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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	March 31, 2015
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	RAIT Financial Trust
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	Maryland
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	1-14760
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	23-2919819
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	2929 Arch St., 17th Floor, Philadelphia, Pennsylvania
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	&nbsp;
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	19104
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	(215) 243-9000
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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    <TD width="1%" nowrap align="right"><FONT style="font-size: 10pt"><B>Item&nbsp;5.02</B></FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 10pt">Departure of Directors or Certain Officers; Election of Directors; Appointment of
<B>Certain Officers; Compensatory Arrangements of Certain Officers.</B></FONT></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">(e)&nbsp;Effective March&nbsp;31, 2015, the Compensation Committee (the &#147;<U>Compensation Committee</U>&#148;) of
the Board of Trustees of RAIT Financial Trust (&#147;<U>RAIT</U>&#148;) approved two new compensation plans
for three of RAIT&#146;s executive officers (the &#147;<U>Eligible Officers</U>&#148;) intended, with certain
exceptions, to qualify as &#147;qualified performance-based compensation&#148; under section 162(m) of
Internal Revenue Code and Article&nbsp;IX of RAIT&#146;s 2012 Incentive Award Plan (the &#147;2012 Plan&#148;) and made
awards pursuant to the two new compensation plans to the Eligible Officers. The Compensation
Committee adopted a 2015 Annual Incentive Compensation Plan (the &#147;<U>Annual Cash Bonus
Plan</U>&#148;)<U> </U>pursuant to the 2012 Plan and made the awards thereunder (the &#147;<U>Target Cash
Bonus Awards</U>&#148;) to the Eligible Officers setting forth the basis on which the Eligible Officers
could earn cash bonuses for 2015 with the intent of changing the Compensation Committee&#146;s approach
in recent years of making discretionary annual cash bonus awards. In addition, the Compensation
Committee adopted a 2015 Long Term Incentive Plan (the &#147;<U>Long Term Equity Plan</U>&#148;) pursuant to
the 2012 Plan and made the awards thereunder (the <U>&#147;Long Term Equity Awards</U>&#148;) to the
Eligible Officers setting forth the basis on which the Eligible Officers could earn equity
compensation for the years 2015 through 2018 with the intent of changing the Compensation
Committee&#146;s prior approach making purely time-vested equity compensation awards. Each of the
Annual Cash Bonus Plan and the Long Term Equity Plan was adopted pursuant to and in accordance with
the terms of the 2012 Plan, which was previously approved by the shareholders of RAIT. The
Eligible Officers are Scott F. Schaeffer, RAIT&#146;s Chairman of the Board and Chief Executive Officer,
Scott L. N. Davidson, RAIT&#146;s President, and James J. Sebra, RAIT&#146;s Chief Financial Officer and
Treasurer. The terms of the Annual Cash Bonus Plan, the Target Cash Bonus Awards, the Long Term
Equity Plan and the Long Term Equity Awards are described below.


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    <TD width="1%" nowrap align="right">&nbsp;</TD>
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    <TD><U><B>Target Cash Bonus Awards</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Beginning with RAIT&#146;s 2015 fiscal year, the Compensation Committee is replacing its prior cash
bonus arrangements for the Eligible Officers with the new Annual Cash Bonus Plan and Target Cash
Bonus Awards that it believes will incentivize the Eligible Officers to produce a high level of
operational performance by explicitly linking the majority of their annual bonuses to three metrics
that the Compensation Committee believes are important drivers in the creation of shareholder
value, while also rewarding more subjective elements of each Eligible Officer&#146;s performance through
a reduced discretionary component. This new program includes the following elements:


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    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Compensation Committee will set forth annually a target cash bonus award level for
each Eligible Officer participant in a Target Cash Bonus Award composed of two components,
as described below.</TD>
</TR>

</TABLE>


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    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U>Quantitative Bonus Award</U>&#148; &#151; the Quantitative Bonus Award
component of the Target Cash Bonus Award that may be earned by each Eligible
Officer will be equal to 75% of the Target Cash Bonus Award for each participant,
to be determined by RAIT&#146;s performance relative to specified objective performance
criteria established by the Compensation Committee as described below. The actual
Quantitative Bonus Award earned by a participant may range from 0% and 150% of
target based on actual performance for the year.</TD>
</TR>

</TABLE>


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    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U>Qualitative Bonus Award</U>&#148; &#150; the Qualitative Bonus Award
component of the Target Cash Bonus Award that may be earned by each Eligible
Officer will be equal to 25% of the Target Cash Bonus Award for each participant,
to be determined based on the Compensation Committee&#146;s subjective evaluation of
such participant&#146;s performance relative to specified individual and/or
collaborative criteria established by the Compensation Committee for each Eligible
Officer, as described below. The actual Qualitative Bonus Award earned by a
participant may range from 0% and 150% of target based on actual performance for
the year.</TD>
</TR>




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<P align="center" style="font-size: 10pt; display: none">1
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</TABLE>


<P align="left" style="font-size: 10pt"><I>2015 Target Cash Bonus Award Levels</I>


<P align="left" style="font-size: 10pt">The Target Cash Bonus Award levels set by the Compensation Committee for each of RAIT&#146;s Eligible
Officers based on 2015 performance are as follows:

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    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Eligible Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2015 Quantitative</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2015 Qualitative</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Total</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Bonus Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Bonus Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2015 Target Cash</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Bonus</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Award</B></TD>
</TR>

