Document:

EX-10.5

WARRANT ISSUANCE AGREEMENT

This WARRANT ISSUANCE AGREEMENT (this “Agreement”) is made and entered into as of
September 19, 2008 by and between RAIT FINANCIAL TRUST, a Maryland real estate investment trust
(the “Company”), and Cedric LLC, a Delaware limited liability company or its registered
assigns or successors (the “Recipient”).

The Company desires to issue and the Recipient desires to receive a warrant substantially in
the form attached hereto as Exhibit A (the “Warrant”) to purchase shares of the Company’s
common shares of beneficial interest as described therein (the “Warrant Shares”), on the
terms and conditions set forth herein, in partial consideration for the Recipient (i) entering into
that certain Agency Agreement, dated as of the Effective Date (as amended, restated, supplemented
or otherwise modified from time to time, the “Agency Agreement”), between the Recipient,
Cedric LLC as calculation agent, and Wilmington Trust Company (“WTC”) and (ii) providing
the financing for that certain Master Repurchase Agreement, dated as of the Effective Date (as
amended, restated, supplemented or otherwise modified from time to time, the “Repurchase
Agreement”), by and between Taberna Loan Holdings I, L.L.C, as Seller and WTC, as agent for the
Recipient, as Buyer.

Terms used herein without definition which are defined in the Repurchase Agreement have the
meanings ascribed to them therein, unless otherwise indicated or the context clearly requires
otherwise.

In consideration of the foregoing and of the representations, warranties, covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Purchase of Warrant. Subject to the terms and conditions of this Agreement, the
Recipient agrees to receive the Warrant from the Company and the Company agrees to issue to the
Recipient the Warrant in partial consideration for the Recipient entering into the Agency Agreement
and providing the financing pursuant to the Repurchase Agreement. The Warrant shall be issued to
the Recipient upon execution of the Agency Agreement and the Repurchase Agreement.

2. Representations and Warranties of the Company. In connection with the issuance of
the Warrant, the Company represents and warrants to the Recipient as of the date hereof as follows:

2.1 Organization. The Company is a real estate investment trust duly formed, validly
existing and in good standing under the laws of the State of Maryland and has all requisite power
and authority to execute, deliver and perform its obligations under this Agreement. Each
Subsidiary of the Company (a) is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, (b) has the corporate power and authority, and the
legal right, to own and operate its Property, to lease the Property it operates as lessee and to
conduct the business in which it is currently engaged, and (c) is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith could not, in the
aggregate, have a Material Adverse Effect.

2.2 Capitalization. The authorized and issued capital of the Company consists, or will
consist, immediately prior to the consummation of the transactions contemplated by this Agreement
and the Repurchase Agreement, of:

(a)

	 	i.	 	200,000,000
Common Shares of the Company authorized; 64,901,929
Common Shares of the Company outstanding,

	 	ii.	 	25,000,000
preferred shares of the Company authorized;

	 	iii.	 	2,760,000 shares
of 7.75% Series A cumulative redeemable preferred shares
of beneficial interest outstanding;

	 	iv.	 	2,258,300 shares
of 8.375% Series B cumulative redeemable preferred
            shares of beneficial interest outstanding;

	 	v.	 	1,600,000 shares
of 8.875% Series C cumulative redeemable preferred
            shares of beneficial interest outstanding;

	 	vi.	 	695,077 Common
Shares reserved for issuance under outstanding options,
phantom shares or phantom units granted under the
Company’s incentive award plan, or any predecessor or
additional equity compensation plans adopted by the
Company (2,998,218 Common Shares remain available for
issuance under the Company’s incentive award plan);

	 	vii.	 	12,192,145 Common
Shares which have been registered for resale upon
conversion of the Company’s 6.875% Convertible Senior
Notes due 2027.

(b) Except for the common shares of beneficial interest (“Common Shares”), outstanding
options, phantom shares, phantom units, convertible debt instruments and preferred shares of
beneficial interest, each as described above, capital issued or issuable under the Company’s
incentive award plan (or any successor or additional equity compensation plan adopted by the
Company), capital issued or issuable under the Company’s dividend reinvestment and share purchase
plan (or any successor or additional dividend reinvestment and share purchase plan adopted by the
Company) or capital issuable pursuant to (a)(vii) above, and the Warrant to be issued hereunder,
there is no additional outstanding capital stock and there are no outstanding options, warrants,
rights (including conversion or preemptive rights and rights of first refusal or similar rights) or
agreements, orally or in writing, for the purchase or acquisition from the Company of any shares of
its capital stock or all or substantially all of the assets of the Company, whether by purchase,
merger, reorganization, recapitalization or otherwise.

2.3 Authorization. All corporate action on the part of the Company, its officers,
directors and shareholders necessary for the authorization, execution and delivery of this
Agreement and the Warrant (as such may be amended or modified from time to time, together, the
“Transaction Agreements”), the performance of all obligations of the Company hereunder and
thereunder and the authorization, issuance (or reservation for issuance) and delivery of the Common
Shares issuable upon exercise of the Warrant, has been taken or will be taken prior to the date
hereof, and this Agreement, when executed and delivered by the Company, shall constitute a valid
and legally binding obligation of the Company, enforceable against the Company in accordance with
its terms except as limited by applicable bankruptcy or insolvency laws.

2.4 Governmental Consents. No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any federal, state or local
governmental authority on the part of the Company is required in connection with the consummation
of the transactions contemplated by any of the Transaction Agreements, except for filings pursuant
to applicable state securities laws and the Securities Act of 1933, as amended (the “Act”),
which filings will be effected within the time prescribed by law.

2.5 Compliance with Other Instruments. The execution, delivery and performance of the
Warrant and the consummation of the transactions contemplated hereby or thereby do not and will not
result in any such violation or conflict, or constitute, with or without the passage of time and
giving of notice, either a default or breach under any such provision, instrument, judgment, order,
writ, decree, mortgage, agreement or contract.

2.6 Offering. Assuming the accuracy of the representations and warranties of the
Recipient contained in Section 3 hereof, the offer, issue and sale of the Warrant is exempt from
the registration and prospectus delivery requirements of the Act, and has been registered or
qualified (or are exempt from registration and qualification) under the registration, permit or
qualification requirements of all applicable state securities laws.

2.7 Litigation. No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of the Company, threatened by
or against or involving the Company or any of its Subsidiaries with respect to the issuance of the
Warrant, the Warrant Shares or the performance by the Company of its obligations hereunder or
thereunder. Neither the Company nor any of its Subsidiaries is in default with respect to any
order, writ, injunction, judgment, decree or rule of any court, governmental authority or
arbitration board or tribunal with respect to the issuance of the Warrant, the Warrant Shares or
the performance by the Company of its obligations hereunder or thereunder.

2.8 Tax Matters.

(a) The Company and its Subsidiaries have filed all necessary federal, state and foreign
income and franchise tax returns or have duly requested extensions thereof and have paid all taxes
required to be paid by any of them and, if due and payable, any related or similar assessment,
fine, or penalty levied against any of them, except for any such tax, assessment, fine or penalty
that is being contested in good faith and by appropriate proceedings and for which adequate
reserves have been provided. The Company and its Subsidiaries have made adequate charges, accruals
and reserves in the applicable financial statements in respect of all federal, state and foreign
income and franchise taxes for all periods as to which the tax liability of the Company and its
subsidiaries have not been finally determined. The Company has no knowledge of any tax deficiency
that has been or might be asserted or threatened against the Company.

(b) On the Closing Date, all stock transfer taxes or other similar fees or charges (other than
income taxes) under federal law or the laws of any state, or any political subdivisions thereof,
that are required to be paid in connection with the sale and transfer of the Warrants to be sold to
the Recipient hereunder will have been, fully paid or provided for by the Company and all laws
imposing such taxes will have been fully complied with.

(c) The Company, (i) for its current “tax year” (as defined in the Code) is, and for all
future tax years will be, organized in conformity with the requirements for qualification as a
REIT, and its actual method of operations and its proposed method of operations will enable it to
meet the requirements for qualification and taxation as a REIT, (ii) for all prior tax years
qualified as, a REIT as defined in Section 856 of the Code and is and was entitled to a dividends
paid deduction under Section 857 of the Code with respect to dividends paid by it with respect to
each taxable year for which it claims or claimed a deduction on its Form 1120- REIT filed with the
United States Internal Revenue Service for such year.

2.9 Brokers. There are no claims for brokerage commissions, finder’s fees or
investment banking fees in connection with the transactions contemplated by this Agreement.

3. Representations and Warranties of the Recipient. In connection with the purchase
of the Warrant, the Recipient represents and warrants to the Company as of the date hereof as
follows:

3.1 Sophistication. The Recipient is aware of the Company’s business affairs and
financial condition, and has acquired information about the Company sufficient to reach an informed
and knowledgeable decision to acquire this Warrant. The Recipient is acquiring the Warrant for its
own account for investment purposes only and not with a view to, or for the resale in connection
with, any “distribution” thereof in violation of the Act.

