Document:

ras-ex10202_308.htm

Exhibit 10.20.2 

 

To:John J. Reyle

 

Date:February 27, 2018

 

Re:Appointment as Interim Chief Executive Officer and Interim President of RAIT Financial Trust

This letter agreement (this “Letter Agreement”) is entered into as of the date set forth above by and between RAIT Financial Trust (the “Company”) and John J. Reyle (“Executive”). Capitalized terms used, but not defined, herein shall have their respective meanings set forth in the Employment Agreement. 

 

Background

 

A.Executive and the Company are parties to that certain Employment Agreement, dated April 21, 2017, pursuant to which Executive is employed as the General Counsel of the Company (the “Employment Agreement”).

B.The current Chief Executive Officer (“CEO”) and President of the Company, Scott L.N. Davidson, notified the Board of Trustees of the Company (the “Board”) that he intends to resign from his employment with the Company, effective February 28, 2018.

C.The Board has appointed Executive to serve as the Interim CEO and Interim President of the Company, and Executive desires to accept such appointment on the terms and conditions set forth herein.  

NOW, THEREFORE, in consideration of the foregoing, and intending to be legally bound, the parties hereby agree as follows:

	
 
	
1.
	
Appointment as Interim CEO and Interim President.  

	
 
	
a.
	
Effective as of 12:01 a.m. on February 28, 2018 (the “Effective Date”), the Company hereby appoints Executive as the Interim CEO and Interim President of the Company, to serve at the pleasure of the Board.

	
 
	
b.
	
The duration of Executive’s appointment as Interim CEO and Interim President of the Company (the “Term”) shall be determined by the Board in its sole discretion. 

	
 
	
2.
	
Duties.  During the Term, Executive will be responsible for performing such duties and responsibilities as are customarily assigned to the position of CEO, and for performing such other services as assigned from time to time by the Board. 

	
 
	
3.
	
Compensation.  During the Term, Executive’s Base Salary shall be increased to Five Hundred Thousand Dollars $500,000 per year. 

 

Exhibit 10.20.2 

 

	
 
	
4.
	
Termination of Appointment.  The Board may end the Term and terminate this Letter Agreement at any time and for any reason, as determined by the Board in its sole discretion (a “Termination”). On the effective date of any such Termination:

	
 
	
a.
	
Executive shall cease to serve as Interim CEO and Interim President of the Company;

	
 
	
b.
	
Executive’s Base Salary shall revert to 1.2x such amount as in effect immediately prior to the Effective Date; and

	
 
	
c.
	
this Letter Agreement shall cease to be of any further force or effect (except for Section 4.2(b) above which shall remain in effect).

For the avoidance of doubt, nothing set forth in this Letter Agreement shall modify or amend either party’s right to terminate the Employment Agreement (and, in doing so, this Letter Agreement) pursuant to and in accordance with the terms of Section 2 of the Employment Agreement. 

	
 
	
5.
	
Each of Executive and the Company hereby acknowledge and agree that this Letter Agreement does not affect, or otherwise constitute a waiver of, any provisions of the Employment Agreement, except as specifically set forth herein. Each of Executive and the Company hereby acknowledge and agree that the Employment Agreement remains in full force and effect during the Term, except as specifically modified by this Letter Agreement.

	
 
	
6.
	
Executive hereby acknowledges and agrees that, upon Termination, this Letter Agreement shall cease to be of any further force or effect, and the terms of the Employment Agreement as in effect immediately prior to the Effective Date shall be reinstated; provided, that the terms of Section 4.2(b) above shall remain in effect.

	
 
	
7.
	
This Letter Agreement and the Employment Agreement contain the entire agreement and understanding between Executive and the Company with respect to the subject matter hereof. 

	
 
	
8.
	
This Letter Agreement shall not be changed, unless in writing and signed by both Executive and the Company.

	
 
	
9.
	
This Letter Agreement will be construed in accordance with the laws of the Commonwealth of Pennsylvania, which, together with the laws of the United States of America, will control any and all disputes or questions of interpretation arising hereunder.

	
 
	
10.
	
This Letter Agreement may be executed in two (2) or more counterparts, each of which will be deemed to be an original of this Letter Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  This Letter Agreement, to the extent signed and delivered by means of a facsimile machine or by other electronic transmission of a manual signature (by portable document format (.pdf) or other method that enables the recipient to reproduce a copy of the manual signature), 

 

Exhibit 10.20.2 

 

	
 
		
shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  Neither party hereto shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or other electronic transmission as a defense to the formation of a contract and each such party forever waives any such defense.