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<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scott F. Schaeffer,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">900,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">300,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,200,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scott L. N. Davidson,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">862,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">287,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,150,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">James J. Sebra,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">187,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">62,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Chief Financial Officer and Treasurer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><I>2015 Quantitative Bonus Award Criteria</I>


<P align="left" style="font-size: 10pt">The Compensation Committee has established the following objective performance metrics to be
utilized in determining any payout with respect to the Quantitative Bonus Award portion of the
Target Cash Bonus Award weighted based on these performance measurements:


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Cash Available for Distribution (&#147;CAD&#148;) per share, calculated as that term has been used
by RAIT in its public reporting, subject to a limitation of $0.26 per share on the amount
of CAD that may result from the gain on the sale of RAIT owned real property that may be
included in calculating CAD for purposes of performance pursuant to this plan.</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Return on equity (&#147;<U>ROE</U>&#148;), calculated by dividing CAD per share by average
Adjusted Book Value (&#147;<U>ABV</U>&#148;), and</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Adjusted Book Value (&#147;ABV&#148;) per share, calculated as that term has been used by RAIT in
its public reporting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">The actual Quantitative Bonus Award payment realized by an Eligible Officer for 2015 with respect
to each applicable metric will depend on RAIT&#146;s achievement of at least a &#147;Threshold&#148; level of
performance established by the Compensation Committee with respect to that metric. There will be
no Quantitative Bonus Award payable for that metric in the event RAIT achieves less than the
Threshold level for the applicable annual performance period. RAIT&#146;s achievement of the Threshold
level for a designated metric will result in a payout of 50% of the proportion of the Quantitative
Bonus Award allocated to that metric; the achievement of the Target level for a designated metric
will result in a payout of 100% of the proportion of the Quantitative Bonus Award allocated to that
metric; and the achievement of the Maximum level for a designated metric will result in a payout of
150% of the proportion of the Quantitative Bonus Award allocated to that metric. If the calculated
percentage is between Threshold and Target or between Target and Maximum for an annual performance
period, then the earned percentage will be prorated. The number of shares used for any per share
metric shall the weighted average number of shares outstanding for the relevant period. The
achievement of these levels and allocated payments are illustrated by the following table:

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    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Quantitative Metric</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Weighting</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Resulting Cash Payout*</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">CAD per Share
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Threshold
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Target
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maximum
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">ROE
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Threshold
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Target
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maximum
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">ABV per Share
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Threshold
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Target
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">100</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Maximum
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><I>2015 Qualitative Bonus Award Criteria</I>


<P align="left" style="font-size: 10pt">The Qualitative Bonus Award portion of each Eligible Officer&#146;s Target Cash Bonus, which will be the
remaining 25% of the overall target cash bonus, will be based on the Compensation Committee&#146;s
subjective evaluation of the Eligible Officer&#146;s performance relative to achieving specified
individual criteria established for 2015 for each participant, which the Compensation Committee has
determined are also important elements of each Eligible Officer&#146;s contribution to the creation of
overall shareholder value.


<P align="left" style="font-size: 10pt"><I>Target Cash Bonus Award Payments</I>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All Target Cash Bonus Award payments will be made in the year following the completion
of the annual performance period to which the Target Cash Bonus Award payment relates. The
actual payment to each Eligible Officer will be made as soon as practical after final
certification of the underlying performance results and approval of such payment by the
Compensation Committee; provided, however, that, in order to comply with certain rules
concerning the regulation of deferred compensation under the Internal Revenue Code of 1986,
as amended, in no event will any such payment be made later than March&nbsp;15 of such year.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Whether an Eligible Officer who terminates employment with RAIT prior to the conclusion
of any applicable performance period with respect to which an applicable Target Cash Bonus
Award payment relates will receive an Target Cash Bonus Award payment will be determined by
the terms of each Eligible Officer&#146;s respective employment agreement. These employment
agreements generally provide that if defined conditions are met, in the event of the
Eligible Officer&#146;s death, disability, termination without cause, resignation for good
reason or, under two Eligible Officers&#146; employment agreements, a change of control followed
by termination in defined circumstances, the Eligible Officer would receive a lump sum cash
payment equal to a pro rata portion of such Eligible Officer&#146;s target annual cash bonus for
and applicable to the fiscal year of his termination.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An individual who becomes an Eligible Officer, pursuant to SEC rules, after the
beginning of an applicable annual incentive period, may be considered for a pro-rated bonus
payment under the Annual Cash Bonus Plan in the discretion of the Compensation Committee.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Long Term Equity Awards</B></U></TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Beginning with the 2015 fiscal year, the Compensation Committee also is supplementing purely
time-vested Common Share awards and Share Appreciation Rights with new Long Term Equity Awards for
the Eligible Officers under the Long Term Equity Plan, which will consist of the following two
components:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U>Performance Share Unit Awards</U>&#148; &#151; 75% of the target value of each Eligible
Officer&#146;s annual Long Term Equity Award will consist of a new Performance Share Unit Award
authorized by the Compensation Committee under the Long Term Equity Plan adopted pursuant
to the 2012 Plan, with the number of RAIT common shares of beneficial interest (&#147;<U>Common
Shares</U>&#148;) issued or their equivalent value in cash paid, at the Compensation Committee&#146;s
option, at the conclusion of the relevant performance period applicable to each Performance
Share Unit Award to be determined (a)&nbsp;for 80% of the awards, by RAIT&#146;s performance
relative to three long term performance metrics established by the Compensation Committee,
as described in greater detail below, and (b)&nbsp;for 20% of the awards, by the Compensation
Committee&#146;s subjective evaluation of the Eligible Officer&#146;s performance relative to
achieving specified individual and/or collaborative strategic objectives for the relevant
performance period, which the Compensation Committee has determined are also important
elements of each Eligible Officer&#146;s contribution to the creation of overall shareholder
value. The actual number of Performance Share Units earned by a participant may range from
0% and 150% of target based on actual performance for the performance period. The
performance based awards vest 50% at the end of year 3 based on performance for 2015-2017,
and the 50% balance, consisting of the same number of shares that were awarded after year
3, become time vesting and vest at the end of year 4, subject to forfeiture in such year
only in the event RAIT has terminated the Eligible Officer&#146;s employment for cause or the
Eligible Officer has resigned without good reason as determined, in each situation, under
such Eligible Officer&#146;s employment agreement<FONT style="font-size: 12pt">.</FONT><FONT style="font-size: 10pt"> The Compensation Committee
currently intends to redeem any vested Performance Share Units with Common Shares, subject
to the availability of Common Shares under the 2012 Plan at the time of vesting.</FONT></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U>Annual Restricted Share Awards</U>&#148; &#150; 25% of the target value of each Eligible
Officer&#146;s Long Term Equity Awards will consist of a grant of time-vesting Restricted Shares
determined by dividing the dollar value of that portion of the annual Long Term Equity
Award allocated to such Restricted Shares by the closing price of a Common Share on the New
York Stock Exchange on the date of grant.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">The Compensation Committee continues to view Long Term Equity Awards as a supplement to annual
bonuses under the Annual Cash Bonus Plan, which increases the alignment of the Eligible Officers&#146;
economic interests with those of shareholders and incentivizes such officers to manage RAIT with a
view towards maximizing long-term shareholder value. Accordingly, while the Long Term Equity
Awards will include both a time-vesting and a performance based component, the allocation will be
weighted more heavily towards the Performance Share Unit Awards described below. For 2015 and
future years, Performance Share Unit Awards will be made on a rolling three-year basis with a
Performance Based Unit Award included as an element of each Eligible Officer&#146;s Long Term Equity
Award.