3.2 Lack of Registration. The Recipient understands that the Warrant and the shares
of Common Shares issuable upon exercise of the Warrant (collectively, the “Securities”)
have not been registered under the Act in reliance upon a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of the Recipient’s investment
intent as expressed herein.

3.3 Holding Period. The Recipient further understands that the Securities must be
held indefinitely unless subsequently registered under the Act and qualified under any applicable
state securities laws, or unless exemptions from registration and qualification are otherwise
available. The Recipient is aware of the provisions of Rule 144, promulgated under the Act.

3.4 Accredited Investor; Residence. The Recipient is an “accredited investor” as such
term is defined in Rule 501 of Regulation D promulgated under the Act and is a Delaware limited
liability company whose principal office is located in New York.

4. Legends. The Recipient acknowledges and understands that the instruments
evidencing the Securities shall bear the legends as specified in the Warrant (and any other legends
required under state or federal securities laws in the opinion of legal counsel for the Company).

5. Indemnification.

5.1 In consideration of the Recipient’s execution and delivery of this Agreement and acquiring
the Warrant hereunder and, in addition to all other obligations of the Company under this
Agreement, the Company shall defend, protect, indemnify and hold harmless the Recipient from and
against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees,
liabilities and damages and expenses in connection therewith (irrespective of whether the Recipient
is a party to the action for which indemnification hereunder is sought), and including reasonable
attorneys’ fees and disbursements, incurred by the Recipient as a result of the breach of any
representation or warranty of the Company contained in this Agreement.

5.2 In consideration of the Company’s execution and delivery of this Agreement and issuing the
Warrant hereunder and, in addition to all other obligations of the Recipient under this Agreement,
the Recipient shall defend, protect, indemnify and hold harmless the Company from and against any
and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages and expenses in connection therewith (irrespective of whether the Company is a party to the
action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and
disbursements incurred by the Company as a result of the breach of any representation or warranty
of the Recipient contained in this Agreement.

6. General Provisions.

6.1 Entire Agreement; Severability. This Agreement shall supersede any existing
agreements between the parties containing general terms and conditions for repurchase transactions.
Each provision and agreement herein shall be treated as separate and independent from any other
provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any
such other provision or agreement..

6.2 Successors and Assigns. This Agreement and the rights evidenced hereby shall
inure to the benefit of and be binding upon the successors and assigns of the parties hereto, to
the extent provided herein, and shall be enforceable by such parties, except that the Company may
not assign or transfer any of its rights or obligations under this Agreement without the prior
written consent of the Recipient (and any such purported assignment or transfer by the Company
without such consent of the Recipient shall be null and void).

6.3 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

6.4 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

(a) THE PARTIES HERETO HEREBY AGREE TO THE NON–EXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. PARTIES HERETO HEREBY WAIVE ANY OBJECTION
BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY
OF THE AFOREMENTIONED COURTS AND CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
DEEMED APPROPRIATE BY SUCH COURT.

(b) TO THE EXTENT PERMITTED BY APPLICABLE LAW, PARTIES HERETO HEREBY WAIVE ANY RIGHT TO HAVE A
JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
THE PARTIES HERETO AND THEIR AFFILIATES, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL
TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS WARRANT AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN
A BENCH TRIAL WITHOUT A JURY.

6.5 Counterparts. This Warrant Agreement may be executed in any number of
counterparts, each of which counterparts shall be deemed to be an original, and such counterparts
shall constitute but one and the same instrument.

6.6 Waiver or Amendment. No amendment, waiver or other modification of any provision
of this Agreement is effective without the written agreement of the parties hereto. Any waiver or
consent shall be effective only in the specific instance and for the specific purpose for which
given. Any provision of this Agreement may be waived by the either of parties hereto; provided,
that no failure or delay on the part of the waiving party in exercising any right, power or
privilege hereunder and no course of dealing with respect to any right, power or privilege
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege hereunder. The rights, powers and remedies herein expressly
provided are cumulative and not exclusive of any rights, powers or remedies which either of the
parties hereto would otherwise have. No notice to or demand on the Company in any case entitles
the Company to any other or further notice or demand in similar or other circumstances or
constitutes a waiver of the rights of the Recipient to any other or further action in any
circumstances without notice or demand.

6.7 Remedies. The Company stipulates that the remedies at law of the Recipient in the
event of any default or threatened default by the Company in the performance of or compliance with
any of the terms of this Agreement may not be adequate and that, to the fullest extent permitted by
law, 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. No remedy conferred in this Agreement on the Recipient is intended to be exclusive of
any other remedy, and each and every such remedy shall be cumulative and shall be in addition to
every other remedy given hereunder or under any other agreement, document or instrument or now or
hereafter existing at law or in equity or by statute or otherwise.

6.8 Acknowledgement.Error! Bookmark not defined. Each party hereto hereby
acknowledges that it has been advised by counsel in the negotiation, execution and delivery of this
Warrant Agreement.

[Remainder of page intentionally left blank]

1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and
year first set forth above.

	 	 	 	COMPANY:

	 	 	 	RAIT
FINANCIAL TRUST

a Maryland real estate investment trust

	 	 	 	By:
 /s/ Jack E.
Salmon     

	 	 	Name: Jack E. Salmon

Title: Chief Financial Officer

2

	 	 	 
	RECIPIENT:

	Cedric LLC

	By:

	 	/s/ Joseph R. Wekselblatt      
	
 
	 	 

	 	 	Name: Joseph R. Wekselblatt

Title: Chief Financial Officer

3

EXHIBIT A

Form of Warrant

4EX-10.6

NEITHER THIS WARRANT NOR THE COMMON SHARES OF BENEFICIAL INTEREST ISSUABLE UPON EXERCISE
HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE
TRANSFERRED IN THE ABSENCE OF REGISTRATION THEREUNDER OR AN EXEMPTION THEREFROM AND ARE SUBJECT TO
RESTRICTIONS ON EXERCISE AND TRANSFERS SET FORTH HEREIN. ANY WARRANT SHARES ISSUED PURSUANT HERETO
WILL BE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH HEREIN.

SERIES A WARRANT AGREEMENT

To Purchase 250,000 Common Shares of Beneficial Interest of

RAIT FINANCIAL TRUST

As of September 19, 2008

1

TABLE OF CONTENTS

Page

	1.	 	DEFINITIONS.

	 	1.1	 	Definitions of Terms.	 

	2.	 	EXERCISE OF WARRANT.

	 	 	 
	2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

	 	Right to Exercise; Notice.

Vesting.

Cash Exercise.

Conversion.

Issuance of Warrant Shares.

Effectiveness of Exercise.

Fractional Shares.

Warrant Share Rights.

	3.	 	REGISTRATION, TRANSFER, EXCHANGE AND REPLACEMENT OF SECURITIES; LEGENDS.

	 	 	 
	3.1

3.2

3.3

3.4

3.5

3.6

3.7

	 	Warrant Transferable.

Put Option.

Restrictions on Transfer.

Discretionary Offer of Redemption .

Warrant Exchangeable for Different Denominations.

Replacement.

Legends.

	4.	 	ANTI-DILUTION PROVISIONS.

	 	 	 
	4.1

4.2

4.3

	 	Adjustment of Number of Shares Purchasable.

Adjustment of Exercise Price.

Certificates and Notices.

	5.	 	RESERVATION OF SHARES.

	6.	 	VARIOUS COVENANTS.

	 	 	 
	6.1

6.2

6.3

6.4

6.5

	 	No Impairment or Amendment.

Certain Expenses.

Financial Information; Inspection Rights.

Registration of Warrants and Warrant Shares.

Listing On Securities Exchanges.

	7.	 	MISCELLANEOUS.

	 	 	 
	7.1

7.2

7.3

7.4

7.5

7.6

7.7

7.8

7.9

7.10

7.11

7.12

Exhibits

	 	No Voting Rights; Limitations of Liability.

Waiver or Amendment.

Notices.

Remedies.

Successors and Assigns.

GOVERNING LAW.

SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

Headings.

Entire Agreement; Severability.

Counterparts.

Acknowledgement.

Termination.

	 

	 	

	Exhibit 1

Exhibit 2

	 	Form of Notice of Exercise

Form of Assignment

2

NEITHER THIS WARRANT NOR THE COMMON SHARES OF BENEFICIAL INTEREST ISSUABLE UPON EXERCISE
HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE
TRANSFERRED IN THE ABSENCE OF REGISTRATION THEREUNDER OR AN EXEMPTION THEREFROM AND ARE SUBJECT TO
RESTRICTIONS ON EXERCISE AND TRANSFERS SET FORTH HEREIN. ANY WARRANT SHARES ISSUED PURSUANT HERETO
WILL BE SUBJECT TO RESTRICTIONS ON TRANSFER SET FORTH HEREIN.

