Document:

EX-10.1

SEVERANCE AND RELEASE AGREEMENT

This severance and release agreement (the “Termination Release”) is made as of the 30th day of
June, 2005 by Shelley D. Schorsch (the “Executive”) and First States Group, L.P. (the “Company”).

WHEREAS, the Executive and the Company have entered into an Employment Agreement (the
“Employment Agreement”) dated as of January 1, 2004 that provides for certain compensation and
severance amounts upon her termination of employment; and

WHEREAS, the Executive has agreed, pursuant to the terms of the Employment Agreement, to
execute a release and waiver in the form set forth in this Termination Release in consideration of
the Company’s agreement to provide the compensation and severance amounts upon her termination of
employment set out in the Employment Agreement; and

WHEREAS, the Executive has incurred a termination of employment effective as of her last day
of employment with the Company on June 30, 2005 (the “Termination Date”); and

WHEREAS, the Company and the Executive desire to settle all rights, duties and obligations
between them, including without limitation all such rights, duties, and obligations arising under
the Employment Agreement or otherwise out of the Executive’s employment by the Company.

NOW THEREFORE, intending to be legally bound and for good and valid consideration the
sufficiency of which is hereby acknowledged, the Executive and the Company agree as follows:

1. SEVERANCE BENEFITS. The Company shall pay and provide the Executive the following
severance benefits:

a) The Company shall pay the Executive all amounts due and payable under the terms of
the Executive’s Employment Agreement for services rendered by the Executive through the
Termination Date. Such payment shall be made in accordance with the Company’s normal and
customary payroll practices;

b) The Company shall promptly reimburse the Executive for all business expenses
incurred through the Termination Date, provided the Executive submits a request for such
reimbursement in accordance with Company reimbursement policy no later than one month
following the Termination Date;

c) The Company shall pay the Executive the sum of $817,376.92 (the “Severance
Payment”), less any applicable income tax withholding required under federal, state, or
local law. The Severance Payment shall be paid in a single lump sum cash payment no later
than July 15, 2005. Accrued but unused vacation through the Termination Date is included in
the Severance Payment;

d) The Executive, her spouse and her eligible dependants, and their respective
beneficiaries where applicable, shall be entitled to participate in the Company’s
healthcare, dental and prescription drug plans until June 30, 2008 as set forth in, and in
accordance with, Section 8(a)(v) of the Employment Agreement, which section is incorporated
by reference;

e) All of the unvested shares from the Executive’s 47,000 shares of American Financial
Realty Trust (“AFRT”) restricted stock granted on July 1, 2003, 30,000 shares of AFRT
restricted stock granted on January 2, 2004, and 18,774 shares of AFRT restricted stock
granted on January 4, 2005, shall vest immediately as of the Termination Date and all
restrictions on the sale of such shares (as well as all restricted shares previously vested)
shall lapse;

f) All of the unvested options from the Executive’s option to purchase 100,000 shares
of AFRT common stock granted on December 18, 2002, shall vest immediately as of the
Termination Date, and all outstanding options from such grant shall remain exercisable until
June 30, 2007;

g) On the Termination Date, AFRT shall grant to the Executive 48,276 units (the
“Units”). Each Unit shall represent the right of the Executive to receive an equivalent
number of shares of AFRT common stock on January 3, 2006, which shall hereinafter be
referred to as the “Redemption Date,” so that on the Redemption Date the Units shall be
converted into shares of AFRT common stock and, upon such conversion, the Executive shall
receive 48,276 shares of AFRT common stock. Prior to the Redemption Date, no actual
transfer of AFRT shares will be made to the Executive; however, at the time of grant, the
Units shall be credited to a bookkeeping account maintained on the records of AFRT for this
purpose. Until the Redemption Date, the Executive shall be an unsecured general creditor of
AFRT with respect to any rights to receive AFRT shares, the Executive shall not have any
interest in any fund or specific assets of AFRT by reason of this grant of Units or the
account established for the Executive, and there shall not be any guarantee of the value
that the Executive will receive on the Redemption Date. In addition, for all periods prior
to the Redemption Date, the Executive shall no voting rights with respect to any AFRT shares
represented by the Units and the Executive shall not be entitled to any dividends paid on
any AFRT shares represented by the Units. The Executive shall be responsible for the
payment of any taxes that result from the grant or redemption of the Units and shall pay to
the Company the amount of any withholding taxes. The AFRT shares that will be issued to the
Executive on the Redemption Date shall be issued to the Executive under the American
Financial Realty Trust 2002 Equity Incentive Plan;

