Document:

<PAGE>
                                                                    Exhibit 10.2

THE ISSUANCE OF SECURITIES REPRESENTED BY THIS SUBSCRIPTION AGREEMENT HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), OR THE GEORGIA
SECURITIES ACT OF 1973 (THE "GEORGIA ACT"), OR ANY OTHER APPLICABLE STATE LAW,
AND WAS MADE IN RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION AND QUALIFICATION
PROVIDED IN THE ACT AND THE GEORGIA ACT, INCLUDING WITHOUT LIMITATION, SECTION
10-5-9(13) OF THE GEORGIA ACT. THESE SECURITIES CANNOT BE OFFERED, SOLD, OR
OTHERWISE TRANSFERRED UNLESS SUCH TRANSFER IS REGISTERED UNDER SUCH ACTS, OR
EXCEPT AS OTHERWISE PERMITTED PURSUANT TO RULE 144 UNDER THE ACT OR ANOTHER
EXEMPTION FROM REGISTRATION UNDER THE ACT, AND AN OPINION OF LEGAL COUNSEL
REASONABLY ACCEPTABLE TO THE COMPANY IS OBTAINED TO THE EFFECT THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER SUCH ACTS.

                         EBANK FINANCIAL SERVICES, INC.
                             SUBSCRIPTION AGREEMENT

TO:      ebank Financial Services Inc.
         2410 Paces Ferry Road, Suite 190
         Atlanta, Georgia 30339

         Attention:  James L. Box, Chief Executive Officer

Dear Sir:

         The undersigned (the "Subscriber") hereby tenders his subscription to
ebank Financial Services Inc., a Georgia corporation (the "Company"), on the
terms and conditions hereinafter set forth:

1.       SUBSCRIPTION FOR COMMON STOCK

Subscriber hereby irrevocably subscribes for and agrees to purchase the number
of shares of the Company's common stock (the "Common Stock") as indicated below:

Number of shares of Common Stock subscribed for: 92,592 X $1.08 per share =
Total Purchase Price: $99,999.36.

Simultaneously with the execution and delivery by Subscriber of this
Subscription Agreement, Subscriber is delivering to the Company the Total
Purchase Price for the Common Stock in the form of a check payable to "ebank
Financial Services, Inc."

Subscriber acknowledges that the issuance of the Common Stock is not and will
not be registered under the Securities Act of 1933 (the "Act"), or the
securities laws of any state in reliance upon exemptions from registration
contained in those respective laws, and that the Company's reliance

<PAGE>

upon such exemptions is based in part upon Subscriber's representations,
warranties and agreements contained in this Subscription Agreement. Subscriber
acknowledges that this Subscription Agreement constitutes a valid and binding
agreement on the Subscriber but not on the Company until accepted, and that
certificates for the Common Stock will be delivered to Subscriber as soon as
practicable after the Company accepts the Subscription Agreement.

2.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF SUBSCRIBER

In order to induce the Company to accept this subscription, Subscriber hereby
represents, warrants and agrees as follows:

         2.1 Subscriber represents that he is purchasing the Common Stock for
his own account, with the intention of holding the Common Stock for investment,
with no present intention of either (i) dividing, or allowing others to
participate in, this investment or (ii) reselling or otherwise participating
directly or indirectly in a distribution of, the Common Stock or any part
thereof. Subscriber understands that the Common Stock has not been registered
under the Act or under any state securities law in reliance on representations
contained herein.

         2.2 Subscriber represents that his financial condition is such that he
is not under any present necessity or constraint to dispose of the Common Stock
to satisfy any existing or contemplated debt or undertaking. Subscriber further
understands that he must bear the economic risk of investment in the Company for
an indefinite period (i.e., at the time of the investment, Subscriber has the
ability to afford a complete loss).