 

[Signatures Follow]

 

 

If all of the above is satisfactory, please sign this Letter Agreement in the space indicated below and return it to the Company.  

 

Sincerely,

 

RAIT Financial Trust

By: /s/ Michael J. Malter
    Name:Michael J. Malter
    Title:Chairman of the Board of Trustees

 

Acknowledged and Agreed:

 

 

 

/s/ John J. Reyle 

John J. Reyle

 

 

 

[Signature Page to Interim CEO Letter Agreement]ras-ex10212_501.htm

Exhibit 10.21.2

 

 

 

March 13, 2018

Personal and Confidential

	
	
 

Mr. Glenn Riis

[Address Omitted]

Dear Glenn:

As discussed with you yesterday, I write to: confirm your desire to terminate your employment with RAIT Financial Trust (“RAIT”); provide information about your salary, benefits, and other administrative matters; and set forth a separation agreement and general release of claims for your consideration. 

A.Administrative Information

1.Separation Date.  Your last day of employment will be March 15, 2018 (the “Separation Date”), after which you no longer will be employed by RAIT.  Your final paycheck will include all salary and your 2017 bonus payment in the gross amount of $275,000, all less required withholdings and deductions.

2.Benefits.  Your health benefits will continue through March 31, 2018.  Effective April 1, 2018, you may continue the health benefits that you elected in the last open enrollment in accordance with the Consolidated Omnibus Budget Reconciliation Act (“COBRA”).  You will receive a separate notice concerning your right to elect COBRA coverage and the cost of that coverage.  If you elect continuation coverage, you will be responsible for paying 100 percent of the premiums and administrative fees for continuation coverage.

3.Equity.  All equity awards granted to you may be exercised in accordance with the terms of the respective awards, agreements, and plans.

4.Other Benefits.  Except as expressly provided herein or to the extent the terms of any RAIT employee benefit program as of the date hereof provides for your continued participation after the Separation Date, your participation in, coverage by, and entitlement to all compensation, fringe benefits and employee benefit programs of RAIT will terminate upon the Separation Date.

5.Return of Property.  On or before the Separation Date, you will return to RAIT all RAIT property of any kind or character, which shall include, but not be limited to, all RAIT identification and credit cards, any equipment, books, keys, journals, records, publications, files, computers and computer disks, memoranda, data and documents of any kind or description (originals, copies, summaries, disks, files, etc.) that belong to or relate to RAIT or its business operations, including all confidential or proprietary information, and any other RAIT property in your possession or control.  In addition, you must also copy on a data carrier all data and programs on your personal computers, laptop or iPads, if any, to the extent such data and 

DMEAST #33813773 v3

 

Exhibit 10.21.2

 

programs were provided to you or stored for the performance of your services for RAIT, and thereafter delete all such data and programs from your personal computer, laptop or iPad.

B.Separation Agreement and General Release of Claims

In recognition of your service, and to assist you in transition to new employment, RAIT is offering you the following severance package.  In exchange for this severance package, you must sign and comply with this Severance Agreement and General Release of Claims (the “Agreement”).  As explained below, you have 21 days (plus a seven-day revocation period) to consider the terms of this offer.  (This severance package is in addition to any salary and benefits to which you are entitled through the Separation Date).

1.Severance Payment.  RAIT will pay you severance in the total gross amount of $525,000.  This severance amount, less applicable withholdings and deductions, will be paid on the first administratively practical RAIT payroll date follwing the Effective Date of this Agreement (defined below).

2.Release of Non-Compete Obligations.  RAIT agrees to release you from the non-competition obligations that would otherwise survive the termination of your employment contained in Section 4.1(a) of your April 21, 2017 Employment Agreement (the “Employment Agreement”).  You acknowledge and agree that the remaining provisions of Section 4 of the Employment Agreement relating to non-solicitation of RAIT customers, employees and consultants, intellectual property, confidentiality, and equitable relief shall remain in full force and effect, and you agree to abide by those provisions of the Employment Agreement. 

3.Consideration.  You acknowledge that you are entering into this Agreement, including the General Release of Claims, in consideration for the payment and benefits described in Sections B.1 and B.2, to which you would not otherwise be entitled.  You specifically acknowledge that this Agreement provides consideration for your execution of the General Release of Claims.  You hereby accept the terms of and agree to be bound by this Agreement.

