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MANUFACTURING AND DISTRIBUTION LICENSE AGREEMENT

THIS AGREEMENT (“Agreement”), dated as of June 11, 2018, is entered into by and between Canbiola, Inc., a Florida corporation with a primary place of business at 960 S Broadway Suite 120, Hicksville, NY 11801 (“Canbiola”) and Hudilab Inc., a Colorado corporation (dba “Endless Relief”) with a principal place of business at 4833 Front Street Suite B-426 Castle Rock CO 80104.

RECITALS

WHEREAS Endless Relief has developed and owns a cannabis-infused product line that delivers CBD as transdermal medication delivered on its own or in conjunction with transcutaneous electrical nerve stimulation; and

WHEREAS Canbiola operates a CBD-infused product manufacturing and distributing/sales business; and

WHEREAS Canbiola and Endless Relief wish to form a non-exclusive business relationship to jointly manufacture and market Mobius Therapy Products.

NOW THEREFORE, in consideration of the promises and mutual covenants set forth herein, and other good and valuable consideration, Canbiola and Endless Relief agree as follows:

DEFINITIONS

“Adjusted Revenue” is defined as:  The total amounts collected by Canbiola for Mobius Therapy Products.  

“Canbiola Network” is defined as: The entire CBD-infused product manufacturing and distributing/sales business operated by Canbiola.

“Cost-of-Goods-Sold” is defined as:  The total actual cost of equipment, supplies, labels, packaging, labor, medicated and non-medicated raw materials, sales commissions and interest (paid on debt financing).

“Mobius Therapy” is defined as: Transdermal medication suspended in a hydrogel delivered on its own or in conjunction with “TENS” (Transcutaneous Electrical Nerve Stimulation) or “EMS” (Electrical Muscle Stimulation) and any other products developed by Endless Relief, collectively, “Mobius Therapy Products”.

“M.S.R.P.” is defined as: Manufacturer’s Suggested Retail Price.  

“Pre-Tax Earnings” is defined as: Adjusted Revenue minus Cost-of-Goods-Sold.

“Territory” is defined as all sales locations served by the Canbiola Network. 

“Wholesale Price” is defined as equal to one-half of the M.S.R.P. and will be mutually determined by Canbiola and Endless Relief.  The Mobius Therapy Products will be marketed by Canbiola at a Wholesale Price equal to 50% of the M.S.R.P. 

Confidential Information © Endless Relief   Page 1 of 7

AGREEMENT

1.

Canbiola’s Contributions.  Canbiola shall staff and operate one or more CBD-product manufacturing facilities and shall staff and operate the related sales and distribution infrastructure necessary to produce, sell and distribute the products handled by Canbiola, including the Mobius Therapy Products, and Canbiola shall use its best efforts to promote the sale and distribution of Mobius Therapy Products.  Canbiola shall acquire and provide medicated raw materials including CBD.  When and if necessary Canbiola agrees to provide debt financing for the purchase of raw materials and supplies under mutually agreeable terms.

2.

Endless Relief’s Contributions.   Endless Relief shall share with Canbiola for the limited terms of this Agreement the Mobius Brand and the intellectual property surrounding the Mobius Therapy Products, including: product research and development, formulations, ingredients, manufacturing standard operating procedures, non-medicated raw materials, labeling and packaging design and materials, training of manufacturing staff, and ongoing quality assurance, quality control and research and development.

3.

Protected Territory.  Endless Relief will not ship Mobius Therapy Products to the Territory except by the direction of Canbiola.  Endless Relief will refer to Canbiola any and all orders or inquiries for Mobius Therapy Products that Endless Relief may receive for shipment to the Territory, or orders which are intended for eventual shipment to the Territory.  Endless Relief will, upon demand, promptly execute such documents and perform such acts as may be necessary so as to prevent any products labeled in imitation or simulation of the Mobius Therapy Products from being distributed in the Territory.

4.

Changes to Territory.  Canbiola will notify Endless Relief of any anticipated changes in the Canbiola Network and Territory at least 30 days prior to any such change, when possible, or within 15 days of learning of unanticipated changes.

5.

Appointment as Distributor.  Endless Relief hereby appoints Canbiola as a Distributor for the term of this Agreement for the sale and distribution of the Mobius Therapy Products in and throughout the Territory.  

6.

Grant of License.  Endless Relief hereby grants to Canbiola, upon and subject to the terms and conditions of this Agreement, a non-exclusive license to manufacture, sell and distribute the Mobius Therapy Products in the Territory. During the term of this Agreement, Canbiola will have a royalty-free right and license to prominently use any trademarks or trade names relating to the Mobius Therapy Products in advertising and promotional materials with respect to the Mobius Therapy Products.

a.

