Document:

f10k2012ex10xxx_chinagins.htm

Exhibit 10.30

 

Commission processing contract

Party A: Tonghua Linyuan Grape Planting Co., Ltd

Party B:Tonghua Jinyuanshan Winery

Party B agrees to undertake the project of processing wine(sweet wine) for Tonghua Linyuan Grape Planting Co., Ltd.(Tonghua Linyuan). Both parties reached the following agreement with the principle of mutual benefit.

	
1.  

	
Products: Pearl in the Snow & ice wine.

	
2.  

	
Party A shall provide production procedures and documentary evidence on record from technical supervision departments before processing.

	
3.  

	
Planned production quantity for each batch shall be reported to supervision department one week in advance.

	
4.  

	
Party A provides the bottle, packing box and other raw and auxiliary materials. For the materials provided by Party B if necessary can be negotiated between both parties.

	
5.  

	
Party A sends technical quality control personnel to inspect the processing and quality. Party B produces according to the production standards (which must comply with the national standards) of the Party A.

	
6.  

	
Party B’s hygienic standard must meet the state standard.

	
7.  

	
Party B is required to achieve the quality standards provided by Party A and meets the mountain wine production standards of QB/1982-94.

	
8.  

	
Party B is responsible for the confidentiality of the production and technical information provided by Party A. The patents of trademark and carton copyright belong to Party A.

	
9.  

	
Qualified product is temporarily saved by Party B for a month, Party A shall take it within one month.

	
10.  

	
The attrition rate for processing wine for Party B is 5%, 0.3% for box and trademark, .5% for the bottle(normal standard bottle). Party B shall not be responsible for the damage caused by transport.

	
11.  

	
Processing fees and clearing method:Party A pays Jinyuanshan Winery RMB 1.00 a bottle for processing Pearl in the Snow and RMB 1.5 a bottle for processing ice wine.

	
12.  

	
Party A provides certifications of raw materials to Party B and indicates the sales region.

	
13.  

	
The raw and auxiliary materials and packages should be taken to Party B 10 days before processing and inform Party B the quantity of processing.

	
14.  

	
The duration of the contract is 5 years from May 20,2012 to May 19,2017. The other matters beyond this contract may be made into supplement contract after negotiation. If no satisfied solution can be found, any party may brings the case to local people’s court or local arbitration commission, where company located, for a judgment.

	
15.  

	
The contract is in duplicate with the same legal effect, each party holds one. This Contract will become effective when it is duly signed and stamped by both parties.

	
16.  

	
Party A can use the National industrial production license, Party A should print the name of Party B on the trademark.(allowed by quality supervision departments).

	
17.  

	
The tax generated through processing is borne by Party A.

 

Party A: Tonghua Linyuan Grape Planting Co., Ltd.

Party B: Tonghua Jinyuanshan Winery

 

May 20, 2012Unassociated Document

Exhibit 10.31

 

Commission processing contract

Party A: Tonghua Linyuan Grape Planting Co., Ltd

Party B:Tonghua Jinyuanshan Winery

Party B agrees to undertake the project of processing wine(sweet wine) for Tonghua Linyuan Grape Planting Co., Ltd.(Tonghua Linyuan). Both parties reached the following agreement with the principle of mutual benefit.

	
1.  

	
Products: Lin Yuan Red wine.

	
2.  

	
Party A shall provide production procedures and documentary evidence on record from technical supervision departments before processing.

	
3.  

	
Planned production quantity for each batch shall be reported to supervision department one week in advance.

	
4.  

	
Party A provides the bottle, packing box and other raw and auxiliary materials. For the materials provided by Party B if necessary can be negotiated between both parties.

	
5.  

	
Party A sends technical quality control personnel to inspect the processing and quality. Party B produces according to the production standards (which must comply with the national standards) of the Party A.

	
6.  

	
Party B’s hygienic standard must meet the state standard.

	
7.  

	
Party B is required to achieve the quality standards provided by Party A and meets the mountain wine production standards of QB/1982-94.

	
8.  

	
Party B is responsible for the confidentiality of the production and technical information provided by Party A. The patents of trademark and carton copyright belong to Party A.

	
9.  

	
Qualified product is temporarily saved by Party B for a month, Party A shall take it within one month.

	
10.  

	
The attrition rate for processing wine for Party B is 5%, 0.3% for box and trademark, .5% for the bottle(normal standard bottle). Party B shall not be responsible for the damage caused by transport.

	
11.  

	
Processing fees and clearing method:Party A pays Jinyuanshan Winery RMB 1.00 a bottle for processing LinYuan Red Wine. The clearing date will be further negotiated by both parties.

	
12.  

	
Party A provides certifications of raw materials to Party B and indicates the sales region.

	
13.  

	
The raw and auxiliary materials and packages should be taken to Party B 10 days before processing and inform Party B the quantity of processing.

	
14.  

	
The duration of the contract is 5 years from May 20,2012 to May 19,2017. The other matters beyond this contract may be made into supplement contract after negotiation. If no satisfied solution can be found, any party may brings the case to local people’s court or local arbitration commission, where company located, for a judgment.

	
15.  

	
The contract is in duplicate with the same legal effect, each party holds one. This Contract will become effective when it is duly signed and stamped by both parties.

	
16.  

	
Party A can use the National industrial production license, Party A should print the name of Party B on the trademark.(allowed by quality supervision departments)

	
17.  

	
The tax generated through processing is borne by Party A.

 

Party A: Tonghua Linyuan Grape Planting Co., Ltd.

Party B: Tonghua Jinyuanshan Winery

 

May 20, 2012EX-10.1

SECURITIES PURCHASE AGREEMENT

Dated as of October 1, 2012

by and among

RAIT FINANCIAL TRUST,

RAIT PARTNERSHIP, L.P.,

TABERNA REALTY FINANCE TRUST,

RAIT ASSET HOLDINGS IV, LLC

And

ARS VI INVESTOR I, LLC

TABLE OF CONTENTS

Page

	 	 	 
	ARTICLE I PURCHASE AND SALE OF SECURITIES

	Section 1.1.

Section 1.2.

	 	Purchase and Sale of Securities

Effective Date; Closing Dates

	 	 	 
	ARTICLE II DRAW DOWN TERMS

	Section 2.1.

Section 2.2.

Section 2.3.

Section 2.4.

Section 2.5.

Section 2.6.

	 	Draw Down Notices.

Securities Calculation

Reduction of Unfunded Commitment

Closing

Fee

Tax Allocations

	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

	Section 3.1.

Section 3.2.

Section 3.3.

Section 3.4.

Section 3.5.

Section 3.6.

	 	Organization and Standing of the Investor

Authorization and Power

No Conflicts

Investment Representations

Additional Investment Representations

Funding

	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE ISSUER PARTIES

	Section 4.1.

Section 4.2.

Section 4.3.

Section 4.4.

Section 4.5.

Section 4.6.

	 	Organization, Good Standing and Power

Authorization, Enforcement

Capitalization.

Organizational Documents

Issuance of Securities

No Conflicts

	 	 	 	Section 4.7. Commission Documents, Financial Statements and Other Public
Information.	 

	 	 	 
	Section 4.8.

Section 4.9.

Section 4.10.

Section 4.11.

Section 4.12.

Section 4.13.

Section 4.14.

Section 4.15.

Section 4.16.

Section 4.17.

Section 4.18.

Section 4.19.

Section 4.20.

Section 4.21.

Section 4.22.

Section 4.23.

Section 4.24.

Section 4.25.

Section 4.26.

Section 4.27.

Section 4.28.

Section 4.29.

	 	Off-Balance Sheet Arrangements

Subsidiaries.

No Material Adverse Effect

No Undisclosed Liabilities

Trading Market Limit

Assets and Real Property

Actions Pending

Compliance With Law

Certain Fees

Operation of Business.

Environmental Compliance

Material Agreements

Transactions With Affiliates

Securities Act

Employees

Investment Company Act Status

ERISA

Taxes

Insurance

REIT Status

Material Non-Public Information

Section 16 Matters

	 	 	 
	ARTICLE V COVENANTS

Section 5.1.

Section 5.2.

Section 5.3.

Section 5.4.

Section 5.5.

Section 5.6.

Section 5.7.

Section 5.8.

Section 5.9.

Section 5.10.

	 	

Securities Compliance

Registration and Listing

Compliance with Laws

Keeping of Records and Books of Account; Unlawful Payments.

Other Agreements and Other Financings

Certain Actions.

Certificates; Other Information.

Qualification as a REIT

Investment Company Act

Financial Covenants.

	 	 	 	Section 5.11. Maturity of Investments; New Investments and Modification of Existing
Investments	 

	 	 	 
	Section 5.12.

Section 5.13.

Section 5.14.

Section 5.15.

Section 5.16.

Section 5.17.

Section 5.18.

Section 5.19.

Section 5.20.

	 	Liquidation of NewSub

Securities

Additional Securities Restrictions

Stand-Still

Board of Trustee Matters.

HSR Act

Use of Proceeds

Restrictions on Transfer.

Notice of Draw Down Termination Event

	 	 	 
	ARTICLE VI OPINIONS OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND

	PURCHASE OF THE SECURITIES

	Section 6.1.

Section 6.2.

Section 6.3.

	 	Opinions of Counsel and Certificate

Conditions Precedent to the Obligation of the Issuer Parties

Conditions Precedent to the Obligation of the Investor
	ARTICLE VII TERMINATION

	Section 7.1.

Section 7.2.

	 	Term; Termination.

Effect of Termination

	 	 	 
	ARTICLE VIII INDEMNIFICATION

	Section 8.1.

Section 8.2.

Section 8.3.

Section 8.4.

Section 8.5.

	 	Indemnification by Issuer Parties

Indemnification by Investor

Contribution

Indemnification Procedures

Remedies Not Exclusive

	 	 	 
	ARTICLE IX MISCELLANEOUS

	Section 9.1.

Section 9.2.

Section 9.3.

Section 9.4.

Section 9.5.

Section 9.6.

Section 9.7.

Section 9.8.

Section 9.9.

Section 9.10.

Section 9.11.

Section 9.12.

Section 9.13.

Section 9.14.

Section 9.15.

	 	Fees and Expenses.

Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.

Entire Agreement; Amendment

Notices

Waivers

Headings

Assignment

Governing Law

Survival

Counterparts

Interpretation

Disclosure Schedule

Publicity

Severability

Further Assurances
	Schedules

	 	

	 

	 	

	Schedule 2.6.

Schedule 3.3

Section 4.3(c)

Section 4.3(d)

Section 4.3(e)

Section 4.3(f)

Section 4.3(g)

Section 4.3(h)

Section 4.9(a)

Section 4.14

Section 4.19

Section 4.20

Exhibits

	 	Tax Allocation

Investor No Conflicts

Capitalization

Capitalization – No Contracts

Capitalization – Voting

Capitalization – Compliance

Capitalization – No Registration Rights

Capitalization – No Dilution

Material Subsidiaries

Actions Pending

Material Contracts

Affiliate Transactions

	 

	 	

	Exhibit A

Exhibit B

Exhibit C

Exhibit D

Exhibit E

Exhibit F

Exhibit G

Exhibit H

Exhibit I

Exhibit J

Exhibit K

Exhibit L

Exhibit M

Exhibit N

Exhibit O

	 	Form of Articles Supplementary for the Series D Preferred Shares

Form of Registration Rights Agreement

Form of Draw Down Notice

Form of Warrant

Form of Common Share Appreciation Rights Agreement

Form of Quarterly Compliance Certificate

Form of Trustee Indemnification Agreement

Form of Tax Opinion

Form of Maryland Law Opinion

Form of General Closing Opinion

Form of Closing Certificate

Form of Draw Down Compliance Certificate

Form of Investor Representation Letter

Form of Net Worth Certificate

Form of Articles Supplementary for the Series E Preferred Shares

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT, made and entered into on this 1st day of
October, 2012 (this “Agreement”), by and among ARS VI INVESTOR I, LLC, a limited liability
company formed and existing under the laws of the State of Delaware (the “Investor”), RAIT
FINANCIAL TRUST, a real estate investment trust formed and existing under the laws of the State of
Maryland (the “Company”), RAIT PARTNERSHIP, L.P., a limited partnership formed and existing
under the laws of the State of Delaware (the “Operating Partnership”), TABERNA REALTY
FINANCE TRUST, a real estate investment trust formed and existing under the laws of the State of
Maryland (“Taberna”) and RAIT ASSET HOLDINGS IV, LLC, a limited liability company formed
and existing under the laws of the State of Delaware (“NewSub” and together with the
Company, the Operating Partnership and Taberna, the “Issuer Parties”). Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in Annex A
hereto.

RECITALS

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Issuer Parties may issue and sell to the Investor and the Investor shall thereupon
purchase from the Issuer Parties $100,000,000 face value of newly issued Series D Cumulative
Redeemable Preferred Shares, par value $0.01 per share, of the Company (the “Series D Preferred
Shares”), together with certain other securities as described herein, on a private placement
basis pursuant to an exemption from registration under the Securities Act;

WHEREAS, prior to, and in connection with, the execution of this Agreement, the Company had
filed with the State Department of Assessments and Taxation of the State of Maryland those certain
Articles Supplementary classifying certain Preferred Shares as the Series D Preferred Shares and
setting forth therein the preferences, rights, privileges, powers, restrictions, limitations and
other terms with respect thereto, in the form attached as Exhibit A hereto (the
“Articles Supplementary”);

WHEREAS, in consideration for the Investor’s execution and delivery of, and its performance of
its obligations under, this Agreement, the Company and the Investor are concurrently entering into
a registration rights agreement, substantially in the form attached as Exhibit B hereto
(the “Registration Rights Agreement”);

WHEREAS, as a material inducement to the Investor’s agreement to enter into this Agreement and
the Related Documents to which it is a party and to consummate the transactions contemplated hereby
and thereby, the Investor and the Operating Partnership are concurrently entering into the LLC
Agreement (as defined below) and NewSub will issue Subsidiary Preferred Units (as defined below) to
the Investor, on the terms, and subject to the conditions set forth herein; and

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

PURCHASE AND SALE OF SECURITIES

Section 1.1. Purchase and Sale of Securities. Upon the terms and subject to the conditions
of this Agreement, during the Investment Period, the Issuer Parties, in their discretion, may issue
and sell to the Investor $100,000,000 (the “Total Commitment”) in aggregate liquidation
preference amount of Series D Preferred Shares and related Securities by the delivery to the
Investor of not more than twenty (20) separate Draw Down Notices (unless the Investor and the
Company agree in writing that a different number of Drawn Down Notices may be delivered) as
provided in Article II hereof. Upon issuance in accordance with the terms of this Agreement, each
of the Securities will be duly authorized, validly issued, fully paid and non-assessable, and the
Common Shares underlying the Warrants, when issued in connection with the exercise of the Warrants
in accordance with the terms thereof, will be duly authorized, validly issued, fully paid and
non-assessable and the Series E Preferred Shares, when issued in a Series E Exchange in accordance
with the terms thereof, will be duly authorized, validly issued, fully paid and non-assessable.
The aggregate of all Drawn Down Amounts shall be $100,000,000.

Section 1.2. Effective Date; Closing Dates. This Agreement shall become effective and
binding upon delivery of counterpart signature pages of this Agreement executed by each of the
parties hereto, and by delivery of the Legal Opinions and the Closing Certificates of the Issuer
Parties as provided in Section 6.1 hereof, to the offices of Proskauer Rose LLP, Eleven
Times Square, New York, New York 10036, at 4:00 p.m. (New York time), on the Effective Date. In
consideration of and in express reliance upon the representations, warranties and covenants, and
otherwise upon the terms and subject to the conditions, of this Agreement, from and after the
Effective Date and during the Investment Period, the Issuer Parties shall issue and sell to the
Investor, and the Investor agrees to purchase from the Issuer Parties, the Securities in respect of
each Draw Down Notice. The issuance and sale of Securities to the Investor pursuant to any Draw
Down Notice shall occur at each Closing on the applicable Closing Date in accordance with
Section 2.4, provided in each case that all of the conditions precedent thereto set forth
in Article VI theretofore shall have been fulfilled or (to the extent permitted by
applicable law) waived.

ARTICLE II

DRAW DOWN TERMS

Subject to the satisfaction of the conditions set forth in this Agreement, the parties agree
(unless otherwise agreed upon by the parties in writing) as follows:

Section 2.1. Draw Down Notices.

(a) The Company may, from time to time in its sole discretion, provide to the Investor a Draw
Down notice, substantially in the form attached hereto as Exhibit C (the “Draw Down
Notice”). Each Draw Down Notice shall (i) be delivered to the Investor not later than 9:30
a.m. (New York time) at least ten (10) Business Days prior to the Closing Date specified in the
Draw Down Notice, (ii) specify the Draw Down Amount and (iii) designate the Closing Date. Upon the
terms and subject to the conditions of this Agreement, the Investor is obligated to accept each
Draw Down Notice prepared and delivered in accordance with the provisions of this Agreement, and to
purchase from the Issuer Parties the Securities issuable pursuant to and as set forth in such Draw
Down Notice. The date on which the Company delivers any Draw Down Notice in accordance with this
Section 2.1 hereinafter shall be referred to as a “Draw Down Exercise Date.”

(b) If on the Business Day that is ten (10) Business Days prior to the final Business Day of
the Investment Period, this Agreement is in effect and there remains an Unfunded Commitment, then,
subject to the conditions set forth herein, the Company shall (unless waived by the Investor in
writing) deliver to the Investor a Draw Down Notice in accordance with this Section 2.1
specifying the entire Unfunded Commitment as the Draw Down Amount and designating the final
Business Day of the Investment Period as the Closing Date for such Draw Down, and if the Company
fails to timely deliver such final Draw Down Notice, then only upon written notice from the
Investor to the Company, the Company shall be deemed to have delivered such Draw Down Notice in
accordance with this Section 2.1(b).

(c) Anything to the contrary in this Agreement notwithstanding, but subject to the Company’s
obligation to deliver a final Draw Down Notice pursuant to Section 2.1(b), (i) at no time
shall the Investor be required to purchase more than $25,000,000 worth of Securities in respect of
any single Draw Down Notice, (ii) at no time shall the Investor be required to purchase less than
$5,000,000 worth of Securities in respect of any single Draw Down Notice, (iii) the Draw Down
Amount shall be in minimum increments of $100,000 and (iv) the Company shall not deliver any Draw
Down Notice within ten (10) Business Days of a Closing Date with respect to another Draw Down
Notice.

(d) The parties hereto may modify any term that may apply to any Draw Down set forth in this
Article II by agreement in writing signed by the Company and the Investor.

Section 2.2. Securities Calculation. Pursuant to each Draw Down, the Issuer Parties shall
issue at each Closing to the Investor:

(a) That number of Series D Preferred Shares equal to the quotient of: (i) the total Draw Down
Amount divided by (ii) 25; and each Series D Preferred Share so issued shall be linked to a
Subsidiary Preferred Unit so issued at such Closing;

(b) That number of Subsidiary Preferred Units equal to the quotient of: (i) the total Draw
Down Amount divided by (ii) 25; and each Subsidiary Preferred Unit so issued shall be linked to a
Series D Preferred Share so issued at such Closing;

(c) A Warrant, substantially in the form of Exhibit D, to purchase that number of
Common Shares equal to: (i) 9,931,000 (as such number may be adjusted from time to time pursuant to
the terms of the Warrants) multiplied by (ii) a fraction, the numerator of which is the Draw Down
Amount and the denominator of which is $100,000,000; and

(d) Common Share Appreciation Rights, substantially in the form of Exhibit E, in
respect of that number of Common Shares equal to: (i) 6,735,667 (as such number may be adjusted
from time to time pursuant to the terms of the Common Share Appreciation Rights) multiplied by (ii)
a fraction, the numerator of which is the Draw Down Amount and the denominator of which is
$100,000,000;

For purposes of clarification, in no event shall the number of Common Shares that may actually be
issued hereunder, including upon exercise of the Warrants, exceed the Exchange Cap.

Section 2.3. Reduction of Unfunded Commitment. Concurrently with each Closing, the
Investor’s Unfunded Commitment under this Agreement automatically (and without the need for any
amendment to this Agreement) shall be reduced, on a dollar-for-dollar basis, by the total amount of
the Draw Down Amount paid to the Company at such Closing.

Section 2.4. Closing. The payment for, against simultaneous delivery of, Securities in
respect of each Draw Down shall be consummated (each, a “Closing”) on the Business Day set
forth in the Draw Down Notice with respect thereto, or on such other date as the parties may agree
in writing (each, a “Closing Date”). At each Closing, the Company shall deliver to the
Investor one or more certificates, in form and substance reasonably satisfactory to the Investor,
evidencing the Series D Preferred Shares, a Warrant and Common Share Appreciation Rights, and
NewSub shall deliver to the Investor one or more certificates, in form and substance reasonably
satisfactory to the Investor, evidencing the Subsidiary Preferred Units, in each case evidencing
that amount of such Securities as calculated in accordance with Section 2.2, against
simultaneous payment of the applicable Draw Down Amount to the Company’s designated account by wire
transfer of immediately available funds; provided, however, that if the Securities
are received by the Investor later than 1:00 p.m. (New York time), payment therefor shall be made
with next day funds.

Section 2.5. Fee. At each Closing, the Company shall pay to Almanac Realty Investors, LLC,
an Affiliate of the Investor, or such other Person affiliated with, and designated in writing by,
the Investor, a fee in the amount of four percent (4%) of the Draw Down Amount to be funded at such
Closing.

Section 2.6. Tax Allocations. The Issuer Parties and the Investor hereby agree that each
$1,000 of each Draw Down Amount shall be allocated for tax purposes among the Securities issued at
each Closing as specified in Schedule 2.6, with the result that the Series D Preferred
Shares will be subject to a redemption premium within the meaning of Code Section 305(c). The
Issuer Parties and the Investor further agree that the period over which the Series D Preferred
Shares would be redeemed, for purposes of determining (a) whether the redemption premium
constitutes a de minimis amount, within the meaning of Code Section 305(c)(1) and Treasury
Regulations Section 1.305-5(b), as determined under the principles of Code Section 1273(a)(3), and
(b) if the redemption premium exceeds a de minimis amount, the period over which constructive
distributions will be allocated, within the meaning of Code Section 305(c)(3) and Treasury
Regulations Section 1.305-5(b), under principles similar to the principles of Code Section 1272,
shall be in accordance with Schedule 2.6. The Issuer Parties and the Investor hereby agree
that for U.S. federal income tax purposes, NewSub will be treated as a disregarded entity wholly
owned by Operating Partnership and that Investor will not be treated as holding an economic
interest in NewSub. The Issuer Parties and the Investor acknowledge and agree that the formation
of NewSub and the issuance of the Subsidiary Preferred Units to the Investor is intended solely as
a credit enhancement to provide for an additional source of payment to the Investor in the event of
a default by Issuer with respect to the Company’s payment obligations in respect of the Series D
Preferred Shares and if there is no default, the Investor shall receive no distributions from
NewSub. The Investor intends, through the purchase of the Securities, to invest in all of the
business operations of the Company. The Issuer Parties and the Investor do not intend to join
together for the purpose of carrying on a business through NewSub or of sharing in the profits or
losses of NewSub. The Investor has contributed neither capital nor services to NewSub, and
Investor shall have no capital account in NewSub. The Issuer Parties and the Investor agree to
file all tax reports and returns in a manner that is consistent with this paragraph for all tax
purposes.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

The Investor hereby makes the following representations and warranties to the Issuer Parties:

Section 3.1. Organization and Standing of the Investor. The Investor is a limited
liability company duly formed, validly existing and in good standing under the laws of the State of
Delaware.

Section 3.2. Authorization and Power. The Investor has the requisite limited liability
company power and authority to enter into and perform its obligations under this Agreement and the
Related Documents and to purchase the Securities and acquire the Common Shares underlying the
Warrants when exercised, if applicable, in accordance with the terms hereof and thereof. The
execution, delivery and performance of this Agreement and the Related Documents by the Investor and
the consummation by it of the transactions contemplated hereby and thereby have been duly
authorized by all necessary limited liability company action and no further consent or
authorization of the Investor, its board, its managers or any of its equity owners is required.
This Agreement and each of the Related Documents has been duly executed and delivered by the
Investor. This Agreement and each of the Related Documents constitutes a valid and binding
obligation of the Investor enforceable against it in accordance with its terms.

Section 3.3. No Conflicts. The execution, delivery and performance by the Investor of this
Agreement and each of the Related Documents and the consummation by the Investor of the
transactions contemplated herein or therein do not and shall not (a) result in a violation of the
Organizational Documents of the Investor, (b) conflict with, constitute a default (or an event
which, with notice or lapse of time or both, would become a default) under, or give rise to any
rights of termination, amendment, acceleration or cancellation of, any material agreement,
mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Investor is a party or is bound, (c) create or impose any Lien on any property of the
Investor under any agreement or any commitment to which the Investor is party or under which the
Investor is bound or under which any of its properties or assets are bound or (d) result in a
violation of any federal, state, local or foreign law, statute, rule or regulation, or any order,
judgment or decree of any court or governmental agency (each, a “Law”) applicable to the
Investor or by which any of its properties or assets are bound or affected. Except as set forth on
Schedule 3.3, the Investor is not required under any Law applicable to the Investor to
obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under
this Agreement or the Related Documents or to purchase the Securities or acquire the Common Shares
underlying the Warrants in accordance with the terms hereof or thereof.

Section 3.4. Investment Representations. The Investor understands that none of the
Securities (or Common Shares issuable upon exercise of Warrants or Series E Preferred Shares
issuable in a Series E Exchange) have been registered under the Securities Act. The Investor also
understands that the Securities and Common Shares issuable upon exercise of Warrants and Series E
Preferred Shares issuable in a Series E Exchange are being offered and sold pursuant to an
exemption from registration contained in the Securities Act based in part upon the Investor’s
representations contained in this Agreement. The Investor is acquiring the Securities and Common
Shares issuable upon exercise of Warrants for the Investor’s own account for investment only and
not with a view towards their distribution. The Investor represents that it is an accredited
investor within the meaning of Regulation D under the Securities Act. The Investor has such
knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of its investment in the Securities and Common Shares issuable upon exercise of
Warrants and Series E Preferred Shares and is able to bear such risks, and has obtained, in
Seller’s judgment, sufficient information from the Company to evaluate the merits and risks of such
investment. The Investor has evaluated the risks of investing in the Securities and Common Shares
issuable upon exercise of Warrants and Series E Preferred Shares, understands there are substantial
risks of loss incidental to the investment and has determined that it is a suitable investment for
the Investor. Without limiting the foregoing, the Investor has had an opportunity to discuss the
Company’s business, management and financial affairs with officers and management of the Company
and has had the opportunity to review the Company’s operations and facilities. The Investor also
has had the opportunity to ask questions of, and receive answers from, the Company and its
management regarding the terms and conditions of this investment. Nothing in this Section
3.4 shall abrogate or otherwise limit or restrict the right of the Investor to rely on the
representations, warranties and covenants of the Issuer Parties set forth in this Agreement and the
Related Documents.

Section 3.5. Additional Investment Representations

(a) Except for the transactions provided for in this Agreement and the Related Documents,
neither the Investor nor any Affiliate thereof (a) owns five percent (5%) or more of the number of
outstanding Common Shares, (b) is a Subsidiary, Affiliate or other closely-related person of a
director, trustee or officer of the Company or a holder of five percent (5%) or more of the number
of outstanding Common Shares; and neither the Investor nor any Affiliate thereof has a substantial
direct or indirect interest in the Company. Terms used in this Section shall have the meanings
given to them in Section 312.00 of the New York Stock Exchange Listed Company Manual.

(b) Except for the transactions provided for in this Agreement and the Related Documents and
except as set forth on Section 3.5 of the Disclosure Schedule, no partner, executive or
employee of the Investor or any Affiliate has engaged in any transaction with the Company or a
Subsidiary, or has any relationship with the Company or any Subsidiary, that would be required to
be disclosed under Item 404 of Regulation S-K of the Commission if the Company were filing with the
Commission on the Effective Date a report or schedule that provided for disclosures under Item 404.

(c) The Investor acknowledges that certain restrictions on ownership and transfer of the
Company’s shares of beneficial interest in the Charter are intended to assist the Company in
satisfying the requirements for qualification as a REIT under the Code and that the Investor is
being granted an exception to the Ownership Limit (as defined in the Charter) based upon the
accuracy or the Investor’s representations and warranties to allow the Investor to acquire and own
the Series D Preferred Shares and Common Shares issuable upon exercise of the Warrants. The
Investor hereby makes the representations set forth in the Investor Representation Letter attached
as Exhibit M, which are hereby incorporated by reference herein.

Section 3.6. Funding. The parent of Investor has received executed and binding capital
commitments pursuant to which (assuming it receives the funds contemplated by such capital
commitments) it shall have sufficient cash on hand to contribute to the Investor to consummate the
transactions contemplated by this Agreement and to allow the Investor to perform its obligations
hereunder (including without limitation the Investor’s obligation to pay the Total Commitment from
time to time under Draw Down Notices). Such capital commitments are subject only to customary
excusal rights and funding conditions. To the knowledge of the Investor, as of the Effective Date,
no event has occurred which, with or without notice, lapse of time or both, would result in a
condition of funding under such capital commitments not to be met (or any excusal rights with
respect to such capital commitments being triggered) at any applicable Closing Date under this
Agreement.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE ISSUER PARTIES

Except as set forth in the disclosure schedule delivered by the Issuer Parties to the Investor
(which is hereby incorporated by reference in, and constitutes an integral part of, this Agreement)
(the “Disclosure Schedule”), the Issuer Parties, jointly and severally, hereby make the
following representations and warranties to the Investor:

Section 4.1. Organization, Good Standing and Power. Each Issuer Party is a real estate
investment trust, partnership or limited liability company, as applicable, duly formed, validly
existing and in good standing under the Laws of the jurisdiction of its formation and has the
requisite trust, partnership or limited liability company, as applicable, power and authority to
own, lease and operate its properties and assets and to conduct its business as it is now being
conducted. Each Issuer Party is duly licensed or qualified to do business and is in good standing
as a foreign entity in all jurisdictions in which the nature of the business conducted by it or the
character of the assets owned or leased by it makes such licensing or qualification necessary,
except where the failure to be so licensed or qualified would not have a Material Adverse Effect.

Section 4.2. Authorization, Enforcement. Each Issuer Party has the requisite trust,
partnership or limited liability company, as applicable, power and authority to (i) enter into and
perform its obligations under this Agreement and the Related Documents, (ii) issue and sell the
Securities (or any component thereof), (iii) upon exercise of the Warrants, issue and sell the
Common Shares underlying the Warrants, and (iv) issue and sell the Series E Preferred Shares in a
Series E Exchange, as applicable, in each case, in accordance with the terms hereof and thereof.
The execution, delivery and performance by the Issuer Parties of this Agreement and the Related
Documents and the consummation by them of the transactions contemplated hereby and thereby have
been duly and validly authorized by all necessary trust, partnership and limited liability company,
as applicable, action and no further consent or authorization of the Issuer Parties, the board, the
manager or the equity owners of any Issuer Party is required. This Agreement and each Related
Document has been duly executed and delivered by each of the Issuer Parties and constitutes a valid
and binding obligation of each Issuer Party enforceable against it in accordance with its terms.
The Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated August
15, 1997 (as amended, supplemented or otherwise modified from time to time, the “Partnership
Agreement”), has been duly authorized, executed and delivered by its partners (RAIT General,
Inc. and RAIT Limited, Inc.) and constitutes a valid and binding obligation of its partners (RAIT
General, Inc. and RAIT Limited, Inc.) enforceable against each of them in accordance with its
terms. The Amended and Restated Limited Liability Company Agreement of NewSub, dated October 1,
2012 (as amended, supplemented or modified from time to time, the “LLC Agreement”) has been
duly authorized, executed and delivered by the Operating Partnership and constitutes a valid and
binding obligation of the Operating Partnership enforceable against the Operating Partnership in
accordance with its terms.

Section 4.3. Capitalization.

(a) As of September 20, 2012, the authorized shares of beneficial interest of the Company
consists of (i) 200,000,000 Common Shares, 49,909,630 of which are issued and outstanding and (ii)
25,000,000 Preferred Shares, (A) 4,760,000 of which are classified Series A Cumulative Redeemable
Preferred Shares (the “Series A Preferred Shares”), 2,796,000 of which are issued and
outstanding, (B) 4,300,000 of which are classified Series B Cumulative Redeemable Preferred Shares
(the “Series B Preferred Shares”), 2,282,300 of which are issued and outstanding, (C)
3,600,000 of which are classified Series C Cumulative Redeemable Preferred Shares (the “Series
C Preferred Shares”), 1,640,000 of which are issued and outstanding, (D) 4,000,000 of which are
classified Series D Preferred Shares, none of which are issued or outstanding, (E) 4,000,000 of
which are classified Series E Preferred Shares, none of which are issued or outstanding, and (F)
4,340,000 of which are “unclassified”. All of the outstanding Company Shares have been duly
authorized and validly issued, and are fully paid and non-assessable. As of the Effective Date,
since September 20, 2012, there has not been any issuances of Common Shares except upon exercise of
outstanding equity-based awards and there has been no issuance of Series A Preferred Shares, Series
B Preferred Shares or Series C Preferred Shares.

(b) As of the Effective Date, 3,070,187 Common Shares (the “Available Shares”) are
reserved and available for issuance upon, or otherwise deliverable in connection with the grant,
exercise or settlement of equity-based awards pursuant to the Company’s 2012 Incentive Award Plan
(as amended, the “2012 Incentive Award Plan”), including as Other Share-Based Awards (as
defined in the 2012 Incentive Award Plan) pursuant to the Company’s Phantom Share Plan. Of the
Available Shares as of the Effective Date, 32,267 Common Shares were reserved for issuance under
outstanding awards comprised of options (the “Outstanding Options”), 195,943 Common Shares
were reserved for issuance under outstanding awards comprised of phantom units (the
“Outstanding Units”) and 2,841,977 Common Shares remained available for other grants under
the 2012 Incentive Award Plan. As of the Effective Date, awards outstanding under the 2012
Incentive Award Plan are comprised of the Outstanding Options, Outstanding Units and share
appreciation rights. As of the Effective Date, there are 2,197,000 outstanding share appreciation
rights which may be settled in cash or Common Shares, and any Common Shares issued in settlement
thereof will reduce the number of Common Shares available for other grants under the 2012 Incentive
Award Plan.

(c) Except as set forth in Section 4.3(c) of the Disclosure Schedule, as of the
Effective Date, no shares or units of capital stock or other equity interest of any Issuer Party
are entitled to preemptive rights or registration rights and there are no outstanding options,
warrants, scrip, rights to subscribe to, call or commitments of any character whatsoever relating
to, or securities or rights convertible into or exchangeable for, any shares or units of capital
stock or other equity interests of any Issuer Party.

(d) Except as set forth in Section 4.3(d) of the Disclosure Schedule, as of the
Effective Date, there are no contracts, commitments, understandings or arrangements by which any
Issuer Party is or may become bound to issue additional shares or units of capital stock or other
equity interests of such Issuer Party or options, securities or rights convertible into or
exchangeable for any shares or units of capital stock or other equity interests of any Issuer
Party.

(e) Except as set forth in Section 4.3(e) of the Disclosure Schedule and except as set
forth in the Organizational Documents of the Issuer Parties, as of the Effective Date, no Issuer
Party was a party to, and to the Issuer Parties’ Knowledge, there was no agreement restricting the
voting or transfer of any shares or units of capital stock or other equity interests of any Issuer
Party.

(f) Except as set forth in Section 4.3(f) of the Disclosure Schedule, the offer and
sale of all capital stock or other equity interests, convertible or exchangeable securities,
rights, warrants or options of an Issuer Party issued prior to the Effective Date complied with all
applicable federal and state securities laws, and no equity holder has any right of rescission or
damages or any “put” or similar right with respect thereto.

(g) Except as set forth in Section 4.3(g) of the Disclosure Schedule, as of the
Effective Date, there is no contract, agreement or understanding between an Issuer Party and any
person granting such person any rights to have any securities of an Issuer Party or any of their
Subsidiaries registered under the Securities Act for resale by such person. All of the outstanding
units of partnership interest in the Operating Partnership (the “OP Units”) have been duly
authorized and are validly issued and conform to the information in the Commission Documents. All
outstanding OP Units have been issued and sold in compliance with all applicable federal and state
securities laws. All of the outstanding shares in Taberna (the “Taberna Shares”) have been
duly authorized and are validly issued and conform to the information in the Commission Documents.
All outstanding Company Shares have been issued and sold in compliance with all applicable federal
and state securities laws.