SERIES A WARRANT AGREEMENT

To Purchase 250,000 Common Shares of Beneficial Interest of

RAIT FINANCIAL TRUST

as of September 19, 2008

THIS IS TO CERTIFY that, for value received, CEDRIC LLC, a Delaware limited liability company
or its registered assigns or successors (collectively, referred to herein as the “Holder”
or “Holders”), is entitled upon the due exercise hereof at any time during the Exercise
Period (as hereinafter defined) to purchase, in the aggregate, 250,000 Common Shares of RAIT
FINANCIAL TRUST, a Maryland real estate investment trust (the “Company”), at an initial
Exercise Price of $6.00 per share of Common Shares (such Exercise Price and the number of Common
Shares purchasable hereunder being subject to adjustment as provided herein), and to exercise the
other rights, powers and privileges hereinafter provided, all on the terms and subject to the
conditions hereinafter set forth.

This Series A Warrant Agreement is one of one or more Warrant Agreements (collectively, the
“Warrant Agreement”) entered into in connection with (i) that certain Agency Agreement,
dated as of September 19, 2008 (as amended, restated, supplemented or otherwise modified from time
to time, the “Agency Agreement”), between Cedric LLC (“Cedric”), Cedric LLC as
calculation agent, and Wilmington Trust Company (“WTC”) and (ii) those certain Repurchase
Agreements (as defined below).

1. Definitions.

1.1 Definitions of Terms. Terms used herein without definition which are defined in
the Repurchase Agreement have the meanings ascribed to them therein, unless the context clearly
requires otherwise. In addition, the terms defined in this Section 1, whenever used and
capitalized in this Warrant, have, unless the context otherwise requires, the following respective
meanings:

“Accelerated Filer” has the meaning ascribed to it in Rule 12b-2 to the Rules and
Regulations under the Securities Exchange Act.

“Accredited Investor” has the meaning ascribed to it in Rule 501 of Regulation D
promulgated under the Securities Act of 1933, as amended.

“Action” means any legal, administrative, regulatory or other suit, action, claim,
audit, assessment, arbitration or other proceeding, investigation or inquiry.

“Affiliate” means as to any Person, any other Person (other than a Subsidiary) which,
directly or indirectly, is in control of, is controlled by, or is under common control with, such
Person; provided, that no shareholder of the Company shall be deemed an Affiliate of any
other shareholder solely by reason of any investment in the Company. For purposes of this
definition, “control” of a Person (including, with its correlative meanings, “controlled by” and
“under common control with”) means the power, directly or indirectly, either to (a) vote 10% or
more of the securities having ordinary voting power for the election of directors of such Person or
(b) direct or cause the direction of the management and policies of such Person, whether by
contract or otherwise.

“Agency Agreement” has the meaning specified in the preamble to this Warrant.

“Assignment” means the Form of Assignment attached as Exhibit 2 to this
Warrant.

“Black-Scholes Price” means the value of the Warrant determined by use of the
Black-Scholes option pricing model reflecting (a) a risk-free interest rate corresponding to the
U.S. Treasury rate for a period equal to the remaining term of the Warrant as of such date such
value is determined and (b) an expected volatility equal to (i) the greater of 60% and, to the
extent applicable, the 100-day volatility obtained from the historical price volatility function on
Bloomberg, or (ii) if, and only if, such value is determined upon exercise of the put option in
connection with a failure to register the Registrable Securities in the time allotted pursuant to
Section 6.4(a), 66%.

“Bloomberg” has the meaning set forth in Section 1.1 within the definition of “Market
Price”.

“Business Day” means any day except a Saturday, a Sunday or other day on which
commercial banks in New York are authorized by law to close.

“Change of Control” means the occurrence of any of the following:

(a) a merger, consolidation, reorganization, recapitalization or share exchange
(whether or not the Company is the surviving and continuing entity) in which the
shareholders of the Company immediately prior to such transaction receive, in exchange for
securities of the Company owned by them (whether alone or together with cash, property or
other securities), cash, property or securities of the resulting or surviving entity and, as
a result thereof, Persons who were holders of voting securities of the Company immediately
prior to such transaction hold less than fifty percent (50%) of the equity securities,
calculated on a fully diluted basis, of the resulting or surviving entity entitled to vote
in the election of directors, managers or similar governing body or otherwise; and

(b) a sale, transfer or other disposition in a single transaction or series of related
transactions of all or substantially all of the assets of the Company and its Subsidiaries,
taken as a whole.

“Common Shares” means the common shares of beneficial interest, par value of $0.01 per
share, of the Company and any capital stock into which such common shares of beneficial interest
hereafter may be changed.

“Company” has the meaning specified in the preamble to this Warrant.

“Company Competitor” means any Person who is engaged or who has an Affiliate that is
engaged in the business of real estate finance or investment in real estate securities, or any
other business that is then being conducted by the Company.

“Confidential Information” has the meaning specified in Section 6.3(c).

“Convertible Securities” means evidences of indebtedness, Equity Securities or other
securities which are convertible into or exchangeable or exercisable for, with or without payment
of additional consideration, Common Shares, either immediately or upon the arrival of a specified
date or the happening of a specified event.

“Designated Transferee” has the meaning specified in Section 2.3.

“Effective Date” means December 19, 2008.

“Equity Securities” means, without duplication with any Common Shares or other equity
securities, any rights, warrant, options, phantom shares, phantom units, convertible debt
instruments and other convertible securities, Purchase Rights or indebtedness, exchangeable
securities or indebtedness, or other rights, exercisable for or convertible or exchangeable into,
directly or indirectly, Common Shares, whether at the time of issuance or upon the passage of time
or the occurrence of some future event.

“Exercise Period” means the period commencing on the Effective Date and terminating on
September 19, 2011.

“Exercise Price” means $6.00 per Common Share, as such price may be adjusted pursuant
to Section 4.

“Holder” has the meaning specified in the preamble to this Warrant.

“Issuance Agreement” has the meaning specified in Section 4.1(c).

“Issuer Free Writing Prospectus” means an issuer free writing prospectus, as defined
in Rule 433 under the Securities Act, relating to an offer of the Registrable Securities.

“Large Accelerated Filer” has the meaning ascribed to it in Rule 12b-2 to the Rules
and Regulations under the Securities Exchange Act.

“Market Price” means, for any security as of any date, the summary volume-weighted
average price, rounded to four decimal places, for such security on all reported exchanges during
the period beginning at 9:30 a.m., New York City Time, and ending at the closing of such exchange,
at or about 4:00 p.m., New York City Time, as reported by Bloomberg, L.P. (or any successor
thereto, “Bloomberg”) through its “Volume at Price” functions, or, if no dollar
volume-weighted average price is reported for such security by Bloomberg 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 OTC Bulletin Board or, if unavailable, as reported in the
“pink sheets” by the National Quotation Bureau, Inc. If the Market Price for any security as of a
date must be calculated for purposes of this Warrant and cannot be calculated on any of the
foregoing bases, then the Market Price for such security will be determined as promptly as
practicable, but in no event later than fifteen (15) Business Days after such date, in good faith
by the Board of Trustees after consulting with a nationally recognized financial advisor appointed
to appraise the value of such security.

“Notice of Exercise” means the Form of Notice of Exercise attached as
Exhibit 1 hereto.

“Other Securities” means with reference to the exercise privilege of the Holder, any
Equity Securities (other than Common Shares) and any other securities of the Company or of any
other Person which the Holder at any time shall be entitled to receive, or shall have received,
upon the exercise or partial exercise of the Warrant, in lieu of or in addition to Common Shares,
or which at any time shall be issuable or shall have been issued in exchange for or in replacement
of Common Shares (or Other Securities) pursuant to the terms of this Warrant or otherwise.

“Person” means any individual, partnership, corporation, limited liability company,
association, joint stock company, trust, joint venture, unincorporated organization, estate,
association or other entity or any federal, state, county or municipal government or any bureau,
department or agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing.

“Promissory Note” means a promissory note issued by the Company in favor of the Holder
pursuant to Section 3.2 (i) payable on the one year anniversary of the Repurchase Date (or
the final repurchase or maturity date under any successor agreement); (ii) bearing interest at a
fixed rate equal to the greater of (x) 13.5% per annum and (y) 1% higher than the highest per annum
rate of interest then payable in respect of any tranche of senior, second lien or subordinated debt
of the Company; (iii) secured by the Equity Securities that were the subject of the Put Option for
which the Promissory Note is given; and (iv) subordinated to any and all indebtedness for borrowed
money of the Company.

“Prospectus” means the prospectus included in any Registration Statement (including a
prospectus that discloses information previously omitted from a prospectus filed as part of an
effective Registration Statement in reliance upon Rule 430A or Rule 430B promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement with respect to the terms
of the offering of any portion of the Registrable Securities covered by such Registration
Statement, any Issuer Free Writing Prospectus related thereto, and all other amendments and
supplements to such prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such prospectus.

“Public Offering” means the offer or sale of shares of any Equity Securities subject
to an effective registration statement under the Securities Act.

