Document:

RAIT Investment Executive Pension Plan

 Exhibit 10.2 
 RAIT INVESTMENT TRUST 
 EXECUTIVE PENSION PLAN 
 As Amended and Restated 
 Effective as of
January 1, 2005 

 RAIT INVESTMENT TRUST 
 EXECUTIVE PENSION PLAN 
 As Amended and Restated 
 Effective January 1, 2005 
 SECTION 1 INTRODUCTION 
 The Plan was initially adopted effective as of October 31, 2002 by the Company pursuant to the terms of Executive’s Employment Agreement. In connection with an
amendment to the Employment Agreement, dated as of December 11, 2006, the Company has agreed to amend the Plan to increase the total number of Common Shares that Executive will be entitled to receive as the Common Shares Benefit under the Plan,
and to make certain additional clarifying changes to the Plan. The Company has also determined to amend the Plan to incorporate the applicable provisions of section 409A of the Code and regulations issued thereunder. In addition, the Company and
Executive have mutually agreed to amend the Plan, as permitted by the transition relief set forth in the Proposed Regulations under Section 409A of the Code and Notice 2006-79, to set a specified time on which Executive shall commence to
receive her benefit under the Plan. The Company and Executive have also mutually agreed that the Executive’s Cash Benefit shall be based on Executive’s Base Salary and Annual Bonus for the three calendar years immediately prior to the 2007
calendar year. In order to include the foregoing amendments into the Plan, the Company has determined to amend and restate the Plan, effective as of January 1, 2005, as set forth herein. 
 This Plan is an unfunded, non-qualified “top-hat” plan under ERISA that is maintained by the Company for the purpose of providing deferred compensation
benefits to a select group of management or highly compensated employees. The Plan is intended to be maintained and operated in accordance with the requirements of section 409A of the Code with respect to all benefits payable under the Plan that are
subject to such requirements. The purpose of the Plan is to provide supplemental retirement income to Executive in order to satisfy the Company’s obligations under the Employment Agreement. Such supplemental retirement income is intended to
provide Executive with additional performance incentives, as well as to make up for benefits that cannot be paid to her under the qualified retirement plans sponsored by the Company due to certain restrictive provisions of applicable law.

 Unless the context clearly indicates otherwise, all capitalized terms in this Section 1 shall have the meaning ascribed to them in Section 2
below. 
 SECTION 2 DEFINITIONS 
 2.01 “Actuarial Equivalent” means a benefit that is of equal value to Executive’s Cash Benefit payable in the form of a single life annuity, determined using the 1983 Group Annuity Mortality Table (female) and 7%
interest, with interest only until July 1, 2007. 
  

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 2.02 “Annual Bonus” means Executive’s annual cash bonus earned for a Plan Year.

 2.03 “Average Annual Compensation” means Executive’s average Compensation from the Company for the three complete
Plan Years preceding January 1, 2007. 
 2.04 “Base Salary” means as such term is defined in Executive’s
Employment Agreement, including any increases, for a Plan Year. 
 2.05 “Board” means the Board of Trustees of the Company.

 2.06 “Cash Benefit” means the benefit payable to Executive pursuant to Section 4.01(b) of the Plan. 
 2.07 “Cause” means 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 her 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 thirty (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 her Employment Agreement. 
 2.08 “Change of Control” means the occurrence of any of the
following: 
 (a) Any “person” (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”)) (other than persons who are shareholders on the effective date of the Plan) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a change of ownership resulting from the death of a shareholder, and a
Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the shareholders of the Company immediately prior to the transaction, will beneficially own,
immediately after the transaction, shares entitling such shareholders to more than 50% of all votes to which all shareholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class
of stock to elect directors by a separate class vote); 
  