         2.3 Subscriber understands that the shares of Common Stock subject
hereto are characterized as "restricted securities" under the federal securities
laws inasmuch as they are being acquired from the Company in a transaction not
involving a public offering and that under such laws and applicable regulations
such Common Stock may be resold without registration under the Act only in
certain limited circumstances. Subscriber acknowledges and agrees that he will
not sell, transfer, or otherwise dispose of the Common Stock unless any such
transfer is registered under the Act, or unless such sale, transfer, or other
disposition would be in compliance with all applicable federal and state
securities laws and regulations and Subscriber provides the Company with a legal
opinion acceptable in form and substance to the Company and the Company's legal
counsel stating that such sale, transfer or other disposition may be made
without registration under the Act and under any other applicable laws and
regulations.

         2.4 Subscriber represents that he either personally or together with
his offeree representative(s), possesses the requisite knowledge and experience
in financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Common Stock.

         2.5 Subscriber represents and acknowledges that Subscriber has been
granted access to, and had the opportunity to review, financial and other
information relating to the Company and all documents, records, and books
pertaining to the Company and the terms and conditions of investment in the
Common Stock, as well as such other information as Subscriber deems necessary or
appropriate as a prudent and knowledgeable investor in evaluating the merits and

<PAGE>

risks of investment in the Common Stock, and that Subscriber understands that
the books and records of the Company will continue to be made available to
Subscriber for inspection upon reasonable notice, during reasonable business
hours, at the principal place of business of the Company, prior to acceptance of
this Subscription Agreement by the Company.

         2.6 Subscriber has a pre-existing business or personal relationship
with the Company or with one or more of the Company's officers, directors, or
controlling persons. Subscriber and his advisers have had a reasonable
opportunity to ask questions of and receive answers from the officers of the
Company, or a person or persons acting on their behalf, concerning the terms and
conditions of this offering, and to obtain additional information, to the extent
possessed or obtainable without unreasonable effort or expense by the officers
of the Company. All such questions have been answered to the full satisfaction
of Subscriber.

         2.7 Subscriber represents that his commitment to all speculative
investments is reasonable in relation to his net worth.

         2.8 Subscriber understands that no federal or state agency or
securities exchange has recommended or endorsed the purchase of the Common
Stock.

         2.9 Subscriber acknowledges that neither the Company, nor any person
acting on its behalf, offered to sell the Common Stock by means of any form of
advertising.

         2.10 Subscriber understands that the Over-the-Counter Bulletin Board on
which the Company's common stock is quoted is not an established market.
Subscriber understands that the transferability of the Common Stock is subject
to the restrictions set forth herein and Subscriber cannot expect to be able to
liquidate his investment in case of an emergency.

         2.11 Subscriber understands that adverse market, economic, or
regulatory events may occur that could lead to a partial or total failure of the
Company, resulting in a partial or total loss of his investment in the Company.

         2.12 Subscriber understands that there will be placed on the
certificates for the Common Stock a legend substantially in conformance with the
following language:

         THE ISSUANCE OF SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), OR THE GEORGIA
         SECURITIES ACT OF 1973 (THE "GEORGIA ACT"), OR ANY OTHER APPLICABLE
         STATE LAW, AND WAS MADE IN RELIANCE UPON THE EXEMPTIONS FROM
         REGISTRATION AND QUALIFICATION PROVIDED IN THE ACT AND THE GEORGIA ACT,
         INCLUDING WITHOUT LIMITATION, SECTION 10-5-9(13) OF THE GEORGIA ACT.
         THESE SECURITIES CANNOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED
         UNLESS SUCH TRANSFER IS REGISTERED UNDER SUCH ACTS, OR EXCEPT AS
         OTHERWISE PERMITTED PURSUANT TO RULE 144 UNDER THE ACT OR ANOTHER
         EXEMPTION FROM REGISTRATION UNDER THE ACT, AND AN OPINION OF LEGAL
         COUNSEL REASONABLY ACCEPTABLE TO THE COMPANY IS

<PAGE>

         OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
         SUCH ACTS.

         2.13 The information provided in the Investor Questionnaire to the
Company by the Subscriber about the Subscriber is true and correct as of the
date hereof, and Subscriber agrees to advise the Company prior to its acceptance
of this subscription of any material change in any such information. Subscriber
agrees that the representations and warranties of Subscriber set forth in this
Section 2 shall survive the acceptance of this subscription, in the event that
such subscription is accepted.

