Document:

Employment Agreement, dated April 27, 2005

 Exhibit 10.1 
  
 EMPLOYMENT AGREEMENT 
 BETWEEN 
 DAVID J. NETTINA 
 AND 
 FIRST STATES GROUP, L.P. 
  
 This Employment Agreement (the “Agreement”), dated as of April 27, 2005 between First States Group, L.P., a Delaware limited partnership
(the “Company”), and David J. Nettina (the “Executive”): 
  
 WHEREAS, American Financial Realty Trust, a Maryland real estate investment trust (the “REIT”), is a limited partner and the sole owner of the general partner of the Company; 
  
 WHEREAS, this Agreement amends and restates the Employment Agreement between
the Company and the Executive, dated February 24, 2005 (the “Original Agreement”), under which the Executive’s employment with the Company became effective on March 14, 2005 (the “Original Effective Date”); and 

 
 WHEREAS, the Company wishes to continue to employ the Executive in the
capacities and on the terms and conditions set out below, and the Executive has agreed to continue such employment, in the capacities and on the terms and conditions set forth below. 
  
 NOW, THEREFORE, the Company and the Executive, in consideration of the respective covenants set out below, hereby agree as
follows: 
  
 1. EMPLOYMENT. 
  
 (a) POSITIONS. The Executive shall be employed by the Company as Executive
Vice President, Chief Financial Officer and Chief Real Estate Officer. The Executive shall also be an officer of the REIT as its Executive Vice President, Chief Financial Officer and Chief Real Estate Officer. 
  
 (b) DUTIES. The Executive shall report to the Chief Executive Officer of the
Company (the “Chief Executive Officer”), and the Executive’s principal employment duties and responsibilities shall be those duties and responsibilities consistent with this position as are assigned by the Chief Executive Officer or
the Board of Trustees of the REIT (the “Board”). 
  
 (c)
EXTENT OF SERVICES. Except for illnesses and vacation periods, the Executive shall devote all of his working time and attention and his best efforts to the performance of his duties and responsibilities under this Agreement. Notwithstanding the
foregoing, the Executive may (i) make any passive investment where he is not obligated or required to, and shall not in fact, devote any managerial effort, (ii) participate in charitable, academic or community activities, and in trade or
professional organizations, or (iii) hold directorships in other companies consistent with the Company’s conflict of interest policies and corporate governance guidelines as in effect from time to time. 

 2. TERM. This Agreement shall be in full force and effect for a term ending on the third anniversary of the Original
Effective Date (the “Initial Term”), and shall be automatically extended for a renewal term of one (1) additional year (a “Renewal Term”) at the end of the Initial Term, and an additional one (1) year Renewal Term at the end of
each Renewal Term (the last day of the Initial Term and each such Renewal Term is referred to herein as a “Term Date”), unless either party notifies the other party of its non renewal of this Agreement not later than sixty (60) days prior
to a Term Date by providing written notice to the other party of such party’s intent not to renew, or it is sooner terminated pursuant to Section 7. For purposes of this Agreement, “Term” shall mean the actual duration of the
Executive’s employment hereunder, taking into account any extensions pursuant to this Section 2 or early termination of employment pursuant to Section 7. 
  

3. BASE SALARY. The Company shall pay the Executive a base salary annually (the “Base Salary”), which shall be payable in periodic installments according to
the Company’s normal payroll practices. The initial Base Salary shall be $250,000, which shall be in effect retroactive to April 1, 2005. The Board or the Compensation and Human Resources Committee of the REIT (the “Compensation
Committee”) shall review the Base Salary at least once a year to determine whether the Base Salary should be increased effective January 1 of each year during the Term; provided, however, that on each January 1 during the Term, the Base Salary
shall be increased by a minimum positive amount equal to the Base Salary in effect on January 1 of the prior year multiplied by the percentage increase in the Consumer Price Index for such year. The amount of the increase shall be determined before
March 31 of each year and shall be retroactive to January 1. The Base Salary, including any increases, shall not be decreased during the Term. For purposes of this Agreement, the term “Base Salary” shall mean the amount established and
adjusted from time to time pursuant to this Section 3. 
  
 4. INCENTIVE AWARDS.

  
 (a) ANNUAL INCENTIVE BONUS. For the period beginning on the
Original Effective Date and ending on December 31, 2005, and for each fiscal year thereafter, the Executive shall be entitled to receive an annual cash incentive bonus for each fiscal year during the Term of this Agreement consistent with a bonus
policy adopted by the Compensation Committee for each fiscal year containing individual performance goals for participants and corporate performance goals set at Threshold, Target and Maximum levels, and allocating each participant’s annual
cash incentive bonus on a percentage basis between individual and corporate performance goals (the “Bonus Policy”). For each fiscal year, the annual incentive bonus shall be determined under the Bonus Policy in effect for such fiscal year
by how well the Executive has met his individual performance goals and by how well the overall corporate goals have been met, as follows: 
  
 total annual incentive bonus = individual performance bonus + corporate performance bonus 
  
 where: 
  
 individual performance bonus = individual performance level achieved (Threshold, Target or Maximum
percentage) x individual goals allocation percentage x Base Salary 
  
 corporate performance bonus = corporate performance level achieved (Threshold, Target or Maximum percentage) x corporate goals allocation percentage x Base Salary 
  

 -2- 

 The percentages of Base Salary established for the Executive for the performance bonus levels for 2005 shall be 50% for
Threshold Level, 100% for Target Level, and 135% for Maximum Level, with the Executive’s Base Salary for this purpose being pro rated and adjusted to reflect the portion of the 2005 fiscal year that the Executive was employed by the Company.
After 2005 the percentages shall not be less than the 2005 percentages for each performance bonus level without the written agreement of the Executive. If Executive or the Company, as the case may be, fails to satisfy the performance criteria
contained in such Bonus Policy for a fiscal year, the Executive may be eligible to receive an incentive bonus for such fiscal year, in such amount as is recommended by the Chief Executive Officer and subject to approval by the Compensation
Committee. The annual incentive bonus shall be paid to the Executive no later than thirty (30) days after the date the Compensation Committee approves the annual incentive bonus payable to the Executive for such fiscal year. For purposes of this
Agreement, the term “Incentive Bonus” shall mean the amount established pursuant to this Section 4(a). 
  
 (b) 2006 LONG TERM INCENTIVE PLAN. The REIT plans to establish the 2006 Long Term Incentive Plan (the “2006 LTIP”) as a long term incentive
compensation plan for key employees with awards in restricted Common Shares granted based on the achievement of earnings growth targets by the REIT. The Executive shall be eligible to participate in the 2006 LTIP as of January 1, 2006 in an amount
as determined by the Compensation Committee, which is currently expected to be a 7.5% allocation. 
  
 5. RESTRICTED STOCK AWARDS. 
  
 (a) GENERAL. The REIT has established the 2002 Equity Incentive Plan, which provides for the issuance of restricted Common Shares (“Restricted Share Grants”) to the extent that such Common Shares are available thereunder. The
Executive shall be eligible to receive Restricted Share Grants as recommended by the Chief Executive Officer, subject to Compensation Committee review and approval. 
  
 (b) INITIAL RESTRICTED SHARE GRANT. On April 27, 2005, the Executive shall be granted an initial Restricted Share Grant of
16,000 Common Shares (the “Initial Restricted Share Grant”). 
  
 (c) JANUARY 2006 RESTRICTED SHARE GRANT. The Chief Executive Officer will recommend, subject to Compensation Committee approval, a Restricted Share Grant to the Executive in the target amount of 39,000 Common Shares (the “Target Grant
Amount”) that would be awarded in January 2006 (the “January 2006 Restricted Share Grant”) as follows: 50% of the Target Grant Amount would be awarded if the Executive is an employee of the Company on the date of grant; and the
remaining 50% of the Target Grant Amount would be awarded in the amount of 50% for Threshold Level performance, 100% for Target Level performance, and 135% for Maximum Level performance, upon the achievement of the same levels of performance as used
to determine the Executive’s Incentive Bonus. 
  
 (d)
VESTING. The vesting of the Initial Restricted Share Grant and the January 2006 Restricted Share Grant, if awarded, and any other awards of Restricted Share Grants shall be on the following terms: vesting commencing upon the award of the Restricted

  

 -3- 

 
Share Grant at the rate of 25% of the underlying Common Shares on the one-year anniversary of the effective date of the award of Common Shares as Restricted
Share Grants and 6.25% of the underlying Common Shares on the last day of each fiscal quarter thereafter until fully vested; provided, however, that after a Restricted Share Grant has been awarded the Executive will be 100% vested and all
restrictions will lapse upon (i) a Change in Control (as defined herein), (ii) a termination by the Company without Cause (as defined herein), (iii) his death, (iv) his becoming Permanently Disabled (as defined herein), or (v) the nonrenewal of this
Agreement by the Company. If the Executive is terminated for Cause or if he voluntarily terminates his employment for any reason, the Company has the right to repurchase the unvested portion of any Restricted Share Grants that have been awarded in
accordance with the terms of the Equity Incentive Plan. 
  
 (e)
VOTING AND DIVIDEND RIGHTS. The Common Shares issued as Restricted Share Grants will have voting and dividend rights, and, following the restriction period, shall be registered and fully transferable by the Executive. 
  
 6. BENEFITS. 
  
 (a) VACATION. The Executive shall be entitled to four (4) weeks paid vacation per full calendar year in accordance with the
Company’s vacation policy, which shall accrue during the Executive’s employment with the Company. 
  
 (b) SICK AND PERSONAL DAYS. The Executive shall be entitled to sick and personal days pursuant to Company policy. 
  
 (c) EMPLOYEE BENEFIT PLANS. The Executive and his spouse and eligible
dependents, if any, and their respective designated beneficiaries where applicable, will be eligible for and entitled to participate in any Company sponsored employee benefit plans, including but not limited to benefits such as group health, dental,
accident, disability insurance, group life insurance, and a 401(k) plan, as such benefits may be offered from time to time, on a basis no less favorable than that applicable to other executives of the Company. 
  
 (d) OTHER BENEFITS. 
  
 (i) ANNUAL PHYSICAL. The Company shall provide, at its cost, a medical
examination for the Executive on an annual basis by a licensed physician in the Philadelphia, Pennsylvania area selected by the Executive. 
  
 (ii) CAR ALLOWANCE. The Company shall pay Executive a monthly car allowance that is not less than $700.00 per month. 
  
 (iii) DIRECTORS AND OFFICERS INSURANCE. During the Term and during the
Severance Period (as hereinafter defined), the Executive shall be entitled to directors and officers insurance coverage for his acts and omissions while an officer of the Company and the REIT on a basis no less favorable to him than the coverage
provided to current officers and trustees. 
  

 -4- 

 (iv) EXPENSES, OFFICE AND SECRETARIAL SUPPORT. The Executive shall be entitled to reimbursement of all
reasonable expenses, in accordance with the Company’s policy as in effect from time to time and on a basis no less favorable than that applicable to other executives of the Company, including, without limitation, telephone, reasonable travel
and reasonable entertainment expenses incurred by the Executive in connection with the business of the Company, promptly upon the presentation by the Executive of appropriate documentation. The Executive shall also be entitled to appropriate office
space, administrative support, and such other facilities and services as are suitable to the Executive’s positions and adequate for the performance of the Executive’s duties. 
  
 (v) RELOCATION. The Executive’s principal place of employment will be at the Company’s headquarters in Jenkintown,
Pennsylvania. In consideration for the Executive’s relocation to the Philadelphia, Pennsylvania area, the Executive will receive a relocation package in an amount not to exceed $40,000, inclusive of required withholding taxes (the
“Relocation Amount”) to cover the Executive’s relocation expenses, including interim hotel stays pending the provision of temporary housing by the Company (see subsection (vi) below), real estate transaction costs, moving expenses and
temporary travel while relocating. The Company will reimburse the Executive for reimbursable relocation expenses upon the submission of written receipts pursuant to the Company’s Executive Relocation Policy for an amount up to the Relocation
Amount, and to the extent the relocation reimbursement payments made by the Company are subject to applicable tax withholding by the Company, then the amount of the withholding taxes shall be counted toward the Relocation Amount. 
  
