Document:

EX-10.2

 Exhibit 10.2 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), is entered into and executed on July 19, 2018,
and effective as of June 27, 2018 (the “Effective Date”), by and between RAIT Financial Trust, a Maryland real estate investment trust (the “Company”), with a principal office in Philadelphia, Pennsylvania, and
Alfred J. Dilmore (“Executive”). 
 WHEREAS, the Executive has been employed by the Company since June 2015; 

WHEREAS, Executive is currently employed as the Interim Chief Financial Officer, Interim Treasurer and Chief Accounting Officer
of the Company, pursuant to that certain Employment Agreement, effective as of August 22, 2017, by and between the Company and Executive (the “Prior Agreement”); 

WHEREAS, the Company desires to enter into an amended and restated employment agreement with Executive and employ Executive as Chief
Financial Officer, Treasurer and Chief Accounting Officer of the Company, pursuant to the terms and conditions set forth in this Agreement; 

WHEREAS, Executive desires to be employed by the Company, pursuant to the terms and conditions set forth in this Agreement; and 

WHEREAS, Executive agrees to be bound by the non-competition,
non-solicitation, intellectual property and confidentiality provisions as set forth in this Agreement. 

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

1. Employment. The Company continues to employ Executive, and Executive hereby accepts such continued employment and agrees to perform
Executive’s duties and responsibilities, in accordance with the terms, conditions and provisions hereinafter set forth. 

1.1 Employment Term. This Agreement shall be effective as of the Effective Date and shall continue for an initial period
of three (3) years, unless Executive’s employment and this Agreement are terminated sooner in accordance with Section 2; and shall be effective for two (2) successive one (1) year periods thereafter, for
a maximum term of five (5) years, in accordance with the terms of this Agreement (subject to termination as aforesaid) unless either party notifies the other party of non-renewal in writing prior to three
(3) months before the expiration of each renewal. The period commencing on the Effective Date and ending on the date on which the term of Executive’s employment under this Agreement shall terminate is hereinafter referred to as the
“Employment Term.” 
 1.2 Duties and Responsibilities. Executive’s titles shall be Chief
Financial Officer, Treasurer and Chief Accounting Officer of the Company, and in those capacities he shall perform all duties and accept all responsibilities and limitations incident to such positions as may be reasonably assigned to him by the
Chief Executive Officer of the Company, including without limitation, those customarily associated with these positions at a publicly traded company and those set forth in the Bylaws of the Company. 

 1.3 Extent of Service. Executive agrees to use Executive’s best
efforts to carry out Executive’s duties and responsibilities under Section 1.2 hereof and, consistent with the other provisions of this Agreement, to devote all of his business time, attention and energy to the
performance of his duties hereunder. The term “devote all of his business time, attention and energy” in the preceding sentence is not intended to prevent Executive from: 

(a) serving as a director or trustee of a non-profit organization, subject to the prior and ongoing
approval of the Board of Trustees, which will not be unreasonably withheld; and 
 (b) spending time during the business day to attend to
personal or family businesses or investments, so long as in the aggregate of Section 1.3(a) and this Section 1.3(b), such time does not interfere with the performance of his duties for the Company.

 1.4 Base Salary. For all of the services rendered by Executive hereunder, the Company shall pay Executive a base
salary (“Base Salary”), which shall be at the annual rate of Three Hundred Twenty Five Thousand Dollars ($325,000), payable in installments at such times as the Company customarily pays its other senior level executives.
Executive’s Base Salary shall be reviewed annually for appropriate increases by the Board of Trustees of the Company (the “Board”) or the Compensation Committee of the Board (the “Committee”), pursuant to the
Committee’s delegated authority, pursuant to the Board’s or the Committee’s, as applicable, normal performance review policies for senior level executives but shall not be decreased. 

1.5 Bonus. Executive shall continue to be eligible to receive annual bonuses in such amounts as the Board or the
Committee, as applicable, may approve in its sole discretion or under the terms of any annual incentive plan of the Company maintained for other senior level executives. 

1.6 Retirement and Welfare Plans and Perquisites. Executive shall continue to be entitled to participate in all employee
retirement and welfare benefit plans and programs or executive perquisites made available to the Company’s senior level executives as a group or to its employees generally, as such retirement and welfare plans or perquisites may be in effect
from time to time and subject to the eligibility requirements of the plans. Nothing in this Agreement shall prevent the Company from amending or terminating any retirement, welfare or other employee benefit plans or programs from time to time as the
Company deems appropriate. 
 1.7 Reimbursement of Expenses; Vacation. Executive shall continue to be provided with
reimbursement of reasonable expenses related to Executive’s employment by the Company on a basis no less favorable than that which may be authorized from time to time for senior level executives as a group, and shall be entitled to vacation and
sick leave in accordance with the Company’s vacation, holiday and other pay for time not worked policies. In addition, the Company shall reimburse Executive for reasonable
out-of-pocket travel expenses in connection with the performance of his duties and responsibilities. 

  
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 1.8 Incentive Compensation. Executive shall be entitled to participate in
any short-term and long-term incentive programs (including without limitation any equity compensation plans) established by the Company for its senior level executives generally, at levels commensurate with the benefits provided to other senior
executives and with adjustments appropriate for his position and performance. 
 2. Termination. Executive’s employment shall terminate
upon the occurrence of any of the following events: 
 2.1 Termination Without Cause; Resignation for Good Reason; Non-Renewal. 
 (a) The Company may remove Executive at any time without Cause (as
defined in Section 3) from the position in which Executive is employed hereunder upon not less than sixty (60) days’ prior written notice to Executive. In addition, Executive may initiate a termination of
employment by resigning under this Section 2.1 for Good Reason (as defined in Section 3). Executive shall give the Company not less than sixty (60) days’ prior written notice of such
resignation. In either event, the Company may relieve Executive of all responsibilities and authority during any portion or all of this notice period with the understanding that Executive shall remain an employee and receive all pay and
benefits to which he is entitled during such period.  
 (b) Upon any termination without Cause by the Company or
resignation for Good Reason by the Executive as described in Section 2.1(a), Executive shall be entitled to receive only the amount due to Executive under the Company’s then-current severance pay plan for employees, if
any. No other payments or benefits shall be due under this Agreement to Executive, but Executive shall be entitled to any benefits accrued and earned in accordance with the terms and conditions of any applicable benefit plans and programs of the
Company in which Executive participated prior to his termination of employment. 
 (c) Notwithstanding the provisions of
Section 2.1(b), in the event that Executive executes and does not revoke a written mutual release upon such termination without Cause by the Company or resignation for Good Reason by the Executive as described in
Section 2.1(a), in a form acceptable to the Company (the “Release ”), whereby Executive releases any and all claims against the Company and all related parties with respect to all matters arising out of
Executive’s employment by the Company, or the termination thereof (other than claims for any entitlements under the terms of this Agreement or under any plans or programs of the Company under which Executive has accrued and is due a benefit),
and whereby the Company releases any claims against Executive for actions within the scope of his employment by the Company, Executive shall be entitled to receive (in exchange for the Company’s undertakings in this
Section 2.1(c)), in lieu of the payment described in Section 2.1(b), the following: 

  
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 (i) Executive shall receive a lump sum cash payment equal to one and one half
(1.5) times the sum of (x) Executive’s Base Salary, as in effect immediately prior to his termination of employment and (y) the average annual cash bonus Executive received for and applicable to the Company’s three
(3) completed fiscal years immediately prior to the Executive’s last day of employment (or, if he was not employed for the entire period covered by the three (3) completed fiscal years of the Company immediately prior to his
termination, the average annual cash bonus Executive received for and applicable to those completed fiscal years of the Company for which he was employed for the entire fiscal year). Unless the payment is required to be delayed pursuant to
Section 17.2, the payment shall be made on the sixtieth (60th) day following Executive’s last day of employment with the Company, provided that Executive executes the Release during the forty-five
(45) day period following Executive’s last day of employment and the revocation period for the Release has expired without revocation by Executive. 