         2.14 Subscriber is an individual, is a citizen of the United States and
a resident of the State of Georgia. If Subscriber's residence changes to a state
other than the state indicated by Subscriber before Subscriber purchases the
Common Stock and before the Common Stock certificates are delivered to
Subscriber, Subscriber covenants and agrees to properly notify the Company.

         2.15 When executed by Subscriber, this Subscription Agreement
(including these representations and warranties) will constitute a valid and
binding obligation of Subscriber, enforceable in accordance with its terms.

         2.16 Subscriber understands and agrees that there is no minimum number
of shares that must be sold in this offering. Proceeds from this offering will
be immediately available to us regardless of the number of shares we sell.

         2.17 Subscriber understands and agrees that the subscription set forth
herein will not be binding upon the Company until it is accepted by the Company,
that acceptance of any or all subscriptions is within the sole discretion of the
Company, and that the Company may choose to accept or reject any or all
subscriptions, including this subscription, for any reason or no reason, in its
sole discretion.

         2.18 Subscriber represents and warrants to the Company that Subscriber
currently "beneficially owns" (as such term is defined below) securities of the
Company as follows: 32,915 shares of Common Stock; 40,000 shares of Series A
Preferred Stock; and a warrant to purchase 20,000 shares of Common Stock and an
additional warrant to purchase 22,857 shares of Common Stock.

Subscriber represents and warrants to the Company that no member of Subscriber's
"immediate family" (as such term is defined below)
beneficially owns securities of the Company except as follows: None            .
                                                              -----------------

If Subscriber's beneficial ownership of the Company's securities changes before
Subscriber purchases the Common Stock, Subscriber covenants and agrees to
promptly notify the Company.

The terms "beneficially owns" and "beneficial ownership" as used in this
Subscription Agreement shall have the meaning set forth in Regulation 13d-3
under the Securities Exchange Act of 1934, as amended.

<PAGE>

The term "immediate family" means a person's spouse, father, mother, children,
brothers, sisters and grandchildren; the father, mother, brothers and sisters of
a person's spouse; and the spouse of the person's child, brother or sister.

3.       INDEMNIFICATION

Subscriber hereby agrees to indemnify and hold harmless the Company and the
directors, managers, members, officers, employees and agents of the Company from
any and all loss, damage, liability or costs (including attorneys' fees) due to,
or arising out of, any breach of any representation or warranty of Subscriber
contained in this Subscription Agreement.

4.       GOVERNING LAW AND INTERPRETATION

This Subscription Agreement shall be construed in accordance with and governed
by the laws of the State of Georgia, without regard to the principles of
conflict of law. This Subscription Agreement constitutes the full and entire
agreement and understanding of the parties to this Subscription Agreement with
respect to the subjects hereof and supersedes all previous discussions and
agreements, if any, of the parties hereto with respect to the subject matter of
this Subscription Agreement. No party shall be liable for or be bound in any
other manner by any representations, warranties, covenants or agreements except
as specifically set forth in this Subscription Agreement.

5.       NOTICES

The address of record for Subscriber maintained by the Company for all purposes
of this Subscription Agreement and the Common Stock shall be that address set
forth beneath Subscriber's signature on this Subscription Agreement. Subscriber
may change his address of record only by notifying the Company in the manner
prescribed herein. Any notice under this Agreement or with respect to the Common
Stock shall be in writing and shall be deemed to have been sufficiently given or
served and effective for all purposes when presented personally or five days
after deposit with the United States Postal Service, by registered or certified
mail, postage pre-paid, addressed to the Company at its principal place of
business and to Subscriber at the address of record maintained by the Company
with respect to Subscriber.

6.       COUNTERPARTS

This Subscription Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. Facsimile transmission of signatures
shall be deemed originals.

7.       MISCELLANEOUS

         7.1 Subscriber agrees not to transfer or assign this Subscription
Agreement, or any of Subscriber's interest herein, to any other person, and
further agrees that the transfer or assignment

<PAGE>

of the Common Stock shall be made only in accordance with this Subscription
Agreement, the Act and any other applicable laws and regulations.

         7.2 Notwithstanding any of the representations, warranties,
acknowledgments, or agreements made herein by Subscriber, Subscriber does not
hereby or in any other manner waive any rights granted to Subscriber under
applicable federal or state securities laws.

