<PAGE>
                                                                    EXHIBIT 10.7


                         EXECUTIVE EMPLOYMENT AGREEMENT


                                     BETWEEN


                          EDUCATION REALTY TRUST, INC.


                                       AND


                                CRAIG L. CARDWELL


                                DECEMBER 6, 2004




<PAGE>
                              EMPLOYMENT AGREEMENT


         THIS EMPLOYMENT AGREEMENT (the "Agreement") by and between Education
Realty Trust, Inc. (the "Company"), and Craig L. Cardwell ("You" or "Your")
(collectively, the "Parties"), is effective as of the date of the consummation
of the Company's initial public offering pursuant to an effective registration
statement on Form S-11 (the "Effective Date"). Unless otherwise indicated, all
capitalized terms used in this Agreement are defined in the "Definitions"
section attached as Exhibit A. Exhibit A is incorporated by reference and is
included in the definition of "Agreement."

         WHEREAS, the Company desires to employ You as Executive Vice President
and Chief Investment Officer, and You desire to accept said employment by the
Company;

         WHEREAS, Your position is a position of trust and responsibility with
access to Confidential Information, Trade Secrets, and information concerning
employees and customers of the Company;

         WHEREAS, the Trade Secrets and Confidential Information, and the
relationship between the Company and each of its employees and customers are
valuable assets of the Company and may not be used for any purpose other than
the Company's Business;

         WHEREAS, You acknowledge that if You were to perform services for a
competitor during the Restrictive Period, it would be inevitable that You would
disclose the Company's Trade Secrets and Confidential Information;

         WHEREAS, the Company has agreed to employ You in exchange for Your
compliance with the terms of this Agreement;

         WHEREAS, the Company and You desire to express the terms and conditions
of Your employment in this Agreement.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

         1.       Employment and Duties

                  A.       Position. The Company shall employ You as Executive
         Vice President and Chief Investment Officer.

                  B.       Duties. You agree to perform all duties that are
         consistent with Your position and that may otherwise be assigned to You
         by the Company from time to time.

                  C.       Reporting. You shall report directly to the Board of
         Directors (the "Board") of the Company or any other executive
         designated by the Board from time to time.

                  D.       Devotion of Time. You agree to (i) devote all
         necessary working time required of Your position, (ii) devote Your best
         efforts, skill, and energies to promote and advance the business and/or
         interests of the Company, and (iii) fully perform Your obligations
         under this Agreement. During Your employment, You shall not render
         services to any other entity, regardless of whether You receive
         compensation, without the prior written consent of the Company. You
         may, however, (i) engage in community, charitable, and educational
         activities, (ii) manage Your personal investments, (iii) continue
         working with Allen & O'Hara, Inc.,


<PAGE>

         provided, however, that such work does not compete with the Company and
         does not involve student housing whatsoever, and (iv) with the prior
         written consent of the Company, serve on corporate boards or
         committees, provided that such activities do not conflict or interfere
         with the performance of Your obligations under this Agreement or
         conflict with the interests of the Company.

                  E.       Company Policies. You agree to comply with the
         policies and procedures of the Company as may be adopted and changed
         from time to time, including those described in the Company's employee
         handbook. If this Agreement conflicts with such policies or procedures,
         this Agreement will control.

                  F.       Fiduciary Duties. As an officer of the Company, You
         owe a duty of care and loyalty to the Company, as well as a duty to
         perform Your Duties in a manner that is in the best interests of the
         Company. You owe such duties to the Company in addition to duties
         imposed upon You under applicable law.

         2.       Term. The term of this Agreement shall be for a period of 3
years, beginning on the Effective Date and ending on the second anniversary of
the Effective Date (the "Employment Period"). Upon expiration of the Employment
Period, this Agreement will automatically renew for a one-year period (each a
"Renewal Period"), unless either Party notifies the other Party, in writing, at
least sixty (60) days prior to the end of the Employment Period or the Renewal
Period that the Agreement will not be renewed. If this Agreement is renewed in
accordance with this Section, each Renewal Period shall be included in the
definition of "Employment Period" for purposes of this Agreement. If this
Agreement is not renewed in accordance with this Section, Your employment will
either (a) terminate, or (b) convert to an at-will relationship, meaning that
You may terminate your employment with the Company at any time and for any
reason whatsoever simply by notifying the Company, and the Company may terminate
your employment at any time with or without cause or advance notice. If this
Agreement is not renewed and Your employment converts to an at-will
relationship, then (a) the period in which You continue to be employed with the
Company shall not be included in the definition of "Employment Period" for
purposes of this Agreement, and (b) this Agreement will no longer be in effect;
provided, however, that the restrictive covenants and all post-termination
obligations contained in this Agreement shall survive termination of this
Agreement.