(ii) Executive shall receive a lump sum cash payment equal to a pro rata portion of Executive’s target annual cash bonus
for and applicable to the fiscal year of his termination (or, in the absence of a target bonus opportunity for and applicable to the fiscal year of his termination, the lump sum cash payment shall be equal to a pro rata portion of the average annual
cash bonus Executive received for the Company’s three (3) completed fiscal years immediately prior to Executive’s last day of employment) (the “Cash Bonus”). In the absence of a target annual cash bonus opportunity
for and applicable to the fiscal year of his termination and in the event that the Executive was not employed for the entire period covered by the three (3) completed fiscal years of the Company immediately prior to his termination, the Cash
Bonus shall be calculated on the basis of the annual cash bonus received for and applicable to those completed fiscal years of the Company for which he was employed for the entire fiscal year). The pro-rated
Cash Bonus shall be determined by multiplying the Cash Bonus by a fraction, the numerator of which is the number of days during which Executive was employed by the Company in the fiscal year of his termination of employment and the denominator of
which is three hundred sixty-five (365). Unless the payment is required to be delayed pursuant to Section 17.2, the payment shall be made on the sixtieth (60th) day following Executive’s last day of employment with the
Company, provided that Executive executes the Release during the forty-five (45) day period following Executive’s last day of employment and the revocation period for the Release has expired without revocation by Executive.

 (iii) For a period of eighteen (18) months following the date of termination, Executive shall continue to receive the
medical coverage in effect at the date of his termination (or generally comparable coverage) for himself and, where applicable, his spouse and dependents, at the same premium rate as may be charged from time to time for employees generally, as if
Executive had continued in employment with the Company during such period. The COBRA health care continuation coverage period under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”), shall run
concurrently with the foregoing eighteen (18) month benefit period. 
 (iv) Solely for purposes of this
Section 2.1(c)(iv), upon (1) a termination without Cause by the Company, (2) the Company elects not to renew Executive’s Employment Term pursuant to Section 1.1, or (3) a
resignation for Good Reason by the Executive as described in Section 2.1(a), all outstanding equity-based compensation awards that are not intended to operate in a manner substantially similar to “performance-based

  
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compensation” under Section 162(m)(4)(C) of the Code (whether or not meeting timing and other requirements thereof) shall become fully vested, immediately exercisable and any
restrictions thereon shall lapse, as the case may be; provided, that any delays in the settlement or payment of such awards that are set forth in the applicable award agreement and that are required under Section 409A of the Code shall
remain in effect, and all outstanding equity-based compensation awards that are intended to operate in a manner substantially similar to “performance-based compensation” under Section 162(m)(4)(C) of the Code (whether or not meeting
timing and other requirements thereof) under Section 162(m)(4)(C) of the Code shall remain outstanding and shall vest or be forfeited in accordance with the terms of the applicable award agreements, if the applicable performance goals are
satisfied. 
 For clarity, the foregoing payments and benefits referenced in Sections 2.1(c)(i)-(iv), which Executive shall
receive if he executes and does not revoke the Release required by this Section 2.1(c), shall be in addition to any other amounts earned, accrued and owing to Executive but not yet paid under
Section 1 and under any applicable benefit plans and programs of the Company (other than severance plans or programs) in which Executive participated prior to his termination of employment, subject to the terms and
conditions of any such plans and programs, without regard to whether Executive executes and does not revoke the Release. For the avoidance of doubt, neither non-renewal of this Agreement by either party nor
the expiration of the term of this Agreement shall entitle Executive to the payments and benefits set forth in this Section 2.1(c). 

2.2 Voluntary Termination. Executive may voluntarily terminate his employment for any reason upon sixty
(60) days’ prior written notice or by sending a notice of non-renewal of this Agreement to the Company, as described in Section 1.1. In any such event, after the effective
date of such termination, except as provided in Section 2.1 with respect to a resignation for Good Reason, no further payments shall be due under this Agreement, except that Executive shall be entitled to any amounts
earned, accrued and owing to Executive but not yet paid under Section 1 and any benefits accrued and due in accordance with the terms and conditions of any applicable benefit plans and programs of the Company in which
Executive participated prior to his termination of employment. 
 2.3 Disability. The Company may terminate
Executive’s employment, to the extent permitted by applicable law, if Executive has been unable to perform the material duties of his employment and has been formally determined to be eligible for disability benefits under the Company’s
long-term disability plan (“Disability”); provided, however, that the Company shall continue to pay Executive’s Base Salary until the Company acts to terminate Executive’s employment. Executive
agrees, in the event of a dispute under this Section 2.3 relating to Executive’s Disability, to submit to a physical examination by a licensed physician jointly selected by the Board or the Committee, as applicable,
and Executive. If the Company terminates Executive’s employment for Disability, Executive shall be entitled to receive the following: 

  
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 (a) Executive shall receive a lump sum cash payment equal to a pro rata portion
of Executive’s Cash Bonus (as Cash Bonus is defined in Section 2.1(c)(ii)). The pro-rated Cash Bonus (the “Pro-Rata Cash
Bonus”) shall be determined by multiplying the Cash Bonus by a fraction, the numerator of which is the number of days during which Executive was employed by the Company in the fiscal year of his termination of employment and the denominator
of which is three hundred sixty-five (365). Except as otherwise required to comply with the requirements of Section 17, payment shall be made on the sixtieth (60th) day following Executive’s last day of employment with
the Company. 
 (b) The Company shall pay to Executive any amounts earned, accrued and owing but not yet paid under
Section 1 and any other benefits accrued and earned in accordance with the terms and conditions of any applicable benefit plans and programs of the Company in which Executive participated prior to his termination of
employment. 
 2.4 Death. If Executive dies while employed by the Company, the Company shall pay to Executive’s
executor, legal representative, administrator or designated beneficiary, as applicable, (i) any amounts earned, accrued and owing but not yet paid under Section 1 and any benefits accrued and earned under the
Company’s benefit plans and programs in which Executive participated prior to his termination of employment, in accordance with the terms and conditions of such plans and programs, and (ii) a
Pro-Rata Cash Bonus (determined according to Section 2.3(a)) for the Company’s fiscal year in which Executive’s death occurs and, except as otherwise required to comply with
the requirements of Section 17, such amounts shall be paid on the sixtieth (60th) day following the date of Executive’s death. Otherwise, the Company shall have no further liability or obligation under this Agreement
to Executive’s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Executive. 

2.5 Cause. The Company may terminate Executive’s employment at any time for Cause upon written notice to Executive,
in which event all payments under this Agreement shall cease, except for Base Salary to the extent already accrued. Executive shall be entitled to any benefits accrued and earned before his termination in accordance with the terms and conditions of
any applicable benefit plans and programs of the Company in which Executive participated prior to his termination of employment. 