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 (b) The consummation of (i) a merger or consolidation of the Company with another corporation where
the shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such shareholders to more than 50% of all votes to which all shareholders
of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote), (ii) a sale or other disposition of all or substantially all of
the assets of the Company, or (iii) a liquidation or dissolution of the Company; or 
 (c) The individuals who, as of December 12,
2006, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least two-thirds of the Board; provided, however, that if either the election of any new trustee or the nomination for election of any new
director by the Company’s shareholders was approved by a vote of at least two-thirds of the Incumbent Board prior to such election or nomination, such new director shall be considered as a member of the Incumbent Board; provided further,
however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or
Proxy Contest. 
 For purposes of the preceding definition, “Company” shall include the Company and its parent and/or subsidiaries. 
 2.09 “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time. 
 2.10 “Common Shares” means common shares of beneficial interest, par value $0.01, of the Company. 
 2.11 “Common Shares Benefit” means the Common Shares payable to Executive pursuant to Section 4.01(a) of the Plan. 
 2.12 “Common Shares Benefit Account” means a recordkeeping account established on the books of the Company which is used solely to
calculate the total number of Common Shares that will be distributable to Executive as a Common Shares Benefit under the Plan. 
 2.13
“Common Units” means a phantom right credited to Executive’s Common Shares Benefit Account. Each Common Unit is equivalent in value to one Common Share. 
 2.14 “Company” means RAIT Investment Trust, a Maryland real estate investment trust, and any successor thereto that assumes this Plan.

  

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 2.15 “Compensation” means the sum of Executive’s Base Salary and Annual Bonus for
the applicable Plan Year. 
 2.16 “Disability” means Executive has been unable to perform the material duties of her
employment for a period of 90 consecutive days in any 12-month period because of physical or mental injury or illness. 
 2.17
“Effective Date” means October 31, 2002. The Effective Date of this amendment and restatement of the Plan is January 1, 2005. 
 2.18 “Employment Agreement” means the employment agreement, entered into as of January 23, 2002 and effective as of October 31, 2001, between Executive and the Company, as amended and
restated effective December 11, 2006. 
 2.19 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended. 
 2.20 “Executive” means Betsy Z. Cohen. 
 2.21 “Good Reason” means the occurrence of any of the following events or conditions, unless Executive has expressly consented in
writing thereto or unless the event is remedied by the Company promptly after receipt of notice thereof given by Executive: 
 (a) a reduction
in Executive’s Base Salary; 
 (b) a demotion of Executive; 
 (c) a material reduction of Executive’s duties under her Employment Agreement; 
 (d) the Company’s requiring Executive to be based at a location other than in the Philadelphia, Pennsylvania metropolitan area; 
 (e) the failure of Executive to be elected to the Board; 
 (f) the failure of Executive to be elected by the other Board members as Chairman of the Board; or 
 (g) any
material breach of the Employment Agreement by the Company; 
 provided, however, that, effective December 11, 2006, Executive’s ceasing to be the
Chief Executive Officer of the Company and taking on the new duties and responsibilities as provided in Section 1.2 of her Employment Agreement as a result of the consummation of the transaction pursuant to which Taberna Realty Finance Trust
becomes a wholly-owned subsidiary of the Company shall not constitute Good Reason. 
 2.22 “Identification Date” means
December 31. 
  

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 2.23 “Key Employee” means Executive is one of the following (i) an officer of the
Company having annual compensation greater than $135,000 (adjusted for inflation pursuant to section 416(i) of the Code and limited to the top 50 employees of the Company), (ii) a 5% owner of the Company, or (iii) a 1% owner of the Company
having annual compensation from the Company of more than $150,000, subject to such other determinations made by the Plan Administrator, in its sole discretion, in a manner consistent with the regulations issued under section 409A of the Code.

 2.24 “Normal Retirement Date” means the first day of the month next following Executive’s attainment of age 65.

