EX-10.2






GUARANTY




GUARANTY, dated as of December 14, 2012 (as amended, supplemented, or otherwise modified from
time to time, this “Guaranty”), made by RAIT FINANCIAL TRUST, a Maryland real estate
investment trust (the “Guarantor”), in favor of COLUMN FINANCIAL, INC. (the
“Buyer”).



RECITALS




Pursuant to the Master Repurchase Agreement, dated as of December 14, 2012 (as amended,
supplemented or otherwise modified from time to time, the “Repurchase Agreement”), among
RAIT CRE Conduit I, LLC (the “Seller”), the Guarantor and the Buyer, the Buyer has agreed
from time to time to enter into transactions in which the Seller agrees to transfer to Buyer
Eligible Assets against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to
transfer to Seller such Purchased Assets at a date certain or on demand, against the transfer of
funds by Seller. Each such transaction shall be referred to herein as a “Transaction”. It
is a condition precedent to the obligation of the Buyer to enter into Transactions under the
Repurchase Agreement that the Guarantor shall have executed and delivered this Guaranty to the
Buyer.



NOW, THEREFORE, in consideration of the foregoing premises, to induce the Buyer to
enter into the Repurchase Agreement and to enter into Transactions thereunder, the Guarantor hereby
agrees with the Buyer, as follows:



1. Defined Terms. (a) Unless otherwise defined herein, terms defined in the
Repurchase Agreement and used herein shall have the meaning given to them in the Repurchase
Agreement.



(b) For purposes of this Guaranty, “Obligations” shall mean all obligations and liabilities of
the Seller to the Buyer, whether direct or indirect, absolute or contingent, due or to become due,
or now existing or hereafter incurred, which may arise under, or out of or in connection with the
Repurchase Agreement and any other Program Agreements and any other document made, delivered or
given in connection therewith or herewith, whether on account of principal, interest, reimbursement
obligations, fees, indemnities, costs, expenses (including, without limitation, all fees and
disbursements of counsel to the Buyer that are required to be paid by Seller pursuant to the terms
of the Program Agreements and costs of enforcement of this Guaranty) or otherwise.



2. Guaranty.



(a) The Guarantor hereby unconditionally and irrevocably guarantees to the Buyer the
prompt and complete payment and performance by the Seller when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations.



(b) The Guarantor further agrees to pay any and all documented expenses (including, without
limitation, all reasonable fees and disbursements of counsel) which may be paid or incurred by the
Buyer in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Guaranty. This Guaranty shall remain in full force
and effect until the later of (i) the termination of the Repurchase Agreement or (ii) the
Obligations are paid in full, notwithstanding that from time to time prior thereto the Seller may
be free from any Obligations.



(c) No payment or payments made by the Seller or any other Person or received or collected by
the Buyer from the Seller or any other Person by virtue of any action or proceeding or any set-off
or appropriation or application, at any time or from time to time, in reduction of or in payment of
the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the
Guarantor hereunder which shall, notwithstanding any such payment or payments, remain liable for
the amount of the unpaid Obligations until the Obligations are paid in full.



(d) The Guarantor agrees that whenever, at any time, or from time to time, Guarantor shall
make any payment to the Buyer on account of Guarantor’s liability hereunder, the Guarantor will
notify the Buyer in writing that such payment is made under this Guaranty for such purpose.



3. Right of Set-off. The Buyer is hereby irrevocably authorized at any time and from
time to time without notice to the Guarantor, any such notice being hereby waived by the Guarantor,
to set off and appropriate and apply any and all monies and other property of the Guarantor,
deposits (general or special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute
or contingent, matured or unmatured, at any time held or owing by the Buyer or any affiliate
thereof to or for the credit or the account of Guarantor, or any part thereof in such amounts as
the Buyer may elect, on account of the Obligations and liabilities of the Guarantor hereunder and
claims of every nature and description of the Buyer against the Guarantor, in any currency, whether
arising hereunder, under the Repurchase Agreement or otherwise, as the Buyer may elect, whether or
not the Buyer has made any demand for payment. The Buyer shall notify the Guarantor promptly of
any such set-off and the application made by the Buyer, provided that the failure to give such
notice shall not affect the validity of such set-off and application. The rights of the Buyer
under this paragraph are in addition to other rights and remedies (including, without limitation,
other rights of set-off) which the Buyer may have.