2.6 Notice of Termination. Any termination of Executive’s employment shall be communicated by a written notice of
termination to the other party hereto given in accordance with Section 9. The notice of termination shall (i) indicate the specific termination provision in this Agreement relied upon, (ii) briefly summarize the
facts and circumstances deemed to provide a basis for a termination of employment and the applicable provision hereof, and (iii) specify the termination date in accordance with the requirements of this Agreement. 

3. Definitions and References. 

3.1 “Cause ” shall mean any of the following grounds for termination of Executive’s employment:

 (a) Executive’s commission of, or indictment for, or formal admission to a felony, any crime of moral turpitude,
dishonesty, or any crime involving the Company; or Executive’s breach of the Company’s Code of Ethics; 

  
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 (b) Executive’s engagement in fraud, misappropriation or embezzlement; 

(c) Executive’s continual failure to substantially perform his reasonably assigned material duties to the Company (other
than a failure resulting from Executive’s incapacity due to physical or mental illness), and such failure has continued for a period of at least thirty (30) days after a written notice of demand for performance, signed by a duly authorized
officer of the Company, has been delivered to Executive specifying the manner in which Executive has failed to substantially perform; or 

(d) Executive’s breach of Section 4 of this Agreement. 

3.2 “Good Reason” shall mean, without Executive’s consent: 

(a) the material reduction of Executive’s title, authority, duties and responsibilities or the assignment to Executive of
duties materially inconsistent with Executive’s position or positions with the Company; 
 (b) a reduction in Base
Salary of the Executive; 
 (c) a relocation of Executive’s regular office location at Two Logan Square, 100 N. 18th
Street, 23rd Floor, Philadelphia, PA 19103 for the performance of his duties to a location more than thirty (30) miles from such office; or 

(d) the Company’s material and willful breach of this Agreement. 

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of termination on account thereof (specifying a
termination date of at least forty-five (45) days but no more than sixty (60) days from the date of such notice) is given no later than thirty (30) days after the time at which the event or condition purportedly giving rise to Good
Reason first occurs or arises and (ii) if there exists an event or condition that constitutes Good Reason, the Company shall have thirty (30) days from the date notice of such a termination is given to cure such event or condition and, if
the Company does so, such event or condition shall not constitute Good Reason hereunder. 
 3.3 “Code of Ethics”
shall mean the RAIT Code of Business Conduct and Ethics, the Company’s Equal Employment Opportunity Policy (including without limitation its provisions relating to Prohibition of Sexual Harassment and Prohibition of Harassment of Legally
Protected Groups), the RAIT Insider Trading Policy, the Company’s Section 16 Compliance Policy, the RAIT Stock Ownership Guidelines, the Company’s Restricted List of Securities and Limitation of Personal Trading, the Company’s
Travel and Business Expense Policy & Procedure, and the RAIT Procedure to Communicate with Audit Committee. 
 3.4
References to “termination” and “terminate” (whether or not these words are capitalized) shall include separations from the Company for any reason and under any circumstances, whether initiated by the Company, by Executive or by
mutual agreement, unless it is clear from the context in which such word is used that the reference is intended to relate to a specific separation or type of separation. 

  
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 4. Non-Competition,
Non-Solicitation, Intellectual Property and Confidentiality. Executive hereby acknowledges that, during and solely as a result of his employment by the Company, Executive will receive special
information with respect to the operation of the businesses of the Company, and/or its affiliates, and other related matters not generally available to other executives of the Company, and access to confidential information and business and
professional contacts. Executive hereby agrees to abide by the terms of the non-competition, non-solicitation, intellectual property and confidentiality provisions
below, in consideration of Executive’s employment as an executive officer of the Company and the public stature which accompanies such position, as well as access to confidential information and business and professional contacts, and unique
opportunities afforded by the Company to Executive as a result of Executive’s employment in such position; Executive’s eligibility for the benefits set forth in this Agreement (including without limitation the opportunity for the payment
of additional salary and bonuses as well as Company paid or subsidized medical insurance referenced in Section 2.1(c) and the opportunity to participate in any long term incentive programs); and the Company’s entering
into this Agreement. Executive agrees and acknowledges that the foregoing, whether treated separately or together, constitute full, adequate and sufficient consideration for the restrictions and obligations set forth in those provisions. 

4.1 Non-Competition and
Non-Solicitation. Executive agrees that during his employment with the Company and, with respect to Section 4.1(a), for a period of nine (9) months after the termination
of Executive’s employment under any circumstances (other than at the expiration of the maximum Employment Term of five (5) years, as set forth in Section 1.1, or in the event that the Company elects not to renew
Executive’s Employment Term pursuant to Section 1.1, in which case this Section 4.1(a) will not be applicable to Executive) and, with respect to Sections 4.1(b) and (c), for a
period of nine (9) months after the termination of Executive’s employment under any circumstances, Executive (without regard to the state in which Executive lives or works) shall not, unless acting pursuant hereto or with the prior written
consent of the Board: 
 (a) directly or indirectly, own, manage, operate, finance, join, control or participate in the
ownership, management, operation, financing or control of, or be connected as an officer, director, employee, partner, principal, agent, representative, consultant or otherwise with, or use or permit Executive’s name to be used, or perform work
in connection with or on behalf of any Competing Business (defined below) with respect to the activities of a Competing Business within any state in which the Company, and/or its affiliates, then currently engages in any Substantial Business
Activity (defined below) or with respect to any state in which the Company, and/or its affiliates, engaged in any Substantial Business Activity during the twelve (12) month period preceding Executive’s last day of employment with the
Company; provided, however, that notwithstanding the foregoing, this provision shall not be construed to prohibit the passive ownership by Executive of not more than five percent (5%) of the capital stock of any
entity which is engaged in any Competing Business having a class of securities registered pursuant to the Securities Exchange Act of 1934, as amended; or 

(b) solicit or divert, or attempt to solicit or divert, to any Competing Business any individual or entity which is an active
or prospective customer, agent, mortgage broker, loan originator or borrower of, with or from the Company, and/or its affiliates, or was such an active or prospective customer, agent, mortgage broker, loan originator or borrower at any time during
the twelve (12) month period immediately preceding Executive’s termination of employment; or 

  
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 (c) employ, attempt to employ, solicit or assist any Competing Business in
employing (or engaging as a consultant) any individual who is a current employee of or consultant to the Company, and/or its affiliates, or who was an employee or consultant to the Company and/or its affiliates during the twelve (12) month
period immediately preceding Executive’s termination of employment; provided, however, that, notwithstanding the foregoing, nothing in this Section 4 shall prohibit Executive from making general
employment solicitations, such as through advertisements in publicly available media, so long as such advertisements are not specifically targeted at employees of the Company or any of its affiliates. 