         3.       Compensation.

                  A.       Base Salary. During the Employment Period, the
         Company will pay You an annual base salary ("Base Salary") of
         $175,000.00, minus applicable withholdings, in accordance with the
         Company's normal payroll practices. Your Base Salary will be increased
         annually at the discretion of the Compensation Committee of the Board
         (the "Committee") based upon Your performance and the Company's
         performance; provided, however, that the annual increase in Your Base
         Salary shall not be less than the percentage increase in the applicable
         Consumer Price Index published by the U.S. Bureau of Labor Statistics.

                  B.       Bonus. During the Employment Period, You will receive
         an annual bonus of up to 100% of Your Base Salary only if, as
         determined by the Committee in its sole discretion, You meet certain
         criteria established from year to year by the Committee (the "Bonus").
         You will not receive any Bonus if You do not meet such criteria. In
         addition, You will not receive any Bonus if, for any reason, You are
         not employed on the date on which the Bonus is to be paid. The Bonus
         will be subject to all applicable withholdings and will be paid as soon
         as reasonably practical after the end of the calendar year.


                                       2
<PAGE>

                  C.       Restricted Stock. As soon as possible after execution
         of this Agreement, the Company will request that the Committee grant
         You 35,000 restricted shares of the Company's common stock (the
         "Restricted Stock") pursuant to the terms and conditions of the
         Restricted Stock Grant Certificate (the "Restricted Stock Certificate")
         to be prepared by the Company in accordance with the Stock Incentive
         Plan. The Restricted Stock shall vest pursuant to the terms of the
         Restricted Stock Certificate.

                  D.       Profits Interest Units. As soon as possible after
         execution of this Agreement, the Company will request that the
         Committee cause Education Realty Limited Partner, LLC, a Delaware
         limited liability company controlled by the Company (the "Profits
         Interest LLC"), to grant to You Units in Profits Interest LLC that will
         result in Your receiving with respect to such Units in Profits Interest
         LLC current distributions that are equivalent to those distributions
         that would be received by a holder of 30,000 Common Partnership Units
         in Education Realty Operating Partnership, LP, a Delaware limited
         partnership (the "UPREIT"), pursuant to the terms and conditions of the
         operating agreement of the Profits Interest LLC, as such agreement may
         be amended, restated and supplemented from time to time (the "Profits
         Interest LLC Agreement"). A condition to Your receipt of such interest
         in the Profits Interest LLC shall be the execution by You of the
         Profits Interest LLC Agreement.

                  E.       Benefits Plans. During the Employment Period, You are
         eligible to participate in all benefit plans in effect for executives
         and employees of the Company, subject to the terms and conditions of
         such plans.

                  F.       Vacation. During the Employment Period, You are
         entitled to 4 weeks of paid vacation per calendar year. All vacation
         must be pre-approved by the Board.

                  G.       Executive Benefits. During the Employment Period, You
         will be entitled to receive all other fringe benefits available to
         executives of the Company.

                  H.       Business Expenses. During the Employment Period, the
         Company will reimburse You for all approved business expenses incurred
         by You in the performance of Your duties under this Agreement in
         accordance with the policies and procedures of the Company.

         4.       Termination. This Agreement may be terminated by any of the
following events:

                  A.       Expiration of the Employment Period unless
         renewed/extended as set forth above.

                  B.       Mutual written agreement between You and the Company
         at any time.

                  C.       Your death.

                  D.       Your disability which renders You unable to perform
         the essential functions of Your job even with reasonable accommodation,
         as determined in the Company's sole discretion.