 2.25 “Plan” means the RAIT Investment Trust Executive Pension Plan, as set forth herein, and as the same may from time to
time hereafter be amended. 
 2.26 “Plan Administrator” means the Chief Financial Officer of the Company. The Board may
appoint another individual or individuals to perform some or all acts that the Administrator is authorized to perform. 
 2.27 “Plan
Year” means the calendar year. 
 2.28 “Primary Social Security Benefit” means the estimated annual Primary Old Age
Insurance Amount that Executive could expect to receive at age 65 under the Federal Social Security Act in effect on December 31, 2006, calculated assuming Executive’s Compensation continues unchanged from the date of determination until
Normal Retirement Date. 
 2.29 “Separation from Service” means Executive’s separation from service with the Company
within the meaning of section 409A of the Code and the regulations issued thereunder. 
 2.30 “Specified Employee” means
Executive is, at any time during the 12-month period ending on an Identification Date, a Key Employee. If Executive is deemed a Key Employee as of an Identification Date, Executive is treated as a “Specified Employee” for the 12 month
period beginning on the fourth month following the end of the 12 month period following the Identification Date. Notwithstanding the foregoing, Executive shall not be a Specified Employee if the Company (or any successor) does not have any stock
which is publicly traded on an established securities market or otherwise. 
 2.31 “Spouse” means Executive’s husband.

 2.32 “Year of Service” means a 12-month period beginning on the Effective Date or any anniversary thereof during
which Executive is continuously employed by the Company.  
 SECTION 3 PARTICIPATION 
 3.01 Participation. Executive’s participation in the Plan commenced on the Effective Date. 
  

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 SECTION 4 BENEFIT CALCULATION AND VESTING OF BENEFITS 
 4.01 Benefit Calculation. Executive’s benefit shall be determined as follows: 
 (a) Common Shares Benefit. Executive’s Common Shares Benefit shall equal the sum of (i) effective October 31, 2002, 58,912 Common
Units; (ii) effective December 11, 2006, 69,422 Common Units; and (iii) such additional Common Units that result from the crediting of additional Common Units to Executive’s Common Shares Benefit Account as a result of any
dividends paid on the Company’s Common Shares, as if the Common Units credited to Executive’s Common Shares Benefit Account, after the date such Common Units are credited to such account pursuant to this subsection (a), were Common Shares;
provided, however, that, to the extent any Common Units remain credited to Executive’s Common Shares Benefit Account after July 1, 2007, with respect to any dividends declared and paid on the Common Shares after July 1, 2007, such
dividends shall not be accrued as additional Common Units under the Plan, but instead shall be paid to Executive as dividend equivalents as provided in Section 5.02(c). Common Units credited to Executive’s Common Shares Benefit Account
shall be equitably adjusted in the event of any stock split, stock dividend, reverse stock split, stock combination or other similar event occurring after the date such Common Units are credited to Executive’s Common Shares Benefit Account.

 4.02 Cash Benefit. Executive’s Cash Benefit shall equal 50% of the amount determined by subtracting the Primary Social
Security Benefit from 60% of her Average Annual Compensation, increased by 1/2% for each month between October 29, 2006 and the date on which the Cash Benefit commences to be paid to Executive. 
 4.02 Vesting. 
 (a) Vesting
Schedule. Except as otherwise provided in Section 4.02(b) or 4.02(c), Executive shall become vested in her Common Shares Benefit and her Cash Benefit in accordance with the following schedule: 
  

			
	 Completed Years of Service
	  	Vested Percentage
	 Less than 1 Year of Service
	  	0%
	 1 Year of Service
	  	25%
	 2 Years of Service
	  	50%
	 3 Years of Service
	  	75%
	 4 or more Years of Service
	  	100%

 (b) Additional Vesting Events. Notwithstanding the foregoing, Executive shall be 100%
vested in her Common Shares Benefit and her Cash Benefit upon the earlier to occur of (i) the effective date of a Change of Control, (ii) termination of Executive’s employment by the Company without Cause, (iii) the date
Executive terminates employment with the Company for Good Reason, (iv) Executive’s death, or (v) the date Executive incurs a Disability. 
  