“Purchase Rights” means the Warrant and any other warrant, options or other rights to
subscribe for, purchase or otherwise acquire any Common Shares or any Convertible Securities,
either immediately or upon the arrival of a specified date or the happening of a specified event.

“Put Notice” has the meaning specified in Section 3.2(b).

“Put Option” has the meaning specified in Section 3.2(a).

“Put Redemption Price” has the meaning specified in Section 3.2(a).

“Registrable Securities” has the meaning specified in Section 6.4(a).

“Registration Statement” means any registration statement of the Company under the
Securities Act which permits the public offering of any of the Registrable Securities pursuant to
the provisions of this Agreement, including the Prospectus, amendments and supplements to such
registration statement, post-effective amendments, and all exhibits and all material incorporated
by reference or deemed to be incorporated by reference in such registration statement.

“Repurchase Agreements” means the Master Repurchase Agreement, dated as of September
19, 2008, between Taberna Loan Holdings I, L.L.C. as seller, and Wilmington Trust Company, as agent
for Cedric LLC, as buyer, together with any amendments, annexes, exhibits, schedules or supplements
and the Master Repurchase Agreement, dated as of September 19, 2008, between RAIT CRE Holdings, LLC
as seller, and Wilmington Trust Company, as agent for Cedric LLC, as buyer, together with any
amendments, annexes, exhibits, schedules or supplements.

“SEC” means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the SEC thereunder.

“Securities Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Subsidiary” means as to any Person, a corporation, partnership, limited liability
company or other entity of which (i) a majority of the equity of such entity is owned or
(ii) Voting Stock to elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned (or the management of which is
otherwise controlled), directly or indirectly through one or more intermediaries, or both, by such
Person.

“Third Party” means a prospective purchaser of this Warrant or Warrant Shares from the
Holder in a bona-fide, arm’s length transaction.

“Transfer” means any sale, transfer or assignment of this Warrant (whether with or
without consideration, whether voluntarily or involuntarily or by operation of law) or the acts
thereof; provided that in no event shall “Transfer” include the exercise of this Warrant.
The terms “Transferee,” “Transferor,” “Transferred,” and other forms of the
word “Transfer” shall have the correlative meanings.

“Voting Stock” means securities of any class or classes of a corporation, limited
partnership or limited liability company or any other entity the holders of which are ordinarily,
in the absence of contingencies, entitled to vote with respect to the election of corporate
directors (or Persons performing similar functions).

“Warrant” means this Warrant, dated the date hereof, of the Company for the issuance
of Common Shares, as adjusted herein and any Warrant issued after the date hereof that evidences
all or a portion of the Warrant evidenced hereby.

“Warrant Agreement” has the meaning specified in the preamble to this Warrant.

“Warrant Shares” means the Common Shares (and/or Other Securities) issued or issuable,
as the case may be, from time to time upon exercise of the Warrant, including, without limitation,
any Common Shares (and/or Other Securities) issued or issuable with respect thereto by way of a
dividend or split or in connection with a combination of any Common Shares, recapitalization,
merger, consolidation, reorganization or otherwise.

2. Exercise of Warrant.

2.1 Right to Exercise; Notice. On the terms and subject to the conditions of this
Section 2, the Holder hereof shall have the right, at its option, to exercise this Warrant
in whole or in part at any time or from time to time during the Exercise Period, all as more fully
specified below, provided that a partial exercise of this Warrant for less than the entire
remaining amount of Warrant Shares issuable under this Warrant shall be made only for a whole
number of Warrant Shares. In the event that the Holder has submitted a Notice of Exercise on or
prior to the last day of the Exercise Period, the exercise of the Warrant as contemplated by such
Notice of Exercise shall be permitted hereunder.

2.2 Vesting. (a)  This Warrant will vest and become exercisable with respect to the
purchase of (pursuant to Section 2.3), or conversion into (pursuant to
Section 2.4), 250,000 Warrant Shares on the Effective Date.

(b) The number of Warrant Shares that the Holder may purchase, or into which this Warrant may
be converted, upon exercise of this Warrant is subject to, and may be adjusted pursuant to, the
anti-dilution provisions contained in Sections 4.1 through 4.3, regardless of
whether this Warrant has vested and become exercisable with respect to the purchase of, or
conversion into, any such Warrant Shares.

2.3 Cash Exercise. To exercise any or all of this Warrant, the Holder hereof shall
deliver to the Company (a) a Notice of Exercise (substantially in the form of Exhibit 1
attached hereto) duly executed by the Holder hereof (or its attorney) specifying the number of
Warrant Shares to be purchased, (b) an amount equal to the aggregate Exercise Price for all Warrant
Shares as to which this Warrant is then being exercised, (c) subject to the restrictions set forth
in Section 3, in the event all or a portion of the Warrant Shares are to be issued to a
Person other than the Holder, the name of the Person which will acquire Warrant Shares in
connection with the issuance thereof (such Person, a “Designated Transferee”) together with
payment of transfer taxes, if any, and (d) this Warrant. At the option of the Holder hereof,
payment of the Exercise Price shall be made (x) by wire transfer of funds to an account in a bank
located in the United States designated by the Company for such purpose, (y) by bank check from a
financial institution in the Automated Clearing House network or other form of immediately
available funds payable to the order of the Company, or (z) by any combination of such methods. If
all or a portion of the Warrant Shares are to be issued to a Designated Transferee, the exercise of
the Warrant for such Warrant Shares shall be considered a proposed Transfer of such Warrant Shares
by the Holder to such Designated Transferee and shall be subject to the restrictions on Transfer
specified in Section 3 of this Warrant.

2.4 Conversion. Instead of exercising this Warrant pursuant to the terms of
Section 2.3, the Holder may elect to convert any or all of this Warrant into Warrant
Shares. Upon such election the Holder shall deliver to the Company (A) a Notice of Exercise
(substantially in the form of Exhibit 1 attached hereto) duly executed by the Holder hereof
(or its attorney) specifying the number of Warrant Shares to be converted, (B) subject to the
restrictions set forth in Section 3, the name of any Designated Transferee, and (C) this
Warrant. Upon delivery of such items (A) through (C), the Holder, or the Designated Transferee (if
any), shall be entitled to receive a number of duly authorized Warrant Shares equal to the quotient
of:

(a) the difference between:

(i) the product of (x) the number of Warrant Shares which the Holder, or the Designated
Transferee (if any), would be entitled to receive upon exercise of this Warrant for the
number of Warrant Shares designated in such conversion notice multiplied by (y) the Market
Price of each such Warrant Share so receivable upon exercise.

minus

(ii) the product of (x) the number of Warrant Shares (without giving effect to any
adjustments thereof) designated in such conversion notice multiplied by (y) the Exercise
Price.

divided by

(b) the average Market Price per Warrant Share which the Holder, or the Designated Transferee
(if any), would be entitled to receive upon exercise of this Warrant.

For all purposes of this Warrant (other than Section 2.3), any reference herein to the
exercise of this Warrant shall be deemed to include a reference to the conversion of this Warrant
into Warrant Shares in accordance with the terms of this Section 2.4. If all or a portion
of the Warrant Shares are to be issued to a Designated Transferee, the exercise of the Warrant for
such Warrant Shares shall be considered a proposed Transfer of such Warrant Shares by the Holder to
such Designated Transferee and shall be subject to the restrictions on Transfer specified in
Section 3 of this Warrant.

2.5 Issuance of Warrant Shares. In the event that at the time of exercise of this
Warrant the Common Shares are certificated, then upon receipt of the items referred to in either
Sections 2.3 or 2.4, the Company shall, as promptly as practicable, and in any
event within three (3) Business Days thereafter, cause to be issued and delivered to the Holder
hereof (or its nominee) or the Designated Transferee (if any), a certificate or certificates
representing the number of Warrant Shares specified in the Notice of Exercise (but not exceeding
the maximum number of Warrant Shares issuable upon exercise of this Warrant if the Warrant is
exercised pursuant to Section 2.3 or the number of Warrant Shares the Holder is entitled to
receive pursuant to Section 2.4 if the Warrant is exercised pursuant to
Section 2.4). Such certificates shall be registered in the name of the Holder hereof (or
its nominee) or in the name of such transferee, as the case may be.

If this Warrant is exercised in part, the Company shall issue and deliver to the Holder hereof
or the transferee, so designated in the Notice of Exercise, within three (3) Business Days, a new
Warrant, materially identical hereto, evidencing the right of the Holder hereof or such transferee
to purchase at the Exercise Price then in effect the aggregate number of Warrant Shares for which
this Warrant shall not have been exercised and this Warrant shall be cancelled.

The Company shall assist and cooperate with any Holder required to make any governmental
filings or obtain any governmental approvals prior to or in connection with any exercise of this
Warrant (including, without limitation, making any filings required to be made by the Company).

Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is
to be made in connection with a Public Offering, a Change of Control or with the sale or Transfer
of other Equity Securities of the Company, the exercise of any portion of this Warrant may, at the
election of the Holder hereof, be conditioned upon the consummation of such Public Offering or
Change of Control or sale or Transfer, in which case such exercise shall not be deemed to be
effective until the consummation of such transaction.

2.6 Effectiveness of Exercise. Unless otherwise requested by the Holder hereof, this
Warrant shall be deemed to have been exercised and such certificate or certificates (if any)
representing Warrant Shares shall be deemed to have been issued, and the Holder or Designated
Transferee (if any) shall be deemed to have become the holder of record of such Warrant Shares for
all purposes, as of the time on the date on which the Notice of Exercise, the Exercise Price and
this Warrant shall have been received by the Company.

2.7 Fractional Shares. The Company shall not issue fractional Warrant Shares upon any
exercise of this Warrant. As to any fractional Warrant Shares which the Holder hereof would
otherwise be entitled to purchase from the Company upon such exercise, the Company shall pay such
Holder a cash adjustment for such fraction in an amount equal to the same fraction of the Market
Price of a Common Share as of the date of the Notice of Exercise.

2.8 Warrant Share Rights. A Holder of Warrant Shares issued upon the exercise of this
Warrant, in whole or in part, shall be entitled to the rights set forth in Section 6.4
only.

3. Registration, Transfer, Exchange and Replacement of Securities; Legends.

3.1 Warrant Transferable. Subject to the transfer conditions referred to in the
legend endorsed hereon and the other terms and conditions of this Section 3, this Warrant,
the Warrant Shares and all rights hereunder are transferable, in whole or in part, without charge
to the Holder, upon surrender of this Warrant with a properly executed Assignment (in the form of
Exhibit 2 hereto) at the principal office of the Company provided, however,
that, unless otherwise stated, any such assignment is conditioned upon such assignee’s execution of
an agreement to be bound to this Warrant by executing a joinder hereto.

3.2 Put Option.

(a) Put Option. Subject to the limitations provided in this Section 3.2, (i)
upon a Change of Control, (ii) if the Registrable Securities are not registered within the time
allotted pursuant to Section 6.4(a), (iii) if the Registrable Securities cease to be subject to an
effective registration statement after registration pursuant to Section 6.4 or (iv) if the Common
Shares are no longer listed on a national securities exchange or quoted in the NASDAQ System, the
Holder will have the option (the “Put Option”), but not the obligation, to sell to the
Company its Warrant or any portion thereof at its applicable Black-Scholes Price on the date the
Put Option is exercised (the “Put Redemption Price”), and on the terms set forth in
Sections 3.2(b) and 3.2(d) below. The Put Option may be exercised as to any
portion of a Warrant.

(b) Exercise. The Put Option may be exercised only by the Holder delivering written
notice of exercise to the Company specifying the Warrant to be sold (the “Put Notice”).
The Company shall be obligated to purchase and redeem from the Holder, and the Holder shall be
obligated to sell to the Company, the Warrants required to be Transferred pursuant to the exercise
of the Put Option within twenty (20) Business Days of the Company’s receipt of the Put Notice,
unless performance by the Company is limited by Section 3.2(c). If performance by payment
in cash does become so limited, then at the Holder’s sole option, either (i) the Company shall
deliver a Promissory Note for the prohibited portion of the Put Redemption Price, or (ii) the
Holder shall revoke the exercise of the Put Option at such time and retain the Warrant that are the
subject of such Put Notice, all of which will remain subject to all of the rights and obligations
contained in this Warrant Agreement, including this Section 3.2.

(c) Put Option Limitations. The Put Option available to the Holder pursuant to this
Section 3.2 shall at all times be subject to limitations under the Repurchase Agreements
(or, if the Repurchase Agreements have been refinanced, any successor agreements). Nothing herein
shall require the Company to honor a Put Option in cash if such would result in a breach of the
Repurchase Agreements (or, if the Repurchase Agreements have been refinanced, any successor
agreements). In such case, and if the Holder so selects pursuant to Section 3.2(b), in
lieu of honoring the Put Option in cash, the Company shall deliver a Promissory Note as
contemplated by Section 3.2(b).

(d) Closing. If the Put Option is exercised, the closing of the required Transfer
shall occur on or before the twentieth (20th) Business Day following delivery of the Put Notice or
on such other date as the Company and the Holder may agree. At the closing, the Company shall pay
the Holder the Put Redemption Price, by wire transfer in immediately available funds to an account
specified by the Holder, or, if the Holder elects pursuant to Section 3.2(b), by the
issuance of a Promissory Note if required by Section 3.2(c). The Holder shall execute such
instruments and other documents as reasonably requested by the Company to evidence the sale,
provided that:

(i) the Company shall bear any and all reasonable costs or expenses incurred by the
Holder in connection with the Transfer to which this Section 3.2 applies;

(ii) the Holder shall not be required to make any representations or warranties in
connection with such Transfer other than representations and warranties as to (i) the
Holder’s ownership of the Warrant to be Transferred free and clear of all liens and
encumbrances, (ii) the Holder’s power and authority to effect such Transfer, and (iii) such
matters pertaining to compliance with securities laws as the Company may reasonably require,
except that the Company may not require that the Holder be an Accredited Investor; and

(iii) any indemnity obligations of the Holder shall relate solely to representations
and warranties described in Section 3.2(d)(ii) above and shall be in an amount no
greater than the Put Redemption Price.

3.3 Restrictions on Transfer. The Holder of this Warrant, by the acceptance hereof,
represents that it is acquiring this Warrant, and upon exercise hereof will acquire the Warrant
Shares, for its own account and not with a view towards, or for resale in connection with, the
public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales
registered or exempted under the Securities Act; provided, however, that by making the
representations herein, the Holder does not agree to hold this Warrant or any of the Warrant Shares
for any minimum or other specific term and reserves the right to dispose of this Warrant and the
Warrant Shares at any time in accordance with or pursuant to a registration statement or an
exemption under the Securities Act. If such Holder acquires this Warrant pursuant to an exemption
under the Securities Act, then such Holder further represents, by acceptance hereof, that, as of
this date, such Holder is an Accredited Investor and has had the opportunity to ask questions and
receive answers concerning the Company, the Warrants and the offering thereof from the Company.
Each delivery of an Exercise Notice shall constitute confirmation at such time by the Holder of the
representations set forth in this Section 3.3. Each Warrant or Warrant Share issued upon
such Transfer shall bear the restrictive legend set forth in Section 3.6, unless in the
opinion of counsel to the Company such legend is not required in order to ensure compliance with
the Securities Act or any state securities law. Notwithstanding anything to the contrary contained
herein, the Holder may Transfer any Warrant Shares registered under and in accordance with the
Securities Act.

3.4 Discretionary Offer of Redemption . To the extent that it is reasonably
practicable, and in the sole discretion of the Holder, prior to the Transfer of any Warrant to an
unaffiliated third-party, the Holder shall discuss with the Company the possibility of the Company
redeeming such Warrant and the terms on which any such redemption may occur.

3.5 Warrant Exchangeable for Different Denominations. This Warrant is exchangeable,
upon the surrender hereof by the Holder at the principal office of the Company, for new Warrant of
like tenor representing in the aggregate the purchase rights hereunder, and each of such new
Warrant will represent such portion of such rights as is designated by the Holder at the time of
such surrender. The Company shall promptly, but in any case no longer than five (5) Business Days
after such surrender, provide the Holder with any such new replacement Warrant upon surrender of
this Warrant to the Company by the Holder. The date the Company initially issues this Warrant will
be deemed to be the “Date of Issuance” hereof regardless of the number of times new certificates
representing the unexplored and unexercised rights formerly represented by this Warrant shall be
issued. All Warrants representing portions of the rights hereunder are referred to herein as the
“Warrant.”

3.6 Replacement. Upon receipt of evidence reasonably satisfactory to the Company (an
affidavit of the Holder will be satisfactory) of the ownership and the loss, theft, destruction or
mutilation of any certificate evidencing this Warrant, and, in the case of any such loss, theft or
destruction, upon receipt of indemnity reasonably satisfactory to the Company, or, in the case of
any such mutilation upon surrender of such certificate, the Company will (at its expense) execute
and deliver in lieu of such certificate a new certificate of like kind representing the same rights
represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such
lost, stolen, destroyed or mutilated certificate.

3.7 Legends. Neither this Warrant nor any Warrant Shares may be Transferred or
assigned unless registered under the Securities Act or unless an exemption from such registration
is available. Until the date on which this Warrant is sold pursuant to an effective registration
statement covering this Warrant under the Securities Act, each Warrant shall bear a legend in
substantially the following form:

“NEITHER THIS WARRANT NOR THE COMMON SHARES OF BENEFICIAL INTEREST
ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE TRANSFERRED IN
THE ABSENCE OF REGISTRATION THEREUNDER OR AN EXEMPTION THEREFROM AND
ARE SUBJECT TO RESTRICTIONS ON EXERCISE AND TRANSFERS SET FORTH
HEREIN. ANY WARRANT SHARES ISSUED PURSUANT HERETO WILL BE SUBJECT
TO RESTRICTIONS ON TRANSFER SET FORTH HEREIN.”