                  E.       For Cause, which shall mean a termination by the
         Company, upon the action of the Board, because of any one of the
         following events:

                  (i)      Your insubordination;

                  (ii)     Your breach of this Agreement;


                                       3
<PAGE>
                  (iii)    Any act or omission by You which injures, or is
                           likely to injure, the Company or the business
                           reputation of the Company;

                  (iv)     Your dishonesty, fraud, malfeasance, negligence or
                           misconduct;

                  (v)      Your failure to (a) satisfactorily perform Your
                           duties under this Agreement, (b) follow the direction
                           of any individual to whom You report, (c) abide by
                           the policies, procedures, and rules of the Company,
                           or (d) abide by laws applicable to You in Your
                           capacity as an employee, executive, or officer of the
                           Company;

                  (vi)     Your arrest, indictment for, conviction of, or entry
                           of a plea of guilty or no contest to, a felony or
                           crime involving moral turpitude;

                  (vii)    Your resignation unless such resignation is based
                           upon Good Reason; or

                  (viii)   Your refusal to perform duties unless such refusal is
                           based upon Good Reason.

                  F.       Your resignation for Good Reason.

                  G.       Without Cause, which shall mean any termination of
         employment by the Company which is not defined in sub-sections A-F
         above.

         5.       Company's Post-Termination Obligations

                  A.       If this Agreement terminates for the reasons set
         forth in Sections 4.A, B, C, D, or E above, then the Company will pay
         You all accrued but unpaid wages, based on Your then current Base
         Salary, through the termination date. The Company shall have no other
         obligations to You, including under any provision of this Agreement,
         Company policy, or otherwise; however, You shall continue to be bound
         by Section 7 and all other post-termination obligations to which You
         are subject, including, but not limited to, the obligations contained
         in this Agreement.

         B.       If this Agreement terminates for any of the reasons set forth
         in Sections 4.F or G above, then the Company will pay You (i) all
         accrued but unpaid wages through the termination date, based on Your
         then current Base Salary; (ii) a payment for all accrued but unpaid
         vacation through Your termination date, based on Your then current
         Base Salary; (iii) a payment for all approved, but unreimbursed,
         business expenses, provided that a request for reimbursement of
         business expenses is submitted in accordance with the Company's
         policies and submitted within five (5) business days of Your
         termination date; (iv) a payment for all earned and accrued but unpaid
         bonuses; and (v) payment of any COBRA continuation coverage premiums
         required for the coverage of You and Your eligible dependents under
         the Company's major medical group health plan for a period of up to 18
         months (or, if less, the period that You and Your eligible dependents
         are entitled to such COBRA continuation coverage).(1) In addition, the
         Company will continue to pay You Your then current Base Salary for
         either the remainder of the initial Employment Period, minus 12 months
         and excluding any renewal period, (up to 24 months), to be paid in
         accordance with the Company's regular payroll practices, or for a
         period of twelve (12) months, to be paid over a period of 12 months in
         accordance with the Company's regular payroll practices,


--------
         (1)    You and Your eligible dependents shall be solely responsible for
any requirements which must be satisfied or actions that must be taken in order
to obtain such COBRA continuation coverage other than the payment of COBRA
premiums.


                                       4
<PAGE>

         whichever is greater. Except as set forth in this Section 5.B, the
         Company shall have no other obligations to You. The Company's
         obligation to provide the payments set forth in this Section 5.B above
         shall be conditioned upon the following (the "Separation Conditions"):

                  (i)      Your execution and non-revocation of a Separation &
                           Release Agreement in a form prepared by the Company
                           by which You release the Company from any and all
                           liability and claims of any kind; and

                  (ii)     Your compliance with the restrictive covenants
                           (Section 7) and all post-termination obligations,
                           including, but not limited, the obligations contained
                           in this Agreement.

                  C.       If You do not execute an effective Separation &
         Release Agreement as set forth above, the Company will not provide any
         payments or benefits to You under Section 5.B. The Company's obligation
         to make the separation payments set forth in Section 5.B shall
         terminate immediately upon any breach by You of any post-termination
         obligations to which You are subject.