The phrase “Competing Business” shall mean any entity or enterprise actively engaged or planning to engage in any business or
businesses the Company and/or its affiliates are actively engaged in (or are expected to be actively engaged in within twelve (12) months) at the time of Executive’s termination of employment (the “Company Business”).
Without limiting the scope of the preceding sentence, the phrase “Competing Business” includes the solicitation, origination, aggregation, pricing, negotiation and/or sale of (i) loans secured by mortgages on commercial real estate,
and/or (ii) loans to entities engaged in the commercial real estate business, whether to hold these assets for investment or for sale individually or by combining them in one or more entities for sale as an investment (the process referred to
as “securitization”). The securitizations, depending upon the make-up of the assets, are often referred to by their acronyms such as “CMBS” (Commercial Mortgage Backed Securities),
“CDO” (Collateralized Debt Obligations), “CLO” (Collateralized Loan Obligations) or other current or future similar acronyms. Notwithstanding the foregoing, an entity or enterprise shall be deemed not to be a Competing Business
if the Executive recuses himself from participating in the management by such entity or enterprise of any business substantially similar to the Company Business and provides reasonable assurances to the Company of the same, upon request by the
Company. 
 The phrase “Substantial Business Activity” shall mean that the Company, and/or its affiliates: (i) has, has
had, or is taking action to establish a business office; (ii) solicits, has solicited, makes or has made, loans secured by real estate, or is or has reviewed applications by borrowers or brokers to engage in these activities;
(iii) solicits, has solicited, makes or has made, loans to real estate developers and/or owners, or is or has reviewed applications by borrowers or brokers to engage in these activities; (iv) owns, services or manages real estate, or has
owned, serviced or managed real estate; and/or (v) has or has had a recorded and unsatisfied mortgage or other lien upon real estate or personal property. 

In the event that the provisions of this Section 4.1 should ever be adjudicated to exceed the time, geographic,
business activities or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, business activities or other limitations permitted by
applicable law. 

  
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 4.2 Developments. Executive shall disclose fully, promptly and in writing
to the Company any and all inventions, discoveries, improvements, modifications and other intellectual property rights, whether patentable or not, which Executive has conceived, made or developed, solely or jointly with others, while employed by the
Company and which (i) relate to the businesses, work or activities of the Company, and/or its affiliates or (ii) result from or are suggested by the carrying out of Executive’s duties hereunder or from or by any information that
Executive may receive as an employee of the Company. Executive hereby assigns, transfers and conveys to the Company all of Executive’s right, title and interest in and to any and all such inventions, discoveries, improvements, modifications and
other intellectual property rights and agrees to take all such actions as may be requested by the Company at any time and with respect to any such invention, discovery, improvement, modification or other intellectual property rights to confirm or
evidence such assignment, transfer and conveyance. Furthermore, at any time and from time to time, upon the request of the Company, Executive shall execute and deliver to the Company, any and all instruments, documents and papers, give evidence and
do any and all other acts that, in the opinion of counsel for the Company, are or may be necessary or desirable to document such assignment, transfer and conveyance or to enable the Company to file and prosecute applications for and to acquire,
maintain and enforce any and all patents, trademark registrations or copyrights under United States or foreign law with respect to any such inventions, discoveries, improvements, modifications or other intellectual property rights or to obtain any
extension, validation, reissue, continuance or renewal of any such patent, trademark or copyright. The Company shall be responsible for the preparation of any such instruments, documents and papers and for the prosecution of any such proceedings and
shall pay for all reasonable expenses incurred by Executive in compliance with the provisions of this Section 4.2, promptly upon Executive’s submission of proper invoices therefor. 

4.3 Confidentiality. 

(a) Executive acknowledges that, by reason of Executive’s employment by the Company, Executive will have access to
confidential information of the Company, and/or its affiliates, including, without limitation, information and knowledge pertaining to products, inventions, discoveries, improvements, innovations, designs, ideas, trade secrets, proprietary
information, manufacturing, packaging, advertising, distribution and sales methods, sales and profit figures, customer and client lists and relationships between the Company, and/or its affiliates, and dealers, distributors, sales representatives,
wholesalers, customers, clients, real estate developers and/or owners, mortgage brokers, suppliers and others who have business dealings with them (“Confidential Information”). Executive acknowledges that such Confidential
Information is a valuable and unique asset of the Company, and/or its affiliates, and covenants that, both during his employment with the Company and following his termination of employment under any circumstances, Executive will not disclose any
Confidential Information to any person (except as Executive’s duties as an officer of the Company may require or as required by law or in a judicial or administrative proceeding) without the prior written authorization of the Board. The
obligation of confidentiality imposed by this Section 4.3 shall not apply to information that becomes generally known to the public through no act of Executive in breach of this Agreement. 

  
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 (b) Executive acknowledges that all documents, files and other materials received
from the Company, and/or its affiliates, during his employment (with the exception of documents relating to Executive’s compensation or benefits to which Executive is entitled following the termination of his employment) are for use of
Executive solely in discharging Executive’s duties and responsibilities hereunder and that Executive has no claim or right to the continued use or possession of such documents, files or other materials following termination of Executive’s
employment by the Company. Executive agrees that, upon termination of employment, Executive will not retain any such documents, files or other materials and will promptly return to the Company any documents, files or other materials in
Executive’s possession or custody. Notwithstanding the foregoing or anything in this Agreement to the contrary, Executive shall be entitled to a copy of his full list of contacts for use in activities which do not violate this Agreement. 

4.4 Equitable Relief. Executive acknowledges that the restrictions contained in Sections 4.1, 4.2 and
4.3 hereof are, in view of the nature of the businesses of the Company, and/or its affiliates, reasonable and necessary to protect the legitimate interests of the Company, and/or its affiliates, and that any violation of any provision of
those Sections will result in irreparable injury to the Company and/or its affiliates. Executive also acknowledges that in the event of any such violation, the Company shall be entitled to preliminary and permanent injunctive relief, without the
necessity of proving actual damages, and to an equitable accounting of all earnings, profits and other benefits arising from any such violation, which rights shall be cumulative and in addition to any other rights or remedies to which the Company
may be entitled. Executive agrees that in the event of any such violation, an action may be commenced for any such preliminary and permanent injunctive relief and other equitable relief in the Federal District Court for the Eastern District of
Pennsylvania or the Common Pleas Court of Philadelphia. Executive hereby waives, to the fullest extent permitted by law, any objection that Executive may now or hereafter have to such jurisdiction or to the laying of the venue of any such suit,
action or proceeding brought in such a court and any claim that such suit, action or proceeding has been brought in an inconvenient forum. Executive agrees that effective service of process may be made upon Executive by mail under the notice
provisions contained in Section 9 hereof. 
 5. Non-Exclusivity of Rights.
Nothing in this Agreement shall prevent or limit Executive’s continuing or future participation in or rights under any benefit, bonus, incentive or other plan or program provided by the Company and for which Executive may qualify;
provided, however, that if Executive becomes entitled to and receives the payments provided for in Section 2.1(c) of this Agreement, Executive hereby waives Executive’s right to receive
payments under any severance plan or similar program applicable to all employees of the Company. 
 6. Survivorship. The respective rights and
obligations of the parties under this Agreement shall survive any termination of Executive’s employment to the extent necessary to the intended preservation of such rights and obligations, including, without limitation,
Section 4 (Non-Competition, Non-Solicitation, Intellectual Property and Confidentiality), Section 8 (Arbitration;
Expenses) and Section 18 (Claw-Back). 