<P align="left" style="font-size: 10pt"><I>Structure of Performance Share Unit Awards</I>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of Performance Share Units included in the Performance Share Unit Award made
at the beginning of a performance period will be determined by dividing the maximum dollar
value of that portion of the annual Long Term Equity Award allocated to such Performance
Share Unit Award by the closing price of a Common Share on the New York Stock Exchange on
the date of grant.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of Common Shares issued, or their equivalent value in cash paid, at the
Compensation Committee&#146;s option, to an Eligible Officer upon the maturity of a Performance
Share Unit Award at the end of the relevant performance period will depend on RAIT&#146;s
achievement of at least a &#147;Threshold&#148; level of three metrics: (1)&nbsp;Total Shareholder Return
or &#147;<U>TSR</U>&#148; (stock price appreciation plus aggregate dividends) as compared to a peer
group of public companies (the &#147;<U>TSR Performance Peers</U>&#148;) over the same time period,
using the relative percentile ranking approach for such comparison, (2)&nbsp;TSR as compared to
the TSR for the FTSE NAREIT Mortgage REIT Index (the &#147;<U>NAREIT Mortgage Index</U>&#148;), and
(3)&nbsp;TSR for holders of Common Shares on an absolute basis.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">The &#147;Threshold,&#148; &#147;Target,&#148; and &#147;Maximum&#148; benchmarks to be established for the TSR achieved by RAIT
over each relevant three-year performance period in comparison to the performance metrics listed
below and the resulting impact on the number of shares earned by each Eligible Officer upon the
maturity of Performance Share Units at the conclusion of each three-year performance period, is
summarized in the following table:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Metric</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Weighting</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Threshold</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Target</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Maximum</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>0.5x Payout</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1x Payout</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>1.5x Payout</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Relative 3-Year TSR</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>vs. TSR Performance<BR>
Peers</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">30<sup>th</sup><BR>
Percentile
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">50<sup>th</sup><BR>
Percentile
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">80<sup>th</sup><BR>
Percentile
</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Relative 3-Year TSR<BR>
vs. NAREIT Mortgage<BR>
Index</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><BR>
20%
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><BR>
30<sup>th</sup><BR>
Percentile
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><BR>
50<sup>th</sup><BR>
Percentile
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top"><BR>
80<sup>th</sup><BR>
Percentile
</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Absolute 3-Year TSR</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.0</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37.0</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52.0</TD>
    <TD nowrap valign="top">%</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD valign="top"><B>Strategic Objectives</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD nowrap valign="top">%</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap valign="top" align="left">Subjective</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="11" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">No awards will be earned if below threshold performance is achieved for a particular metric.


<P align="left" style="font-size: 10pt">If performance falls between Threshold and Target or Target and Maximum for any performance period,
then the number of Performance Share Units earned will be prorated.


