<PAGE>


Exhibit 10.1
Severance Letter Agreement

                                                     June 30, 2000

Ms. Debora A. Pfaff
534 Everett Street
Westwood, MA 02090

RE:  Severance Agreement dated as of January 1, 1999 between Meditrust
     Corporation (the "Company" or "Employer") and Debora A. Pfaff (the
     "Employee"), as amended by First Amendment to Severance Agreement dated
     January, 2000 (the "Severance Agreement")
     ------------------------------------------------------------------------

Dear Debora:

         This will confirm that the Company has requested that you remain
employed with the Company at its Needham office (or an alternative office in the
Boston metropolitan area) until December 31, 2002 (the "Anticipated Termination
Date") and that, until the Anticipated Termination Date, you continue to
implement the Company's strategic plan to sell a significant portion of the
healthcare portfolio. You have agreed to the foregoing, subject to the following
conditions, all of which shall be deemed to supplement and amend the Severance
Agreement. Capitalized terms used herein and not otherwise defined shall have
the meaning as defined in the Severance Agreement.

          1.   Payment with respect to your Performance Units shall be made in
               cash on the earlier to occur of (i) the Anticipated Termination
               Date or (ii) a Termination Other Than for Cause or Termination
               for Good Reason;


          2.   The Employee's Base Salary shall be increased effective on July
               1, 2000 to $220,000;


          3.   Termination of your employment with the Company on the
               Anticipated Termination Date shall be considered a Termination
               Other Than for Cause (or a Termination Upon a Change in Control
               in the event a Change in Control has occurred prior to, or occurs
               within nine (9) months following, such date);


          4.   The Employer has requested that the Employee continue to work for
               the Employer through the Anticipated Termination Date and as an
               additional inducement to Employee to continue his/her employment
               through such date, in addition to the Severance Compensation
               provided in the Severance Agreement, which shall also be payable
               in connection with a termination on the Anticipated Termination
               Date, the Employee shall be eligible to be paid a bonus equal to
               100% of his/her Base Salary (the "Maximum Bonus Payment") on
               December 31, 2000, December 31, 2001 and December 31, 2002,
               provided, however, that with


<PAGE>


Ms. Debora A. Pfaff
June 30, 2000
Page 2 of 3


               respect to each such bonus payment, 80% of each such bonus
               payment shall be based on achievement of the asset sale criteria
               described on Schedule A attached hereto and incorporated herein
               and 20% of each such bonus payment shall be discretionary.
               Although nothing herein shall be deemed to be a guaranty of
               employment through the Anticipated Termination Date; if Employee
               is terminated in a Termination Other Than for Cause or in a
               Termination for Good Reason prior to the Anticipated Termination
               Date, in addition to and simultaneously with the Severance
               Compensation, Employee shall be paid the Maximum Bonus
               Payment(s) that would have been paid on December 31st of each
               year after such termination, through and including the
               Anticipated Termination Date;

          5.   In accordance with the change to the Company's vacation policy,
               upon any termination you shall be paid for all accrued and unused
               vacation time;


          6.   Outplacement services shall be made available to you for a
               reasonable period of time after any termination; such services
               shall be provided on a basis and for a duration comparable to
               outplacement services offered by the Company to terminated
               employees in November 1998;


          7.   It is hereby agreed that neither the relocation of the Company's
               principal offices from Needham, Massachusetts to Dallas, Texas,
               nor the fact that your duties and responsibilities will
               hereinafter change, including a primary focus towards selling a
               significant portion of the Company's healthcare portfolio, will
               be considered to be a Termination for Good Reason under the
               Severance Agreement;


          8.   For purposes of determining whether a Change in Control has
               occurred pursuant to Paragraph 1.8(d) of the Severance Agreement,
               the initial measurement date shall be January 1, 1999 and the
               calculation shall be based upon the net book value of such assets
               as reported on the Company's financial statements as of that
               date; and


          9.   Except as amended hereby, the Severance Agreement shall remain in
               full force and effect.


<PAGE>


Ms. Debora A. Pfaff
June 30, 2000
Page 3 of 3


         Thank you for your ongoing participation in effectuating the Company's
strategic plan. Please acknowledge your agreement to the foregoing by signing
this letter where indicated below and returning it to the undersigned.

                                                 Very truly yours,

                                                 MEDITRUST CORPORATION

                                                 By:  /s/ Francis W. Cash
                                                    -----------------------
                                                      Francis W. Cash
Acknowledged and Agreed

/s/ Debora A. Pfaff
---------------------
Debora A. Pfaff