(h) Except as set forth in Section 4.3(h) of the Disclosure Schedule, the issuance of
the Securities and the Common Shares underlying the Warrants will not trigger any anti-dilution or
other similar adjustment provision with respect to any outstanding securities of any Issuer Party.

Section 4.4. Organizational Documents. The Issuer Parties have made available to the
Investor true and correct copies of the Organizational Documents of each of the Issuer Parties as
in effect on the Effective Date.

Section 4.5. Issuance of Securities. The Series D Preferred Shares, Warrants and Common
Share Appreciation Rights to be issued under this Agreement have been duly authorized by all
necessary trust action on the part of the Company and reserved for issuance free of all preemptive
and other similar rights, and, when paid for or issued in accordance with the terms hereof, shall
be validly issued and outstanding, fully paid and nonassessable and the Investor shall be entitled
to all rights accorded to a holder and beneficial owner of such Securities. The Common Shares
issuable upon exercise of the Warrants have been duly authorized by all necessary trust action on
the part of the Company and reserved for issuance free of all preemptive and other similar rights
and, when paid for or issued in accordance with the terms thereof, shall be validly issued and
outstanding, fully paid and nonassessable and the Investor shall be entitled to all rights accorded
to a holder and beneficial owner of such Common Shares. The Subsidiary Preferred Units to be
issued under this Agreement have been duly authorized by all necessary limited liability company
action on the part of NewSub and reserved for issuance free of all preemptive and other similar
rights and, when paid for or issued in accordance with the terms hereof, shall be validly issued
and outstanding, fully paid and nonassessable and the Investor shall be entitled to all rights
accorded to a holder and beneficial owner of such Subsidiary Preferred Units. The Series E
Preferred Shares issuable in a Series E Exchange have been duly authorized by all necessary trust
action on the part of the Company and reserved for issuance free of all preemptive and other
similar rights and, when paid for or issued in accordance with the terms hereof, shall be validly
issued and outstanding, fully paid and nonassessable and the Investor shall be entitled to all
rights accorded to a holder and beneficial owner of such Series E Preferred Shares. Assuming the
Investor owns all of the Series D Preferred Shares issuable pursuant to this Agreement and all
Common Shares issuable upon exercise of the Warrants that are issuable pursuant to this Agreement,
and subject to the accuracy of the Investor’s representations pursuant to Section 3.5(b) hereof,
the Company is not “closely held” within the meaning of Section 856(a)(6) of the Code.

Section 4.6. No Conflicts. The execution, delivery and performance by the Issuer Parties
of this Agreement and the Related Documents, the consummation of the transactions contemplated
hereby and thereby, and the issuance and sale of the Securities and the Common Shares underlying
the Warrants and the Series E Preferred Shares in a Series E Exchange by the Issuer Parties in
accordance with the terms hereof and thereof do not and shall not (a) result in a violation of any
provision of the Organizational Documents of any Issuer Party, (b) conflict with, constitute a
default (or an event which, with notice or lapse of time or both, would become a default) under, or
give rise to any rights of termination, amendment, acceleration or cancellation of, any material
agreement, mortgage, deed of trust, indenture, note, bond, license, lease agreement, instrument or
obligation to which any Issuer Party or any of their respective Subsidiaries is a party or is bound
(including, without limitation, any listing agreement with any Trading Market), (c) create or
impose a Lien on any property of any Issuer Party or any of their respective Subsidiaries under any
agreement or any commitment to which any Issuer Party or any of their respective Subsidiaries is a
party or under which any Issuer Party or any of their respective Subsidiaries is bound or under
which any of their respective properties or assets are bound, or (d) result in a violation of any
Law applicable to any Issuer Party or any of their respective Subsidiaries or by which any property
or asset of any Issuer Party or any of their respective Subsidiaries are bound or affected,
including the rules, regulations, policies, manuals or requirements of any Trading Market on which
any Company Shares are listed (including, without limitation, Section 312.03(c) of the NYSE Listed
Company Manual). No Issuer Party is required under any Law applicable to such Issuer Party to
obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under
this Agreement or any Related Document or to consummate the transactions contemplated hereby or
thereby, or for the issuance and sale of the Securities or the Common Shares issuable upon the
exercise of the Warrant or the Series E Preferred Shares in a Series E Exchange by the Issuer
Parties in accordance with the terms hereof (other than (i) filing, approvals and registrations in
connection with the performance by the Company of its obligations under the Registration Rights
Agreement, (ii) the Company’s public reporting obligations under the Exchange Act required to be
made subsequent to the Effective Date, (iii) notices to the Trading Market in connection with the
issuances of the Common Shares issuable upon exercise of the Warrants, (iv) filing of the Series E
Articles Supplementary with the Department of Assessments and Taxation of the State of Maryland and
(v) filings, approval and notices to the Trading Market in connection with the listing of the
Series E Preferred Shares, which filings approvals and notices are expressly contemplated by the
Registration Rights Agreement). None of the Issuer Parties or any of their respective Subsidiaries
is in violation of any term or provision of its Organizational Documents. As of the Effective
Date, the Person, as defined in 16 CFR 801.1(a)(1) of the rules promulgated under the HSR Act,
within which the Company is included will not have non-exempt assets valued in excess of the
applicable size-of-transaction threshold under the HSR Act, as determined in accordance with the
HSR Act and its implementing rules.

Section 4.7. Commission Documents, Financial Statements and Other Public Information.

(a) The Common Shares, the Series A Preferred Shares, the Series B Preferred Shares and the
Series C Preferred Shares issued and outstanding are each registered pursuant to Section 12(b) or
12(g) of the Exchange Act and, except as disclosed in the Commission Documents, as of the Effective
Date, the Company has timely filed (giving effect to permissible extensions in accordance with Rule
12b-25 under the Exchange Act) all Commission Documents. The Company has delivered or made
available to the Investor via EDGAR or otherwise true and complete copies of the Commission
Documents filed with the Commission prior to the Effective Date (including, without limitation, the
2011 Form 10-K). As of its filing date, each Commission Document complied in all material respects
with the requirements of the Securities Act or the Exchange Act, as applicable, and other Laws
applicable to it, and, as of its filing date (or, if amended or superseded by a filing prior to the
Effective Date, on the date of such amended or superseded filing), such Commission Document, did
not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

(b) The financial statements, together with the related notes and schedules, of the Company
included in the Commission Documents and the Future Commission Documents comply as to form in all
material respects with all applicable accounting requirements and the published rules and
regulations of the Commission and all other applicable rules and regulations with respect thereto.
Such financial statements, together with the related notes and schedules, have been prepared in
accordance with GAAP applied on a consistent basis during the periods involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of
unaudited interim statements, to the extent they may not include footnotes or may be condensed or
summary statements and are subject to normal year-end audit adjustments), and fairly present in all
material respects the financial condition of the Company and its consolidated Subsidiaries as of
the dates thereof and the results of operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments).

(c) The Company has timely filed with the Commission and made available to the Investor via
EDGAR or otherwise all certifications and statements required by (x) Rule 13a-14 or Rule 15d-14
under the Exchange Act or (y) 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002
(“SOXA”)) with respect to all relevant Commission Documents. The Company is in compliance
in all material respects with the provisions of SOXA applicable to it as of the date hereof. The
Company maintains disclosure controls and procedures required by Rule 13a-15 or Rule 15d-15 under
the Exchange Act; such controls and procedures are effective to ensure that all material
information concerning the Company and its Subsidiaries is made known on a timely basis to the
individuals responsible for the timely and accurate preparation of the Company’s Commission filings
and other public disclosure documents. As used in this Section 4.7(c), the term “file”
shall be broadly construed to include any manner in which a document or information is furnished,
supplied or otherwise made available to the Commission.

(d) Grant Thornton LLP, which has expressed its opinions on the audited financial statements
and related schedules included in the 2011 Form 10-K, is, with respect to the Company, an
independent public accountant as required by the Securities Act and is an independent registered
public accounting firm within the meaning of SOXA as required by the rules of the Public Company
Accounting Oversight Board.

(e) As of its date of dissemination, each press release, report, article, document, statement
or other information disseminated to the public by or on behalf of any Issuer Party or a Subsidiary
thereof, or any of their respective officers, managers, employees, trustees, directors or
Affiliates, did not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

Section 4.8. Off-Balance Sheet Arrangements. There are no transactions, arrangements or
other relationships between or among any Issuer Party or any of their respective Affiliates and any
unconsolidated entities, including, but not limited to, any structural finance, special purpose or
limited purpose entity (each, an “Off Balance Sheet Transaction”) that could reasonably be
expected to materially affect any Issuer Party’s liquidity or the availability of or requirements
for its capital resources, including those Off Balance Sheet Transactions described in the
Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and
Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be disclosed pursuant to
the Securities Act or the Exchange Act by the Company which have not been disclosed as required.

Section 4.9. Subsidiaries.

(a) Section 4.9(a) of the Disclosure Schedule sets forth each material Subsidiary of
the Company as of the Effective Date, showing its jurisdiction of incorporation or formation, as
applicable, and the Company does not have any other material Subsidiaries as of the Effective Date.
Each material Subsidiary of the Company is validly existing as a real estate investment trust,
corporation, limited liability company, partnership or other entity, as applicable, in its
respective jurisdiction of incorporation or formation, as applicable, except where failure to
maintain such existence would not have a Material Adverse Effect. Each Subsidiary of the Company
is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction
in which the nature of the business conducted or property owned by it makes such qualification
necessary, except for any jurisdiction in which the failure to be so qualified would not have a
Material Adverse Effect.

(b) As of the Effective Date, the authorized membership interests of NewSub consist of (i) 100
common units, all of which are issued and outstanding, and (ii) 4,000,000 Subsidiary Preferred
Units, none of which are issued and outstanding. All of the outstanding units of NewSub have been
duly authorized and validly issued, and are fully paid and nonassessable.

(c) The Company owns 100% of the issued and outstanding stock of RAIT General, Inc., a
Maryland corporation and the sole general partner of the Operating Partnership (“RAIT
General”), which in turn owns 100% of the general partner interests in the Operating
Partnership. The Company owns 100% of the issued and outstanding stock of RAIT Limited, Inc., a
Maryland corporation and the sole limited partner of the Operating Partnership (“RAIT
Limited”), which in turn owns 100% of the limited partner OP Units in the Operating
Partnership. Such general partner interest and limited partner OP Units are duly authorized by the
Partnership Agreement and were validly issued to RAIT General and RAIT Limited, respectively; and
RAIT General and RAIT Limited, respectively, own such general partner interest and limited partner
OP Units free and clear of all Liens.

(d) The Operating Partnership owns 100% of the outstanding common units of NewSub and such
membership interests are duly authorized by the LLC Agreement and were validly issued to the
Operating Partnership; and the Operating Partnership owns such membership interests free and clear
of all Liens.

(e) The Company owns 100% of the common shares of beneficial interest and over 80% of the
preferred shares of beneficial interest of Taberna and such shares of beneficial interest were duly
authorized by the Taberna Organizational Documents and were validly issued to the Company; and the
Company owns such shares of beneficial interest free and clear of all Liens.

Section 4.10. No Material Adverse Effect. Since December 31, 2011, no Issuer Party at any
time has experienced or suffered any Material Adverse Effect, and, to the Knowledge of the Issuer
Parties, there exists no current state of facts, condition or event which would have a Material
Adverse Effect.

Section 4.11. No Undisclosed Liabilities. As of the Effective Date, neither the Company
nor any of its Subsidiaries has any liabilities, obligations, claims or losses (whether liquidated
or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) that would be
required to be disclosed on a balance sheet of the Company or any Subsidiary (including the notes
and schedules thereto) in conformity with GAAP and are not disclosed in the Commission Documents,
other than those (i) incurred in the ordinary course of the Company’s or its Subsidiaries’
respective businesses since December 31, 2011 or (ii) which, individually or in the aggregate, do
not or would not have a Material Adverse Effect. There is no existing or continuing default or
event of default in respect of any Indebtedness of the Company or any of its Subsidiaries other
than as do not or would not have a Material Adverse Effect.

Section 4.12. Trading Market Limit. The Issuer Parties hereby represent, warrant and
covenant that none of them nor any of their respective Subsidiaries (a) has effected any
transaction or series of transactions, (b) is a party to any pending transaction or series of
transactions or (c) shall enter into any contract, agreement, agreement-in-principle, arrangement
or understanding with respect to, or shall effect, any other offering of securities which, in any
of such cases, may be aggregated with the transactions contemplated by this Agreement or the
Related Documents for purposes of determining whether approval of an Issuer Party’s equity holders
is required under any bylaw, listed securities maintenance standards or other rules of a Trading
Market on which securities of an Issuer Party are listed.

Section 4.13. Assets and Real Property. As of the Effective Date, each of the Issuer
Parties and their respective Subsidiaries has good and marketable title to all of their respective
real and personal property (including, without limitation, mortgaged assets) referred to in the
Commission Documents as being owned by them, free of any Liens, except for those (i) indicated in
the Commission Documents, (ii) that secure liabilities that are part of the consolidated
liabilities of the Company as reflected in the Company’s financial statements included in the
Commission Documents or (iii) that would not have a Material Adverse Effect. Each of the Issuer
Parties and their respective Subsidiaries has valid and enforceable leasehold interests in all of
their respective real and personal property (including, without limitation, mortgaged assets)
referred to in the Commission Documents as being leased by them, free of any Liens, except for
those (i) indicated in the Commission Documents, (ii) that secure liabilities that are part of the
consolidated liabilities of the Company as reflected in the Company’s financial statements included
in the Commission Documents or (iii) that would not have a Material Adverse Effect. To the Issuer
Parties’ Knowledge, all real property leases of the Issuer Parties are valid and subsisting and in
full force and effect in all material respects. The Issuer Parties have such consents, easements,
rights-of-way or licenses (collectively, “rights-of-way”) from any person as are necessary
to conduct their business in the manner described in the Commission Documents, except for those
which if not obtained would not, individually or in the aggregate, have a Material Adverse Effect,
and none of such rights-of-way contains any restriction that is materially burdensome to any Issuer
Party.

Section 4.14. Actions Pending. There is no action, suit, claim, investigation or
proceeding pending or, to the Knowledge of the Issuer Parties, threatened against any Issuer Party
or any of their respective Subsidiaries which questions the validity of this Agreement or any
Related Document or the transactions contemplated hereby or thereby or any action taken or to be
taken pursuant hereto or thereto. Except as set forth on Section 4.14 of the Disclosure
Schedule or as disclosed in the Commission Documents, there is no action, suit, claim,
investigation or proceeding pending or, to the Knowledge of the Issuer Parties, threatened against
or involving any Issuer Party, any of their respective Subsidiaries or any of their respective
properties or assets, in each case which, if determined adversely to any Issuer Party or their
respective Subsidiaries, would have a Material Adverse Effect. With respect to each of the legal
proceedings or investigations disclosed in the Company’s Quarterly Report on Form 10-Q for its
fiscal quarter ended June 30, 2012, there has been no event or change required to be disclosed in a
filing under the Exchange Act that has not been so disclosed.

Section 4.15. Compliance With Law. The business of the Issuer Parties and their respective
Subsidiaries has been and is presently being conducted in compliance in all material respects with
all applicable Laws, including, without limitation, the Americans with Disabilities Act of 1990 and
all applicable local, state and federal employment, truth-in-advertising, franchising and
immigration Laws except where the non-compliance would not have a Material Adverse Effect.

Section 4.16. Certain Fees. No brokers, finders or financial advisory fees or commissions
(other than (i) the fees payable pursuant to Section 2.5, or (ii) the fee payable by the
Company to Leonard Street Capital Partners, LLC) shall be payable by the Issuer Parties or any of
their respective Subsidiaries (or any of their respective Affiliates) with respect to the
transactions contemplated by this Agreement or the Related Documents.

Section 4.17. Operation of Business.

(a) The Issuer Parties or one or more of their respective Subsidiaries possesses such permits,
licenses, approvals, consents and other authorizations (including licenses, accreditation and other
similar documentation or approvals of any local health departments) (collectively,
“Governmental Licenses”) issued by the appropriate federal, state, local or foreign
regulatory agencies or bodies necessary to conduct the business now operated by them, except where
the failure to possess such Governmental Licenses, individually or in the aggregate, would not have
a Material Adverse Effect. The Issuer Parties and their respective Subsidiaries are in compliance
with the terms and conditions of all such Governmental Licenses, except where the failure to so
comply, individually or in the aggregate, would not have a Material Adverse Effect. All of the
Governmental Licenses are valid and in full force and effect, except where the invalidity of such
Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect,
individually or in the aggregate, would not have a Material Adverse Effect. Except as set forth in
the Commission Documents, none of the Issuer Parties or any of their respective Subsidiaries has
received any notice of proceedings relating to the revocation or modification of any such
Governmental Licenses which, if the subject of any unfavorable decision, ruling or finding,
individually or in the aggregate, would have a Material Adverse Effect. This Section 4.17
does not relate to environmental matters, such items being the subject of Section 4.18.

(b) The Issuer Parties or one or more of their respective Subsidiaries owns or possesses
adequate rights to use the patents, patent rights, licenses, inventions, copyrights, know-how
(including trade secrets and other unpatented or unpatentable proprietary or confidential
information, systems or procedures), trademarks, service marks, trade names, trade dress, logos,
copyrights and other intellectual property, including, without limitation, all of the intellectual
property described in the Commission Documents as being owned or licensed by them (collectively,
“Intellectual Property”), necessary to carry on the business now operated by them, except
where failure to own, license or have such rights would not, individually or in the aggregate, have
a Material Adverse Effect. There are no actions, suits or judicial proceedings pending, or to the
Issuer Parties’ Knowledge threatened, relating to patents or proprietary information to which the
Issuer Parties or any of their respective Subsidiaries is a party or of which any property of the
Issuer Parties or any of their respective Subsidiaries is subject, and none of the Issuer Parties
or any of their respective Subsidiaries has received any notice or is otherwise aware of any
infringement of or conflict with asserted rights of others with respect to any Intellectual
Property or of any facts or circumstances which would render any Intellectual Property invalid or
inadequate to protect the interest of the Issuer Parties and their respective Subsidiaries therein,
and which infringement or conflict (if the subject of any unfavorable decision, ruling or finding)
or invalidity or inadequacy, individually or in the aggregate, would have a Material Adverse
Effect.

Section 4.18. Environmental Compliance. The Issuer Parties and each of their respective
Subsidiaries have obtained all approvals, authorization, certificates, consents, licenses, orders
and permits or other similar authorizations of all governmental authorities, or from any other
person, that are required under any Environmental Laws, except for any approvals, authorization,
certificates, consents, licenses, orders and permits or other similar authorizations the failure of
which to obtain does not or would not have a Material Adverse Effect. Except as disclosed in the
Commission Documents and except for such instances as would not, individually or in the aggregate,
have a Material Adverse Effect, to the Issuer Parties’ Knowledge, there are no past or present
events, conditions, circumstances, incidents, actions or omissions relating to or in any way
affecting the Issuer Parties or their respective Subsidiaries that violate or would reasonably be
expected to violate any Environmental Law after the Effective Date or that would reasonably be
expected to give rise to any environmental liability, or otherwise form the basis of any claim,
action, demand, suit, proceeding, hearing, study or investigation (a) under any Environmental Law
or (b) based on or related to the manufacture, processing, distribution, use, treatment, storage
(including without limitation underground storage tanks), disposal, transport or handling or the
emission, discharge, release or threatened release of any hazardous substance.

Section 4.19. Material Agreements. Section 4.19 of the Disclosure Schedule sets
forth all Material Agreements as of the Effective Date. Each such Material Agreement is in full
force and effect, and constitutes a legal, valid and binding obligation enforceable in accordance
with its terms. None of the Issuer Parties or any of their respective Subsidiaries, nor, to the
Knowledge of the Issuer Parties, any counterparty to any Material Agreement, has violated or is
alleged to have violated any provision of, or committed or failed to perform any act which, with or
without written notice, lapse of time or both, would constitute a default under the provisions of
any Material Agreement, except in each case for those violations and defaults which, individually
or in the aggregate, has not had and would not have a Material Adverse Effect. No party to any
Material Agreement has given any Issuer Party or any of their respective Subsidiaries written (or,
to the Knowledge of the Issuer Parties, oral) notice of its intention to cancel, terminate, change
the scope of rights under or fail to renew any Material Agreement and none of the Issuer Parties or
any of their respective Subsidiaries, nor, to the Knowledge of the Issuer Parties, any other party
to any Material Agreement, has repudiated in writing any material provision thereof.

Section 4.20. Transactions With Affiliates. Except as set forth on Section 4.20 of
the Disclosure Schedule, there are no, and since December 31, 2009 there have not been any,
transactions, agreements, arrangements or understandings between the Company or any of its
Subsidiaries on the one hand, and any “related person” (as defined in Item 404(a) of Regulation
S-K) on the other hand, that would be required to be disclosed under Item 404 under Regulation S-K
under the Securities Act and that have not been so disclosed in the Commission Documents. Except
as set forth on Section 4.20 of the Disclosure Schedule, there are no outstanding amounts
payable to or receivable from, or advances by any Issuer Party or any of their respective
Subsidiaries to, and none of the Issuer Parties or any of their respective Subsidiaries is
otherwise a creditor of or debtor to, any beneficial owner of more than 5% of the outstanding
Common Shares (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3
promulgated thereunder), or any Related Party (as defined in Section 312.00 of the New York Stock
Exchange Listed Company Manual) of any Issuer Party or any of their respective Subsidiaries, other
than (a) reimbursement for reasonable expenses incurred on behalf of the Issuer Parties or any of
their respective Subsidiaries, (b) as part of the normal and customary terms of such Persons’
employment or service as a trustee or director with an Issuer Party or any of their respective
Subsidiaries, or (c) as disclosed in the Commission Documents.

Section 4.21. Securities Act. Based in part upon the Investor’s representations and
warranties in this Agreement and the Related Documents, the Issuer Parties have complied with all
applicable federal and state securities Laws in connection with the offer, issuance and sale of the
Securities hereunder and the Common Shares issuable upon exercise of the Warrants.

Section 4.22. Employees. As of the Effective Date, none of the Issuer Parties or any of
their respective Subsidiaries has any collective bargaining arrangements or agreements covering any
of their employees, except as set forth in the Commission Documents. As of the Effective Date,
except as disclosed in Commission Documents, no officer, consultant or key employee of an Issuer
Party or any Subsidiary thereof whose termination, either individually or in the aggregate, would
have a Material Adverse Effect, has terminated or, to the Knowledge of the Issuer Parties, has any
present intention of terminating his or her employment or engagement with an Issuer Party or any
Subsidiary thereof.

Section 4.23. Investment Company Act Status. No Issuer Party is, and, as a result of the
consummation of the transactions contemplated by this Agreement or the Related Documents and the
application of the proceeds from the sale of the Securities and Common Shares issued upon exercise
of the Warrants as set forth herein, no Issuer Party shall be an “investment company” or a company
“controlled” by an “investment company” required to register under the Investment Company Act of
1940, as amended (the “Investment Company Act”).

Section 4.24. ERISA. No liability to the Pension Benefit Guaranty Corporation has been
incurred with respect to any Plan by the Issuer Parties or any of their respective Subsidiaries
which has had or would have a Material Adverse Effect. No “prohibited transaction” (as defined in
Section 406 of ERISA or Section 4975 of the Code) or “accumulated funding deficiency” (as defined
in Section 203 of ERISA) or any of the events set forth in Section 4043(b) of ERISA has occurred
with respect to any Plan which has had or would have a Material Adverse Effect, and the execution
and delivery of this Agreement and the Related Documents and the issuance and sale of the
Securities hereunder and the issuance of Common Shares upon exercise of the Warrants and the Series
E preferred Shares in a Series E Exchange do not result in any of the foregoing events. Each Plan
is in compliance in all material respects with applicable law, including ERISA and the Code; no
Issuer Party has incurred or expects to incur liability under Title IV of ERISA with respect to the
termination of, or withdrawal from, any Plan in each case, other than has not had and would not
have a Material Adverse Effect; and each Plan for which an Issuer Party would have any liability
that is intended to be qualified under Section 401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or failure to act, which would cause the loss
of such qualifications in each case, other than has not had and would not have a Material Adverse
Effect.

Section 4.25. Taxes. The Company and each of its Subsidiaries (a) has accurately prepared
and timely filed all federal, state and foreign income and franchise tax returns that are required
to be filed by them, or have duly requested extensions thereof, (b) have paid or made provision for
the payment of all material federal, state, local and foreign taxes, assessments, governmental or
other similar charges due and payable for which they are liable, including, without limitation, all
sales, use and property taxes and all taxes which the Company or any of its Subsidiaries is
obligated to withhold from amounts owing to employees, creditors and third parties, with respect to
periods covered by such tax returns (whether or not such amounts are shown as due on any tax
return) except to the extent that any such taxes are being contested in good faith and by
appropriate proceedings, (c) do not have any material tax deficiency or claims outstanding or
assessed or, to the Company’s Knowledge, proposed against them and (d) do not have any Liens for
taxes (other than taxes not yet due and payable) upon any assets, properties or business of the
Company and each of its Subsidiaries, in each case, other than has not had and would not have a
Material Adverse Effect. Each corporation in which the Company owns, directly or indirectly, an
equity interest is a “qualified REIT subsidiary” as defined in Section 856(i)(2) of the Code, a
“taxable REIT subsidiary” as defined in Section 856(l) of the Code or a REIT. No entity in which
the Company owns, directly or indirectly, an equity interest and that would be treated as a
partnership for U.S. federal income tax purposes, but for Section 7704 of the Code, is a “publicly
traded partnership” within the meaning of Section 7704(b) of the Code. The Company has no
accumulated earnings and profits for U.S. federal income tax purposes attributable to any period
for which it did not qualify as a REIT.

Section 4.26. Insurance. The Issuer Parties and each of their respective Subsidiaries
carries, or is covered by, insurance in such amounts and covering such risks as they deem adequate
for the conduct of their businesses and the value of their respective properties and other assets
and as is customary for companies engaged in similar businesses in similar industries, except where
the absence of such insurance coverage would not, individually or in the aggregate, have a Material
Adverse Effect. The Issuer Parties have obtained title insurance on the fee interests in each of
their respective owned real properties in an amount that is commercially reasonable for each such
owned real property, but at least equal to the purchase price of such owned real property, all of
which policies of insurance are in full force and effect, except where the absence of such
insurance coverage would not, individually or in the aggregate, have a Material Adverse Effect.

Section 4.27. REIT Status. Each of the Company and Taberna has been, and upon the
Effective Date, each Draw Down Exercise Date and each Closing Date will continue to be, organized
and operated in conformity with the requirements for qualification and taxation as a REIT for all
taxable years commencing with the taxable year ending December 31, 1998 for the Company and the
taxable year ending December 31, 2005 for Taberna. Neither the Company nor Taberna has
intentionally or inadvertently revoked its election to be taxed as a REIT since initially
qualifying as a REIT. The proposed methods of operation of the Company and Taberna as described in
the Commission Documents will enable each of the Company and Taberna to continue to meet the
requirements for qualification and taxation as a REIT under applicable laws. The Company and
Taberna currently intend to continue to operate in a manner which would permit each of them to
qualify as a REIT and no actions have been taken (or not taken which are required to be taken)
which would cause such qualification to be lost. To the Issuer Parties’ Knowledge, there is no
event which would cause or is likely to cause the Company or Taberna to fail to qualify as a REIT
at any time. The Company is not currently, and will use its commercially reasonable efforts to
operate in such a manner that it does not become, a “United States real property holding
corporation” (a “USRPHC”) as defined in Section 897(c)(2) of the Code.

Section 4.28. Material Non-Public Information. Except for this Agreement and the Related
Document and the transactions contemplated hereby and thereby, no Issuer Party or an Issuer Party’s
employees have disclosed to the Investor any material non-public information that, according to
applicable Law, should have been disclosed publicly by the Company prior to the Effective Date but
which has not been so disclosed. There is no material adverse information with respect to any
Issuer Party or any Subsidiary thereof which has not been publicly disclosed.

Section 4.29. Section 16 Matters. The Issuer Parties have taken such actions that are
consistent with the interpretive guidance of the Commission as are necessary to cause the
acquisition by the Investor of any Securities (or any component thereof) pursuant to this Agreement
or Common Shares pursuant to the exercise of any Warrants (including derivative securities with
respect to Securities (or any component thereof) or Common Shares), to the extent attributable to
an Affiliate of Investor who is an officer or trustee of the Company, to be exempt under Rule 16b-3
promulgated under the Exchange Act.

ARTICLE V

COVENANTS

The Issuer Parties, jointly and severally, covenant with the Investor, and the Investor
covenants with the Issuer Parties, as follows, which covenants of one party are for the benefit of
the other party (and in the case of the Investor, except with respect of the covenants set forth in
Section 5.16, its transferees and assigns that are Permitted Transferees hereunder), during
the Investment Period and thereafter (i) with respect to Section 5.10, for so long as the
Investor and its Affiliates that are Permitted Transferees hereunder continue to own or be entitled
to purchase at least 400,000 Series D Preferred Shares (such amount to be adjusted appropriately
for stock splits, stock dividends, combinations, recapitalizations and the like), and (ii) with
respect to all other provisions in this Article V, only for so long as the Investor and its
Affiliates that are Permitted Transferees hereunder collectively continue to own (a) at least 10%
of the aggregate Series D Preferred Shares actually issued to the Investor under this Agreement
during the Investment Period or (b) Warrants and Common Shares issued upon exercise of Warrants (or
any combination thereof) collectively representing at least 5% of the aggregate amount of Common
Shares issuable upon exercise of Warrants actually issued under this Agreement during the
Investment Period:

Section 5.1. Securities Compliance. The Company shall notify each Trading Market on which
Company Shares are listed, as necessary, in accordance with their respective rules and regulations,
of the transactions contemplated by this Agreement and the Related Documents, and shall take all
necessary action, undertake all proceedings and obtain all registrations, permits, consents and
approvals for the legal and valid issuance of the Securities, and the Common Shares issuable upon
exercise of the Warrants and the Series E Preferred Shares issuable in a Series E Exchange, to the
Investor in accordance with the terms of this Agreement and the Related Documents.

Section 5.2. Registration and Listing. The Company shall take all action necessary to
cause the Common Shares, the Series A Preferred Shares, the Series B Preferred Shares, the Series C
Preferred Shares and any additional class or series of Company Shares registered under Section
12(b) or 12(g) of the Exchange Act each to continue to be registered as a class of securities under
Sections 12(b) or 12(g) of the Exchange Act so long as such securities remain outstanding, shall
comply with its reporting and filing obligations under the Exchange Act, and shall not take any
action or file any document (whether or not permitted by the Securities Act) to terminate or
suspend such registration or to terminate or suspend its reporting and filing obligations under the
Exchange Act or Securities Act, except as permitted herein. The Company shall take all action
necessary to continue the listing and trading of its Common Shares, the Series A Preferred Shares,
the Series B Preferred Shares, the Series C Preferred Shares and any additional class or series of
Company Shares listed on a Trading Market on the applicable Trading Market (including, without
limitation, maintaining sufficient tangible net assets) so long as such securities remain
outstanding, and shall comply with the Company’s reporting, filing and other obligations under the
bylaws, listed securities maintenance standards and other rules and regulations of the FINRA and
the applicable Trading Market. The Company shall not take any action which could reasonably be
expected to result in the delisting or suspension of the Common Shares, the Series A Preferred
Shares, the Series B Preferred Shares, the Series C Preferred Shares or any additional class or
series of Company Shares listed on a Trading Market on the applicable Trading Market so long as
such securities remain outstanding.

Section 5.3. Compliance with Laws. The Issuer Parties shall comply, and cause each of
their respective Subsidiaries to comply, (a) with all Laws applicable to the business and
operations of the Issuer Parties and their respective Subsidiaries, except as would not have a
Material Adverse Effect and (b) with all applicable provisions of the Securities Act, the Exchange
Act, the rules and regulations of the FINRA and the listing standards of all Trading Markets on
which any Company Shares are listed. Without limiting the generality of the foregoing, the Issuer
Parties will not, and each will cause their respective Subsidiaries and Affiliates over which they
exercise control not to, take, directly or indirectly, any action designed or intended
impermissibly to stabilize or manipulate the price of any security of the Company, or which would
in the future reasonably be expected to cause or result in impermissible stabilization or
manipulation of the price of any security of the Company.

Section 5.4. Keeping of Records and Books of Account; Unlawful Payments.

(a) The Company shall keep and cause each Subsidiary to keep adequate records and books of
account, in which complete entries shall be made in accordance with GAAP consistently applied,
reflecting all financial transactions of the Company and its Subsidiaries, and in which, for each
fiscal year, all proper reserves for depreciation, depletion, obsolescence, amortization, taxes,
bad debts and other purposes in connection with its business shall be made. The Company shall
maintain a system of internal accounting controls that (i) pertain to the maintenance of records
that in reasonable detail accurately and fairly reflect the transactions and dispositions of the
assets of the Company and its Subsidiaries; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with GAAP
consistently applied, and that receipts and expenditures of the Company are being made only in
accordance with authorizations of management and trustees of the Company; and (iii) provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the Company’s or its Subsidiaries’ assets that would likely have a material effect
on the Company’s financial statements.

(b) None of the Issuer Parties or any of their respective Subsidiaries shall, in connection
with the operation of the Issuer Party’s and their respective Subsidiaries’ respective businesses,
(i) use any corporate funds for unlawful contributions, payments, gifts or entertainment or to make
any unlawful expenditures relating to political activity to government officials, candidates or
members of political parties or organizations, (ii) pay, accept or receive any unlawful
contributions, payments, expenditures or gifts or (iii) violate or operate in noncompliance with
any export restrictions, anti-boycott regulations, embargo regulations or other applicable Laws,
except for such violations or noncompliant operations that would not likely result in a Material
Adverse Effect.

Section 5.5. Other Agreements and Other Financings. No Issuer Party shall enter into,
announce or recommend any agreement, plan, arrangement or transaction the terms of which would
restrict, materially delay or conflict with the ability or right of an Issuer Party or any of their
respective Subsidiaries to perform its obligations under this Agreement or the Related Documents,
including, without limitation, the obligation of the Issuer Parties to deliver Securities to the
Investor in respect of Draw Down Notices that may be delivered from time to time pursuant to this
Agreement, or any obligation of the Company or NewSub, as applicable, in respect of the Securities
and Common Shares issued or issuable upon exercise of the Warrants or Series E Preferred Shares
issuable in a Series E Exchange.

Section 5.6. Certain Actions.

(a) Except as expressly permitted or required pursuant to this Agreement or any Related
Document, the Issuer Parties shall not, and shall not permit any of their respective Subsidiaries
to, directly or indirectly, do either of the following: (a) agree to any action which would
restrict, materially delay or conflict with the rights and preferences of the Securities (or any
component thereof) or the Series E Shares; or (b) declare, pay or set aside for payment any
Extraordinary Dividend except (for purposes of this clause (b)) as otherwise required for the
Company to continue to satisfy the requirements for qualification and taxation as a REIT under the
Code.

(b) The Company shall not, at any time prior to the first issuance of Series D Preferred
Shares, amend, alter or repeal the provisions of the Declaration of Trust (including the Articles
Supplementary), whether by merger or consolidation or otherwise, so as to adversely affect any
right, preference or voting power of the Series D Preferred Shares.

(c) The Company shall not, at any time prior to the first issuance of Series E Preferred
Shares, amend, alter or repeal the provisions of the Declaration of Trust (including the Series E
Articles Supplementary), whether by merger or consolidation or otherwise, so as to adversely affect
any right, preference or voting power of the Series E Preferred Shares.

(d) The Company shall not, whether by merger, consolidation, amendment to the Articles
Supplementary, the Series E Articles Supplementary or the Declaration of Trust, operation of law or
otherwise, effect any stock split, recapitalization or similar adjustment in respect of the Series
D Preferred Shares unless simultaneously in connection therewith the Company effects an identical
stock split, recapitalization or similar adjustment to the Series E Preferred Shares.

(e) The Company shall not, whether by merger, consolidation, amendment to the Articles
Supplementary, the Series E Articles Supplementary or the Declaration of Trust, operation of law or
otherwise, effect any stock split, recapitalization or similar adjustment in respect of the Series
E Preferred Shares unless simultaneously in connection therewith the Company effects an identical
stock split, recapitalization or similar adjustment to the Series D Preferred Shares.

Section 5.7. Certificates; Other Information.