h) The Executive’s 5.0% OPP Allocation shall be 30/36 vested as of the Termination
Date. The Executive will thus be vested in 4.167% of the OPP upon the Termination Date and
will forfeit back to the OPP the remaining 0.833% of the Executive’s original OPP
Allocation. The Executive will participate in the OPP at the 4.167% allocation level with
respect to any Cash Award and/or Share Award (as defined in the OPP) paid out to
participants for the January 1, 2006 Valuation Date. The payment of any Cash Awards and/or
the issuance of any Share Awards shall be made at the same time as the payment and/or
issuance is made to other OPP participants;

i) The Company will facilitate the transfer of the Executive’s 401(k) account (or the
balance thereof) into another such account or another retirement savings plan, as
applicable, if requested by the Executive;

j) The Company shall maintain, until June 30, 2008, directors and officers insurance
coverage for the Executive covering her acts or omissions while an officer of the Company
and AFRT on a basis no less favorable to her than the coverage provided to current officers
and trustees. Additionally, through the sixth anniversary of the Termination Date, the
Company shall maintain directors and officers insurance coverage for the Executive covering
her acts or omissions while an officer of the Company and AFRT on a basis no less favorable
to her than the coverage provided to then-current officers and trustees or, in the event of
a change of control, to former officers and trustees of the Company and AFRT and the
then-current officers and trustees of their respective successor entities.

k) For such period after the Termination Date that the Executive shall continue to
represent AFRT as “Co-Founder” in an advisory, corporate, industry, civic or charitable
capacity, the Company shall provide the Executive with the full-time use of (1) office
facilities and related services, including desktop and laptop computers, office and cellular
phone service, PDA service and secretarial support, and (2) corporate automobiles and car
services. The Company shall provide the foregoing in the Jenkintown, Pennsylvania and New
York, New York metropolitan areas, and in such other locations where the Company maintains
corporate offices. During such period, which shall be for three years after the Termination
Date, continuing on a year to year basis thereafter unless terminated within 30 days prior
thereto by either the Executive of the Company, the Executive shall not be an employee of
the Company and shall receive no compensation or benefits, except as specifically provided
for herein.

l) Section 9(c) and Sections 10, 11, 13, 14, 15, and 16 of the Employment Agreement
are hereby incorporated by reference.

2. RELEASE. In consideration for the payments to be made pursuant to this Termination
Release:

(a) Executive knowingly and voluntarily releases, acquits and forever discharges the Company,
and its respective owners, parents, stockholders, predecessors, successors, assigns, agents,
directors, officers, employees, representatives, divisions and subsidiaries (collectively, the
“Releasees”) from any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, damages, causes of action, suits, rights, costs, losses, debts and expenses of any
nature whatsoever, known or unknown, suspected or unsuspected, foreseen or unforeseen, matured or
unmatured, against them which the Executive or any of her heirs, executors, administrators,
successors and assigns (“Executive Persons”) ever had, now has or at any time hereafter may have,
own or hold by reason of any matter, fact, or cause whatsoever from the beginning of time up to and
including the date of this Termination Release, including without limitation all claims for salary,
bonuses, severance pay, vacation pay or any benefits arising under the Employee Retirement Income
Security Act of 1974, as amended; any claims of sexual harassment, or discrimination based upon
race, color, national origin, ancestry, religion, marital status, sexual orientation, citizenship
status, medical condition or disability under Title VII of the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the American with Disabilities Act, Section 1981 of the Civil Rights Acts of
1866 and 1871, the Equal Pay Act, The Rehabilitation Act, The Consolidated Omnibus Budget
Reconciliation Act, as amended, The Fair Labor Standards Act, as amended, and any other federal,
state or local law prohibiting discrimination in employment; any claims of age discrimination under
the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act,
or under any other federal, state or local law prohibiting age discrimination; claims of breach of
implied or express contract, breach of promise, misrepresentation, negligence, fraud, estoppel,
defamation, infliction of emotional distress, violation of public policy, wrongful or constructive
discharge, or any other employment-related tort; any claim for costs, fees, or other expenses,
including attorneys fees; and all claims under any other federal, state or local laws relating to
employment, except in any case to the extent such release is prohibited by applicable federal,
state and/or local law. Notwithstanding anything herein to the contrary, in no event shall this
Termination Release apply to Executive’s rights as a shareholder of the Company, the enforcement of
the terms of this Termination Release, Executive’s right to indemnification under this Termination
Release or otherwise, and rights to benefits under any plan or program of the Company in which
Executive participated and under which she accrued and is due a benefit.