         7.3 Within five days after the receipt of a written request from an
officer of the Company, Subscriber agrees to provide such information and to
execute and deliver such documents as reasonably may be necessary to comply with
any and all laws and regulations to which the Company is subject.

         7.4 The representations and warranties of Subscriber set forth herein
shall survive the sale of the Common Stock to Subscriber pursuant to this
Subscription Agreement.

         7.5 Each party hereto shall execute and deliver such additional
documents as may reasonably be necessary or desirable to consummate the
transactions contemplated by this Subscription Agreement.

         7.6 Whenever possible, each provision of this Subscription Agreement
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Subscription Agreement shall be
prohibited by or invalid under applicable law, such provisions shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of the
Subscription Agreement.

         7.7 For a term of one (1) year following the execution by Subscriber of
this Subscription Agreement, Subscriber will not make any public disclosures
about, and agrees to hold in trust and strictest confidence, any Confidential
Information (as that term is defined herein) provided to Subscriber by the
Company and Subscriber agrees not to use, reproduce, distribute, disclose or
otherwise disseminate the Confidential Information; provided however, that
Subscriber may disclose any of the Confidential Information (i) to any of its
legal and professional advisors so long as such advisors are made aware of and
agree to comply with the provisions of this Section 7.7, (ii) to any relevant
governmental agencies but only if and to the extent necessary to implement and
consummate the terms of this Subscription Agreement; or (iii) if legally
compelled (by deposition, interrogatory, request for production of documents,
subpoena, civil investigative demand or similar process) to disclose any of the
Confidential Information, and in such case, only after prior written notice to
the Company so that Company may seek a protective order or other appropriate
remedy. Subscriber agrees not to purchase or sell securities of the Company for
as long as the Confidential Information remains material and nonpublic, other
than as may be permitted by applicable law. "Confidential Information" means
information and the compilation of information related to the operation and
business of the Company which derives economic value, actual or potential, from
not being generally known to or readily ascertainable by other persons who can
obtain economic value from its disclosure or use, including without limitation,
the existence and/or contents of this Subscription Agreement or the transactions
contemplated by this Subscription Agreement.

<PAGE>

         7.8 SUBSCRIBER AGREES THAT SUBSCRIBER MAY NOT CANCEL, TERMINATE, OR
REVOKE THIS SUBSCRIPTION AGREEMENT (EXCEPT AS OTHERWISE SPECIFICALLY PERMITTED
UNDER APPLICABLE STATE SECURITIES LAWS), AND THAT THIS SUBSCRIPTION AGREEMENT
SHALL SURVIVE THE DEATH OR DISSOLUTION OF SUBSCRIBER AND SHALL BE BINDING UPON
SUBSCRIBER'S HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS, AND ASSIGNS.

         IN WITNESS WHEREOF, the undersigned has executed this Subscription
Agreement effective as of December 30, 2004.

/s/      Terry L. Ferrero
--------------------------------------
(SUBSCRIBER SIGNATURE)

Name:    Terry L. Ferrero
         -----------------------------

Address: 670 Winnmark Drive
         -----------------------------
         Roswell, Georgia 30076
         -----------------------------

ACCEPTED AS OF:
December 30, 2004:

ebank Financial Services, Inc.

By:      /s/ James L. Box
         -----------------------------

Name:    James L. Box
         -----------------------------

Title:   Chief Executive Officer
         -----------------------------<PAGE>
                                                                   EXHIBIT 10.22

(JPMORGAN LOGO)
(UBS INVESTMENT BANK LOGO)

                                December 22, 2004

                                Commitment Letter

Education Realty Operating Partnership, LP
530 Oak Court Drive, Suite 300
Memphis, TN  38117
Attention:  Randy Brown

Ladies and Gentlemen:

         You (the "Borrower") have requested that J.P. Morgan Securities Inc.
and UBS Securities LLC (the "Arrangers"), agree to structure, arrange and
syndicate a revolving senior secured credit facility in an aggregate amount of
up to $75,000,000 (the "Facility"), that JPMorgan Chase Bank, N.A. ("JPMCB") and
UBS Loan Finance LLC ("UBS") each commit to provide one-half (1/2) of the entire
principal amount of the Facility, and that JPMCB agrees to serve as
administrative agent for the Facility.