<P align="left" style="font-size: 10pt"><I>Structure of Annual Restricted Share Awards</I>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As noted above, beginning with the implementation of this new program, the Compensation
Committee will annually determine and grant a Long Term Equity Award to each Eligible
Officer. At the initial date of grant, 25% of the target value of each Eligible Officer&#146;s
Long Term Equity Awards will be allocated to an Annual Restricted Share Award.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of shares issued with respect to the time-vesting Annual Restricted Share
component of each Long Term Equity Award will be determined by dividing the dollar value of
that portion of the annual Long Term Equity Award allocated to such Restricted Shares by
the closing price of a Common Share on the New York Stock Exchange on the date of grant.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Common Shares subject to the Annual Restricted Share Awards will vest 25% per annum on
the first four anniversaries from the date of grant.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Initial Grant of Long Term Equity Awards</I>


<P align="left" style="font-size: 10pt">Effective as of March&nbsp;31, 2015, the date on which the Compensation Committee approved the new Long
Term Incentive Program, each of the Eligible Officers was granted an initial Long Term Equity
Award, consisting of both a Performance Share Unit Award, having the target value shown in the
table below for the 2015 &#150; 2017 performance period, and an Annual Restricted Share Award having the
target value shown in the table below for fiscal year 2015:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Eligible Officer</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Target Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Target Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Target Value of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Initial Long Term</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Performance Share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Performance Share</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Annual Restricted</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Issued for Annual</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Equity Award</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Units Award</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Units Issued (1)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Award</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Restricted Share</B></TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Award(2)</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scott F. Schaeffer,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">750,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">250,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Scott L. N. Davidson,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">950,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">712,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">155,794</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">237,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,620</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">President</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">James J. Sebra,</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">125,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">93,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,499</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">31,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,555</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Chief Financial
Officer and Treasurer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of Performance Share Units granted in relation to the target value of each
Performance Share Unit Award was determined by multiplying such value by the maximum payout
ratio of 1.5 and dividing the result by the closing price of a Common Share on the New York
Stock Exchange on the date of grant, $6.86.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The number of Common Shares issued in relation to each Annual Restricted Share Award was
determined by dividing the dollar value of that portion of the annual Long Term Equity Award
allocated to such Restricted Shares by the closing price of a Common Share on the New York
Stock Exchange on the date of grant, $6.86.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Additional Terms of the Long Term Equity Awards</I>


<P align="left" style="font-size: 10pt">Dividends will be paid with respect to outstanding Restricted Share Awards, subject to forfeiture
prior to vesting. Dividend Equivalents will not be paid&nbsp;on the 50% of the Performance Share Unit
Awards that have met the 3&nbsp;year performance based criteria and have vested, but Dividend
Equivalents will be paid on the remaining 50 % of the Performance Share Unit Awards only for the
year during which they time vest, subject to forfeiture prior to vesting. No Dividend Equivalents
will be paid while the Performance Share Unit Awards are subject to performance criteria. Dividend
Equivalents will accrue only on the portion of the Performance Share Unit Awards which have met the
performance criteria and remain subject only to time vesting.&nbsp;


<P align="left" style="font-size: 10pt">The Restricted Share Awards will have voting rights and the Performance Share Unit Awards will not
have any voting rights.


<P align="left" style="font-size: 10pt">Any Eligible Officer whose employment is terminated will forfeit any unvested long term equity
awards except with respect to Performance Share Units in the event of a Qualified Termination as
described below and except where such Eligible Officer&#146;s employment agreement with RAIT provides
for accelerated vesting in defined circumstances upon a change of control of RAIT.


<P align="left" style="font-size: 10pt">If an Eligible Officer&#146;s employment is terminated due to death or disability and other than
voluntarily or for cause (as defined in the relevant employment agreement for each Eligible
Officer) (a &#147;<U>Qualified Termination</U>&#148;) prior to the conclusion of the 3-year performance
period applicable to such Eligible Officer&#146;s Performance Share Units, then such performance period
will be shortened to conclude on the date of such Qualified Termination (a &#147;<U>Shortened
Performance Period</U>&#148;).&nbsp; In such event, the Compensation Committee will determine within three
months after the date of such Qualified Termination the number of Performance Share Units earned by
such Eligible Officer, if any, for such Shortened Performance Period in accordance with the
performance criteria established for such award.&nbsp; The Eligible Officer&#146;s earned Performance Share
Units, if any, will vest as of the date that the Compensation Committee determines the achievement
of such performance criteria and will not be subject to the additional time based vesting period.
&nbsp;The number of Performance Share Units eligible to be earned shall be determined on a pro rata
basis by multiplying the number of Performance Share Units issued to such Eligible Officer by a
fraction, the numerator is the number of days in the Shortened Performance Period and the
denominator of which is the number of days in the original 3-year Performance Period.&nbsp; With respect
to earned Performance Share Units held by the Officer for which the Performance Period is complete
but for which the additional time-based vesting period is incomplete prior to the Eligible
Officer&#146;s Qualified Termination, any restrictions on such earned awards shall lapse and such earned
awards shall automatically become fully vested as of the date of such Qualified Termination.


<P align="left" style="font-size: 10pt"><U><B>Clawback Policy</B></U>


<P align="left" style="font-size: 10pt">Awards made under the new Annual Cash Bonus Plan and the Long Term Incentive Program for the
Eligible Officers will be subject to a clawback policy which will allow RAIT to recover amounts
paid to such officer pursuant to such awards to the extent that the Compensation Committee,
following an appropriate investigation and consideration of all relevant circumstances, determines
that such officer has engaged in fraud or willful misconduct that caused the requirement for a
material accounting restatement of RAIT&#146;s financial statements due to material noncompliance with
any financial reporting requirement (excluding any restatement due solely to a change in accounting
rules).


<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->

<P align="left" style="font-size: 10pt"><B>Item&nbsp;5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.</B>


<P align="left" style="font-size: 10pt">Effective April&nbsp;2, 2015, the Board of Trustees of RAIT (the &#147;<U>Board</U>&#148;) approved the amendment
of Section&nbsp;416 of RAIT&#146;s bylaws (the &#147;<U>Bylaws</U>&#148;). The Board amended Section&nbsp;416 of the Bylaws
to reduce the minimum number of trustees that must comprise any committee of the Board from two
trustees to one trustee. This summary is subject to and qualified in its entirety by reference to
the text of the First Amendment to the Bylaws of RAIT which is included as Exhibit&nbsp;3.1 to this
report and incorporated herein by reference.