Without the prior written consent of Endless Relief, Canbiola may not make any changes to the Mobius Therapy Products.

b.

Canbiola hereby grants back to Endless Relief a non-exclusive royalty-free license to use the Authored Work (as defined below) as Endless Relief sees fit, including for the creation of derivative works; provided, however, this license shall not limit Canbiola's rights and public rights under this License.

Confidential Information © Endless Relief   Page 2 of 7

7.

Ownership of I.P.  Notwithstanding any other provision of the Agreement, Endless Relief retains all title and ownership to any and all patent, copyright, trademark (including associated goodwill), trade secrets, know-how and other intellectual property or proprietary rights, in or to, associated with, arising in connection with, or related to the Mobius Therapy Products (collectively the “Authored Work”) whether existing as of the date of this Agreement or developed during the term thereof. Canbiola shall take any and all steps necessary to transfer any such rights to Endless Relief at the termination of this Agreement.

8.

Compensation.  In consideration for the licenses granted to Canbiola and other obligations of Endless Relief under this Agreement, Canbiola agrees to pay quarterly to Endless Relief a royalty equal to 50% of the “Pre-Tax Earnings” from the sale of Mobius Therapy Products.

a.

The royalty to be paid pursuant to this Agreement shall be calculated on a quarterly basis and shall be due and payable within 15 days of the end of the quarter.

b.

Quarterly, the parties will reconcile the details of their individual spending and if necessary Canbiola shall adjust the following quarter’s cash disbursement to reconcile any disparities in spending to ensure that both parties equitably split each quarter’s Pre-Tax Earnings. 

9.

Record Inspection and Audit.  Endless Relief shall have the right no more than once every six months, upon reasonable advance notice and during Canbiola’s regular business hours, to inspect Canbiola’s books and records with respect to the manufacture, sale and distribution of the Mobius Therapy Products. Endless Relief shall have full access thereto and Endless Relief may, at its expense make copies thereof.

a.

All books and records relative to Canbiola’s obligation hereunder shall be maintained and made accessible to Endless Relief for inspection for one year after termination of this Agreement. 

10.

Reporting.  Canbiola, upon request from Endless Relief, will prepare and furnish to Endless Relief monthly and quarterly sales and depletion reports containing the details of inventory, sales, promotional, sampling and damage, theft or loss with respect to Mobius Therapy Products including both work-in-process as well as finished goods.  

11.

Confidential Information.   The term "Confidential Information" means any information or material which is proprietary to Endless Relief, whether or not owned or developed by Endless Relief, which is not generally known other than by Endless Relief, and which Canbiola may obtain through any direct or indirect contact with Endless Relief. Regardless of whether specifically identified as confidential or proprietary. 

a.

Confidential Information shall include any information provided by Endless Relief concerning the business, technology and information of Endless Relief and any third party with which Endless Relief deals, including, without limitation, business records and plans, trade secrets, technical data, product ideas, contracts, financial information, pricing structure, discounts, computer programs and listings, source code and/or object code, copyrights and intellectual property, inventions, sales leads, strategic alliances, partners, and customer and client lists. The nature of the information and the manner of disclosure are such that a reasonable person would understand it to be confidential. 

Confidential Information © Endless Relief   Page 3 of 7

b.

Confidential Information does not include: 

i.

matters of public knowledge that result from disclosure by Endless Relief; 

ii.

information rightfully received by Canbiola from a third party without a duty of confidentiality; 

iii.

information independently developed by Canbiola; 

iv.

information disclosed by operation of law; 

v.

information disclosed by Canbiola with the prior written consent of Endless Relief; and

vi.

any other information that both parties agree in writing is not confidential. 

c.

Canbiola understands and acknowledges that the Confidential Information has been developed or obtained by Endless Relief by the investment of significant time, effort and expense, and that the Confidential Information is a valuable, special and unique asset of Endless Relief which provides Endless Relief with a significant competitive advantage and needs to be protected from improper disclosure. In consideration for the receipt by Canbiola of any Confidential Information, Canbiola agrees as follows: 

i.

Canbiola will hold the Confidential Information in confidence and will not disclose the Confidential Information to any person or entity without the prior written consent of Endless Relief. 

ii.

Canbiola will not copy or modify any Confidential Information without the prior written consent of Endless Relief. 

iii.