Until the date on which any Warrant Share is sold pursuant to an effective registration statement
covering such Warrant Share under the Securities Act, each certificate (if any) evidencing Warrant
Share shall bear a legend in substantially the following form:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
OF ANY STATE AND MAY NOT BE TRANSFERRED IN THE ABSENCE OF
REGISTRATION THEREUNDER OR AN EXEMPTION THEREFROM AND IS SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN THE WARRANT AGREEMENT
DATED SEPTEMBER 19, 2008. A COPY OF THIS WARRANT SHALL BE FURNISHED
BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND WITHOUT
CHARGE.”

4. Anti-Dilution Provisions.

4.1 Adjustment of Number of Shares Purchasable.

(a) Adjustment of Number of Warrant Shares upon Exercise. Upon any adjustment of the
Exercise Price as provided in Section 4.2, the Holder hereof shall thereafter be entitled
to purchase, at the Exercise Price resulting from such adjustment, the number of Common Shares
(calculated to the nearest 1/100th of a share of Common Shares) obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of Common Shares
purchasable hereunder immediately prior to such adjustment and dividing the product thereof by the
Exercise Price resulting from such adjustment.

(b) Upon Settlement regarding Preemptive Rights. In the event that the Company shall
be required to issue any Equity Securities to any of its existing shareholders arising out of any
rights of first offer, preemptive rights or similar rights triggered by the issuance of this
Warrant, then the number of Warrant Shares issuable hereunder shall be increased by a number of
Warrant Shares equal to the product of 0.00385 and the number of Equity Securities issued to such
shareholder as a result of such rights.

(c) Upon Breach of Capitalization Representation. In the event that a breach of the
capitalization representation set forth in Section 2.2 of that certain Warrant Issuance
Agreement (the “Issuance Agreement”), dated as of the date hereof, by and between the
Company and the Holder results in the Company having more Equity Securities (other than options,
phantom shares, phantom units, convertible debt instruments or other securities convertible into
Common Shares outstanding on the date hereof) than the number set forth in the Issuance Agreement,
then the number of Warrant Shares issuable hereunder shall be increased, without duplication, by a
number of Warrant Shares equal to the product of (x) 0.00385 and (y) the difference between the
number of Equity Securities (other than options, phantom shares, phantom units, convertible debt
instruments or other securities convertible into Common Shares outstanding on the date hereof)
actually outstanding on the date hereof and either, (i) the number of Equity Securities (other than
options, phantom shares, phantom units, convertible debt instruments or other securities
convertible into Common Shares outstanding on the date hereof) set forth in Section 2.2 of
the Issuance Agreement, if no previous adjustment has been made pursuant to this
Section 4.1(c) or (ii) the last aggregate number of Equity Securities (other than options,
phantom shares, phantom units, convertible debt instruments or other securities convertible into
Common Shares outstanding on the date hereof) used in calculating an adjustment to the number of
Warrant Shares pursuant to this Section 4.1(c), if any.

4.2 Adjustment of Exercise Price. The Exercise Price shall be subject to adjustment
from time to time as set forth in this Section 4.2.

(a) Dividends, Subdivisions and Combinations. If and whenever the Company subsequent
to the date hereof:

(i) declares a dividend upon, or makes any distribution in respect of, any Common
Shares, payable in Common Shares, Convertible Securities or Purchase Rights, or

(ii) subdivides its outstanding Common Shares into a larger number of Common Shares, or

(iii) combines its outstanding Common Shares into a smaller number of Common Shares,

then the Exercise Price shall be adjusted to that price determined by multiplying the Exercise
Price in effect immediately prior to such event by a fraction (A) the numerator of which shall be
the total number of outstanding Common Shares immediately prior to such event, and (B) the
denominator of which shall be the total number of outstanding Common Shares immediately after such
event.

(b) Reorganization, Reclassification or Recapitalization of the Company; Dividends and
Distributions. If and whenever subsequent to September 19, 2008 the Company shall effect
(i) any reorganization or reclassification or recapitalization of any Common Shares (or any other
Equity Securities of the Company) (other than in the cases referred to in Section 4.2(a)),
(ii) any consolidation or merger of the Company with or into another Person, (iii) the sale,
transfer or other disposition of the property, assets or business of the Company as an entirety or
substantially as an entirety, (iv) any dividend or distribution or (v) any other transaction (or
any other event shall occur) (each such transaction hereinafter referred to as a
“Dissemination”) and as a result of such Dissemination the holders of Common Shares become
entitled to receive any Equity Securities or other securities and/or property (excluding cash) with
respect to or in exchange for the Common Shares, then, upon exercise of this Warrant, the Holder of
this Warrant shall receive thereof (in lieu of or in addition to the Warrant Shares theretofore
deliverable, as appropriate) the highest number of Equity Securities or Other Securities and/or the
greatest amount of such property to which the Holder would have received if this Warrant had been
exercised immediately prior to such Dissemination (or the applicable record date therefor).

The Company shall make equitable, written adjustments in the application of the provisions
herein set forth so that the provisions set forth herein shall thereafter be applicable, as nearly
as possible, in relation to any Equity Securities or Other Securities or other property thereafter
deliverable in respect of and/or upon exercise of the Warrant. Any such adjustment shall be made
by and set forth in a supplemental agreement of the Company and/or the successor entity, as
applicable, for the benefit of the Holder, which agreement shall bind the Company and/or the
successor entity, as applicable.

(c) Change of Control. The Company shall not enter into or be party to a Change of
Control unless the successor entity assumes in writing all of the obligations of the Company under
this Warrant in accordance with this Section 4.2(c). Upon the occurrence of any Change of
Control, the successor entity (if other than the Company), shall succeed to, and be substituted for
(so that from and after the date of such Change of Control, the provisions of this Warrant
referring to the “Company” shall refer instead to the successor entity), and may exercise every
right and power of the Company and shall assume all of the obligations of the Company under this
Warrant with the same effect as if such successor entity had been named as the Company herein. The
provisions of this Section shall apply equally to successive Changes of Control or such other
events and shall be applied without regard to any limitations on the exercise of this Warrant.

(d) Other Dilutive Events. If any other transaction or event (other than those
explicitly referred to in this Section 4.2) that has the same or substantially similar
effect as those explicitly referred to in this Section 4.2 occurs after September 19, 2008
as to which the other provisions of this Section 4 are not strictly applicable but the
failure to make any adjustment to the Exercise Price or to any of the other terms of this Warrant
would not fairly protect the purchase rights and other rights represented by this Warrant in
accordance with the essential intent and principles hereof, then, in connection with any such
transaction or event, and in each such case, upon request from the Holder or Holders representing
at least a majority of the Warrant Shares obtainable upon exercise of the Warrants then
outstanding, the Board of Trustees shall in good faith determine (after consulting with a
nationally recognized financial advisor) and make those adjustments necessary to preserve the
essential intent and principles established in this Section 4, necessary to preserve,
without dilution, the rights represented by this Warrant.

(e) Record Date. If the Company shall take a record of the holders of the Common
Shares for the purpose of entitling them (i) to receive a dividend or other distribution payable in
Common Shares, Convertible Securities or Purchase Rights or (ii) to subscribe for or purchase
Common Shares, Convertible Securities or Purchase Rights, then all references in this
Section 4 to the date of the issue or sale of Common Shares deemed to have been issued or
sold upon the declaration of such dividend or the making of such other distribution or the date of
the granting of such right of subscription or purchase, as the case may be, shall be deemed to be
references to such record date.

(f) Shares Outstanding. For purposes of this Section, the number of Common Shares
deemed to be outstanding at any given time shall not include Common Shares held by the Company or
any Subsidiary of the Company.

(g) Maximum Exercise Price. At no time shall the Exercise Price exceed the amount set
forth in the first paragraph of the preamble of this Warrant except as a result of an adjustment
thereto pursuant to Section 4.2(a)(iii) or 4.2(b).

(h) Application. All subdivisions of this Section 4.2 are intended to operate
independently of one another. If a transaction or an event occurs that requires the application of
more than one subdivision, all applicable subdivisions shall be given independent effect (but
without duplication of adjustment).

4.3 Certificates and Notices.

(a) Adjustments to Exercise Price. As promptly as practicable (but in any event not
later than three (3) Business Days) after the occurrence of any event requiring any adjustment
under this Section 4 to the Exercise Price and/or the number of Warrant Shares issuable
upon exercise hereof (or to the number or kind of securities or other property deliverable upon the
exercise of this Warrant), the Company shall, at its expense, deliver to the Holder of this Warrant
either (i) an officers’ certificate or (ii) a certificate signed by a firm of independent certified
public accountants of recognized national standing (which may be the regular auditors of the
Company), setting forth in reasonable detail the events requiring the adjustment and the method by
which such adjustment was calculated and specifying the adjusted Exercise Price and the number of
Common Shares or other securities purchasable upon exercise of this Warrant after giving effect to
such adjustment. The certificate of any such firm of accountants shall be conclusive evidence of
the correctness of any computation made under this Section 4.