4.General Release of Claims and Covenant Not to Sue.  FOR YOURSELF AND YOUR RESPECTIVE ADMINISTRATORS, EXECUTORS, AGENTS, BENEFICIARIES AND ASSIGNS, YOU AGREE TO WAIVE, RELEASE AND FOREVER DISCHARGE RAIT (AS DEFINED BELOW) OF AND FROM ANY AND ALL CLAIMS (AS DEFINED BELOW).  You further agree that should any other person, organization or entity file a lawsuit or arbitration to assert any such Claim, you will not seek any personal relief in such an action.  This General Release of Claims (“Release”) covers all Claims arising from the beginning of time up to and including the date you execute this Agreement. 

Exclusions:  Notwithstanding any other provision of this Release, the following are not barred by the Release:  (a) Claims relating to the validity of this Agreement; (b) Claims by either party to enforce this Agreement; and (c) Claims that legally may not be waived.  Further, it is understood and agreed that this Agreement does not bar your right to file an administrative charge with the Securities and Exchange Commission (SEC), the Equal Employment 

DMEAST #33813773 v3

 

Exhibit 10.21.2

 

Opportunity Commission (EEOC), or any other federal, state or local agency; prevent you from reporting to any government agency any concerns you may have regarding RAIT’s practices; or preclude your participation in an investigation by the SEC, EEOC, or any other federal, state or local agency, although the Agreement does bar your right to recover any personal relief (including monetary relief) if you or any person, organization, or entity asserts a charge or complaint on your behalf, including in a subsequent lawsuit or arbitration, except that you may receive an award from the SEC under the federal securities laws.  

 

The following provisions further explain this Release:

a.Definition of “Claims”.  Except as stated above, “Claims” includes without limitation all actions or demands of any kind that you now have or may have or claim to have in the future.  More specifically, Claims include rights, causes of action, damages, penalties, losses, attorneys’ fees, costs, expenses, obligations, agreements, judgments and all other liabilities of any kind or description whatsoever, either in law or in equity, whether known or unknown, suspected or unsuspected.

The nature of Claims covered by this Release includes without limitation all actions or demands in any way based on your employment with RAIT, the terms and conditions of such employment or your separation from employment.  More specifically, all of the following are among the types of Claims which, to the extent permitted by law, are waived and barred by this Release:

(i)Contract Claims (whether express or implied);

(ii)Tort Claims, such as for defamation or emotional distress;

(iii)Claims under federal, state and municipal laws, regulations, ordinance or court decisions of any kind;

(iv)Claims of discrimination, harassment or retaliation, whether based on race, color, religion, gender, sex, age, sexual orientation, handicap and/or disability, national origin, whistleblowing or any other legally protected class;

(v)Claims under the AGE DISCRIMINATION IN EMPLOYMENT ACT, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, and similar federal, state, and local laws, statutes, and ordinances;

(vi)Claims under the Employee Retirement Income Security Act, the Occupational Safety and Health Act and similar state and local laws; 

(vii)Claims for wages and benefits (including without limitation, bonuses, health and welfare benefits, vacation pay and other fringe-type benefits); 

(viii)Claims for wrongful discharge; and

(ix)Claims for attorney’s fees, litigation expenses and/or costs.

DMEAST #33813773 v3

 

Exhibit 10.21.2

 

The foregoing list is intended to be illustrative and not exhaustive.

b.You agree that this Release should be interpreted as broadly as possible to achieve your intention to waive all of your claims against RAIT.

c.Definition of “RAIT”.  For purposes of this Release, “RAIT” includes without limitation RAIT Financial Trust, and its respective past, present and future parents, affiliates, subsidiaries, divisions, predecessors, successors, assigns, employee benefit plans and trusts.  It also includes all past, present and future board members, managers, directors, officers, partners, agents, employees, attorneys, representatives, consultants, associates, fiduciaries, plan sponsors, administrators and trustees of each of the foregoing.

5.False Claims Representation.  You affirm that you have no information concerning any conduct involving RAIT, including those entities and individuals related to RAIT as defined in the Release above, that you have any reason to believe may be unlawful or that involves any false claims to the United States.  You understand that nothing in this Agreement prevents you from cooperating with any government investigation.  However, as set forth in the Release above, you agree that you cannot receive any monetary or personal gain from such participation.

6.Non-Disparagement/Neutral Reference.  You agree that you will not engage in any activity or make any statement that may disparage or reflect negatively on RAIT, including those entities and individuals related to RAIT as defined in the Release above.  In response to requests for information regarding you from any prospective employer, RAIT will, consistent with company policy, provide dates of employment and position(s) held.  You agree to direct all such requests for references to RAIT’s Director of Human Resources.

7.Confidentiality.  Until such time as it is publicly disclosed by RAIT, you agree to maintain the terms of this Agreement in the strictest confidence.  Until that time, you will not disclose or discuss any of the terms of this Agreement with anyone other than:  your immediate family members, financial advisor, accountant, and lawyer (provided they first agree not to disclose those terms to anyone else); the Internal Revenue Service; or pursuant to a subpoena or court order.  