         6.       Change of Control. Notwithstanding the provisions of Section
5, if, within one (1) year following a Change of Control, the Company terminates
Your employment without Cause, as defined in Section 4.G, or You resign for Good
Reason, then the Company will pay You (i) all accrued but unpaid wages through
the termination date, based on Your then current Base Salary; (ii) a separation
payment equal to 2x the sum of (A) Your then current Base Salary, and (B) Your
average Bonus for the two (2) year period prior to Change of Control or the time
period within which the Company was in existence prior to Change of Control,
whichever is shorter, which separation payment shall be paid within thirty (30)
days of Your termination date; (iii) a payment for all earned and accrued but
unpaid bonuses; and (iv) payment of any COBRA continuation coverage premiums
required for the coverage of You and Your eligible dependents under the
Company's major medical group health plan for a period of up to 18 months (or,
if less, the period that You and Your eligible dependents are entitled to such
COBRA continuation coverage).(2) The payments and benefits set forth in this
Section 6 shall be provided to You in lieu of any benefits to which You may be
entitled to receive under Section 5.B above; provided, however, that Your right
to receive the separation payments and benefits set forth in this Section 6
shall be subject to the Separation Conditions set forth in Section 5.B above.
The separation payments and benefits set forth in this Section 6 shall
constitute full satisfaction of the Company's obligations under this Agreement,
any Company policy, or otherwise.

         7.       Your Post-Termination Obligations.

                  A.       Return of Materials. Upon the termination of Your
         employment for any reason, You will return to the Company all of the
         Company's property, including, but not limited to, keys, passcards,
         credit cards, customer lists, rolodexes, tapes, software, computer
         files, marketing and sales materials, and any other property, record,
         document or piece of equipment belonging to the Company.

                  B.       Set-Off. If You have any outstanding obligations to
         the Company upon the termination of Your employment for any reason, You
         hereby authorize the Company to deduct any amounts owed to the Company
         from Your final paycheck and/or any amounts that would otherwise be due
         to You, including under Sections 5 or 6 above.

---------------
(2) ID.

                                       5
<PAGE>

                  C.       Non-Disparagement. During Your employment and upon
         the termination of Your employment with the Company for any reason, You
         will not make any disparaging or defamatory statements, whether written
         or verbal, regarding the Company.

                  D.       Restrictive Covenants. You acknowledge that the
         restrictions contained in this Section 7 are reasonable and necessary
         to protect the legitimate business interests of the Company, and will
         not impair or infringe upon Your right to work or earn a living after
         Your employment with the Company ends.

                  (i)      Trade Secrets and Confidential Information. You
                           represent and warrant that: (a) You are not subject
                           to any legal or contractual duty or agreement that
                           would prevent or prohibit You from performing the
                           duties contemplated by this Agreement or otherwise
                           complying with this Agreement, and (b) You are not in
                           breach of any legal or contractual duty or agreement,
                           including any agreement concerning trade secrets or
                           confidential information owned by any other party.

                           You agree that You will not: (a) use, disclose, or
                           reverse engineer the Trade Secrets or the
                           Confidential Information for any purpose other than
                           the Company's Business, except as authorized in
                           writing by the Company; (b) during Your employment
                           with the Company, use, disclose, or reverse engineer
                           (1) any confidential information or trade secrets of
                           any former employer or third party, or (2) any works
                           of authorship developed in whole or in part by You
                           during any former employment or for any other party,
                           unless authorized in writing by the former employer
                           or third party; or (c) upon Your resignation or
                           termination (1) retain Trade Secrets or Confidential
                           Information, including any copies existing in any
                           form (including electronic form), which are in Your
                           possession or control, or (2) destroy, delete, or
                           alter the Trade Secrets or Confidential Information
                           without the Company's written consent.

                           The obligations under this Section 7 shall remain in
                           effect as long as the information constitutes a trade
                           secret or Confidential Information under applicable
                           law. The confidentiality, property, and proprietary
                           rights protections available in this Agreement are in
                           addition to, and not exclusive of, any and all other
                           rights to which the Company is entitled under federal
                           and state law, including, but not limited to, rights
                           provided under copyright laws, trade secret and
                           confidential information laws, and laws concerning
                           fiduciary duties.