(b) Executive represents that she has not filed or permitted to be filed against the
Releasees, any complaints, charges or lawsuits and covenants and agrees that she will not seek or
be entitled to any personal recovery in any court or before any governmental agency, arbitrator or
self-regulatory body against any of the Releasees arising out of any matters set forth in Section
1(a) hereof. If Executive has filed a complaint, charge, grievance, lawsuit or similar action, she
agrees to remove, dismiss or take similar action to eliminate such complaint, charge, grievance,
lawsuit or similar action within five (5) days of signing this Termination Release.

(c) Notwithstanding the foregoing, this Termination Release is not intended to interfere with
Executive’s right to file a charge with the Equal Employment Opportunity Commission (hereinafter
referred to as the “EEOC”) in connection with any claim she believes she may have against the
Company. However, Executive hereby agrees to waive the right to recover money damages in any
proceeding she may bring before the EEOC or any other similar body or in any proceeding brought by
the EEOC or any other similar body on her behalf. This Termination Release does not release, waive
or give up any claim for workers’ compensation benefits, vested retirement or welfare benefits she
is entitled to under the terms of the Company’s retirement and welfare benefit plans, as in effect
from time to time, any right to unemployment compensation that Executive may have, or her right to
enforce her rights under the Employment Agreement.

3. CONFIRMATION OF OBLIGATIONS. Executive hereby confirms and agrees to her continuing
obligation under the Employment Agreement after termination of employment not to directly or
indirectly disclose to third parties or use any Confidential Information (as defined in the
Employment Agreement) that she may have acquired, learned, developed, or created by reason of her
employment with the Company. Executive also confirms that she has returned, or will promptly
return, all Company property, except as otherwise provided in Section 1(k) above.

4. CONFIDENTIALITY; NO COMPETITION; NONSOLICITATION. Executive hereby confirms and agrees to
her confidentiality, nonsolicitation and non-competition obligations under the Employment
Agreement. For the avoidance of doubt, the Company and the Executive acknowledge that the
“Noncompete Period” as defined in the Employment Agreement shall expire on December 31, 2006.

5. NO DISPARAGEMENT. Each of the Executive and the Company agree not to disparage the other,
including making any statement or comments or engaging in any conduct that is disparaging or
derogatory toward the Executive or the Company, as the case may be, whether directly or indirectly,
by name or innuendo; provided, however, that nothing in this Termination Release shall
restrict communications protected as privileged under federal or state law to testimony or
communications ordered or required by a court or an administrative agency of competent
jurisdiction.

6. CONFIDENTIALITY. Each of the Executive and the Company agree to keep the terms of this
Termination Release confidential and shall not disclose the fact or terms to third parties, except
as required by applicable law or regulation or by court order; provided, however, that
Executive may disclose the terms of this Termination Release to members of her immediate family,
her attorney or counselor, and persons assisting her in financial planning or tax preparation,
provided these people agree to keep such information confidential; provided, further,
however, that the Company may disclose the terms of this Termination Release to its certified
public accountants, outside counsel or others on a need to know basis, provided these people agree
to keep such information confidential.

7. PRESS RELEASES AND PUBLIC STATEMENTS. The Executive shall have the opportunity to review
AFRT’s proposed press release announcing the termination of the Executive’s employment.

8. SECTION 409A OF THE CODE. To the extent that any payment to the Executive under this
Termination Release is deemed to be deferred compensation subject to the requirements of Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the payment of such benefit
is subsequently determined to not comply with the requirements of Section 409A of the Code, the
Company shall amend this Termination Release so that such payment will be made in accordance with
the requirements of Section 409A of the Code. Amendment of the Termination Release to comply with
Section 409A of the Code will not result in the Executive being entitled to receive any enhanced
benefit under this Termination Release.

9. ACKNOWLEDGMENT. The Company has advised the Executive to consult with an attorney of her
choosing prior to signing this Termination Release and the Executive hereby represents to the
Company that she has been offered an opportunity to consult with an attorney prior to signing this
Termination Release. The Executive shall have forty-five (45) days to consider the waiver of her
rights in this Termination Release, although she may sign this Termination Release sooner if she
chooses. Once she has signed this Termination Release, the Executive shall have seven (7)
additional days from the date of execution to revoke her consent to the waiver of her rights. If no
such revocation occurs, the Executive’s waiver of rights in this Termination Release shall become
effective seven (7) days from the date of execution by the Executive. In the event that the
Executive revokes her waiver of rights in this Termination Release, this Termination Release will
have no force and effect and no Severance Payments (as defined in the Agreement) shall be due or
payable.