Canbiola shall promptly advise Endless Relief if Canbiola becomes aware of any possible unauthorized disclosure or use of the Confidential Information. 

iv.

Canbiola shall not disclose any Confidential Information to any employees of Canbiola, except those employees who are required to have the Confidential Information in order to perform their job duties in connection with the limited purposes of this Agreement. Each permitted employee to whom Confidential Information is disclosed shall sign a non-disclosure agreement substantially the same as this Agreement at the request of Endless Relief.

v.

In view of the nature of the Confidential Information, Canbiola agrees that any unauthorized disclosure of Confidential Information or other violation, or threatened violation, of this Agreement would cause irreparable damage to Endless Relief, and that, therefore, Endless Relief shall be entitled to an injunction prohibiting Canbiola from any such disclosure, attempted disclosure, violation, or threatened violation of this Agreement, and Canbiola further agrees to waive any requirement for the securing or posting of any bond in connection with such remedy.  

d.

The provisions of this Section shall survive for a period of one (1) year following termination of this Agreement.

Confidential Information © Endless Relief   Page 4 of 7

12.

Warranties.  Neither party makes any warranties with respect to the use, sale or other transfer of the Authored Work by the other party or by any third party, and Canbiola accepts the product "AS IS." In no event will Endless Relief be liable for direct, indirect, special, incidental, or consequential damages, that are in any way related to the Authored Work. 

13.

Indemnification. Canbiola and Endless Relief each hereby indemnify and hold the other harmless against any and all claims, demands, actions, obligations, costs and expenses incurred by the other (including, but not limited to, attorneys' fees and costs through all pre-trial, trial, appellate and post-judgment proceedings) which arise out of their respective activities or performance under this Agreement or any breach of their respective obligations hereunder. The terms and conditions of this Section shall survive the Term of this Agreement for a period of one year.

14.

Non-Competition/Non-Circumvention. Canbiola agrees that during the term of this Agreement, and for a period of one year following the termination of this Agreement it will not, and it will not permit any of its officers, employees or directors to:

a.

directly or indirectly, manufacture or distribute or in any way assist any person or entity that is manufacturing or distributing any products that directly compete with Mobius Therapy Products; or

b.

take any action or fail to take any action that would circumvent this Agreement, make use of a scheme, artifice, device or third party to circumvent this Agreement or make any effort to circumvent this Agreement.

15.

Relationship of the Parties.  Each of the parties shall act solely as independent contractors and nothing herein shall be so construed as to create the relationship of employees and employee, partners, principal and agent, or co-venturers between the parties.

16.

Assignment.  This Agreement shall be binding on any successors of the parties. Neither party shall have the right to assign its interests in this Agreement to any other party, unless the prior written consent of the other party is obtained. 

17.

Term and Termination.   The term of this Agreement shall be for a period of ten years commencing on June 11, 2018, and terminating on June 11, 2027, and shall thereafter continue in effect unless either party shall notify the other of its intention to terminate this Agreement by giving at least 6 months written notice prior to any specified termination date.  

a.

Either party shall have the option to terminate this Agreement in the event of a breach of any of the terms and provisions of this Agreement.  Either party may terminate this Agreement by giving the other party 90 days written notice provided said notice shall set forth the breach being claimed as the basis for termination. 

b.

If the offending party cures the breach being claimed within 45 days of the notice of said breach, the notice of termination shall be void and this Agreement shall continue in full and force and effect.

Confidential Information © Endless Relief   Page 5 of 7

c.

Notwithstanding the provisions of the previous paragraph hereof, Endless Relief shall have the right to terminate this Agreement upon 30 days written notice in the event that Canbiola shall:

i.

be declared bankrupt or enter a voluntary petition for bankruptcy or in any way enter into a compromise or agreement for the benefit of its creditors;

ii.

fail to maintain in good standing all Federal and state licenses and permits necessary for the proper conduct of its business;

iii.

change or in any way be affected by a change in the majority ownership of its business.

d.

Upon termination of this Agreement by either party, Canbiola shall return to Endless Relief all existing inventory of Mobius Therapy Products and supplies, provided Canbiola has properly stored and maintained the inventory of the Products in a saleable condition, otherwise Canbiola shall pay Endless Relief the value of such inventory at Endless Relief’s laid-in cost.

18.

Notices.  All notices shall be sent prepaid by mail addressed to the respective parties at the address hereinabove set forth.

19.

Choice of Law.  This Agreement shall be governed by the laws of the State of Colorado, without regard to conflict of law principles. Exclusive jurisdiction and venue for claims made by either party against the other shall be within the state and federal courts located in the State of Colorado.  