<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>


<P align="left" style="font-size: 10pt"><FONT style="font-size: 12pt">(d)&nbsp;Exhibits.
</FONT>

<P align="left" style="font-size: 12pt">The exhibit filed as part of this Current Report on Form 8-K is identified in the Exhibit&nbsp;Index
immediately following the signature page of this report. Such Exhibit&nbsp;Index is incorporated herein
by reference.



<P align="center" style="font-size: 10pt; display: none">3




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<FONT SIZE="2">Top of the Form</FONT>
</B>
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<B>
	SIGNATURES
</B>
</FONT>
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<P ALIGN="LEFT">
<FONT SIZE="2">
	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
</FONT>
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	&nbsp;
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	&nbsp;
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<TD WIDTH="1%">
	&nbsp;
</TD>
<TD WIDTH="43%">
	&nbsp;
</TD>
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<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD COLSPAN="3" VALIGN="TOP" ALIGN="LEFT">
<FONT SIZE="2">
	RAIT Financial Trust
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
<I>
	April 6, 2015
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	By:
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	/s/ James J. Sebra
</I>
<BR>
</FONT>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<HR SIZE="1" NOSHADE>
</TD>
</TR>
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<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
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<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Name: James J. Sebra
</I>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
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<FONT SIZE="2">
	&nbsp;
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<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Title: Chief Financial Officer and Treasurer
</I>
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
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<FONT SIZE="2">Top of the Form</FONT>
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<FONT SIZE="2">
	Exhibit&nbsp;Index
</FONT>
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<B>
	Exhibit No.
</B>
</FONT>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Description
</B>
</FONT>
</TD>
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	3.1
</DIV>
</FONT>
</TD>
<TD WIDTH="15%">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
First Amendment to the Bylaws of RAIT.
</FONT>
</TD>
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RAIT Financial Trust (Form: 8-K)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
March 31, 2015
RAIT Financial Trust
__________________________________________
(Exact name of registrant as specified in its charter)
Maryland
1-14760
23-2919819
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation)
File Number)
Identification No.)
2929 Arch St., 17th Floor, Philadelphia, Pennsylvania
19104
_________________________________
(Address of principal executive offices)
___________
(Zip Code)
Registrant's telephone number, including area code:
(215) 243-9000
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Top of the Form
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Effective March 31, 2015, the Compensation Committee (the "
Compensation Committee
") of
the Board of Trustees of RAIT Financial Trust ("
RAIT
") approved two new compensation plans
for three of RAIT's executive officers (the "
Eligible Officers
") intended, with certain
exceptions, to qualify as "qualified performance-based compensation" under section 162(m) of
Internal Revenue Code and Article IX of RAIT's 2012 Incentive Award Plan (the "2012 Plan") and made
awards pursuant to the two new compensation plans to the Eligible Officers. The Compensation
Committee adopted a 2015 Annual Incentive Compensation Plan (the "
Annual Cash Bonus
Plan
")
pursuant to the 2012 Plan and made the awards thereunder (the "
Target Cash
Bonus Awards
") to the Eligible Officers setting forth the basis on which the Eligible Officers
could earn cash bonuses for 2015 with the intent of changing the Compensation Committee's approach
in recent years of making discretionary annual cash bonus awards. In addition, the Compensation
Committee adopted a 2015 Long Term Incentive Plan (the "
Long Term Equity Plan
") pursuant to
the 2012 Plan and made the awards thereunder (the
"Long Term Equity Awards
") to the
Eligible Officers setting forth the basis on which the Eligible Officers could earn equity
compensation for the years 2015 through 2018 with the intent of changing the Compensation
Committee's prior approach making purely time-vested equity compensation awards. Each of the
Annual Cash Bonus Plan and the Long Term Equity Plan was adopted pursuant to and in accordance with
the terms of the 2012 Plan, which was previously approved by the shareholders of RAIT. The
Eligible Officers are Scott F. Schaeffer, RAIT's Chairman of the Board and Chief Executive Officer,
Scott L. N. Davidson, RAIT's President, and James J. Sebra, RAIT's Chief Financial Officer and
Treasurer. The terms of the Annual Cash Bonus Plan, the Target Cash Bonus Awards, the Long Term
Equity Plan and the Long Term Equity Awards are described below.
Target Cash Bonus Awards
Beginning with RAIT's 2015 fiscal year, the Compensation Committee is replacing its prior cash
bonus arrangements for the Eligible Officers with the new Annual Cash Bonus Plan and Target Cash
Bonus Awards that it believes will incentivize the Eligible Officers to produce a high level of
operational performance by explicitly linking the majority of their annual bonuses to three metrics
that the Compensation Committee believes are important drivers in the creation of shareholder
value, while also rewarding more subjective elements of each Eligible Officer's performance through
a reduced discretionary component. This new program includes the following elements:
•
The Compensation Committee will set forth annually a target cash bonus award level for
each Eligible Officer participant in a Target Cash Bonus Award composed of two components,
as described below.
•
"
Quantitative Bonus Award
" — the Quantitative Bonus Award
component of the Target Cash Bonus Award that may be earned by each Eligible