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 (c) Forfeiture. 
 (1) Notwithstanding the foregoing provisions of this Section, if the Company terminates Executive’s employment for Cause, Executive shall not receive any benefits from the Plan and all benefit accrued by
Executive under Section 4.01 of the Plan shall be immediately forfeited. 
 (2) Except as provided in Section 4.02(b), if
Executive’s employment with the Company terminates before Executive has completed four Years of Service, the nonvested portion of Executive’s Common Shares Benefit and Cash Benefit shall be immediately forfeited. 
 SECTION 5 DISTRIBUTION 
 5.01 Time of
Distribution. 
 (a) Except as otherwise provided in Section 5.03, Executive shall receive a distribution of her Common Shares
Benefit on July 1, 2007; provided, however, that if Executive has a Separation from Service prior to January 1, 2007, Executive shall receive a distribution of her Common Shares Benefit on her Separation from Service. If the distribution
of Executive’s Common Share Benefit is on account of her Separation from Service, the distribution of such benefit shall be as follows (i) if she is a Specified Employee at the time of her Separation from Service, as soon as
administratively practicable following the first day of the seventh month following her Separation from Service with the Company or (ii) if she is not a Specified Employee at the time of her Separation from Service, as soon as administratively
practicable following her Separation from Service with the Company. 
 (b) Except as otherwise provided in Section 5.03, Executive shall
receive a distribution of her Cash Benefit on July 1, 2007; provided, however, that if Executive has a Separation from Service prior to January 1, 2007, Executive shall receive a distribution of her Cash Benefit on her Separation from
Service. If the distribution of Executive’s Cash Benefit is on account of her Separation from Service, the distribution of such benefit shall be as follows (i) if she is a Specified Employee at the time of her Separation from Service, as
soon as administratively practicable following the first day of the seventh month following her Separation from Service with the Company or (ii) if she is not a Specified Employee at the time of her Separation from Service, as soon as
administratively practicable following her Separation from Service with the Company. 
 5.02 Normal Form of Distribution. 

(a) Common Shares Benefit. Executive’s Common Shares Benefit shall be distributed in Common Shares to Executive in a single lump sum
distribution, with the aggregate number of Common Units that are distributable to Executive on the applicable distribution date converted to an equivalent number of Common Shares; provided, however, that, subject to the requirements of
Section 5.03, Executive may elect to receive the Common Shares Benefit over an installment period, not to exceed twenty years. Such distributable Common Shares shall be distributed, in a single payment, as soon as administratively practicable
on or after the date distribution for such installment is to commence under Section 5.01. Cash will be paid out in lieu of fractional Common Shares. 
  

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 (b) Cash Benefit. Executive’s Cash Benefit shall be distributed in cash to Executive in the
form of a 50% joint and survivor annuity, with the survivor annuity payable to Executive’s Spouse; provided, however, that, subject to the requirements of Section 5.03, Executive may elect to receive the Cash Benefit in the form of a
single life annuity or an Actuarial Equivalent single lump sum payment. Payment of the Cash Benefit shall commence as soon as administratively practicable on or after the date distribution is to commence under Section 5.01. 
 (c) Dividend Equivalents. Effective after July 1, 2007, until the Common Units credited to Executive’s Common Share Benefit Account are
distributed to Executive as Common Shares, if any dividends are declared and paid with respect to the Company’s Common Shares after July 1, 2007, a cash payment will be paid to Executive by the Company equal to the value of the dividend
that would have been distributed if the Common Units credited to Executive’s Common Share Benefit Account at the time of the declaration of the dividend were Common Shares. Dividend equivalents shall be paid to Executive at the same time as
dividends are paid to the Company’s shareholders. 
 5.03 Changes to Normal Form of Distribution. 
 (a) Common Shares Benefit. Executive may change the time of the distribution of her Common Units as provided in Section 5.02 or the form in
which her Common Shares Benefit is distributed by filing an election form with the Plan Administrator (i) no later than December 31, 2005, with respect to amounts that would commence to be distributed in calendar year 2006; (ii) no
later than December 31, 2006, with respect to amounts that would commence to be distributed in calendar year 2007; and (iii) no later than December 31, 2007, with respect to amounts that would commence to be distributed after calendar
year 2007; provided, however, that after December 31, 2007, Executive may change the time or the form of her Common Shares Benefit if she makes such election to change at least 12 months prior to the date on which distribution would otherwise
commence to be made under the Plan and the commencement of the distribution is deferred until a date that is no earlier than the fifth anniversary after the date such amounts would otherwise have been paid under the Plan. The alternative form of the
Common Shares Benefit may be in installments no greater than over a twenty year period. No other forms of benefit are available. 
 (b)
Cash Benefit. Executive may change the time or form in which her Cash Benefit is distributed by filing an election form with the Plan Administrator (i) no later than December 31, 2005, with respect to amounts that would commence to
be distributed in calendar year 2006; (ii) no later than December 31, 2006, with respect to amounts that would commence to be distributed in calendar year 2007; and (iii) no later than December 31, 2007, with respect to amounts
that would commence to be distributed after calendar year 2007; provided, however, that after December 31, 2007, Executive may change the time or the form of her Cash Benefit if she makes such election to change at least 12 months prior to the
date on which distribution would otherwise commence to 
  