                  (ii)     Non-Competition. During the Restricted Period, You
                           agree that You shall not perform the Duties,
                           individually or on behalf of any person, firm,
                           partnership, association, business organization,
                           corporation or entity engaged in the Business within
                           the Territory. The Parties agree and acknowledge
                           that: (a) the periods of restriction and Territory of
                           restriction contained in this Agreement are fair and
                           reasonable in that they are reasonably required for
                           the protection of the Company and that the Territory
                           is the area in which You perform services for
                           Company; and (b) by having access to information
                           concerning employees and actual or prospective
                           Customers of Company, You shall obtain a competitive
                           advantage as to the Company.

                  (iii)    Non-Solicitation of Customers. During the Restricted
                           Period, You will not, directly or indirectly, solicit
                           any Customer of the Company for the purpose of
                           providing any goods or services competitive with the
                           Business within the



                                       6
<PAGE>

                           Territory. The restrictions set forth in this Section
                           7 apply only to the Customers with whom You had
                           Contact.

                  (iv)     Non-Recruit of Employees. During the Restricted
                           Period, You will not, directly or indirectly,
                           solicit, recruit or induce any Employee to (a)
                           terminate his or her employment relationship with the
                           Company or (b) work for any other person or entity
                           engaged in the Business.

                  E.       Post-Employment Disclosure. During the Restricted
         Period, You shall provide a copy of this Agreement to persons and/or
         entities for whom You work or consult as an owner, partner, joint
         venturer, employee or independent contractor. If, during the Restricted
         Period, You work or consult for another person or entity as an owner,
         partner, joint venturer, employee or independent contractor, You shall
         provide the Company with such person or entity's name, the nature of
         such person or entity's business, Your job title, and a general
         description of the services You will provide.

                  F.       Resignation. Upon the termination of Your employment
         with the Company for any reason and upon the request of the Company,
         You shall deliver to the Company a written resignation from all
         offices, membership on the Board, and fiduciary positions in which You
         serve for the Company and each of its subsidiaries and affiliates.

         8.       Work Product. Your employment duties may include inventing in
areas directly or indirectly related to the Business of the Company or to a line
of business that the Company may reasonably be interested in pursuing. All Work
Product shall constitute work made for hire. If (a) any of the Work Product may
not be considered work made for hire, or (b) ownership of all right, title, and
interest to the legal rights in and to the Work Product will not vest
exclusively in the Company, then, without further consideration, You assign all
presently-existing Work Product to the Company, and agree to assign, and
automatically assign, all future Work Product to the Company.

         The Company will have the right to obtain, and hold in its own name,
copyrights, patents, design registrations, proprietary database rights,
trademarks, rights of publicity, and any other protection available in the Work
Product. At the Company's request, You agree to perform, during or after Your
employment with the Company, any acts to transfer, perfect and defend the
Company's ownership of the Work Product, including, but not limited to: (a)
executing all documents (including a formal assignment to the Company) necessary
for filing an application or registration for protection of the Work Product (an
"Application"), (b) explaining the nature of the Work Product to persons
designated by the Company, (c) reviewing Applications and other related papers,
or (d) providing any other assistance reasonably required for the orderly
prosecution of Applications.

         You agree to provide the Company with a written description of any Work
Product in which You are involved (solely or jointly with others) and the
circumstances attendant to the creation sufficient of such Work Product.

         9.       License. During Your employment and after Your employment with
the Company ends, You grant to the Company an irrevocable, nonexclusive,
worldwide, royalty-free license to: (i) make, use, sell, copy, perform, display,
distribute, or otherwise utilize copies of the Licensed Materials, (ii) prepare,
use and distribute derivative works based upon the Licensed Materials, and (ii)
authorize others to do the same. You shall notify the Company in writing of any
Licensed Materials You deliver to the Company.



                                       7
<PAGE>

         10.      Release. During Your employment and after Your employment with
the Company ends, You consent to the Company's use of Your image, likeness,
voice, or other characteristics in the Company's products or services. You
release the Company from any causes of action that You have or may have arising
out of the use, distribution, adaptation, reproduction, broadcast, or exhibition
of such characteristics.