(a) Financial Covenants Compliance Certificates. Not later than the earlier of (i) 45
days after the end of each fiscal quarter of the Company and (ii) the date of the filing of the
Company’s Quarterly Report on Form 10-Q for such fiscal quarter, the Company shall deliver to the
Investor a certificate (the “Quarterly Compliance Certificate”), executed by the chief
executive officer or the chief financial officer of the Company, substantially in the form of
Exhibit F: (x) certifying that no Draw Down Termination Event or Mandatory Redemption
Triggering Event has occurred or, if a Draw Down Termination Event or Mandatory Redemption
Triggering Event has occurred, specifying the nature and extent thereof and any corrective action
taken or proposed to be taken with respect thereto and (y) for so long as the covenants in
Section 5.10 remain in effect, setting forth calculations in reasonable detail with respect
to compliance with Section 5.10.

(b) Financial Statements. If the Company no longer is required to file periodic
reports with the Commission pursuant to the Exchange Act, the Company shall deliver to the Investor
financial statements, including notes and schedules thereto, and other information in substantially
similar form to the financial statements and other information required to be filed by Form 10-Q
and Form 10-K of the Exchange Act and within the time periods required under the Exchange Act;
provided, however, that (i) such annual and quarterly reports on Form 10-K and Form
10-Q shall not be required to comply with Regulation G under the Exchange Act or Item 10(e) of
Regulation S-K with respect to any “non-GAAP” financial information contained therein or Rule 3-10
or Rule 3-16 of Regulation S-X, (ii) the Company will not be required to comply with Sections 302,
906 and 404 of the Sarbanes-Oxley Act of 2002 or otherwise furnish any information, certificates or
reports required by Items 307 or 308 of Regulation S-K and (iii) the Company shall include the
information regarding director, trustee and management compensation required under the Exchange Act
to be included in a public company’s quarterly and year-end reports, including the compensation
discussion and analysis, summary compensation table and other information required by Part III of
Form 10-K.

Section 5.8. Qualification as a REIT. Each of the Company and Taberna (a) shall use its
commercially reasonable efforts to operate in a manner in accordance with the requirements for
qualification and taxation as a REIT and (b) shall use its commercially reasonable efforts not to
become a USRPHC. In the event of the taking or proposed taking of any action that would cause any
representation set forth in Section 4.27 to be incorrect if made as of any date following
the Effective Date, including the Board in good faith determining by resolution that it is no
longer in the best interests of the Company for the Company or Taberna to continue to so qualify,
the Issuer Parties shall use reasonable efforts to notify the Investor prior to the taking of such
action, subject to receipt by the Company from the Investor of customary undertakings to maintain
such information in confidence and in accordance with Law.

Section 5.9. Investment Company Act. The Company will conduct its affairs in such a manner
so as to reasonably ensure that neither it nor any of its Subsidiaries will be or become an
“investment company” required to register under the Investment Company Act.

Section 5.10. Financial Covenants.

(a) Repurchase Agreements. None of the Issuer Parties or any of their respective
Subsidiaries shall:

(i) enter into a Repurchase Agreement under which any of them incurs Indebtedness if and to
the extent the Indebtedness that may be incurred under such Repurchase Agreement, when added to any
other Indebtedness that is secured by the assets pledged as collateral to secure obligations under
the Repurchase Agreement, may exceed seventy-five percent (75%) of the Fair Market Value of the
securities or other financial assets owned by them and pledged as collateral to secure obligations
under such Repurchase Agreement (the “Repurchase Agreement LTV Cap”);

(ii) permit the Indebtedness incurred by any Issuer Party or a Subsidiary thereof in respect
of any Contract referred to in clause (a)(i) above or any such Contract that an Issuer Party or any
of its Subsidiaries entered into prior to the Effective Date, when added to any other Indebtedness
that is secured by the securities or other financial assets that are pledged as collateral to
secure obligations under such Contract, to exceed the Repurchase Agreement LTV Cap.

(b) Short Term Facilities. None of the Issuer Parties or any of their respective
Subsidiaries shall after the Effective Date:

(i) enter into a Short Term Facility under which any of them incurs Indebtedness if and to the
extent the Indebtedness that may be incurred under such Short Term Facility, when added to any
other Indebtedness that is secured by the securities or other financial assets pledged as
collateral to secure obligations under the Short Term Facility, may exceed seventy-five percent
(75%) of the Fair Market Value of the assets owned by them and pledged as collateral to secure
obligations under such Short Term Facility (the “Short Term Facility LTV Cap”);

(ii) permit the Indebtedness incurred by any Issuer Party or a Subsidiary thereof in respect
of any Contract referred to in clause (b)(i) above and entered into after the Effective Date, when
added to any other Indebtedness that is secured by the securities or other financial assets pledged
as collateral to secure obligations under such Contract, to exceed the Short Term Facility LTV Cap;

(c) Bridge Loans. None of the Issuer Parties or any of their respective Subsidiaries
shall after the Effective Date:

(i) enter into a Contract under which any of them incurs Indebtedness and for which any Bridge
Loans owned by any of them are pledged as collateral to secure their obligations under such
Contract if and to the extent the Indebtedness that may be incurred under such Contract, when added
to any other Indebtedness that is secured by the Bridge Loans pledged as collateral to secure
obligations under such Contract, may exceed fifty percent (50%) of the Fair Market Value of the
Bridge Loans owned by them and pledged as collateral to secure obligations under such Contract (the
“Bridge Loan LTV Cap”);

(ii) permit the Indebtedness incurred by any Issuer Party or a Subsidiary thereof in respect
of any Contract referred to in clause (c)(i) above and entered into after the Effective Date, when
added to any other Indebtedness that is secured by the Bridge Loans pledged as collateral to secure
obligations under such Contract, to exceed the Bridge Loan LTV Cap.

(d) Mezzanine Loans. None of the Issuer Parties or any of their respective
Subsidiaries shall enter into a Contract after the Effective Date under which any of them incurs
Indebtedness and for which any Mezzanine Loans owned by any of them are pledged as collateral to
secure their obligations under such Contract.

(e) NewSub Net Worth. The Issuer Parties shall not permit, as of the last day of any
fiscal quarter of the Company, NewSub’s Net Worth to be less than 110% of the sum of (i) the
aggregate liquidation preference of all outstanding Series D Preferred Shares plus (ii) accrued but
unpaid dividends on such Series D Preferred Shares; provided, however, that if the Issuer Parties
fail to satisfy this Net Worth test as of the last day of any fiscal quarter of the Company, the
Issuer Parties shall have sixty (60) days from such last day of the applicable fiscal quarter to
re-establish compliance with this Net Worth test and shall not be deemed in breach of this
Agreement during such period.

For purposes of this Agreement, Net Worth shall be calculated by the Company (in a manner
consistent with the methodology and analytics used in the preparation of the Company’s audited
financial statements, except as otherwise expressly provided in the definition of Net Worth) and
set forth in a certificate that is substantially in the form of Exhibit N and executed by
the chief executive officer or the chief financial officer of the Company. With respect to each of
the first three fiscal quarters of each of the Company’s fiscal years, such certificate shall be
sent to the Investor no later than the earlier of (i) 45 days after the last day of such fiscal
quarter, and (ii) the date of the filing of the Company’s Quarterly Report on Form 10-Q for such
fiscal quarter. With respect to the Company’s fiscal year, such certificate shall be sent to the
Investor no later than the earlier of (i) 120 days after the last day of such fiscal year and (ii)
the date of filing of the Company’s Annual Report on Form 10-K for such fiscal year.

(f) Other Financing Assets. None of the Issuer Parties or any of their respective
Subsidiaries shall after the Effective Date:

(i) enter into a Contract under which any of them incurs Indebtedness if and to the extent the
Indebtedness that may be incurred under such Contract, when added to any other Indebtedness that is
secured by the Other Financing Assets pledged as collateral to secure obligations under such
Contract, may exceed, as of the date of entry, fifty percent (50%) of the Fair Market Value of the
Other Financing Assets owned by them and pledged as collateral to secure obligations under such
Contract (the “Other Financing Assets LTV Cap”); or

(ii) permit the Indebtedness incurred by any Issuer Party or a Subsidiary thereof in respect
of any Contract referred to in clause (f)(i) above and entered into after the Effective Date, when
added to any other Indebtedness that is secured by the Other Financing Assets pledged as collateral
to secure obligations under such Contract, to exceed the Other Financing Assets LTV Cap.

(g) Real Property Assets. None of the Issuer Parties or any of their respective
Subsidiaries shall after the Effective Date:

(i) enter into a Contract under which any of them incurs Indebtedness and for which real
property owned by any of them is mortgaged or pledged as collateral to secure their obligations
under such Contract if and to the extent the Indebtedness that may be incurred under such Contract,
when added to any other Indebtedness that is secured by the real property mortgaged or pledged as
collateral to secure obligations under such Contract, may exceed eighty percent (80%) of the Fair
Market Value of the real property owned by them and mortgaged or pledged as collateral to secure
obligations under such Contract (the “Real Property LTV Cap”);

(ii) permit the Indebtedness incurred by any Issuer Party or a Subsidiary thereof in respect
of any Contract referred to in clause (g)(i) above and entered into after the Effective Date, when
added to any other Indebtedness that is secured by the real property mortgaged or pledged as
collateral to secure obligations under such Contract, to exceed the Real Property LTV Cap.

Section 5.11. Maturity of Investments; New Investments and Modification of Existing
Investments. NewSub shall not make loans or other investments with the proceeds contributed to
it by the Company on account of the issuance and sale of the Securities to the Investor (other than
CMBS loans where the aggregate amount of equity of NewSub in the aggregate principal amount of such
CMBS loans does not exceed $40,000,000 in the aggregate) with a Final Maturity Date (taking into
account all extension options with respect to such loan or other investment) that is later than the
tenth anniversary of the Effective Date. The Issuer Parties shall use their commercially
reasonable efforts to enforce all of their rights and remedies under the Contracts for each loan
and other investment made by NewSub and its Subsidiaries to cause the obligations of all obligors
under such Contracts to be repaid in full in cash by the Final Maturity Date of each such Contract,
or if any such obligor is in breach of repayment of its obligations on the Final Maturity Date
under any such Contract, then promptly thereafter, including, without limitation, exercising and
enforcing all rights thereunder and pursing all remedies, including commencing an action, suit or
proceeding to enforce the rights of NewSub and its Subsidiaries under such Contract, provided that
the foregoing shall not limit the Company from engaging in restructurings and modifications of
loans and investments (including exchange transactions) or entering into a settlement or
modification arrangement with any borrower under a loan covered by such Contract, provided that the
Company shall use its commercially reasonable efforts to limit any extension of the maturity date
of any loan (other than CMBS loans where the aggregate amount of equity of NewSub in the aggregate
principal amount of such CMBS loans does not exceed $40,000,000 in the aggregate) to no later than
the tenth anniversary of the Effective Date.

Section 5.12. Liquidation of NewSub. The LLC Agreement shall provide that the existence of
NewSub shall continue until the 121/2 year anniversary of the Effective Date. The Operating
Partnership shall cause NewSub to commence implementing an orderly liquidation and dissolution and
distribution of its assets no later than the tenth anniversary of the Effective Date.

Section 5.13. Securities. The Company shall at all times reserve and keep available, free
of all preemptive and similar rights: (a) solely for issuance and delivery at a Closing, the
requisite aggregate number of authorized but unissued Series D Preferred Shares, Warrants and
Common Share Appreciation Rights, (b) solely for issuance and delivery upon exercise of the
Warrants, the number of Common Shares from time to time issuable upon exercise of all Warrants at
the time outstanding and (iii) the number of Series E Preferred Shares from time to time issuable
in a Series E Exchange. NewSub shall at all times reserve and keep available, free of all
preemptive and similar rights, solely for issuance and delivery at a Closing, the requisite
aggregate number of authorized but unissued Subsidiary Preferred Units.

Section 5.14. Additional Securities Restrictions. The Company shall not, by amendment of
the Charter or through any consolidation, merger, reorganization, transfer of assets, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms of the Warrant. The Company (a) will not permit the par value of
any shares of beneficial interest receivable upon the exercise of the Warrant to exceed the amount
payable therefor upon such exercise, (b) will take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable
Common Shares upon the exercise of the Warrants from time to time outstanding and (c) will not take
any action which results in any adjustment of the Warrant Price (as defined in the Warrant) if the
total number of Common Shares (or Other Securities (as defined in the Warrant)) issuable after the
action upon the exercise of all of the Warrants would exceed the total number of Common Shares (or
Other Securities) then authorized by the Charter and available for issuance upon such exercise.

Section 5.15. Stand-Still. Except pursuant to, and as contemplated by, this Agreement and
the Related Documents, so long as the Issuer Parties are not in default under this Agreement or a
Related Document, the Investor agrees that, for so long as it is obligated to purchase Securities
hereunder and thereafter as provided in the introduction to this Article V, without the
prior written consent of the Company, the Investor will not, nor will the Investor permit its
Affiliates to: (a) acquire, offer to acquire or agree to acquire, directly or indirectly, by
purchase or otherwise, any voting securities or debt securities or obligations of the Company,
securities convertible into or exchangeable for voting securities of the Company or debt securities
or obligations of the Company, or direct or indirect rights or options to acquire any voting
securities or debt securities or obligations of the Company; (b) except at the specific written
request of the Company, propose to enter into any merger or business combination involving the
Company or to purchase a material portion of the assets of the Company or to make any tender offer
or exchange offer for any voting securities or debt securities or obligations of the Company or any
other extraordinary transaction with respect to the Company; (c) make, or in any way participate,
directly or indirectly, in any “solicitation” of “proxies” to vote (as such terms are used in the
proxy rules of the Exchange Act), or seek to advise or influence any person with respect to the
voting of, any voting securities of the Company; or (d) form, join or in any way participate in a
“group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to any voting
securities of the Company; provided, however, that the Investor may engage in one
or more such transactions if each such transaction is pre-approved by a majority of the Board. For
purposes of this Section 5.15, a Person’s status as a limited partner of, or similar
investor in, the Investor or any Affiliate of the Investor shall not, on its own, deem such Person
to be an Affiliate of the Investor.

Section 5.16. Board of Trustee Matters.

(a) Investor Board Designee.

(i) On the first Closing Date under this Agreement, the Company shall (A) create a vacancy on
its Board and, in accordance with the Bylaws, appoint to fill such vacancy a trustee designated by
the Investor (the “Investor Board Designee”) and (B) enter into an indemnification
agreement with such Investor Board Designee substantially in the form attached as Exhibit G
(a “Trustee Indemnification Agreement”). So long as the Investor is entitled to designate
a Series D Trustee (as defined in the Articles Supplementary) pursuant to Section 6(b) of the
Articles Supplementary, the Series D Trustee under the Articles Supplementary shall also constitute
the Investor Board Designee hereunder.

(ii) At any time at which the Company’s shareholders shall have the right to, or shall, vote
for or consent in writing to the election of trustees of the Company (whether at an annual meeting
of the Company’s shareholders, a special meeting of the Company’s shareholders called for the
purpose of electing trustees of the Company or at any adjournment or postponement thereof), then,
and in each such event, the Company shall nominate a person designated by the Investor to serve as
the Investor Board Designee.

(iii) At each annual meeting of the Company’s shareholders, special meeting of the Company’s
shareholders called for the purpose of electing trustees of the Company, and at any adjournment or
postponement thereof, the Board (or a duly authorized committee thereof) shall (A) nominate the
Investor Board Designee for election as a member of the Board, (B) include the Investor Board
Designee in any proxy statement and related materials used by the Company in respect of the
election to which such nomination pertains and (C) not nominate more individuals for election as a
member of the Board than may be elected at such meeting. The Company agrees to use the same
efforts to cause the Investor Board Designee to be elected to the Board as it uses to cause other
nominees to be elected to the Board. If the Investor Board Designee is not elected a member of the
Board at such a shareholders’ meeting, a replacement Investor Board Designee may be selected by the
Investor to serve as trustee, and the Board shall appoint (as promptly as practicable) such
replacement Investor Board Designee to the Board, including, if necessary, by adding additional
trustee positions to the Board. Upon the death, resignation or removal of an Investor Board
Designee, the Investor may designate a replacement Investor Board Designee to fill such vacancy,
and the Company shall appoint such replacement Investor Board Designee to the Board as promptly as
practicable. Any vacancy in the position of the Investor Board Designee may be filled only by the
Investor. The Company shall enter into a Trustee Indemnification Agreement with the applicable
Investor Board Designee as of the date such Investor Board Designee becomes a trustee on the Board.

(iv) As a condition to being designated hereunder, the Investor Board Designee shall agree to
be bound by all policies and agreements (including confidentiality agreements and indemnification
agreements) as are applicable to other non-management trustees from time to time. The Investor
shall provide, and shall cause any Person designated by it to act as Investor Board Designee
hereunder to provide, all information regarding the Investor Board Designee reasonably requested by
the Company to the extent necessary to comply with all of its disclosure and other reporting
obligations under applicable laws and the rules and regulations of the Trading Market on which the
Common Shares are listed and trade. The Investor Board Designee shall be compensated and his or
her expenses reimbursed according to the compensation and expense reimbursement standards and
policies set forth for non-management trustees of the Board from time to time by the Board or any
committee thereof.

(v) Upon the request of the Investor or the Investor Board Designee, the Company shall appoint
the Investor Board Designee as a member of the Compensation Committee and the Nominating and
Governance Committee of the Company’s Board of Trustees only if and so long as the Board of Trustee
finds that such Investor Board Designee qualifies as an independent trustee under applicable rules
and regulations of the Trading Market on which the Common Shares are listed, based upon a reasoned
opinion of legal counsel of national repute selected by the Investor delivered to the Company,
obtained at the Company’s expense, that it would be reasonable for the Board of Trustees to
determine that the Investor Board Designee qualifies as independent, which opinion shall be
reasonably acceptable to the Company. Such opinion shall also address the Investor Board Designee’s
qualification for purposes of Rule 16b-3 of the Exchange Act and Section 162(m) of the Code;
provided, however, that such Rule 16b-3 and 162(m) determinations shall not be a
condition to the Investor Board Designee’s appointment to a committee of the Board of Trustees. At
any time the Investor Board Designee is not a member of either such committee (whether because he
or she does not meet the independence criteria set forth above or otherwise), such Investor Board
Designee shall nonetheless be invited to participate as an observer without voting rights to all
meetings of the Company’s Compensation Committee and Nominating and Governance Committee, and shall
be given notice of such meetings at the same time as notice is given to other committee members and
shall be given materials provided to other committee members at the same time as such materials are
provided to such members.

(vi) The Company shall cause the Investor Board Designee to be invited to participate as an
observer without voting rights in all meetings of the board of trustees of Independence Realty
Trust, Inc. (“IRT”), and shall cause (x) notice of such meetings to be given to the
Investor Board Designee at the same time as notice is given to members of the board of trustees of
IRT and (y) materials provided to members of the board of trustees of IRT to be provided to the
Investor Board Designee at the same time as provided to the members of the board of trustees of
IRT. The foregoing shall be conditioned on the Investor Board Designee’s agreement that he or she
will be bound by the same confidentiality obligations that apply to members of the board of
trustees of IRT.

(vii) In the event of the removal or termination of the Chief Executive Officer as of the
Signing Date by the Board of Trustees, the Company shall appoint a search committee to identify a
replacement Chief Executive Officer and make recommendations to the Board of Trustees.  The Company
shall appoint the Investor Board Designee to be a member to such search committee.  Any executive
search firm or other similar recruiting firm retained by the search committee in furtherance of its
mission shall be acceptable to the Investor Board Designee in his or her sole discretion.

Section 5.17. HSR Act. Upon request of a party hereunder, from time to time, each other
party hereunder shall cooperate with the requesting party and shall promptly furnish to the
requesting party all information reasonably requested by the requesting party in order to determine
whether any pre-merger notification or similar notification or filing is required pursuant to the
HSR Act or any other Law in connection with the consummation of the transactions contemplated by
this Agreement and the Related Documents, and will cooperate with and assist the requesting party
in connection with resolving any investigation or other inquiry by any governmental entity under
the HSR Act or other Law with respect to the transactions contemplated by this Agreement and the
Related Documents. Each party shall promptly prepare and deliver any pre-merger notification or
similar notification or filing that the other parties hereunder determine to be required or
advisable.

Section 5.18. Use of Proceeds. The gross proceeds from the sale of the Securities will be
contributed, directly or indirectly, to NewSub and shall be used by NewSub to make loans or other
investments in the ordinary course of business in accordance with this Agreement and the LLC
Agreement. NewSub may from time to time form one or several wholly owned Subsidiaries to which it
may contribute all or a portion of such proceeds for investment by such Subsidiaries as provided
above; provided, however, that NewSub shall maintain ownership of 100% of the
equity interests of such Subsidiaries. NewSub and its Subsidiaries shall not make any loans or
other investments (including unfunded commitments) to any obligor or issuer, when aggregated with
all other loans or investments (including unfunded commitments made by NewSub or its Subsidiaries
to such obligor or issuer and its Affiliates would exceed $10 million in the aggregate, without the
prior written approval of the Investor.

Section 5.19. Restrictions on Transfer.

(a) Subject to Section 5.19(j), prior to the earlier of (i) two years from the
Effective Date, (ii) a Draw Down Termination Event and (iii) the Total Commitment having been fully
funded (such period from the Effective Date to the earlier of such dates being referred to below as
the “Restricted Period”), the Investor shall not Transfer any Securities or Common Shares
issued or issuable upon exercise of the Warrants or any interest in any Securities or Common Shares
issued or issuable upon exercise of the Warrants except (A) to any Person with the prior written
consent of the Company or (B) to an Affiliate of the Investor who has agreed in writing to be bound
by the provisions of this Agreement, including the restrictions on Transfer contained in this
Section 5.19, as if it were the Investor hereunder; provided, however that
all other provisions in this Section 5.19 shall be complied with in connection with any
such Transfer other than Section 5.19(c).

(b) Subject to Section 5.19(j), following the Restricted Period, the Investor shall
not Transfer any Series D Preferred Shares except pursuant to a Permitted ROFO Transfer or pursuant
to Section 5.19(c) below and shall not Transfer any other Securities of the Company or
Common Shares issued upon exercise of a Warrant except pursuant to Section 5.19(d) through
(h) (each Person to whom a Transfer of such Securities or Common Shares is made and
permitted to be made pursuant to this Section 5.19(b) or pursuant to Section
5.19(a) is a “Permitted Transferee”); provided, however, with respect
to transfers of Series D Preferred Shares made pursuant to clauses (i) and (ii) of the definition
of Permitted ROFO Transfer, (I) the restrictions contained in this Section 5.19 will
continue to be applicable to the Series D Preferred Shares following such Transfer, and (II) the
Permitted Transferee shall have agreed in writing to be bound by the provisions of this Agreement,
including the restrictions on Transfer contained in this Section 5.19, as if it were the
Investor hereunder; and provided further, for all Permitted ROFO Transfers, all
provisions in this Section 5.19 (other than Section 5.19(c)) shall be complied with (or
waived by the Company) in connection with any such Transfer. Notwithstanding anything contained
herein to the contrary, the rights of the Investor under Section 5.16 shall not be
Transferable by the Investor to any other Person.

(c) Right of First Offer.

(i) Subject to Section 5.19(j), following the expiration of the Restricted Period, if
the Investor desires to Transfer any Series D Preferred Shares other than pursuant to a Permitted
ROFO Transfer, then the Investor shall deliver a written notice (the “ROFO Notice”) to the
Company, stating that the Investor desires to Transfer Series D Preferred Shares in accordance with
this Section 5.19(c) and setting forth the number of Series D Preferred Shares proposed to
be Transferred (the “Offered Shares”), and the Company shall have the right to offer to
purchase all but not less than all such Offered Shares subject to the terms and conditions of this
Section 5.19(c) (the “Offer to Purchase”). The Company shall have 10 Business Days
from delivery of the ROFO Notice to make an Offer to Purchase. The Company shall be deemed to have
declined the opportunity to make an Offer to Purchase if it fails to communicate in writing its
offer by the end of such 10 Business Day period. If the Company wishes to make an Offer to
Purchase, it shall deliver to the Investor a written notice (the “Offer Notice”), stating
that the Company is willing to purchase all, but not less than all, of the Offered Shares and
setting forth the proposed purchase price payable in cash for the Offered Shares (the “Offer
Price”). The Investor shall have 5 Business Days from delivery of the Offer Notice to accept
or decline in writing the Offer to Purchase made pursuant to the Offer Notice, and shall be deemed
to have declined such Offer to Purchase if it fails to deliver such written notice by the end of
such 5 Business Day period. If the Investor accepts the Offer to Purchase made pursuant to the
Offer Notice, then the Company and the Investor shall close on the purchase of the Offered Shares
at the Offer Price within 30 Business Days of the date the Investor notified the Company of its
acceptance of the Offer to Purchase made pursuant to the Offer Notice. If the Investor accepts the
Offer to Purchase and the Company fails to purchase the Offered Shares at the Offer Price within
such 30 Business Day period, then Sections 5.19(a), (b) and (c) shall no
longer apply to any Transfer of any Securities or Common Shares issued or issuable upon exercise of
the Warrants.

(ii) If the Investor declines or is deemed to have declined the Offer to Purchase, then the
Investor shall have the right to Transfer all or any portion of the Offered Shares to any other
Person for a purchase price equal to at least 95% of the Offer Price set forth in the Offer Notice,
which Transfer must be consummated within one hundred and eighty (180) days immediately following
the Investor’s decline (or deemed decline) of the Offer to Purchase. The consideration received by
the Investor pursuant to any such Transfer may be in cash or any other assets or property, provided
that the value of any non-cash assets or property received by the Investor in connection with the
Transfer shall be the fair market value of such assets or property as determined by the Investor in
good faith. Any Offered Shares not Transferred as provided above within such one hundred and
eighty (180) days will be again subject to the provisions of this Section 5.19(c) (unless
Transferred pursuant to a Permitted ROFO Transfer or if Section 5.19(c) is otherwise no longer
applicable to such Offered Shares).

(iii) If the Company shall, for any reason whatsoever, disagree with the determination of fair
market value made by the Investor pursuant to clause (ii) above, then the Company shall by notice
to the Investor (an “Appraisal Notice”) given within thirty (30) days after the Investor’s
determination elect to dispute such determination, and such dispute shall be resolved as set forth
in this clause (iii). The Company shall, within thirty (30) days after an Appraisal Notice shall
have been given, engage an independent nationally recognized investment bank or other qualified
financial institution acceptable to the Company and the Investor (“Appraiser”) to make an
independent determination of the fair market value (the “Appraiser’s Determination”). In
arriving at its determination, the Appraiser shall base any valuation upon the fair market value of
such property (or securities) assuming that such property (or securities) were sold to an
unaffiliated third party in an arm’s-length transaction. The Appraiser’s Determination shall be
final and binding on the Company and the Investor. The costs of conducting an appraisal shall be
borne by the party whose assertion of the fair market value was the farthest from the final
determination of the fair market value determined by the Appraiser.

(d) Each Series D Preferred Share and the Subsidiary Preferred Unit to which it is linked as
provided for in Section 2.2 shall be required to be Transferred at all times together and
to the same record and beneficial owner, including in a Series E Exchange as provided in
Section 5.19(h) below.

(e) Any Transfer by the Investor of Securities or Common Shares issued upon exercise of the
Warrants may only be made pursuant to an effective registration statement under the Securities Act
or pursuant to an exemption from the registration requirements of the Securities Act. Except as
otherwise required pursuant to Section 5.19(c), the Investor shall notify the Company in writing
promptly following any Transfer by the Investor of Securities or Common Shares issued upon exercise
of the Warrants.

(f) Each certificate or instrument representing Securities and Common Shares issuable upon
exercise of Warrants shall be imprinted with a legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION
FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER
SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF OCTOBER 1,
2012, AS AMENDED AND MODIFIED FROM TIME TO TIME, AND THE ISSUER
RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH SECURITIES UNTIL
SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH TRANSFER.
A COPY OF SUCH CONDITIONS SHALL BE FURNISHED BY THE ISSUER TO THE
HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

(g) The Series D Preferred Shares, the Series E Preferred Shares and Common shares issuable
upon exercise of Warrants shall be subject to the provisions of Article VII of the Charter except
to the extent that such provisions are waived pursuant to an exception granted to Investor pursuant
to Section 1(G) of Article VII. Each certificate or instrument representing Series D Preferred
Shares, Series E Preferred Shares and Common Shares issuable upon exercise of Warrants shall be
imprinted with a legend reflecting such restrictions.

(h) In connection any Transfer of Securities or Common Shares issued or issuable upon exercise
of the Warrants (except for Transfers under Rule 144 of the Securities Act or Transfers in an
offering registered under the Securities Act), the Transferor shall advise the Transferee of the
ownership limitations set forth in the Company’s Charter, including Article VII thereof.

(i) Immediately prior to any offer or sale of Series D Preferred Shares in a brokers
transaction under Rule 144 or pursuant to an offering registered under the Securities Act, the
Investor shall exchange (the “Series E Exchange”) such Series D Preferred Shares for an
equivalent number of newly issued Series E Cumulative Redeemable Preferred Shares, par value $0.01
per share, of the Company (the “Series E Preferred Shares”) having the preferences, rights,
privileges, powers, restrictions, limitations and other terms with respect thereto set forth in the
form of Articles Supplementary for the Series E Preferred Shares attached as Exhibit O
hereto (the “Series E Articles Supplementary”). In connection with such Series E Exchange,
the Investor shall surrender to the Company certificates for the number of Series D Preferred
Shares subject to the Series E Exchange accompanied by all transfer powers and other documentation
reasonably required by the Company for such Series E Exchange, and the Company shall (a) pay the
Investor, in cash, an amount equal to all accrued but unpaid dividends on the Series D Preferred
Shares subject to such exchange and (b) issue to the Investor a certificate representing the Series
E Preferred Shares issuable to the Investor pursuant to such Series E Exchange. The Investor shall
then be entitled to Transfer such Series E Preferred Shares so long as it has complied with all
other applicable terms and conditions to Transfer under this Section 5.19. Any Person who
acquires any Series E Preferred Shares hereunder shall only be entitled to the preferences, rights,
privileges, powers, restrictions, limitations and other terms set forth in the Series E Articles
Supplementary and shall not be bound by the terms of this Agreement or any Related Documents, or
entitled to any rights of the Investor under this Agreement or any Related Documents, or subject to
any covenant or obligation of the Investor under this Agreement or any Related Documents. All
Series D Preferred Shares surrendered in a Series E Exchange shall be restored to unclassified
preferred shares of the Company which may be reissued or reclassified by the Board from time to
time in accordance with the Charter (provided that such preferred shares may not be re-issued or
sold as Series D Preferred Shares) and all Subsidiary Preferred Units linked to such shares shall
be cancelled.

(j) Upon the occurrence of a ROFO Termination Event and during the continuation of such event,
all restrictions on Transfer set forth in Section 5.19(a), 5.19(b) and
5.19(c) shall be suspended and shall cease to apply to any Transfer of Securities. Such
restrictions shall be automatically reinstated and shall become effective to all future Transfers
of Securities, however, if the ROFO Termination Event has terminated or been cured.

Section 5.20. Notice of Draw Down Termination Event. The issuer Parties shall provide
written notice to the Investor promptly and an any event no later than five (5) Business Days when
it becomes aware of any event that constitutes or, upon notice and passage of time, would
constitute, a Draw Down Termination Event.

Section 5.21. Future Commission Documents. Each Future Commission Document, when such
document becomes effective or is filed with the Commission, as the case may be, shall comply in all
material respects with the requirements of the Securities Act or the Exchange Act, as applicable,
and other Laws applicable to it, and shall not contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading.

Section 5.22. Series E Articles Supplementary. The Company shall continue its ongoing
discussions with the Trading Market to finalize the terms of the Series E Articles Supplementary so
as to comply fully with the rules and policies of the Trading Market for the listing of such
securities. The Company shall file the finalized Series E Articles Supplementary with the
Department of Assessments and Taxation of the State of Maryland as soon as practicable and in any
event within sixty (60) days following the Effective Date, in the form attached as Exhibit
O hereof, subject to any changes required by the Trading Market under its regulations and
policies, which changes shall be approved by the Investor (whose consent shall not unreasonably
withheld, conditioned or delayed).

ARTICLE VI

OPINIONS OF COUNSEL AND CERTIFICATE; CONDITIONS TO THE SALE AND PURCHASE OF THE SECURITIES

Section 6.1. Opinions of Counsel and Certificate. Simultaneously with the execution and
delivery of this Agreement, the Investor has received (a) opinions of outside counsels to the
Issuer Parties, each dated the Effective Date, (i) as to tax matters, substantially in the form of
Exhibit H (the “Tax Opinion”), (ii) as to matters of Maryland law, substantially in
the form of Exhibit I (the “Maryland Law Opinion”) and (iii) as to other general
matters related to the Agreement and the Related Documents and the transactions contemplated hereby
and thereby, substantially in the form of Exhibit J (the “General Closing Opinion”
and together with the Tax Opinion and the Maryland Law Opinion, the “Legal Opinions”) and
(b) a Closing Certificate from each Issuer Party, dated the Effective Date, in the form of
Exhibit K hereto (each, a “Closing Certificate”). The Legal Opinions may be based
upon customary representations made by the Company and its Subsidiaries in an officer’s certificate
that is reasonably acceptable to the Investor.

Section 6.2. Conditions Precedent to the Obligation of the Issuer Parties. The obligation
hereunder of the Issuer Parties to issue and sell the Securities to the Investor under any Draw
Down Notice is subject to the satisfaction or (to the extent permitted by applicable law) waiver of
each of the conditions set forth below. These conditions are for the Issuer Parties’ sole benefit
and (to the extent permitted by applicable law) may be waived by the Issuer Parties in writing at
any time in their sole discretion.

(a) Accuracy of the Investor’s Representations and Warranties. The representations
and warranties of the Investor contained in this Agreement and the Related Documents (i) that are
not qualified by “materiality” shall have been true and correct in all material respects when made
and shall be true and correct in all material respects as of the applicable Draw Down Exercise Date
and the applicable Closing Date with the same force and effect as if made on such dates, except to
the extent such representations and warranties are as of another date, in which case, such
representations and warranties shall be true and correct in all material respects as of such other
date and (ii) that are qualified by “materiality” shall have been true and correct when made and
shall be true and correct as of the applicable Draw Down Exercise Date and the applicable Closing
Date with the same force and effect as if made on such dates, except to the extent such
representations and warranties are as of another date, in which case, such representations and
warranties shall be true and correct as of such other date.

(b) Performance by the Investor. The Investor shall have performed, satisfied and
complied in all material respects with all covenants, agreements and conditions required by this
Agreement and the Related Documents to be performed, satisfied or complied with by the Investor at
or prior to the applicable Draw Down Exercise Date and the applicable Closing Date.

(c) No Injunction. No statute, regulation, order, decree, writ, ruling or injunction
shall have been enacted, entered, promulgated, threatened or endorsed by any court or governmental
authority of competent jurisdiction which prohibits the consummation of or which would materially
modify or materially delay any of the transactions contemplated by this Agreement or the Related
Documents.

(d) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator
or any court or governmental authority shall have been commenced or threatened, and no inquiry or
investigation by any governmental authority shall have been commenced or threatened, against the
Issuer Parties or the Investor or any of their respective Subsidiaries, or any of their respective
officers, trustees, directors or Affiliates, seeking to restrain, prevent or materially change the
transactions contemplated by this Agreement or the Related Documents, or seeking damages in
connection with such transactions.

(e) NYSE Approval of Additional Listing Application. The NYSE shall have approved an
Additional Listing Application covering the Common Shares issuable upon exercise of the Warrants.

(f) Ownership Representations. The Investor shall have delivered to the Issuer
Parties a letter of representations, substantially in the form attached as Exhibit M
hereto.

Section 6.3. Conditions Precedent to the Obligation of the Investor. The obligation
hereunder of the Investor to accept a Draw Down Notice and to acquire and pay for the Securities is
subject to the satisfaction or (to the extent permitted by applicable law) waiver, at or before
each Draw Down Exercise Date and each Closing Date, of each of the conditions set forth below.
These conditions are for the Investor’s sole benefit and (to the extent permitted by applicable
law) may be waived by the Investor in writing at any time in its sole discretion.