20.

Arbitration.  Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled by arbitration in Colorado in accordance with the rules of the American Arbitration Association then in effect, and judgment upon the award rendered by the arbitrator or arbitrators shall be final and binding upon the parties hereto.  

21.

Legal Fees.  If arbitration or other action is required to enforce or to interpret a provision of this Agreement, or otherwise arises with respect to the subject matter of this Agreement, the prevailing party shall be entitled, in addition to, other rights and remedies that it may have, to reimbursement for its expenses incurred with respect to that action, including reasonable attorneys’ fees.

22.

Entire Agreement.  This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and there are no other promises or conditions in any other agreement whether oral or written with respect to the subject matter hereof which are binding on the parties. This Agreement supersedes any prior written or oral agreements between the parties. 

23.

Amendment.  This Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties to this Agreement. 

24.

Severability.  If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such 

Confidential Information © Endless Relief   Page 6 of 7

provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited. 

25.

No Waiver of Contractual Right.  The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with any provision of this Agreement. 

26.

Titles and Headings. The titles and headings within this Agreement are for convenience of reference only and, in the event of any conflict, the text of the Agreement, rather than such titles or headings, shall control.

27.

Contra Proferentem. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of same, and any rule of construction that a document shall be construed against the drafting party, including without limitation, the doctrine commonly known as contra proferentem, shall not be applicable to this Agreement.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers.

Endless Relief

Canbiola 

By: ______________________________

By: __________________________

Name:

Franklin Horwich / CEO________

Name: Marco Alfonsi/CEO

                                   

Date:

___________________________

Date: ____________________________

Confidential Information © Endless Relief   Page 7 of 7EX-10.1

 Exhibit 10.1 

CONSENT AND ACKNOWLEDGMENT DATED AS OF JUNE 12, 2018 

RE EXTENSION AGREEMENT DATED AS OF MARCH 12, 2018 

ARS VI INVESTOR I, LP, a limited partnership formed and existing under the laws of the State of Delaware formerly known as ARS VI Investor I,
LLC (the “Investor”), RAIT FINANCIAL TRUST, a real estate investment trust formed and existing under the laws of the State of Maryland (the “Company”), RAIT PARTNERSHIP, L.P., a limited partnership formed and
existing under the laws of the State of Delaware (the “Partnership”), TABERNA REALTY FINANCE TRUST, a real estate investment trust formed and existing under the laws of the State of Maryland (“Taberna”), and RAIT
ASSET HOLDINGS IV, LLC, a limited liability company formed and existing under the laws of the State of Delaware (“NewSub” and together with the Company, the Partnership and Taberna, the “Issuer Parties”), hereby
desire to consent and acknowledge, pursuant to the terms of this Consent and Acknowledgment, certain modifications to the Extension Agreement dated as of March 12, 2018, as amended by the letter agreement dated June 8, 2018 (collectively,
the “Extension Agreement”) which relates to (i) the Securities Purchase Agreement, dated as of October 1, 2012 by and among the Issuer Parties and the Investor, as amended by the Amendment thereto dated September 30,
2015 (as amended, the “Securities Purchase Agreement”) and Related Documents and (ii) the letter dated February 14, 2018, (the “February Letter”). Capitalized terms used but not defined herein shall have
the meanings ascribed to such terms in the Securities Purchase Agreement or the Extension Agreement. 
 RECITALS 

WHEREAS, Investor is willing to consent to certain terms and to grant the Issuer Parties certain modifications to the Extension Agreement, and
the Investor and Issuer Parties agree, consent and acknowledge such consent and modifications consistent with the terms and conditions set forth herein. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows: 
 The Investor and Issuer Parties hereby agree that Section 1.a.) of the
Extension Agreement shall read as follows: 
 Provided that the Issuer Parties enter into both of the Sale Contracts (as hereinafter defined)
on or before 6:00 p.m. (Eastern time) on June 15, 2018 (the “Sale Contracts Date”), Investor hereby agrees to extend the Effective Date (as defined in and set forth in the February Letter) to 3:00 p.m. (Eastern time) on Friday,
June 29, 2018 (such period being the “Extended Effective Date Period”) on the terms and conditions set forth below, and if the Issuer Parties do not enter into both of the Sale Contracts on or before the Sale Contracts Date,
the Extended Effective Date Period shall expire at 6:00 p.m. (Eastern Time) on the Sale Contracts Date. 