  
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 7. Mitigation. Executive shall not be required to mitigate the amount of any payment or benefit
provided for in this Agreement by seeking other employment or otherwise and there shall be no offset against amounts due Executive under this Agreement on account of any remuneration attributable to any subsequent employment, insurance or other
proceeds that Executive may obtain. 
 8. Arbitration; Expenses. In the event of any dispute under the provisions of this Agreement, other than
a dispute in which the primary relief sought is an equitable remedy such as an injunction, the parties shall be required to have the dispute, controversy or claim settled by arbitration in Philadelphia, Pennsylvania in accordance with the National
Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association, before a panel of three arbitrators, two of whom shall be selected by the Company and Executive, respectively, and the third of whom shall be
selected by the other two arbitrators. Any award entered by the arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by either party in accordance with applicable law in any court of competent jurisdiction. This
arbitration provision shall be specifically enforceable. The arbitrators shall have no authority to modify any provision of this Agreement or to award a remedy for a dispute involving this Agreement other than a benefit specifically provided under
or by virtue of the Agreement. Each party shall be responsible for its own expenses relating to the conduct of the arbitration (including reasonable attorneys’ fees and expenses) and shall share the fees and expenses of the arbitrators and the
American Arbitration Association. 
 9. Notices. All notices and other communications required or permitted under this Agreement or necessary
or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail or overnight national courier, as follows (provided that notice of change of address shall
be deemed given only when received): 
 If to the Company, to: 

RAIT Financial Trust 

Two Logan Square 

100 N. 18th Street, 23rd Floor 

Philadelphia, PA 19103 

Attention: Chief Executive Officer 

If to Executive, to: 

Alfred J. Dilmore at his most recent home address set forth in the records of the Company. 

or to such other names or addresses as the Company or Executive, as the case may be, shall designate by notice to each other person entitled to receive notices
in the manner specified in this Section. 

  
 12 

 10. Contents of Agreement; Amendment and Assignment. 

10.1 This Agreement sets forth the entire understanding between the parties hereto with respect to the subject matter hereof
and cannot be changed, modified, extended or terminated except upon written amendment approved by the Board or the Committee, as applicable, and executed on its behalf by a duly authorized officer of the Company and by Executive. This Agreement
supersedes the provisions of any employment or other agreement between Executive and the Company that relate to any matter that is also the subject of this Agreement, including, for the avoidance of doubt, the Prior Agreement, and such provisions in
such other agreements are null and void; provided, however, that the foregoing shall not apply to any equity compensation/incentive agreements and/or indemnification agreements entered into between Executive and the Company, which such
agreements shall continue in accordance with their terms. 
 10.2 All of the terms and provisions of this Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of Executive under this
Agreement are of a personal nature and shall not be assignable or delegable in whole or in part by Executive. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business or assets of the Company, within fifteen (15) days of such succession, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required
to perform if no such succession had taken place. 
 11. Severability. If any provision of this Agreement or application thereof to anyone or
under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or
unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances. 
 12. Remedies Cumulative; No Waiver. No remedy conferred upon
a party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given under this Agreement or now or hereafter existing at law or in equity.
No delay or omission by a party in exercising any right, remedy or power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to
time and as often as may be deemed expedient or necessary by such party in its sole discretion. 
 13. Beneficiaries/References. Executive
shall be entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit payable under this Agreement following Executive’s death by giving the Company
written notice thereof. In the event of Executive’s death or a judicial determination of Executive’s incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, to refer to Executive’s beneficiary,
estate or other legal representative. 

  
 13 

 14. Miscellaneous. All section headings used in this Agreement are for convenience only. This
Agreement may be executed in counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts. 

15. Withholding. All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any
payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation. Except as specifically provided otherwise in this Agreement, Executive shall bear all
expense of, and be solely responsible for, all federal, state and local taxes due from Executive with respect to any payment received under this Agreement. 

16. Governing Law. This Agreement shall be governed by and interpreted under the laws of the Commonwealth of Pennsylvania without giving effect
to any conflict of laws provisions. 
 17. Section 409A. 

17.1 Interpretation. Notwithstanding the other provisions hereof, this Agreement is intended to comply with the
requirements of section 409A of the Code, to the extent applicable, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be
construed and interpreted to comply with section 409A and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder. If any payment or benefit cannot be provided or made at the time
specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. For purposes of section 409A of the Code,
each payment made under this Agreement shall be treated as a separate payment. In no event may the Executive, directly or indirectly, designate the calendar year of payment. 

17.2 Payment Delay. Notwithstanding any provision to the contrary in this Agreement, if on the date of the
Executive’s termination of employment, the Executive is a “specified employee” (as such term is defined in section 409A(a)(2)(B)(i) of the Code and its corresponding regulations) as determined by the Board (or its delegate) in its
sole discretion in accordance with its “specified employee” determination policy, then all cash severance payments payable to the Executive under this Agreement that are deemed as deferred compensation subject to the requirements of
section 409A of the Code shall be postponed for a period of six (6) months following the Executive’s “separation from service” with the Company (or any successor thereto). The postponed amounts shall be paid to the Executive in a
lump sum on the date that is six (6) months and one (1) day following the Executive’s “separation from service” with the Company (or any successor thereto). If the Executive dies during such
six-month period and prior to payment of the postponed cash amounts hereunder, the amounts delayed on account of section 409A of the Code shall be paid to the personal representative of the Executive’s
estate on the sixtieth (60th) day after Executive’s death. If any of the cash payments payable pursuant to this Agreement are delayed due to the requirements of section 409A of the Code, there shall be added to such payments interest during the
deferral period at an annualized rate of interest equal to the prime rate as reported in the Wall Street Journal (or, if unavailable, a comparable source) at the relevant time. 

  
 14 

 18. Reimbursements. All reimbursements provided under this Agreement shall be made or provided in
accordance with the requirements of section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this
Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or
before the last day of the taxable year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. 

19. Claw-Back. Executive acknowledges that all compensation paid or payable to Executive shall be subject to the provisions of any claw-back
policy that is adopted by the Company in response to the Dodd-Frank Wall Street Reform and Consumer Protection Act and any other relevant laws and their rules and regulations (including stock exchange rules), and is applicable to
a group of the Company’s senior level executives determined by the Company that includes, at a minimum, the Chief Executive Officer, the President and the Chief Financial Officer. 

  
 15 

 IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement
as of the date first above written. 
  

			
	RAIT FINANCIAL TRUST:

 
			
		
	By:	 	 /s/ Michael J. Malter

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

  

			
	EXECUTIVE:
		
	By:	 	 /s/ Alfred J. Dilmore

			
	Name:	 	Alfred J. Dilmore

 [Signature Page to Executive Employment Agreement]EX-10.3

 Exhibit 10.3 

AMENDED AND RESTATED 
 NON-EXECUTIVE CHAIRMAN AGREEMENT 
 THIS AMENDED AND RESTATED
NON-EXECUTIVE CHAIRMAN AGREEMENT (this “Agreement”) is made as of the 19th day of July, 2018, by and between RAIT Financial Trust, a Maryland real estate investment trust (the “Company”),
and Michael J. Malter (the “Chairman”). 
 WHEREAS, the Chairman has served as the independent
non-executive Chairman of the Board since October 18, 2016; 
 WHEREAS, the Company and the
Chairman entered into a Non-Executive Chairman Agreement dated as of February 27, 2018 (the “Original Agreement”), extending his term of the Chairman through the date of the 2018 Annual Meeting
of Shareholders; 
 WHEREAS, at the request of the Board of Trustees of the Company (the “Board”), the Chairman has agreed to
continue to serve as Chairman through the date of the 2019 Annual Meeting of Shareholders (the “2019 Annual Meeting”) on the terms and conditions provided in this Agreement; 

NOW, THEREFORE, in consideration of the promises and mutual covenants herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Chairman and the Company agree as follows: 
 1.
Non-Executive Chairman. During the Term of this Agreement (as defined below), the Chairman shall continue to serve as the independent non-executive Chairman of
the Board and as a member of the Board and one or more committees of the Board as mutually agreed by the Chairman and the Board, with the responsibilities that the Company has requested him to perform, including those described in Section 3 of
this Agreement. The Chairman shall at all times serve in a non-executive capacity and shall not be an employee or officer of the Company or serve in any other position with the Company or any of its
affiliates. 
 2. Term. The term of the Agreement (the “Term”) shall commence as of the date hereof (the “Commencement
Date”) and continue until the adjournment of the 2019 Annual Meeting. The Term may be extended beyond the 2019 Annual Meeting by mutual agreement of the Chairman and the Board. 