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 be made under the Plan and the commencement of the distribution is deferred until a date that is no earlier than the
fifth anniversary after the date such amounts would otherwise have been paid under the Plan. The alternative forms of the Cash Benefit that may be elected is either an Actuarial Equivalent single life annuity or Actuarial Equivalent lump sum cash
payment. No other forms of benefit are available. 
 SECTION 6.01 DEATH BENEFITS 
 6.01 Death Benefit. 
 (a)
Post-Retirement Death Benefit. In the event Executive dies after the commencement of benefits under the Plan, death benefits, if any, shall be paid in accordance with the form in which distribution was being made to Executive at the time of
her death. 
 (b) Pre-Retirement Death Benefit. In the event Executive dies prior to the commencement of benefits, Executive’s
Spouse shall be eligible to receive as soon as administratively practicable following the date of Executive’s death (i) a single distribution of 50% of Executive’s Common Shares Benefit and (ii) a single sum cash payment equal to
the Actuarial Equivalent lump sum of 50% of Executive’s Cash Benefit. 
 (c) No Other Death Benefits. If Executive has no Spouse
and dies before the date as of which her benefit is paid or commenced, no benefit shall be payable on behalf of Executive; provided, however, that with respect to her Common Share Benefit only, if Executive’s Spouse predeceases her, Executive
may designate another beneficiary to receive such Common Shares, subject to reduction as provided in Section 6.01(b) if Executive dies prior to the commencement of benefits. If no beneficiary is designated for this purpose, the beneficiary
shall be Executive’s estate. 
 SECTION 7 GENERAL PROVISIONS 
 7.01 Limitation of Executive’s Rights. Nothing in this Plan shall be construed as conferring upon Executive any right to continue in the employment of the Company, nor shall it interfere with the rights of
the Company to terminate the employment of Executive and/or to take any personnel action affecting Executive without regard to the effect which such action may have upon Executive as a recipient or prospective recipient of benefits under the Plan.
Any amounts payable hereunder shall not be deemed salary or other compensation to Executive for the purposes of computing benefits to which Executive may be entitled under any other arrangement established by the Company for the benefit of its
employees. 
 7.02 Future of the Plan. The Company expects to maintain the Plan indefinitely, however, it reserves the right to amend,
suspend, discontinue or terminate the Plan at any time and for any reason; provided that the Plan Administrator is authorized to make any technical, administrative, regulatory or compliance amendments to the Plan, or any amendment that will not
significantly increase the cost of the Plan to the Company; and provided further that the Plan cannot be terminated prior to the date on 
  