 The Investor and Issuer Parties hereby agree that Section 1.b.) iii. of the Extension
Agreement shall read as follows: 
 During the Extended Effective Date Period, the Issuer Parties shall use reasonable best efforts to
(a) enter into either one (1) binding sale contract covering certain specified assets of NewSub (individually “Specified Asset 2”, and “Specified Asset 3” and collectively “Specified
Assets”) or two (2) separate binding sale contracts, each covering a Specified Asset, in each case in form and substance acceptable to the Investor in its reasonable discretion (such binding sale contract(s), the “Sale
Contracts”) by the Sale Contracts Date to sell, in the case of Specified Asset 2, for cash payable in full at the closing or a combination (in the amounts previously agreed to by the Investor and the Issuer Parties) of cash payable at the
closing and a promissory note delivered at the closing in form and substance acceptable to the Investor in its sole discretion (the “Promissory Note”), and in the case of Specified Asset 3, for cash payable in full at the closing,
which Sale Contracts shall provide for a closing date of no later than Wednesday, June 27, 2018 (the “Sale Closing Date”) and provide for a simultaneous closing of the sales of Specified Asset 2 and Specified Asset 3, (b)
provide for a sale process designed to maximize the Net Proceeds (as defined in the Articles Supplementary and LLC Agreement, but which shall include for all purposes of this Agreement the principal amount of the Promissory Note) for each of the
Specified Assets, which shall not result in the receipt of Net Proceeds of less than the amount agreed by the Investor and the Issuer Parties with respect to each such Specified Asset (the “Floor Amount”), and (c) consummate
the sale of each of the Specified Assets by no later than the Sale Closing Date. Each of the Sale Contract(s) (if applicable) shall provide that (i) either the Company or NewSub will have the right, without penalty or other payment from any
Issuer Party, to terminate the applicable Sale Contract(s) if the transactions contemplated thereby shall not have been consummated on or before the Sale Closing Date, and (ii) excluding the “Sales Contract Deposit(s)” (as defined
below) payable to NewSub solely in the event that buyer fails to purchase Specified Asset 2 and Specified Asset 3 on or before the Sale Closing Date, all amounts payable in respect of Specified Asset 2 and Specified Asset 3 by the buyer thereunder
shall be paid by the buyer, at NewSub’s direction, directly to the Investor to redeem the Subsidiary Preferred Units and cancel the linked Series D Preferred Shares. In the event that (x) the transactions contemplated by the Sale
Contract(s) are not consummated on or before the Sale Closing Date, and (y) either (i) the Investor, by written notice to the Company and NewSub, directs the Company or NewSub, as applicable, to terminate the applicable Sale Contract(s) or
(ii) the Company or NewSub determines to terminate the applicable Sale Contract(s) consistent with the preceding sentence and provides written notice of the same to the Investor, then the Company or NewSub, as applicable, shall terminate such
Sale Contract(s) as promptly as practicable, but in any event within one (1) Business Day of the date of its receipt of the Investor’s notice or its delivery of written notice to the Investor of its determination to terminate the Sale

  
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Contract(s), as applicable. In addition, in the event that the transactions contemplated by the Sale Contract(s) are not consummated on or before the Sale Closing Date, the Investor shall have
the unilateral right, exercisable by written notice to the Company and NewSub by no later than 5:00 p.m. (Eastern time) on June 28, 2018, to extend the Effective Date (and in turn, the Extended Effective Date Period) to July 16, 2018 (or
such later date as the parties may mutually agree). 
 The Issuer Parties hereby represent and warrant and the Investor hereby confirms and
acknowledges that the sale of Specified Asset 1 referred to in the Extension Agreement has been completed and the associated Net Proceeds in an amount equal to $4,863,250 were utilized to redeem and cancel 194,530 Subsidiary Preferred Units and
linked Series D Preferred Shares. The Issuer Parties shall keep the Investor reasonably informed on a current basis of the status of the sale process of Specified Asset 2 and Specified Asset 3, including by providing the Investor regular updates on
the current status thereof and providing such other information with respect to such sales as the Investor may reasonably request from time to time. Notwithstanding anything contained in the Securities Purchase Agreement or any Related Document,
including, without limitation, Section 5(c) of Article Third of the Articles Supplementary and Article 5 and Article 11 of the LLC Agreement, (i) any and all Net Proceeds received by any Issuer Party (to the extent not paid directly to the
Investor as required hereunder) on or before June 29, 2018 in respect of the sale of Specified Asset 2 and Specified Asset 3 shall be used only to immediately redeem the Subsidiary Preferred Units and cancel the linked Series D Preferred Shares
and for no other purpose, and (ii) provided that the Investor agrees in writing to extend the Effective Date and correspondingly, the Extended Effective Date Period, on the terms set forth in and pursuant to the last sentence of the preceding
paragraph, any and all Net Proceeds received by any Issuer Party during the period commencing on June 30, 2018 and ending at the expiration of the Extended Effective Date Period, as the same may be extended pursuant to the last sentence of the
preceding paragraph (the “Holding Period”), in respect of the sale of Specified Asset 2 and Specified Asset 3 shall be retained by NewSub and shall not be distributed or otherwise transferred by NewSub, except to the Investor or as
may be otherwise agreed in writing by the Investor, until the expiration of the Holding Period; provided that for the avoidance of doubt, following the expiration of the Holding Period, the Investor is not consenting to any distribution or transfer
of such Net Proceeds (or any portion thereof) and is expressly reserving all of its rights and remedies in respect thereof; and provided further, that if at any time during the Holding Period, NewSub and the Company are not prevented by applicable
law or any constituent instrument or agreement to redeem the Subsidiary Preferred Units and cancel the linked Series D Preferred Shares with all or any portion of such Net Proceeds, such Net Proceeds (or portion thereof) shall be used to immediately
redeem the Subsidiary Preferred Units and cancel the linked Series D Preferred Shares. During the Holding Period, if any, the Issuer Parties and the 