         The Arrangers are pleased to advise you that they are willing to act as
exclusive co-arrangers for the Facility.

         Furthermore, each of JPMCB, UBS and the Arrangers, respectively, are
pleased to advise you of their commitment to provide the entire amount of the
Facility, upon the terms and subject to the conditions set forth or referred to
in this commitment letter (the "Commitment Letter") and in the Summary of Terms
and Conditions attached hereto as Exhibit A (the "Term Sheet").

         It is agreed that JPMCB will act as the sole and exclusive
Administrative Agent, and that the Arrangers will act as the sole and exclusive
Co-Lead Arrangers and Joint Bookrunners (in such capacities, the "Lead
Arrangers") for the Facility. You agree that no other agents, co-agents or
arrangers will be appointed, no other titles will be awarded and no compensation
(other that that expressly contemplated by the Term Sheet and the Fee Letter
referred to below) will be paid in connection with the Facility unless you and
we shall so agree.

         We intend to syndicate the Facility (including, in our discretion, all
or part of JPMCB's and UBS's commitment hereunder) to a group of financial
institutions (together with JPMCB and UBS, the "Lenders") identified by us in
consultation with you. The Arrangers intend to commence syndication efforts
promptly upon the execution of this Commitment Letter, and you agree actively to
assist the Arrangers in completing a syndication satisfactory to them. Such

<PAGE>

Page 2

assistance shall include (a) your using commercially reasonable efforts to
ensure that the syndication efforts benefit materially from your existing
lending relationships, (b) direct contact between senior management and advisors
of the Borrower and the proposed Lenders, (c) assistance in the preparation of a
Confidential Information Memorandum and/or other marketing materials
(collectively, the "Offering Materials") to be used in connection with the
syndication and (d) the hosting, with the Arrangers, of one or more meetings of
prospective Lenders. At the Arrangers' request when "public-side" investors will
be invited to be Lenders, the Borrower will assist in the preparation of an
additional version of the Offering Materials for distribution to "public-side"
investors that consists exclusively of information and documentation that is
either publicly available or not material with respect to the Borrower, its
affiliates and any of their respective securities for purposes of United States
federal and state securities laws (the "Public-Side Version"). Prior to our
distribution of the Offering Materials and the Public-Side Version to
prospective Lenders, as applicable, the Borrower will execute and deliver to us
a letter authorizing the distribution of the Offering Materials and a separate
letter authorizing the distribution of the Public-Side Version for inclusion in
the respective information packages.

         As the Lead Arranger, the Arrangers will manage all aspects of the
syndication, including decisions as to the selection of institutions to be
approached and when they will be approached, when their commitments will be
accepted, which institutions will participate, the allocations of the
commitments among the Lenders and the amount and distribution of fees among the
Lenders. In acting as the Lead Arrangers, the Arrangers will have no
responsibility other than to arrange the syndication as set forth herein and
shall in no event be subject to any fiduciary or other implied duties. To assist
the Arrangers in their syndication efforts, you agree promptly to prepare and
provide to JPMCB, UBS and the Arrangers all information with respect to the
Borrower and the transactions contemplated hereby, including all financial
information and projections (the "Projections"), as we may reasonably request in
connection with the arrangement and syndication of the Facility. You hereby
represent and covenant that (a) all information other than the Projections (the
"Information") that has been or will be made available to JPMCB, UBS or the
Arrangers by you or any of your representatives is or will be, when furnished,
complete and correct in all material respects and does not or will not, when
furnished, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements contained therein not
materially misleading in light of the circumstances under which such statements
are made and (b) the Projections that have been or will be made available to
JPMCB, UBS or the Arrangers by you or any of your representatives have been or
will be prepared in good faith based upon reasonable assumptions. You understand
that in arranging and syndicating the Facility we may use and rely on the
Information and Projections without independent verification thereof.

