject to any applicable taxes and other laws or regulations of the United States or of any state having jurisdiction thereof. 

(b)The Participant agrees to be bound by the Company’s policies regarding the transfer of the Common Shares subject to this Share Award and understands that there may be certain times during the year in which the Participant will be prohibited from selling, transferring, pledging, donating, assigning, mortgaging, or encumbering Common Shares. 

13.Miscellaneous.

(a)Binding Effect. Subject to the limitations set forth herein, this Award shall inure to the benefit of and be binding upon the Parties hereto and their respective heirs, legal representatives, successors and assigns.

(b)Entire Agreement; Amendments.  This Award and the Plan constitute the entire agreement between the parties with respect to the Award and cannot be changed or terminated orally.  No modification or waiver of any of the provisions hereof shall be effective unless in writing and signed by the party against whom it is sought to be enforced.

(c)Counterparts.  This Award may be executed in one or more counterparts, all of which taken together shall constitute one and the same agreement.

(d)Governing Law.  This Award shall be governed and construed and the legal relationships of the parties determined in accordance with the internal laws of the State of Maryland.  

(e)Severability.  In the event that any provision in this Award shall be held invalid or unenforceable, such provision shall be severable from, and such invalidity or unenforceability shall not be construed to have any effect on, the remaining provisions of this Award.

(f)Section Headings.  The captions and section headings of this Award are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

 

 

 

IN WITNESS WHEREOF, RAIT has caused its duly authorized officer to execute this Share Award Grant Agreement, and Participant has placed his or her signature hereon, effective as of the Date of Grant.

RAIT FINANCIAL TRUST

 

By:______________________________

Name:

Title:

 

 

ACKNOWLEDGMENT

 

The Participant acknowledges receipt of the Share Award, a copy of which is attached hereto; represents that he or she has read and is familiar with the terms and provisions thereof; hereby accepts this Share Award subject to all of the terms and provisions thereof.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising hereunder. 

Date:
Signature of Participant

Name of Participant

 

 

 

 

 

 

 

 SECTION 83(b) ELECTIONS

 

 

INSTRUCTIONS REGARDING SECTION 83(b) ELECTIONS:

 

	
1.
	
An 83(b) Election is Irrevocable.

	
2.
	
If you choose to make an 83(b) Election, an 83(b) Election Form must be filed with the Internal Revenue Service within 30 days after the date the Share Award is made to you.  No exceptions to this rule are made.

	
3.
	
You must provide a copy of the 83(b) Election Form to the General Counsel or other designated officer of the Company.  This copy should be provided to the Company at the same time that you file your 83(b) Election Form with the Internal Revenue Service.

	
4.
	
In addition to making the filing under Item 2 above, you must attach a copy of your 83(b) Election Form to your tax return for the taxable year in which you received the restricted stock.

	
5.
	
If you make an 83(b) Election and later forfeit the Common Shares, you will not be entitled to a deduction with respect to the gross income you recognized under the 83(b) Election.

 

You are urged to consult your personal tax advisor before making an 83(b) Election to discuss the consequences thereof and consider whether such an election is advisable under the circumstances (and to complete the election form).

 

 

 

APPENDIX A

SECTION 83(b) ELECTION FORM

 

Election Pursuant to Section 83(b) of the Internal Revenue Code

to Include Property in Gross Income in Year of Transfer

 

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the Share Award described below and supplies the following information in accordance with the regulations promulgated thereunder:

1.The name, address, and taxpayer identification number of the undersigned are:

______________________________

______________________________

______________________________

___-__-____

2.Description of the Share Award with respect to which the election is being made:  ______ (__) Common Shares of Beneficial Interest, par value of $0.03, of RAIT Financial Trust awards pursuant to the attached Share Award and the RAIT Financial Trust 2012 Incentive Award Plan.  

3.Date on which the Share Award is made: April 26, 2017.  

4.The taxable year of the taxpayer is 2017.