(b) Effect of Failure. Failure to give any certificate or notice, or any defect in
any certificate or notice required under this Section 4.3 shall not affect the rights of
the Holder to any adjustment pursuant to Sections 4.1 or 4.2 or the legality or
validity of the adjustment of the Exercise Price or the number of Warrant Shares purchasable upon
exercise of this Warrant.

5. Reservation of Shares. The Company has reserved and at all times after the date
hereof will reserve and keep available, solely for issuance, sale and delivery upon the exercise of
this Warrant, such number of Common Shares (and/or Other Securities) equal to the number of Common
Shares (and/or Other Securities) purchasable upon the exercise of this Warrant. All such Common
Shares (and/or Other Securities) shall be duly authorized and, when issued upon exercise of this
Warrant in accordance with the terms hereof, will be validly issued and fully paid and
nonassessable and not subject to preemptive rights on the part of any other Person. The Company
shall take all such actions as may be necessary to assure that all such Common Shares may be so
issued without violation of any applicable law or governmental regulation or any requirements of
any domestic national securities exchange upon which Common Shares may be listed (except for
official notice of issuance which shall be immediately delivered by the Company upon each such
issuance).

6. Various Covenants.

6.1 No Impairment or Amendment. The Company shall not by any action avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such reasonable
action as may be necessary or appropriate to protect the rights of the Holder hereof against
impairment. Without limiting the generality of the foregoing, the Company (a) will take all such
action as may be necessary or appropriate in order that the Company may validly issue fully paid
and nonassessable Warrant Shares, (b) will use reasonable best efforts to obtain and maintain all
such authorizations, exemptions or consents from any public regulatory body having jurisdiction as
may be necessary to enable the Company to perform its obligations under this Warrant, and (c) will
not enter into any agreement, or undertake any obligations or limitations on its actions, the terms
of which would have the direct effect of preventing the Company from honoring its obligations
hereunder.

So long as any Warrant or Warrant Shares are outstanding, upon request of any Holder of any
such security, the Company will acknowledge in writing, in form reasonably satisfactory to such
Holder, the continued validity of the Company’s obligations hereunder.

6.2 Certain Expenses. The Company shall pay all reasonable expenses in connection
with the initial issuance of this Warrant and any Warrant Shares.

6.3 Financial Information; Inspection Rights.

(a) Financial Information. The Company shall deliver or otherwise make available to
the Holder, (a) not later than forty-five (45) days after the close of each of the Company’s first
three fiscal quarters in any given fiscal year, copies of its most recent quarterly unaudited
financial statements prepared in accordance with GAAP and on a basis consistent with prior periods,
and (b) within ninety (90) days after the close of each of the Company’s fiscal years, copies of
the most recent audited annual financial statements, certified by independent public accountants of
recognized standing and prepared in accordance with GAAP and on a basis consistent with prior
periods.

(b) Inspection Rights. From and after the date hereof and until such time as Cedric
LLC or one of its Affiliates no longer holds this Warrant or any portion thereof, upon prior notice
and at Cedric LLC’s or such Affiliate’s expense, the Company shall permit representatives of Cedric
LLC or such Affiliate to visit and inspect any of its properties and examine and make abstracts
from any of its books and records during customary business hours and as often as may reasonably be
desired and to discuss the business, operations, properties and financial and other condition of
the Company and its Subsidiaries with officers and employees of the Company and its Subsidiaries
and with its independent certified public accountants. Cedric LLC’s or such Affiliate’s rights in
this Section 6.3(b) may be exercised through any agent, representative or employee
designated by such Holder.

(c) Confidentiality. The Holder will keep all information provided under
Section 6.3(a) and (b) and any other non-public information obtained from the Company or
any of its representatives (“Confidential Information”) confidential and will not disclose
to any Person or use any Confidential Information otherwise than in connection with Holder’s
ownership of this Warrant and the Warrant Shares unless and to the extent that such Confidential
Information:

(i) is disclosed by the Holder to a proposed Transferee in connection with a proposed
Transfer by the Holder; provided that, prior to any disclosure of Confidential
Information in connection with such proposed Transfer, the Holder shall have obtained from
such proposed Transferee and delivered to the Company a duly executed confidentiality
agreement relating to such Confidential Information on terms and conditions identical to
those set forth in this Section 6.3(c) and the Transferee is not a Company
Competitor;

(ii) is disclosed by the Holder to one or more Affiliates;

(iii) is required to be disclosed by law, or pursuant to valid legal process or order
of a court, as reasonably determined by Holder on advice of counsel, or is disclosed in a
tax or regulatory audit;

(iv) is or becomes generally known to and available for use by the public otherwise
than as a result of the act or omission to act of such Holder; or

(v) was obtained by such Holder on a nonconfidential basis prior to receipt by the
Holder of such Confidential Information from the Company.

(d) Required Disclosure. In the event Holder reasonably determines on advice of
counsel that it is required by law, valid legal process or order of a court of competent
jurisdiction to disclose any Confidential Information, the Holder shall, other than with respect to
securities filings or similar public disclosures and to the extent permitted by law or regulation
and to the extent practicable, promptly notify the Company so that the Company can seek a
protective order or take other appropriate action at the Company’s sole expense. Other than with
respect to securities filings or similar public disclosures, (i) the Holder will reasonably
cooperate in the Company’s efforts to obtain a protective order or other reasonable assurance that
confidential treatment will be accorded the Confidential Information, and (ii) if, in the absence
of a protective order, the Holder is, on advice of counsel, directed or otherwise compelled as a
matter of law to disclose any Confidential Information to any third party, the Holder may disclose
to the third party compelling disclosure only the part of such Confidential Information as is
required by law to be disclosed, as reasonably determined by Holder on advice of counsel (in which
case, prior to such disclosure, the Holder will use commercially reasonable efforts to advise and
consult with the Company and its counsel as to such disclosure and the nature and wording of such
disclosure) and the Holder will use its reasonable efforts to obtain confidential treatment
therefor and the Company will reimburse the Holder for its reasonable out-of-pocket costs,
including, without limitation, legal fees, incurred in connection therewith. In the event the
Holder violates any provision of Section 6.3(d) or (e), then the Company shall not
thereafter be required to deliver to the Holder the information specified in Section 6.3(a) or
(b). Notwithstanding the immediately preceding sentence, the Holder whose information rights
have been suspended in accordance with the preceding sentence shall have the right to receive the
information specified in Sections 6.3(a) and (b) if, and only if, the Holder desires to
sell for value its Warrant or the Warrant Shares to a third party that is not a Company Competitor
and the prospective purchaser requests such information in connection with the Transfer of such
Warrant or Warrant Shares; provided, however, that such prospective purchaser shall
as a condition precedent to receiving any such information execute and deliver to the Company a
confidentiality agreement in a form reasonable satisfactory to the Company.

(e) The Holder’s rights set forth in Sections 6.3(a) and (b) shall be
suspended for as long as the Company is required to file reports with the SEC under Sections 12(g)
or 15(d) of the Securities Exchange Act and is reasonably current in filing any required report
with the SEC.

6.4 Registration of Warrants and Warrant Shares.

(a) Within ninety (90) days of September 19, 2008, the Company shall, at its own expense, use
its best efforts (subject to compliance with federal and applicable blue sky securities laws) to
register under and in accordance with the provisions of the Securities Act (a) the resale of the
Warrants, (b) the resale of the Warrant Shares received by the initial Holder of this Warrant upon
exercise and (c) the issuance of Warrant Shares to the Holder of a registered Warrant (the
“Registrable Securities”); provided that if the SEC reviews either registration statement,
such 90-day deadline shall be extended until the completion of any such review SEC review process
and the Company shall use its best efforts to cause such registration statement to be declared
effective as promptly as practicable.

(b) From and after the time the Registrable Securities become subject to an effective
registration statement pursuant to Section 6.4(a), (i) the Company shall use its best efforts to
maintain the registration of such Registrable Securities until the one year anniversary of the end
of the Exercise Period.

6.5 Listing On Securities Exchanges. If Common Shares are listed on a national securities
exchange or quoted in the NASDAQ System, then the Company will use its best efforts to procure at
its sole expense the listing of all Warrant Shares upon issuance on all stock exchanges on which
the Common Shares are then listed, and maintain the listing or quotation of such Warrant Shares
after issuance.

7. Miscellaneous.

7.1 No Voting Rights; Limitations of Liability. This Warrant will not entitle the
Holder hereof to any voting rights or other rights as an equity holder of the Company. No
provision hereof, in the absence of affirmative action by the Holder to purchase Warrant Shares,
and no enumeration herein of the rights or privileges of the Holder shall give rise to any
liability of such Holder for the Exercise Price of the Warrant Shares acquirable by exercise hereof
or as a stockholder of the Company.