4. Subrogation. Notwithstanding any payment or payments made by the Guarantor
hereunder or any set-off or application of funds of the Guarantor by the Buyer, the Guarantor shall
not be entitled to be subrogated to any of the rights of the Buyer against the Seller or any other
guarantor or any collateral security or guarantee or right of offset held by the Buyer for the
payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or
reimbursement from the Seller or any other guarantor in respect of payments made by the Guarantor
hereunder, until all amounts owing to the Buyer by the Seller on account of the Obligations are
paid in full and the Repurchase Agreement is terminated. If any amount shall be paid to the
Guarantor on account of such subrogation rights at any time when all of the Obligations shall not
have been paid in full, such amounts shall be held by the Guarantor in trust for the Buyer,
segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor,
be turned over to the Buyer in the exact form received by the Guarantor (duly indorsed by the
Guarantor to the Buyer, if required), to be applied against the Obligations, in such order as the
Buyer may determine.



5. Amendments, etc. with Respect to the Obligations. Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against the Guarantor, and
without notice to or further assent by the Guarantor, any demand for payment of any of the
Obligations made by the Buyer may be rescinded by the Buyer, and any of the Obligations continued,
and the Obligations, or the liability of any other party upon or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Buyer, and the Repurchase Agreement, and the other Program
Agreements and any other document in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Buyer and the Seller may deem advisable from time to time,
and any collateral security, guarantee or right of offset at any time held by the Buyer for the
payment of the Obligations may be sold, exchanged, waived, surrendered or released. The Buyer
shall have no obligation to protect, secure, perfect or insure any Lien at any time held by it as
security for the Obligations or for this Guaranty or any property subject thereto. When making any
demand hereunder against Guarantor, the Buyer may, but shall be under no obligation to, make a
similar demand on the Seller and any failure by the Buyer to make any such demand or to collect any
payments from the Seller or any release of the Seller shall not relieve Guarantor of its
obligations or liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of the Buyer against Guarantor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings.



6. Guaranty Absolute and Unconditional. (a) Guarantor waives any and all
notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or
proof of reliance by the Buyer upon this Guaranty or acceptance of this Guaranty; the Obligations,
and any of them, shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended or waived in reliance upon this Guaranty; and all dealings between the
Seller or the Guarantor, on the one hand, and the Buyer, on the other, shall likewise be
conclusively presumed to have been had or consummated in reliance upon this Guaranty. Guarantor
waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Seller or the Guarantor with respect to the Obligations. This Guaranty shall be
construed as a continuing, absolute and unconditional guarantee of payment without regard to (i)
the validity or enforceability of the Repurchase Agreement, the other Program Agreements, any of
the Obligations or any collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Buyer, (ii) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any time be available to
or be asserted by the Seller against the Buyer, or (iii) any other circumstance whatsoever (with or
without notice to or knowledge of the Seller or the Guarantor) which constitutes, or might be
construed to constitute, an equitable or legal discharge of the Seller for the Obligations, or of
Guarantor under this Guaranty, in bankruptcy or in any other instance. When pursuing its rights
and remedies hereunder against the Guarantor, the Buyer may, but shall be under no obligation, to
pursue such rights and remedies that they may have against the Seller or any other Person or
against any collateral security or guarantee for the Obligations or any right of offset with
respect thereto, and any failure by the Buyer to pursue such other rights or remedies or to collect
any payments from the Seller or any such other Person or to realize upon any such collateral
security or guarantee or to exercise any such right of offset, or any release of the Seller or any
such other Person or any such collateral security, guarantee or right of offset, shall not relieve
Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies,
whether express, implied or available as a matter of law, of the Buyer against the Guarantor. This
Guaranty shall remain in full force and effect and be binding in accordance with and to the extent
of its terms upon the Guarantor and their successors and assigns thereof, and shall inure to the
benefit of the Buyer, and successors, indorsees, transferees and assigns, until all the Obligations
and the obligations of the Guarantor under this Guaranty shall have been satisfied by payment in
full, notwithstanding that from time to time during the term of the Repurchase Agreement the Seller
may be free from any Obligations.



(b) Without limiting the generality of the foregoing, Guarantor hereby agrees, acknowledges,
and represents and warrants to the Buyer as follows:




(i) Guarantor hereby waives any defense arising by reason of, and any and all right to
assert against the Buyer any claim or defense based upon, an election of remedies by the
Buyer which in any manner impairs, affects, reduces, releases, destroys and/or extinguishes
Guarantor’s subrogation rights, rights to proceed against the Seller or any other guarantor
for reimbursement or contribution, and/or any other rights of the Guarantor to proceed
against the Seller, against any other guarantor, or against any other person or security.