         11.      Injunctive Relief. You agree that if You breach Section 7 of
this Agreement: (a) the Company would suffer irreparable harm; (b) it would be
difficult to determine damages, and money damages alone would be an inadequate
remedy for the injuries suffered by the Company, and (c) if the Company seeks
injunctive relief to enforce this Agreement, You will waive and will not (i)
assert any defense that the Company has an adequate remedy at law with respect
to the breach, (ii) require that the Company submit proof of the economic value
of any Trade Secret or Confidential Information, or (iii) require the Company to
post a bond or any other security. Nothing contained in this Agreement shall
limit the Company's right to any other remedies at law or in equity.

          12.      Payment of Defense Costs. If You are individually named as a
defendant in a lawsuit relating to or arising out of the performance of Your
duties for the Company pursuant to this Agreement, then the Company agrees to
pay the reasonable attorneys' fees and expenses You incur in defending such
lawsuit (the "Defense Costs"). The Company will not pay any damages or any other
sums or relief for which You are held liable. Payment of the Defense Costs shall
be the Company's only obligation under this Section. If You are held liable,
then You agree to reimburse the Company for all Defense Costs the Company paid
to You or on Your behalf. The Company's obligation under this Section shall not
apply to any claim or lawsuit brought by the Company against You.

         13.      Severability. The provisions of this Agreement are severable.
If any provision of this Agreement is determined to be unenforceable, in whole
or in part, then such provision shall be modified so as to be enforceable to the
maximum extent permitted by law. If such provision cannot be modified to be
enforceable, the provision shall be severed from this Agreement to the extent
unenforceable. The remaining provisions and any partially enforceable provisions
shall remain in full force and effect.

         14.      Attorneys' Fees. In the event of litigation relating to this
Agreement, the prevailing party shall be entitled to recover attorneys' fees and
costs of litigation in addition to all other remedies available at law or in
equity.

         15.      Waiver. Either Party's failure to enforce any provision of
this Agreement shall not act as a waiver of that or any other provision. Either
Party's waiver of any breach of this Agreement shall not act as a waiver of any
other breach.

         16.      Entire Agreement. This Agreement, including Exhibit A that is
incorporated by reference, constitutes the entire agreement between the Parties
concerning the subject matter of this Agreement. This Agreement supersedes any
prior communications, agreements or understandings, whether oral or written,
between the Parties relating to the subject matter of this Agreement. Other than
terms of this Agreement, no other representation, promise or agreement has been
made with You to cause You to sign this Agreement.

         17.      Amendments. This Agreement may not be amended or modified
except in writing signed by both Parties.

         18.      Successors and Assigns. This Agreement shall be assignable to,
and shall inure to the benefit of, the Company's successors and assigns,
including, without limitation, successors through merger, name change,
consolidation, or sale of a majority of the Company's stock or assets, and shall
be


                                       8
<PAGE>
binding upon You. You shall not have the right to assign Your rights or
obligations under this Agreement. The covenants contained in Section 7 of this
Agreement shall survive cessation of Your employment with the Company,
regardless of who causes the cessation or the reason for cessation.

         19.      Governing Law. The laws of the State of Tennessee shall govern
this Agreement. If Tennessee's conflict of law rules would apply another state's
laws, the Parties agree that Tennessee law shall still govern.

         20.      No Strict Construction. If there is a dispute about the
language of this Agreement, the fact that one Party drafted the Agreement shall
not be used in its interpretation.

         21.      Notice. Whenever any notice is required, it shall be given in
writing addressed as follows:

         To Company:                Attention: Chief Financial Officer
                                    Education Realty Trust, Inc.
                                    530 Oak Court Drive
                                    Suite 300
                                    Memphis, TN 38117

         To Executive:              Craig L. Cardwell
                                    899 Harbor Bend Road
                                    Memphis, TN 38103

         Notice shall be deemed given and effective three (3) days after the
deposit in the U.S. mail of a writing addressed as above and sent first class
mail, certified, return receipt requested, or when actually received. Either
Party may change the address to which notices shall be delivered or mailed by
notifying the other party of such change in accordance with this Section.