         As consideration for JPMCB's and UBS's commitment hereunder and the
Arrangers' agreement to perform the services described herein, you agree to pay
to JPMCB and UBS the nonrefundable fees set forth in the Term Sheet and in the
Fee Letter dated the date hereof and delivered herewith (the "Fee Letter").

         JPMCB's and UBS's commitment hereunder and the Arrangers' agreement to
perform the services described herein are subject to (a) there not occurring or
becoming known to us any material adverse condition or material adverse change
in or affecting the business, operations, property, condition (financial or
otherwise) or prospects of the Borrower and its subsidiaries, taken as a whole,
(b) our completion of and satisfaction in all respects with a due diligence
investigation of the Borrower, (c) our not becoming aware after the date hereof
of any information or other matter affecting the Borrower or the transactions
contemplated hereby

<PAGE>

Page 3

which is inconsistent in a material and adverse manner with any such information
or other matter disclosed to us prior to the date hereof, (d) there not having
occurred a material disruption of or material adverse change in financial,
banking or capital market conditions that, in our judgment, could materially
impair the syndication of the Facility, (e) our satisfaction that prior to and
during the syndication of the Facility there shall be no competing offering,
placement or arrangement of any debt securities or bank financing by or on
behalf of the Borrower or any affiliate thereof, (f) the negotiation, execution
and delivery on or before March 1, 2005 of definitive documentation with respect
to the Facility satisfactory to JPMCB and its counsel and (g) the other
conditions set forth or referred to in the Term Sheet. The terms and conditions
of JPMCB's and UBS's commitment hereunder and of the Facility are not limited to
those set forth herein and in the Term Sheet. Those matters that are not covered
by the provisions hereof and of the Term Sheet are subject to the approval and
agreement of JPMCB, UBS, the Arrangers and the Borrower.

         You agree (a) to indemnify and hold harmless JPMCB, UBS, the Arrangers
and their respective affiliates and their respective officers, directors,
employees, advisors, and agents (each, an "indemnified person") from and against
any and all losses, claims, damages and liabilities to which any such
indemnified person may become subject arising out of or in connection with this
Commitment Letter, the Facility, the use of the proceeds thereof or any related
transaction or any claim, litigation, investigation or proceeding relating to
any of the foregoing, regardless of whether any indemnified person is a party
thereto, and to reimburse each indemnified person upon demand for any legal or
other expenses incurred in connection with investigating or defending any of the
foregoing, provided that the foregoing indemnity will not, as to any indemnified
person, apply to losses, claims, damages, liabilities or related expenses to the
extent they are found by a final, non-appealable judgment of a court to arise
from the willful misconduct or gross negligence of such indemnified person, and
(b) to reimburse JPMCB, UBS, the Arrangers and their affiliates on demand for
all out-of-pocket expenses (including due diligence expenses, syndication
expenses, consultant's fees and expenses, travel expenses, and reasonable fees,
charges and disbursements of counsel) incurred in connection with the Facility
and any related documentation (including this Commitment Letter, the Term Sheet,
the Fee Letter and the definitive financing documentation) or the
administration, amendment, modification or waiver thereof. No indemnified person
shall be liable for any indirect or consequential damages in connection with its
activities related to the Facility.

         This Commitment Letter shall not be assignable by you without the prior
written consent of JPMCB, UBS, and the Arrangers (and any purported assignment
without such consent shall be null and void), is intended to be solely for the
benefit of the parties hereto and is not intended to confer any benefits upon,
or create any rights in favor of, any person other than the parties hereto. This
Commitment Letter may not be amended or waived except by an instrument in
writing signed by you, JPMCB, UBS, and the Arrangers. This Commitment Letter may
be executed in any number of counterparts, each of which shall be an original,
and all of which, when taken together, shall constitute one agreement. Delivery
of an executed signature page of this Commitment Letter by facsimile
transmission shall be effective as delivery of manually executed counterpart
hereof. This Commitment Letter and the Fee Letter are the only agreements that
have been entered into among us with respect to the Facility and set forth the
entire understanding of the parties with respect thereto.