 (vi) TEMPORARY HOUSING ALLOWANCE. Beginning April 1, 2005, the Company, at
its cost, shall provide temporary furnished housing for the Executive on a month-to-month basis for a minimum of three months. Thereafter, the Chief Executive Officer and the Executive shall review the temporary housing allowance and mutually
determine, on a month-to-month basis, whether to continue it for a maximum period up to January 31, 2006. 
  
 7. TERMINATION. The employment of the Executive by the Company pursuant to this Agreement shall terminate upon the occurrence of any of the following: 
  
 (a) DEATH OR PERMANENT DISABILITY. Immediately upon death or Permanent Disability of the Executive. As used in this
Agreement, “Permanent Disability” shall mean an inability due to a physical or mental impairment to perform the material services contemplated under this Agreement for a period of six (6) months, whether or not consecutive, during any
365-day period. A determination of Permanent Disability shall be made by a physician satisfactory to both the Executive and the Company, provided that if the Executive and the Company do not agree on a physician, the Executive and the Company shall
each select a physician and these two together shall select a third physician, whose determination as to Permanent Disability shall be binding on all parties. The appointment of one or more individuals to carry out the offices or duties of the
Executive during a period of the Executive’s inability to perform such duties and pending a determination of Permanent Disability shall not be considered a breach of this Agreement by the Company. 
  

 -5- 

 (b) FOR CAUSE. At the election of the Company and subject to the provisions of this Section 7(b),
immediately upon written notice by the Company to the Executive of his termination for Cause. For purposes of this Agreement, “Cause” for termination shall be deemed to exist solely in the event of (i) the conviction of the Executive of,
or the entry of a plea of guilty or nolo contendere by the Executive to, a felony (exclusive of any felony relating to negligent operation of a motor vehicle and not including a conviction, plea of guilty or nolo contendere arising
solely under a statutory provision imposing criminal liability upon the Executive on a per se basis due to the Company offices held by the Executive, so long as any act or omission of the Executive with respect to such matter was not taken or
omitted in contravention of any applicable policy or directive of the Board or the Chief Executive Officer), (ii) a willful breach of his duty of loyalty which is materially detrimental to the Company, (iii) a willful failure to perform or adhere to
explicitly stated duties that are consistent with the terms of this Agreement, or the Company’s reasonable and customary guidelines of employment or reasonable and customary corporate governance guidelines or policies, including without
limitation any business code of ethics adopted by the Board, or to follow the lawful directives of the Board (provided such directives are consistent with the terms of this Agreement) which, in any such case, continues for thirty (30) days after
written notice from the Chief Executive Officer to the Executive, or (iv) gross negligence or willful misconduct in the performance of the Executive’s duties. For purposes of this Section 7(b), no act, or failure to act, on the Executive’s
part will be deemed “gross negligence” or “willful misconduct” unless done, or omitted to be done, by the Executive not in good faith and without a reasonable belief that the Executive’s act, or failure to act, was in the
best interest of the Company. The parties agree that in order to terminate the Executive pursuant to Subsections (ii) and (iv) hereof, the Company shall first be required to prove to the reasonable satisfaction of the Executive that he engaged in
improper conduct under these Subsections, and if the Executive shall not agree with the Company’s assessment of his conduct, then the Executive shall not be terminated until an arbitrator, as provided for in Section 13(b), has determined that
the Executive’s conduct constituted improper conduct under the applicable Subsection. 
  
 (c) WITHOUT CAUSE; VOLUNTARY RESIGNATION. At the election of the Company without Cause, and at the election of the Executive for any reason, in either case upon thirty (30) days prior written notice to the Executive
or the Company, as the case may be. 
  
 8. EFFECTS OF TERMINATION. 
  
 (a) TERMINATION ON PERMANENT DISABILITY OR BY THE COMPANY WITHOUT CAUSE. If
the employment of the Executive should terminate at any time by reason of his becoming Permanently Disabled or should terminate at the election of the Company without Cause, then the Company shall pay all compensation and benefits for the Executive
as follows: 
  
 (i) Any Base Salary, Incentive Bonus, expense
reimbursements and all other compensation related payments that are payable as of his termination of employment date that are related to his period of employment preceding his termination date. 
  

 -6- 

 (ii) The prorated amount of the Target Incentive Bonus for the year in which the termination of
employment occurs, prorated for the portion of such year during which the Executive was employed prior to the effective date of the termination. 
  
 (iii) The amount equal to his Base Salary at the rate in effect on the effective date of his termination of employment, that would have been paid or
payable for the duration of the Initial Term of this Agreement, or if greater, his Base Salary for 12 months (the greater of such periods, being the “Severance Period”). 
  
 The sum of the amount payable under subsections (ii) and (iii) hereof is referred to herein as his “Severance
Payment”. 
  
 (iv) The Severance Payment shall be made in a
single, lump sum cash payment before the later of (x) thirty (30) days after the effective date of the Executive’s termination of employment, and (y) the delivery of the signed Release (as defined below) to the Company and the expiration of the
Executive’s statutory period to revoke the Release. With respect to any Severance Payment attributable to a period after the expiration of 24 calendar months after the termination of the Executive’s employment, such payment shall be
reduced for compensation earned from other employment or self-employment after that date, and the Executive shall refund to the Company any amount due as a result of such reduction. 
  
 (v) The Company shall allow the Executive to continue to participate during the Severance Period in any healthcare, dental
and prescription drug plans in which the Executive was entitled to participate immediately prior to his termination, to the same extent and upon the same terms as the Executive participated in such plans prior to his termination, provided that the
Executive’s continued participation is permissible or otherwise practicable under the general terms and provisions of such benefit plans and programs. During the Severance Period, the Company shall pay for the Executive’s continued
participation in said healthcare, dental and prescription drug plans, including but not limited to premiums for such programs. To the extent that continued participation is neither permissible nor practicable, the Company shall take such actions as
may be necessary to provide the Executive with substantially comparable benefits (without additional cost to the Executive) outside the scope of such plans, including, without limitation, reimbursing the Executive for his costs in obtaining such
coverage, such as COBRA premiums paid by the Executive and/or his eligible dependents. If the Executive engages in regular employment after his termination of employment (whether as an executive or as a self-employed person), any employee benefit
and welfare benefits received by the Executive in consideration of such employment which are similar in nature to the healthcare, dental and prescription drug plans provided by the Company will relieve the Company of its obligation under this
Section 8(a)(v) to provide comparable benefits to the extent of the benefits so received. 
  
 (vi) The Executive’s Restricted Share Grants that have been awarded under the Equity Incentive Plan shall immediately become 100% vested, and all restrictions shall lapse. 
  
 (vii) If the termination of the Executive’s employment under this
subsection (a) takes place prior to the award of the January 2006 Restricted Share Grant, then a 

  

 -7- 

 
Restricted Share Grant shall be awarded to the Executive in an amount equal to the prorated amount of the Target Grant Amount, prorated for the portion of
the 2005 fiscal year during which the Executive was employed prior to the effective date of the termination, and such Restricted Share Grant shall be 100% vested on the date of the award with no restrictions. 
  
 (viii) If the Severance Period is less than 24 months, then the Noncompete
Period in Section 11 shall be reduced to be equal to the Severance Period. 
  
 (ix) All Severance Payments are contingent on Executive signing a release of claims, substantially in the form attached hereto as Exhibit A (the “Release”). 
  
 (b) TERMINATION ON DEATH. Upon a termination of employment due to the
Executive’s death, the Executive shall become 100% vested in the Restricted Share Grants that have been awarded to the Executive under the Equity Incentive Plan. The Company shall pay to the Executive’s personal representative any Base
Salary, expense reimbursements and all other compensation related payments that are payable as of his date of death and that are related to his period of employment preceding his date of death, and within 60 days after the Executive’s death,
shall pay to the Executive’s personal representative a prorated amount of Target Incentive Bonus for the year in which the Executive’s death occurs, prorated for the portion of the year during which the Executive was employed prior to his
death. 
  
 (c) BY THE COMPANY FOR CAUSE OR VOLUNTARILY BY THE
EXECUTIVE. In the event that the Executive’s employment is terminated by the Company for Cause or voluntarily by the Executive, the Company shall pay the Executive his Base Salary, expense reimbursements and all other compensation related
payments that are payable as of his termination of employment date and that are related to his period of employment preceding his termination date. The Executive shall forfeit all unvested restricted Common Shares if he is terminated by the Company
for Cause, and, subject to Section 9(b) below, he shall forfeit all unvested restricted Common Shares if he voluntarily terminates his employment with the Company. 
  
 (d) TERMINATION OF AUTHORITY. Immediately upon the Executive terminating or being terminated from his employment with the
Company for any reason, notwithstanding anything else appearing in this Agreement or otherwise, the Executive will stop serving the functions of his terminated or expired position(s) and shall be without any of the authority or responsibility for
such position(s). 
  
 9. CHANGE OF CONTROL. 
  
 (a) CHANGE OF CONTROL. For purposes of this Agreement, a “Change of
Control” will be deemed to have taken place upon the occurrence of any of the following events: 
  
 (i) any person, entity or affiliated group, excluding the REIT or any employee benefit plan of the REIT, acquiring more than 50% of the then outstanding
voting shares of the REIT, 
  

 -8- 

 (ii) the consummation of any merger or consolidation of the REIT into another company, such that the
holders of the voting shares of the REIT immediately prior to such merger or consolidation is less than 50% of the voting power of the securities of the surviving company or the parent of such surviving company, 
  
 (iii) the complete liquidation of the REIT or the sale or disposition of all
or substantially all of the REIT’s assets, such that after the transaction, the holders of the voting shares of the REIT immediately prior to the transaction is less than 50% of the voting securities of the acquiror or the parent of the
acquiror, or 
  
 (iv) a majority of the Board of the REIT votes in
favor of a decision that a Change of Control has occurred. 
  
 (b)
CERTAIN BENEFITS UPON A CHANGE OF CONTROL. In the event of a Change of Control, the Executive shall become 100% vested in the Restricted Share Grants that have been awarded to the Executive under the Equity Incentive Plan. If a Change of Control
takes place prior to the award of the January 2006 Restricted Share Grant, then in the event of such Change of Control, a Restricted Share Grant shall be awarded to the Executive in an amount equal to the Target Grant Amount, and such Restricted
Share Grant shall be 100% vested on the date of the award with no restrictions. 
  
 (c) EXCISE TAX. 
  
 (i) In the
event that any payment or benefit received or to be received by the Executive in connection with a change in control or a termination of the Executive’s employment (whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any person whose actions result in a change in control or any person affiliated with the Company or such person) (all such payments and benefits being hereinafter called “Total Payments”), such that the
Executive will be subject (in whole or in part) to the excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (“Excise Tax”), on such payments and benefits, then the Company shall pay to the Executive an
additional amount (the “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of the Excise Tax and any federal, state and local tax on the Gross-Up Payment, will be equal to the Total Payment. For purposes
of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence on such date, net of the maximum deduction in federal income taxes which could be obtained from deduction of such state and local
taxes. 
  
 (ii) The Executive or the Company may request, prior to
the time any payments under this Agreement are made, a determination of whether any or all of the Total Payments will be subject to the Excise Tax and, if so, the amount of such Excise Tax and the federal, state and local tax imposed on the Gross-Up
Payment. If such a determination is requested, it shall be made promptly, at the Company’s expense, by tax counsel selected by the Executive and approved by the Company (with such approval not being unreasonably withheld), and such
determination shall be conclusive and binding on both parties. The Company agrees to 

  

 -9- 

 
provide any information reasonably requested by such tax counsel. Tax counsel may engage accountants or other experts, at the Company’s expense, to the
extent deemed necessary or advisable for them to reach a determination. For these purposes, the term “tax counsel” shall mean a law firm with expertise in federal income tax matters. 
  