Officer will be equal to 75% of the Target Cash Bonus Award for each participant,
to be determined by RAIT's performance relative to specified objective performance
criteria established by the Compensation Committee as described below. The actual
Quantitative Bonus Award earned by a participant may range from 0% and 150% of
target based on actual performance for the year.
•
"
Qualitative Bonus Award
" – the Qualitative Bonus Award
component of the Target Cash Bonus Award that may be earned by each Eligible
Officer will be equal to 25% of the Target Cash Bonus Award for each participant,
to be determined based on the Compensation Committee's subjective evaluation of
such participant's performance relative to specified individual and/or
collaborative criteria established by the Compensation Committee for each Eligible
Officer, as described below. The actual Qualitative Bonus Award earned by a
participant may range from 0% and 150% of target based on actual performance for
the year.
2015 Target Cash Bonus Award Levels
The Target Cash Bonus Award levels set by the Compensation Committee for each of RAIT's Eligible
Officers based on 2015 performance are as follows:
Eligible Officer
2015 Quantitative
2015 Qualitative
Total
Bonus Target
Bonus Target
2015 Target Cash
Bonus
Award
Scott F. Schaeffer,
$
900,000
$
300,000
$
1,200,000
Chief Executive Officer
Scott L. N. Davidson,
$
862,500
$
287,500
$
1,150,000
President
James J. Sebra,
$
187,500
$
62,500
$
250,000
Chief Financial Officer and Treasurer
2015 Quantitative Bonus Award Criteria
The Compensation Committee has established the following objective performance metrics to be
utilized in determining any payout with respect to the Quantitative Bonus Award portion of the
Target Cash Bonus Award weighted based on these performance measurements:
•
Cash Available for Distribution ("CAD") per share, calculated as that term has been used
by RAIT in its public reporting, subject to a limitation of $0.26 per share on the amount
of CAD that may result from the gain on the sale of RAIT owned real property that may be
included in calculating CAD for purposes of performance pursuant to this plan.
•
Return on equity ("
ROE
"), calculated by dividing CAD per share by average
Adjusted Book Value ("
ABV
"), and
•
Adjusted Book Value ("ABV") per share, calculated as that term has been used by RAIT in
its public reporting.
The actual Quantitative Bonus Award payment realized by an Eligible Officer for 2015 with respect
to each applicable metric will depend on RAIT's achievement of at least a "Threshold" level of
performance established by the Compensation Committee with respect to that metric. There will be
no Quantitative Bonus Award payable for that metric in the event RAIT achieves less than the
Threshold level for the applicable annual performance period. RAIT's achievement of the Threshold
level for a designated metric will result in a payout of 50% of the proportion of the Quantitative
Bonus Award allocated to that metric; the achievement of the Target level for a designated metric
will result in a payout of 100% of the proportion of the Quantitative Bonus Award allocated to that
metric; and the achievement of the Maximum level for a designated metric will result in a payout of
150% of the proportion of the Quantitative Bonus Award allocated to that metric. If the calculated
percentage is between Threshold and Target or between Target and Maximum for an annual performance
period, then the earned percentage will be prorated. The number of shares used for any per share
metric shall the weighted average number of shares outstanding for the relevant period. The
achievement of these levels and allocated payments are illustrated by the following table:
Quantitative Metric
Weighting
Range
Resulting Cash Payout*
CAD per Share
35
%
Threshold
50
%
Target
100
%
Maximum
150
%
ROE
20
%
Threshold
50
%
Target
100
%
Maximum
150
%
ABV per Share
20
%
Threshold
50
%
Target
100
%
Maximum
150
%
2015 Qualitative Bonus Award Criteria
The Qualitative Bonus Award portion of each Eligible Officer's Target Cash Bonus, which will be the
remaining 25% of the overall target cash bonus, will be based on the Compensation Committee's
subjective evaluation of the Eligible Officer's performance relative to achieving specified
individual criteria established for 2015 for each participant, which the Compensation Committee has
determined are also important elements of each Eligible Officer's contribution to the creation of
overall shareholder value.
Target Cash Bonus Award Payments
•
All Target Cash Bonus Award payments will be made in the year following the completion
of the annual performance period to which the Target Cash Bonus Award payment relates. The
actual payment to each Eligible Officer will be made as soon as practical after final
certification of the underlying performance results and approval of such payment by the
Compensation Committee; provided, however, that, in order to comply with certain rules
concerning the regulation of deferred compensation under the Internal Revenue Code of 1986,
as amended, in no event will any such payment be made later than March 15 of such year.
•
Whether an Eligible Officer who terminates employment with RAIT prior to the conclusion
of any applicable performance period with respect to which an applicable Target Cash Bonus
Award payment relates will receive an Target Cash Bonus Award payment will be determined by
the terms of each Eligible Officer's respective employment agreement. These employment
agreements generally provide that if defined conditions are met, in the event of the
Eligible Officer's death, disability, termination without cause, resignation for good
reason or, under two Eligible Officers' employment agreements, a change of control followed
by termination in defined circumstances, the Eligible Officer would receive a lump sum cash
payment equal to a pro rata portion of such Eligible Officer's target annual cash bonus for
and applicable to the fiscal year of his termination.
•
An individual who becomes an Eligible Officer, pursuant to SEC rules, after the
beginning of an applicable annual incentive period, may be considered for a pro-rated bonus
payment under the Annual Cash Bonus Plan in the discretion of the Compensation Committee.
Long Term Equity Awards
Beginning with the 2015 fiscal year, the Compensation Committee also is supplementing purely
time-vested Common Share awards and Share Appreciation Rights with new Long Term Equity Awards for