(a) Accuracy of the Issuer Parties’ Representations and Warranties. The
representations and warranties of the Issuer Parties contained in this Agreement and the Related
Documents (i) that are not qualified by “materiality” or “Material Adverse Effect” shall have been
true and correct in all material respects when made and shall be true and correct in all material
respects as of the applicable Draw Down Exercise Date and the applicable Closing Date with the same
force and effect as if made on such dates, except to the extent such representations and warranties
are as of another date, in which case, such representations and warranties shall be true and
correct in all material respects as of such other date and (ii) that are qualified by “materiality”
or “Material Adverse Effect” shall have been true and correct when made and shall be true and
correct as of the applicable Draw Down Exercise Date and the applicable Closing Date with the same
force and effect as if made on such dates, except to the extent such representations and warranties
are as of another date, in which case, such representations and warranties shall be true and
correct as of such other date.

(b) No Suspension. Trading in the Common Shares shall not have been suspended by the
Commission or any Trading Market (except for any suspension of trading of limited duration agreed
to by the Company, which suspension shall be terminated prior to the applicable Draw Down Exercise
Date and the applicable Closing Date), and the Company shall not have received any notice that the
listing or quotation of the Common Shares on any Trading Market shall be terminated on a date
certain (which termination shall be final and non-appealable).

(c) Performance of the Issuer Parties; Delivery of Certificates. Each Issuer Party
shall have (i) performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by this Agreement and the Related Documents to be performed,
satisfied or complied with by it at or prior to the applicable Draw Down Exercise Date and the
applicable Closing Date and (ii) delivered to the Investor (A) on the applicable Closing Date a
Compliance Certificate substantially in the form attached hereto as Exhibit L and (B) all
Quarterly Compliance Certificates required to be delivered pursuant to Section 5.7(a) prior
to such date, which shall be accurate as of their date of issuance.

(d) No Injunction. No statute, rule, regulation, order, decree, writ, ruling or
injunction shall have been enacted, entered, promulgated, threatened or endorsed by any court or
governmental authority of competent jurisdiction which prohibits the consummation of or which would
materially modify or materially delay any of the transactions contemplated by this Agreement or the
Related Documents.

(e) No Proceedings or Litigation. No action, suit or proceeding before any arbitrator
or any court or governmental authority shall have been commenced or threatened, and no inquiry or
investigation by any governmental authority shall have been commenced or threatened, against any
Issuer Party or the Investor or any of their respective Subsidiaries, or any of their respective
officers, trustees, directors or Affiliates, seeking to restrain, prevent or materially change the
transactions contemplated by this Agreement or the Related Documents, or seeking damages in
connection with such transactions.

(f) Securities Authorized and Delivered. The Series D Preferred Shares, Warrants and
Common Share Appreciation Rights issuable pursuant to such Draw Down Notice shall have been duly
authorized by all necessary trust action of the Company. The Subsidiary Preferred Units issuable
pursuant to such Draw Down Notice shall have been duly authorized by all necessary limited
liability company action of NewSub. The Issuer Parties shall have timely delivered all the
Securities relating to all prior Draw Down Notices and, if one or more Warrants have been exercised
prior to the date of the applicable Draw Down Notice, the Company shall have delivered all
applicable Common Shares to the Investor.

(g) Bring-Down of Legal Opinions. On each Closing Date, the Investor shall have
received opinions, each dated as of such Closing Date, from outside counsel to the Issuer Parties
substantially in the form of the Legal Opinions; provided, however, that in lieu of
such opinions, the Company may cause to be delivered to the Investor a letter in the form
reasonably acceptable to the Investor (a “Reliance Letter”) with respect to each such
opinion to the effect that the Investor may rely on each Legal Opinion delivered pursuant to
Section 6.1 to the same extent as if it were dated the date of such Reliance Letter.

(h) HSR Act. If applicable, the waiting period under the HSR Act applicable to the
issuance of Securities under such Draw Down Notice shall have expired or been terminated.

(i) No Draw Down Termination Event or Mandatory Redemption Triggering Event. No Draw
Down Termination Event or Mandatory Redemption Triggering Event shall exist, or would result from
the closing of transactions contemplated under the Draw Down Notice or from the application of the
proceeds thereof.

(j) NYSE Approval of Additional Listing Application. The NYSE shall have approved an
Additional Listing Application covering the Common Shares issuable upon exercise of the Warrants.

ARTICLE VII

TERMINATION

Section 7.1. Term; Termination.

(a) Unless earlier terminated as provided hereunder, the rights of the Company to deliver a
Draw Down Notice and the obligations of the Investor in respect of any Draw Down Notice pursuant to
this Agreement shall terminate automatically on the earlier of (i) the first day of the month
immediately following the second anniversary of the Effective Date (the “Investment
Period”) and (ii) the date that the Unfunded Commitment equals zero dollars.

(b) The Investor may terminate the rights of the Company to deliver a Draw Down Notice and the
obligations of the Investor in respect of any Draw Down Notice pursuant to this Agreement upon the
occurrence of a Draw Down Termination Event; provided, however, that in the event
of a Draw Down Termination Event pursuant to clause (xiii) of the definition of Draw Down
Termination Event, or in the event of a removal or termination by the Board of the Chief Executive
Officer of the Company as of the Effective Date for “cause” as such term is defined in his
employment agreement with the Company, the right of the Company to deliver a Draw Down Notice and
the obligations of the Investor in respect of such Draw Down Notice shall be suspended until a
replacement Chief Executive Officer acceptable to the Investor shall have been appointed by the
Board.

(c) Any Issuer Party may terminate the rights of the Investor to purchase Securities and the
obligations of the Issuer Parties to effect any Draw Down or issue Securities pursuant to this
Agreement if (i) the Investor shall fail to perform in all material respects any term, covenant or
agreement contained in this Agreement or in any Related Document, which failure to perform (if
susceptible of cure) has continued uncured for a period of 60 days after the earlier of the receipt
of a notice of such failure to perform from an Issuer Party or the Investor first becoming aware of
such failure (10 Business Days only from the date of a failure to pay in case of a breach of a
covenant to pay); or (ii) any representation or warranty of the Investor in this Agreement or any
of the Related Documents shall have been false in any material respect upon the date when made or
deemed to have been made or repeated.

(d) This Agreement shall remain in full force and effect unless terminated pursuant to
Section 7.1(a), Section 7.1(b) or Section 7.1(c) above or otherwise by
written agreement of the Company and the Investor. Any such termination by agreement shall in all
cases be deemed to provide that Articles VIII and IX shall remain in full
force and effect.

(e) For the avoidance of doubt, if this Agreement is terminated after delivery of a Draw Down
Notice but prior to the scheduled Closing Date for the Draw Down set forth therein, the Closing on
such Closing Date shall not be required to occur and none of the parties hereto will have any
liability resulting therefrom.

Section 7.2. Effect of Termination. Notwithstanding anything in this Agreement to the
contrary, no termination of this Agreement by any party shall affect any cash fees paid or payable
to the Investor or its counsel pursuant to Section 9.1, in each case all of which fees
shall be non-refundable, regardless of whether any Draw Down Notices are issued by the Issuer
Parties or any Closing takes place. Nothing in this Section 7.2 shall be deemed to release
the Issuer Parties or the Investor from any liability for any breach under this Agreement or to
impair the rights of the Issuer Parties or the Investor to compel specific performance by the other
of their obligations under this Agreement.

ARTICLE VIII

INDEMNIFICATION

Section 8.1. Indemnification by Issuer Parties. The Issuer Parties shall, jointly and
severally, indemnify, defend and hold harmless the Investor, each Affiliate of the Investor, each
member, manager, partner, shareholder or equity owner of the Investor or such Affiliate, and each
officer, director, trustee, employee, representative, agent and advisor of and to any of the
foregoing, and each person, if any, who controls the Investor within the meaning of Section 15 of
the Securities Act or Section 20(a) of the Exchange Act (each, an “Investor Indemnified
Party”) from and against all losses, claims, damages, settlements, liabilities and expenses
(including reasonable costs of defense and investigation and all attorneys’ fees)
(“Damages”) to which the Investor and each such other Person may become subject (a)
resulting from or arising out of any breach of any representation or warranty, covenant or
agreement in this Agreement or a Related Document by any Issuer Party or (b) under the Securities
Act or otherwise, insofar as such Damages (or actions in respect thereof) arise out of or are based
upon any violation of United States federal or state securities laws or the rules and regulations
of any Trading Market by the Issuer Parties or any of their respective Subsidiaries, Affiliates,
officers, trustees, directors or employees; provided, however, that (A) the Issuer
Parties shall not be liable to the Investor Indemnified Parties under Section 8.1(b) to the
extent that a court of competent jurisdiction shall have determined by a final judgment (from which
no further appeals are available) that such Damages resulted directly and solely from (x) any acts
or failures to act, undertaken or omitted to be taken by the Investor through its gross negligence,
bad faith or willful misconduct or (y) to the extent that such Damages resulted or arose from the
breach by the Investor of any representation, warranty, covenant or agreement contained in this
Agreement and (B) the indemnity obligations of the Issuer Parties pursuant to Section
8.1(b) shall not apply to any Damages to the extent, but only to the extent, arising out of or
based upon any untrue statement or alleged untrue statement or omission or alleged omission made in
reliance upon and in conformity with written information furnished to the Company by or on behalf
of the Investor expressly for use in any report, schedule, registration, form, statement,
information or other document furnished or filed by the Company with the Commission or any
amendment thereof.

Subject to Section 8.4 and the proviso in Section 8.1 above, the Issuer
Parties shall, jointly and severally, reimburse the Investor Indemnified Parties promptly upon
demand (with accompanying presentation of documentary evidence) for all legal and other costs and
expenses reasonably incurred by the Investor or such Investor Indemnified Parties in investigating,
defending against, or preparing to defend against any such claim, action, suit or proceeding with
respect to which it is entitled to indemnification.

Section 8.2. Indemnification by Investor. The Investor shall indemnify, defend and hold
harmless the Issuer Parties, each Affiliate of the Issuer Parties, each member, manager, partner,
shareholder or equity owner of the Issuer Parties or such Affiliate, and each officer, director,
trustee, employee, representative, agent and advisor of and to any of the foregoing, and each
person, if any, who controls the Issuer Parties within the meaning of Section 15 of the Securities
Act or Section 20(a) of the Exchange Act (each, an “Issuer Indemnified Party” and together
with the Investor Indemnified Party, an “Indemnified Party”) from and against all Damages
to which the Issuer Parties and each such other Person may become subject resulting from or arising
out of any breach of any representation or warranty, covenant or agreement in this Agreement or a
Related Document by the Investor.

Subject to Section 8.4, the Investor shall reimburse the Issuer Indemnified Parties
promptly upon demand (with accompanying presentation of documentary evidence) for all legal and
other costs and expenses reasonably incurred by the Issuer Parties or such Issuer Parties
Indemnified Parties in investigating, defending against, or preparing to defend against any such
claim, action, suit or proceeding with respect to which it is entitled to indemnification.

Section 8.3. Contribution. If for any reason the indemnification provided for in
Section 8.1(b) is not available to, or is not sufficient to hold harmless, an Indemnified
Party in respect of any Damages referred to in Section 8.1(b) or Section 8.2(b), as
applicable, as to which such Indemnified Party is entitled to indemnification thereunder, each
indemnifying party shall, in lieu of indemnifying the Indemnified Party, contribute to the amount
paid or payable by the Indemnified Party as a result of such loss or liability, (i) in the
proportion which is appropriate to reflect the relative benefits received by the indemnifying
party, on the one hand, and by the Indemnified Party, on the other hand, from the sale of
Securities and Common Shares issued or issuable upon exercise of the Warrants which is the subject
of the claim, action, suit or proceeding which resulted in the loss or liability or (ii) if the
allocation provided by clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) above, but also the
relative fault of the indemnifying party, on the one hand, and the Indemnified Party, on the other
hand, with respect to the statements or omissions which are the subject of the claim, action, suit
or proceeding that resulted in the loss or liability, as well as any other relevant equitable
considerations.

Section 8.4. Indemnification Procedures. Promptly after an Indemnified Party receives
notice of a claim or the commencement of an action for which the Indemnified Party intends to seek
indemnification under Section 8.1 or Section 8.2, as applicable, the Indemnified
Party will notify the indemnifying party in writing of the claim or commencement of the action,
suit or proceeding; provided, however, that failure to notify the indemnifying
party will not relieve the indemnifying party from liability under Section 8.1 or
Section 8.2, as applicable, except to the extent it has been materially prejudiced by the
failure to give notice. The indemnifying party will be entitled to participate in the defense of
any claim, action, suit or proceeding as to which indemnification is being sought, and if the
indemnifying party acknowledges in writing the obligation to indemnify the party against whom the
claim or action is brought to the extent required hereunder, the indemnifying party may (but will
not be required to) assume the defense against the claim, action, suit or proceeding with counsel
satisfactory to it. After an indemnifying party notifies an Indemnified Party that the
indemnifying party wishes to assume the defense of a claim, action, suit or proceeding, the
indemnifying party will not be liable for any legal or other expenses incurred by the Indemnified
Party in connection with the defense against the claim, action, suit or proceeding except that if,
in the opinion of counsel to the Indemnified Party (which counsel shall be reasonably acceptable to
the indemnifying parties), one or more of the Indemnified Parties should be separately represented
in connection with a claim, action, suit or proceeding, the indemnifying party will pay the
reasonable fees and expenses of one separate counsel, and one local counsel, for the Investor
Indemnified Parties. Each Indemnified Party, as a condition to receiving indemnification as
provided in Section 8.1 or Section 8.2, as applicable, will cooperate in all
reasonable respects with the indemnifying party in the defense of any action or claim as to which
indemnification is sought. No indemnifying party will be liable for any settlement of any action
effected without its prior written consent. No indemnifying party will, without the prior written
consent of the Indemnified Party, effect any settlement of a pending or threatened action with
respect to which an Indemnified Party is, or is informed that it may be, made a party and for which
it would be entitled to indemnification, unless the settlement includes an unconditional release of
the Indemnified Party from all liability and claims which are the subject matter of the pending or
threatened action.

Section 8.5. Remedies Not Exclusive. The remedies provided for in Section 7 and
this Section 8 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to the Investor, the Issuer Parties or any other Indemnified Party, as
applicable, at law or in equity.

ARTICLE IX

MISCELLANEOUS

Section 9.1. Fees and Expenses.

(a) The Company agrees to pay on demand all reasonable costs and expenses of the Investor in
connection with the preparation, execution and delivery of this Agreement and the Related
Documents, and in connection with the consummation of the transactions contemplated hereby and
thereby (including filing fees for any filing required to be made under the HSR Act), as well as
all reasonable costs and expenses of the Investor in connection with the amendment, waiver or
enforcement of this Agreement or any Related Document, including legal fees of the Investor not to
exceed $375,000 in the aggregate (the “Expense Reimbursement Cap”); provided,
however, that (i) reasonable costs and expenses incurred by the Investor after the
Effective Date, not to exceed $5,000 per annual period or $20,000 in the aggregate, in evaluating
the need for any filings required under the HSR Act shall be excluded from the Expense
Reimbursement Cap) and (ii) filing fees and reasonable costs and expenses incurred by the Investor
for preparing and filing any filing required to be made under the HSR Act shall also be excluded
from the Expense Reimbursement Cap (provided that legal fees of the Investor for the preparation of
any filing shall not exceed $25,000 in the aggregate per filing). The Investor acknowledges
receipt of a $150,000 advance by the Company in respect of its obligations under this Section
9.1(a) against which any such costs and expenses due and payable hereunder shall first be
credited.

(b) The Issuer Parties shall pay all stamp and other similar transfer taxes levied in
connection with the issuance of the Securities and Common Shares issued or issuable upon exercise
of the Warrants pursuant hereto.

Section 9.2. Specific Enforcement, Consent to Jurisdiction, Waiver of Jury Trial.

(a) Each Party acknowledges and agrees that irreparable damage would occur to the other
parties hereunder in the event that any of the provisions of this Agreement or the Related
Documents were not performed by such party in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that each party shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and the Related
Documents by any other party and to enforce specifically the terms and provisions hereof and
thereof this being in addition to any other remedy to which the parties may be entitled by law or
equity.

(b) Each of the Issuer Parties and the Investor (i) hereby irrevocably submits to the
exclusive jurisdiction of the United States District Court and other courts of the United States
sitting in New York City in the State of New York for the purposes of any suit, action or
proceeding arising out of or relating to this Agreement and the Related Documents and (ii) hereby
waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.
Each of the Issuer Parties and the Investor consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 9.2 shall affect or limit
any right to serve process in any other manner permitted by law.

(c) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
RELATED DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF
THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) EACH PARTY HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE RELATED DOCUMENTS, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.2.

Section 9.3. Entire Agreement; Amendment. This Agreement, together with the exhibits
referred to herein, the Disclosure Schedule and the Related Documents, represents the entire
agreement of the parties with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by either party relative to subject matter hereof not
expressly set forth herein. No provision of this Agreement may be amended other than by a written
instrument signed by all parties hereto. The Disclosure Schedule and all exhibits to this
Agreement are hereby incorporated by reference in, and made a part of, this Agreement as if set
forth in full herein.

Section 9.4. Notices. Any notice, demand, request, waiver or other communication required
or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand
delivery or facsimile (with facsimile machine confirmation of delivery received) at the address or
number designated below (if delivered on a Business Day during normal business hours where such
notice is to be received), or the first Business Day following such delivery (if delivered other
than on a Business Day during normal business hours where such notice is to be received) or (b) on
the second Business Day following the date of mailing by express courier service, fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The address for such communications shall be:

	 	 	 
	If to the Issuer Parties:

2929 Arch Street

17th Floor

Philadelphia, PA 19104

Telephone Number: (215) 243-9000

Fax: (215) 405-2945

Attention: Chief Financial Officer

With copies to:

3000 Two Logan Square

Philadelphia, Pennsylvania 19103-2799

Telephone Number: (215) 981-4563

Fax: (215) 981-4750

Attention: Michael H. Friedman, Esq.

If to the Investor:

c/o Almanac Realty Investors, LLC

1251 Avenue of the Americas

New York, NY 10020

Telephone Number: 212-403-3511

Fax: 212-403-3520

Attention: Andrew M. Silberstein

With copies to:

	 	RAIT Financial Trust

Pepper Hamilton LLP

ARS VI Investor I, LLC

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

Telephone Number: (212) 969-3210

Fax: (212) 969-2900

Attention: Arnold S. Jacobs, Esq.

Either party hereto may from time to time change its address for notices by giving at least 10 days
advance written notice of such changed address to the other parties hereto.

Section 9.5. Waivers. No waiver by any party of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any other provisions, condition or requirement hereof nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter. No provision of this Agreement may be waived other than in a
written instrument signed by the party against whom enforcement of such waiver is sought.

Section 9.6. Headings. The article, section and subsection headings in this Agreement are
for convenience only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions hereof.

Section 9.7. Assignment. Neither this Agreement nor any rights of the Investor or the
Issuer Parties hereunder may be assigned by either party to any other Person without the prior
written consent of the other party, and any purported assignment without such consent shall be void
ab initio.

Section 9.8. Governing Law. This Agreement and the Related Documents shall be governed by
and construed in accordance with the internal procedural and substantive laws of the State of New
York, without giving effect to the choice of law provisions of such state that would cause the
application of the laws of any other jurisdiction.

Section 9.9. Survival. The representations, warranties, covenants and agreements of the
Issuer Parties and the Investor contained in this Agreement shall survive the execution and
delivery hereof until the termination of this Agreement.

Section 9.10. Counterparts. This Agreement may be executed in one or more counterparts
(including by facsimile or other electronic transmission), all of which shall be considered one and
the same agreement and shall become effective when one or more counterparts have been signed by
each of the parties and delivered to the other parties (including by facsimile or other electronic
transmission).

Section 9.11. Interpretation. When a reference is made in this Agreement to an Article, a
Section, Exhibit or Schedule, such reference shall be to an Article of, a Section of or an Exhibit
or Schedule to this Agreement unless otherwise indicated. The table of contents and headings
contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. References to “this Agreement” shall include the Disclosure Schedule. All terms
defined in this Agreement shall have the defined meanings when used in any certificate or other
document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms and to the masculine as well as to the feminine and neuter genders of such term. Any
Contract, instrument or Law defined or referred to herein or in any Contract or instrument that is
referred to herein means such Contract, instrument or Law as from time to time amended, modified or
supplemented, including (in the case of Contracts or instruments) by waiver or consent and (in the
case of Laws) by succession of comparable successor Laws and references to all attachments thereto
and instruments incorporated therein. References to a Person are also to its permitted successors
and assigns. This Agreement is the product of negotiation by the parties having the assistance of
counsel and other advisers. It is the intention of the parties that this Agreement not be
construed more strictly with regard to one party than with regard to the others. The parties have
participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or
a question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring
any party by virtue of the authorship of any provision of this Agreement. The representations and
warranties in this Agreement are the product of negotiations among the parties and are for the
benefit of the parties. Any inaccuracies in such representations and warranties are subject to
waiver by the parties without notice or liability to any other Person. In some instances, the
representations and warranties in this Agreement may not be intended as a statement of fact but may
instead represent an allocation among the parties of the risks associated with particular matters
regardless of the knowledge of any of the parties. Consequently, Persons other than the parties
may not rely upon the representations and warranties in this Agreement as characterizations of
actual facts or circumstances as of the date hereof or any other date. With regard to all dates
and time periods set forth or referred to in this Agreement or any Related Document, time is of the
essence.

Section 9.12. Disclosure Schedule. The information set forth on the Disclosure Schedule
shall be deemed to provide disclosure only with respect to the particular section or subsection of
this Agreement to which the information set forth in the Disclosure Schedule relates provided that
disclosure made with respect to any section or subsection, also will be deemed to be disclosure
against other sections or subsections of this Agreement to the extent that it is reasonably
apparent that such disclosure is applicable to such other section or subsections.

Section 9.13. Publicity. The Investor shall have the right to approve before the issuance
of any press release, Commission filing or any other public disclosure made by or on behalf of the
Issuer Parties information relating to the Investor, this Agreement or the Related Documents or the
transactions contemplated hereby or thereby; provided, however, that except as
otherwise provided in this Agreement, the Company shall be entitled, without the prior approval of
the Investor, to make any press release or other public disclosure (including any filings with the
Commission) with respect thereto as is required by applicable Law (including the regulations of any
Trading Market), so long as prior to making any such press release or other public disclosure, if
reasonably practicable, the Company and its counsel shall have provided the Investor and its
counsel with a reasonable opportunity to review and comment upon, and shall have consulted with the
Investor and its counsel on the form and substance of, such press release or other disclosure.

Section 9.14. Severability. The provisions of this Agreement are severable and, in the
event that any court of competent jurisdiction shall determine that any one or more of the
provisions or part of the provisions contained in this Agreement shall, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of this Agreement, and
this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable
provision, or part of such provision, had never been contained herein, so that such provisions
would be valid, legal and enforceable to the maximum extent possible.

Section 9.15. Further Assurances. From and after the date of this Agreement, upon the
request of the Investor or the Issuer Parties, each of the Issuer Parties and the Investor shall
execute and deliver such instrument, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and purposes of this
Agreement.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed
by their respective authorized officer as of the date first above written.

	 	 	 
	COMPANY:

	 	

	 

	RAIT FINANCIAL TRUST

	By:

	 	/s/ James Sebra
	
 
	 	 

	 	 	 
	 	 	Name: James Sebra
	 	 	Title:	 	 	Chief Financial Officer
	 	 	OPERATING PARTNERSHIP:
	 	 	RAIT PARTNERSHIP, L.P.
	 	 	By:	 	 	RAIT General, Inc.,
	 	 	 	 	 	its sole general partner
	 	 	By:	 	 	/s/ James Sebra

1

	 	 	 
	 	 	Name: James Sebra	 
	 	 	Title: Chief Financial Officer	 
	 	 	TABERNA:	 
	 	 	TABERNA REALTY FINANCE TRUST	 
	 	 	By: /s/ James Sebra	 
	 	 	 	 	 	Name: James Sebra

	 	 	 	 	 	Title: Chief Financial Officer

	 	 	 
	NEWSUB:

	 	

	 

	 	

	RAIT ASSET HOLDINGS IV, LLC

	By: RAIT PARTNERSHIP, L.P.

	its Managing Member

	By:

	 	RAIT General, Inc.,

its sole general partner

	 	 	 
	By: /s/ James Sebra

	 

	Name: James Sebra

	 	

	Title: Chief Financial Officer

	INVESTOR:

	 	

	 

	ARS VI INVESTOR I, LLC

	By:

	 	/s/ Andrew M. Silberstein
	
 
	 	 

	 	 	Name: Andrew M. Silberstein

Title: PresidentANNEX A TO THE

SECURITIES PURCHASE AGREEMENT

DEFINITIONS

“2011 Form 10-K” shall mean the Form 10-K filed by the Company for its fiscal year
ended December 31, 2011.

“2012 Incentive Award Plan” shall have the meaning assigned to such term in
Section 4.3(b)(i) hereof.

“Affiliate” of any particular Person means any other Person controlling, controlled
by, or under common control with such particular Person, where “control” means the possession,
directly or indirectly, of the power to direct the management and policies of a Person whether
through the ownership of voting securities, by contract or otherwise.

“Agreement” shall have the meaning assigned to such term in the Preamble.

“Appraiser” shall have the meaning assigned to such term in Section 5.19(c).

“Appraiser Notice” shall have the meaning assigned to such term in Section
5.19(c).

“Appraiser’s Determination” shall have the meaning assigned to such term in
Section 5.19(c).

“Articles Supplementary” shall have the meaning assigned to such term in the Recitals.

“Board” shall mean the Board of Trustees of the Company.

“Bridge Loan” shall mean a Contract that provides for a first priority mortgage loan
with an initial maturity of less than four (4) years, other than any Short Term Facility or
Mezzanine Loan.

“Bridge Loan LTV Cap” shall have the meaning assigned to such term in
Section 5.10(c) hereof.

“Business Day” shall mean a day which is not a Saturday, Sunday or a day on which
national banks in New York, New York are closed.

“Bylaws” shall mean the Company’s Bylaws as amended, supplemented, restated or
otherwise modified from time to time.

“Change of Control” shall have the meaning given to it in the Articles Supplementary.

“Charter” shall mean the Company’s Declaration of Trust as amended, supplemented,
restated or otherwise modified from time to time.

“Closing” shall have the meaning assigned to such term in Section 2.4 hereof.

“Closing Certificate” shall have the meaning assigned to such term in Section
6.1 hereof.

“Closing Date” shall have the meaning assigned to such term in Section 2.4
hereof.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Commission” shall mean the Securities and Exchange Commission or any successor
entity.

“Commission Documents” shall mean (1) all reports, schedules, registrations, forms,
statements, information and other documents filed by the Company with the Commission pursuant to
the requirements of the Securities Act or the Exchange Act, including all material filed pursuant
to Section 13 (a) or 15(d) of the Exchange Act, which have been filed by the Company since December
31, 2010 and prior to the Effective Date, and (2) all information contained in such filings and all
documents and disclosures that have been incorporated by reference therein.

“Common Shares Appreciation Rights” shall mean appreciation rights with respect to
Common Shares.

“Common Shares” shall mean the Company’s common shares of beneficial interest, par
value $0.03 per share.

“Company” shall have the meaning assigned to such term in the Preamble.

“Company Shares” shall mean, collectively, the Common Shares, the Preferred Shares and
all other classes and series of shares of beneficial interest provided for in the Charter.

“Contract” shall mean any loan or credit agreement, bond, debenture, note, mortgage,
indenture, lease, supply agreement, license agreement, management agreement or other contract,
agreement, obligation, commitment or instrument, whether written or oral (each, including all
amendments thereto), to which any Issuer Party or any of their respective Subsidiaries is a party
or that creates rights or obligations that are enforceable by or against any Issuer Party.

“Current Report” shall mean a current report on Form 8-K filed with the Commission
pursuant to the Exchange Act.

“Damages” shall have the meaning assigned to such term in Section 8.1 hereof.

“Disclosure Schedule” shall have the meaning assigned to such term in
Article IV.

“Draw Down” means the transactions contemplated under Sections 2.1 through
2.6 hereof.

“Draw Down Amount” shall mean the amount, in denominations of $25, of a Draw Down
request by the Issuer Parties in a Draw Down Notice delivered pursuant to Section 2.1
hereof.

“Draw Down Exercise Date” shall have the meaning assigned to such term in Section
2.1(a) hereof.

“Draw Down Notice” shall have the meaning assigned to such term in
Section 2.1(a) hereof.

“Draw Down Termination Event” shall mean any of the following events:

(i) the occurrence after the Effective Date of a Material Adverse Effect;

(ii) the occurrence of a Change of Control;

(iii) the Company’s failure to satisfy the requirements for qualification and taxation as a
REIT under the Code, or the Company’s revocation of its election to be taxed as a REIT under the
Code, including pursuant to a determination by the Board that it is no longer in the best interests
of the Company for the Company to continue to so qualify as a REIT;

(iv) the failure by any Issuer Party to perform in all material respects any term, covenant or
agreement contained in Section 5.10(e) of this Agreement;

(v) the failure by any Issuer Party to make any payment under this Agreement or any Related
Document, which failure to pay has continued uncured for a period of 10 days;

(vi) the failure by an Issuer Party to perform in all material respects any term, covenant or
agreement contained in Sections 5.10(a), 5.10(b), 5.10(c), 5.10(d),
5.10(f) or 5.10(g) of this Agreement, which failure to perform (if susceptible of
cure) has continued uncured for a period of 30 days after the earlier of the receipt of a notice of
such failure to perform from the Investor or the Company first becoming aware of such failure;

(vii) the failure by an Issuer Party to perform in all material respects any term, covenant or
agreement contained in Section 5.7 of this Agreement, which failure to perform (if
susceptible of cure) has continued uncured for a period of 5 days (with respect to the Company’s
Quarterly Reports) and 15 days (with respect to the Company’s Annual Report);

(viii) the failure by any Issuer Party to perform in all material respects any other term
covenant or agreement contained in this Agreement or in any Related Document not otherwise
addressed in clauses (iv), (v), (vi) or (vii) above, which failure to perform (if susceptible of
cure) has continued uncured for a period of 60 days after the earlier of the receipt of a notice of
such failure to perform from the Investor or the Company first becoming aware of such failure;

(ix) any representation or warranty of an Issuer Party in this Agreement or any of the Related
Documents shall have been false in any material respect upon the date when made or deemed to have
been made or repeated; or

(x) the occurrence of a default or event of default and the continuation thereof under the
terms of any agreement, contract, note or other instrument to which any Issuer Party or any of
their respective Subsidiaries is a party which has resulted in the acceleration of in excess of
$25.0 million in Recourse Indebtedness and which acceleration has not been rescinded or cured and
has not been stayed or restricted by judicial order or process; or

(xi) at any time prior after the Effective Date, trading in securities generally as reported
in any Trading Market for the Securities or Common Shares issued or issuable upon exercise of the
Warrants has been suspended for a period of more than two (2) consecutive trading days, or a
banking moratorium shall have been declared either by the United States or New York State
authorities for a period of more than two (2) consecutive trading days; or

(xii) the Commission shall have issued a Wells notice to an Issuer Party or any of its
Subsidiaries or a Trustee, director or executive officer of an Issuer Party or any of its
Subsidiaries with respect to the business of the Issuer Party or any of such Subsidiaries; or

(xiii) the Chief Executive Officer of the Company as of the Effective Date shall have been
removed or terminated by the Board as Chief Executive Officer of the Company other than for “Cause”
as such term is defined in the employment agreement of the Chief Executive Officer of the Company.

“EDGAR” shall mean the Commission’s Electronic Data Gathering, Analysis and Retrieval
System.

“Effective Date” shall mean the date of this Agreement.

“Environmental Laws” shall mean all applicable Laws relating to the protection of the
environment including, without limitation, all requirements pertaining to reporting, licensing,
permitting, controlling, investigating or remediating emissions, discharges, releases or threatened
releases of hazardous substances, chemical substances, pollutants, contaminants or toxic
substances, materials or wastes, whether solid, liquid or gaseous in nature, into the air, surface
water, groundwater or land, or relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of hazardous substances, chemical substances,
pollutants, contaminants or toxic substances, material or wastes, whether solid, liquid or gaseous
in nature.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder.

“Exchange Cap” shall have the meaning assigned to such term in the Warrants.

“Expenses Reimbursement Cap” shall have the meaning assigned to such term in
Section 9.1(a) hereof.

“Extraordinary Dividend” shall mean any dividend or other distribution (a) on Common
Shares other than regular quarterly dividends on the Common Shares or (b) on the Preferred Shares
other than in respect of dividends accrued in accordance with the terms expressly applicable to the
Preferred Shares.

“Fair Market Value” shall mean, as of any date of determination, the price at which
such asset would change hands between a hypothetical willing buyer and a hypothetical willing
seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of
the relevant facts, as determined by the Company in a manner consistent with the methodology and
analytics used by the Company’s executive management in the preparation of the Company’s financial
statements in accordance with historical cost GAAP; provided, however, that if a
Repurchase Contract or other financing agreement includes a definition, methodology or formula for
determining fair market value of the securities or other financial assets used as collateral to
secure the obligations thereunder, then such definition, methodology or formula shall be used to
determine the Fair Market Value of such securities or other financial assets hereunder.

“Final Maturity Date” shall mean the date on which the obligor in respect of any loan
or other investment held by NewSub or a Subsidiary of NewSub is required to pay in full in cash all
of its obligations thereunder.

“FINRA” shall mean the Financial Industry Regulatory Authority, Inc. or any successor
entity.

“Future Commission Documents” shall mean (1) all reports, schedules, registrations,
forms, statements, information and other documents filed by the Company with the Commission
pursuant to the requirements of the Securities Act or the Exchange Act, including all material
filed pursuant to Section 13 (a) or 15(d) of the Exchange Act, which are filed by the Company after
the Effective Date, and (2) all information contained in such filings and all documents and
disclosures that have been incorporated by reference therein.

“GAAP” shall mean generally accepted accounting principles in the United States set
forth in the opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a significant segment of
the accounting profession in the United States, that are applicable to the circumstances as of the
date of determination.

“General Closing Opinion” shall have the meaning assigned to such term in Section
6.1 hereof.

“Governmental Licenses” shall have the meaning assigned to such term in
Section 4.17(a) hereof.

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indebtedness” of a Person, at a particular date, shall mean the sum (without
duplication) outstanding at such date of (a) all indebtedness or liability of such Person for
borrowed money and indebtedness in the form of mezzanine debt; (b) obligations evidenced by bonds,
debentures, notes or other similar instruments; (c) obligations for the deferred purchase price of
property or services; (d) obligations under letters of credit; (e) obligations under acceptance
facilities; (f) all guaranties, endorsements (other than for collection or deposit in the ordinary
course of business) and other contingent obligations to purchase, to provide funds for payment, to
supply funds, to invest in any Person or otherwise to assure a creditor against loss; (g)
obligations secured by any Liens, whether or not the obligations have been assumed; and (h) all
preferred shares or other preferred equity issued by such Person and required by the terms thereof
to be redeemed on a scheduled date or dates, or for which mandatory sinking fund payments are due,
by a fixed date; provided in each of clauses (a)-(h) above that if the obligations that are
secured constitute Non-Recourse Indebtedness then the amount of such Indebtedness shall not exceed
the Fair Market Value of the assets encumbered by the Liens that secure such Non-Recourse
Indebtedness.

“Indemnified Party” shall have the meaning assigned to such term in Section
8.2 hereof.

“Intellectual Property” shall have the meaning assigned to such term in
Section 4.17(b) hereof.

“Investment Company Act” shall have the meaning assigned to such term in Section
4.24 hereof.

“Investment Period” shall have the meaning assigned to such term in Section
7.1 hereof.

“Investor” shall have the meaning assigned to such term in the Preamble.

“Investor Board Designee” shall have the meaning assigned to such term in Section
5.16(a)(i) hereof.

“Investor Indemnified Party” shall have the meaning assigned to such term in
Section 8.1 hereof.

“IRT” shall have the meaning assigned to such term in Section 5.16 hereof.

“Issuer Indemnified Party” shall have the meaning assigned to such term in Section
8.2 hereof.

“Issuer Parties” shall have the meaning assigned to such term in the Preamble.

“Knowledge” means, with respect to any matter in question, the actual knowledge of the
chief executive officer, chief financial officer or chief operating officer of the Company.

“Law” shall have the meaning assigned to such term in Section 3.3 hereof.

“Legal Opinions” shall have the meaning assigned to such term in Section 6.1
hereof.

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, easement, right-of-way or other encumbrance on title to real property,
lien (statutory or other), charge, preference, priority or other security interest or preferential
arrangement in the nature of a security interest (including any conditional sale or other title
retention agreement, and any financing lease having substantially the same economic effect as any
of the foregoing).