 (iii) In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder, the Executive will repay to the Company, at the time that the amount of such reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment attributable to such reduction plus that
portion of the Gross-Up Payment attributable to the Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment, without any interest thereon. In the event that the Excise Tax is determined to exceed the amount taken into
account hereunder, the Company will make an additional Gross-Up Payment in respect of such excess and in respect of any portion of the Excise Tax with respect to which the Company had not previously made a Gross-Up Payment (plus any interest,
penalties or additions payable by the Executive with respect to such excess and such portion) at the time that the amount of such excess is finally determined, without any interest thereon. 
  
 (iv) Each party agrees to notify the other party, in writing, of any claim
that, if successful, would require the payment by the Company of a Gross-Up Payment or might entitle the Company to a refund of all or part of any previous Gross-Up Payment. Such notification shall be given as soon as practicable but no later than
ten (10) business days after the Executive or Company is informed in writing of such claim or otherwise becomes aware of such claim. If notice of the claim arose as a result of a claim made against the Executive by a taxing authority, Executive
shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which he gives notice to the Company. If the Company notifies the Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall: (A) give the Company any information reasonably requested by the Company relating to such claim, (B) take such action in connection with contesting such claim as the Company shall reasonably request in
writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney selected by the Executive and approved by the Company (with such approval not being unreasonably withheld), (C)
cooperate with the Company in good faith in order to effectively contest such claim, and (D) permit the Company to reasonably participate in any proceedings relating to such claim. The Company shall bear and pay directly all costs and expenses
(including legal fees and additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and expenses. 
  
 (v) Notwithstanding the foregoing, the Company shall control all audits and proceedings taken in connection with any claim, audit or proceeding involving Excise Taxes or Gross-Up Payments and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of any such claim, audit or proceeding and may, at its sole option, either direct the Executive to pay the tax claimed
and sue for a refund or contest the tax in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the 

  

 -10- 

 
Company shall determine; provided, however, that if the Company directs the Executive to pay such tax and sue for a refund, the Company shall
advance the amount of such payment to the Executive, (including interest or penalties with respect thereto) and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest or penalties
with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance. The Company shall be required to consult with and keep the Executive fully apprised of developments and actions being
considered or taken with respect to such claim, audit or proceeding. The Company’s control of the contest shall be limited to issues with respect to which such a Gross-Up Payment would be payable or refundable hereunder and the Executive shall
be entitled to settle or contest, as the case may be, any other issue. Each party agrees to keep the other party fully apprised of developments concerning such claim, audit or proceeding and to cooperate with the other in good faith in order to
effectively resolve such claim, audit or proceeding. 
  
 (vi) For
purposes of this Subsection (c), a determination of whether a payment is subject to Excise Taxes, including but not limited to, a determination of change in control, shall be made pursuant to Section 280G of the Internal Revenue Code of 1986, as
amended. 
  
 10. CONFIDENTIAL INFORMATION. The Executive recognizes and
acknowledges that certain assets of the Company constitute Confidential Information. The term “Confidential Information” as used in this Agreement shall mean all information which is known only to the Executive or the Company, other
employees of the Company, or others in a confidential relationship with the Company, and relating to the Company’s business including, without limitation, information regarding clients, customers, pricing policies, methods of operation,
proprietary Company programs, sales products, profits, costs, markets, key personnel, formulae, product applications, technical processes, and trade secrets, as such information may exist from time to time, which the Executive acquired or obtained
by virtue of work performed for the Company, or which the Executive may acquire or may have acquired knowledge of during the performance of said work. The Executive shall not, during or after the Term, disclose all or any part of the Confidential
Information to any person, firm, corporation, association, or any other entity for any reason or purpose whatsoever, directly or indirectly, except as may be required pursuant to his employment hereunder, unless and until such Confidential
Information becomes publicly available other than as a consequence of the breach by the Executive of his confidentiality obligations hereunder by law or in any judicial administrative proceeding (in which case, the Executive shall provide the
Company with notice). In the event of the termination of his employment, whether voluntary or involuntary and whether by the Company or the Executive, the Executive shall deliver to the Company all documents and data pertaining to the Confidential
Information and shall not take with him any documents or data of any kind or any reproductions (in whole or in part) or extracts of any items relating to the Confidential Information. The Company acknowledges that prior to his employment with the
Company, the Executive has lawfully acquired extensive knowledge of the industries and businesses in which the Company engages in business, and that the provisions of this Section 10 are not intended to restrict the Executive’s use of such
previously acquired knowledge. 
  
 In the event that the Executive
receives a request or is required (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to 

  

 -11- 

 
disclose all or any part of the Confidential Information, the Executive agrees to (a) promptly notify the Company in writing of the existence, terms and
circumstances surrounding such request or requirement, (b) consult with the Company on the advisability of taking legally available steps to resist or narrow such request or requirement, and (c) assist the Company in seeking a protective order or
other appropriate remedy. In the event that such protective order or other remedy is not obtained or that the Company waives compliance with the provisions hereof, the Executive shall not be liable for such disclosure unless disclosure to any such
tribunal was caused by or resulted from a previous disclosure by the Executive not permitted by this Agreement. 
  
 11. NON-COMPETITION AND NONSOLICITATION. During the Term and, except as otherwise provided in Section 8(a)(viii), for a period of 24 calendar months after the termination
of the Executive’s employment (the “Noncompete Period”), the Executive shall not, directly or indirectly, either as a principal, agent, employee, employer, stockholder, partner or in any other capacity whatsoever: (a) engage or assist
others engaged, in whole or in part, in any business which is engaged in a business or enterprise that is substantially similar to the business that the Company was engaged in during the period of the Executive’s employment with the Company, or
(b) without the prior consent of the Board, employ or solicit the employment of, or assist others in employing or soliciting the employment of, any individual employed by the Company at any time while the Executive was also so employed;
provided, however, that the provisions of this Section 11 shall not apply in the event the Company materially breaches this Agreement or the Release. 
  
 Nothing in this Section 11 shall prohibit Executive from making any passive investment in a public company, or where he is
the owner of five percent (5%) or less of the issued and outstanding voting securities of any entity, provided such ownership does not result in his being obligated or required to devote any managerial efforts. 
  
 The Executive agrees that the restraints imposed upon him pursuant to this
Section 11 are necessary for the reasonable and proper protection of the Company and its subsidiaries and affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. The
parties further agree that, in the event that any provision of this Section 11 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too
great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law. 
  
 12. INTELLECTUAL PROPERTY. During the Term, the Executive shall promptly disclose to the Company or any successor or assign, and grant to the Company and its successors
and assigns without any separate remuneration or compensation other than that received by him in the course of his employment, his entire right, title and interest in and to any and all inventions, developments, discoveries, models, or any other
intellectual property of any type or nature whatsoever (“Intellectual Property”), whether developed by him during or after business hours, or alone or in connection with others, that is in any way related to the business of the Company,
its successors or assigns. This provision shall not apply to books or articles authored by the Executive during non-work hours, consistent with his obligations under this Agreement, so long as such books or articles (a) are not funded in whole or in
part by the 

  

 -12- 

 
Company, and (b) do not contain any Confidential Information or Intellectual Property of the Company. The Executive agrees, at the Company’s expense, to
take all steps necessary or proper to vest title to all such Intellectual Property in the Company, and cooperate fully and assist the Company in any litigation or other proceedings involving any such Intellectual Property. 
  
 13. DISPUTES. 
  
 (a) EQUITABLE RELIEF. The Executive acknowledges and agrees that upon any breach by the Executive of his obligations under
Sections 10, 11, or 12 hereof, the Company will have no adequate remedy at law, and accordingly will be entitled to specific performance and other appropriate injunctive and equitable relief. 
  
 (b) ARBITRATION. Excluding only requests for equitable relief by the Company
under Section 13(a), in the event that there is any claim or dispute arising out of or relating to this Agreement or the breach hereof, and the parties hereto shall not have resolved such claim or dispute within 60 days after written notice from one
party to the other setting forth the nature of such claim or dispute, then such claim or dispute shall be settled exclusively by binding arbitration in Montgomery county, Pennsylvania, in accordance with the Employment Dispute Resolution Rules of
the American Arbitration Association (“Rules”), by an arbitrator mutually agreed upon by the parties hereto or, in the absence of such agreement, by an arbitrator selected according to such Rules. Notwithstanding the foregoing, if either
the Company or the Executive shall request, such arbitration shall be conducted by a panel of three (3) arbitrators, one selected by the Company, one selected by the Executive and the third selected by agreement of the first two arbitrators, or, in
the absence of such agreement, in accordance with such Rules. Judgment upon the award rendered by such arbitrator(s) shall be entered in any Court having jurisdiction thereof upon the application of either party. The parties agree to use their
reasonable best efforts to have such arbitration completed as soon as is reasonably practicable. Notwithstanding anything herein to the contrary, except as provided in Section 13(c) below, the losing party shall pay the reasonable costs and expenses
(including reasonable attorney fees and expenses) of the prevailing party with respect to such arbitration, except the Executive, if he is the losing party, shall not be required to pay such expenses and costs if the claim relates to statutory
discrimination claims that he would not otherwise be required to pay if such claim had been brought in a court of competent jurisdiction. 
  
 (c) LEGAL FEES. The Company shall pay or promptly reimburse the Executive for the reasonable legal fees and expenses incurred by the Executive in
successfully enforcing or defending any right of the Executive pursuant to this Agreement, even if the Executive does not prevail on each issue. 
  
 14. INDEMNIFICATION. The Company shall indemnify the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or
sustained by the Executive, including the cost of legal counsel selected and retained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party by reason of the Executive being or having been an
officer, director, or employee of the Company or the REIT. 
  

 -13- 

 15. COOPERATION IN FUTURE MATTERS. The Executive hereby agrees that for a period of 18 months following his termination
of employment he shall cooperate with the Company’s reasonable requests relating to matters that pertain to the Executive’s employment by the Company, including, without limitation, providing information or limited consultation as to such
matters, participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise making himself reasonably available to the Company for other related purposes. Any such cooperation shall be performed at scheduled times
taking into consideration the Executive’s other commitments, and the Executive shall be compensated at a reasonable hourly or per diem rate to be agreed upon by the parties to the extent such cooperation is required on more than an occasional
and limited basis. The Executive shall not be required to perform such cooperation to the extent it conflicts with any requirements of exclusivity of services for another employer or otherwise, nor in any manner that in the good faith belief of the
Executive would conflict with his rights under or ability to enforce this Agreement. 
  
 16. GENERAL. 
  
 (a) NOTICES. All notices and other
communications hereunder shall be in writing or by written telecommunication, and shall be deemed to have been duly given if delivered personally or if sent by overnight courier or by certified mail, return receipt requested, postage prepaid or sent
by written telecommunication or telecopy, to the relevant address set forth below, or to such other address as the recipient of such notice or communication shall have specified in writing to the other party hereto, in accordance with this Section
16(a). 
  

			
	 If to the Company, to:
	  	 First States Group, L.P.

	 	  	 1725 The Fairway

	 	  	 Jenkintown, PA 19046

	 	  	 Attn:    Nicholas S. Schorsch, President and

	 	  	             Chief Executive Officer

	 	  	 Facsimile: 215-887-2585

  
 If to Executive, at
his last residence shown on the records of the Company. 
  
 Any such notice shall
be effective (i) if delivered personally, when received, (ii) if sent by overnight courier, when receipted for, (iii) if mailed, five (5) days after being mailed, and (iv) on confirmed receipt if sent by written telecommunication or telecopy,
provided a copy of such communication is sent by regular mail, as described above. 
  
 (b) SEVERABILITY. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not
in any way be affected or impaired. 
  