9. GOVERNING LAW. This Termination Release shall be governed and construed in accordance with
the laws of Commonwealth of Pennsylvania, without giving effect to principles of conflicts law.

1

IN WITNESS WHEREOF, the Executive and the Company have executed this Termination Release as of
the day and year first above written.

	 	 	 	 	 
	FIRST STATES GROUP, L.P.
By: First States Group, LLC
Its general partner
	 	SHELLEY D. SCHORSCH

	By: ___________________________
Name: Edward J. Matey Jr.
Title: Executive Vice President and
 General Counsel
	 	 	—	 

GUARANTEE:

For good and valuable consideration, including the Executive’s agreement to provide the release and
waiver contained in this Termination Release, the obligations of First States Group, L.P. under
this Termination Release, dated June 30, 2005, with Shelley D. Schorsch, shall be guaranteed by
American Financial Realty Trust and American Financial Realty Trust agrees to be bound to all
obligations of First States Group, L.P. hereunder to the same extent as First States Group, L.P.

	 
	 

	AMERICAN FINANCIAL REALTY TRUST

By:      

Name: Edward J. Matey Jr.

Title: Executive Vice President

and

General Counsel

Dated: June 30, 2005

	 

2Exhibit 10.3

                 THIS DEED is made on the 14th day of JUNE, 2005

           This extension of time to pay licensing fee deed is between

FIT  FOR  BUSINESS   AUSTRALIA  PTY  LTD  (ABN  96085568672)  FIT  FOR  BUSINESS
INTERNATIONAL,  INC. (their successors and assigns jointly and severally "FFBI")
AND

LR GLOBAL MARKETING PTY LTD, (ACN 097443082),  an Australian  Corporation acting
as trustee for Fit For Business  Australia/New Zealand Trust (the "trust").  The
Director of LR Global  Marketing  Pty Ltd,  Laraine  Richardson  and the Company
Secretary Dianne Waghorne, and the beneficiaries of the trust Laraine Richardson
and Dianne  Waghorne  (their  successors  and assigns  jointly and severally "LR
Global")

Whereas
     1.   L R  Global  Marketing  Pty  Ltd  as  trustee  for  Fit  For  Business
          Australia/New  Zealand Trust (the  Applicant),  and "Fit For Business"
          ("the company"),  executed a licensing agreement on the 25th of August
          2004 for the right to represent  the Fit For  Business  program in the
          marketplace; and
     2.   The licensing  fee of U5$500,000  was due and payable by the applicant
          in total on or before 31st December 2004; and
     3.   The applicant had paid AUD$165,000 on the 4th January 2006; and
     4.   That the  remainder  of the  license  fee being;  the  license  fee of
          USD$500,000;  less; the part payment of  AUD$165,000  would be due and
          payable as at the 31st of May 2005; and

it is now agreed:

     5.   L R  Global  Marketing  Pty  Ltd  as  trustee  for  Fit  For  Business
          Australia/New  Zealand Trust (the  Applicant),  will pay AUD$10,000 to
          the company by 14th June 2005.
     6.   That the  remainder  of the  license  fee being;  the  license  fee of
          USD$500,000;  lees;  the part payment of  AUD$165,000  and  AUD$10,000
          would be due and payable  within sixty days of FFBI common stock being
          quoted on the OTC Bulletin Board (or any other  recognized  exchange);
          and
     7.   That LR Global and their  successors and assigns jointly and severally
          will  personally  gurantee the payment of the remainder of the licence
          fee as determined by this deed; and
     8.   The  determination  of the remainder of the license fee amount will be
          ascertained by utilising the exchange rates as notified by the Reserve
          Bank of Australia on the data of final payment.

<PAGE>
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SIGNED, SEALED AND DELIVERED by Laraine Richardson )
...................as Guarantor in the presence of: )   _______________________________________________X
                                                       Signature of Guarantor

_________________________________________________X
Signature of Witness

_________________________________________________X
Name

_________________________________________________X
Address

SIGNED, SEALED AND DELIVERED by Dianne Waghorne    )
...................as Guarantor in the presence of: )   _______________________________________________X
                                                       Signature of Guarantor