         This Commitment Letter shall be governed by, and construed in
accordance with, the law of the State of New York. The Borrower consents to the
nonexclusive jurisdiction and venue of the state or federal courts located in
the City of New York. Each party hereto irrevocably waives,
<PAGE>

Page 4

to the fullest extent permitted by applicable law, (a) any right it may have to
a trial by jury in any legal proceeding arising out of or relating to this
Commitment Letter, the Fee Letter or the transactions contemplated hereby or
thereby (whether based on contract, tort or any other theory) and (b) any
objection that it may now or hereafter have to the laying of venue of any such
legal proceeding in the state or federal courts located in the City of New York.

         This Commitment Letter is delivered to you on the understanding that
neither this Commitment Letter, the Term Sheet nor the Fee Letter, nor any of
their terms or substance, shall be disclosed, directly or indirectly, to any
other person except (a) to your officers, agents and advisors who are directly
involved in the consideration of this matter, (b) as may be required in
connection with your initial public offering or (c) as may be compelled in a
judicial or administrative proceeding or as otherwise required by law.

         You acknowledge that JPMCB, UBS, the Arrangers and their affiliates may
be providing debt financing, equity capital or other services (including
financial advisory services) to other companies in respect of which you may have
conflicting interests regarding the transactions described herein and otherwise.
Neither JPMCB, UBS nor the Arrangers will use confidential information obtained
from you by virtue of the transactions contemplated by this letter or their
other relationships with you in connection with the performance by JPMCB, UBS or
the Arrangers of services for other companies, and neither JPMCB, UBS or the
Arrangers will furnish any such information to other companies. You also
acknowledge that JPMCB, UBS and the Arrangers have no obligation to use in
connection with the transactions contemplated by this letter, or to furnish to
you, confidential information obtained from other companies.

         The compensation, reimbursement, indemnification and confidentiality
provisions contained herein and in the Fee Letter shall remain in full force and
effect regardless of whether definitive financing documentation shall be
executed and delivered and notwithstanding the termination of this Commitment
Letter or JPMCB's and UBS's commitment hereunder.

         If the foregoing correctly sets forth our agreement, please indicate
your acceptance of the terms hereof and of the Term Sheet and the Fee Letter by
returning to us executed counterparts hereof and of the Fee Letter not later
than 5:00 p.m., New York City time, on January 14, 2005. JPMCB's and UBS's
commitment and the Arrangers' agreements herein will expire at such time in the
event JPMCB has not received such executed counterparts in accordance with the
immediately preceding sentence.

         JPMCB, UBS and the Arrangers are pleased to have been given the
opportunity to assist you in connection with this important financing.

                                               Very truly yours,

                                               JPMORGAN CHASE BANK, N.A.

                                               By: /s/ Kent Kaiser
                                                   --------------------------
                                                   Name: Kent Kaiser
                                                         --------------------
                                                   Title: Sr. Vice President
                                                          -------------------

<PAGE>

Page 5

                                               J.P. MORGAN SECURITIES INC.

                                               By: /s/ John J. Regan
                                                   --------------------------
                                                   Name: John J. Regan, Jr.
                                                         --------------------
                                                   Title: Managing Director
                                                          -------------------

                                               UBS LOAN FINANCE LLC

                                               By: /s/ Thomas J. W. Archie
                                                   --------------------------
                                                   Name: Thomas J. W. Archie
                                                         --------------------
                                                   Title: Director
                                                          -------------------

                                               By: /s/ Warren Jervey
                                                   --------------------------
                                                   Name: Warren Jervey
                                                         --------------------
                                                   Title: Director and Counsel
                                                          -------------------

                                               UBS SECURITIES LLC

                                               By: /s/ Thomas J. W. Archie
                                                   --------------------------
                                                   Name: Thomas J. W. Archie
                                                         --------------------
                                                   Title: Director
                                                          -------------------

                                               By: /s/ Warren Jervey
                                                   --------------------------
                                                   Name: Warren Jervey
                                                         --------------------
                                                   Title: Director and Counsel
                                                          -------------------

Accepted and agreed to as of the date first written above by:

EDUCATION REALTY OPERATING
   PARTNERSHIP, LP

By: Education Realty OP GP, Inc.
      General Partner

By: /s/ Randall H. Brown
    ------------------------
    Name: Randall H. Brown
          ------------------
    Title: Executive Vice President and Chief Financial Officer
           ----------------------------------------------------