the Eligible Officers under the Long Term Equity Plan, which will consist of the following two
components:
•
"
Performance Share Unit Awards
" — 75% of the target value of each Eligible
Officer's annual Long Term Equity Award will consist of a new Performance Share Unit Award
authorized by the Compensation Committee under the Long Term Equity Plan adopted pursuant
to the 2012 Plan, with the number of RAIT common shares of beneficial interest ("
Common
Shares
") issued or their equivalent value in cash paid, at the Compensation Committee's
option, at the conclusion of the relevant performance period applicable to each Performance
Share Unit Award to be determined (a) for 80% of the awards, by RAIT's performance
relative to three long term performance metrics established by the Compensation Committee,
as described in greater detail below, and (b) for 20% of the awards, by the Compensation
Committee's subjective evaluation of the Eligible Officer's performance relative to
achieving specified individual and/or collaborative strategic objectives for the relevant
performance period, which the Compensation Committee has determined are also important
elements of each Eligible Officer's contribution to the creation of overall shareholder
value. The actual number of Performance Share Units earned by a participant may range from
0% and 150% of target based on actual performance for the performance period. The
performance based awards vest 50% at the end of year 3 based on performance for 2015-2017,
and the 50% balance, consisting of the same number of shares that were awarded after year
3, become time vesting and vest at the end of year 4, subject to forfeiture in such year
only in the event RAIT has terminated the Eligible Officer's employment for cause or the
Eligible Officer has resigned without good reason as determined, in each situation, under
such Eligible Officer's employment agreement
.
The Compensation Committee
currently intends to redeem any vested Performance Share Units with Common Shares, subject
to the availability of Common Shares under the 2012 Plan at the time of vesting.
•
"
Annual Restricted Share Awards
" – 25% of the target value of each Eligible
Officer's Long Term Equity Awards will consist of a grant of time-vesting Restricted Shares
determined by dividing the dollar value of that portion of the annual Long Term Equity
Award allocated to such Restricted Shares by the closing price of a Common Share on the New
York Stock Exchange on the date of grant.
The Compensation Committee continues to view Long Term Equity Awards as a supplement to annual
bonuses under the Annual Cash Bonus Plan, which increases the alignment of the Eligible Officers'
economic interests with those of shareholders and incentivizes such officers to manage RAIT with a
view towards maximizing long-term shareholder value. Accordingly, while the Long Term Equity
Awards will include both a time-vesting and a performance based component, the allocation will be
weighted more heavily towards the Performance Share Unit Awards described below. For 2015 and
future years, Performance Share Unit Awards will be made on a rolling three-year basis with a
Performance Based Unit Award included as an element of each Eligible Officer's Long Term Equity
Award.
Structure of Performance Share Unit Awards
•
The number of Performance Share Units included in the Performance Share Unit Award made
at the beginning of a performance period will be determined by dividing the maximum dollar
value of that portion of the annual Long Term Equity Award allocated to such Performance
Share Unit Award by the closing price of a Common Share on the New York Stock Exchange on
the date of grant.
•
The number of Common Shares issued, or their equivalent value in cash paid, at the
Compensation Committee's option, to an Eligible Officer upon the maturity of a Performance
Share Unit Award at the end of the relevant performance period will depend on RAIT's
achievement of at least a "Threshold" level of three metrics: (1) Total Shareholder Return
or "
TSR
" (stock price appreciation plus aggregate dividends) as compared to a peer
group of public companies (the "
TSR Performance Peers
") over the same time period,
using the relative percentile ranking approach for such comparison, (2) TSR as compared to
the TSR for the FTSE NAREIT Mortgage REIT Index (the "
NAREIT Mortgage Index
"), and
(3) TSR for holders of Common Shares on an absolute basis.
The "Threshold," "Target," and "Maximum" benchmarks to be established for the TSR achieved by RAIT
over each relevant three-year performance period in comparison to the performance metrics listed
below and the resulting impact on the number of shares earned by each Eligible Officer upon the
maturity of Performance Share Units at the conclusion of each three-year performance period, is
summarized in the following table:
Metric
Weighting
Threshold
Target
Maximum
0.5x Payout
1x Payout
1.5x Payout
Relative 3-Year TSR
vs. TSR Performance
Peers
40
%
30
th
Percentile
50
th
Percentile
80
th
Percentile
Relative 3-Year TSR
vs. NAREIT Mortgage
Index
20%
30
th
Percentile
50
th
Percentile
80
th
Percentile
Absolute 3-Year TSR
20
%
26.0
%
37.0
%
52.0
%
Strategic Objectives
20
%
Subjective
No awards will be earned if below threshold performance is achieved for a particular metric.
If performance falls between Threshold and Target or Target and Maximum for any performance period,
then the number of Performance Share Units earned will be prorated.
Structure of Annual Restricted Share Awards
•
As noted above, beginning with the implementation of this new program, the Compensation
Committee will annually determine and grant a Long Term Equity Award to each Eligible
Officer. At the initial date of grant, 25% of the target value of each Eligible Officer's
Long Term Equity Awards will be allocated to an Annual Restricted Share Award.
•
The number of shares issued with respect to the time-vesting Annual Restricted Share
component of each Long Term Equity Award will be determined by dividing the dollar value of
that portion of the annual Long Term Equity Award allocated to such Restricted Shares by
the closing price of a Common Share on the New York Stock Exchange on the date of grant.
•
Common Shares subject to the Annual Restricted Share Awards will vest 25% per annum on
the first four anniversaries from the date of grant.
Initial Grant of Long Term Equity Awards