“LLC Agreement” shall have the meaning assigned to such term in Section 4.2
hereof.

“Maryland Law Opinion” shall have the meaning assigned to such in term in Section
6.1 hereof.

“Material Adverse Effect” shall mean any condition, occurrence, state of facts or
event having any effect on the business, operations, properties, assets or condition (financial or
otherwise) of the Issuer Parties that is material and adverse to the Issuer Parties and their
respective Subsidiaries, taken as a whole, or any condition, occurrence, state of facts or event
that prohibits or otherwise materially interferes with or materially delays the ability of the
Issuer Parties to perform any of their material obligations under this Agreement or the Related
Documents. A Material Adverse Effect shall not include any of the following: (i) changes in
general political, economic or financial market conditions that do not disproportionately affect
the Company and its Subsidiaries; (ii) changes in industry conditions that do not
disproportionately affect the Company and its Subsidiaries; (iii) changes resulting from the
parties’ compliance with the terms of this Agreement and the Related Documents; (iv) changes in
GAAP that do not disproportionately affect the Company and its Subsidiaries; (v) changes in Law
that do not disproportionately affect the Company and its Subsidiaries; or (vi) acts of terrorism
or war.

“Material Agreement” shall mean any Contract that is an agreement or “material
contract” under any of Item 601(b)(2), (4), (9) and (10) of Regulation S-K of the Commission.

“Mezzanine Loan” shall mean a Contract that provides for (i) any unsecured loan, (ii)
any loan secured by equity interests in an entity that directly or indirectly owns commercial real
property, instead of a direct mortgage of the real property, (iii) any loan that is subordinated
(whether in right of payment, lien priority or otherwise) to another loan incurred by the same
borrower or an affiliate of such borrower, including any loan that is subject to a remedy
standstill in favor of another lender of the borrower or its affiliate or (iv) any preferred equity
investment in another Person.

“Net Worth” shall mean, as of any date of determination, the amount by which the
assets of NewSub and its Subsidiaries exceed the liabilities of NewSub and its Subsidiaries on such
date as determined in accordance with historical cost GAAP.

“NewSub” shall have the meaning assigned to such term in the Preamble.

“Non-Recourse Indebtedness” shall mean any Indebtedness: (a) under the terms of which
the payee’s remedies upon the occurrence of an event of default are limited to specific, identified
assets of the payor which secure such Indebtedness and (b) for the repayment of which neither an
Issuer Party nor any Subsidiary of an Issuer Party (other than a special purpose Subsidiary of an
Issuer Party which owns such assets, including a consolidated securitization or CDO) has any
personal liability beyond the loss of such specified assets, except for liability for fraud,
material misrepresentation or misuse or misapplication of insurance proceeds, condemnation awards,
existence of hazardous wastes or other customary exceptions to non-recourse provisions.

“NYSE” means the NYSE MKT or any successor thereto.

“Off Balance Sheet Transaction” shall have the meaning assigned to such term in
Section 4.8 hereof.

“Offer Price” shall have the meaning assigned to such term in Section 5.19
hereof.

“Offered Shares” shall have the meaning assigned to such term in Section 5.19
hereof.

“Offer to Purchase” shall have the meaning assigned to such term in Section
5.19 hereof.

“OP Units” shall have the meaning assigned to such term in Section 4.3 hereof.

“Operating Partnership” shall have the meaning assigned to such term in the Preamble.

“Organizational Documents” shall mean, (a) with respect to a real estate investment
trust, the declaration of trust and the bylaws; (b) with respect to a corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (c) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (d) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable governmental authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

“Other Financing Assets” means a finance investment asset owned by any Issuer Party or
any Subsidiary of any Issuer Party other than Bridge Loans, Short Term Facilities and Mezzanine
Loans.

“Outstanding Options” shall have the meaning assigned to such term in Section 4.3
hereof.

“Outstanding Units” shall have the meaning assigned to such term in Section
4.3 hereof.

“Partnership Agreement” shall have the meaning assigned to such term in
Section 4.2 hereof.

“Permitted ROFO Transfer” means any Transfer of Series D Preferred Shares (i) to any
Person with the prior written consent of the Company, (ii) to an Affiliate of the Investor, (iii)
to the extent not in excess of the ROFO Threshold, or (iv) made pursuant to a sale under Rule 144
of the Securities Act or pursuant to an offering registered under the Securities Act.

“Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, governmental authority or other entity.

“Phantom Share Plan” shall have the meaning assigned to such term in
Section 4.3(b)(ii) hereof.

“Plan” shall mean an “employee pension benefit plan” (as defined in Section 3 of
ERISA) which is or has been established or maintained, or to which contributions are or have been
made, by an Issuer Party or any Subsidiary thereof or by any trade or business, whether or not
incorporated, which, together with an Issuer Party or any Subsidiary thereof, is under common
control, as described in Section 414(b) or (c) of the Code.

“Preferred Shares” shall mean the preferred shares, par value $0.01 per share, of the
Company, including the Series A Preferred Shares, Series B Preferred Shares, Series C Preferred
Shares, Series D Preferred Shares and Series E Preferred Shares.

“Quarterly Compliance Certificate” shall have the meaning assigned to such term in
Section 5.7.

“Real Property LTV Cap” shall have the meaning assigned to such term in Section
5.10(g).

“Recourse Indebtedness” shall mean any Indebtedness other than Non-Recourse
Indebtedness.

“Registration Rights Agreement” shall have the meaning assigned to such term in the
Recitals.

“REIT” means a Person satisfying the requirements for qualification and taxation as a
real estate investment trust for United States federal income tax purposes pursuant to Section 856
through 860 of the Code.

“Related Documents” shall mean the Warrants, the Common Share Appreciation Rights, the
Articles Supplementary for the Series D Preferred Shares, the Registration Rights Agreement and the
LLC Agreement.

“Reliance Letter” shall have the meaning assigned to such term in Section
6.2(g) hereof.

“Repurchase Agreement” shall mean a sale and repurchase Contract under which an Issuer
Party or any Subsidiary thereof incurs Indebtedness through a nominal sale of securities or other
financial assets to a counterparty and simultaneously enters into a Contract to repurchase the sold
securities or other financial assets.

“Repurchase Agreement LTV Cap” shall have the meaning assigned to such term in
Section 5.10(a) hereof.

“ROFO Notice” shall have the meaning assigned to such term in Section 5.19
hereof.

“ROFO Termination Event” means the occurrence of any Draw Down Termination Event under
(1) any of clauses (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix) or (x) of the definition of
Draw Down Termination Event or (2) clause (i) of the definition of Draw Down Termination Event but
only if, in the case of clause (i) of such definition, the Material Adverse Effect resulted,
directly or indirectly, from any action or inaction under the reasonable control of an Issuer
Party.

“ROFO Threshold” means any Transfer of Series D Preferred Shares for which the face
value, when aggregated with the aggregate face value of Series D Preferred Shares Transferred by
the Investor pursuant to any other Transfers of Series D Preferred Shares consummated during the
six-month period immediately prior to such Transfer, is greater than $10,000,000, in either case,
excluding Transfers to Affiliates of the Investor. For purposes of this definition, the “face
value” for each Series D Preferred Share is $25.00.

“Securities” shall mean, collectively, Series D Preferred Shares, Subsidiary Preferred
Units, Warrants and Common Share Appreciation Rights issuable to the Investor upon exercise of a
Draw Down. For the avoidance of doubt, Securities do not include Common Shares issuable or issued
upon exercise of Warrants or Series E Preferred Shares issuable in a Series E Exchange.

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder.

“Selling Holder” shall have the meaning assigned to such term in Section 5.19
hereof.

“Series A Preferred Shares” shall have the meaning assigned to such term in
Section 4.3 hereof.

“Series B Preferred Shares” shall have the meaning assigned to such term in
Section 4.3 hereof.

“Series C Preferred Shares” shall have the meaning assigned to such term in
Section 4.3 hereof.

“Series D Preferred Shares” shall have the meaning assigned to such term in the
Recitals.

“Series E Exchange” shall have the meaning assigned to such term in Section
5.19 hereof.

“Series E Preferred Shares” shall have the meaning assigned to such term in
Section 5.19 hereof.

“Short Term Facility” shall mean a Contract that provides for the incurrence of
secured Indebtedness with an initial maturity of less than 365 days, other than a Mezzanine Loan.

“Short Term Facility LTV Cap” shall have the meaning assigned to such term in
Section 5.10(b) hereof.

“SOXA” shall have the meaning assigned to such term in Section 4.7(c) hereof.

“Subsidiary” means any Person of which a majority of (a) the securities or other
ownership interest having ordinary voting power (absolutely or contingently) for the election of
directors or other persons performing similar functions, or (b) equity interests of such Person, in
each of clause (a) or (b), are owned directly or indirectly by an Issuer Party or any of their
respective other Subsidiaries or affiliates of an Issuer Party.

“Subsidiary Preferred Units” shall mean the “Preferred Units,” as such term is defined
in the LLC Agreement.

“Taberna” shall have the meaning assigned to such term in the Preamble.

“Taberna Shares” shall have the meaning assigned to such term in Section
4.3(g) hereof.

“Tax Opinion” shall have the meaning assigned to such term in Section 6.1
hereof.

“Total Asset Value” shall mean, as of any date of determination, the Fair Market Value
of all assets of NewSub and its Subsidiaries.

“Total Commitment” shall have the meaning assigned to such term in Section 1.1
hereof.

“Trading Market” means the following market or exchange on which the applicable
securities are listed or quoted for trading on the date in question: NYSE or The NASDAQ Stock
Market (or any successors to either of the foregoing), whichever is at the time the principal
trading exchange or market for such securities.

“Transfer” shall mean a sale, assignment, transfer, conveyance or pledge.

“Trustee Indemnification Agreement” shall have the meaning assigned to such term in
the Section 5.16(a)(i) hereof.

“Unfunded Commitment” shall mean, as of any date of determination, the Total
Commitment minus the aggregate Draw Down Amounts paid by the Investor prior to such date.

“USRPHC” shall have the meaning assigned to such term in Section 4.28 hereof.

“Warrant” shall mean a warrant to purchase Common Shares issued pursuant to this
Agreement.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON
TRANSFER SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF OCTOBER 1, 2012, AS AMENDED AND
MODIFIED FROM TIME TO TIME, AND THE ISSUER RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH
SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH TRANSFER. A COPY OF SUCH
CONDITIONS SHALL BE FURNISHED BY THE ISSUER TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT
CHARGE

EXHIBIT D

RAIT FINANCIAL TRUST

Form of Common Share Purchase Warrant

Warrant No. [      ] New York, New York

[ISSUE DATE]

RAIT FINANCIAL TRUST, a Maryland real estate investment trust (the “Company”), for value
received, hereby certifies that ARS VI Investor I, LLC, a Delaware limited liability company (the
“Purchaser”), or its registered assigns, is entitled to purchase from the Company a number of duly
authorized, validly issued, fully paid and nonassessable common shares of beneficial interest, par
value $0.03 per share, of the Company (the “Common Shares”) equal to [      ], which shall be
adjusted or readjusted from time to time as provided herein (as adjusted, the “Warrant Shares”), at
the purchase price per share of $6.00 (the “Initial Warrant Price”), which shall be adjusted or
readjusted from time to time as provided herein (as adjusted, the “Warrant Price”), at any time or
from time to time, subject to the terms, conditions and adjustments set forth below in this Warrant
(as defined below).

This Warrant is one of the Common Share Purchase Warrants (each a “Warrant” and collectively,
the “Warrants,” such term to include any such warrants issued in substitution therefor) that may be
issued from time to time pursuant to the Securities Purchase Agreement (as may be amended from time
to time, the “Purchase Agreement”), dated as of October 1, 2012 (the “Signing Date”), by and among
the Company, RAIT Partnership, L.P., a Delaware limited partnership, Taberna Realty Finance Trust,
a Maryland real estate investment trust, RAIT Asset Holdings IV, LLC, a Delaware limited liability
company, and the Purchaser. Assuming the maximum number of Warrants issuable pursuant to the
Purchase Agreement are issued, the Warrants evidence rights to purchase an aggregate of up to
9,931,000 Common Shares as of the Signing Date, subject to adjustment as provided herein, at a
purchase price per Common Share equal to the Initial Warrant Price. All capitalized terms used
herein which are not otherwise defined in Section 13 hereof shall have the meanings set
forth in the Purchase Agreement.

1. EXERCISE OF WARRANT

1.1 Manner of Exercise; Payment.

1.1.1. Exercise. The Holder hereof may exercise at any time and from time
to time this Warrant, in whole or in part, during normal business hours on any
Trading Day prior to the termination of this Warrant provided for in Section
12 hereof by surrender of this Warrant (or an affidavit of loss in form and
substance reasonably satisfactory to the Company) to the Company at its office
maintained pursuant to Section 11.2(a) hereof, accompanied by an exercise
notice in substantially the form attached to this Warrant as Exhibit A (or a
reasonable facsimile thereof) duly executed by such Holder (each, an “Exercise
Notice”) and accompanied by payment either (i) in cash, (ii) by bank or certified
check payable to the order of the Company, (iii) by wire transfer to an account
identified by the Company, (iv) by the surrender by such Holder to the Company, at
the aforesaid offices, of Series D Preferred Shares held by such Holder, and all
such Series D Preferred Shares so surrendered shall be credited against such payment
in an amount equal to the Liquidation Preference of such Series D Preferred Shares
at the time of such surrender, or (v) by any combination of any of the foregoing
methods, in the amount obtained by multiplying (a) the number of Warrant Shares
(without giving effect to any adjustment thereof) designated in such exercise notice
by (b) the Initial Warrant Price, and such Holder shall thereupon be entitled to
receive the number of duly authorized, validly issued, fully paid and non-assessable
Common Shares (or Other Securities) determined as provided in Sections 2
through 4 hereof.

1.1.2 Net Exchange. If instead of exercising the Warrant pursuant to the
terms of Section 1.1.1 above, the Holder hereof elects to exchange this
Warrant, in whole or in part, for Common Shares, then such Holder shall surrender
this Warrant (or an affidavit of loss in form and substance reasonably satisfactory
to the Company) to the Company at its office maintained pursuant to Section
11.2(a) hereof during normal business hours on any Trading Day accompanied by a
notice of exchange in substantially the form attached to this Warrant as Exhibit
B (or a reasonable facsimile thereof) duly executed by such Holder, and such
Holder shall thereupon be entitled to receive a number of duly authorized, validly
issued, fully paid and non-assessable Common Shares (or Other Securities) determined
as follows:

X = (A x B) — (A x C)

B

For purposes of the foregoing formula:

	 	 	 	X= the total number of Common Shares (or Other Securities) to be issued in
connection with the net exchange.

	 	 	 	A= the total number of Warrant Shares with respect to which this Warrant
is then being exercised.

	 	 	 	B= the average VWAP of a Common Share for the five (5) consecutive Trading
Days ending on the date immediately preceding the date of the Exercise Notice.

	 	 	 	C= the Warrant Price then in effect at the time of such exercise.

The “exchange” of this Warrant pursuant to this Section 1.1.2 is intended to qualify as a
recapitalization within the meaning of Section 368(a)(1)(E) of the Code and the Company agrees to
report any exchange of this Warrant as such. For all purposes of this Warrant (other than this
Section 1.1), any reference herein to the exercise of this Warrant shall be deemed to
include a reference to the exchange of this Warrant into Common Shares (or Other Securities) in
accordance with the terms of this Section 1.1.2.

1.1.3 Principal Market Regulation. Notwithstanding anything to the contrary
contained in this Warrant, the Company shall not be obligated to issue any Common
Shares upon exercise of this Warrant, and the Holder shall not have the right to
receive upon exercise of this Warrant any Common Shares, if the issuance of such
Common Shares would exceed that number of Common Shares which the Company may issue
upon exercise of the Warrants without breaching the Company’s obligations under the
rules or regulations of the Principal Market (the “Exchange Cap”), except that such
limitation shall not apply in the event that the Company obtains the approval of its
shareholders as required by the applicable rules of the Principal Market for
issuances of Common Shares in excess of such amount (which shareholder approval the
Company may, but shall not be required hereunder to, seek). Until such approval is
obtained, no holder of any Warrants shall be issued in the aggregate, upon exercise
of the Warrants, Common Shares in an amount greater than the product of the Exchange
Cap multiplied by a fraction, the numerator of which is the total number of Warrant
Shares underlying the Warrants issued to such holder and the denominator of which is
the aggregate number of Common Shares underlying the Warrants issued or issuable
pursuant to the Purchase Agreement on the date of such exercise (with respect to
each Holder, the “Exchange Cap Allocation”). In the event that any holder shall sell
or otherwise transfer any of such holder’s Warrants, the transferee shall be
allocated a pro rata portion of such holder’s Exchange Cap Allocation, and the
restrictions of the immediately preceding sentence shall apply to such transferee
with respect to the portion of the Exchange Cap Allocation allocated to such
transferee. If any holder of Warrants shall exercise all of such holder’s Warrants
into a number of Common Shares which, in the aggregate, is less than such holder’s
Exchange Cap Allocation, then the difference between such holder’s Exchange Cap
Allocation and the number of Common Shares actually issued to such holder shall be
allocated to the respective Exchange Cap Allocations of the remaining holders of
Warrants on a pro rata basis in proportion to the Common Shares underlying the
Warrants then held by each such holder. If the Company is prohibited from issuing
any Common Shares upon exercise of this Warrant as a result of the operation of this
Section 1.1.3, the Company shall, upon such exercise, issue the maximum
number of Common Shares that it is able to issue to the Holder below such Holder’s
Exchange Cap Allocation and shall pay to the Holder an amount per Common Share that
it is prohibited from issuing equal to the difference between the average VWAP on a
Common Share for the five (5) consecutive Trading Days ending on the Trading Day
immediately preceding the date of such exercise and the then existing Warrant Price.
If the Holder elects to exercise this Warrant by surrendering Series D Preferred
Shares held by such Holder pursuant to Section 1.1.1, then the Company
shall, upon such exercise, issue the maximum number of Common Shares that it is able
to issue to the Holder below such Holder’s Exchange Cap Allocation and shall pay to
the Holder an amount per Common Share that it is prohibited from issuing equal to
the average VWAP on a Common Share for the five (5) consecutive Trading Days ending
on the Trading Day immediately preceding the date of such exercise. Such payments
may be made at the Company’s option either (i) in cash, by wire transfer of
immediately available funds, (ii) by executing and delivering to the Holder of this
Warrant a promissory note in the form attached hereto as Exhibit C having a
principal amount equal to such amount payable to the Holder or (iii) any combination
of cash or promissory note. Such payment shall be in addition to, and not in
limitation of, any other remedies available to the Holder. For the avoidance of
doubt, based solely on the representations by the Company as of the Signing Date,
the Exchange Cap is equal to 9,931,000 Common Shares, which equals approximately
19.9% of the number of Common Shares outstanding on the Trading Day immediately
preceding the Signing Date (as appropriately adjusted for share splits, share
dividends, combinations, recapitalizations and the like).

1.2 When Exercise Effective. Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the Trading Day on which this Warrant
(or an affidavit of loss in form and substance reasonably satisfactory to the Company), the
Exercise Notice and the Warrant Price shall be deemed to have been surrendered and paid to
the Company as provided in Section 1.1 hereof, and at such time the Person or
Persons in whose name or names any certificate or certificates for Common Shares (or Other
Securities) shall be issuable upon such exercise as provided in Section 1.3 hereof
shall be deemed to have become the holder or holders of record thereof.

1.3 Delivery of Share Certificates, etc. As soon as practicable after each exercise of this
Warrant, in whole or in part, and payment in full of the Warrant Price payable under this Warrant,
and in any event within two (2) Trading Days thereafter, the Company at its sole expense (including
the payment by it of any applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder hereof or, subject to Section 11 hereof, as such Holder (upon
payment by such Holder of any applicable transfer taxes) may direct:

(a) a certificate or certificates for the number of duly authorized, validly
issued, fully paid and nonassessable Common Shares (or Other Securities) to which
such Holder shall be entitled upon such exercise plus, in lieu of any
fractional share to which such Holder would otherwise be entitled, cash in an amount
equal to the same fraction of the VWAP per Common Share on the Trading Day
immediately preceding the date of such exercise; and

(b) in case such exercise is in part only, a new Warrant or Warrants of
like tenor, dated the date hereof and calling in the aggregate on the face
or faces thereof for the number of Warrant Shares equal (without giving
effect to any adjustment thereof) to the number of such shares called for on
the face of this Warrant minus the number of such shares designated by the
Holder upon such exercise as provided in Section 1.1 hereof.

1.4 Company to Reaffirm Obligations. The Company will, at the time of each exercise of this
Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing
obligation to afford to such Holder all rights (including, without limitation, any rights to
registration of the resale of the Common Shares issued upon such exercise pursuant to the
Registration Rights Agreement) to which such Holder shall continue to be entitled after such
exercise in accordance with the terms of this Warrant and the Registration Rights Agreement;
provided, however, that if the Holder of this Warrant shall fail to make any
such request, such failure shall not affect the continuing obligation of the Company to
afford such rights to such Holder.

2. ADJUSTMENT OF COMMON SHARES ISSUABLE UPON EXERCISE.

2.1 General; Number of Shares; Warrant Price

2.2.1 The number of Common Shares which the Holder of this Warrant shall be entitled
to receive upon each exercise hereof shall be determined by multiplying the number
of Warrant Shares which would otherwise (but for the provisions of this Section
2) be issuable upon such exercise, as designated by the Holder hereof pursuant
to Section 1.1 hereof, by the fraction of which (a) the numerator is the
Initial Warrant Price and (b) the denominator is the Warrant Price in effect on the
date of such exercise.

2.1.2 Notwithstanding anything to the contrary contained in this Section 2,
the Warrant Price shall not be adjusted for:

(a) issuances or sales of up to an aggregate of 3,070,187 Additional Common Shares (or
Options, Other Securities, Convertible Securities for Additional Common Shares or any other
securities under the Company’s 2012 Incentive Award Plan (as amended and restated as of May 22,
2012) and its predecessors or successors) to employees, trustees, directors or non-affiliated
consultants of the Company or its Subsidiaries;

(b) issuances or sales of Common Shares or Other Securities pursuant to plans of the Company
for reinvestment of dividends or interest payable on securities of the Trust but not investments of
additional optional amounts in Common Shares or Other Securities under those plans;

(c) issuances or sales of Common Shares, Other Securities, Options or Convertible Securities
under contracts, agreements, Options, Other Securities, Convertible Securities or other
arrangements in existence on the Signing Date and set forth on Schedule A hereto;

(d) issuances or sales of Common Shares, Other Securities, Options or Convertible Securities
for a consideration per share that is not less than the greater of the Current Market Price and the
Warrant Price; or

(e) purchases, redemptions and other retirement of Common Shares, Options, Other Securities or
Convertible Securities for a consideration per share below the Current Market Price.

2.2 Adjustment of Warrant Price.

2.1.1. Issuance of Additional Common Shares. Except as provided in
Section 2.1.2, in the event the Company, at any time or from time to time,
on or after the Signing Date shall issue or sell Additional Common Shares (including
Additional Common Shares deemed to be issued pursuant to Section 2.3 or
2.4 hereof) without consideration or for consideration per share less than
the greater of the Current Market Price or the Warrant Price in effect immediately
prior to such issue or sale, then, and in each such case, subject to Section
2.7 hereof, such Warrant Price shall be reduced, concurrently with such issue or
sale, to a price (calculated to the nearest .001 of a cent) determined by
multiplying such Warrant Price by a fraction:

(a) the numerator of which shall be the sum of (i) the number of Common
Shares outstanding immediately prior to such issue or sale, plus
(ii) the number of Common Shares issuable upon exercise of Options or
conversion of Convertible Securities outstanding immediately prior to such
issue or sale if the issuance, sale or grant of such Options or Convertible
Securities resulted in an adjustment to the Warrant Price prior to such
issue or sale plus (iii) the number of Common Shares which the
aggregate consideration received by the Company for the total number of such
Additional Common Shares so issued or sold would purchase at the greater of
such Current Market Price and such Warrant Price; and

(b) the denominator of which shall be the sum of (i) the number of Common
Shares outstanding immediately after such issue or sale (including any such
Common Shares deemed to be outstanding pursuant to Section 2.8) plus
(ii) the number of Common Shares included in the numerator pursuant to
clause (ii) of Section 2.2.1(a).

2.2.2. Extraordinary Dividends. In the event that during any
twelve-month period commencing immediately following the Signing Date (an “Annual
Dividend Period”), the Company makes dividends or other distributions (including
without limitation any distribution of securities or property, but excluding
dividends or distributions referred to in Section 2.4) on the Common Shares in an
amount that, when added to all other dividends or such distributions made on the
Common Shares during such Annual Dividend Period (collectively, the “Aggregate
Annual Dividend Amount”) exceed the Ordinary Dividend Amount (as defined below),
then, and in each such case, the Warrant Price shall be reduced immediately
thereafter (but in no event reduced by more than the amount of such excess, which
amount is hereafter referred to as the “Excess Amount”)) to the price determined by
multiplying the Warrant Price in effect immediately prior to the reduction by the
quotient of (x) the average VWAP of a Common Share for the five (5)
consecutive Trading Days ending on the date immediately preceding the first date on
which the Common Shares trade regular way on the Principal Market without the right
to receive such dividend or distribution (the “Market Price”), minus the
Excess Amount divided by (y) such Market Price. “Ordinary Dividend Amount”
means the aggregate amount of $0.40 per Common Share (the “Initial Dividend Amount”)
for the Annual Dividend Periods ending on or prior to the second anniversary of the
Signing Date, which Initial Dividend Amount shall increase by an additional 5% on
the second anniversary of the Signing Date (as increased, the “Adjusted Dividend
Amount”) and which Adjusted Dividend Amount shall further increase by 5% of the
amount of the immediately preceding Adjusted Dividend Amount each successive
anniversary of the Signing Date following the second anniversary of the Signing
Date. If any dividend or distribution is declared but not so paid or made, the
Warrant Price shall be readjusted to the Warrant Price that would have been in
effect if such dividend or distribution had not been declared. The amount of any
non-cash dividend or distribution shall be the fair market value thereof as
determined in good faith by the Board of Trustees or a committee thereof. The
Ordinary Dividend Amount shall be subject to adjustment in a manner inversely
proportional to the adjustments to the number of Common Shares which the Holder of
this Warrant shall be entitled to receive upon each exercise hereof made pursuant to
Section 2.1.1.

2.2.3 Above Market Purchases of Common Shares. Except as provided
in Section 2.1.2, if, at any time after the Signing Date, the Company shall
repurchase (a “Repurchase”), by self-tender offer or otherwise, any outstanding
Common Shares for a consideration per share that exceeds the Current Market Price in
effect immediately prior to the earlier of (i) the date of such Repurchase, (ii) the
commencement of an offer to repurchase or (iii) the public announcement of either
(such date being referred to as the “Determination Date”), then, and in each such
case, subject to Section 2.7 hereof, such Warrant Price shall be reduced,
concurrently with such issue or sale, to a price determined by multiplying such
Warrant Price by a fraction:

(a) the numerator of which shall be (x) the product of (1) the Current
Market Price as of the Determination Date times (2) the sum of (i)
the number of Common Shares outstanding immediately following the
consummation of the Repurchase plus (ii) the number of Common Shares
issuable upon exercise of Options or conversion of Convertible Securities
outstanding immediately prior to such issue or sale if the issuance, sale or
grant of such Options or Convertible Securities resulted in an adjustment to
the Warrant Price prior to such issue or sale less (y) the
Repurchase Premium (as defined below), and

(b) the denominator of which shall be (x) the product of (1) the Current
Market Price as of the Determination Date times (2) the sum of (i)
the number of Common Shares outstanding immediately following the
consummation of the Repurchase (including any such Common Shares deemed to
be outstanding pursuant to Section 2.8) plus (ii) the number
of Common Shares included in the numerator pursuant to clause (ii) of
Section 2.2.3(a)(x)(2).

The amount by which the aggregate repurchase prices for all securities repurchased in any
Repurchase exceeds the Current Market Price for such securities is referred to as the “Repurchase
Premium”.

2.3 Treatment of Options and Convertible Securities.

2.3.1 Issuance of Options or Convertible Securities. In the event
that the Company, at any time or from time to time, on or after the Signing Date,
issues, sells, grants or assumes, or fixes a record date for the determination of
holders of any class of securities entitled to receive, any Options or Convertible
Securities for consideration per share (determined pursuant to Section 2.5
hereof) less than the greater of the Current Market Price or the Warrant Price in
effect on the date of and immediately prior to such issue, sale, grant or assumption
or immediately prior to the close of business on such record date (or, if the Common
Shares trade on an ex-dividend basis, on the date immediately prior to the
commencement of ex-dividend trading), then, and in each such case, the maximum
number of Additional Common Shares (as set forth in the instruments related thereto,
without regard to any provision contained therein for a subsequent adjustment of
such number the purpose of which is to protect against dilution) issuable upon the
exercise of such Options or, in the case of Convertible Securities and Options
therefor, the conversion or exchange of such Convertible Securities, or, in the case
of any instrument the value of which is linked to Common Shares, the maximum number
of Common Shares to which such value is linked, shall be deemed to be Additional
Common Shares issued as of the time of such issue, sale, grant or assumption or, in
case such a record date shall have been fixed, as of the close of business on such
record date (or, if the Common Shares trade on an ex-dividend basis, on the date
immediately prior to the commencement of ex-dividend trading). Except as otherwise
provided in Section 2.3.2, (a) with respect to Options, no adjustment of the
Warrant Price shall be made (i) upon the actual issuance of (A) such Common Shares
or (B) of such Convertible Securities upon exercise of such Options, (ii) upon the
actual issuance of such Common Shares upon conversion or exchange of such
Convertible Securities upon exercise of such Options or (iii) upon the actual
issuance of such Common Shares upon conversion or exchange of such Convertibles
Securities, and (b) with respect to Convertible Securities, (i) no adjustment of the
Warrant Price shall be made upon the actual issuance of such Common Shares upon
conversion or exchange of such Convertible Securities, and (ii) if any such issuance
or sale of such Convertible Securities is made upon exercise of any Options to
purchase any such Convertible Securities, no further adjustment of the Warrant Price
shall be made by reason of such issuance or sale.

2.3.2 Change in Option Price or Conversion Rate; Termination of Options
or Convertible Securities. If a change occurs in (a) the maximum number of
Common Shares issuable in connection with any Option or Convertible Security, (b)
the purchase price provided for in any Option, (c) the additional consideration, if
any, payable upon the conversion or exchange of any Convertible Securities, or (d)
the rate at which Convertible Securities are convertible into or exchangeable for
Common Shares, then the Warrant Price in effect at the time of such event shall be
readjusted (or adjusted, in the event that no adjustment was made in connection with
the original issue sale, grant or assumption, or fixing of a record date for the
determination of holders of any class of securities entitled to receive such Options
or Convertible Securities) to the Warrant Price that would have been in effect at
such time had such Options or Convertible Securities that remain outstanding
provided for such changed maximum number of shares, purchase price, additional
consideration or conversion rate, as the case may be, at the time initially granted,
issued, sold or assumed.

2.3.3 Expiration or Cancellation of Options or Convertible
Securities. In any case in which Additional Common Shares shall be deemed to be
issued under Section 2.3.1 in connection with the issuance, sale, grant or
assumption of Options or Convertible Securities then upon the expiration,
cancellation or retirement of any such Options or Convertible Securities which have
not been exercised or converted, the Warrant Price and any subsequent adjustments
based thereon shall be adjusted and recomputed as if:

(i) in the case of Options for Common Shares or Convertible
Securities, the only Additional Common Shares issued or sold were the
Additional Common Shares, if any, actually issued or sold upon the
exercise of such Options or the conversion or exchange of such
Convertible Securities and the consideration received therefor was
the consideration actually received by the Company for the issue,
sale, grant or assumption of all such Options, whether or not
exercised, plus the consideration actually received by the Company
upon such exercise, or for the issue or sale of all such Convertible
Securities which were actually converted or exchanged, plus the
additional consideration, if any, actually received by the Company
upon such conversion or exchange, and

(ii) in the case of Options for Convertible Securities, only the
Convertible Securities, if any, actually issued or sold upon the
exercise of such Options were issued at the time of the issue or
sale, grant or assumption of such Options, and the consideration
received by the Company for the Additional Common Shares deemed to
have then been issued was the consideration actually received by the
Company for the issue, sale, grant or assumption of all such Options,
whether or not exercised, plus the consideration deemed to have been
received by the Company (pursuant to Section 2.5) upon the
issue or sale of such Convertible Securities with respect to which
such Options were actually exercised;

2.4 Treatment of Share Dividends, Share Splits, etc. In the event the Company, at any time
or from time to time, on or after the Signing Date shall declare or pay any dividend on the
Common Shares payable in Common Shares, or shall effect a subdivision of the outstanding
Common Shares into a greater number of Common Shares (by reclassification or otherwise than
by payment of a dividend in Common Shares), then, and in each such case, Additional Common
Shares shall be deemed to have been issued (a) in the case of any such dividend, immediately
after the close of business on the record date for the determination of holders of any class
of securities entitled to receive such dividend, or (b) in the case of any such subdivision,
at the close of business on the day immediately prior to the day upon which such corporate
action becomes effective.

2.5 Computation of Consideration. For the purposes of this Section 2:

(a) the consideration for the issue or sale of any Additional Common Shares shall,
irrespective of the accounting treatment of such consideration:

(i) insofar as it consists of cash, be computed at the amount of cash
received by the Company net of any expenses paid or incurred by the
Company or any commissions or compensations paid or concessions or
discounts allowed to underwriters, dealers or others performing
similar services in connection with such issue or sale;

(ii) insofar as it consists of property (including securities) other
than cash received by the Company, be computed at the fair market
value thereof (as determined by the Board of Trustees or a committee
of the Board of Trustees) at the time of such issue or sale;

(iii) insofar as it consists neither of cash nor of other property,
be computed as having no value; and

(iv) in the event Additional Common Shares are issued or sold
together with other shares or securities or other assets of the
Company for a consideration which covers both, be the portion of such
consideration so received, computed as provided in clauses
(i), (ii) and (iii) above, allocable to such
Additional Common Shares, all as determined in good faith by the
Board of Trustees or a committee of the Board of Trustees;

(b) Additional Common Shares deemed to have been issued pursuant to
Section 2.3 hereof shall be deemed to have been issued for a
consideration per share determined by dividing:

(i) the total amount of cash and other property, if any, received and
receivable by the Company as consideration for the issue, sale, grant
or assumption of the Options or Convertible Securities in question,
plus the minimum aggregate amount of additional consideration
(as set forth in the instruments relating thereto, without regard to
any provision contained therein for a subsequent adjustment of such
consideration the purpose of which is to protect against dilution)
payable to the Company upon the exercise in full of such Options or
the conversion or exchange of such Convertible Securities or, in the
case of Options for Convertible Securities, the exercise of such
Options for Convertible Securities and the conversion or exchange of
such Convertible Securities, in each case computing such
consideration as provided in the foregoing clause (a),

by

(ii) the maximum number of Common Shares (as set forth in the instruments relating
thereto, without regard to any provision contained therein for a subsequent
adjustment of such number the purpose of which is to protect against dilution)
issuable upon the exercise of such Options or upon the conversion or exchange of
such Convertible Securities; and

(c) Additional Common Shares deemed to have been issued pursuant to
Section 2.4 hereof shall be deemed to have been issued for no
consideration.

2.6 Adjustment for Combinations, etc. In case the outstanding Common Shares shall be
combined or consolidated, by reclassification or otherwise, into a lesser number of Common
Shares, the Warrant Price in effect immediately prior to such combination or consolidation
shall, concurrently with the effectiveness of such combination or consolidation, be
proportionately increased.

2.7 Minimum Adjustment of Warrant Price. If the amount of any adjustment of the Warrant
Price required pursuant to this Section 2 would be less than $0.00001, then such
amount shall be carried forward and adjustment shall be made with respect thereto at the
time of and together with any subsequent adjustment which, together with such amount and any
other amount or amounts so carried forward, shall aggregate at least $0.00001.