_________________________________________________X
Signature of Witness

_________________________________________________X
Name

_________________________________________________X
Address

<PAGE>

EXECUTED AS A DEED

FOR AND ON BEHALF OF LR GLOBAL MARKETING PTY
LTD. (ACN 097443082) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF LR GLOBAL MARKETING
PTY LTD. (ACN 097443082) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF Fit For Business
Australia/New Zealand Trust in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF FIT FOR BUSINESS AUSTRALIA
PTY LTD (ABN 96085568672) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF FIT FOR BUSINESS AUSTRALIA
PTY LTD (ABN 96085568672) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

</TABLE>

<PAGE>

PERSONAL AND DIRECTORS GUARANTEE and IDEMNITY
---------------------------------------------

THIS DEED is made on the 14th day of JUNE, 2005

BETWEEN:       FIT FOR  BUSINESS  AUSTRALIA  PTY LTD (ABN  96085568672)  FIT FOR
               BUSINESS  INTERNATIONAL,   INN,  (their  successor*  and  assigns
               jointly and severalty "FFBI")

AND:           THE LICENSEE,  LR GLOBAL MARKETING PTY LTD. (ACN  097443082),  an
               Australian  Corporation  acting as trustee  for Fit For  Business
               Australia/New  Zealand Trust,  its personal  representatives  and
               permitted  assigns  and  if a  corporation,  its  successors  and
               assigns, jointly and each of them severally ("the Licensee")

AND:           THE GUARANTORS,  Laraine Richardson and Dianne Waghorne named and
               described   in  the   Schedule   hereto   and,   their   personal
               representatives  and permitted  assigns and assigns,  jointly and
               each of them severally ("the Guarantors")

IN  CONSIDERATION  of  FFBI  agreeing  to  the  Extension  of  Time  Deed  ("the
Agreement") dated June 2005, the Licensee AGREES that if FFBI executes the deed,
then the Licensee and Guarantors  shall be bound by the terms and conditions set
out herein ("this Agreement"):

In  consideration  of FFBI at the request of the  Guarantors  entering into this
Agreement with the Licensee the Guarantees covenants and agrees, with FFBI that:

1.   The  Guarantors  guarantee  to FFBI  that  they  will be with the  Licensee
     jointly and  severally  liable to FFBI for the due payment of all moneys to
     be paid by the Licensee under the Agreement and for the due performance and
     observance by the Licensee of all the covenants terms and conditions of the
     Agreement on the part of the Licensee to be performed and observed.

2.   The Guarantors  will  indemnify  FFBI and agrees at all times  hereafter to
     keep FFBI  indemnified  from and against all losses and expenses which FFBI
     may suffer or incur in consequence of my breach or non-observance of any of
     the  covenants  terms and  conditions  of the  Agreement an the part of the
     Licensee to be  performed or observed  and the  Guarantors  agrees that the
     Guarantors shall remain liable to FFBI under this Indemnity notwithstanding
     as a consequence of such breach or non-observance FFBI has exercised any of
     its  rights  under the  Agreement  including  its  rights of  re-entry  and
     notwithstanding  that the  Licensee  (being a  company)  maybe  wound up or
     dissolved  or  (being  a  natural  person)  may be  declared  bankrupt  and
     notwithstanding  that the guarantee  given by the Guarantors may be for any
     reason whatsoever be unenforceable either in whole or in part.

3.   On any default or failure by the Licensee to observe and perform any of the
     covenants  terms  and  conditions  of the  Agreement  the  Guarantors  will
     forthwith  on demand by FFBI pay all  monies  outstanding  and make good to
     FFBI all losses and expenses  sustained or incurred by FFBI by reason or in
     consequence of any such default or failure by the Licensee or in performing
     or observing  any of the  covenants  terms and  conditions of the Agreement
     without the necessity of any prior demand having been made on the Licensee.
     A demand on the Guarantors  shall be deemed to have been duly made if it is
     in  writing  and  signed  on behalf of FFBI by its  authorized  officer  or
     solicitor and has been given to the  Guarantors or left at or posted to the
     address  of the  Guarantors  as shown in the  Schedule  or such last  known
     address as notified to FFBI in writing by the  Guarantors.  This deed shall
     not be  affected  by any action  taken or notice  issued in relation to say
     other securities.

4.   FFBI shell be under no obligation  to marshall in favour of the  Guarantors
     any security whatsoever held by FFBI.

5.   The liability of the Guarantors  under this  guarantee and indemnity  shall
     not be affected  by the  granting  of time or any other  indulgence  to the
     Licensee  or by  the  compounding  compromise  release  abandonment  waives
     variation  or renewal of any of the rights of FFBI  against the Licensee or
     by any  variation of the Agreement or by any neglect or emission to enforce
     such rights or by any other thing which under the law  relating to sureties
     would or might but for this provision release the Guarantors in whole or in
     part from his obligations under this guarantee.

