RAIT Financial Trust reported entering into that certain Securities and Asset Purchase Agreement, dated September 27, 2016, by and among RAIT, RAIT TRS, LLC, Jupiter Communities, LLC, the RAIT Selling Stockholders, Independence Realty Trust Inc. and Independence Realty Operating Partnership, LP, pursuant to which Independence Realty Trust will complete a management internalization and separation from RAIT and certain of its affiliates. In connection with the Internalization and the anticipated resignation of Scott F. Schaeffer as Chief Executive Officer of RAIT, and his subsequent service to RAIT as a consultant, on December 14, 2016, RAIT and Mr. Schaeffer entered into a separation agreement which provides for his resignation from RAIT, his compensation upon his resignation and other customary matters, as well as a consulting agreement which provides the terms of Mr. Schaeffer's service as a consultant to RAIT. Each of the Schaeffer Separation Agreement and the Schaeffer Consulting Agreement becomes effective as of the Second Closing Date.

The Schaeffer Separation Agreement provides that Mr. Schaeffer will resign as an employee of RAIT on the Second Closing Date, and shall cease to be a director, officer, or manager of RAIT and its subsidiaries and affiliates, as applicable, on such date. On December 14, 2016, in connection with the anticipated termination of James J. Sebra as Chief Financial Officer of RAIT, RAIT and Mr. Sebra entered into a separation agreement which provides for Mr. Sebra's resignation from RAIT, his compensation upon his resignation and other customary matters. The Sebra Separation Agreement provides that Mr. Sebra will remain CFO of RAIT until the later to occur of March 31, 2017, or the filing of RAIT's Annual Report on Form 10-K for the fiscal year ending December 31, 2016 with the U.S. Securities and Exchange Commission, at which time Mr. Sebra shall resign as CFO and from any other positions held by him.

If RAIT hires a new CFO prior to the resignation date, Mr. Sebra may resign at any time following such hire in the sole discretion of RAIT.