         22.      Consent to Jurisdiction and Venue. You agree that any claim
arising out of or relating to this Agreement shall be brought in a state or
federal court of competent jurisdiction in Tennessee. You consent to the
personal jurisdiction of the state and/or federal courts located in Tennessee.
You waive (i) any objection to jurisdiction or venue, or (ii) any defense
claiming lack of jurisdiction or improper venue, in any action brought in such
courts.

         23.      AFFIRMATION. YOU acknowledge that YOU HAVE carefully read this
Agreement, YOU know and understand its terms and conditions, and YOU HAVE had
the opportunity to ask the Company any questions YOU may have had prior to
signing this Agreement.

         24.      Compliance with Code Section 409A. Notwithstanding any
provision of this Agreement to the contrary, it is the intent of the parties
hereto that this Agreement shall not create or provide for any "nonqualified
deferred compensation plan" (as defined in Code Section 409A(d)(1)) unless such
"nonqualified deferred compensation plan" shall meet the requirements of Code
Section 409A(a)(2), (3) and (4), and this Agreement and any plans, agreements or
arrangements between the parties shall be interpreted accordingly. If any
"nonqualified deferred compensation plan" created or provided for pursuant to
this Agreement shall fail to meet the requirements of Code Section 409A(a)(2),
(3) or (4) due to a term or provision of such "nonqualified deferred
compensation plan" prior to taking into account the provisions of this paragraph
24, such "nonqualified deferred compensation plan" and its corresponding terms
or provisions causing such failure shall be deemed to be modified and shall be
interpreted (1) so as not to allow any distributions or payments to be made
until one of the events listed in Code Section 409A(a)(2)(A) have occurred,


                                       9
<PAGE>
(2) so as not to allow any acceleration of the time or schedule of any payment
or distribution in accordance with Code Section 409A(a)(3), and (3) so that any
elections regarding deferrals, or the timing or form of distributions or
payments, shall comply with the provisions of Code Section 409A(a)(4). For
example, should this Agreement provide for a payment from a "nonqualified
deferred compensation plan" earlier than the occurrence of an event listed in
Code Section 409A(a)(2)(A), such payment shall not occur until the occurrence of
an event listed in Code Section 409A(a)(2)(A) notwithstanding any terms or
provisions of any document effectuating such "nonqualified deferred compensation
plan" to the contrary, and this Agreement shall be deemed to be modified
accordingly.

                         [SIGNATURES ON FOLLOWING PAGE]


                                       10
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement
effective as of the Effective Date.


                                    EDUCATION REALTY TRUST, INC.


                                    By:   /s/ PAUL O. BOWER
                                          --------------------------------------
                                    Name: Paul O. Bower
                                          --------------------------------------
                                    Title: President and Chief Executive Officer
                                          --------------------------------------

                                    Date: 12/6/04
                                          --------------------------------------


                                    CRAIG L. CARDWELL


                                      /s/ CRAIG L. CARDWELL
                                    --------------------------------------------

                                    Date: 12/6/04
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                                    EXHIBIT A

                                   DEFINITIONS

A.       "Business" shall mean the business of owning and managing off-campus
         student housing communities, providing third-party management services
         for student housing communities, and providing third-party development
         consulting services for student housing communities.

B.       "Change of Control" means (i) the sale, transfer, or other disposition
         of eighty percent (80%) or more of the aggregate value of the Company's
         assets, as reasonably determined by the Board, or (ii) a sale of fifty
         percent (50%) or more of the then outstanding voting stock of the
         Company in a single transaction or a series of related transactions.

C.       "Confidential Information" means (i) information of the Company, to the
         extent not considered a Trade Secret under applicable law, that (a)
         relates to the business of the Company, (b) possesses an element of
         value to the Company, (c) is not generally known to the Company's
         competitors, and (d) would damage the Company if disclosed, and (ii)
         information of any third party provided to the Company which the
         Company is obligated to treat as confidential. Confidential Information
         includes, but is not limited to, (i) future business plans, (ii) the
         composition, description, schematic or design of products, future
         products or equipment of the Company, (iii) communication systems,
         audio systems, system designs and related documentation, (iv)
         advertising or marketing plans, (v) information regarding independent
         contractors, employees, clients and customers of the Company, and (vi)
         information concerning the Company's financial structure and methods
         and procedures of operation. Confidential Information shall not include
         any information that (i) is or becomes generally available to the
         public other than as a result of an unauthorized disclosure, (ii) has
         been independently developed and disclosed by others without violating
         this Agreement or the legal rights of any party, or (iii) otherwise
         enters the public domain through lawful means.