 (c) WAIVERS. No delay or
omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof
or the exercise of any other right, power or privilege. 
  

 -14- 

 (d) COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. In making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. 
  
 (e) ASSIGNS. This Agreement shall be binding upon and inure to the benefit of
the Company’s successors and the Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees. This Agreement shall not be assignable by the Executive, it being understood and agreed
that this is a contract for the Executive’s personal services. This Agreement shall not be assignable by the Company except that the Company shall assign it in connection with a transaction involving the succession by a third party to all or
substantially all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise). When assigned to a successor, the assignee shall assume this Agreement and
expressly agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of such an assignment. For all purposes under this Agreement, the term “Company” shall
include any successor to the Company’s business and/or assets that executes and delivers the assumption agreement described in the immediately preceding sentence or that becomes bound by this Agreement by operation of law. 
  
 (f) ENTIRE AGREEMENT. This Agreement contains the entire understanding of the
parties, including the Original Agreement, supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof and may not be amended except by a written instrument hereafter signed by the Executive and
the Chief Executive Officer or a duly authorized representative of the Board (other than the Executive). 
  
 (g) GOVERNING LAW. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the Commonwealth of
Pennsylvania, without giving effect to principles of conflicts of law. 
  
 (h) CONSTRUCTION. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. The headings of sections
of this Agreement are for convenience of reference only and shall not affect its meaning or construction. Whenever any word is used herein in one gender, it shall be construed to include the other gender, and any word used in the singular shall be
construed to include the plural in any case in which it would apply and vice versa. 
  
 (i) PAYMENTS AND EXERCISE OF RIGHTS AFTER DEATH. Any amounts payable hereunder after the Executive’s death shall be paid to the Executive’s designated beneficiary or beneficiaries, whether received as a
designated beneficiary or by will or the laws of descent and distribution. The Executive may designate a beneficiary or beneficiaries for all purposes of this Agreement, and may change at any time such designation, by notice to the Company making
specific reference to this Agreement. If no designated beneficiary survives the Executive or the Executive fails to designate a beneficiary for purposes of this Agreement prior to his death, all amounts thereafter due hereunder shall be paid, as and
when payable, to his spouse, if she survives the Executive, and otherwise to his estate. 
  

 -15- 

 (j) CONSULTATION WITH COUNSEL. The Executive acknowledges that he has had a full and complete opportunity
to consult with counsel or other advisers of his own choosing concerning the terms, enforceability and implications of this Agreement, and that the Company has not made any representations or warranties to the Executive concerning the terms,
enforceability and implications of this Agreement other than as are reflected in this Agreement. 
  
 (k) WITHHOLDING. Any payments provided for in this Agreement shall be paid net of any applicable income tax withholding required under federal, state or
local law. 
  
 (l) CONSUMER PRICE INDEX. For purposes of this
Agreement, the term “CPI” refers to the Consumer Price Index as published by the Bureau of Labor Statistics of the United States Department of Labor, U.S. City Average, All Items for Urban Wage Earners and Clerical Workers (1982-1984=100).
If the CPI is hereafter converted to a different standard reference base or otherwise revised, the determination of the CPI adjustment shall be made with the use of such conversion factor, formula or table for converting the CPI, as may be published
by the Bureau of Labor Statistics, or, if the bureau shall no longer publish the same, then with the use of such conversion factor, formula or table as may be published by an agency of the United States, or failing such publication, by a nationally
recognized publisher of similar statistical information. 
  
 (m)
SURVIVAL. The provisions of Sections 8, 9, 10, 11, 12, 13, 14 and 15 shall survive the termination of this Agreement. 
  

 -16- 

 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this
Agreement to be duly executed as of the date first above written. 
  

							
	 FIRST STATES GROUP, L.P.
  
	 	 DAVID J. NETTINA

	 By:
	 	 First States Group, LLC
	 	 
	 	 	 Its general partner
	 	 
				
	 	 	 By:
	 	  

	 	  

	 	 	 Name:
	 	 Nicholas S. Schorsch
	 	 
	 	 	 Title:
	 	 President and Chief Executive Officer
	 	 
		
	 Dated: April 27, 2005
	 	 Dated: April 27, 2005

  
 GUARANTEE: 
  
 For good and valuable consideration, including the Executive’s agreement to serve as an
officer of American Financial Realty Trust, the obligations of First States Group, L.P. under this Employment Agreement, dated April 27, 2005, with David J. Nettina, shall be guaranteed by American Financial Realty Trust. 
  

			
	 AMERICAN FINANCIAL REALTY TRUST

		
	 By:
	 	  

	 Name:
	 	 Nicholas S. Schorsch

	 Title:
	 	 President and Chief Executive Officer

  
 Dated: April 27, 2005 
  

 -17- 

 EXHIBIT A 
  

RELEASE AND WAIVER 
  
 This release and waiver (the “Termination Release”) is made as of the      day of
                , 200     by
                                 (the “Executive”). 
  
 WHEREAS, the Executive and First States Group, L.P. (the “Company”)
have entered into an Employment Agreement (the “Agreement”) dated as of                 , 200     that provides for certain
compensation and severance amounts upon his termination of employment; and 
  
 WHEREAS, the Executive has agreed, pursuant to the terms of the Agreement, to execute a release and waiver in the form set forth in this Release and Waiver (“Termination Release”) in consideration of the
Company’s agreement to provide the compensation and severance amounts upon his termination of employment set out in the Agreement; and 
  
 WHEREAS, the Executive has incurred a termination of employment effective as of
                , 20    ; 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 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 agrees as
follows: 
  
 1. RELEASE. In consideration for the payments to be made pursuant to
the Agreement: 
  
 (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 his 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 

  

 A-1 

 
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. 
  
 (b) Executive represents that he has not filed or permitted to be filed against the Releasees, any complaints, charges or lawsuits and covenants and
agrees that he 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, he 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 he believes he may have
against the Company. However, Executive hereby agrees to waive the right to recover money damages in any proceeding he may bring before the EEOC or any other similar body or in any proceeding brought by the EEOC or any other similar body on his
behalf. This Termination Release does not release, waive or give up any claim for workers’ compensation benefits, vested retirement or welfare benefits he 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 his right to enforce his rights under the Agreement. 
  

2. CONFIRMATION OF OBLIGATIONS. Executive hereby confirms and agrees to his continuing obligation under the Agreement after termination of employment not to directly
or indirectly disclose to third parties or use any Confidential Information (as defined in the Agreement) that he may have acquired, learned, developed, or created by reason of his employment with the Company. 
  
 3. CONFIDENTIALITY; NO COMPETITION; NONSOLICITATION. Executive hereby confirms and agrees to
his confidentiality, nonsolicitation and non-competition obligations under the Agreement. 
  
 4. 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 and required by a court or an administrative agency of competent jurisdiction. 
  

 A-2 

 5. 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
his immediate family, his attorney or counselor, and persons assisting him 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. 
  
 6. ACKNOWLEDGMENT. The Company has advised the Executive to consult with an attorney of his
choosing prior to signing this Termination Release and the Executive hereby represents to the Company that he 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 his rights in this Termination Release, although he may sign this Termination Release sooner if he chooses. Once he has signed this Termination Release, the Executive shall have seven (7) additional days from the
date of execution to revoke his consent to the waiver of his 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 his 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. 
  
 7. 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. 
  
 IN WITNESS WHEREOF, the Executive has executed this Termination Release as of the day and year first above written. 
  

	
	  

  