  
 3 

 
Investor shall reasonably cooperate with each other and discuss mutually acceptable alternative transactions designed to result in the payment of the Net Proceeds in respect of the sale of
Specified Asset 2 and Specified Asset 3 to the Investor as promptly as practicable. Except as expressly set forth in this Section 1.b.) iii., neither NewSub nor any of its Subsidiaries shall, directly or indirectly, without Investor’s
prior written consent, transfer any of its assets to any Person, which approval right shall only be applicable during the Extended Effective Date Period. 

The Investor and the Issuer Parties hereby agree that Section 1.b.) iv. shall read as follows: 

Any sale of Specified Asset 2 or Specified Asset 3 which results in Net Proceeds in respect of the applicable Specified Asset of less than the
Floor Amount for such Specified Asset shall be approved in writing by the Investor in its sole discretion which approval right shall only be applicable during the Extended Effective Date Period. The Investor shall have the right in its sole
discretion to participate in any sales process or otherwise bid on either or both of the Specified Assets using the Series D Preferred Shares and Subsidiary Preferred Units as consideration therefor valued at the then current Liquidation Preference
(as defined in the Articles Supplementary) thereof, and for avoidance of doubt, if the Investor utilizes the Series D Preferred Shares and Subsidiary Preferred Units as consideration for the purchase of Specified Asset 2 and/or Specified Asset
3, the calculations contained in this Section 1.b.) iv. shall not be affected or modified, and in the event that a Sale Contract is terminated (including at the direction of the Investor as provided herein), the Investor shall have the right in
its sole discretion to purchase the Specified Asset(s) that are the subject of such terminated Sale Contract(s) at the purchase price previously agreed to by the Investor and the Issuer Parties using Series D Preferred Shares and Subsidiary
Preferred Units as consideration therefor valued at the then current Liquidation Preference. All Net Proceeds relating to the sale of Specified Asset 2 and Specified Asset 3, cash held by NewSub as of the date hereof in the amount of $1,500,000
together with all interest, distributions or other proceeds relating to Specified Asset 2, Specified Asset 3 and any other assets held by NewSub as of the date hereof that are received by NewSub during the month of May, 2018 as well as any deposit
(each a “Sales Contract Deposit” or collectively, the “Sales Contract Deposits”) placed in escrow by the buyer under Sale Contract(s) of which is/are paid to NewSub solely in the event buyer fails to purchase
Specified Asset 2 and Specified Asset 3 on or before the Sale Closing Date and the Investor purchases both Specified Asset 2 and Specified Asset 3 on or before June 29, 2018 in accordance with the second sentence of this Section and the
provisions of Section 1.b.) vi. hereof are met (collectively, “Available Cash”) shall be paid to the Investor (or, in the case of the Promissory Note, assigned and delivered to the Investor) on the closing date of the sale of
Specified Asset 2 and Specified Asset 3 and the redemption of the Series D Preferred Shares and linked Subsidiary Preferred Units in connection 