8.Cooperation.  You agree to assist RAIT, upon its reasonable request, in participating in the preparation for, response to, prosecution and/or defense of any litigation, investigation or other matter arising out of or related to your employment with or duties while employed with RAIT.  If RAIT requires your cooperation in accordance with this provision, RAIT shall reimburse you for reasonable out-of-pocket expenses (including travel, lodging, meals and reasonable attorneys’ fees), subject to reasonable documentation.  In addition, before requiring such cooperation, the parties will agree to a reasonable hourly rate to compensate you for the time you incur.

9.No Admission of Liability.  Nothing contained in this Agreement or payment of any consideration pursuant to this Agreement is or shall in any event be construed as or deemed to be an admission of liability, fault or noncompliance with any federal, state or local statute, public policy, tort law, contract law, common law or wrongdoing on the part of RAIT.

DMEAST #33813773 v3

 

Exhibit 10.21.2

 

10.Consideration Period.  You acknowledge that you have been provided with a period of at least twenty-one (21) days to consider the terms of this offer from the date this Agreement first was presented to you.  You agree that any changes to this offer, whether material or immaterial, will not restart the running of the 21-day period.

You agree to notify RAIT of your acceptance of this Agreement by delivering a signed copy to RAIT, addressed to my attention, no later than April 4, 2018.

By signing and returning this Agreement, you acknowledge that the consideration period afforded you a reasonable period of time to consider fully each and every term of this Agreement, including the Release, and that you have given the terms full and complete consideration. 

11.Revocation Period.  You acknowledge that you have seven (7) days after signing this Agreement to revoke it if you choose to do so.  If you elect to revoke this Agreement, you must give written notice of such revocation to RAIT by delivering it to me in such a manner that it is actually received within the seven-day period.

12.Effective Date.  This Agreement will take effect on the first business day following the expiration of the Revocation Period, provided that you choose not to revoke it.

13.Advice to Consult Legal Representative.  RAIT recommends that you consult with legal counsel of your choosing, at your own expense, regarding entering into this Agreement.  You acknowledge that you have had an opportunity to review this Agreement with counsel.  You also may wish to seek advice concerning the tax treatment of any compensation, benefit, or award to which you may be entitled.  

14.Employee Certification - Validity of Agreement.  You, intending to be legally bound, certify and acknowledge that you have read carefully this Agreement and have executed it voluntarily and with full knowledge and understanding of its significance, meaning and binding effect and with the advice of counsel.  You further declare you are competent to understand the content and effect of this Agreement and that your decision to enter into this Agreement has not been influenced in any way by fraud, duress, coercion, mistake or misleading information.  You further certify that you have not relied on any information except what is set forth in this Agreement.

15.Assignment.  You agree that you may not assign your rights or obligations under this Agreement. You further agree that RAIT may assign this Agreement to a successor or assignee in connection with a merger, consolidation or sale or transfer of assets.

16.Headings.  The headings contained in this Agreement are not a part of the Agreement and are included solely for ease of reference.

17.Integration and Modification.  You declare and represent that no promise or agreement has been made to you other than those expressed herein. This Agreement, together with the surviving provisions of the Employment Agreement (as modified herein), constitutes the entire agreement of the parties and supersedes all prior agreements and understandings, whether oral or written, between them.

DMEAST #33813773 v3

 

Exhibit 10.21.2

 

18.Severability.  If any provision of this Agreement is or shall be declared invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall not be affected thereby and shall remain in full force and effect.

19.Governing Law.  Except to the extent any such laws are preempted by Federal law, the parties agree that the terms of this Agreement will be governed by the laws of the Commonwealth of Pennsylvania without giving effect to the choice of laws principles of any state.  Any action, suit, or other legal proceeding which is commenced to resolve any matter arising under or relating to any provision of this Agreement shall be commenced only in a court of the Commonwealth of Pennsylvania (or, if appropriate, a federal court located within the Commonwealth of Pennsylvania), and you consent to the jurisdiction of such a court.

 

If the above is agreeable to you, please sign this Agreement below and return it to my attention no later than April 4, 2018.  

Sincerely,

 

/s/ Jamie Reyle

 

Jamie Reyle

Interim Chief Executive Officer

Interim President

General Counsel

 

 

Agreed to and accepted by the undersigned this 14th day of March, 2018.

 

 

/s/ Glenn Riis

Glenn Riis

 

DMEAST #33813773 v3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00281-of-00352.parquet"}]]