 A-32006 Long Term Incentive Plan

 Exhibit 10.2 
 AMERICAN FINANCIAL REALTY TRUST 
  
 2006 LONG-TERM INCENTIVE PLAN 
  
 EFFECTIVE AS
OF JANUARY 1, 2006 

 TABLE OF CONTENTS 
  

									
	 	  	Page

	ARTICLE I	  	INTRODUCTION	  	1
			
	ARTICLE II	  	DEFINITIONS	  	2
					
	 	  	2.1  	  	 	  	“Affiliate”	  	2
					
	 	  	2.2  	  	 	  	“Award”	  	2
					
	 	  	2.3  	  	 	  	“Award Agreement”	  	2
					
	 	  	2.4  	  	 	  	“Beneficiary”	  	2
					
	 	  	2.5  	  	 	  	“Board”	  	2
					
	 	  	2.6  	  	 	  	“Cause”	  	2
					
	 	  	2.7  	  	 	  	“CEO”	  	2
					
	 	  	2.8  	  	 	  	“Change in Control”	  	2
					
	 	  	2.9  	  	 	  	“Code”	  	3
					
	 	  	2.10	  	 	  	“Committee”	  	3
					
	 	  	2.11	  	 	  	“Common Share”	  	3
					
	 	  	2.12	  	 	  	“Company”	  	3
					
	 	  	2.13	  	 	  	“Earned Shares”	  	3
					
	 	  	2.14	  	 	  	“Effective Date”	  	3
					
	 	  	2.15	  	 	  	“Employee”	  	3
					
	 	  	2.16	  	 	  	“Employer”	  	3
					
	 	  	2.17	  	 	  	“Employment Agreement”	  	3
					
	 	  	2.18	  	 	  	“Equity Incentive Plan”	  	3
					
	 	  	2.19	  	 	  	“Fair Market Value”	  	4
					
	 	  	2.20	  	 	  	“FFO”	  	4
					
	 	  	2.21	  	 	  	“FFO Baseline”	  	4
					
	 	  	2.22	  	 	  	“FFO Increase”	  	4
					
	 	  	2.23	  	 	  	“FFO Targets”	  	4
					
	 	  	2.24	  	 	  	“Final FFO”	  	4
					
	 	  	2.25	  	 	  	“Final Measurement Date”	  	4
					
	 	  	2.26	  	 	  	“First FFO Threshold”	  	4
					
	 	  	2.27	  	 	  	“Interim Measurement Date”	  	4
					
	 	  	2.28	  	 	  	“Measurement Date”	  	4
					
	 	  	2.29	  	 	  	“NAREIT”	  	4
					
	 	  	2.30	  	 	  	“Participant”	  	4
					
	 	  	2.31	  	 	  	“Performance Period”	  	5
					
	 	  	2.32	  	 	  	“Permanent Disability”	  	5
					
	 	  	2.33	  	 	  	“Plan”	  	5
					
	 	  	2.34	  	 	  	“Plan Year”	  	5
					
	 	  	2.35	  	 	  	“Redemption Date”	  	5
					
	 	  	2.36	  	 	  	“Redemption Event”	  	5
					
	 	  	2.37	  	 	  	“Restricted Common Shares”	  	5

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

									
	 	  	Page

	 	  	2.38	 	 	  	“Second FFO Threshold”	  	5
					
	 	  	2.39	 	 	  	“Target FFO”	  	5
					
	 	  	2.40	 	 	  	“Target Units”	  	5
					
	 	  	2.41	 	 	  	“Units”	  	5
					
	 	  	2.42	 	 	  	“Weighted Average Shares Outstanding”	  	5
			
	ARTICLE III	 	PARTICIPATION	  	6
					
	 	  	3.1  	 	 	  	Initial Participants	  	6
					
	 	  	3.2  	 	 	  	New Participants	  	6
			
	ARTICLE IV	 	COMMON SHARES SUBJECT TO THE PLAN	  	7
					
	 	  	4.1  	 	 	  	Common Shares Subject to the Plan	  	7
					
	 	  	4.2  	 	 	  	Changes in Common Shares or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events	  	7
			
	ARTICLE V	 	TARGET UNITS	  	8
					
	 	  	5.1  	 	 	  	Awards	  	8
					
	 	  	5.2  	 	 	  	Target Units	  	8
			
	ARTICLE VI	 	FFO	  	9
					
	 	  	6.1  	 	 	  	FFO Baseline	  	9
					
	 	  	6.2  	 	 	  	FFO Increase	  	9
					
	 	  	6.3  	 	 	  	First FFO Threshold	  	9
					
	 	  	6.4  	 	 	  	Second FFO Threshold	  	9
					
	 	  	6.5  	 	 	  	Target FFO	  	9
			
	ARTICLE VII	 	FFO TARGETS	  	10
					
	 	  	7.1  	 	 	  	FFO Increase as of the End of the Performance Period	  	10
					
	 	  	7.2  	 	 	  	FFO Increase as of Any Interim Measurement Date	  	10
					
	 	  	7.3  	 	 	  	Decreases in FFO	  	12
			
	ARTICLE VIII	 	REDEMPTION OF TARGET UNITS; VESTING	  	13
					
	 	  	8.1  	 	 	  	Redemption of Target Units at the End of the Performance Period	  	13
					
	 	  	8.2  	 	 	  	Redemption of Target Units on any Interim Measurement Date	  	13
					
	 	  	8.3  	 	 	  	Dividends	  	14
			
	ARTICLE IX	 	TERMINATION OF EMPLOYMENT	  	15
					
	 	  	9.1  	 	 	  	Termination for Cause, Voluntary Resignation, or Nonrenewal of Employment Agreement	  	15
					
	 	  	9.2  	 	 	  	Termination for Death or Permanent Disability	  	15
					
	 	  	9.3  	 	 	  	Termination Without Cause	  	15
					
	 	  	9.4  	 	 	  	Change in Control	  	16
			
	ARTICLE X	 	ADMINISTRATION	  	18
					
	 	  	10.1	 	 	  	Committee	  	18
					
	 	  	10.2	 	 	  	Committee Authority	  	18
					
	 	  	10.3	 	 	  	Committee Determinations	  	18
					
	 	  	10.4	 	 	  	Compensation of Committee	  	18
					
	 	  	10.5	 	 	  	Indemnification of Committee	  	18

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

									
	 	  	 	  	 	  	 	  	Page

	 ARTICLE XI
	  	MISCELLANEOUS	  	20
					
	 	  	11.1  	  	 	  	Amendment; Termination	  	20
					
	 	  	11.2  	  	 	  	Non-Alienation	  	20
					
	 	  	11.3  	  	 	  	Funding	  	20
					
	 	  	11.4  	  	 	  	Governing Law	  	20
					
	 	  	11.5  	  	 	  	Withholding	  	21
					
	 	  	11.6  	  	 	  	At-Will Employment Status	  	21
					
	 	  	11.7  	  	 	  	Headings	  	21
					
	 	  	11.8  	  	 	  	Enforceability	  	21
					
	 	  	11.9  	  	 	  	Successors	  	21
					
	 	  	11.10	  	 	  	Beneficiary	  	21
					
	 	  	11.11	  	 	  	Incorporation of Equity Incentive Plan	  	21
					
	 	  	11.12	  	 	  	Stock Certificates; Restrictive Legends	  	22
					
	 	  	11.13	  	 	  	Gender	  	22
					
	 	  	11.14	  	 	  	Notices	  	22
					
	 	  	11.15	  	 	  	Uniformity	  	23

  

 iii 

 AMERICAN FINANCIAL REALTY TRUST 
 2006 LONG-TERM INCENTIVE PLAN 
  
 ARTICLE I  
 INTRODUCTION 
  
 This Plan is intended to provide additional compensation for executive
personnel who contribute materially to the continued growth, development and future business success of the Company. The Plan is a performance-based plan that utilizes earnings targets based on the growth of FFO over the Performance Period as the
measurement criteria for determining incentive compensation for Participants in the Plan. The Company believes that the Plan will encourage Participants to contribute materially to the growth of the Company, thereby benefiting the Company’s
shareholders, and aligning the economic interests of Participants with those of the shareholders. All capitalized terms used in this Article I shall have the meaning ascribed to them in Article II below. 
  

 1 

 ARTICLE II  
 DEFINITIONS 
  
 The
following terms shall have the following meanings for purposes of the Plan: 
  
 2.1 “Affiliate” shall mean any entity that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company, including, but
not limited to, First States Group, L.P. 
  
 2.2
“Award” shall mean the Target Unit awarded to a Participant under the Plan. 
  
 2.3 “Award Agreement” shall mean the individual agreement provided by the Committee to each Participant notifying the Participant
of participation in the Plan and specifying the Target Unit awarded to the Participant and the other terms and conditions of the Award. By accepting and executing an Award Agreement, each Participant shall be agreeing to be subject to the terms of
the Plan and to the discretion of the Committee as set forth in the Plan. 
  
 2.4 “Beneficiary” shall mean, on the death of the Participant, his estate, which shall include either the Participant’s probate estate or living trust. 
  
 2.5 “Board” shall mean the Board of Trustees of the
Company. 
  
 2.6 “Cause” shall mean,
unless defined otherwise in a Participant’s Employment Agreement, (i) the conviction of the Participant of, or the entry of a plea of guilty or nolo contendere by the Participant to, a felony (exclusive of any felony relating to negligent
operation of a motor vehicle or a conviction, plea of guilty or nolo contendere arising solely under a statutory provision imposing criminal liability upon the Participant on a per se basis due to the offices held by the Participant with the
Employer, so long as any act or omission of the Participant with respect to such matter was not taken or omitted in contravention of any applicable policy or directive of the Board); (ii) willful breach of the Participant’s duty of loyalty
which is materially detrimental to the Employer; (iii) willful failure to perform or adhere to explicitly stated duties that are consistent with the Participant’s Employment Agreement, or the Employer’s reasonable and customary guidelines
of employment or reasonable and customary corporate governance guidelines or policies, including without limitation any business code of ethics adopted by the Board, or to follow the lawful directives of the Board (provided such directives are
consistent with the terms of the Participant’s Employment Agreement) which, in any such case, continues for thirty (30) days after written notice from the Board to the Participant; or (iv) gross negligence or willful misconduct in the
performance of the Participant’s duties. For these purposes, no act, or failure to act, on the Participant’s part will be deemed “gross negligence” or “willful misconduct” unless done, or omitted to be done, by the
Participant not in good faith and without a reasonable belief that the Participant’s act, or failure to act, was in the best interest of the Employer. 
  
 2.7 “CEO” shall mean the Chief Executive Officer of the Company. 
  
 2.8 “Change in Control” shall mean, unless defined otherwise in a Participant’s Employment
Agreement, the occurrence of any of the following events: (i) any person, entity or 
  

 2 

 affiliated group, excluding the Company, an Affiliate or any employee benefit plan of the Company, acquiring more than
50% of the then outstanding voting shares of the Company; (ii) the consummation of any merger or consolidation of the Company into another company, such that the ownership interest of the holders of the voting shares of the Company immediately prior
to such merger or consolidation is less than 50% of the voting power of the securities of the surviving company or the parent of such surviving company; (iii) the complete liquidation of the Company or the sale or disposition of all or substantially
all of the Company’s assets, such that after the transaction, the ownership interest of the holders of the voting shares of the Company immediately prior to the transaction is less than 50% of the voting securities of the acquirer, or the
parent of the acquirer; or (iv) a majority of the Board votes in favor of a decision that a Change in Control has occurred. 
  
 2.9 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 2.10 “Committee” shall mean the Compensation and Human Resources Committee of the Board or such
other committee appointed by the Board for purposes of administering the Plan. 
  
 2.11 “Common Share” shall mean a common share of beneficial ownership, par value $0.001 per share, of the Company. 
  
 2.12 “Company” shall mean American Financial Realty Trust, a Maryland real estate investment trust
or any business organization that succeeds to its business and elects to continue this Plan. 
  
 2.13 “Earned Shares” shall mean Restricted Common Shares that have vested in accordance with Section 8.2.2 or 9.3.2 of the Plan, but remain subject to the transfer restrictions described in
Section 8.2.3 of the Plan. Each Earned Share shall equal one Common Share on the date the transfer restrictions have lapsed. 
  
 2.14 “Effective Date” shall mean January 1, 2006. 
  
 2.15 “Employee” shall mean any employee of an Employer, whether such employee is so employed at the
time this Plan is adopted or becomes so employed subsequent to the adoption of this Plan. 
  
 2.16 “Employer” shall mean the Company or an Affiliate that employs the Participant. 
  
 2.17 “Employment Agreement” shall mean the employment agreement entered into between the Employee and the Employer governing the
terms of the Employee’s employment with the Employer. 
  
 2.18 “Equity Incentive Plan” shall mean the American Financial Realty Trust 2002 Equity Incentive Plan, as may be amended from time to time, or such other plan maintained by the Company pursuant to which Common
Shares granted under the Plan may be issued to Participants. 
  

 3 

 2.19 “Fair Market Value” shall mean as of a given date (i) the closing price of a
Common Share on the principal exchange on which Common Shares are then trading, if any (or as reported on any composite index which includes such principal exchange), on the trading day previous to such date, or if Common Shares were not traded on
the trading day previous to such date, then on the next preceding date on which a trade occurred; (ii) if Common Shares are not traded on an exchange but are quoted on NASDAQ or a successor quotation system, either the (a) closing sale price, or (b)
the mean between the closing representative bid and asked prices for the Common Shares on the trading day previous to such date as reported by NASDAQ or such successor quotation systems, as may be appropriate; or (iii) if Common Shares are not
publicly traded on an exchange and not quoted on NASDAQ or a successor quotation system, the Fair Market Value of a Common Share as established by the Committee acting in good faith. The Fair Market Value as determined by the Committee in good faith
and in the absence of fraud shall be binding and conclusive upon all parties hereto, and the Participant agrees to accept and shall not challenge any determination of Fair Market Value made by the Committee. 
  
 2.20 “FFO” shall mean the Company’s Funds From
Operation, which shall be determined in accordance with the NAREIT definition of Funds From Operation in effect as of April 27, 2005 and as set forth on the attached Schedule 1. 
  
 2.21 “FFO Baseline” shall mean the FFO baseline pursuant to which the determination will be made
whether there has been an increase in the FFO during the Performance Period, which shall be determined pursuant to Section 6.1 of the Plan. 
  
 2.22 “FFO Increase” shall mean the change in FFO per share on any Measurement Date as compared to the FFO Baseline. 
  
 2.23 “FFO Targets” shall mean the First FFO
Threshold, the Second FFO Threshold, and the Target FFO. 
  
 2.24
“Final FFO” shall mean the FFO Increase as of the Final Measurement Date. 
  
 2.25 “Final Measurement Date” shall mean the Measurement Date for the final Plan Year of the Performance Period. 
  
 2.26 “First FFO Threshold” shall mean that the
percentage increase in the FFO during the Performance Period has equaled or exceeded the amount described in Section 6.3 of the Plan. 
  
 2.27 “Interim Measurement Date” shall mean any Measurement Date that occurs prior to the last Plan Year for the Performance
Period. 
  
 2.28 “Measurement Date” shall
mean December 31 of each Plan Year or such other date determined by the Committee in its sole discretion. 
  
 2.29 “NAREIT” shall mean the National Association of Real Investment Trusts. 
  
 2.30 “Participant” shall mean any Employee who has
been designated by the Committee as eligible to receive an Award under this Plan. 
  

 4 

 2.31 “Performance Period” shall mean the period between the Effective Date and
December 31, 2012; provided, however, that with respect to any individual who becomes a Participant in the Plan after the Effective Date, the “Performance Period” shall be the period determined by the Committee in its sole discretion.

  
 2.32 “Permanent Disability” shall mean
the inability of a Participant, due to a physical or mental impairment, to perform the material services of his or her position with the Employer for a period of six (6) months, whether or not consecutive, during any 365-day period. A determination
of Permanent Disability shall be made in good faith by the Committee. Notwithstanding the foregoing, if a Participant is determined to have incurred a Permanent Disability pursuant to the terms of his or her Employment Agreement, he or she shall be
Permanently Disabled for purposes of this Plan. 
  