2.8 Shares Deemed Outstanding. For purposes of calculating adjustments (if any) to the
Warrant Price upon the issuance, sale or grant of Options or Convertible Securities, there
shall be deemed to be outstanding, immediately after giving effect to any such issuance,
sale or grant, the Common Shares issuable upon the exercise of such Options or conversion of
such Convertible Securities. In addition, for purposes of calculating adjustments to the
Warrant Price, effect shall be given to all antidilution provisions contained in any then
outstanding Options and Convertible Securities which cause an adjustment in the number of
Common Shares so issuable thereunder by virtue of the issuance of Common Shares, Options or
Convertible Securities and any such additional Common Shares so issuable as a result of such
antidilution provisions shall be deemed outstanding immediately after giving effect to any
such issuance, sale or grant.

2.9 Contest and Appraisal Rights. (ii) If the holders of Warrants entitling such holders
to purchase a majority of the Warrant Shares subject to purchase upon exercise of Warrants
at the time outstanding (the “Required Interest”) shall, for any reason whatsoever, disagree
with the Company’s determination of the Current Market Price of the Common Shares (i.e.,
under circumstances where the VWAP is determined by the Board of Trustees as provided in the
definition of the term “VWAP”) or of the fair market value of any property (or securities)
given to the Company as consideration for the issue or sale of Additional Common Shares,
then such holders shall by notice to the Company (an “Appraisal Notice”) given within thirty
(30) days after the Company’s determination elect to dispute such determination, and such
dispute shall be resolved as set forth in clause (b) of this Section 2.9.

(b) The Company shall, within thirty (30) days after an Appraisal Notice shall have
been given, engage an Appraiser to make an independent determination of the Current
Market Price for the Common Shares or of the fair market value of any property (or
securities) given to the Company as consideration for the issue or sale of
additional Common Shares, as the case may be (the “Appraiser’s Determination”). In
arriving at its determination, the Appraiser shall base any valuation upon (i) in
the case of the Current Market Price of the Common Shares, the fair market value of
the Company assuming that the Company were sold as a going concern, without regard
to the existence of any control block, the anticipated impact upon current market
prices of any such sale, the lack or depth of a market for the Common Shares, the
Warrants or other securities of the Company, or any other factors concerning the
liquidity or marketability of the Common Shares, the Warrants or other securities of
the Company, and (ii) in the case of the fair market value of any property (or
securities) given to the Company as consideration for the issue or sale of
Additional Common Shares, the fair market value of such property (or securities)
assuming that such property (or securities) were sold to an unaffiliated third party
in an arm’s-length transaction. The Appraiser’s Determination shall be final and
binding on the Company and the holders of the Warrants. The costs of conducting an
appraisal shall be borne by the party whose assertion of the Current Market Price or
fair market value was the farthest from the final determination of the Current
Market Price or fair market value determined by the Appraiser.

3. CONSOLIDATION, MERGER, ETC.

3.1 Adjustments for Consolidation, Merger, Sale of Assets, Reorganizations, etc. In the
event the Company, on or after the Signing Date, (a) shall consolidate with or merge into
any other Person and shall not be the continuing or surviving corporation of such
consolidation or merger, or (b) shall permit any other Person to consolidate with or merge
into the Company and the Company shall be the continuing or surviving Person but, in
connection with such consolidation or merger, the Common Shares or Other Securities shall be
changed into or exchanged for stock or other securities of any other Person or cash or any
other property, or (c) shall transfer all or substantially all of its properties or assets
to any other Person, or (d) shall effect a capital reorganization or reclassification of the
Common Shares or Other Securities (other than a capital reorganization or reclassification
to the extent that such capital reorganization or reclassification results in the issuance
of Additional Common Shares for which adjustment in the Warrant Price is provided in
Section 2.2.1 or 2.2.2 hereof), then, and in the case of each such
transaction, proper provision shall be made so that, upon the basis and the terms and in the
manner provided in this Warrant, the Holder of this Warrant, upon the exercise hereof at any
time after the consummation of such transaction, shall be entitled to receive (at the
aggregate Warrant Price in effect at the time of such consummation for all Common Shares or
Other Securities issuable upon such exercise immediately prior to such consummation), in
lieu of the Common Shares or Other Securities issuable upon such exercise prior to such
consummation, the greatest amount of securities, cash or other property to which such Holder
would actually have been entitled as a shareholder upon such consummation if such Holder had
exercised the rights represented by this Warrant immediately prior thereto, subject to
adjustments (subsequent to such consummation) as nearly equivalent as possible to the
adjustments provided for in Sections 2, 3 and 4 hereof.

3.2 Assumption of Obligations. The Company will not effect any of the transactions
described in clauses (a) through (d) of Section 3.1 hereof unless, at or prior to
the consummation thereof, each person (other than the Company) which may be required to
deliver any stock, securities, cash or property upon the exercise of this Warrant as
provided herein shall assume, by written instrument delivered to, and reasonably
satisfactory to, the Holder of this Warrant, (a) the obligations of the Company under this
Warrant (and if the Company shall survive the consummation of such transaction, such
assumption shall be in addition to, and shall not release the Company from, any continuing
obligations of the Company under this Warrant), (b) the obligations of the Company under the
Registration Rights Agreement and (c) the obligation to deliver to such Holder such shares
of beneficial interest, securities, cash or property as such Holder may be entitled to
receive in accordance with the foregoing provisions of this Section 3, and such
Person shall have similarly delivered to such Holder an opinion of counsel for such Person,
which counsel and opinion shall be reasonably satisfactory to such Holder, stating that this
Warrant shall thereafter continue in full force and effect and the terms hereof (including,
without limitation, all of the provisions of this Section 3) shall be applicable to
the beneficial interest, securities, cash or property which such Person may be required to
deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto.
Notwithstanding the forgoing, this Section 3.2 shall not restrict the Company from
consummating a Change of Control, as contemplated by Section 12.

4. RESTRICTIONS ON TRANSFERS. This Warrant and Common Shares (or Other Securities) issuable
hereunder are subject to the provisions of Article VII of the Declaration of Trust of the Company
and restrictions on transfers set forth in the Purchase Agreement.

5. NO DILUTION OR IMPAIRMENT. The Company shall not, by amendment of its Declaration of Trust or
through any consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale
of securities or any other voluntary action, impermissibly avoid or seek to avoid the observance or
performance of any of the terms of this Warrant. Without limiting the generality of the foregoing,
the Company (a) will not permit the par value of any shares of beneficial interest receivable upon
the exercise of this Warrant to exceed the amount payable therefor upon such exercise, (b) subject
to Section 1.1.3, will take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable shares of beneficial
interest on the exercise of the Warrants from time to time outstanding, and (c) will not take any
action which results in any adjustment of the Warrant Price if the total number of Common Shares
(or Other Securities) issuable after the action upon the exercise of all of the Warrants would
exceed the total number of Common Shares (or Other Securities) then authorized by the Company’s
Declaration of Trust and available for the purpose of issuance upon such exercise.

5. ACCOUNTANTS’ REPORT AS TO ADJUSTMENTS. In each case of any adjustment or readjustment in the
Common Shares (or Other Securities) issuable upon the exercise of this Warrant, the Company, at its
sole expense, will promptly compute such adjustment or readjustment in accordance with the terms of
this Warrant and deliver to the Holder of this Warrant a certificate of the chief executive officer
or chief financial officer of the Company setting forth such computation and showing in reasonable
detail the method of calculation thereof and the facts upon which such adjustment or readjustment
is based, including a statement of (a) the consideration received or to be received by the Company
for any Additional Common Shares issued or sold or deemed to have been issued, (b) the number of
Common Shares outstanding or deemed to be outstanding, and (c) the Warrant Price in effect
immediately prior to such issue or sale and as adjusted and readjusted (if required by Section
2 hereof) on account thereof. The Company will also keep copies of all such certificates at
its office maintained pursuant to Section 11.2(a) hereof and will cause the same to be
available for inspection at such office during normal business hours by any holder of a Warrant.

7. NOTICES OF CORPORATE ACTION. In the event of:

(a) any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution, or any right to
subscribe for, purchase or otherwise acquire any shares of beneficial
interest of any class or any other securities or property, or to receive any
other right, or

(b) any capital reorganization of the Company, any reclassification or
recapitalization of the shares of beneficial interest of the Company, any
consolidation or merger involving the Company and any other Person or any
transfer of all or substantially all the assets of the Company to any other
Person, or

(c) any voluntary or involuntary dissolution, liquidation or winding-up of
the Company, or

(d) any issuance of any Common Shares, Convertible Security or Option by the
Company (other than (i) issuances or sales of Common Shares pursuant to
plans of the Company for reinvestment of dividends or interest payable on
securities of the Trust and investments in additional optional amounts in
Common Shares under those plans, (ii) issuances or sales to employees,
trustees, directors or non-affiliated consultants of the Company or its
subsidiaries and (iii) issuances from time to time under the Company’s ATM
program), or

(e) any Change of Control (as defined in the Purchase Agreement),

which has not been publicly reported by press release or on a current report on Form 8-K filed by
the Company with the SEC within four (4) business days, the Company will mail no later than the
fifth (5th) business day to each holder of a Warrant a notice specifying (i) the date or expected
date on which any such record is to be taken for the purpose of such dividend, distribution or
right, and the amount and character of such dividend, distribution or right, (ii) the date or
expected date on which any such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, dissolution, liquidation, winding-up or Change of Control is to take place, (iii)
the time, if any such time is to be fixed, as of which the holders of record of Common Shares (or
Other Securities) shall be entitled to exchange their Common Shares (or Other Securities) for the
securities or other property deliverable upon such reorganization, reclassification,
recapitalization, consolidation, merger, transfer, dissolution, liquidation or winding-up and a
description in reasonable detail of the transaction and (iv) the date of such issuance, together
with a description of the security so issued and the consideration received by the Company
therefor. Notwithstanding the foregoing, the Company shall mail a notice of any Change of Control
to the holders of Warrants upon the earlier of (i) the public announcement of the entry of any
agreement for a Change of Control and (ii) if the holder is bound by a confidentiality agreement
and restrictions on trading of securities of the Company based on non-public information, within
two (2) business days of the final approval of such Change of Control transaction by the Board of
Trustees.

8. REGISTRATION OF COMMON SHARES. If any Common Shares required to be reserved for purposes of
exercise of this Warrant require registration with or approval of any governmental authority under
any federal or state law (other than pursuant to the Securities Act or state securities laws)
before such shares may be issued upon exercise, the Company will, at its sole expense and as
expeditiously as possible, use its commercially reasonable efforts to cause such shares to be duly
registered or approved, as the case may be. The Common Shares issuable upon exercise of this
Warrant shall constitute Registrable Securities (as such term is defined in the Registration Rights
Agreement). Each holder of any Common Shares issued upon exercise of this Warrant shall be
entitled to all of the benefits afforded to a holder of any such Registrable Securities under and
subject to the Registration Rights Agreement and such holder, by its acceptance of this Warrant,
agrees to be bound by and to comply with the terms and conditions of the Registration Rights
Agreement applicable to such holder as a holder of such Registrable Securities.

9. PUT RIGHTS. From and after the earlier to occur of (i) the fifth anniversary of the Signing
Date or (ii) the occurrence of a Mandatory Redemption Triggering Event (as defined in the Series D
Preferred Shares Articles Supplementary), the Holder of this Warrant may demand that the Company
purchase all or any portion of this Warrant (without regard to any limitations on exercise hereof,
including, without limitation, pursuant to Section 1.1.3 hereof) at the Put Redemption
Price by delivery of a written notice to the Company (each, a “Put Right Notice”) and surrender of
this Warrant (or an affidavit of loss in form and substance reasonably satisfactory to the Company)
to the Company at its office maintained pursuant to Section 11.2(a) hereof (the “Put Demand
Date”), which Put Right Notice shall specify that portion of this Warrant that the Company shall
redeem pursuant to this Section 9 (which portion shall be determined by a number of Common
Shares otherwise issuable pursuant to this Warrant on the Put Demand Date as specified by the
Holder in such Put Right Notice). The Company shall as soon as reasonably practicable, but in any
event no later than ten (10) days after the Put Demand Date (the “Put Payment Date”), pay the Put
Redemption Price payable to such Holder at the Company’s option, either (i) in cash, by wire
transfer of immediately available funds, (ii) where such put is triggered by an event set forth
under clauses (iv)-(vi) of the definition of Mandatory Redemption Triggering Event, by executing
and delivering to the Holder of this Warrant a promissory note in the form attached hereto as
Exhibit C, having a principal amount equal to the Put Redemption Price payable to the
Holder, or (iii) any combination of clause (i) and, if applicable, clause (ii), and if the
election made pursuant to this Section 9 is only with respect to a portion of this Warrant,
the Company shall issue to the Holder a new Warrant or Warrants of like tenor, dated the date
hereof and calling in the aggregate on the face or faces thereof for the number of Warrant Shares
equal to the number of such Warrant Shares called for on the face of this Warrant minus the number
of Common Shares representing that portion of the Warrant being redeemed, as set forth in the
applicable Put Rights Notice.

Upon surrender of this Warrant (or an affidavit of loss in form and substance reasonably
satisfactory to the Company) in accordance with the procedures set forth in this Section 9,
the right to purchase Common Shares represented by that portion of this Warrant that is being
redeemed pursuant to this Section 9 shall terminate, and this Warrant shall represent (i)
the right of the Holder to receive the applicable Put Redemption Price from the Company in
accordance with this Section 9 and (ii) in case the demand for redemption by the Holder is
only with respect to a portion of this Warrant, a new Warrant or Warrants for the remaining portion
of this Warrant as described in this Section 9.

10. RESERVATION OF SHARES, ETC. The Company shall at all times reserve and keep available, solely
for issuance and delivery upon exercise of the Warrants, the number of Common Shares from time to
time issuable upon exercise of all Warrants at the time outstanding. All Common Shares issuable
upon exercise of any Warrants shall be duly authorized and, when issued upon such exercise, shall
be validly issued and fully paid and nonassessable with no liability on the part of the holders
thereof. The Company shall take any and all trust action (including a reduction in par value)
which shall, in the opinion of counsel to the Holder, be necessary to validly and legally issue
fully paid and nonassessable Common Shares in accordance with the terms hereof.

11. OWNERSHIP, TRANSFER AND SUBSTITUTION OF WARRANTS.

11.1 Ownership of Warrants. The Company may treat the person in whose name any Warrant is
registered on the register kept at the office of the Company maintained pursuant to
Section 11.2(a) hereof as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary. A Warrant may be exercised by a new holder
without a new Warrant first having been issued.

11.2 Office; Transfer and Exchange of Warrants.

(a) The Company shall maintain an office (which may be an agency maintained
at a bank) where notices, presentations and demands in respect of this
Warrant may be made upon it. Such office may be maintained at 2929 Arch
Street, 17th Floor, Philadelphia, PA 19104, Attention: Chief
Financial Officer, until such time as the Company shall notify the holders
of the Warrants of any change of location of such office.

(b) The Company shall cause to be kept at its office maintained pursuant to
Section 11.2(a) hereof a register for the registration and transfer
of the Warrants. The names and addresses of holders of Warrants, the
transfer thereof and the names and addresses of transferees of Warrants
shall be registered in such register. The Person in whose names any Warrant
shall be so registered shall be deemed and treated as the owner and Holder
thereof for all purposes of this Warrant, and the Company shall not be
affected by any notice or knowledge to the contrary.

(c) Upon the surrender of any Warrant (or an affidavit of loss in form and
substance reasonably satisfactory to the Company), properly endorsed and
subject to Section 4 hereof, for registration of transfer or for
exchange at the office of the Company maintained pursuant to Section
11.2(a) hereof, the Company, at its expense, will promptly (and in any
event within five Trading Days) execute and deliver to or upon the order of
the holder thereof a new Warrant or Warrants of like tenor, in the name of
such holder or as such holder (upon payment by such holder of any applicable
transfer taxes) may direct, calling in the aggregate on the face or faces
therefor for the number of Common Shares called for on the face or faces of
the Warrant or Warrants so surrendered.

11.3 Replacement of Warrants. Upon receipt of evidence satisfactory to the Company of the
loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss,
theft or destruction of any Warrant held by a Person other than the initial holder hereof or
any institutional investor, upon delivery of indemnity satisfactory to the Company in form
and amount or, in the case of any such mutilation, upon surrender of such Warrant for
cancellation at the office of the Company maintained pursuant to Section 11.2(a)
hereof, the Company, at its sole expense, will execute and deliver, in lieu thereof, a new
Warrant of like tenor and dated the date hereof.

12. TERMINATION. This Warrant shall automatically terminate without any action on the part
of the Holder thereof or the Company on the earlier of (i) the fifteenth anniversary of the
Signing Date unless exercised on or prior to such date or (ii)(x) thirty (30) days following
the receipt of notice by the Holder of a Change of Control pursuant to Section 7 or
(y) if later, the date the Change of Control occurs, in each case unless exercised prior to
the consummation of such Change of Control. Upon termination of this Warrant, all rights and
obligations of the parties hereunder shall terminate and this Warrant shall have no futher
force and effect; provided, however, that the holder’s rights pursuant to Section 9 hereof
shall survive any such termination pursuant to clause (ii) of this Section 12 for at least 30
days following the occurrence of such Change of Control.

13. DEFINITIONS. As used herein, unless the context otherwise requires, the following terms
have the following respective meanings:

“Additional Common Shares” means all of the Common Shares (including treasury shares) issued
or sold (or, pursuant to Section 2.3 or 2.4 hereof, deemed to be issued) by the
Company after the Signing Date, whether or not subsequently reacquired or retired by the Company,
other than the Common Shares issued upon the exercise of Warrants.

“Adjusted Dividend Amount” shall have the meaning given to such term in Section 2.2.2
hereof.

“Annual Dividend Period” shall have the meaning given to such term in Section 2.2.2 hereof.

“Appraisal Notice” shall have the meaning given to such term in Section 2.9(a) hereof.

“Appraiser” an independent nationally recognized investment bank or other qualified financial
institution acceptable to the Company and the Required Interest.

“Appraiser’s Determination” shall have the meaning given to such term in
Section 2.9(a) hereof.

“Board of Trustees” shall mean the board of trustees of the Company.

“Change of Control” shall have the meaning given to such term in the Series D Preferred Shares
Articles Supplementary.

“Closing Date” shall have the meaning given to such term in the Purchase Agreement.

“Common Shares” shall have the meaning given to such term in the introduction to this Warrant,
such term to include any shares of beneficial interest into which such Common Shares shall have
been changed or any shares of beneficial interest resulting from any reclassification of such
Common Shares, and all other shares of beneficial interest of any class or classes (however
designated) of the Company the holders of which have the right, without limitation as to amount,
either to all or to a share of the balance of current dividends and liquidating dividends after the
payment of dividends and distributions on any shares entitled to preference.

“Company” shall have the meaning given to such term in the introduction to this Warrant, such
term to include any Person which shall succeed to or assume the obligations of the Company in
compliance with Section 3 hereof.

“Convertible Securities” means any evidences of indebtedness (including the Company’s 7.0%
senior convertible notes), shares of beneficial interest (other than Common Shares) or other
securities directly or indirectly convertible into or exchangeable for, and any instrument the
value of which is linked to, Additional Common Shares.

“Current Market Price” means, on any date specified herein, the arithmetic average of the VWAP
of a Common Share for the five (5) consecutive Trading Days ending on the date immediately
preceding such date except that (i) Common Shares, Convertible Securities and/or Options sold to a
dealer or underwriter or through an underwritten public offering (whether on a firm commitment or
best efforts basis) at a price equal to or greater than the Warrant Price and (ii) Common Shares,
Convertible Securities and/or Options sold in “at-the-market offerings” within the meaning of Rule
415(a)(4) at a price equal to or greater than the Warrant Price shall, in each case, conclusively
be deemed to have been sold at the Current Market Price.

“Determination Date” shall have the meaning given to such term in Section 2.2.3
hereof.

“Exchange Cap” shall have the meaning given to such term in Section 1.1.3 hereof.

“Exchange Cap Allocation” shall have the meaning given to such term in Section 1.1.3
hereof.

“Exercise Notice” shall have the meaning given to such term in Section 1.1.1 hereof.

“Holder” shall mean the registered holder hereof or its permitted assigns.

“Initial Dividend Amount” shall have the meaning given to such term in Section 2.2.2
hereof.

“Initial Warrant Price” shall have the meaning given to such term in the introduction to this
Warrant.

“Liquidation Preference” shall have the meaning given to such term in the Series D Preferred
Shares Articles Supplementary as in effect on the Signing Date, which, for purposes of
clarification, includes accrued and unpaid dividends thereon through the date of surrender.

“Market Price” shall have the meaning given to such term in Section 2.2.2 hereof.

“Options” means rights, options or warrants to subscribe for, purchase or otherwise acquire
either Additional Common Shares or Convertible Securities.

“Ordinary Dividend Amount” shall have the meaning set forth in Section 2.2.2 hereof.

“Other Securities” means any shares of beneficial interest or other equity units (other than
the Common Shares) and other securities of the Company or any other Person (corporate or otherwise)
(other than any promissory notes or similar Indebtedness) which the holders of the Warrants at any
time shall be entitled to receive, or shall have received, upon the exercise of Warrants, in lieu
of or in addition to Common Shares and which at any time shall have been issuable or shall have
been issued in exchange for or in replacement of Common Shares or Other Securities pursuant to
Section 3 hereof or otherwise.

“Person” means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization or any
federal, state, county or municipal governmental or quasi-governmental agency, department,
commission, board, bureau, instrumentality or similar entity, foreign or domestic, having
jurisdiction over either the Company or any holder of a Warrant.

“Principal Market” means the New York Stock Exchange.

“Purchase Agreement” shall have the meaning given to such term in the introduction to this
Warrant.

“Purchaser” shall have the meaning given to such term in the introduction to this Warrant.

“Put Demand Date” shall have the meaning given to such term in Section 9 hereof.

“Put Payment Date” shall have the meaning given to such term in Section 9 hereof.

“Put Redemption Price” means the aggregate amount determined by multiplying (a) the aggregate
number of Common Shares representing that portion of this Warrant to be redeemed, as specified in
the Put Right Notice delivered pursuant to Section 9 hereof and (b) the applicable price
per Common Share determined by reference to the following table (provided that, in determining the
aggregate number of Common Shares representing that portion of this Warrant to be redeemed pursuant
to clause (a) above, no adjustments shall be made thereto pursuant to Section 2):

	 	 	 	 	 
	If the Redemption Date is:	 	Applicable Price
	Prior to the sixth anniversary of the Signing Date:
	 	$	1.23	 
	 
	 	 	 	 
	On or after the sixth anniversary of the Signing Date and
prior to the seventh anniversary of the Signing Date:
	 	$	1.60	 
	 
	 	 	 	 
	On or after the seventh anniversary of the Signing Date:
	 	$	1.99	 
	 
	 	 	 	 

“Put Right Notice” shall have the meaning given to such term in Section 9 hereof.

“Registration Rights Agreement” means that certain Registration Rights Agreement by and
between the Company and the Purchaser dated as of the Signing Date as from time to time in effect.

“Repurchase” shall have the meaning given to such term in Section 2.2.3 hereof.

“Repurchase Premium” shall have the meaning given to such term in Section 2.2.3
hereof.

“Required Interest” shall have the meaning given to such term in Section 2.9(a)
hereof.

“SEC” means the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

“Securities Act” means the Securities Act of 1933, or any similar federal statute, and the
rules and regulations of the SEC thereunder, all as the same shall be amended and in effect at the
time.

“Series D Preferred Shares” means the Company’s Series D Cumulative Redeemable Preferred
Shares of Beneficial Interest, par value $0.01 per share.

“Series D Preferred Shares Articles Supplementary” means the Articles Supplementary to the
Company’s Declaration of Trust, as amended) designating and classifying the Series D Preferred
Shares.

“Signing Date” shall have the meaning given to such term in the introduction to this Warrant.

“Trading Day” means any day on which the Common Shares are traded on the Principal Market, or,
if the Principal Market is not the principal trading market for the Common Shares, then on the
principal securities exchange or securities market on which the Common Shares are then traded,
provided that “Trading Day” shall not include any day on which the Common Shares are
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Shares are suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such
exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

“VWAP” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time
(or such other time as the Principal Market publicly announces is the official open of trading),
and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market publicly
announces is the official close of trading), as reported by Bloomberg, L.P. through its “Volume at
Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of
such security in the over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal
Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York
City Time (or such other time as the Principal Market publicly announces is the official close of
trading), as reported by Bloomberg, L.P., or, if no dollar volume-weighted average price is
reported for such security by Bloomberg, L.P. for such hours, the average of the highest closing
bid price and the lowest closing ask price of any of the market makers for such security as
reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
If the VWAP cannot be calculated for a security on a particular date on any of the foregoing bases,
the VWAP of such security shall be the fair market value of such security on such date as
determined by the Board of Trustees in good faith. If the holders of the Required Interest
disagree for any reason with the Board of Trustee’s determination of the VWAP in accordance with
the previous sentence, then such dispute shall be resolved pursuant to Section 2.9 with the
term “VWAP” being substituted for the term “Current Market Price.” All such determinations shall
be appropriately adjusted for any share splits, share dividends, combinations, recapitalizations
and the like during the applicable calculation period.

“Warrant” shall have the meaning given to such term in the introduction of this Warrant.

“Warrant Price” shall have the meaning given to such term in the introduction of this Warrant.

“Warrant Share” shall have the meaning given to such term in the introduction of this Warrant.

14. REMEDIES. Each of the Company and the Holder of this Warrant acknowledges that the remedies at
law available to the Company or the Holder of this Warrant, as applicable in the event of any
default or threatened default by the other in the performance of or compliance with any of the
terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted,
such terms may be specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms hereof or otherwise,
and each of the Company and the Holder of this Warrant hereby agrees to waive any requirement for
the securing or posting of any bond in connection with such remedy.

15. TIME IS OF THE ESSENCE. With regard to all dates and time periods set forth or referred to in
this Warrant, time is of the essence.

16. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. Nothing contained in this Warrant shall be construed
as conferring upon the Holder hereof any rights as a shareholder of the Company or as imposing any
obligation on such Holder to purchase any securities or as imposing any liabilities on such Holder
as a shareholder of the Company, whether such obligation or liabilities are asserted by the Company
or by creditors of the Company.

17. SPECIFIC ENFORCEMENT; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

17.1 Each of the Company and the Holder of this Warrant agrees that irreparable damage would
occur to the other in the event that any of the provisions of this Warrant were not
performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the Company or the Holder of this Warrant, as applicable, shall be
entitled to an injunction or injunctions to prevent or cure breaches of the provisions of
this Warrant and to enforce specifically the terms and provisions hereof and thereof this
being in addition to any other remedy to which the Company or the Holder of this Warrant, as
applicable, may be entitled by law or equity.

17.2 The Company and Holder (i) hereby irrevocably submit to the exclusive jurisdiction of
the United States District Court and other courts of the United States sitting in New York
City in the State of New York for the purposes of any suit, action or proceeding arising out
of or relating to this Warrant and (ii) hereby waive, and agree not to assert in any such
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such court, that the suit, action or proceeding is brought in an inconvenient forum or
that the venue of the suit, action or proceeding is improper. The Company and Holder
consent to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this Warrant and
agree that such service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 17.2 shall affect or limit any right to serve
process in any other manner permitted by law

17.3 EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE RELATED DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER
VOLUNTARILY AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE RELATED
DOCUMENTS, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
17.

18. NOTICES. Any notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand delivery or facsimile
(with facsimile machine confirmation of delivery received) at the address or number designated
below (if delivered on a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other than on a business
day during normal business hours where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first occur. The address for such
communications shall be:

	 	 	 
	If to the Company:
	 	RAIT Financial Trust

2929 Arch Street

17th Floor

Philadelphia, PA 19104

Telephone Number: (215) 243-9000

Fax: (215) 405-2945

Attention: Chief Financial Officer

	With copies to:
	 	Pepper Hamilton LLP

3000 Two Logan Square

Philadelphia, Pennsylvania 19103-2799

Telephone Number: (215) 981-4563

Fax: (215) 981-4750

Attention: Michael H. Friedman, Esq.

	If to the Holder:
	 	ARS VI Investor I, LLC

c/o Almanac Realty Investors, LLC

1251 Avenue of the Americas

New York, NY 10020

Telephone Number: (212) 403-3511

Fax: (212) 403-3520

Attention: Andrew M. Silberstein

	With copies to:
	 	Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

Telephone Number: (212) 969-3210

Fax: (212) 969-2900

Attention: Arnold S. Jacobs, Esq.

Either party hereto may from time to time change its address for notices by giving at least 10 days
advance written notice of such changed address to the other parties hereto.

19. WAIVERS. No waiver by any party of any default with respect to any provision, condition or
requirement of this Warrant shall be deemed to be a continuing waiver in the future or a waiver of
any other provisions, condition or requirement hereof nor shall any delay or omission of any party
to exercise any right hereunder in any manner impair the exercise of any such right accruing to it
thereafter. This Warrant and any term hereof may be changed, waived, discharged or terminated only
by an instrument in writing signed by the Company and the Required Interest; provided however that
no such change, waiver, discharge or termination that would treat the Holder of this Warrant in a
discriminatory manner may be made without the prior written consent of the Holder of this Warrant.

20. HEADINGS. The article, section and subsection headings in this Warrant are for convenience
only and shall not constitute a part of this Warrant for any other purpose and shall not be deemed
to limit or affect any of the provisions hereof.

21. GOVERNING LAW. This Warrant shall be governed by and construed in accordance with the internal
procedural and substantive laws of the State of New York, without giving effect to the choice of
law provisions of such state that would cause the application of the laws of any other
jurisdiction.

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

[SIGNATURE PAGE FOLLOWS]

	 	 	 	RAIT FINANCIAL TRUST

	 	 	 	By:

Name:

Title:

EXHIBIT A

FORM OF EXERCISE NOTICE

[To be executed only upon exercise of Warrant]

To RAIT FINANCIAL TRUST

The undersigned registered Holder of the within Warrant hereby irrevocably exercises such
Warrant for, and purchases thereunder,       1 Common Shares and herewith makes payment of
$      therefor, and requests that the certificates for such shares be issued in the name of,
and delivered to       , whose address is—.

	 	 	Dated:

(Signature of Holder)

(Street Address)

(City) (State) (Zip Code)

EXHIBIT B

FORM OF EXCHANGE NOTICE

[To be executed only upon exercise of Warrant]

To RAIT FINANCIAL TRUST

The undersigned registered Holder of the within Warrant hereby irrevocably exchanges such
Warrant with respect to       2            shares of the Common Share which such holder would be
entitled to receive upon the exercise hereof, and requests that the certificates for such shares be
issued in the name of, and delivered to       , whose address is
     .

	 	 	Dated:

(Signature of Holder)

(Street Address)

(City) (State) (Zip Code)

EXHIBIT C

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR AN EXEMPTION THEREFROM.

PROMISSORY NOTE

$[      ] [DATE]

FOR VALUE RECEIVED, RAIT Financial Trust, a Maryland real estate investment trust (the
“Company”), promises to pay to the order of [      ] (“Holder”), the principal amount of
[      ] ($[      ]) and interest on the outstanding principal amount as provided
below.

This note (this “Note”) is being issued pursuant to one of the Common Share Purchase Warrants
issued by the Company (the “Warrants”) pursuant to the Securities Purchase Agreement, dated as of
October 1, 2012, by and among the Company, RAIT Partnership, L.P., Taberna Realty Finance Trust,
RAIT Asset Holdings IV, LLC and ARS VI Investor I, LLC (the “Purchase Agreement”). Capitalized
terms not otherwise defined herein shall have the meanings provided in the Purchase Agreement.

The terms and conditions of this Note are as follows:

1. This Note shall accrue interest (calculated on the basis of a 360-day year of 30-day
months, computed annually) on the unpaid principal amount of this Note at a rate of twelve and one
half percent (12.5%) per annum (the “Interest Rate”), payable quarterly in arrears on March 31,
June 30, September 30 and December 31 of each year until such unpaid principal is paid or prepaid
in cash in full.

2. The principal amount of this Note and all accrued and unpaid interest thereon shall be due
on [      ]3 (the “Maturity Date”). On the Maturity Date, the Company shall pay
to Holder all principal and accrued but unpaid interest thereon.

3. Each payment upon this Note shall be made at [      ] or any other place that Holder may
direct in writing.

4. The Company, at its option, may make prepayments of the principal of, and the interest on,
this Note in whole or in part (in minimum increments of $1,000,000, or if less, the remaining
principal amount of the Note), at any time without premium or penalty, but with accrued interest to
the date of such prepayment applicable to the principal amount of the Note being prepaid.

5. Each of the following shall constitute an “Event of Default” under this Note:

a. The occurrence of a Change of Control;

b. the Company shall, pursuant to or within the meaning of the United States
Bankruptcy Code or any other foreign, federal or state law relating to insolvency or
relief of debtors (a “Bankruptcy Law”) (i) commence a voluntary case or proceeding,
(ii) consent to the entry of an order for relief against it in an involuntary case,
(iii) consent to the appointment of a trustee, receiver, assignee, liquidator or
similar official or (iv) make an assignment for the benefit of its creditors;

c. a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against the Company in an involuntary case, (ii) appoints
a trustee, receiver, assignee, liquidator or similar official for the Company or
substantially all of the Company’s properties or (iii) orders the liquidation of the
Company, and in each case, the order or decree is not dismissed within 90 days;

d. the Company fails to pay when due any principal or interest under this Note or
any other note issued pursuant to the Warrants, the Common Share Appreciation Rights
or the Articles Supplementary, and such failure continues unremedied for a period of
ten (10) days; or

e. the occurrence of a default or event of default and the continuation thereof
under the terms of any agreement, contract, note or other instrument to which any
Issuer Party or any of their respective Subsidiaries is a party which has resulted
in the acceleration of in excess of $25.0 million in Recourse Indebtedness and which
acceleration has not been rescinded or cured and has not been stayed or restricted
by judicial order or process and such occurrence and continuation continues for a
period of two (2) business days after Holder’s delivery of written notice to the
Company of such occurrence and continuation.

Upon the occurrence of any Event of Default specified in clauses (a) through (c)
above after the issuance of this Note and separate from the event that gave rise to
the issuance of this Note, all amounts owing with respect to this Note shall become
immediately due and payable to Holder automatically and without any requirement of
notice from Holder. Upon the occurrence of an Event of Default specified in clauses
(d) through (e) above, Holder may declare all amounts owing with respect to this
Note and any other note issued to the Holder pursuant to the Warrants, the Common
Share Appreciation Rights or Articles Supplementary to be, and they shall thereupon
forthwith become, immediately due and without presentment, demand, protest or other
notice of any kind.

6. Nothing in this Note shall require the Company to pay interest at a rate in excess of the
maximum rate permitted by applicable law and the interest rate otherwise applicable to this Note
(including any default rate of interest) shall be reduced, if necessary, to conform to such maximum
rate.

7. The Company waives demand for payment, presentment, notice of dishonor and protest of this
Note.

8. No waiver by any party of any default with respect to any provision, condition or
requirement of this Note shall be deemed to be a continuing waiver in the future or a waiver of any
other provisions, condition or requirement hereof nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right accruing to it
thereafter. No provision of this Note may be waived other than in a written instrument signed by
the party against whom enforcement of such waiver is sought.

9. Holder may sell or assign, or grant participations in, all or a portion of, its interest in
this Note without the prior written consent of the Company (the “Note Interest”) and, in
connection therewith, may make available to any prospective purchaser, assignee or participant any
information relative to the Company in his possession. The Holder shall promptly notify the Company
of any such sale, assignment or participation grant. The Company may not assign any of its rights
hereunder without the prior written consent of Holder.

10. This Note and any term hereof may be changed, discharged or terminated only by an
instrument in writing signed by the Company and the Holder. If any term or provision of this Note
shall be held invalid, illegal or unenforceable, the validity of all other terms and provisions
hereof shall in no way be affected thereby. The parties hereby irrevocably submit to the exclusive
jurisdiction of the United States District Court and other courts of the United States sitting in
New York City in the State of New York for the purposes of any suit, action or proceeding arising
out of or relating to this Note. This Note shall be governed by and construed in accordance with
the internal procedural and substantive laws of the State of New York, without giving effect to the
choice of law provisions of such state that would cause the application of the laws of any other
jurisdiction.

IN WITNESS WHEREOF, the undersigned has executed this Note on the day and year first above
written.

RAIT FINANCIAL TRUST

	 	 	 
	By:

Name:

	 	     

	Title:

	 	

Acknowledged and agreed to by:

[HOLDER]

By:      

Name:

Title:

	1	 	Insert here the number of shares called for
on the face of this Warrant (or, in the case of a partial exercise, the portion
thereof as to which this Warrant is being exercised), in either case without
making any adjustment pursuant to the adjustment provisions of the Warrant, and
the Holder shall be entitled to receive the number of duly authorized, validly
issued, fully paid and nonassessable Common Shares (or Other Securities)
determined as provided in Sections 2 through 4 of the Warrant. In the case of
a partial exercise, a new Warrant or Warrants will be issued and delivered,
representing the unexercised portion of the Warrant, to the holder surrendering
the Warrant.