<PAGE>

6.   Notwithstanding  that  as  between  the  Guarantors  and the  Licenses  the
     Guarantors may be a surety only  nevertheless as between the Guarantors and
     FFBI the  Guarantors  shall be deemed to be a primary debtor and contractor
     jointly and severally with the Licensee.

7.   To the fullest extent permitted by law the Guarantors hereby waives such of
     their  rights  as surety  or  indemnifier  (legal  equitable  statutory  or
     otherwise) which may at any time be inconsistent with any of the provisions
     of the guarantee and indemnity contained in this guarantee.

8.   The covenants and agreements  made or given by the Guarantors  shall not be
     conditional  or  contingent  in any way or  dependent  upon the validity or
     enforceability  of the  covenants  and  agreements  of any other person and
     shall be and remain binding notwithstanding that any other person shall not
     have  executed  or  duly  executed  the  Agreement  or this  guarantee  and
     indemnity.

9.   The  obligations  of the  Guarantors  under  the  guarantee  and  indemnity
     contained  in this deed shall  continue to remain in force until all moneys
     payable  pursuant to the Agreement shall have been paid and until all other
     obligations  and  indemnities  shall  have  been  performed   observed  and
     satisfied  and such  obligations  shall not be reduced or  affected  by any
     notice  to quit  given  by  either  party  to the  Agreement  or the  death
     insolvency  liquidation or dissolution of the Licensee or the Guarantors at
     either  of  them  and  this  Guarantee  shall  be  a  continuing   security
     irrespective of any amounts which may be paid to FFBI by or on behalf of or
     for the credit of the Licensee at any time.

10.  Where  there  is  more  than  one  person  or  corporation  which  together
     constitute the Guarantors to this Agreement the obligations and liabilities
     of each and every such person or corporation shall be joint and several.

11.  The Guarantors  acknowledges  that FFBI has given the  Guarantors  full and
     unrestricted  opportunity  to  seek  independent  legal  advice  as to  the
     Guarantors obligations hereunder prior to the signing of this Guarantee and
     the Guarantors  acknowledges that FFBI is under no obligation to notify the
     Guarantors  of any  changes  to the  Agreement  or any  dealings  with  the
     Licensee.

12.  In the event of liquidation  or bankruptcy of the Licensee,  the Guarantors
     will not prove in such liquidation or bankruptcy in competition with FFBI.

13.  The laws of Queensland in Australia  where the Agreement and this deed have
     been made govern this Agreement.

                                    SCHEDULE

Licensee:     Name: LR GLOBAL MARKETING PTY LTD.(ACN 097443082),

              Address    P.O. Box 3085
                      -------------------------------

              State      Wamberal N.S.W. 2260
                      -------------------------------

              Fax     +65 62517370 - Fax +65 62524983
                      -------------------------------

Guarantors: Laraine Richardson                          Dianne Waghorne

Address ____________________________   Address ____________________________

        ____________________________           ____________________________

Fax     ____________________________   Fax     ____________________________

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EXECUTED AS A DEED

FOR AND ON BEHALF OF LR GLOBAL MARKETING PTY
LTD. (ACN 097443082) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF LR GLOBAL MARKETING
PTY LTD. (ACN 097443082) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF Fit For Business
Australia/New Zealand Trust in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF FIT FOR BUSINESS AUSTRALIA
PTY LTD (ABN 96085568672) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

SIGNED FOR AND ON BEHALF OF FIT FOR BUSINESS AUSTRALIA
PTY LTD (ABN 96085568672) in the presence of

_________________________________________________X   _________________________________________________X
Signature of Witness                                 Signature of Authorized Officer

_________________________________________________X   _________________________________________________X
Name                                                 Name

_________________________________________________X   _________________________________________________X
Address                                              Address

<PAGE>

SIGNED, SEALED AND DELIVERED by Laraine Richardson )
...................as Guarantor in the presence of: )   _______________________________________________X
                                                       Signature of Guarantor

_________________________________________________X
Signature of Witness

_________________________________________________X
Name

_________________________________________________X
Address

SIGNED, SEALED AND DELIVERED by Dianne Waghorne    )
...................as Guarantor in the presence of: )   _______________________________________________X
                                                       Signature of Guarantor

_________________________________________________X
Signature of Witness

_________________________________________________X
Name

_________________________________________________X
Address

</TABLE>

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