 2.33
“Plan” shall mean the American Financial Realty Trust 2006 Long-Term Incentive Plan, as embodied herein and as amended from time to time. 
  
 2.34 “Plan Year” shall mean the calendar year. 
  
 2.35 “Redemption Date” shall mean the date that all
or any portion of the Target Units are redeemed under the Plan. 
  
 2.36 “Redemption Event” shall mean a determination by the Committee that the Company has met an FFO Target during the Performance Period. 
  
 2.37 “Restricted Common Shares” shall mean Common Shares issued pursuant to Section 8.2.1 of the
Plan that are subject to the vesting schedule described in Section 8.2.2 of the Plan. Each Restricted Common Share shall equal either one Earned Share or one Common Share on the vesting date, as provided in Section 8.2.2 of the Plan. 
  
 2.38 “Second FFO Threshold” shall mean that the
percentage increase in the FFO during the Performance Period has equaled or exceeded the amount described in Section 6.4 of the Plan. 
  
 2.39 “Target FFO” shall mean the percentage increase in the FFO during the Performance Period has equaled or exceeded the amount
described in Section 6.5 of the Plan. 
  
 2.40 “Target
Units” shall mean the aggregate number of Units awarded to a Participant under the Plan, as described in Section 5.2 of the Plan. 
  
 2.41 “Units” shall mean phantom rights that will be converted to Common Shares or Restricted Common Shares on a Redemption Date if
the FFO Targets specified under the Plan are met. Each Unit shall represent one Common Share or Restricted Common Share. 
  
 2.42 “Weighted Average Shares Outstanding” shall mean, for any Measurement Date, the weighted average number of Company shares
outstanding, as publicly reported by the Company as of such date. Such Weighted Average Shares Outstanding calculation is exclusive of the dilutive effect, if any, of the conversion features included within the Company’s outstanding $450
million Senior Convertible Notes issued in 2004. 
  

 5 

 ARTICLE III  
 PARTICIPATION 
  
 3.1 Initial Participants. The Committee shall determine which Employees shall be Participants in the Plan as of the Effective Date and shall provide each individual with an Award Agreement evidencing their participation
in the Plan. 
  
 3.2 New Participants. At any
time after the Effective Date, the Committee may provide that other Employees shall be eligible to participate in the Plan on the terms and conditions that the Committee determines appropriate for such Employee. Any such Employee shall be provided
with an individual Award Agreement evidencing their participation in the Plan. Any Employee designated as a Participant in the Plan shall not become a Participant in the Plan until the first day of the Plan Year that first occurs on or after such
individual’s designation as a Participant in the Plan. 
  

 6 

 ARTICLE IV  
 COMMON SHARES SUBJECT TO THE PLAN 
  
 4.1 Common Shares Subject to the Plan. Subject to adjustment as described in Section 4.2 below, the aggregate number of Common Shares that may be issued under the Plan is 4,800,000 Common Shares.
All Common Shares issued under the Plan shall be issued from the Equity Incentive Plan. If any Units are forfeited prior to being redeemed as Restricted Common Shares under the Plan, the Common Shares corresponding to such Units shall not again be
available for issuance under the Plan; provided, however, that if the reason for the forfeiture of the Units is because the Participant’s employment with the Employer is (i) terminated by the Employer with Cause, voluntarily terminated by the
Participant, or terminated as a result on nonrenewal of the Participant’s Employment Agreement, then any Common Shares corresponding to Units that are forfeited by the Participant as a result of such termination of employment with the Employer
shall again be available for issuance under the Plan, or (ii) terminated without Cause, then any Common Shares corresponding to Units for which no redemption can occur in accordance with Section 9.3.1 shall again be available for issuance under the
Plan. In addition, if any Restricted Common Shares are forfeited by a Participant prior to becoming Earned Shares or Common Shares, the Common Shares represented by such Restricted Common Shares shall again be available for issuance under the Plan.

  
 4.2 Changes in Common Shares or Assets of the
Company, Acquisition or Liquidation of the Company and Other Corporate Events. If an event described in Section 12.3 of the Equity Incentive Plan (or other similar provision of such plan or a successor plan) occurs, then the Committee
may, in such manner as it may deem equitable, adjust (i) the maximum number of Common Shares that may be issued under the Plan, (ii) the FFO Baseline, (iii) the number of Units covered by the Target Unit held by a Participant, and (iv) the number of
Restricted Common Shares and Earned Shares held by, or credited to, as applicable, a Participant, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, to facilitate such
transactions or events or to give effect to such changes in laws, regulations or principles. 
  

 7 

 ARTICLE V 
 TARGET UNITS 
  
 5.1
Awards. Awards under the Plan shall consist of Target Units. All Awards shall be subject to the terms and conditions set forth herein and to such other terms and conditions consistent with the Plan as the Committee deems
appropriate and as are specified in writing by the Committee to the individual in the Award Agreement. Any Common Shares issued under the Plan shall also be subject to the terms and conditions of the Equity Incentive Plan. The Committee shall
approve the form and provisions of the Award Agreement. A Target Unit awarded to one Participant does not mean that the Participant will receive a Target Unit at any other time or that the Participant will receive the same Target Unit in any future
Award. A Target Unit awarded to one Employee does not mean that any other Employee will receive an Award of a Target Unit or have the same number of Units subject to such Target Unit. 
  
 5.2 Target Units. Each Participant shall be awarded a specified number of Units, which shall be
determined by the Committee, in its sole discretion, and set forth in the Participant’s Award Agreement. The total number of Units awarded to the Participant shall be such Participant’s Target Unit. The Target Unit shall represent the
maximum number of Common Shares that the Participant will receive if the FFO Target is met at the end of the Performance Period. Except for adjustments described above in Section 4.2, a Participant’s Target Unit may not be decreased during a
Performance Period; however, at any time during the Performance Period, the Committee may determine to increase the number of Units subject to the Participant’s Target Unit. 
  

 8 

 ARTICLE VI 
 FFO 
  
 6.1
FFO Baseline. The FFO Baseline shall be the baseline FFO that will be measured during the Performance Period to determine whether there has been a sufficient increase in the FFO during the Performance Period in order to satisfy
the FFO Targets. The FFO Baseline shall be calculated on a per Common Share basis, derived from the Weighted Average Shares Outstanding. The Committee shall determine the FFO Baseline prior to the Effective Date of the Plan for all Participants in
the Plan as of the Effective Date. For any individual who becomes a Participant in the Plan after the Effective Date, the Committee shall determine the FFO Baseline for such Participant effective prior to the Plan Year in which such individual has
become a Participant in the Plan. 
  
 6.2 FFO
Increase. The Committee shall determine the FFO Increase for each Measurement Date in its sole discretion, as soon as administratively practicable following the Measurement Date. Once the Committee has determined the FFO Increase for the
Measurement Date, its decision shall be final, conclusive and binding on all Participants. 
  
 6.3 First FFO Threshold. Unless the Committee determines otherwise with respect to any Participant in the Plan prior to the Plan Year in which such Participant first is designated as a Participant
in the Plan, the First FFO Threshold shall be equal to an increase of FFO of 45%. 
  
 6.4 Second FFO Threshold. Unless the Committee determines otherwise with respect to any Participant in the Plan prior to the Plan Year in which such Participant first is designated as a
Participant in the Plan, the Second FFO Threshold shall be equal to an increase of FFO of 70%. 
  
 6.5 Target FFO. Unless the Committee determines otherwise with respect to any Participant in the Plan prior to the Plan Year in which such Participant first is designated as a Participant in the
Plan, the Target FFO shall be equal to an increase of FFO of 100%. 
  

 9 

 ARTICLE VII 
 FFO TARGETS 
  
 7.1 FFO Increase as of the End of the Performance Period. As soon as administratively practicable after the end of the Performance Period, the Committee shall determine the FFO Increase for the
Final Measurement Date; provided, however, that if the Target FFO was met on any Interim Measurement Date as provided in Section 7.2 below this Section 7.1 shall not apply. The FFO Increase will determine whether all or any portion of the
Participant’s Target Unit will be redeemed. Specifically, if the FFO Increase meets or exceeds any of the FFO Targets described in this Section 7.1, the respective portion of the Participant’s Target Unit will be redeemed as follows:

  
 7.1.1 Target FFO. If the Final FFO is equal to or
greater than the Target FFO, a Redemption Event will occur and 100% of the Units subject to the Participant’s Target Unit will be redeemed in accordance with Section 8.1. 
  
 7.1.2 Second FFO Threshold. If the Final FFO is less than the Target
FFO, but equal to or greater than the Second FFO Threshold, a Redemption Event will occur and 55% (or such other percentage as determined by the Committee prior to the Plan Year in which the Employee first becomes a Participant in the Plan) of the
Units subject to the Participant’s Target Unit will be redeemed, plus an additional 1.5% will be redeemed for each 1% that the Final FFO exceeds the Second FFO Threshold, in accordance with Section 8.1.  
  
 7.1.3 First FFO Threshold. If the Final FFO is less than the Second
FFO Threshold, but equal to or greater than the First FFO Threshold, a Redemption Event will occur and 30% (or such other percentage as determined by the Committee prior to the Plan Year in which the Employee first becomes a Participant in the Plan)
of the Units subject to the Participant’s Target Unit will be redeemed, plus an additional 1% will be redeemed for each 1% that the Final FFO exceeds the First FFO Threshold, in accordance with Section 8.1.  
  
 7.1.4 No FFO Target Is Met. If the Final FFO is less than the First
FFO Threshold, no Redemption Event will occur, no portion of the Participant’s Target Unit will be redeemed, and the Participant’s Target Unit will be forfeited in its entirety. 
  
 The redemption of Units under this Section 7.1 is cumulative so that if on any Interim Measurement Date a Redemption Event occurs with
respect to all or any portion of the Participant’s Target Unit, no additional Units will be redeemed unless the FFO Increase exceeds the greatest FFO Increase from any prior Interim Measurement Date. No fractional Units will be redeemed under
this Section 7.1 and in the event of a fractional Unit, the Units that will be redeemed will be rounded down to the nearest whole Unit.  
  
 7.2 FFO Increase as of Any Interim Measurement Date. As soon as administratively practicable after the end of any Interim Measurement
Date, the Committee shall determine the FFO Increase for the Interim Measurement Date; provided, however, that if the Target FFO was met on any prior Interim Measurement Date no further determinations are necessary under this Section 7.2. The FFO
Increase will determine whether all or any portion of the Participant’s Target Unit will be redeemed after such Interim Measurement Date. 
  

 10 

 Specifically, if the FFO Increase meets or exceeds any of the FFO Targets described in this Section 7.2 for any Interim
Measurement Date, the respective portion of the Participant’s Target Unit will be redeemed as follows: 
  
 7.2.1 No FFO Target Is Met. If the FFO Increase is less than the First FFO Threshold, no portion of the Participant’s Target Unit will be
redeemed as a result of the Interim Measurement Date.  
  
 7.2.2 First FFO Threshold. If the FFO Increase for the Interim Measurement Date equals or exceeds the First FFO Threshold, but is less than the Second FFO Threshold, a Redemption Event will occur and 30% (or such other percentage as
determined by the Committee prior to the Plan Year in which the Employee first becomes a Participant in the Plan) of the Units subject to the Participant’s Target Unit will be redeemed, plus an additional 1% will be redeemed for each 1% that
the FFO Increase for such Interim Measurement Date exceeds the First FFO Threshold, in accordance with Section 8.2. For any subsequent Interim Measurement Date, an additional 1% of the Participant’s Target Unit will be redeemed in accordance
with Section 8.2 for each 1% that the FFO Increase for such Interim Measurement Date exceeds the highest FFO Increase for any prior Interim Measurement Date. Redemptions in accordance with the immediately preceding sentence shall continue until the
FFO Increase for any Interim Measurement Date equals or exceeds the Second FFO Threshold. In such an event, no further redemptions shall be made pursuant to this Section 7.2.2. 
  