3. Duties. During the Term, the Chairman shall continue to perform the duties and responsibilities assigned by the Board to him when it
appointed him as non-executive Chairman of the Board in October 2016, which are outlined in Schedule A hereto and, in addition, to continue to provide advice and guidance to management in connection with the
development of a plan for the Company to assess its financial performance and financial needs and the coordination of professionals to advise and assist the Company in such process, and to continue to assist management in developing strategies
relating to the goal of maximizing realized value on the Company’s assets and reducing its liabilities. 

 4. Commitment. During and throughout the Term, Chairman shall devote such reasonable time,
attention, skill and efforts to the business and affairs of the Company as is necessary to discharge the duties and responsibilities assigned to the Chairman and shall serve the Company faithfully and to the best of his ability. 

5. Compensation and Benefits. 

5.1 Compensation as Chairman. During the Term, the Chairman shall receive compensation at the rate of Five Hundred Thousand
Dollars ($500,000.00) per year, payable semi-monthly on the first and fifteenth day of each month, which shall be inclusive of all fees payable to Chairman for his service as Chairman of the Board during the Term. In addition, the Chairman shall be
eligible to receive additional equity compensation under the RAIT Financial Trust 2017 Incentive Award Plan (the “2017 Plan”) in such form and amount as may be determined by the Compensation Committee of the Board. The Chairman shall also
be entitled to receive any unpaid compensation accrued under the Original Agreement through the Commencement Date of this Agreement. In the event that the Term is extended beyond the 2019 Annual Meeting by mutual agreement of the Chairman and the
Board, the compensation of the Chairman during such extended Term shall continue at the same rate and on the same terms as during the initial Term hereunder or at such other rate and on such other terms as may be mutually agreed by the Chairman and
the Board. 
 5.2 Board Compensation. So long as the Chairman continues to serve as a member of the Board, he shall be entitled to
receive, in addition to the compensation payable to him as Chairman of the Board under this Agreement, the same cash, equity compensation and any other benefits provided to other non-management members of the
Board and Board committees under the plans and policies of the Company for Board compensation and benefits in effect from time to time. 

5.3 Equity Awards. So long as the Chairman continues to serve as a member of the Board, his outstanding Share Awards, and any additional
Share Awards that may be subsequently be granted to him, shall continue to vest and shall otherwise operate in accordance with their existing terms. 

5.4 Lodging and Meal Expense Reimbursement. The Company shall directly pay or reimburse the Chairman for the reasonable costs and
expenses for his temporary lodging and meals while living in Philadelphia for the purpose of performing his duties and responsibilities as Chairman of the Board. The Chairman shall provide to the Company such written substantiation of such costs and
expenses as may be reasonably requested by the Company. 
 5.5 Travel Reimbursement. The Company shall reimburse the Chairman for the
reasonable costs and expenses of travelling between his home on Long Island, New York, and Philadelphia for the purpose of performing his duties and responsibilities as Chairman of the Board. The Chairman shall provide to the Company such written
substantiation of such costs and expenses as may be reasonably requested by the Company. 

  
 2 

 5.6 Tax Gross-Up. To the extent that the Chairman
incurs any federal or state income tax liability on account of the lodging, meal and travel expense reimbursement specified in Sections 5.4 and 5.5 hereof, the Company shall reimburse the Chairman for all such tax liability incurred and all federal
and state income tax liability incurred as a result of the tax gross-up payments made pursuant to this Section 5.6. 

5.7 Other Business Related Expenses. Upon submission of appropriate documentation in accordance with its policies in effect from time to
time, the Company shall pay or reimburse the Chairman for all other reasonable business related expenses that the Chairman may incur in performing his duties under this Agreement. 

5.8 Administrative Support. During the Term, the Company shall provide the Chairman with an office at its corporate headquarters that is
appropriate for the Chairman of the Board and a full-time administrative assistant capable of providing administrative support as required by the Chairman. 

6. Independent Contractor. This Agreement is not intended to create an employment relationship between the Chairman and the Company;
rather, it is the intention of the parties that the Chairman shall be an independent contractor of the Company. The Chairman shall be solely responsible for the payment or withholding of all federal, state, or local income taxes, social security
taxes, unemployment taxes, and any and all other taxes relating to the compensation he earns under this Agreement. The Chairman shall not be eligible to participate in any of the Company’s employee benefit plans. 

7. Termination. 
 7.1
General. Nothing in this Agreement shall interfere with or limit the right of the Company to remove the Chairman as Chairman of the Board at any time in accordance with the Company’s governing documents and Maryland law, or to restrict
the right of the Chairman to resign as Chairman of the Board at any time.     
 7.2 Termination Upon Death,
Disability or Other Circumstances. In the event that the Chairman’s service as Chairman of the Board is terminated at any time prior to the expiration of the Term (including any extension thereof) as a result of his death, Disability,
resignation for Good Reason, removal by the Company without Cause, or termination for any other reason other than his voluntary resignation or removal by the Company for Cause, then the Chairman shall be entitled to receive (i) all compensation
earned but unpaid through the date of such termination and all compensation that he would have received pursuant to Section 5 of this Agreement for the remainder of the Term, which amounts shall be paid to him within thirty (30) days
following the date of such termination, and (ii) reimbursement of any unreimbursed lodging, meals, travel and other business expenses incurred by the Chairman prior to the date of such termination. 

7.3 Termination Upon Voluntary Resignation or For Cause. In the event that the Chairman’s service as Chairman of the Board is
terminated at any time prior to the expiration of the Term (including any extension thereof) as a result of his voluntary resignation or removal 

  
 3 

 
by the Company for Cause, then the Chairman shall be entitled to receive (i) all compensation earned but unpaid through the date of such termination, which amount shall be paid within thirty
(30) days following the date of such termination, and (ii) reimbursement of any unreimbursed lodging, meals, travel and other business expenses incurred by the Chairman prior to the date of such termination. 