7.2 Waiver or Amendment. Except as otherwise provided herein, the provisions of this
Warrant may be amended and the Company may take any action herein prohibited, or omit to perform
any act herein required to be performed by it, only if the Company has obtained the written consent
of the Holders representing at least a majority of the Warrant Shares obtainable upon exercise of
the Warrants then outstanding; provided that no such amendment or action may increase the Exercise
Price or decrease the number of Warrant Shares or change the class of stock obtainable upon
exercise of any Warrant without the written consent of each Holder of such Warrant.

7.3 Notices. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by facsimile, electronic mail or Portable
Document Format transmission) and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made (a) in the case of delivery by hand, when delivered, (b) in the case
of delivery by mail, three (3) Business Days after being deposited in the mails, postage prepaid,
(c) in the case of delivery by facsimile transmission, when sent and receipt has been
electronically confirmed or (d) in the case of electronic mail or Portable Document Format
transmission, upon the sender’s receipt of an acknowledgement from the intended recipient, such as
by the “return receipt requested” function, as available, return e-mail or other written
acknowledgment (provided that, if such notice or other communication is not sent during the
normal business hours of the recipient, such notice or communication shall be deemed to have been
sent at the opening of business on the next business day for the recipient), addressed as follows,
or to such other address as may be hereafter notified by the respective parties hereto:

	 	 	 	The Company:

RAIT Financial Trust

2929 Arch Street, 17th Floor

Philadelphia, PA 19104

Attention: Chief Legal Officer

Fax: (215) 243-9039

Email: rlicht@raitft.com

	 	 	 	with a copy to:

Ledgewood

1900 Market Street

Philadelphia, PA 19103

Attention: J. Bauer Whittlesey

Fax: (215) 735-2513

Email: jbw@ledgewood.com

	 	 	 	Cedric LLC, as Holder:

Cedric LLC

c/o Angelo Gordon & Co.

245 Park Avenue

New York, NY 10167

Attention: Mr. David Roberts

Fax:

Email:

	 	 	 	with a copy to:

Cadwalader, Wickersham & Taft LLP

227 West Trade Street, Suite 2400

Charlotte, NC 28202

Attention: Steven N. Cohen

Fax: (704) 348-5200

Email: steven.cohen@cwt.com

	 	 	 	Subsequent Holders:

to the address provided in the Form of Assignment.

7.4 Remedies. The Company stipulates that the remedies at law of the Holder or
Holders of this Warrant in the event of any default or threatened default by the Company in the
performance of or compliance with any of the terms of this Warrant may not be adequate and that, to
the fullest extent permitted by law, 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. No remedy conferred in this Warrant on the holder of any
Warrant is intended to be exclusive of any other remedy, and each and every such remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or under any other
agreement, document or instrument or now or hereafter existing at law or in equity or by statute or
otherwise.

7.5 Successors and Assigns. This Warrant and the rights evidenced hereby shall inure
to the benefit of and be binding upon the successors and permitted assigns of the Company, the
Holder or Holders of this Warrant to the extent provided herein, and shall be enforceable by such
Holder or Holders, except that the Company may not assign or transfer any of its rights or
obligations under this Warrant Agreement without the prior written consent of each Holder (and any
such purported assignment or transfer by the Company without such consent of each Holder shall be
null and void).

7.6 GOVERNING LAW. THIS WARRANT AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

7.7 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

(a) THE COMPANY AND THE HOLDER HEREBY AGREE TO THE NON–EXCLUSIVE JURISDICTION OF THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE COMPANY AND THE HOLDER HEREBY
WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENT TO THE GRANTING OF SUCH LEGAL
OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

(b) TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE COMPANY AND THE HOLDER HEREBY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE BETWEEN THE COMPANY AND THE HOLDER AND THEIR AFFILIATES, ARISING OUT OF, CONNECTED WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS WARRANT
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT
WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

7.8 Headings. The table of contents to and headings in this Warrant are for purposes
of reference only and shall not limit or otherwise affect the meaning hereof.

7.9 Entire Agreement; Severability. This Agreement shall supersede any existing
agreements between the parties containing general terms and conditions for repurchase transactions.
Each provision and agreement herein shall be treated as separate and independent from any other
provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any
such other provision or agreement.

7.10 Counterparts. This Warrant Agreement may be executed in any number of
counterparts, each of which counterparts shall be deemed to be an original, and such counterparts
shall constitute but one and the same instrument.

7.11 Acknowledgement. The Company and Holder each hereby acknowledges that it has
been advised by counsel in the negotiation, execution and delivery of this Warrant Agreement.

7.12 Termination. This Warrant shall terminate and be of no further force and effect
as of the first anniversary of the end of the Exercise Period, if not earlier terminated in writing
by the Company and the Holder.

[The remainder of this page is left blank intentionally.]

3

IN WITNESS WHEREOF, the Company has caused this Warrant Agreement to be executed as an
instrument under seal by its duly authorized officer as of the date first above written.

	 	 	 
	RAIT FINANCIAL TRUST,

	 	

	a Maryland real estate investment trust

	By:

	 	/s/ Jack E. Salmon     
	
 
	 	 

	 	 	 
	 	 	Name: Jack E. Salmon
	 	 	Title: CFO
	Acknowledged and Agreed:
	CEDRIC LLC
	By:	 	/s/ Joseph R. Wekselblatt_______________

Name: Joseph R. Wekeselblatt

Title: CFO

4

Exhibit 1

FORM OF NOTICE OF EXERCISE

(To be executed only upon partial or full exercise

of the within Warrant)

The undersigned registered holder of the within Warrant irrevocably exercises the within
Warrant for and [purchases/converts the Warrant into]      Common Shares of RAIT
FINANCIAL TRUST (the “Company”) [and herewith makes payment therefor in the amount of
$     ,] all [at the price,] in the manner and on the terms and conditions specified in
the within Warrant, and, if the Common Shares are certificated, requests that a certificate (or
     certificates in denominations of      Common Shares) for such Common Shares hereby
be [purchased/converted into] issued in the name of and delivered to (choose one) (a) the
undersigned or (b)      , whose address is      and, if such
Common Shares shall not include all the Warrant Shares issuable as provided in the within Warrant,
that a new Warrant of like tenor for the number of Warrant Shares not being [purchased/converted
into] hereunder be issued in the name of and delivered to (choose one) (a) the undersigned or
(b)      , whose address is      . If the issuance of such
Warrant Shares are not registered under the Securities Act of 1933, as amended (the “Securities
Act”), then the undersigned assignee represents that it is an “accredited investor” as such
term is defined in Rule 501 of Regulation D promulgated under the Securities Act, is acquiring the
Warrant Shares for its own account and not with a view towards, or for resale in connection with,
the public sale and distribution of the Warrant Shares, except pursuant to sales registered or
exempt under the Securities Act.

Dated:      

	 	 	 	[     ]

	 	 	 	By

(Signature of Registered Holder)

	 	 	 	By

(Signature of Assignee)

Address:

	 	 	NOTICE: The signature on this Notice of Exercise must correspond with the name as written upon the
face of the within Warrant in every particular, without alteration or enlargement or any
change whatever.

5

Exhibit 2

FORM OF ASSIGNMENT

(To be executed only upon the assignment

of the within Warrant)

FOR VALUE RECEIVED, the undersigned registered holder of the within Warrant hereby sells,
assigns and transfers unto      , whose address is
     , all of the rights of the undersigned under
the within Warrant, with respect to      Common Shares of RAIT FINANCIAL TRUST and, if such
Common Shares shall not include all the Warrant Shares issuable as provided in the within Warrant,
that a new Warrant of like tenor for the number of Warrant Shares not being transferred hereunder
be issued in the name of and delivered to [choose one] (a) the undersigned or
(b)      , whose address is      ,
and does hereby irrevocably constitute and appoint      Attorney to register
such transfer on the books of RAIT FINANCIAL TRUST maintained for the purpose, with full power of
substitution in the premises. If the resale of the within Warrant is not registered under the
Securities Act of 1933, as amended (the “Securities Act”), then the undersigned assignee
represents that it is an “accredited investor” as such term is defined in Rule 501 of Regulation D
promulgated under the Securities Act, is acquiring the Warrant Shares for its own account and not
with a view towards, or for resale in connection with, the public sale and distribution of the
Warrant Shares, except pursuant to sales registered or exempt under the Securities Act.

	 	 	 	 	 
	Dated:
	 	 	—	 
	 
	 	 	[______________________________________]	 
	 
	 	By:
	 
	 	(Signature of Registered Holder)
	 
	 	By:
	 
	 	(Signature of Assignee)
	 
	 	Address:
	NOTICE:
	 	The signature on this Assignment must correspond with the name as
	 
	 	written upon the face of the within Warrant in every particular,
	 
	 	without alteration or enlargement or any change whatever.

6

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