 7.2.3 Second FFO Threshold. If the FFO Increase for the Interim
Measurement Date equals or exceeds the Second FFO Threshold, but is less than the Target FFO, a Redemption Event will occur and 55% (or such other percentage as determined by the Committee prior to the Plan Year in which the Employee first becomes a
Participant in the Plan) of the Units subject to the Participant’s Target Unit will be redeemed, plus an additional 1.5% will be redeemed for each 1% that the FFO Increase for such Interim Measurement Date exceeds the Second FFO Threshold, in
accordance with Section 8.2. For any subsequent Interim Measurement Date, an additional 1.5% of the Participant’s Target Unit will be redeemed in accordance with Section 8.2 for each 1% that the FFO Increase for such Interim Measurement Date
exceeds the highest FFO Increase for any prior Interim Measurement Date. Redemptions in accordance with the immediately preceding sentence shall continue until the FFO Increase for any Interim Measurement Date equals or exceeds the Target FFO. In
such an event, no further redemptions shall be made pursuant to this Section 7.2.3. Redemption pursuant to this Section 7.2.3 is cumulative so that if the requirements of Section 7.2.2 are met on a previous Interim Measurement Date the portion of
the Participant’s Target Unit that will be redeemed as a result of this Section 7.2.3 shall be aggregated with any prior redemptions of the Participant’s Target Unit.  
  
 7.2.4 Target FFO. If the FFO Increase for the Interim Measurement Date
equals or exceeds the Target FFO, a Redemption Event will occur and 100% (or such other percentage as determined by the Committee prior to the Plan Year in which the Employee first becomes a Participant in the Plan) of the Units subject to the
Participant’s Target Unit will be redeemed in accordance with Section 8.2. Redemption pursuant to this Section 7.2.4 is cumulative so that if the requirements of Section 7.2.2 or 7.2.3 are met on a previous Interim Measurement Date the portion
of the Participant’s Target Unit that will be redeemed as a result of this Section 7.2.4 
  

 11 

 shall be aggregated with any prior redemptions of the Participant’s Target Unit. Once the Target FFO is met for the
Participant, no additional redemptions will occur as a result of this Section 7.2.4. 
  
 No fractional Units will be redeemed under this Section 7.2 and in the event of a fractional Unit, the Units that will be redeemed will be rounded down to the nearest whole Unit. 
  
 7.3 Decreases in FFO. If on any Measurement Date the FFO
Increase is less than the FFO Increase for a prior Measurement Date, no adjustment will be made to the Units redeemed as a result of the prior Measurement Date. 
  

 12 

 ARTICLE VIII 
 REDEMPTION OF TARGET UNITS; VESTING 
  
 8.1 Redemption of Target Units at the End of the Performance Period. If a Redemption Event occurs under Section 7.1, the percentage
of the Participant’s Target Unit that will be redeemed will be based on the FFO Target that was met. Each Unit will be redeemed for one Common Share to the extent that Common Shares are available for issuance under the Equity Incentive Plan at
the time of the redemption. The Common Shares will be fully vested on the Redemption Date and no restrictions on transferability of such Common Shares, other than those imposed by the Company on its Common Shares in general and under the Equity
Incentive Plan. 
  
 8.2 Redemption of Target Units on any
Interim Measurement Date. Except as otherwise provided in Article IX, if a Redemption Event occurs under Section 7.2, the Participant’s Target Unit will be redeemed as described in this Section 8.2, and shall be subject to the terms
and conditions described in this Section 8.2. 
  
 8.2.1
Redemption Amount. The percentage of the Participant’s Target Unit that will be redeemed will be based on the FFO Target that was met. Each Unit will be redeemed for one Restricted Common Share. 
  
 8.2.2 Vesting Schedule. If an FFO Target is met pursuant to Section
7.2, the Participant shall be vested in 50% of his Restricted Common Shares as of the Redemption Date, and 25% of such Restricted Common Shares shall become vested on each of the next two anniversaries of the first day of the Plan Year in which the
Redemption Date occurs if the Participant is employed by the Employer on each such date; provided, however, that if an FFO Target is met in the first Plan Year, 50% of the Restricted Common Shares received will become vested on the second
anniversary of the Effective Date if the Participant is employed by the Employer on such date and 25% of such Restricted Common Shares shall become vested on each of the next two anniversaries of the Effective Date if the Participant is employed by
the Employer on each such date. Notwithstanding the preceding sentence, all Restricted Common Shares shall be fully vested as of the last day of the Performance Period if the Participant is employed by the Employer on such date. With respect to
Restricted Common Shares that vest in accordance with this Section 8.2.2, on the applicable vesting date, 60% of such Restricted Common Shares shall be converted to Earned Shares and shall be subject to the transferability restrictions described in
Section 8.2.3, and 40% of the Restricted Common Shares shall become Common Shares and shall not be subject to the transfer restrictions set forth in Section 8.2.3, except that such Common Shares shall be subject to such restrictions that the Company
imposes on its Common Shares in general and under the Equity Incentive Plan. 
  
 8.2.3 Transfer Restrictions. Unless the Committee determines otherwise, no Earned Shares received under this Plan may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant prior to the end of the Performance Period and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate. Any Earned Shares held by
the Participant at the end of the Performance Period shall be converted to Common Shares and no restrictions on transferability of such Common Shares will be in effect, other than those imposed by the Company on its Common Shares in general and
under the Equity Incentive Plan. 
  

 13 

 8.3 Dividends. Dividends that are paid by the Company on its Common Shares shall be
paid on any Restricted Common Shares and Earned Shares held by a Participant. No dividends or dividend equivalents shall be payable on any Participant’s Units or Target Unit. 
  

 14 

 ARTICLE IX 
 TERMINATION OF EMPLOYMENT 
  
 9.1 Termination for Cause, Voluntary Resignation, or Nonrenewal of Employment Agreement. Unless the Committee determines otherwise or as otherwise provided in the Participant’s Employment Agreement, if a
Participant’s employment with an Employer is terminated by the Employer on account of Cause, voluntarily by the Participant for any reason, or the Participant’s Employment Agreement terminates without renewal and the Participant’s
employment with the Employer terminates as a result of such nonrenewal, then: 
  
 9.1.1 Target Units. The portion of the Participant’s Target Unit that has not been redeemed will be forfeited. If the termination occurs prior to the applicable Redemption Date, no Units shall be redeemed
for the Participant. 
  
 9.1.2 Restricted Common Shares.
Any portion of the Participant’s Restricted Common Shares that have not vested will be forfeited back to the Company. 
  
 9.1.3 Earned Shares. The restrictions on transferability for any Earned Shares held by the Participant at the time of his termination of employment
will continue for the period set forth in Section 8.2.3. 
  
 9.2
Termination for Death or Permanent Disability. Unless the Committee determines otherwise or as otherwise provided in the Participant’s Employment Agreement, if a Participant’s employment with an Employer is terminated
on account of death or by the Employer on account of Permanent Disability, then: 
  
 9.2.1 Target Units. The Participant shall continue as an active Participant in the Plan and the Participant’s Target Units shall be redeemed in accordance with the terms of the Plan as if the Participant
continued in employment with the Employer for the remainder of the Performance Period, except that any Restricted Common Shares received as a result of a Redemption Event shall be fully vested on the Redemption Date. No transfer restrictions shall
apply to any Restricted Common Shares received pursuant to this Section 9.2.1. 
  
 9.2.2 Restricted Common Shares. Any unvested Restricted Common Shares held by the Participant shall become fully vested as of the Participant’s termination date. No transfer restrictions shall apply to any
Restricted Common Shares vested pursuant to this Section 9.2.2. 
  
 9.2.3 Earned Shares. The restrictions on transferability for any Earned Shares held by the Participant at the time of his termination of employment will cease to apply. 
  

 15 

 9.3 Termination Without Cause. Unless the Committee determines otherwise or as
otherwise provided in the Participant’s Employment Agreement, if a Participant’s employment with an Employer is terminated on account of termination by the Employer without Cause (which for this purpose does not include a termination on
account of death or Permanent Disability), then, as long as the Participant was in the Plan for at least 12 months prior to the Participant’s termination date: 
  
 9.3.1 Target Units. The Participant shall continue as an active Participant in the Plan, but the Participant’s
Target Units shall not be redeemed until the Final Measurement Date and shall be redeemed only as provided in this Section 9.3.1. On the Final Measurement Date the Committee shall determine the Final FFO and the portion of the Participant’s
Target Units that will be redeemed, which shall be determined in accordance with Section 7.1; provided, however, that for purposes of this Section 9.3.1, (i) the determination shall be made as if there has been no FFO Increase for any prior Interim
Measurement Date, and (ii) the portion of the Participant’s Target Units that shall be redeemed on the Final Measurement Date shall be determined by subtracting (A) the number of Units the Participant had redeemed prior to his termination of
employment, from (B) a pro rated number of Units, which shall be determined by multiplying the total number of Units subject to the Participant’s Target Units that are redeemable as of the Final Measurement Date based on the Final FFO, by a
fraction, the numerator of which is the total number of months that the Participant was employed by the Employer during the Performance Period (which for this purpose includes the month in which the Participant’s employment was terminated) and
the denominator of which is the number of months in the Performance Period. If the number of Units in (A) of the immediately preceding sentence is greater than the number of Units in (B), no additional Units will be redeemed for the Participant.
Redemption of Units in accordance with this Section 9.3.1 shall be redeemed in accordance with Section 8.1 of the Plan. 
  
 9.3.2 Restricted Common Shares. Any unvested Restricted Common Shares held by the Participant shall become fully vested as of the
Participant’s termination date, with 60% becoming Earned Shares and 40% becoming Common Shares on the vesting date. The transfer restrictions set forth in Section 8.2.3 shall apply to any Earned Shares received pursuant to this Section 9.3.2
for the period set forth in Section 8.2.3. 
  
 9.3.3 Earned
Shares. The restrictions on transferability for any Earned Shares held by the Participant at the time of his termination of employment will continue to apply for the period set forth in Section 8.2.3. 
  
 Notwithstanding anything in this Section 9.3 to the contrary, if the Participant’s
employment with the Employer is terminated by the Employer without Cause prior to the first anniversary of the Participant’s active participation in the Plan, this Section 9.3 shall not apply to the Participant’s Target Units and the
Participant’s termination of employment shall be treated as a termination covered by Section 9.1. 
  
 9.4 Change in Control. If a Change in Control occurs during a Performance Period while the Participant is an Employee of an Employer
or if a former Employee has outstanding Units under the Plan at the time of the Change in Control as a result of a termination of employment covered by Section 9.2 or 9.3 of the Plan, then: 
  
 9.4.1 Target Units. Any portion of the Participant’s Target Unit
that has not been redeemed as of the Change in Control shall be redeemed as Common Shares, with each Unit representing one Common Share; provided, however, that any Participant who had a termination of employment covered by Section 9.2 or 9.3 shall
receive a redemption of his Target Unit in accordance with Section 9.2 or 9.3, as applicable, determined as if the Target FFO was met as of the date of the Change in Control and the Performance Period ended on the date of 
  

 16 

 the Change in Control. Notwithstanding the immediately preceding sentence, if the Target Units are deemed as deferred
compensation subject to the requirements of section 409A of the Code, a redemption on a Change in Control will only occur if such Change in Control event meets the requirements of section 409A(2)(A)(v) of the Code and the corresponding regulations,
and, if the Change in Control is not a covered event, a Change in Control will not be deemed to have occurred for purposes of this Section 9.4.1. 
  
 9.4.2 Restricted Common Shares. Any unvested Restricted Common Shares held by the Participant shall become fully vested as of the Change in
Control. No transfer restrictions shall apply to any Restricted Common Shares vested pursuant to this Section 9.4.2. 
  
 9.4.3 Earned Shares. The restrictions on transferability for any Earned Shares held by the Participant at the time of the Change in Control will
cease to apply. 
  