5.Nature of restrictions to which the Share Award is subject:  The Share Award consists of Common Shares subject to potential forfeiture for (i) failure to remain employed by the Company during the Restriction Period; or (ii) failure to comply with the restrictions and conditions of the Share Award and the Plan.  

6.The fair market value of a Common Share on the Date of Grant (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the property with respect to which this election is being made is:  $3.07, the NYSE per Common Share closing price on the Date of Grant.  The cumulative fair market value of Common Shares subject to this Grant Award is $_________  (2. multiplied by 6.).

7.The taxpayer did not pay any amount for these shares.

8.A copy of this statement was furnished to RAIT Financial Trust, for whom taxpayer rendered the services underlying the transfer of such property.

 

Date: ___________________________________________

Name:ras-ex1016_613.htm

 

Exhibit 10.16

RAIT FINANCIAL TRUST

ANNUAL INCENTIVE COMPENSATION PLAN 

2017 Target Cash Bonus Award Grant Agreement

 

To:  [_____________]

 

Attached as Appendix A hereto is the RAIT Financial Trust (‘RAIT”) 2015 Annual Incentive Compensation Plan (the “Annual Cash Bonus Plan”) as adopted and amended for 2017 pursuant to Article VIII of the RAIT 2012 Incentive Award Plan (the “Plan”).  You have been granted a cash award (the “2017 Target Cash Bonus Award”) under the Annual Cash Bonus Plan.  This Target Cash Bonus Award Grant Agreement (the “Grant Agreement”) sets forth the terms and conditions related to such Target Cash Bonus Award.  The Award is contingent upon your acknowledgement and acceptance of the terms and conditions as set forth in this Grant Agreement and in the Plan.

 

		
	
Grant Date:
	
[_____________]

 

	
Target Cash Bonus Amount:
	
$[_____________]

 

	
Cash Award Opportunity:
	
Subject to the terms and conditions set forth in this Grant Agreement and the Plan, RAIT hereby notifies you that you have the opportunity to receive a Target Cash Bonus Award in an amount calculated with respect to your Target Cash Bonus Amount in the manner set forth in the Annual Cash Bonus Plan.  The actual amount of the Target Cash Bonus Award shall be determined according to the achievement or non-achievement of performance targets (the “Performance Targets”) established by the Committee on [_____________], 2017 and set forth in in the Annual Cash Bonus Plan.  The Participant shall not be entitled to receive any portion of the 2017 Target Cash Bonus Award that does not become payable because of the failure to fully satisfy the Performance Targets. 

 

	
Tax Liability and Payment of Taxes:
	
You acknowledge and agree that any income or other taxes due from you with respect to the Target Cash Bonus Award issued pursuant to this Grant Agreement shall be your responsibility.  Upon payment of the Target Cash Bonus Award, RAIT will withhold a portion of such Target Cash Bonus Award in order to satisfy your tax obligations.

 

	
Delivery:
	
The actual payment of the Target Cash Bonus Award, as adjusted pursuant to this Grant Agreement or the Plan, will be made as soon as practicable following the Committee’s determination of the achievement or non-achievement of the Performance Targets; provided, however, that, in order to comply with certain rules concerning the regulation of deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended, in no event will any such payment be made later than March 15, 2018.

 

 

		
	
Transferability:
	
You may not transfer or assign the Target Cash Bonus Award for any reason, other than under your will or as required by intestate laws.  Any attempted transfer or assignment will be null and void.

 

	
Savings:
	
Any amounts paid pursuant to the Quantitative Bonus Award portion of this Target Cash Bonus Award are intended to be considered “qualified performance-based compensation” under section 162(m) of the Code and Article IX of the Plan   If any provision of this Grant Agreement with respect to such portion is determined to be inconsistent with the requirements of Internal Revenue Code Section 162(m)(4)(C) or such Article, such portion shall be deemed to be a Target Cash Bonus Award made solely under Article VIII of the Plan.