	2	 	Insert here the number of shares with respect
to which this Warrant is then being exercised. In the case of a partial
exercise, a new Warrant or Warrants will be issued and delivered, representing
the unexercised portion of the Warrant, to the holder surrendering the Warrant.

	3	 	The maturity date will be the third
(3rd) anniversary of the applicable Put Demand Date or 180 days from
the date of payment of the Exchange Cap excess amount under Section 1.1.3 of
the Warrants.

2

Schedule A

	 	(iii)	 	16,452,072 Common Shares reserved for issuance under the Company’s 7.00% Convertible
Senior Notes due 2031.

	 	(iv)	 	47,812 Common Shares reserved for issuance under the Company’s 6.875% Convertible
Senior Notes due 2027.

	 	(c)	 	Common Share Appreciation Rights (as defined in the Purchase Agreement) representing

6,735,667 Common Shares.

3

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED OR ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.
THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON
TRANSFER SET FORTH IN A SECURITIES PURCHASE AGREEMENT, DATED AS OF OCTOBER 1, 2012, AS AMENDED AND
MODIFIED FROM TIME TO TIME, AND THE ISSUER RESERVES THE RIGHT TO REFUSE THE TRANSFER OF SUCH
SECURITIES UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED WITH RESPECT TO SUCH TRANSFER. A COPY OF SUCH
CONDITIONS SHALL BE FURNISHED BY THE ISSUER TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT
CHARGE

EXHIBIT E

RAIT FINANCIAL TRUST

Form of Common Share Appreciation Right

Right No. [      ] New York, New York

[ISSUE DATE]

RAIT FINANCIAL TRUST, a Maryland real estate investment trust (the “Company”), for value
received, hereby certifies that ARS VI Investor I, LLC, a Delaware limited liability company (the
“Purchaser”), or its registered assigns, is the holder of Common Share Appreciation Rights of the
Company representing a number of common shares of beneficial interest, par value $0.03 per share,
of the Company (the “Common Shares”) equal to [      ], which shall be adjusted or readjusted from
time to time as provided herein (as adjusted, the “Shares”), at the exercise price per share of
$6.00 (the “Initial Exercise Price”), which shall be adjusted or readjusted from time to time as
provided herein (as adjusted, the “Exercise Price”), at any time or from time to time, subject to
the terms, conditions and adjustments set forth below in this Right (as defined below).

This Common Share Appreciation Right is one of the Common Share Appreciation Rights (each a
“Right” and collectively, the “Rights,” such term to include any such common share appreciation
rights issued in substitution therefor) that may be issued from time to time pursuant to the
Securities Purchase Agreement (as may be amended from time to time, the “Purchase Agreement”),
dated as of October 1, 2012 (the “Signing Date”), by and among the Company, RAIT Partnership, L.P.,
a Delaware limited partnership, Taberna Realty Finance Trust, a Maryland real estate investment
trust, RAIT Asset Holdings IV, LLC, a Delaware limited liability company, and the Purchaser.
Assuming the maximum number of Rights issuable pursuant to the Purchase Agreement are issued, the
Rights represent an aggregate of up to 6,735,667 Common Shares as of the Signing Date, subject to
adjustment as provided herein, at an exercise price per Common Share as of the Signing Date of
$6.00. All capitalized terms used herein which are not otherwise defined in Section 12
hereof shall have the meanings set forth in the Purchase Agreement.

1. EXERCISE OF RIGHT

1.1 Manner of Exercise; Payment.

1.1.1 Exercise. The Holder hereof may exercise, at any time and from time
to time commencing on the earlier of (i) the second (2nd) anniversary of
the Signing Date and (ii) the consummation of a Change of Control, this Right, in
whole or in part, during normal business hours on any Trading Day prior to the
termination of this Right provided for in Section 11 hereof by surrender of
this Right (or an affidavit of loss in form and substance reasonably satisfactory to
the Company) to the Company at its office maintained pursuant to Section
10.2(a) hereof, accompanied by an exercise notice in substantially the form
attached to this Right as Exhibit A (or a reasonable facsimile thereof) duly
executed by such Holder (each, an “Exercise Notice”), and such Holder shall
thereupon be entitled to receive in settlement of such Right an aggregate amount for
all Shares for which the Right is being exercised (such amount, the “Settlement
Amount”) equal to the product of (i) the average VWAP of a Common Share for
the five (5) consecutive Trading Days ending on the date immediately preceding the
Exercise Date minus the Exercise Price per Share multiplied by (ii)
the number of Shares for which the Right is being exercised.

1.1.2. Each exercise of this Right shall be deemed to have been effected immediately
prior to the close of business on the Trading Day on which this Right (or an
affidavit of loss in form and substance reasonably satisfactory to the Company) and
the Exercise Notice shall be deemed to have been surrendered to the Company as
provided in Section 1.1 hereof (the “Exercise Date”).

1.1.3 The Company shall as soon as reasonably practicable, but in any event no later
than ten (10) days following the Exercise Date, pay the Settlement Amount payable to
such Holder at the Company’s option, either (i) in cash, by wire transfer of
immediately available funds, (ii) by executing and delivering to the Holder of this
Right a promissory note in the form attached hereto as Exhibit B, having a
principal amount equal to the Settlement Amount payable to the Holder, or (iii) any
combination of cash or such a promissory note.

1.1.4 Notwithstanding anything to the contrary contained in this Right, the Company
shall not actually issue at any time any Common Shares upon exercise of this Right,
and the Holder shall not have the right to receive upon exercise of this Right any
Common Shares.

1.2 Delivery of New Right Certificate. As soon as practicable after each exercise of this
Right, in whole or in part, and in any event within two (2) Trading Days after the Exercise
Date, the Company at its sole expense will cause to be issued in the name of and delivered
to the Holder hereof or, subject to Section 10 hereof, as such Holder (upon payment
by such Holder of any applicable transfer taxes) may direct in case such exercise is in part
only, a new Right or Rights of like tenor, dated the date hereof and calling in the
aggregate on the face or faces thereof for the number of Shares equal (without giving effect
to any adjustment thereof) to the number of such shares called for on the face of this Right
minus the number of such shares designated by the Holder upon such exercise as provided in
Section 1.1 hereof.

2. ADJUSTMENTS OF COMMON SHARES.

2.1 General; Number of Shares; Exercise Price

2.1.1 The number of Common Shares for which this Right may be exercised shall be
determined by multiplying the number of Shares for which this Right would otherwise
(but for the provisions of this Section 2) be exercisable, as designated by
the Holder hereof pursuant to Section 1.1 hereof, by the fraction of which
(a) the numerator is the Initial Exercise Price and (b) the denominator is the
Exercise Price in effect on the date of such exercise.

2.1.2 Notwithstanding anything to the contrary contained in this Section 2,
the Exercise Price shall not be adjusted for:

(a) issuances or sales of up to an aggregate of 3,070,187 Additional Common Shares (or
Options, Other Securities, Convertible Securities for Additional Common Shares or any other
securities under the Company’s 2012 Incentive Award Plan (as amended and restated as of May 22,
2012) and its predecessors or successors) to employees, trustees, directors or non-affiliated
consultants of the Company or its Subsidiaries;

(b) issuances or sales of Common Shares or Other Securities pursuant to plans of the Company
for reinvestment of dividends or interest payable on securities of the Trust but not investments of
additional optional amounts in Common Shares or Other Securities under those plans;

(c) issuances or sales of Common Shares, Other Securities, Options or Convertible Securities
under contracts, agreements, Options, Other Securities, Convertible Securities or other
arrangements in existence on the Signing Date and set forth on Schedule A hereto;

(d) issuances or sales of Common Shares, Other Securities, Options or Convertible Securities
for a consideration per share that is not less than the greater of the Current Market Price and the
Exercise Price; or

(e) purchases, redemptions and other retirement of Common Shares, Options, Other Securities or
Convertible Securities for a consideration per share below the Current Market Price.

2.2 Adjustment of Exercise Price.

2.2.1 Issuance of Additional Common Shares. Except as provided in
Section 2.1.2, in the event the Company, at any time or from time to time,
on or after the Signing Date shall issue or sell Additional Common Shares (including
Additional Common Shares deemed to be issued pursuant to Section 2.3 or
2.4 hereof) without consideration or for consideration per share less than
the greater of the Current Market Price or the Exercise Price in effect immediately
prior to such issue or sale, then, and in each such case, subject to Section
2.7 hereof, such Exercise Price shall be reduced, concurrently with such issue
or sale, to a price (calculated to the nearest .001 of a cent) determined by
multiplying such Exercise Price by a fraction:

(a) the numerator of which shall be the sum of (i) the number of Common
Shares outstanding immediately prior to such issue or sale plus (ii)
the number of Common Shares issuable upon exercise of Options or conversion
of Convertible Securities outstanding immediately prior to such issue or
sale if the issuance, sale or grant of such Options or Convertible
Securities resulted in an adjustment to the Exercise Price prior to such
issue or sale plus (iii) the number of Common Shares which the
aggregate consideration received by the Company for the total number of such
Additional Common Shares so issued or sold would purchase at the greater of
such Current Market Price and such Exercise Price; and

(b) the denominator of which shall be the sum of (i) the number of Common
Shares outstanding immediately after such issue or sale (including any such
Common Shares deemed to be outstanding pursuant to Section 2.8)
plus (ii) the number of Common Shares included in the numerator
pursuant to clause (ii) of Section 2.2.1(a).

2.2.2 Extraordinary Dividends. In the event that during any
twelve-month period commencing immediately following the Signing Date (an “Annual
Dividend Period”), the Company makes dividends or other distributions (including
without limitation any distribution of securities or property, but excluding
dividends or distributions referred to in Section 2.4) on the Common Shares
in an amount that, when added to all other dividends or such distributions made on
the Common Shares during such Annual Dividend Period (collectively, the “Aggregate
Annual Dividend Amount”) exceed the Ordinary Dividend Amount (as defined below),
then, and in each such case, the Exercise Price shall be reduced immediately
thereafter (but in no event reduced by more than the amount of such excess, which
amount is hereafter referred to as the “Excess Amount”)) to the price determined by
multiplying the Exercise Price in effect immediately prior to the reduction by the
quotient of (x) the average VWAP of a Common Share for the five (5)
consecutive Trading Days ending on the date immediately preceding the first date on
which the Common Shares trade regular way on the Principal Market without the right
to receive such dividend or distribution (the “Market Price”), minus the
Excess Amount divided by (y) such Market Price. “Ordinary Dividend Amount”
means the aggregate amount of $0.40 per Common Share (the “Initial Dividend Amount”)
for the Annual Dividend Periods ending on or prior to the second anniversary of the
Signing Date, which Initial Dividend Amount shall increase by an additional 5% on
the second anniversary of the Signing Date (as increased, the “Adjusted Dividend
Amount”) and which Adjusted Dividend Amount shall further increase by 5% of the
amount of the immediately preceding Adjusted Dividend Amount each successive
anniversary of the Signing Date following the second anniversary of the Signing
Date. If any dividend or distribution is declared but not so paid or made, the
Exercise Price shall be readjusted to the Exercise Price that would have been in
effect if such dividend or distribution had not been declared. The amount of any
non-cash dividend or distribution shall be the fair market value thereof as
determined in good faith by the Board of Trustees or a committee thereof. The
Ordinary Dividend Amount shall be subject to adjustment in a manner inversely
proportional to the adjustments to the number of Common Shares represented by this
Right.

2.2.3 Above Market Purchases of Common Shares. Except as provided
in Section 2.1.2, if, at any time after the Signing Date, the Company shall
repurchase (a “Repurchase”), by self-tender offer or otherwise, any outstanding
Common Shares for a consideration per share that exceeds the Current Market Price in
effect immediately prior to the earlier of (i) the date of such Repurchase, (ii) the
commencement of an offer to repurchase or (iii) the public announcement of either
(such date being referred to as the “Determination Date”), then, and in each such
case, subject to Section 2.7 hereof, such Exercise Price shall be reduced,
concurrently with such issue or sale, to a price determined by multiplying such
Exercise Price by a fraction:

(a) the numerator of which shall be (x) the product of (1) the Current
Market Price as of the Determination Date times (2) the sum of (i)
the number of Common Shares outstanding immediately following the
consummation of the Repurchase plus (ii) the number of Common Shares
issuable upon exercise of Options or conversion of Convertible Securities
outstanding immediately prior to such issue or sale if the issuance, sale or
grant of such Options or Convertible Securities resulted in an adjustment to
the Exercise Price prior to such issue or sale less (y) the
Repurchase Premium (as defined below), and

(b) the denominator of which shall be (x) the product of (1) the Current
Market Price as of the Determination Date times (2) the sum of (i)
the number of Common Shares outstanding immediately following the
consummation of the Repurchase (including any such Common Shares deemed to
be outstanding pursuant to Section 2.8) plus (ii) the
number of Common Shares included in the numerator pursuant to clause (ii) of
Section 2.2.3(a)(x)(2).

The amount by which the aggregate repurchase prices for all securities repurchased in any
Repurchase exceeds the Current Market Price for such securities is referred to as the “Repurchase
Premium”.

2.3 Treatment of Options and Convertible Securities.

2.3.1 Issuance of Options or Convertible Securities. In the event that the
Company, at any time or from time to time, on or after the Signing Date, issues,
sells, grants or assumes, or fixes a record date for the determination of holders of
any class of securities entitled to receive, any Options or Convertible Securities
for consideration per share (determined pursuant to Section 2.5 hereof) less
than the greater of the Current Market Price or the Exercise Price in effect on the
date of and immediately prior to such issue, sale, grant or assumption or
immediately prior to the close of business on such record date (or, if the Common
Shares trade on an ex-dividend basis, on the date immediately prior to the
commencement of ex-dividend trading), then, and in each such case, the maximum
number of Additional Common Shares (as set forth in the instruments related thereto,
without regard to any provision contained therein for a subsequent adjustment of
such number the purpose of which is to protect against dilution) issuable upon the
exercise of such Options or, in the case of Convertible Securities and Options
therefor, the conversion or exchange of such Convertible Securities, or, in the case
of any instrument the value of which is linked to Common Shares, the maximum number
of Common Shares to which the value is linked, shall be deemed to be Additional
Common Shares issued as of the time of such issue, sale, grant or assumption or, in
case such a record date shall have been fixed, as of the close of business on such
record date (or, if the Common Shares trade on an ex-dividend basis, on the date
immediately prior to the commencement of ex-dividend trading). Except as otherwise
provided in Section 2.3.2, (a) with respect to Options, no adjustment of the
Exercise Price shall be made (i) upon the actual issuance of (A) such Common Shares
or (B) of such Convertible Securities upon exercise of such Options, (ii) upon the
actual issuance of such Common Shares upon conversion or exchange of such
Convertible Securities upon exercise of such Options or (iii) upon the actual
issuance of such Common Shares upon conversion or exchange of such Convertibles
Securities, and (b) with respect to Convertible Securities, (i) no adjustment of the
Exercise Price shall be made upon the actual issuance of such Common Shares upon
conversion or exchange of such Convertible Securities, and (ii) if any such issuance
or sale of such Convertible Securities is made upon exercise of any Options to
purchase any such Convertible Securities, no further adjustment of the Exercise
Price shall be made by reason of such issuance or sale.

2.3.2 Change in Option Price or Conversion Rate; Termination of Options or
Convertible Securities. If a change occurs in (a) the maximum number of Common
Shares issuable in connection with any Option or Convertible Security, (b) the
purchase price provided for in any Option, (c) the additional consideration, if any,
payable upon the conversion or exchange of any Convertible Securities, or (d) the
rate at which Convertible Securities are convertible into or exchangeable for Common
Shares, then the Exercise Price in effect at the time of such event shall be
readjusted (or adjusted, in the event that no adjustment was made in connection with
the original issue sale, grant or assumption, or fixing of a record date for the
determination of holders of any class of securities entitled to receive such Options
or Convertible Securities) to the Exercise Price that would have been in effect at
such time had such Options or Convertible Securities that remain outstanding
provided for such changed maximum number of shares, purchase price, additional
consideration or conversion rate, as the case may be, at the time initially granted,
issued, sold or assumed.

2.3.3 Expiration or Cancellation of Options or Convertible Securities. In
any case in which Additional Common Shares shall be deemed to be issued under
Section 2.3.1 in connection with the issuance, sale, grant or assumption of
Options or Convertible Securities then upon the expiration, cancellation or
retirement of any such Options or Convertible Securities which have not been
exercised or converted, the Exercise Price and any subsequent adjustments based
thereon shall be adjusted and recomputed as if:

(i) in the case of Options for Common Shares or Convertible Securities,
the only Additional Common Shares issued or sold were the Additional Common
Shares, if any, actually issued or sold upon the exercise of such Options or
the conversion or exchange of such Convertible Securities and the
consideration received therefor was the consideration actually received by
the Company for the issue, sale, grant or assumption of all such Options,
whether or not exercised, plus the consideration actually received by the
Company upon such exercise, or for the issue or sale of all such Convertible
Securities which were actually converted or exchanged, plus the additional
consideration, if any, actually received by the Company upon such conversion
or exchange, and

(ii) in the case of Options for Convertible Securities, only the
Convertible Securities, if any, actually issued or sold upon the exercise of
such Options were issued at the time of the issue or sale, grant or
assumption of such Options, and the consideration received by the Company
for the Additional Common Shares deemed to have then been issued was the
consideration actually received by the Company for the issue, sale, grant or
assumption of all such Options, whether or not exercised, plus the
consideration deemed to have been received by the Company (pursuant to
Section 2.5) upon the issue or sale of such Convertible Securities
with respect to which such Options were actually exercised;

2.4 Treatment of Share Dividends, Share Splits, etc. In the event the Company, at any time
or from time to time, on or after the Signing Date shall declare or pay any dividend on the
Common Shares payable in Common Shares, or shall effect a subdivision of the outstanding
Common Shares into a greater number of Common Shares (by reclassification or otherwise than
by payment of a dividend in Common Shares), then, and in each such case, Additional Common
Shares shall be deemed to have been issued (a) in the case of any such dividend, immediately
after the close of business on the record date for the determination of holders of any class
of securities entitled to receive such dividend, or (b) in the case of any such subdivision,
at the close of business on the day immediately prior to the day upon which such corporate
action becomes effective.

2.5 Computation of Consideration. For the purposes of this Section 2:

(a) the consideration for the issue or sale of any Additional Common Shares
shall, irrespective of the accounting treatment of such consideration:

(i) insofar as it consists of cash, be computed at the amount of cash
received by the Company net of any expenses paid or incurred by the
Company or any commissions or compensations paid or concessions or
discounts allowed to underwriters, dealers or others performing
similar services in connection with such issue or sale;

(ii) insofar as it consists of property (including securities) other
than cash received by the Company, be computed at the fair market
value thereof (as determined by the Board of Trustees or a committee
of the Board of Trustees) at the time of such issue or sale;

(iii) insofar as it consists neither of cash nor of other property,
be computed as having no value; and

(iv) in the event Additional Common Shares are issued or sold
together with other shares or securities or other assets of the
Company for a consideration which covers both, be the portion of such
consideration so received, computed as provided in clauses
(i), (ii) and (iii) above, allocable to such
Additional Common Shares, all as determined in good faith by the
Board of Trustees or a committee of the Board of Trustees;

(b) Additional Common Shares deemed to have been issued pursuant to
Section 2.3 hereof shall be deemed to have been issued for a
consideration per share determined by dividing:

(i) the total amount of cash and other property, if any, received and
receivable by the Company as consideration for the issue, sale, grant
or assumption of the Options or Convertible Securities in question,
plus the minimum aggregate amount of additional consideration
(as set forth in the instruments relating thereto, without regard to
any provision contained therein for a subsequent adjustment of such
consideration the purpose of which is to protect against dilution)
payable to the Company upon the exercise in full of such Options or
the conversion or exchange of such Convertible Securities or, in the
case of Options for Convertible Securities, the exercise of such
Options for Convertible Securities and the conversion or exchange of
such Convertible Securities, in each case computing such
consideration as provided in the foregoing clause (a),

by

(ii) the maximum number of Common Shares (as set forth in the
instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number the
purpose of which is to protect against dilution) issuable upon the
exercise of such Options or upon the conversion or exchange of such
Convertible Securities; and

(c) Additional Common Shares deemed to have been issued pursuant to
Section 2.4 hereof shall be deemed to have been issued for no
consideration.

2.6 Adjustment for Combinations, etc. In case the outstanding Common Shares shall be
combined or consolidated, by reclassification or otherwise, into a lesser number of Common
Shares, the Exercise Price in effect immediately prior to such combination or consolidation
shall, concurrently with the effectiveness of such combination or consolidation, be
proportionately increased.

2.7 Minimum Adjustment of Exercise Price. If the amount of any adjustment of the Exercise
Price required pursuant to this Section 2 would be less than $0.00001, then such
amount shall be carried forward and adjustment shall be made with respect thereto at the
time of and together with any subsequent adjustment which, together with such amount and any
other amount or amounts so carried forward, shall aggregate at least $0.00001.

2.8 Shares Deemed Outstanding. For purposes of calculating adjustments (if any) to the
Exercise Price upon the issuance, sale or grant of Options or Convertible Securities, there
shall be deemed to be outstanding, immediately after giving effect to any such issuance,
sale or grant, the Common Shares issuable upon the exercise of such Options or conversion of
such Convertible Securities. In addition, for purposes of calculating adjustments to the
Exercise Price, effect shall be given to all antidilution provisions contained in any then
outstanding Options and Convertible Securities which cause an adjustment in the number of
Common Shares so issuable thereunder by virtue of the issuance of Common Shares, Options or
Convertible Securities and any such additional Common Shares so issuable as a result of such
antidilution provisions shall be deemed outstanding immediately after giving effect to any
such issuance, sale or grant.

2.9 Contest and Appraisal Rights. (a) If the holders of Rights representing a majority of
the Common Shares represented by the Rights at the time outstanding (the “Required
Interest”) shall, for any reason whatsoever, disagree with the Company’s determination of
the Current Market Price of the Common Shares (i.e., under circumstances where the VWAP is
determined by the Board of Trustees as provided in the definition of the term “VWAP”) or of
the fair market value of any property (or securities) given to the Company as consideration
for the issue or sale of Additional Common Shares, then such holders shall by notice to the
Company (an “Appraisal Notice”) given within thirty (30) days after the Company’s
determination elect to dispute such determination, and such dispute shall be resolved as set
forth in clause (b) of this Section 2.9.

(b) The Company shall, within thirty (30) days after an Appraisal Notice shall have
been given, engage an Appraiser to make an independent determination of the Current
Market Price for the Common Shares or of the fair market value of any property (or
securities) given to the Company as consideration for the issue or sale of
additional Common Shares, as the case may be (the “Appraiser’s Determination”). In
arriving at its determination, the Appraiser shall base any valuation upon (i) in
the case of the Current Market Price of the Common Shares, the fair market value of
the Company assuming that the Company were sold as a going concern, without regard
to the existence of any control block, the anticipated impact upon current market
prices of any such sale, the lack or depth of a market for the Common Shares, the
Rights or other securities of the Company, or any other factors concerning the
liquidity or marketability of the Common Shares, the Rights or other securities of
the Company, and (ii) in the case of the fair market value of any property (or
securities) given to the Company as consideration for the issue or sale of
Additional Common Shares, the fair market value of such property (or securities)
assuming that such property (or securities) were sold to an unaffiliated third party
in an arm’s-length transaction. The Appraiser’s Determination shall be final and
binding on the Company and the holders of the Rights. The costs of conducting an
appraisal shall be borne by the party whose assertion of the Current Market Price or
fair market value was the farthest from the final determination of the Current
Market Price or fair market value determined by the Appraiser.

3. CONSOLIDATION, MERGER, ETC.

3.1 Adjustments for Consolidation, Merger, Sale of Assets, Reorganizations, etc. In the
event the Company, on or after the Signing Date, (a) shall consolidate with or merge into
any other Person and shall not be the continuing or surviving corporation of such
consolidation or merger, or (b) shall permit any other Person to consolidate with or merge
into the Company and the Company shall be the continuing or surviving Person but, in
connection with such consolidation or merger, the Common Shares or Other Securities shall be
changed into or exchanged for stock or other securities of any other Person or cash or any
other property, or (c) shall transfer all or substantially all of its properties or assets
to any other Person, or (d) shall effect a capital reorganization or reclassification of the
Common Shares or Other Securities (other than a capital reorganization or reclassification
to the extent that such capital reorganization or reclassification results in the issuance
of Additional Common Shares for which adjustment in the Exercise Price is provided in
Section 2.2.1 hereof), then, and in the case of each such transaction, proper
provision shall be made so that, upon the basis and the terms and in the manner provided in
this Right, the Holder of this Right, upon the exercise hereof at any time after the
consummation of such transaction, shall be entitled to receive (at the aggregate Exercise
Price in effect at the time of such consummation for all Common Shares or Other Securities
issuable upon such exercise immediately prior to such consummation), in lieu of the Common
Shares or Other Securities issuable upon such exercise prior to such consummation, the
greatest amount of securities, cash or other property to which such Holder would actually
have been entitled as a shareholder upon such consummation if such Holder had exercised the
rights represented by this Right immediately prior thereto, subject to adjustments
(subsequent to such consummation) as nearly equivalent as possible to the adjustments
provided for in Sections 2 and 3 hereof.

3.2 Assumption of Obligations. The Company will not effect any of the transactions
described in clauses (a) through (d) of Section 3.1 hereof unless, at or prior to
the consummation thereof, each person (other than the Company) which may be required to
deliver any securities, cash or property upon the exercise of this Right as provided herein
shall assume, by written instrument delivered to, and reasonably satisfactory to, the Holder
of this Right, (a) the obligations of the Company under this Right (and if the Company shall
survive the consummation of such transaction, such assumption shall be in addition to, and
shall not release the Company from, any continuing obligations of the Company under this
Right), (b) the obligation to deliver to such Holder such securities, cash or property as
such Holder may be entitled to receive in accordance with the foregoing provisions of this
Section 3, and such Person shall have similarly delivered to such Holder an opinion
of counsel for such Person, which counsel and opinion shall be reasonably satisfactory to
such Holder, stating that this Right shall thereafter continue in full force and effect and
the terms hereof (including, without limitation, all of the provisions of this Section
3) shall be applicable to the securities, cash or property which such Person may be
required to deliver upon any exercise of this Right or the exercise of any rights pursuant
hereto. Notwithstanding the forgoing, this Section 3.2 shall not restrict the
Company from consummating a Change of Control, as contemplated by Section 11.

4. RESTRICTIONS ON TRANSFERS. This Right is subject to the restrictions on transfers set forth in
the Purchase Agreement.

5. NO DILUTION OR IMPAIRMENT. The Company shall not, by amendment of its Declaration of Trust or
through any consolidation, merger, reorganization, transfer of assets, dissolution, issue or sale
of securities or any other voluntary action, impermissibly avoid or seek to avoid the observance or
performance of any of the terms of this Right.

6. ACCOUNTANTS’ REPORT AS TO ADJUSTMENTS. In each case of any adjustment or readjustment in the
Common Shares (or Other Securities) represented by this Right, the Company, at its sole expense,
will promptly compute such adjustment or readjustment in accordance with the terms of this Right
and deliver to the Holder of this Right a certificate of the chief executive officer or chief
financial officer of the Company setting forth such computation and showing in reasonable detail
the method of calculation thereof and the facts upon which such adjustment or readjustment is
based, including a statement of (a) the consideration received or to be received by the Company for
any Additional Common Shares issued or sold or deemed to have been issued, (b) the number of Common
Shares outstanding or deemed to be outstanding, and (c) the Exercise Price in effect immediately
prior to such issue or sale and as adjusted and readjusted (if required by Section 2
hereof) on account thereof. The Company will also keep copies of all such certificates at its
office maintained pursuant to Section 10.2(a) hereof and will cause the same to be
available for inspection at such office during normal business hours by any Holder of a Right.

7. NOTICES OF CORPORATE ACTION. In the event of:

(a) any taking by the Company of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution, or any right to
subscribe for, purchase or otherwise acquire any shares of beneficial
interest of any class or any other securities or property, or to receive any
other right, or

(b) any capital reorganization of the Company, any reclassification or
recapitalization of the shares of beneficial interest of the Company, any
consolidation or merger involving the Company and any other Person or any
transfer of all or substantially all the assets of the Company to any other
Person, or

(c) any voluntary or involuntary dissolution, liquidation or winding-up of
the Company, or

(d) any issuance of any Common Shares, Convertible Security or Option by the
Company (other than (i) issuances or sales of Common Shares pursuant to
plans of the Company for reinvestment of dividends or interest payable on
securities of the Trust and investments in additional optional amounts in
Common Shares under those plans, (ii) issuances or sales to employees,
trustees, directors or non-affiliated consultants of the Company or its
subsidiaries and (iii) issuances from time to time under the Company’s ATM
program), or

(e) any Change of Control (as defined in the Purchase Agreement),

which has not been publicly reported by press release or on a current report on Form 8-K filed by
the Company with the SEC within four (4) business days, the Company will mail no later than the
fifth (5th) business day to each holder of a Right a notice specifying (i) the date or
expected date on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend, distribution or right, (ii)
the date or expected date on which any such reorganization, reclassification, recapitalization,
consolidation, merger, transfer, dissolution, liquidation, winding-up or Change of Control is to
take place, (iii) the time, if any such time is to be fixed, as of which the holders of record of
Common Shares (or Other Securities) shall be entitled to exchange their Common Shares (or Other
Securities) for the securities or other property deliverable upon such reorganization,
reclassification, recapitalization, consolidation, merger, transfer, dissolution, liquidation or
winding-up and a description in reasonable detail of the transaction and (iv) the date of such
issuance, together with a description of the security so issued and the consideration received by
the Company therefor. Notwithstanding the foregoing, the Company shall mail a notice of any Change
of Control to the holders of Rights upon the earlier of (i) the public announcement of the entry of
any agreement for a Change of Control and (ii) if the holder is bound by a confidentiality
agreement and restrictions on trading of securities of the Company based on non-public information,
within two (2) business days of the final approval of such Change of Control transaction by the
Board of Trustees.

8. CALL RIGHTS. From and after the second (2ND) anniversary of the Signing Date, the
Company may purchase all or any portion of this Right at the Call Redemption Price by delivery of a
written notice to the Holder (each, a “Call Right Notice”), which Call Right Notice shall specify
that portion of this Right that the Company shall redeem pursuant to this Section 8 (which
portion shall be determined by a number of Common Shares represented by this Right on the Call
Demand Date as specified by the Company in such Call Right Notice, which shall be a date no later
than thirty (30) days after the Call Right Notice is sent (the “Call Payment Date”). On the Call
Payment Date, the Company shall pay the Call Redemption Price payable to such Holder at the
Company’s option, either (i) in cash, by wire transfer of immediately available funds, (ii) by
executing and delivering to the Holder of this Right a promissory note in the form attached hereto
as Exhibit B, having a principal amount equal to the Call Redemption Price payable to the
Holder, or (iii) any combination of cash or promissory note, and if the election made pursuant to
this Section 8 is only with respect to a portion of this Right, the Company shall issue to
the Holder a new Right or Rights of like tenor, dated the date hereof and calling in the aggregate
on the face or faces thereof for the number of Shares equal to the number of such Shares called for
on the face of this Right minus the number of Common Shares representing that portion of the Right
being redeemed, as set forth in the applicable Call Right Notice. Holders of Rights shall
surrender this Right (or an affidavit of loss in form and substance reasonably satisfactory to the
Company). Assuming compliance by the Company with its obligation to pay hereunder on the Call
Payment Date, the right to exercise this right for Shares that are being redeemed hereunder
pursuant to this Section 8 shall terminate, and this Right shall represent (i) the right of
the Holder to receive the applicable Call Redemption Price from the Company in accordance with this
Section 8 and (ii) in the case of a redemption only with respect to a portion of this
Right, a new Right or Rights for the remaining portion of this Right as described in this
Section 8.

9. PUT RIGHTS. From and after the earlier to occur of (i) the fifth anniversary of the Signing
Date or (ii) the occurrence of a Mandatory Redemption Triggering Event (as defined in the Series D
Preferred Shares Articles Supplementary), the Holder of this Right may demand that the Company
purchase all or any portion of this Right (without regard to any limitations on exercise hereof, at
the Put Redemption Price by delivery of a written notice to the Company (each, a “Put Right
Notice”) and surrender of this Right (or an affidavit of loss in form and substance reasonably
satisfactory to the Company) to the Company at its office maintained pursuant to Section
10.2(a) hereof (the “Put Demand Date”), which Put Right Notice shall specify that portion of
this Right that the Company shall redeem pursuant to this Section 9 (which portion shall be
determined by a number of Common Shares otherwise represented by this Right on the Put Demand Date
as specified by the Holder in such Put Right Notice). The Company shall as soon as reasonably
practicable, but in any event no later than ten (10) days after the Put Demand Date (the “Put
Payment Date”), pay the Put Redemption Price payable to such Holder at the Company’s option, either
(i) in cash, by wire transfer of immediately available funds, (ii) where such put is triggered by
an event set forth under clauses (iv)-(vi) of the definition of Mandatory Redemption Triggering
Event, by executing and delivering to the Holder of this Right a promissory note in the form
attached hereto as Exhibit B, having a principal amount equal to the Put Redemption Price
payable to the Holder, or (iii) any combination of clause (i) and, if applicable, clause (ii) and
if the election made pursuant to this Section 9 is only with respect to a portion of this
Right, the Company shall issue to the Holder a new Right or Rights of like tenor, dated the date
hereof and calling in the aggregate on the face or faces thereof for the number of Right Shares
equal to the number of such Right Shares called for on the face of this Right minus the number of
Common Shares representing that portion of the Right being redeemed, as set forth in the applicable
Put Right Notice.

Upon surrender of this Right (or an affidavit of loss in form and substance reasonably satisfactory
to the Company) in accordance with the procedures set forth in this Section 9, the right to
purchase Common Shares represented by that portion of this Right that is being redeemed pursuant to
this Section 9 shall terminate, and this Right shall represent (i) the right of the Holder
to receive the applicable Put Redemption Price from the Company in accordance with this Section
9 and (ii) in case the demand for redemption by the Holder is only with respect to a portion of
this Right, a new Right or Rights for the remaining portion of this Right as described in this
Section 9.

10. OWNERSHIP, TRANSFER AND SUBSTITUTION OF RIGHTS.

10.1 Ownership of Rights. The Company may treat the person in whose name any Right is
registered on the register kept at the office of the Company maintained pursuant to
Section 10.2(a) hereof as the owner and holder thereof for all purposes,
notwithstanding any notice to the contrary. A Right may be exercised by a new holder
without a new Right first having been issued.

10.2 Office; Transfer and Exchange of Rights.

(a) The Company shall maintain an office (which may be an agency maintained
at a bank) where notices, presentations and demands in respect of this Right
may be made upon it. Such office may be maintained at 2929 Arch Street,
17th Floor, Philadelphia, PA 19104, Attention: Chief Financial
Officer, until such time as the Company shall notify the holders of the
Rights of any change of location of such office.

(b) The Company shall cause to be kept at its office maintained pursuant to
Section 10.2(a) hereof a register for the registration and transfer
of the Rights. The names and addresses of holders of Rights, the transfer
thereof and the names and addresses of transferees of Rights shall be
registered in such register. The Person in whose names any Right shall be
so registered shall be deemed and treated as the owner and Holder thereof
for all purposes of this Right, and the Company shall not be affected by any
notice or knowledge to the contrary.

(c) Upon the surrender of any Right (or an affidavit of loss in form and
substance reasonably satisfactory to the Company), properly endorsed and
subject to Section 4 hereof, for registration of transfer or for
exchange at the office of the Company maintained pursuant to Section
10.2(a) hereof, the Company, at its expense, will promptly (and in any
event within five Trading Days) execute and deliver to or upon the order of
the holder thereof a new Right or Rights of like tenor, in the name of such
holder or as such holder (upon payment by such holder of any applicable
transfer taxes) may direct, calling in the aggregate on the face or faces
therefor for the number of Common Shares called for on the face or faces of
the Right or Rights so surrendered.