7.4 Definitions. As used in this Section 7, 

(1) “Cause ” shall mean any of the following grounds for removal of the Chairman as Chairman of the Board: (a) the
Chairman’s commission of, or indictment for, or formal admission to a felony, any crime of moral turpitude, dishonesty, or any crime involving the Company; (b) the Chairman’s engagement in fraud, misappropriation or embezzlement; or
(c) the Chairman’s continual failure to substantially perform his duties and responsibilities under this Agreement (other than a failure resulting from the Chairman’s incapacity due to physical or mental illness), and such failure has
continued for a period of at least thirty (30) days after a written notice of demand for performance, signed by a duly authorized officer of the Company, has been delivered to the Chairman specifying the manner in which the Chairman has failed
to substantially perform. 
 (2) “Disability” shall mean any physical or mental disability or infirmity that prevents the
performance of the Chairman’s duties (despite reasonable accommodations) for a period of (i) one hundred twenty (120) consecutive days or (ii) one hundred eighty non-consecutive days during
any twelve (12) month period. 
 (3) “Good Reason” shall mean, without the Chairman’s consent: (a) the material
reduction of the Chairman’s title, authority, duties and responsibilities, or the assignment to the Chairman of duties materially inconsistent with the Chairman’s position with the Company; (b) a reduction in the compensation of the
Chairman; (c) a relocation of the Chairman’s office location from the Company’s headquarters at Two Logan Square, 100 N. 18th Street, 23rd Floor, Philadelphia, PA 19103; or (d) the Company’s material and willful breach of
this Agreement. 
 8. Effect of Section 409A of the Code. Notwithstanding anything to the contrary in this
Agreement, if the Company reasonably determines (a) that on the date the Chairman’s service as a member of the Board terminates or at such other time that the Company determines to be relevant, the Chairman is a “specified
employee” (as such term is defined under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)) of the Company and (b) that any payments to be provided to the Chairman pursuant to this Agreement are or
may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code (“Section 409A Taxes”) if provided at the time otherwise required under
this Agreement then such payments shall be delayed until the date that is six months after date of the Chairman’s “separation from service” (as such term is defined under Section 409A of the Code) with the Company after the
Commencement Date, or such shorter period that, as determined by the Company, is sufficient to avoid the imposition of Section 409A Taxes, at which time the entire amount of the delayed payments shall be paid to the Chairman in a single lump
sum. The provisions of this Section 8 shall only apply to the minimum extent required to avoid the Chairman’s incurrence of any Section 409A Taxes. 

  
 4 

 9. Excise Tax. 

9.1 Gross-up Payment. In the event that the Chairman shall become entitled to payments and/or
benefits provided by this Agreement or any other amounts in the nature of compensation (whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement with the Company, any person whose actions result in a
change of ownership or effective control covered by Section 280G(b)(2) of the Code or any person affiliated with the Company or such person) as a result of such change in ownership or effective control (collectively the “Company
Payments”), and such Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority) the Company shall pay to the
Chairman at the time specified in Section 9.4 below an additional amount (the “Gross-up Payment”) such that the net amount retained by the Chairman, after deduction of any Excise Tax on the
Company Payments and the Gross-up Payment and any federal, state, and local income or payroll tax upon the Gross-up Payment provided for by this Section 9.1, but
before deduction for any federal, state, and local income or payroll tax on the Company Payments, shall be equal to the Company Payments. 

9.2 Determination of Excise Tax Payments. For purposes of determining whether any of the Company Payments and Gross-up Payments (collectively the “Total Payments”) will be subject to the Excise Tax and the amount of such Excise Tax, (i) the Total Payments shall be treated as “parachute payments”
within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless
and except to the extent that, in the opinion of the Company’s independent certified public accountants appointed prior to any change in ownership (as defined under Section 280G(b)(2) of the Code) or tax counsel selected by such
accountants (the “Accountants”) such Total Payments (in whole or in part) either do not constitute “parachute payments,” represent reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code in excess of the “base amount” or are otherwise not subject to the Excise Tax, and (ii) the value of any non-cash benefits or any deferred payment or benefit
shall be determined by the Accountants in accordance with the principles of Section 280G of the Code. 
 9.3 Adjustment of Gross-Up Payments. For purposes of determining the amount of the Gross-up Payment, the Chairman shall be deemed to pay federal income taxes at the highest marginal rate of
U.S. federal income taxation in the calendar year in which the Gross-up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the
Chairman’s residence for the calendar year in which the Company Payment is to be made, net of the maximum reduction in U.S. federal income taxes which could be obtained from deduction of such state and local taxes if paid in such year. In the
event that the Excise Tax is subsequently determined by the Accountants to be less than the amount taken into account hereunder at the time the Gross-up Payment is made, the Chairman shall repay to the
Company, at the time that the amount of such reduction in Excise Tax is finally 

  
 5 

 
determined, the portion of the prior Gross-up Payment attributable to such reduction (plus the portion of the
Gross-up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the portion of the Gross-up Payment being repaid by the Chairman if
such repayment results in a reduction in Excise Tax or a federal, state and local income tax deduction), plus interest on the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the Code. Notwithstanding the foregoing, in
the event any portion of the Gross-up Payment to be refunded to the Company has been paid to any federal, state and local tax authority, repayment thereof (and related amounts) shall not be required until
actual refund or credit of such portion has been made to the Chairman, and interest payable to the Company shall not exceed the interest received or credited to the Chairman by such tax authority for the period it held such portion. The Chairman and
the Company shall mutually agree upon the course of action to be pursued (and the method of allocating the expense thereof) if the Chairman’s claim for refund or credit is denied. 

In the event that the Excise Tax is later determined by the Accountants or the Internal Revenue Service (or pursuant to Section 9.5
below) to exceed the amount taken into account hereunder at the time the Gross-up Payment is made (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-up Payment), the Company shall make an additional Gross-up Payment in respect of such excess (plus any interest or penalties payable with respect to such excess) at the
time that the amount of such excess is finally determined. 
 9.4 Payment Date. The Gross-up
Payment or portion thereof provided for in this Section 9 shall be paid not later than the thirtieth (30th) day following an event occurring which subjects the Chairman to the Excise Tax; provided, however, that if the amount of such Gross-up Payment or portion thereof cannot be finally determined on or before such day, the Company shall pay to the Chairman on such day an estimate, as determined in good faith by the Accountant, of the minimum
amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code), subject to further payments pursuant to Section 9.3 hereof, as soon as the amount
thereof can reasonably be determined, but in no event later than the ninetieth (90th) day after the occurrence of the event subjecting the Chairman to the Excise Tax. In the event that the amount of the estimated payments exceeds the amount
subsequently determined to have been due, such excess shall be immediately repaid by the Chairman to the Company. 
 9.5
Chairman’s Right to Independent Review of Accountants’ Determination. The Company shall cause the Accountants to provide their determinations made under this Section 9 in writing, together with
detailed supporting documentation, to the Chairman as soon as practicable after the date that they have been reviewed and approved by the Company. The Chairman shall have the right to engage an independent accountant and/or tax counsel of his own
choosing to review the determination of the Accountants at Chairman’s expense. In the event that such review raises any questions or concerns about the calculations or determinations made by the Accountants, the parties shall work in good faith
to resolve such issues. 

  
 6 

 9.6 IRS Controversy. In the event of any controversy with the Internal Revenue Service (or
other taxing authority) with regard to the Excise Tax, the Chairman shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the Chairman, but the
Chairman shall control any other issues. In the event the issues are interrelated, the Chairman and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue, but if the parties cannot agree the Chairman shall make
the final determination with regard to the issues. In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, the Chairman shall permit the representative of the Company to accompany the Chairman, and
the Chairman and the Chairman’s representative shall cooperate with the Company and its representative. 
 9.7 Accountant
Charges. The Company shall be responsible for all charges of the Accountants. 
 9.8 Copies of Communications. The Company and the
Chairman shall promptly deliver to each other copies of any written communications, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Section 9. 