 

	
Clawback:
	
In addition to, and not in limitation of, the forfeiture of the Target Cash Bonus Award (or any portion thereof) as provided in this Grant Agreement or the Plan, RAIT may recover amounts paid to you pursuant to this Target Cash Bonus Award to the extent that the Committee, following an appropriate investigation and consideration of all relevant circumstances, determines that you have engaged in fraud or willful misconduct that caused the requirement for a material accounting restatement of RAIT’s financial statements due to material noncompliance with any financial reporting requirement (excluding any restatement due solely to a change in accounting rules).

 

	
Miscellaneous:
	
As a condition of the granting of this Target Cash Bonus Award, you agree, for yourself and your legal representatives and/or guardians, that this Grant Agreement shall be interpreted by the Committee and that any such interpretation of the terms of this Grant Agreement and any determination made by the Committee pursuant to this Grant Agreement shall be final, binding and conclusive.  This Grant Agreement may be executed in counterparts.  This Grant Agreement and the Target Cash Bonus Award granted hereunder shall be governed by Maryland Law.

 

This Grant Agreement and the Target Cash Bonus Award granted hereunder are granted under and governed by the terms and conditions of the Plan, the provisions of which are incorporated herein by reference.  Additional provisions regarding your Target Cash Bonus Award and definitions of capitalized terms used and not defined in this Grant Agreement can be found in the Plan.  Any inconsistency between this Grant Agreement and the Plan shall be resolved in favor of the Plan. You hereby acknowledge receipt of a copy of the Plan. The invalidity or unenforceability of any provisions of this Grant Agreement shall not affect the validity or enforceability of any other provision of this Grant Agreement, which shall remain in full force and effect.  In the event that any provision of this Grant Agreement or any word, phrase, clause, sentence, or other portion hereof (or omission thereof) should be held to be unenforceable or invalid for any reason, such provision or portion thereof shall be modified or deleted in such a manner so as to make this Grant Agreement as so modified legal and enforceable to the fullest extent permitted under applicable law.

 

BY SIGNING BELOW AND ACCEPTING THIS GRANT AGREEMENT AND THE TARGET CASH BONUS AWARD GRANTED HEREUNDER, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN.  YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

 

_______________________________________________________________

2

 

Authorized Officer[_____________]

 

3

 

Appendix A

	
 
	
 
	
RAIT FINANCIAL TRUST (‘RAIT”)

2015 ANNUAL INCENTIVE COMPENSATION PLAN 

(THE “ANNUAL CASH BONUS PLAN”)

ADOPTED AND AMENDED FOR 2017 PURSUANT TO 

RAIT’S 2012 INCENTIVE AWARD PLAN

	
 
	
 
	
 

The Committee has adopted the Annual Cash Bonus Plan and made the Target Cash Bonus Awards in order to incentivize the recipients of such Target Cash Bonus Awards to produce a high level of operational performance by explicitly linking the majority of their annual bonuses to metrics that the Committee believes are important drivers in the creation of shareholder value, while also rewarding more subjective elements of each participant’s performance through a reduced discretionary component. 

	
 
	
•
	
 
	
Each Target Cash Bonus Award is composed of two components, as described below. The amount of the 2017 Target Cash Bonus Award under the Annual Cash Bonus Plan, if any, that will become payable to the participant shall be determined based on the satisfaction of the following Performance Targets included in each of such components with respect to the related portion of the 2017 Target Cash Bonus Amount.

 

	
 
	
•
	
 
	
“Quantitative Bonus Award” — the Quantitative Bonus Award component of the 2017 Target Cash Bonus Award that may be earned by each Eligible Officer will be equal to 75% of the 2017 Target Cash Bonus Award for each participant, to be determined by RAIT’s performance relative to specified objective performance criteria established by the Compensation Committee, as described on Rider A. The actual Quantitative Bonus Award earned by a participant may range from 0% and 200% of target based on actual performance for the year.