10.3 Replacement of Rights. Upon receipt of evidence satisfactory to the Company of the
loss, theft, destruction or mutilation of any Right and, in the case of any such loss, theft
or destruction of any Right held by a Person other than the initial holder hereof or any
institutional investor, upon delivery of indemnity satisfactory to the Company in form and
amount or, in the case of any such mutilation, upon surrender of such Right for cancellation
at the office of the Company maintained pursuant to Section 10.2(a) hereof, the
Company, at its sole expense, will execute and deliver, in lieu thereof, a new Right of like
tenor and dated the date hereof.

11. TERMINATION. This Right shall automatically terminate without any action on the part of the
Holder thereof or the Company on the earlier of (i) the fifteenth anniversary of the Signing Date
unless exercised on or prior to such date or (ii) (x) thirty (30) days following the receipt of
notice by the Holder of a Change of Control pursuant to Section 7 or (y) if later, the date
the Change of Control occurs, in each case, unless exercised prior to the consummation of such
Change of Control. Upon termination of this Right, all rights and obligations of the parties
hereunder shall terminate and this Right shall have no futher force and effect; provided,
however, that the Holder’s righs pursuant to Section 9 hereof shall survive any
such termination pursuant to clause (ii) of this Section 12 for at least thirty (30) days
following the occurrence of such Change of Control.

12. DEFINITIONS. As used herein, unless the context otherwise requires, the following terms have
the following respective meanings:

“Additional Common Shares” means all of the Common Shares (including treasury shares) issued
or sold (or, pursuant to Section 2.3 or 2.4 hereof, deemed to be issued) by the
Company after the Signing Date, whether or not subsequently reacquired or retired by the Company,
other than the Common Shares for which a Right has been exercised.

“Adjusted Dividend Amount” shall have the meaning given to such term in Section 2.2.2
hereof.

“Annual Dividend Period” shall have the meaning given to such term in Section 2.2.2 hereof.

“Appraisal Notice” shall have the meaning given to such term in Section 2.9(a) hereof.

“Appraiser” an independent nationally recognized investment bank or other qualified financial
institution acceptable to the Company and the Required Interest.

“Appraiser’s Determination” shall have the meaning given to such term in
Section 2.9(a) hereof.

“Board of Trustees” shall mean the board of trustees of the Company.

“Call Payment Date” shall have the meaning given to such term in Section 8 hereof.

“Call Redemption Price” means the aggregate amount determined by multiplying (a) the aggregate
number of Common Shares representing that portion of the Right to be redeemed, as specified in the
Call Right Notice delivered pursuant to Section 8 hereof and (b) the applicable price per
Common Share determined by reference to the following table (provided that, in determining the
aggregate number of Common Shares representing that portion of this Right to be redeemed pursuant
to clause (a) above, no adjustments shall be made thereto pursuant to Section 2):

	 	 	 	 	 
	If the Redemption Date is:	 	Applicable Price
	On or after the second anniversary of the Signing Date and
prior to the sixth anniversary of the Signing Date:
	 	$	5.00	 
	 
	 	 	 	 
	On or after the sixth anniversary of the Signing Date and
prior to the seventh anniversary of the Signing Date:
	 	$	6.00	 
	 
	 	 	 	 
	On or after the seventh anniversary of the Signing Date:
	 	$	7.00	 
	 
	 	 	 	 

“Call Right Notice” shall have the meaning given to such term in Section 8 hereof.

“Change of Control” shall have the meaning given to such term in the Series D Preferred Shares
Articles Supplementary.

“Closing Date” shall have the meaning given to such term in the Purchase Agreement.

“Common Shares” shall have the meaning given to such term in the introduction to this Right,
such term to include any shares of beneficial interest into which such Common Shares shall have
been changed or any shares of beneficial interest resulting from any reclassification of such
Common Shares, and all other shares of beneficial interest of any class or classes (however
designated) of the Company the holders of which have the right, without limitation as to amount,
either to all or to a share of the balance of current dividends and liquidating dividends after the
payment of dividends and distributions on any shares entitled to preference.

“Company” shall have the meaning given to such term in the introduction to this Right, such
term to include any Person which shall succeed to or assume the obligations of the Company in
compliance with Section 3 hereof.

“Convertible Securities” means any evidences of indebtedness (including the Company’s 7.0%
senior convertible notes), shares of beneficial interest (other than Common Shares) or other
securities directly or indirectly convertible into or exchangeable for, and any instrument the
value of which is linked to, Additional Common Shares.

“Current Market Price” means, on any date specified herein, the arithmetic average of the VWAP
of a Common Share for the five (5) consecutive Trading Days ending on the date immediately
preceding such date, except that (i) Common Shares, Convertible Securities and/or Options sold to a
dealer or underwriter or through an underwritten public offering (whether on a firm commitment or
best efforts basis) at a price equal to or greater than the Exercise Price and (ii) Common Shares,
Convertible Securities and/or Options sold in “at-the-market offerings” within the meaning of Rule
415(a)(4) at a price equal to or greater than the Exercise Price shall, in each case, conclusively
be deemed to have been sold at the Current Market Price.

“Determination Date” shall have the meaning given to such term in Section 2.2.3
hereof.

“Exercise Date” shall have the meaning given to such term in Section 1.1.2 hereof.

“Exercise Notice” shall have the meaning given to such term in Section 1.1.1 hereof.

“Exercise Price” shall have the meaning given to such term in the introduction of this Right.

“Holder” shall mean the registered holder hereof or its permitted assigns.

“Initial Dividend Amount” shall have the meaning given to such term in Section 2.2.2
hereof.

“Initial Exercise Price” shall have the meaning given to such term in the introduction to this
Right.

“Market Price” shall have the meaning given to such term in Section 2.2.2 hereof.

“Options” means rights, options or warrants to subscribe for, purchase or otherwise acquire
either Additional Common Shares or Convertible Securities.

“Ordinary Dividend Amount” shall have the meaning set forth in Section 2.2.2 hereof.

“Other Securities” means any shares of beneficial interest or other equity units (other than
the Common Shares) and other securities of the Company or any other Person (corporate or otherwise)
(other than any promissory notes or similar Indebtedness) which may be represented by these Rights,
in lieu of or in addition to Common Shares and which at any time shall have been represented by
these Rights in exchange for or in replacement of Common Shares or Other Securities pursuant to
Section 3 hereof or otherwise.

“Person” means an individual, a partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated organization or any
federal, state, county or municipal governmental or quasi-governmental agency, department,
commission, board, bureau, instrumentality or similar entity, foreign or domestic, having
jurisdiction over either the Company or any holder of a Right.

“Principal Market” means the New York Stock Exchange.

“Purchase Agreement” shall have the meaning given to such term in the introduction to this
Right.

“Purchaser” shall have the meaning given to such term in the introduction to this Right.

“Put Demand Date” shall have the meaning given to such term in Section 9 hereof.

“Put Payment Date” shall have the meaning given to such term in Section 9 hereof.

“Put Redemption Price” means the aggregate amount determined by multiplying (a) the aggregate
number of Common Shares representing that portion of this Right to be redeemed, as specified in the
Put Right Notice delivered pursuant to Section 9 hereof and (b) the applicable price per
Common Share determined by reference to the following table (provided that, in determining the
aggregate number of Common Shares representing that portion of this Right to be redeemed pursuant
to clause (a) above, no adjustments shall be made thereto pursuant to Section 2):

	 	 	 	 	 
	If the Redemption Date is:	 	Applicable Price
	Prior to the sixth anniversary of the Signing Date:
	 	$	1.23	 
	 
	 	 	 	 
	On or after the sixth anniversary of the Signing Date and
prior to the seventh anniversary of the Signing Date:
	 	$	1.60	 
	 
	 	 	 	 
	On or after the seventh anniversary of the Signing Date:
	 	$	1.99	 
	 
	 	 	 	 

“Put Right Notice” shall have the meaning given to such term in Section 9 hereof.

“Registration Rights Agreement” means that certain Registration Rights Agreement by and
between the Company and the Purchaser dated as of the Signing Date as from time to time in effect.

“Repurchase” shall have the meaning given to such term in Section 2.2.3 hereof.

“Repurchase Premium” shall have the meaning given to such term in Section 2.2.3
hereof.

“Required Interest” shall have the meaning given to such term in Section 2.9(a)
hereof.

“Right” shall have the meaning given to such term in the introduction of this Right.

“SEC” means the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

“Securities Act” means the Securities Act of 1933, or any similar federal statute, and the
rules and regulations of the SEC thereunder, all as the same shall be amended and in effect at the
time.

“Series D Preferred Shares” means the Company’s Series D Cumulative Redeemable Preferred
Shares of Beneficial Interest, par value $0.01 per share.

“Series D Preferred Shares Articles Supplementary” means the Articles Supplementary to the
Company’s Declaration of Trust, as amended) designating and classifying the Series D Preferred
Shares.

“Settlement Amount” shall have the meaning given to such term in Section 1.1.1 hereof.

“Share” shall have the meaning given to such term in the introduction of this Right.

“Signing Date” shall have the meaning given to such term in the introduction to this Right.

“Trading Day” means any day on which the Common Shares are traded on the Principal Market, or,
if the Principal Market is not the principal trading market for the Common Shares, then on the
principal securities exchange or securities market on which the Common Shares are then traded,
provided that “Trading Day” shall not include any day on which the Common Shares are
scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Shares are suspended from trading during the final hour of trading on such exchange or market (or
if such exchange or market does not designate in advance the closing time of trading on such
exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

“VWAP” means, for any security as of any date, the dollar volume-weighted average price for
such security on the Principal Market during the period beginning at 9:30:01 a.m., New York time
(or such other time as the Principal Market publicly announces is the official open of trading),
and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market publicly
announces is the official close of trading), as reported by Bloomberg, L.P. through its “Volume at
Price” function or, if the foregoing does not apply, the dollar volume-weighted average price of
such security in the over-the-counter market on the electronic bulletin board for such security
during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal
Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York
City Time (or such other time as the Principal Market publicly announces is the official close of
trading), as reported by Bloomberg, L.P., or, if no dollar volume-weighted average price is
reported for such security by Bloomberg, L.P. for such hours, the average of the highest closing
bid price and the lowest closing ask price of any of the market makers for such security as
reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
If the VWAP cannot be calculated for a security on a particular date on any of the foregoing bases,
the VWAP of such security shall be the fair market value of such security on such date as
determined by the Board of Trustees in good faith. If the holders of the Required Interest
disagree for any reason with the Board of Trustee’s determination of the VWAP in accordance with
the previous sentence, then such dispute shall be resolved pursuant to Section 2.9 with the
term “VWAP” being substituted for the term “Current Market Price.” All such determinations shall
be appropriately adjusted for any share splits, share dividends, combinations, recapitalizations
and the like during the applicable calculation period.

13. REMEDIES. Each of the Company and the Holder of this Right acknowledges that the remedies at
law available to the Company or the Holder of this Right, as applicable in the event of any default
or threatened default by the other in the performance of or compliance with any of the terms of
this Right are not and will not be adequate and that, to the fullest extent permitted, such terms
may be specifically enforced by a decree for the specific performance of any agreement contained
herein or by an injunction against a violation of any of the terms hereof or otherwise, and each of
the Company and the Holder of this Right hereby agrees to waive any requirement for the securing or
posting of any bond in connection with such remedy.

14. TIME IS OF THE ESSENCE. With regard to all dates and time periods set forth or referred to in
this Right, time is of the essence.

15. NO RIGHTS OR LIABILITIES AS SHAREHOLDER. Nothing contained in this Right shall be construed as
conferring upon the Holder hereof any rights as a shareholder of the Company or as imposing any
obligation on such Holder to purchase any securities or as imposing any liabilities on such Holder
as a shareholder of the Company, whether such obligation or liabilities are asserted by the Company
or by creditors of the Company.

16. SPECIFIC ENFORCEMENT; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL.

16.1 Each of the Company and the Holder of this Right agrees that irreparable damage would
occur to the other in the event that any of the provisions of this Right were not performed
in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the Company or the Holder of this Right, as applicable, shall be entitled to an
injunction or injunctions to prevent or cure breaches of the provisions of this Right and to
enforce specifically the terms and provisions hereof and thereof this being in addition to
any other remedy to which the Company or the Holder of this Right, as applicable, may be
entitled by law or equity.

16.2 The Company and Holder (i) hereby irrevocably submit to the exclusive jurisdiction of
the United States District Court and other courts of the United States sitting in New York
City in the State of New York for the purposes of any suit, action or proceeding arising out
of or relating to this Right and (ii) hereby waive, and agree not to assert in any such
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such court, that the suit, action or proceeding is brought in an inconvenient forum or
that the venue of the suit, action or proceeding is improper. The Company and Holder
consent to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this Right and agree
that such service shall constitute good and sufficient service of process and notice
thereof. Nothing in this Section 16.2 shall affect or limit any right to serve
process in any other manner permitted by law

16.3 EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS RIGHT, THE RELATED DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH
PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF ANY LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS
CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND
(D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE RELATED DOCUMENTS, BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 16.

17. NOTICES. Any notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand delivery or facsimile
(with facsimile machine confirmation of delivery received) at the address or number designated
below (if delivered on a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other than on a business
day during normal business hours where such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first occur. The address for such
communications shall be:

	 	 	 
	If to the Company:
	 	RAIT Financial Trust

2929 Arch Street

17th Floor

Philadelphia, PA 19104

Telephone Number: (215) 243-9000

Fax: (215) 405-2945

Attention: Chief Financial Officer

	With copies to:
	 	Pepper Hamilton LLP

3000 Two Logan Square

Philadelphia, Pennsylvania 19103-2799

Telephone Number: (215) 981-4563

Fax: (215) 981-4750

Attention: Michael H. Friedman, Esq.

	If to the Holder:
	 	ARS VI Investor I, LLC

c/o Almanac Realty Investors, LLC

1251 Avenue of the Americas

New York, NY 10020

Telephone Number: (212) 403-3511

Fax: (212) 403-3520

Attention: Andrew M. Silberstein

	With copies to:
	 	Proskauer Rose LLP

Eleven Times Square

New York, New York 10036-8299

Telephone Number: (212) 969-3210

Fax: (212) 969-2900

Attention: Arnold S. Jacobs, Esq.

Either party hereto may from time to time change its address for notices by giving at least 10 days
advance written notice of such changed address to the other parties hereto.

18. WAIVERS. No waiver by any party of any default with respect to any provision, condition or
requirement of this Right shall be deemed to be a continuing waiver in the future or a waiver of
any other provisions, condition or requirement hereof nor shall any delay or omission of any party
to exercise any right hereunder in any manner impair the exercise of any such right accruing to it
thereafter. This Right and any term hereof may be changed, waived, discharged or terminated only
by an instrument in writing signed by the Company and the Required Interest; provided however that
no such change, waiver, discharge or termination that would treat the Holder of this Right in a
discriminatory manner may be made without the prior written consent of the Holder of this Right.

19. HEADINGS. The article, section and subsection headings in this Right are for convenience only
and shall not constitute a part of this Right for any other purpose and shall not be deemed to
limit or affect any of the provisions hereof.

20. GOVERNING LAW. This Right shall be governed by and construed in accordance with the internal
procedural and substantive laws of the State of New York, without giving effect to the choice of
law provisions of such state that would cause the application of the laws of any other
jurisdiction.

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

[SIGNATURE PAGE FOLLOWS]

	 	 	 	RAIT FINANCIAL TRUST

	 	 	 	By:

Name:

Title:

EXHIBIT A

FORM OF EXERCISE NOTICE

[To be executed only upon exercise of Right]

To RAIT FINANCIAL TRUST

The undersigned registered Holder of the within Right hereby irrevocably exercises such Right
for       4 Common Shares.

	 	 	Dated:

(Signature of Holder)

(Street Address)

(City) (State) (Zip Code)

EXHIBIT B

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR AN EXEMPTION THEREFROM.

PROMISSORY NOTE

$[      ] [DATE]

FOR VALUE RECEIVED, RAIT Financial Trust, a Maryland real estate investment trust (the
“Company”), promises to pay to the order of [      ] (“Holder”), the principal amount of
[      ] ($[      ]) and interest on the outstanding principal amount as provided
below.

This note (this “Note”) is being issued pursuant to one of the Common Share Appreciation
Rights issued by the Company (the “SARs”) pursuant to the Securities Purchase Agreement, dated as
of October 1, 2012, by and among the Company, RAIT Partnership, L.P., Taberna Realty Finance Trust,
RAIT Asset Holdings IV, LLC and ARS VI Investor I, LLC (the “Purchase Agreement”). Capitalized
terms not otherwise defined herein shall have the meanings provided in the Purchase Agreement.

The terms and conditions of this Note are as follows:

1. This Note shall accrue interest (calculated on the basis of a 360-day year of 30-day
months, computed annually) on the unpaid principal amount of this Note at a rate of twelve
and one half percent (12.5%) per annum (the “Interest Rate”), payable quarterly in arrears
on March 31, June 30, September 30 and December 31 of each year until such unpaid principal
is paid or prepaid in cash in full.

2. The principal amount of this Note and all accrued and unpaid interest thereon shall be
due on [      ]5 (the “Maturity Date”). On the Maturity Date, the Company
shall pay to Holder all principal and accrued but unpaid interest thereon.

3. Each payment upon this Note shall be made at [      ] or any other place that Holder may
direct in writing.

4. The Company, at its option, may make prepayments of the principal of, and the interest
on, this Note in whole or in part (in minimum increments of $1,000,000, or if less, the
remaining principal amount of the Note), at any time without premium or penalty, but with
accrued interest to the date of such prepayment applicable to the principal amount of the
Note being prepaid.

5. Each of the following shall constitute an “Event of Default” under this Note:

a. The occurrence of a Change of Control;

b. the Company shall, pursuant to or within the meaning of the United States
Bankruptcy Code or any other foreign, federal or state law relating to insolvency or
relief of debtors (a “Bankruptcy Law”) (i) commence a voluntary case or proceeding,
(ii) consent to the entry of an order for relief against it in an involuntary case,
(iii) consent to the appointment of a trustee, receiver, assignee, liquidator or
similar official or (iv) make an assignment for the benefit of its creditors;

c. a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (i) is for relief against the Company in an involuntary case, (ii) appoints
a trustee, receiver, assignee, liquidator or similar official for the Company or
substantially all of the Company’s properties or (iii) orders the liquidation of the
Company, and in each case, the order or decree is not dismissed within 90 days;

d. the Company fails to pay when due any principal or interest under this Note or
any other note issued pursuant to the Warrants, the Common Share Appreciation Rights
or the Articles Supplementary, and such failure continues unremedied for a period of
ten (10) days; or

e. the occurrence of a default or event of default and the continuation thereof
under the terms of any agreement, contract, note or other instrument to which any
Issuer Party or any of their respective Subsidiaries is a party which has resulted
in the acceleration of in excess of $25.0 million in Recourse Indebtedness and which
acceleration has not been rescinded or cured and has not been stayed or restricted
by judicial order or process and such occurrence and continuation continues for a
period of two (2) business days after Holder’s delivery of written notice to the
Company of such occurrence and continuation.

Upon the occurrence of any Event of Default specified in clauses (a) through (c)
above after the issuance of this Note and separate from the event that gave rise to
the issuance of this Note, all amounts owing with respect to this Note shall become
immediately due and payable to Holder automatically and without any requirement of
notice from Holder. Upon the occurrence of an Event of Default specified in clauses
(d) through (e) above, Holder may declare all amounts owing with respect to this
Note and any other note issued to the Holder pursuant to the Warrants, the Common
Share Appreciation Rights or Articles Supplementary to be, and they shall thereupon
forthwith become, immediately due and without presentment, demand, protest or other
notice of any kind.

6. Nothing in this Note shall require the Company to pay interest at a rate in excess of the
maximum rate permitted by applicable law and the interest rate otherwise applicable to this
Note (including any default rate of interest) shall be reduced, if necessary, to conform to
such maximum rate.

7. The Company waives demand for payment, presentment, notice of dishonor and protest of
this Note.

8. No waiver by any party of any default with respect to any provision, condition or
requirement of this Note shall be deemed to be a continuing waiver in the future or a waiver
of any other provisions, condition or requirement hereof nor shall any delay or omission of
any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter. No provision of this Note may be waived other than in a
written instrument signed by the party against whom enforcement of such waiver is sought.

9. Holder may sell or assign, or grant participations in, all or a portion of, its interest
in this Note without the prior written consent of the Company (the “Note Interest”)
and, in connection therewith, may make available to any prospective purchaser, assignee or
participant any information relative to the Company in his possession. The Holder shall
promptly notify the Company of any such sale, assignment or participation grant. The
Company may not assign any of its rights hereunder without the prior written consent of
Holder.

10. This Note and any term hereof may be changed, discharged or terminated only by an
instrument in writing signed by the Company and the Holder. If any term or provision of
this Note shall be held invalid, illegal or unenforceable, the validity of all other terms
and provisions hereof shall in no way be affected thereby. The parties hereby irrevocably
submit to the exclusive jurisdiction of the United States District Court and other courts of
the United States sitting in New York City in the State of New York for the purposes of any
suit, action or proceeding arising out of or relating to this Note. This Note shall be
governed by and construed in accordance with the internal procedural and substantive laws of
the State of New York, without giving effect to the choice of law provisions of such state
that would cause the application of the laws of any other jurisdiction.

IN WITNESS WHEREOF, the undersigned has executed this Note on the day and year first above
written.

RAIT FINANCIAL TRUST

	 	 	 
	By:

Name:

	 	     

	Title:

	 	

Acknowledged and agreed to by:

[HOLDER]

By:      

Name:

Title:

	4	 	Insert here the number of shares called for
on the face of this Right (or, in the case of a partial exercise, the portion
thereof as to which this Right is being exercised), in either case without
making any adjustment pursuant to the adjustment provisions of the Right. In
the case of a partial exercise, a new Right or Rights will be issued and
delivered, representing the unexercised portion of the Right, to the holder
surrendering the Right.

5 (a) The maturity date will be the
third (3rd) anniversary of the applicable Exercise Date or Put Date.
 (b) For the exercise of a call right on the SARS, the maturity date will be
one (1) year from the date of the Call Right Notice.

4

Schedule A

	 	(v)	 	16,452,072 Common Shares reserved for issuance under the Company’s 7.00% Convertible
Senior Notes due 2031.

	 	(vi)	 	47,812 Common Shares reserved for issuance under the Company’s 6.875% Convertible
Senior Notes due 2027.

	 	(vii)	 	Warrants (as defined in the Purchase Agreement) to purchase 9,931,000 Common Shares

 

5

EXHIBIT G

FORM OF TRUSTEE INDEMNIFICATION AGREEMENT

INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of October 17, 2012 by and among RAIT
Financial Trust (“RAIT”), a Maryland real estate investment trust, RAIT General, Inc. (“RGI”), a
Maryland corporation, RAIT Limited, Inc. (“RLI”), a Maryland corporation (RAIT, RGI and RLI are
herein sometimes collectively called “Indemnitors” or individually called an “Indemnitor”), RAIT
Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”) and the undersigned
individual (the “Indemnitee”).

W I T N E S S E T H:

WHEREAS, the Indemnitee has agreed to serve as a trustee (“Trustee”), director (“Director”)
and/or officer (“Officer”) of one or more of RAIT, RGI or RLI; and

WHEREAS, Section 2-418 of the General Corporation Law of the State of Maryland (as applicable
to Maryland real estate investment trusts pursuant to Section 8-301(15), Title 8, of the Maryland
Code) empowers real estate investment trusts and corporations to indemnify any person who is or was
serving as a trustee, director, officer, employee or agent of the trust or corporation or any
person who, while a trustee, director, officer, employee or agent of the trust or corporation, is
or was serving at its request as a director, officer, partner, trustee, employee or agent of
another corporation, partnership, limited liability company, association, joint venture, trust or
other enterprise (which, for purposes of this Agreement shall include, without limitation, employee
benefit plans and administrative committees thereof); and

WHEREAS, said Section 2-418 and the Bylaws of each of RAIT, RGI and RLI specify that the
indemnification set forth in said Section 2-418 and in the Bylaws, respectively, shall not be
deemed to limit the right of each of RAIT, RGI and RLI to indemnify any person against any
liability and expenses to the fullest extent permitted by law, nor shall it be deemed exclusive of
any other rights to which those seeking indemnification may be entitled; and

WHEREAS, RGI and RLI are the general partner and initial limited partner, respectively, of the
Operating Partnership, and are wholly-owned subsidiaries of RAIT; and

WHEREAS, RAIT has contributed all or substantially all of the proceeds of an offering of its
common shares of beneficial interest to RGI and RLI, and RGI and RLI have contributed such proceeds
to the Operating Partnership.

NOW, THEREFORE, in order to induce the Indemnitee to serve as a Trustee, Director and/or
Officer of one or more of RAIT, RGI or RLI, and in consideration of his continued service, each of
RAIT, RGI and RLI (to the extent the Indemnitee is a Trustee, Director or Officer of it, or serving
as a director, officer, partner, trustee, employee or agent of any corporation, partnership,
limited liability company, association, joint venture, trust or other enterprise) hereby agrees to
indemnify the Indemnitee as follows:

1. Indemnity. Each Indemnitor (to the extent the Indemnitee is an Officer, Director
or Trustee of it, or serving as a director, officer, partner, trustee, employee or agent of any
corporation, partnership, limited liability company, association, joint venture, trust or other
enterprise) will indemnify, save and hold harmless the Indemnitee, his executors, administrators or
assigns, or, if the Indemnitee is deceased, his estate, spouse, heirs, executors and
administrators, for any Expenses or Fines (as defined in Section 2 hereof) which the Indemnitee is
or becomes legally obligated to pay in connection with any Proceeding. As used herein, the term
“Proceeding” shall mean any threatened, pending or completed claim, action, suit or proceeding,
including any appeals, whether brought by or in the right of the Indemnitor or otherwise and
whether of a civil, criminal, administrative or investigative nature, in which the Indemnitee may
be or may have been involved as a party or otherwise, (i) by reason of the fact that the Indemnitee
is or was a Trustee, Director or Officer of the Indemnitor, (ii) by reason of any actual or alleged
error or misstatement or misleading statement made or suffered by the Indemnitee, (iii) by reason
of any action taken by the Indemnitee or of any inaction on the Indemnitee’s part while acting as
such Trustee, Director or Officer, or (iv) by reason of the fact that the Indemnitee was serving as
a director, officer, partner, trustee, employee or agent of another corporation, partnership,
limited liability company, association, joint venture, trust or other enterprise; provided that in
each such case the Indemnitee acted in good faith within the course and scope of the Indemnitee’s
duties and in a manner which the Indemnitee reasonably believed to be in or not opposed to the best
interests of the Indemnitor, and, in the case of a criminal proceeding, in addition the Indemnitee
had no reasonable cause to believe that his act or omission was unlawful.

2. Expenses. As used in this Agreement, the term “Expenses” shall mean all
reasonable expenses incurred by the Indemnitee in connection with the Proceeding which shall
include, without limitation, damages, judgments, fines, penalties, settlements, costs, attorneys’
fees, disbursements and costs of attachment or similar bonds, investigations, and any such expenses
of establishing a right to indemnification under this Agreement (the “Expenses”). “Fines” shall
include, without limitation, any excise tax assessed with respect to any employee benefit plan. Any
such Expenses may be paid by the Company in advance of the final disposition of such action, suit
or proceeding.

3. Exclusions. The Indemnitor shall not be liable under this Agreement to pay any
Expenses or Fines in connection with any claim made against the Indemnitee:

(a) to the extent that payment is actually made to the Indemnitee under a valid, enforceable
and collectible insurance policy obtained by an Indemnitor;

(b) in connection with a judicial action by or in the right of the Indemnitor, in respect of
any claim, issue or matter as to which the Indemnitee shall have been adjudged to be liable to the
Indemnitor, unless and only to the extent that any court in which such action was brought shall
determine upon application that, despite the adjudication of liability but in view of all the
circumstances of the case, the Indemnitee is fairly and reasonably entitled to indemnity for such
Expenses or Fines as such court shall deem proper;

(c) if it is established by final judgment in a court of law or other final adjudication, that
(i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding
and was committed in bad faith or was the result of active and deliberate dishonesty, (ii) the
Indemnitee actually received an improper personal benefit in money, property or services, or (iii)
in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act
or omission was unlawful;

(d) if it is proved by final judgment in a court of law or other final adjudication to have
been based upon or attributable to the Indemnitee having gained any personal profit or advantage to
which he was not legally entitled;

(e) for a disgorgement of profits made from the purchase and sale by the Indemnitee of
securities pursuant to Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto
or similar provisions of any state statutory law or common law; or

(f) for any judgment, fine or penalty which the Indemnitor is prohibited by applicable law
from paying as indemnity or for any other reason.

Notwithstanding anything contained herein to the contrary, the Indemnitors acknowledge that
Indemnitee may have certain rights to indemnification and/or insurance provided by Almanac Realty
Investors, LLC or an affiliate thereof (the “Almanac Parties”) which the Indemnitors,
Indemnitee and Almanac Parties intend to be secondary to the primary obligations of the Indemnitors
to indemnify Indemnitee as provided herein, with the Indemnitors’ acknowledgement and agreement to
the foregoing being a material condition to Indemnitee’s willingness to serve as a Trustee. In
furtherance of the foregoing, the Indemnitors hereby agree (i) that they are collectively the
indemnitor of first resort (i.e., their obligations to Indemnitee are primary and any obligation of
the Almanac Parties to advance expenses or to provide indemnification for the same expenses or
liabilities incurred by Indemnitee are secondary), (ii) that they shall be required to advance the
full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all
Expenses and Fines as required by the terms of this Agreement and the organizational documents of
the Indemnitors, without regard to any rights Indemnitee may have against the Almanac Parties and
(iii) that it irrevocably waives, relinquishes and releases the Almanac Parties from any and all
claims against the Almanac Parties for contribution, subrogation or any other recovery of any kind
in respect of the Almanac Parties or the Almanac Parties’ insurance policies for any matter for
which the Indemnitors have responsibility hereunder. The Indemnitors further agrees that no
advancement or payment by the Almanac Parties on behalf of Indemnitee with respect to any claim for
which Indemnitee has sought indemnification from the Indemnitors shall affect the foregoing and the
Almanac Parties shall have a right of contribution and/or be subrogated to the extent of such
advancement or payment to all of the rights of recovery of Indemnitee against the Indenitors. The
Indemnitors and Indemnitee agree that the Almanac Parties are express third party beneficiaries of
this paragraph.

4. Termination of the Proceeding.

(a) The termination of any Proceeding which is covered by this Agreement by judgment, order or
settlement, shall not of itself create a presumption for the purposes of this Agreement that the
Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not
opposed to the best interests of the Indemnitor and, with respect to any criminal action or
proceeding, had reasonable cause to believe that his conduct was unlawful.

(b) The termination of any proceeding by conviction, or by a plea of nolo contendere or its
equivalent, or an entry of an order of probation prior to judgment, creates a rebuttable
presumption that the Indemnitee did not meet the requisite standard of conduct for good faith or
otherwise.

5. Enforcement. If a claim or request under this Agreement is not paid by the
Indemnitor, or on its behalf, within thirty (30) days after a written claim or request has been
received by the Indemnitor, the Indemnitee may at any time thereafter bring suit against the
Indemnitor to recover the unpaid amount of the claim or request, and if successful in whole or in
part, the Indemnitee shall be entitled to be paid all of the Expenses of prosecuting such suit. The
burden of proving that the Indemnitee is not entitled to indemnification for any reason shall be
upon the Indemnitor.

6. Recoupment. The Indemnitor shall have the right to recoup from the Indemnitee the
amount of any item or items of Expenses theretofore paid by the Indemnitor pursuant to this
Agreement to the extent that such Expenses are not reasonable in nature or amount; provided,
however, that the Indemnitor shall have the burden of proving such Expenses to be unreasonable.

7. Subrogation. Except as provided in the last paragraph of Section 3, in the event
of payment under this Agreement, the Indemnitor shall be subrogated to the extent of such payment
to all of the rights of recovery of the Indemnitee (other than against the Almanac Parties), who
shall execute all papers required and shall do everything that may be reasonably necessary to
secure such rights, including the execution of such documents necessary to enable the Indemnitor
effectively to bring suit to enforce such rights.

8. Indemnification of Expenses of Successful Party. Notwithstanding any other
provision of this Agreement, to the extent that the Indemnitee has been successful on the merits or
otherwise in defense of any Proceeding or in defense of any claim, issue or matter therein,
including dismissal without prejudice, the Indemnitee shall be indemnified against any and all
Expenses incurred in connection therewith.

9. Partial Indemnification. If the Indemnitee is entitled under any provision of
this Agreement to indemnification by the Indemnitor for some portion of Expenses or Fines, but not,
however, for the total amount thereof, the Indemnitor shall nevertheless indemnify the Indemnitee
for the portion of such Expenses or Fines to which the Indemnitee is entitled.

10. Indemnification Hereunder Not Exclusive. Nothing herein shall be deemed to
diminish or otherwise restrict the Indemnitee’s right to indemnification under any provision of the
Indemnitor’s Declaration of Trust, Articles of Incorporation or Bylaws, as the case may be, and
amendments thereto, or under law.

11. Advance of Expenses. Expenses incurred by the Indemnitee in connection with any
Proceeding, except the amount of any settlement, shall be paid by the Indemnitor in advance upon
request of the Indemnitee that the Indemnitor pay such Expenses. The Indemnitee hereby undertakes
to repay to the Indemnitor the amount of any Expenses theretofore paid by the Indemnitor to the
extent that it is ultimately determined that such Expenses were not reasonable or that the
Indemnitee is not entitled to indemnification.

12. Coverage. The provisions of this Agreement shall apply with respect to the
Indemnitee’s service in those capacities set forth in Section 1 of this Agreement prior to the date
of this Agreement and with respect to all periods of such service after the date of this Agreement,
even though the Indemnitee may have ceased to serve in any or all of such capacities.

13. Guaranty. The Operating Partnership hereby guarantees, and agrees to be liable
for, the obligations of each Indemnitor hereunder, and each Indemnitor hereby guarantees, and
agrees to be liable for, the obligations of each of the other Indemnitors hereunder.

6

14. General Provisions.

14.1 Notice of Claim. The Indemnitee, as a condition precedent to his right to be
indemnified under this Agreement, shall give written notice to the Indemnitor as soon as
practicable of any claim made against him for which will or could be sought under this Agreement;
provided, however that the failure of the Indemnitee to provide such notice shall not relieve any
Indemnitor of its obligations hereunder except to the extent that such Indemnitor is materially
prejudiced by such failure to give notice. Notice to the Indemnitor shall be given at its principal
office and shall be directed to the Chief Executive Officer (or, if no one occupies such office,
the President), unless the Chief Executive Officer is the Indemnitee, in which case it shall be
directed to the President (or such other person as the Indemnitor shall designate in writing to the
Indemnitee). Notice shall be deemed duly given when addressed as follows and (i) when personally
delivered, (ii) when transmitted by telecopy, electronic or digital transmission with receipt
confirmed, (iii) one day after delivery to an overnight air courier guaranteeing next day delivery,
or (iv) upon receipt if sent by certified or registered mail. In each case notice shall be sent to:

	 
	If to the Indemnitee: To Indemnitee’s most recent address in Indemnitor’s books and

records.

If to Indemnitor: RAIT Financial Trust

Cira Centre

2929 Arch Street, 17th Floor

Philadelphia, PA 19104

Any party may change the address to which notice is to be sent or delivered by written notice to
the other parties.

14.2 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Maryland without giving effect to principles of conflicts of law.

14.3 Assignment. This Agreement may not be assigned by any party.

14.4 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original but all of which taken together shall constitute one and
the same instrument.

14.5 Severability. The invalidity or unenforceability of any provision or provisions
of this Agreement shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

7

14.6 Entire Agreement. This Agreement contains the entire agreement and understanding
between the Indemnitors and the Indemnitee with respect to the indemnification of the Indemnitee by
the Indemnitors as contemplated hereby, and no representations, promises, agreements or
understandings, written or oral, not herein contained shall be of any force or effect. This
Agreement shall not be changed unless in writing and signed by both the Indemnitee and the
Indemnitors.

[SIGNATURES CONTAINED ON FOLLOWING PAGE]

8

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
signed as of the day and year first above written.

RAIT FINANCIAL TRUST

By:       

Name:       

Title:       

RAIT LIMITED, INC.

By:       

Name:       

Title:       

RAIT GENERAL, INC.

By:       

Name:       

Title:       

RAIT PARTNERSHIP, L.P.

By: RAIT General, Inc., General Partner

By:       

Name:       

Title:       

INDEMNITEE:

      

Andrew M. Silberstein

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]