  
 4 

 
therewith; provided, however, in no event shall Investor be paid cash plus the principal amount of the Promissory Note in an amount in excess of $61,245,380 plus dividends (if, and only if,
declared) on the Series D Preferred Shares for the second quarter of 2018; provided, further, that in the event that the aggregate of the Net Proceeds relating to Specified Asset 2 and Specified Asset 3 and Available Cash exceed $61,245,380 and
all amounts required to be paid to the Investor hereunder have been paid to the Investor in full, then such excess amount shall be retained by NewSub. In the event that the Company declares a dividend on the Series D Preferred Shares for the second
quarter of 2018, the Investor shall be entitled to receive the full amount of such dividend; provided, however, that if the Company declares a dividend on the Series D Preferred Shares for the second quarter of 2018 and Net Proceeds relating to
Specified Asset 2, Specified Asset 3 and Available Cash paid to the Investor exceed $57,260.842, NewSub shall retain an amount in cash equal to 50% of such dividend payment and the Investor shall receive an amount in cash equal to 50% of such
dividend payment; provided that in no event shall NewSub retain an amount in respect thereof in excess of $780,722 (the “Maximum Retained Amount”), and any amount in excess of the Maximum Retained Amount shall be paid to the
Investor. The amount paid to the Investor from the Net Proceeds and Available Cash is referred to as the “Redemption Payment” (rounded downward to avoid any fractional interest). The number of Subsidiary Preferred Units and linked
Series D Preferred Shares redeemed shall be computed by dividing the Redemption Payment by $25.00. Moreover, the difference between $73,479,750 and the amount of the Redemption Payment shall be converted into, at the Investor’s option, New
Series D Shares (as hereinafter defined) or Other Acceptable Shares (as hereinafter defined), so long as the New Series D Shares or Other Acceptable Shares, as applicable, have a liquidation preference of $25.00 per share and an aggregate
liquidation preference on such date equal to such difference (the “New Series D Differential”). 
 The Investor and the Issuer Parties
hereby agree that Section 1. b.) vi. shall read as follows: 
 From and after the date such Net Proceeds relating to Specified Asset 2
and Specified Asset 3 and Available Cash (as provided for herein), as well as any dividends (if, and only if, declared) on the Series D Preferred Shares for the second quarter of 2018 to the extent payable to the Investor pursuant to the terms
hereof, have been paid to the Investor, (a) for no further consideration other than the parties providing reasonably acceptable mutual releases, NewSub shall have the right to unilaterally redeem all of the outstanding Subsidiary Preferred
Units and at such time the Company shall cancel Series D Preferred Shares having a Liquidation Preference equal to the Net Proceeds and Available Cash (as provided for herein) received by the Investor (if and to the extent not previously
cancelled), (b) the Investor shall no longer have the right to appoint an Investor Board Designee pursuant to the Securities Purchase Agreement and Related Documents, (c) the existing Investor Board Designee shall immediately tender to the
Company his resignation from the Board subject to the receipt of a release from the Issuer Parties reasonably acceptable to Investor, (d) the Investor shall request in writing that the other member of the Board affiliated with the Investor
tender to the Company his resignation from the 

  
 5 

 
Board subject to the receipt of a release from the Issuer Parties reasonably acceptable to him, and (e) the Securities Purchase Agreement, the Articles Supplementary and any other Related
Document shall be terminated and/or amended, as applicable, such that the remaining outstanding Series D Preferred Shares are, at the option of the Investor, exchanged for (x) new Series D Preferred Shares having substantially equivalent
terms as the Series A Preferred Shares, the Series B Preferred Shares and the Series C Preferred Shares, other than the Applicable Dividend Rate (as defined in the Articles Supplementary) for the Series D Preferred Shares which shall continue to be
the Applicable Dividend Rate then in effect under the related Articles Supplementary (such securities being the “New Series D Shares”) with an aggregate liquidation preference equal to the New Series D Differential or (y) an
existing series of the Company preferred stock acceptable to the Investor (other than the Series D Preferred Shares or the Series E Preferred Shares) (such securities being the “Other Acceptable Shares”) with an aggregate liquidation
preference equal to the New Series D Differential in which case all of the Investor’s rights in the existing documentation relating to the Subsidiary Preferred Units and linked Series D Preferred Shares shall be terminated. For the avoidance of
doubt, the actions and documentation described and provided for in clauses (a) – (e) of this Section 1.b.) vi. shall be completed and executed (as applicable) by the Investor and Issuer Parties by no later than June 29,
2018. 
 The Investor and the Issuer Parties hereby agree that Section 1.b.) v. shall read as follows: 

Concurrently with the Net Proceeds relating to Specified Asset 2 and Specified Asset 3 and Available Cash being paid to the Investor and the
Investor acquiring the New Series D Shares or Other Acceptable Shares as provided for herein, the Company shall pay the Investor an amount in cash equal to 2.5% of the New Series D Differential. 