 The redemption, vesting and lapse of restrictions will occur
immediately prior to the Change in Control.  
  
 Notwithstanding
anything in this Plan to the contrary, if a Change in Control occurs prior to the Effective Date, any Employee who has been allocated Target Units by the Committee shall have such Target Units be deemed as granted as of the date of the Change in
Control and the consequences described in Section 9.4.1 shall apply to such Target Units. 
  

 17 

 ARTICLE X  
 ADMINISTRATION 
  
 10.1 Committee. This Plan shall be administered by the Committee. The Committee may delegate authority to one or more subcommittees, as it deems appropriate. The Committee may also delegate ministerial duties to
Employees of an Employer or other persons it deems appropriate and capable of fulfilling such ministerial duties. 
  
 10.2 Committee Authority. The Committee shall have the sole authority to (i) determine which Employees shall be Participants, (ii)
determine the Performance Period for a Participant, (iii) determine the total number of Units that are subject to the Participant’s Target Unit, (iv) determine the FFO Increase for a Measurement Date, (v) determine the FFO Targets, (vi)
determine the FFO Baseline, (vii) amend any previously granted Award or Award Agreement, subject to the limitations under Section 11.1, (viii) determine the Redemption Date, and (ix) deal with any matters arising under the Plan. Notwithstanding the
preceding sentence, the Committee may consider the recommendations of the CEO as such recommendations relate to determining which Employees, other than himself or his family members, shall receive Awards under the Plan, the total number of Units
subject to the Participant’s Target Unit, determine the FFO Targets for such Participant, determine the FFO Baseline for such Participant, and the consequences of such Participant’s termination of employment on his outstanding Target
Units, Restricted Common Shares, and Earned Shares. 
  
 10.3
Committee Determinations. The Committee shall have all powers necessary to administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for
implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion. The Committee’s interpretations, constructions and determinations shall be final, binding and conclusive on all parties,
including but not limited to the Employers and any Employee or Participant. As a condition of participating in the Plan and receiving an Award, a Participant must acknowledge, in writing or by acceptance of an Award, that all decisions and
determinations of the Committee shall be final and binding on the Participant, his or her Beneficiaries and any other person having or claiming an interest under such Award. All powers of the Committee shall be executed in its sole discretion, in
the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals. 
  
 10.4 Compensation of Committee. The Committee shall serve without compensation for its services
hereunder. The Committee is authorized at the expense of the Company to employ such legal counsel, as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the administration of the Plan
shall be paid by the Company. 
  
 10.5 Indemnification of
Committee. To the extent permitted by applicable state law, the Company shall indemnify and hold harmless the members of the Committee, the CEO, and any delegate who is an Employee of an Employer, against any and all expenses,
liabilities and claims, including legal fees, to defend against such liabilities and claims arising out of their discharge in good faith of responsibilities under or incident to the Plan, other than expenses and 
  

 18 

 liabilities arising out of gross negligence or willful misconduct. This indemnity shall not preclude such further
indemnities as may be available under insurance purchased by the Company or provided by the Company under any bylaw, agreement or otherwise, as such indemnities are permitted under state law. 
  

 19 

 ARTICLE XI  
 MISCELLANEOUS 
  
 11.1 Amendment; Termination. This Plan, any Award and any Award Agreement may be amended or modified only with the consent of the Company acting through the Committee; provided, that any amendment or modification which
adversely affects a Participant must be consented to by such Participant to be effective against him, unless such amendment or modification to the Plan occurs prior to the Effective Date and, in such a case, no consent of the Participant is required
for such amendment or modification. Notwithstanding anything in the Plan to the contrary, while the Plan is not intended to be a deferred compensation plan subject to the requirements of section 409A of the Code, if it is subsequently determined
that the Plan is subject to the requirements of section 409A of the Code, the Committee may, without the consent of Participants in the Plan, amend the Plan and outstanding Award Agreements to comply with the requirements of section 409A of the Code
and any corresponding guidance and regulations issued under section 409A of the Code. This Plan shall terminate, automatically and without further action of the Company, upon the full satisfaction of all of the Company’s obligations hereunder.

  
 11.2 Non-Alienation. The Company shall
pay all amounts payable hereunder only to the person or persons designated by the Plan and not to any other person or corporation. No part of a Participant’s Award hereunder shall be liable for the debts, contracts, or engagements of such
Participant, nor shall a Participant’s Award be subject to execution by levy, attachment, or garnishment or by any other legal or equitable proceeding (including, but not limited to, an action for a divorce or legal separation), nor shall any
such person have any right to alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any benefits or payments hereunder in any manner whatsoever. If any Participant is adjudicated bankrupt or purports to anticipate, alienate,
sell, transfer, commute, assign, pledge, encumber or charge any distribution or payment from the Plan, voluntarily or involuntarily, the Committee, in its sole discretion, may cancel such redemption (or any part thereof) to or for the benefit of
such Participant in such manner as the Committee shall direct. 
  
 11.3 Funding. The Plan is intended to be a bonus plan and is not intended to be a plan covered by the Employee Retirement Income Security Act of 1974, as amended. The Company shall not be required to set aside any funds
for payment of amounts hereunder. Participants and their Beneficiaries, heirs, successors, and assigns shall have no legal or equitable rights, claims, or interests in any specific property or assets of the Company. No assets of the Company shall be
held in any way as collateral security for the fulfilling of the obligations of the Company under this Plan. Any and all of the Company’s assets shall be, and remain, the general unpledged, unrestricted assets of the Company. The Company’s
obligation under the Plan shall be merely that of an unfunded and unsecured promise of the Company to distribute Common Shares in the future, and the rights of Participants and their Beneficiaries shall be no greater than those of unsecured general
creditors. 
  
 11.4 Governing Law. The Plan
is established under and will be construed according to the laws of the Commonwealth of Pennsylvania, excluding conflict of law provisions. 
  

 20 

 11.5 Withholding. The redemption and/or vesting of Awards under the Plan shall
constitute taxable compensation to the Participant and shall be subject to federal (including FICA), state and local income tax reporting and withholding. In addition, each Participant shall be responsible for the payment of all individual tax
liabilities relating to such redemption and/or vesting. The Employer may require that the Participant or the Beneficiary to pay to the Employer the amount of any federal, state or local taxes that the Employer is required to withhold with respect to
the redemption and/or vesting of Awards, or the Employer may deduct from other wages paid by the Employer the amount of any withholding taxes due with respect to such redemption and/or vesting. If permitted by the Committee, a Participant may elect
to satisfy the Employer’s withholding obligation with respect to the redemption and/or vesting of an Award under the Plan by having Common Shares withheld up to an amount that does not exceed the Participant’s minimum applicable
withholding tax rate for federal (including FICA), state and local tax liabilities. The election must be in a form and manner prescribed by the Committee, may be subject to prior approval of the Committee, and no Earned Shares may be withheld for
this purpose. 
  
 11.6 At-Will Employment
Status. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Company or the Employer and the Participant. Such employment continues to be an “at will” employment
relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with or without notice, unless otherwise expressly provided for in the Participant’s Employment Agreement. Nothing in this Plan shall be
deemed to give a Participant the right to be retained in the service of the Company or the Employer, or to interfere in any way with any right of the Company or the Employer to discipline or discharge the Participant at any time, subject to the
terms of the Participant’s Employment Agreement. 
  
 11.7
Headings. The headings of Articles are for convenience only and shall not control or affect the meaning or construction of any of the provisions of this Plan. 
  
 11.8 Enforceability. In case any provision of this Plan shall be illegal or invalid for any reason,
said illegality or invalidity shall not affect the remaining parts hereof, and this Plan shall be construed and enforced as if such illegal or invalid provision had never been included herein. 
  
 11.9 Successors. The provisions of this Plan shall bind
and inure to the benefit of the Company and its successors and assigns and the Participants and their Beneficiaries. No other person shall be a third-party beneficiary or acquire any rights under this Plan. 
  
 11.10 Beneficiary. Any payments payable to a Participant
following the Participant’s death shall be payable to the Participant’s Beneficiary. 
  
 11.11 Incorporation of Equity Incentive Plan. The provisions of the Equity Incentive Plan are hereby incorporated by reference as set forth herein with respect to Common Shares awarded under the
Plan. 
  

 21 

 11.12 Stock Certificates; Restrictive Legends. 
  
 11.12.1 Stock Certificate. On the Redemption Date or as soon as
practicable thereafter, the Company shall issue a stock certificate to each Participant receiving Restricted Common Shares, Earned Shares and Common Shares hereunder. Each such certificate shall be registered in the name of the appropriate
Participant. The certificates issued hereunder shall bear a legend referring to the terms, conditions and restrictions applicable to such Restricted Common Shares, Earned Shares and Common Shares hereunder, and with respect to Restricted Common
Shares and Earned Shares shall have a legend substantially in the following form (in addition to any other legend the Committee may determine to be necessary or appropriate): 
  
 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE COMMON SHARES REPRESENTED HEREBY ARE RESTRICTED BY AND SUBJECT TO THE TERMS
AND CONDITIONS (INCLUDING FORFEITURE) OF THE AMERICAN FINANCIAL REALTY TRUST 2006 LONG-TERM INCENTIVE PLAN. COPIES OF SUCH PLAN ARE ON FILE IN THE OFFICES OF AMERICAN FINANCIAL REALTY TRUST. 
  
 11.12.2 Custody of Restricted Common Shares and Earned Shares. The
Committee may require that Common Share certificates evidencing the Restricted Common Shares and Earned Shares be held in custody by the Company until the restrictions (including those relating to vesting and transferability) set forth in this Plan
shall have lapsed, and that, as a condition to the issuance of the Restricted Common Shares and Earned Shares to any Participant such Participant shall have delivered a stock power, endorsed in blank, relating to such Restricted Common Shares and
Earned Shares. If and when such restrictions lapse, the stock certificates shall be delivered by the Company to the appropriate Participant or his designee. 
  
 11.12.3 Conditions of Issuance of Restricted Common Shares and Earned Shares. Any Restricted Common Shares and Earned Shares distributed by the
Company shall be subject to this Section 11.12, including the requirement of an appropriate legend, the requirement that the certificates representing such Restricted Common Shares and Earned Shares be held in custody by the Company and the
condition to distribution that the Participant have delivered a stock power with respect to such Restricted Common Shares and Earned Shares. 
  
 11.12.4 Successor Corporation. If the Company shall be consolidated or merged with another corporation, each Participant shall be required, to the
extent that the Restricted Common Shares and Earned Shares remain unvested and/or subject to restrictions or transferability, to deposit with the successor corporation each certificate that such Participant is entitled to receive by reason of the
ownership of the Restricted Common Shares and Earned Shares, and the other provisions of this Section 11.12 shall apply to such certificates. 
  
 11.13 Gender. The masculine gender shall include the feminine and the singular the plural, unless the context clearly requires
otherwise. 
  
 11.14 Notices. Any notice or
filing required or permitted to be given to the Committee under the Plan shall be sufficient if in writing or hand delivered, or sent by registered or certified mail to the Committee. Any notice to the Participant shall be sent to the last known
address of the Participant on the Employer’s records or hand delivered to the Participant. Any such notices shall be deemed given as of the date of delivery, or, if delivery is made by mail, as of the date shown on the postmark on the receipt
for registration or certification. 
  

 22 

 11.15 Uniformity. Nothing herein shall be construed as requiring that amounts
distributable under the Plan be the same with respect to each Participant. 
  

 23 

 SCHEDULE 1 
  
 DEFINITION OF FFO 
  
 For purposes of this Plan, FFO shall mean net income (loss) before minority interest in an operating partnership (computed in accordance with generally accepted
accounting principles), excluding gains (or losses) from debt restructuring and gains (or losses) from sales of property, less any impairment of asset values at cost (unrealized loss) plus real estate related depreciation and amortization (excluding
amortization of deferred costs) and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis.

  

 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]