10. Liability Insurance; Indemnification. 

10.1 D&O Insurance Coverage. During the Term and for a period of not less than six (6) years thereafter, the Company shall
maintain in effect a directors and officers liability insurance policy that covers the Chairman with liability coverage that is not less than that currently maintained by the Company. 

10.2 Indemnification. The Company shall indemnify the Chairman in his capacity as Chairman and a member of the Board and advance costs
in connection therewith to the fullest extent permitted by the bylaws and other governing documents of the Company and applicable law against all claims, demands, actions, suits, proceedings, debts, losses, liabilities, judgments, costs, charges or
expenses incurred or sustained by the Chairman in connection with any action, suit or proceeding to which the Chairman may be made a party by reason of his being or having been Chairman of the Board or a member of the Board, or because of any
actions taken by the Chairman in good faith which were believed by the Chairman to be in the best interests of the Company. The obligations of the Company under the indemnification provisions of the bylaws of the Company as in effect on the date
hereof shall be deemed incorporated herein, and no amendment, modification or repeal thereof shall affect, to the detriment of the Chairman and his heirs, executors, administrators and estate, such obligations in connection with any claim based on
any act or failure to act occurring before such amendment, modification or repeal. 

  
 7 

 11. Miscellaneous. 

11.1 Notices. All notices or communications hereunder shall be in writing, addressed as follows: 

To the Company: 
 RAIT Financial
Trust 
 Two Logan Square 

100 N. 18th Street,
23rd Floor 
 Philadelphia, PA 19103-2707 

To the Chairman: 
 Michael J.
Malter 
 Most recent address given to the Company 

All such notices shall be conclusively deemed to be received and shall be effective, (i) if sent by hand delivery or courier, upon
receipt, (ii) if sent by telecopy or facsimile transmission, upon confirmation of receipt by the sender of such transmission, or (iii) if sent by registered or certified mail, on the fifth day after the day on which such notice is mailed.
Each party shall promptly notify the other of any change in its notification address, and until such notice is received, each party is entitled to rely on the address in this Agreement or the last revised address actually supplied by the other
party. 
 11.2 Severability. Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement. 
 11.3 Successors; Assignment. This Agreement shall be binding upon and
inure to the benefit of (a) the heirs, beneficiaries, executors and legal representatives of the Chairman, and (b) the successors and permitted assigns of the Company. This Agreement shall not be assignable by the Chairman or the Company
without the prior written consent of the other party. 
 11.4 Legal Expenses. The Company shall pay or reimburse the Chairman for the
reasonable legal fees and costs that he has incurred or hereafter may incur in connection with the preparation, negotiation and enforcement of this Agreement. 

11.5 Arbitration of Disputes. In the event that the parties hereto have any dispute under this Agreement, the parties shall first
attempt in good faith amicably to settle the matter by mutual negotiations or mediation. If such negotiations are unsuccessful, the parties agree that all disputes that may arise between them arising out of, relating to, or in connection with this
Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof shall be settled by binding arbitration to be held in Philadelphia, Pennsylvania, or such other location agreed by the parties hereto, in
accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator
shall be final, conclusive and binding on the parties to 

  
 8 

 
the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The arbitrators shall apply Pennsylvania law to the merits of dispute or claim,
without reference to rules of conflicts of law. The Chairman and the Company hereby expressly consent to the personal jurisdiction of the state and federal courts located in Philadelphia, Pennsylvania, for any action or proceeding arising from or
relating to this Agreement or relating to any arbitration in which the parties are participants. The Company shall pay all costs and expenses of such arbitration (unless the Chairman requests that each party pay
one-half of the costs and expenses of such arbitration or unless otherwise required by law). Unless otherwise required by law or pursuant to an award by the arbitrator, the Company and the Chairman shall each
pay separately its counsel fees and expenses. Notwithstanding the foregoing, the arbitrator may, but need not, award the prevailing party in any dispute its or his legal fees and expenses. 

11.6 No Oral Modification, Cancellation or Discharge. This Agreement may only be amended, canceled or discharged by a written document
signed by the parties hereto. 
 11.7 Survivorship. The respective rights and obligations of Company and the Chairman hereunder shall
survive any termination of the Chairman’s service as a member of the Board to the extent necessary to the intended preservation of such rights and obligations. 

11.8 Governing Law. This Agreement shall be construed, interpreted, and governed in accordance with the laws of the Commonwealth of
Pennsylvania without reference to rules relating to conflicts of law. 
 11.9 Entire Agreement. This Agreement represents the entire
agreement of the parties and shall amend and restate the Original Agreement in its entirety and supersede any and all other previous contracts, arrangements or understandings between the Company and the Chairman setting forth the terms and
conditions of the Chairman’s service as Chairman of the Board. 
 [signatures appear on next page] 

  
 9 

 IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and the Chairman
has hereunto set his hand, as of the day and year first above written, to be effective as of the day and year first above written.     
  

	
	RAIT FINANCIAL TRUST
	
	 /s/ Justin P. Klein

	Justin P. Klein
	Chair, Nominating and Governance Committee of the Board of Trustees
	
	 /s/ Michael J. Malter

	Michael J. Malter
	Chairman of the Board

 Schedule A 

Board level responsibilities: 
  

	 	•	 	Organize and lead the Board. 

  

	 	•	 	Promote a defined “RAIT culture” at the Board level. 

  

	 	•	 	Review agenda of Board meetings to ensure all appropriate topics are covered. 

  

	 	•	 	Promote a learning environment by identifying and providing appropriate training at Board level. 

 Board
Committee level responsibilities: 
  

	 	•	 	Attends the meetings of the following standing Committees of the Board: the Compensation Committee (the “Compensation Committee”), the Nominating Committee and the Risk Management Committee (the “Risk
Management Committee”). Attends meetings of the Audit Committee of the Board (the “Audit Committee”) when requested by the Audit Committee Chairman. 

 

	 	•	 	Works with Compensation Committee to determine executive officer compensation. 

  

	 	•	 	Participates with the Nominating Committee Chairman in evaluating performance of individual Trustees. 

  

	 	•	 	Reviews agendas of the standing Committees he attends to ensure appropriate topics are covered. 

 CEO level
responsibilities: 
  

	 	•	 	Guides CEO in determining strategy of RAIT 

  

	 	•	 	Reviews strategic plan and seeks to cause the Board to reach a consensus 

  

	 	•	 	With Nominating Committee Chairman and CEO, decides on skillsets needed for the Board, matches skillsets of current Trustees to those needed, makes changes as necessary and identifies and recruits new Trustees.

  

	 	•	 	Assist CEO in describing RAIT’s vision to major shareholders. 

  

	 	•	 	Brief CEO on issues arising from Board executive sessions. 

  

	 	•	 	Serve as mentor to CEO. 

 Corporate Level Responsibilities: 

 

	 	•	 	Work with Compensation Committee to review company-wide compensation. 

  

	 	•	 	Guide the Board in assessing performance versus strategy and circumstances. 

  

	 	•	 	Chair Annual Meetings of Shareholders and Board meetings.

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