 

	
 
	
•
	
 
	
“Qualitative Bonus Award” — the Qualitative Bonus Award component of the 2017 Target Cash Bonus Award that may be earned by each Eligible Officer will be equal to 25% of the 2017 Target Cash Bonus Award for each participant, to be determined based on the Compensation Committee’s subjective evaluation of such participant’s performance relative to specified individual and/or collaborative criteria established by the Compensation Committee for each Eligible Officer, as described on Rider A. The actual Qualitative Bonus Award earned by a participant may range from 0% and 200% of target based on actual performance for the year.

2017 Target Cash Bonus Award Levels

The target bonus amounts are set by the Compensation Committee for each of RAIT’s Eligible Officers based on 2017 performance.  Your Target Cash Bonus Award levels are as follows:  

 

			
	
2017 Quantitative Target Cash Bonus Amount
	
2017 Qualitative Target Cash Bonus Amount
	
Total 2017 Target Cash Bonus Amount

	
 
	
 
	
 

	
$[_____________]
	
$[_____________]
	
$[_____________]

2017 Quantitative Bonus Award Criteria

The Compensation Committee has established the objective performance metrics set forth on Rider A to be utilized in determining any payout with respect to the Quantitative Bonus Award portion of the 2017 Target Cash Bonus Award.

The actual Quantitative Bonus Award payment realized by an Eligible Officer for 2017 with respect to each applicable metric will depend on RAIT’s achievement of at least a “Threshold” level of performance established by the Compensation Committee with respect to that metric. There will be no Quantitative Bonus Award payable for that metric in the event RAIT achieves less than the Threshold level for the applicable annual performance period. RAIT’s achievement of the Threshold level for a designated metric will result in a payout of 50% of the proportion 

 

of the Quantitative Bonus Award allocated to that metric. The achievement of the Target level for a designated metric will result in a payout of 100% of the proportion of the Quantitative Bonus Award allocated to that metric. The achievement of the Superior level for a designated metric will result in a payout of 150% of the proportion of the Quantitative Bonus Award allocated to that metric. The achievement of the Maximum level for a designated metric will result in a payout of 200% of the proportion of the Quantitative Bonus Award allocated to that metric. If the calculated percentage is between Threshold and Target, between Target and Superior or between Superior and Maximum for an annual performance period, then the earned percentage will be prorated. The number of shares used for any per share metric shall the weighted average number of shares outstanding for the relevant period. 

2017 Qualitative Bonus Award Criteria

The Qualitative Bonus Award component of your 2017 Target Cash Bonus Amount, which will be the remaining 25% of the overall target cash bonus amount, will be based on the Compensation Committee’s subjective evaluation of your performance relative to achieving specified individual criteria established for 2017 which the Compensation Committee has determined are also important elements of your contribution to the creation of overall shareholder value.

2017 Target Cash Bonus Award Payments

 

	
 
	
•
	
 
	
All 2017 Target Cash Bonus Award payments will be made in the year following the completion of the annual performance period to which the 2017 Target Cash Bonus Award payment relates. The actual payment to each Eligible Officer will be made as soon as practicable after final certification of the underlying performance results and approval of such payment by the Compensation Committee; provided, however, that, in order to comply with certain rules concerning the regulation of deferred compensation under the Internal Revenue Code of 1986, as amended, in no event will any such payment be made later than March 15 of such year.

 

	
 
	
•
	
 
	
Should an Eligible Officer terminate employment with RAIT prior to the conclusion of the applicable performance period, their 2017 Target Cash Bonus Award payment will be determined by the terms of such Eligible Officer’s employment agreement. These employment agreements generally provide that if defined conditions are met, in the event of the Eligible Officer’s death, disability, termination without cause, resignation for good reason or a change of control followed by termination in defined circumstances, the Eligible Officer would receive a lump sum cash payment equal to a pro rata portion of such Eligible Officer’s target annual cash bonus for and applicable to the fiscal year of his termination.

 

	
 
	
•
	
 
	
An individual who becomes an Eligible Officer, pursuant to SEC rules, after the beginning of an applicable annual incentive period, may be considered for a pro-rated bonus payment under the Annual Cash Bonus Plan at the discretion of the Compensation Committee.

 

 

5

 

Rider A

2017 Performance Metrics

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