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 which a benefit is still payable to Executive under the Plan, unless such distribution is made in accordance with, and
complies with, the requirements of section 409A of the Code. Notwithstanding the foregoing, the benefits already accrued by Executive may not be reduced by any Plan amendment. If the Plan is terminated, Executive shall become fully vested in her
benefit (including any death benefit payable in connection therewith). 
 7.03 Funding Policy and Source of Payments of Plan Benefits.
The Board shall establish a trust to serve as the funding vehicle for the benefits described herein. Notwithstanding such trust, the Company’s obligations hereunder shall constitute a general, unsecured obligation, payable solely out of the
trust or its general assets, and Executive shall not have any right to any specific assets of the Company. 
 7.04 Administration of the
Plan. The Plan shall be administered by the Plan Administrator. The Plan Administrator may adopt such rules and regulations not inconsistent with the provisions of the Plan as it deems necessary or appropriate for the proper administration of
the Plan. The Plan Administrator shall have the full power and discretion to administer and interpret the Plan, to establish procedures for administering the Plan and to take any and all necessary actions in connection therewith, including, but not
limited to, decisions relating to eligibility to participate, eligibility for and amount of benefits, factual determinations, the time and form of benefit payment and all other aspects of the Plan’s administration and interpretation. All such
rules, regulations, interpretations and constructions shall be final and binding on the Company and Executive and her legal representatives, beneficiaries, successors and assigns. 
 7.05 Claims and Review Procedure. 
 (a) Applications for benefits and inquiries concerning the Plan (or concerning present or future rights to benefits under the Plan) shall be submitted to the Plan Administrator, in writing. An application for benefits shall be submitted on
the prescribed form and shall be signed by Executive or, in the case of a benefit payable after her death, by her Spouse. 
 (b) In the event
that an application for benefits is denied in whole or in part, the Plan Administrator shall notify the applicant in writing of the denial and of the right to review of the denial. The written notice shall set forth, in a manner calculated to be
understood by the applicant, specific reasons for the denial, specific references to the provisions of the Plan on which the denial is based, a description of any information or material necessary for the applicant to perfect the application, an
explanation of why the material is necessary, and an explanation of the review procedure under the Plan, including a statement of the applicant’s right to bring a civil action under section 502(a) of ERISA following an adverse determination on
review. The written notice shall be given to the applicant within a reasonable period of time (not more than 90 days) after the Plan Administrator received the application, unless special circumstances require further time for processing and the
applicant is advised of the extension. In no event shall the notice be given more than 180 days after the Plan Administrator received the application. 
  

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 (c) An applicant whose application for benefits was denied in whole or part, or the applicant’s duly
authorized representative, may appeal the denial by submitting to the Plan Administrator a written request for a review of the application within 60 days after receiving written notice of the denial. The Plan Administrator shall give the applicant
or his representative an opportunity to review pertinent materials, other than legally privileged documents, in preparing the request for a review. The request for a review shall set forth all of the grounds on which it is based, all facts in
support of the request and any other matters that the applicant deems pertinent. The Plan Administrator may request that the applicant submit such additional facts, documents or other materials as it may deem necessary or appropriate in making its
review. 
 (d) The Plan Administrator shall act on each request for a review within 60 days after receipt, unless special circumstances
require further time for processing and the applicant is advised of the extension. In no event shall the decision on review be rendered more than 120 days after the Plan Administrator received the request for a review. In the event that the Plan
Administrator confirms the denial of the application for benefits in whole or in part, the notice shall set forth, in a manner calculated to be understood by the applicant, the specific reasons for the decision, specific references to the provisions
of the Plan on which the decision is based, a statement that the applicant is entitled to receive, upon request and free of charge, all documents, records and other information relevant to the claim for benefits, and a statement about any voluntary
appeals procedures offered by the Plan and the applicant’s right to bring an action under section 502(a) of ERISA. 
 (e) The Plan
Administrator shall adopt such rules, procedures and interpretations of the Plan as it deems necessary or appropriate in carrying out its responsibilities under this Section 7.05. 
 (f) No legal action for benefits under the Plan shall be brought unless and until the applicant (i) has submitted a written application for benefits
in accordance with Section 7.05(a), (ii) has been notified by the Plan Administrator that the application is denied, (iii) has filed a written request for a review of the application in accordance with Section 7.05(d) and
(iv) has been notified in writing that the Plan Administrator has affirmed the denial of the application; provided, however, that legal action may be brought after the Plan Administrator has failed to take any action on the claim within the
time prescribed by Sections 7.05(b) and (e). 
 7.06 Restriction Against Assignment. The Company shall pay all amounts payable
hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No part of Executive’s benefit shall be subject to execution by levy, attachment, or garnishment or by any other legal or equitable
proceeding (including, but not limited to, an action for a divorce or legal separation), nor shall any such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any
manner whatsoever. If Executive (or, in the event of Executive’s death, Executive’s Spouse) is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, commute, assign, pledge, encumber or charge any distribution or
payment from the Plan, voluntarily or 
  