(ii) Guarantor is presently informed of the financial condition of the Seller and of
all other circumstances which diligent inquiry would reveal and which bear upon the risk of
nonpayment of the Obligations. The Guarantor hereby covenants that it will make its own
investigation and will continue to keep itself informed of the Seller’s financial condition,
the status of other guarantors, if any, of all other circumstances which bear upon the risk
of nonpayment and that it will continue to rely upon sources other than the Buyer for such
information and will not rely upon the Buyer for any such information. Absent a written
request for such information by the Guarantor to the Buyer, Guarantor hereby waives its
right, if any, to require the Buyer to disclose to Guarantor any information which the Buyer
may now or hereafter acquire concerning such condition or circumstances including, but not
limited to, the release of or revocation by any other guarantor.




(iii) Guarantor has independently reviewed the Repurchase Agreement and related
agreements and has made an independent determination as to the validity and enforceability
thereof, and in executing and delivering this Guaranty to the Buyer, Guarantor is not in any
manner relying upon Buyer’s and Seller’s representations concerning the validity, and/or
enforceability, and/or attachment, and/or perfection of any Liens or security interests of
any kind or nature granted by the Seller or any other guarantor to the Buyer, now or at any
time and from time to time in the future.



7. Reinstatement. This Guaranty shall continue to be effective, or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the Buyer upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Seller or upon or as a result of the appointment
of a receiver, intervenor or conservator of, or trustee or similar officer for, the Seller or any
substantial part of its property, or otherwise, all as though such payments had not been made.



8. Payments. Guarantor hereby agrees that the Obligations will be paid to the Buyer
without set-off or counterclaim in U.S. Dollars.



9. Event of Default. If an Event of Default under the Repurchase Agreement shall have
occurred and be continuing, Guarantor agrees that, as between Guarantor and Buyer, the Obligations
may be declared to be due for purposes of this Guaranty notwithstanding any stay, injunction or
other prohibition which may prevent, delay or vitiate any such declaration as against a Seller and
that, in the event of any such declaration (or attempted declaration), such Obligations shall
forthwith become due by Guarantor for purposes of this Guaranty.



10. Severability. Any provision of this Guaranty which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.



11. Headings. The paragraph headings used in this Guaranty are for convenience of
reference only and are not to affect the construction hereof or be taken into consideration in the
interpretation hereof.



12. No Waiver; Cumulative Remedies. The Buyer shall not by any act (except by a
written instrument pursuant to paragraph 13 hereof), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event
of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the Buyer, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Buyer of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Buyer would otherwise have on any
future occasion. The rights and remedies herein provided are cumulative, may be exercised singly
or concurrently and are not exclusive of any rights or remedies provided by law.



13. Waivers and Amendments; Successors and Assigns; Governing Law. None of the terms
or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by
a written instrument executed by the Guarantor and the Buyer, provided that any provision of this
Guaranty may be waived by the Buyer in a letter or agreement executed by the Buyer or by facsimile
or electronic transmission from the Buyer. This Guaranty shall be binding upon the heirs, personal
representatives, successors and assigns of the Guarantor and shall inure to the benefit of the
Buyer and its respective successors and assigns.



14. Notices. Notices by the Buyer to Guarantor shall be given pursuant to Section 20
of the Repurchase Agreement.



15. Jurisdiction; Waiver of Trial by Jury.



(a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF
(OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).



(b) GUARANTOR HEREBY WAIVES TRIAL BY JURY. GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS
IN ANY ACTION OR PROCEEDING. GUARANTOR HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE TO,
EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING
OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.



16. Integration. This Guaranty represents the agreement of the Guarantor with respect
to the subject matter hereof and there are no promises or representations by the Buyer relative to
the subject matter hereof not reflected herein.



17. Acknowledgments. Guarantor hereby acknowledges that:



(a) Guarantor has been advised by counsel in the negotiation, execution and delivery of this
Guaranty and the other Program Agreements;



(b) the Buyer does not have any fiduciary relationship to Guarantor, and the relationship
between the Buyer and Guarantor is solely that of surety and creditor; and



(c) no joint venture exists between the Buyer and Guarantor or among the Buyer, the Seller and
Guarantor.



[ Signature pages follow ]



IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed and delivered
as of the date first above written.



RAIT FINANCIAL TRUST, as Guarantor



By: /s/ Kenneth R. Frappier

Name: Kenneth R. Frappier

Title: Executive Vice President