The Investor and the Issuer Parties hereby agree that Section 1.b.) vii. shall read as follows: 

The Investor acknowledges receipt of the $130,000 described in Section 1.b.) vii. of the Extension Agreement; provided that the receipt of
such amount shall not in any way limit the Investor’s rights under the Securities Purchase Agreement or Related Documents except to the extent of such payment. 

Investor and the Issuer Parties hereby consent to the deletion of Section 1.c.) vi and Section 1.c.) vii.; provided that the
Investor and the Issuer Parties acknowledge that for the avoidance of doubt, any dividend payment to the Investor from and after the date of the Extension Agreement shall not reduce the Liquidation Preference of the Series D Preferred Shares under
the Articles Supplementary. 

  
 6 

 Investor and Issuer Parties hereby consent to the deletion of Section 3. 

The Issuer Parties hereby remake the representations and warranties contained in Section 4 as of the date hereof with respect to this
Consent and Acknowledgment. 
 This Consent and Acknowledgment shall be governed by and construed in accordance with the internal procedural
and substantive laws of the State of New York, without giving effect to the choice of law provisions of such state that would cause the application of the laws of any other jurisdiction. 

This Consent and Acknowledgment may be executed in one or more counterparts (including by facsimile or other electronic transmission), all of
which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties (including by facsimile or other electronic transmission). 

This Consent and Acknowledgment shall for all purposes constitute a Related Document. 

Except as specifically consented to or acknowledged herein, the Extension Agreement shall remain unchanged and in full force and effect and is
hereby ratified and confirmed. 
 The entering into of this Consent and Acknowledgment by the Issuer Parties and the Investor shall not be
deemed a waiver or limitation of, and is without prejudice to, any right or remedy of any of the Issuer Parties or the Investor under the Securities Purchase Agreement and the Related Documents, at law and/or in equity, and reservation is hereby
made on such parties’ behalf of all such rights and remedies and to assert their respective rights and remedies applicable to any other matters which are not described in this Consent and Acknowledgment and/or the Extension Agreement. Nothing
contained in this Consent and Acknowledgment shall constitute an admission as to whether there has been a breach of any of the terms of the Securities Purchase Agreement or any Related Document, or otherwise prejudice any of any party’s rights
and remedies. 
 IN WITNESS WHEREOF, the parties hereto have caused this Consent and Acknowledgment to be duly executed by their respective
authorized officer as of the date first above written. 

  
 7 

 
			
	 COMPANY:

	
	 RAIT FINANCIAL TRUST

		
	By:	 	/s/ John J. Reyle
		 	 Name: John J. Reyle

		 	Title: Interim CEO, Interim President & General Counsel
	
	 PARTNERSHIP:

	
	 RAIT PARTNERSHIP, L.P.

		
	By:	 	RAIT General, Inc., a Maryland corporation, its General Partner
		
	By:	 	/s/ John J. Reyle
		 	 Name: John J. Reyle

		 	Title: Interim CEO, Interim President & General Counsel
	
	 TABERNA:

	
	 TABERNA REALTY FINANCE TRUST

		
	By:	 	/s/ John J. Reyle
		 	 Name: John J. Reyle

		 	Title: Interim CEO, Interim President & General Counsel

  
 [Signature Page: Consent and
Acknowledgement re Extension Agreement] 

 
					
	 NEWSUB:

	
	RAIT Asset Holdings IV, LLC, a Delaware limited liability company
		
	By: 	 	RAIT Partnership, L.P., a Delaware limited partnership, its sole member
		
	By:	 	RAIT General, Inc., a Maryland corporation, its General Partner
		
	By:	 	/s/ John J. Reyle
		 	 Name: John J. Reyle

		 	Title: Interim CEO, Interim President & General Counsel
	
	 INVESTOR:

	
	ARS VI INVESTOR I, LP
		
	By:	 	ARS VI Investor IGP, LLC, its General Partner
		
	By:	 	Almanac Realty Securities VI, L.P., its Sole Member
		
	By:	 	Almanac Realty Partners VI, LLC, its General Partner
		
	By:	 	/s/ Matthew W. Kaplan
		 	 Name:
	 	 Matthew W. Kaplan

		 	 Title:
	 	 President

  
 [Signature Page: Consent and
Acknowledgement re Extension Agreement]

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