D.       "Contact" means any interaction between You and a Customer which (i)
         takes place in an effort to establish, maintain, and/or further a
         business relationship on behalf of the Company, and (ii) occurs during
         the last year of Your employment with the Company (or during Your
         employment if employed less than a year).

E.       "Customer" means any person or entity to whom the Company has sold its
         products or services, or solicited to sell its products or services.

F.       "Duties" means identifying and underwriting property acquisition
         opportunities; structuring, negotiating and closing property
         acquisition transactions; and assisting with the integration of
         property acquisitions into the Company's portfolio.

G.       "Employee" means any person who (i) is employed by the Company at the
         time Your employment with the Company ends, (ii) was employed by the
         Company during the last year of Your employment with the Company (or
         during Your employment if employed less than a year), or (iii) is
         employed by the Company during the Restricted Period.

H.       "Good Reason" shall exist if (i) the Company, without Your written
         consent, materially reduces Your then current title, duties or
         responsibilities, provided, however, that the occurrence of a Change of
         Control and the corresponding change in Your duties and
         responsibilities one (1) or more year(s) after the Change of Control
         shall not, by itself, be sufficient to qualify as Good Reason under
         this clause, (ii) You provide written notice to the Company of such
         action and


<PAGE>

         provide the Company with thirty (30) days to remedy such action (the
         "Cure Period"), (iii) the Company fails to remedy such action within
         the Cure Period, and (iv) You resign within ten (10) days of the
         expiration of the Cure Period. Good Reason shall not include any
         isolated, insubstantial or inadvertent action that (i) is not taken in
         bad faith, and (ii) is remedied by the Company within the Cure Period.

I.       "Licensed Materials" means any materials that You utilize for the
         benefit of the Company, or deliver to the Company or the Company's
         customers, which (i) do not constitute Work Product, (ii) are created
         by You or of which You are otherwise in lawful possession, and (iii)
         You may lawfully utilize for the benefit of, or distribute to, the
         Company or the Company's customers.

J.       "Restricted Period" means the time period during Your employment with
         the Company, and for two years after Your employment with the Company
         ends.

K.       "Territory" means the states of Alabama, Arizona, California, Colorado,
         Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland,
         Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma,
         Pennsylvania, South Carolina, Tennessee and Texas.

L.       "Trade Secrets" means information of the Company, and its licensors,
         suppliers, clients and customers, without regard to form, including,
         but not limited to, technical or nontechnical data, a formula, a
         pattern, a compilation, a program, a device, a method, a technique, a
         drawing, a process, financial data, financial plans, product plans, or
         a list of actual or potential customers or suppliers which is not
         commonly known by or available to the public and which information (i)
         derives economic value, actual or potential, from not being generally
         known to, and not being readily ascertainable by proper means by, other
         persons who can obtain economic value from its disclosure or use, and
         (ii) is the subject of efforts that are reasonable under the
         circumstances to maintain its secrecy.

M.       "Work Product" means (i) any data, databases, materials, documentation,
         computer programs, inventions (whether or not patentable), designs,
         and/or works of authorship, including but not limited to, discoveries,
         ideas, concepts, properties, formulas, compositions, methods, programs,
         procedures, systems, techniques, products, improvements, innovations,
         writings, pictures, audio, video, images of You, and artistic works,
         and (ii) any subject matter protected under patent, copyright,
         proprietary database, trademark, trade secret, rights of publicity,
         confidential information, or other property rights, including all
         worldwide rights therein, that is or was conceived, created or
         developed in whole or in part by You while employed by the Company and
         that either (i) is created within the scope of Your employment, (ii) is
         based on, results from, or is suggested by any work performed within
         the scope of Your employment and is directly or indirectly related to
         the Business of the Company or a line of business that the Company may
         reasonably be interested in pursuing, (iii) has been or will be paid
         for by the Company, or (iv) was created or improved in whole or in part
         by using the Company's time, resources, data, facilities, or equipment.


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