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 involuntarily, the Plan Administrator, in its discretion, may cancel such distribution or payment (or any part thereof)
to or for the benefit of Executive (or Executive’s Spouse) in such manner as the Plan Administrator shall direct. 
 7.07
Construction. 
 (a) Applicable Law. The provisions of the Plan and the rights of Executive and the Company hereunder shall be
interpreted and construed in accordance with the laws of the Commonwealth Pennsylvania, to the extent not superseded by applicable U.S. federal law. 
 (b) Titles and Headings. The titles and headings of the Sections of this Plan are for convenience only. In the case of ambiguity or inconsistency, the text rather than the titles or headings shall control.

 (c) Severability. If any provision of the Plan is held illegal or invalid for any reason, such illegality or invalidity shall not
affect the remaining provisions of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provision had not been included in the Plan. 
 7.08 Taxes. All federal, state and local income, employment or other taxes required to be withheld in connection with a benefit payment shall be the sole responsibility of Executive. To the extent not otherwise
paid for by Executive or, in the event of her death, her Spouse, the Company shall have the right to deduct from any wages or other compensation payable to Executive or any payment made pursuant to this Plan any such taxes, as the Plan Administrator
may determine in its sole discretion. 
 7.09 Section 409A of the Code. The Plan is intended to comply with the applicable
requirements of section 409A of the Code and its corresponding regulations and related guidance and shall be administered in accordance with section 409A of the Code. Notwithstanding anything in the Plan to the contrary, distributions from the Plan
may only be made in a manner and upon an event permitted by section 409A of the Code. To the extent that any provision of the Plan would cause a conflict with the requirements of section 409A of the Code, or would cause the administration of the
Plan to fail to satisfy the requirements of section 409A of the Code, such provision shall be deemed null and void to the extent permitted by applicable law and the Company may modify the Plan in such a manner to comply with such requirements
without the consent of Executive. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, and as evidence of the adoption of the foregoing Plan, the Company has caused the
same to be executed by its duly authorized officers this 11th day of December, 2006. 
  

			
	RAIT INVESTMENT TRUST
	
	 /s/ Scott F. Schaeffer
  

	By: Scott F. Schaeffer
	Title:	 	President

  

 13Second Amended and Restate Employment Agreement

 Exhibit 10.3 
 SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (the “Agreement”), entered into as of December 11, 2006, by and between RAIT Investment Trust, a Maryland real estate investment trust (the “Company”), with a principal office in Philadelphia,
Pennsylvania, and Scott F. Schaeffer (“Executive”). 
 WHEREAS, the Company and Executive previously entered into an
Amended and Restated Employment Agreement, as of January 23, 2002, (the “Prior Agreement”); 
 WHEREAS, the
Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Taberna Realty Finance Trust (“Taberna”), pursuant to which Taberna will become a wholly-owned subsidiary of the Company as of the
closing of the transactions contemplated by the Merger Agreement (the “Merger”); 
 WHEREAS, concurrently with the
execution of the Merger Agreement and in order to induce Taberna to enter into the Merger Agreement, the Company and Executive entered into a waiver agreement dated June 8, 2006, pursuant to which Executive agreed to waive the Good Reason (as
defined in the Prior Agreement) termination provisions under his Prior Agreement as a result of a change in Betsy Cohen’s position with the Company and any change in his positions or duties directly attributable to or directly in connection
with the Merger, provided that such waiver is expressly conditioned on (i) the consummation of the Merger, and (ii) Executive and the Company entering into an amendment to the Prior Agreement containing terms generally set forth in
Section 6.1(xi) of the Parent Disclosure Letter to the Merger Agreement; 
 WHEREAS, the Company and Executive have agreed to the
changes to the Prior Agreement to satisfy the conditions set forth in Section 6.1(xi) of the Parent Disclosure Letter to the Merger Agreement and to make certain additional changes to the Prior Agreement; 
 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; and 
 WHEREAS, this Agreement shall only become effective upon the consummation of the Merger.

 NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows, effective as of the consummation of the
Merger: 
 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 consummation of the Merger (the
“Effective Date”), and shall continue until the third anniversary of the consummation of the Merger, 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 Effective Date 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.” If the Merger is not consummated, this Agreement shall be null, void and without effect. 
 1.2 Duties and Responsibilities. Executive shall serve as the Co-President and serve as the Co-Chief Operating 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 $500,000, 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 stock option 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 Co-President and Co-Chief Operating Officer. 
 1.9 Car Allowance. The Company shall
continue to provide Executive with a car allowance of not less than $500 per month. 
 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 of any applicable benefit plans and programs of the Company. 
 (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. Payment
shall be made within thirty (30) days after the effective date of the termination or the end of the revocation period for the Release, if later. 
 (ii) 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 during such period; or, as an alternative, the Company
may elect to pay Executive cash in lieu of such coverage in an amount equal to Executive’s after-tax cost of continuing such coverage, where such coverage may not be continued (or where such continuation would adversely affect the tax status of
the plan pursuant to which the coverage is provided). 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. 
 (iii) Executive shall also receive any other amounts earned, accrued and owing but not
yet paid under Section 1 above, including 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)
 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 of any applicable benefit plans and programs of the
Company. 
 2.3 Disability. The Company may terminate Executive’s employment 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) The Company shall pay to Executive any amounts earned, accrued and owing but not yet paid under Section 1 above and a pro rata Cash Bonus for the
fiscal year in which Executive’s Disability occurs. The pro rated Cash Bonus shall be determined as provided in Section 2.1(c)(iii) above. 

 (b) Executive shall receive any other benefits accrued and earned in accordance with the terms of any
applicable benefit plans and programs of the Company. 
 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 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. 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 of any applicable benefit plans and
programs of the Company. 
 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 Effect of Change
of Control. If a Change of Control occurs and Executive’s employment terminates under the circumstances described below, the provisions of Section 2.1 shall apply. 
 3.2 Termination Without Cause Upon or After a Change of Control. Upon or after a Change of Control, the Company (by action of the Board) may
remove Executive at any time without Cause from the position in which Executive is employed hereunder or Executive may initiate termination of employment by resigning under this Section 3 for Good Reason (as defined in Section 4) (in
either case the Employment Term shall be deemed to have ended) upon not less than sixty (60) days’ prior written notice to Executive (or in the case of resignation for Good Reason, Executive shall give the Company not less than sixty
(60) days’ prior written notice of such resignation); provided, however, 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 any such
event, the provisions of Section 2.1(b) or (c), as applicable, shall then apply. 
 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. 
 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: 
 (a) the Company ceases to be publicly owned; or 
 (b) Daniel G. Cohen is no longer the Chief Executive Officer of the Company. 

 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 the Executive or Betsy Cohen, or any
member of the Executive’s or 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 Investment Trust 
 1818 Market Street 
 Philadelphia, PA 19103 
 With a required
copy to: 
 Morgan, Lewis & Bockius LLP 
 1701 Market Street 
 Philadelphia, PA 19103-2921 
 Attention: Robert J. Lichtenstein, Esquire 
 If to Executive, to: 
 Scott F. Schaeffer 
 [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, including, but not limited to, the Amended and Restated Employment Agreement, entered into as of January 23, 2002, 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. To the extent that any payment under this
Agreement is deemed to be deferred compensation subject to the requirements of Section 409A of the Code, and the terms of this Agreement do not incorporate the requirements of Section 409A of the Code with respect to such payments, the
Company may amend this Agreement without the consent of Executive so that such payments will be made in accordance with such requirements. Amendment of the Agreement to comply with Section 409A of the Code will not require that Executive
receive any additional benefit under the Agreement. 
 [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 INVESTMENT TRUST
		
	By:	 	 /s/ Betsy Z. Cohen
  

	Name:	 	Betsy Z. Cohen
	Title:	 	Chairman of the Board of Directors and Chief Executive Officer
	
	EXECUTIVE
	
	 /s/ Scott F. Schaeffer
  

	Scott F. Schaeffer

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