Effective as of March 31, 2015, the date on which the Compensation Committee approved the new Long
Term Incentive Program, each of the Eligible Officers was granted an initial Long Term Equity
Award, consisting of both a Performance Share Unit Award, having the target value shown in the
table below for the 2015 – 2017 performance period, and an Annual Restricted Share Award having the
target value shown in the table below for fiscal year 2015:
Eligible Officer
Target Value of
Target Value of
Number of
Target Value of
Number of Shares
Initial Long Term
Performance Share
Performance Share
Annual Restricted
Issued for Annual
Equity Award
Units Award
Units Issued (1)
Award
Restricted Share
Award(2)
Scott F. Schaeffer,
$
1,000,000
$
750,000
163,994
$
250,000
36,443
Chief Executive Officer
Scott L. N. Davidson,
$
950,000
$
712,500
155,794
$
237,500
34,620
President
James J. Sebra,
$
125,000
$
93,750
20,499
$
31,250
4,555
Chief Financial
Officer and Treasurer
(1)
The number of Performance Share Units granted in relation to the target value of each
Performance Share Unit Award was determined by multiplying such value by the maximum payout
ratio of 1.5 and dividing the result by the closing price of a Common Share on the New York
Stock Exchange on the date of grant, $6.86.
(2)
The number of Common Shares issued in relation to each Annual Restricted Share Award was
determined by dividing the dollar value of that portion of the annual Long Term Equity Award
allocated to such Restricted Shares by the closing price of a Common Share on the New York
Stock Exchange on the date of grant, $6.86.
Additional Terms of the Long Term Equity Awards
Dividends will be paid with respect to outstanding Restricted Share Awards, subject to forfeiture
prior to vesting. Dividend Equivalents will not be paid on the 50% of the Performance Share Unit
Awards that have met the 3 year performance based criteria and have vested, but Dividend
Equivalents will be paid on the remaining 50 % of the Performance Share Unit Awards only for the
year during which they time vest, subject to forfeiture prior to vesting. No Dividend Equivalents
will be paid while the Performance Share Unit Awards are subject to performance criteria. Dividend
Equivalents will accrue only on the portion of the Performance Share Unit Awards which have met the
performance criteria and remain subject only to time vesting.
The Restricted Share Awards will have voting rights and the Performance Share Unit Awards will not
have any voting rights.
Any Eligible Officer whose employment is terminated will forfeit any unvested long term equity
awards except with respect to Performance Share Units in the event of a Qualified Termination as
described below and except where such Eligible Officer's employment agreement with RAIT provides
for accelerated vesting in defined circumstances upon a change of control of RAIT.
If an Eligible Officer's employment is terminated due to death or disability and other than
voluntarily or for cause (as defined in the relevant employment agreement for each Eligible
Officer) (a "
Qualified Termination
") prior to the conclusion of the 3-year performance
period applicable to such Eligible Officer's Performance Share Units, then such performance period
will be shortened to conclude on the date of such Qualified Termination (a "
Shortened
Performance Period
").  In such event, the Compensation Committee will determine within three
months after the date of such Qualified Termination the number of Performance Share Units earned by
such Eligible Officer, if any, for such Shortened Performance Period in accordance with the
performance criteria established for such award.  The Eligible Officer's earned Performance Share
Units, if any, will vest as of the date that the Compensation Committee determines the achievement
of such performance criteria and will not be subject to the additional time based vesting period.
 The number of Performance Share Units eligible to be earned shall be determined on a pro rata
basis by multiplying the number of Performance Share Units issued to such Eligible Officer by a
fraction, the numerator is the number of days in the Shortened Performance Period and the
denominator of which is the number of days in the original 3-year Performance Period.  With respect
to earned Performance Share Units held by the Officer for which the Performance Period is complete
but for which the additional time-based vesting period is incomplete prior to the Eligible
Officer's Qualified Termination, any restrictions on such earned awards shall lapse and such earned
awards shall automatically become fully vested as of the date of such Qualified Termination.
Clawback Policy
Awards made under the new Annual Cash Bonus Plan and the Long Term Incentive Program for the
Eligible Officers will be subject to a clawback policy which will allow RAIT to recover amounts
paid to such officer pursuant to such awards to the extent that the Compensation Committee,
following an appropriate investigation and consideration of all relevant circumstances, determines
that such officer has engaged in fraud or willful misconduct that caused the requirement for a
material accounting restatement of RAIT's financial statements due to material noncompliance with
any financial reporting requirement (excluding any restatement due solely to a change in accounting
rules).
Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
Effective April 2, 2015, the Board of Trustees of RAIT (the "
Board
") approved the amendment
of Section 416 of RAIT's bylaws (the "
Bylaws
"). The Board amended Section 416 of the Bylaws
to reduce the minimum number of trustees that must comprise any committee of the Board from two
trustees to one trustee. This summary is subject to and qualified in its entirety by reference to
the text of the First Amendment to the Bylaws of RAIT which is included as Exhibit 3.1 to this
report and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The exhibit filed as part of this Current Report on Form 8-K is identified in the Exhibit Index
immediately following the signature page of this report. Such Exhibit Index is incorporated herein
by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
RAIT Financial Trust
April 6, 2015
By:
/s/ James J. Sebra
Name: James J. Sebra
Title: Chief Financial Officer and Treasurer
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Exhibit Index
Exhibit No.
Description
3.1
First Amendment to the Bylaws of RAIT.