<PAGE>

                                    EXHIBIT A

                                   TERM SHEET

                               [follows this page]

<PAGE>
EDUCATION REALTY TRUST                                          DECEMBER 2004
================================================================================

                         SUMMARY OF TERMS AND CONDITIONS

THIS TERM SHEET IS INTENDED AS AN OUTLINE FOR DISCUSSION PURPOSES ONLY AND DOES
NOT PURPORT TO SUMMARIZE ALL THE CONDITIONS, COVENANTS, REPRESENTATIONS,
WARRANTIES AND OTHER PROVISIONS WHICH WOULD BE CONTAINED IN DEFINITIVE LEGAL
DOCUMENTATION FOR THE FINANCING CONTEMPLATED HEREBY. IN ADDITION, THE
ORGANIZATIONAL STRUCTURE OF THE BORROWER AND THE FINANCIAL, LEGAL, ACCOUNTING,
TAX AND ALL OTHER ASPECTS OF THE TRANSACTION, WHICH IS THE SUBJECT HEREOF, SHALL
BE SATISFACTORY TO THE LENDERS AND THEIR RESPECTIVE COUNSEL.

BORROWER:                  Education Realty Operating Partnership, LP ("ERTOP")
                           and each Project Subsidiary (the "Borrower"). Project
                           Subsidiary is each subsidiary of ERTOP which is
                           contributing a property to the Collateral Pool.

GUARANTOR:                 Education Realty Trust, Inc. (the "Guarantor").

CO-LEAD  ARRANGERS
AND JOINT BOOK
RUNNER:                    J.P. Morgan Securities Inc. and UBS Securities LLC
                           (the "Arrangers").

ADMINISTRATIVE
AGENT:                     JPMorgan Chase Bank ("JPMCB" or the "Agent").

SYNDICATION AGENT:         UBS Securities LLC

LENDERS:                   JPMorgan Chase Bank, UBS AG and a group of lenders
                           selected by the Arrangers and satisfactory to Agent
                           and the Borrower (collectively, together with the
                           Agent in its capacity as lender, the "Lenders").

DOCUMENTATION:             The Facility is evidenced by a credit agreement (the
                           "Credit Agreement"), notes and other legal
                           documentation (collectively, together with the Credit
                           Agreement, the "Loan Documents") satisfactory to the
                           Lenders.

FACILITY:                  The amount of the Facility shall be equal to
                           $75,000,000. Advances under the Facility (the
                           "Facility") shall be limited in aggregate to the
                           lesser of: i) the amount of the Aggregate Commitment
                           and ii) the aggregate Borrowing Base Availability.

                           Up to $10,000,000 of the Facility shall be available
                           for the issuance of letters of credit by JPMCB
                           ("Letter of Credit Sub-Facility", or "Sub-Facility").
                           Letters of credit issued and outstanding under the
                           Sub-Facility shall be treated as an advance under the
                           Facility for calculation of the Borrowing Base
                           Availability. The expiry dates of the letters of
                           credit issued under the Sub-Facility shall not exceed
                           the Maturity Date. The fronting fee for JPMCB shall
                           be 12.5 bps. Annual letter of credit fees shall be
                           equal to the LIBOR credit spread, payable quarterly
                           in advance. The minimum amount of each letter of
                           credit shall be $100,000.00.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       1
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                           If necessary to meet the Borrower's funding
                           deadlines, JPMCB will make swing loans to the
                           Borrower prior to the Maturity Date, not to exceed an
                           amount at any one time outstanding equal to the
                           lesser of $10,000,000.00 or the unused portion of the
                           Facility. Each Lender shall purchase its portion of a
                           swing loan within five (5) business days after the
                           swing loan is funded.

ACCORDION:                 The Borrower shall have the ability during the
                           initial term of the Facility to request that the
                           Aggregate Commitment be increased to a maximum of
                           $125,000,000, subject to commercially reasonable
                           efforts by the Arrangers to arrange such increase
                           under customary terms, including the absence of
                           default or event of default. Each increase in the
                           Aggregate Commitment shall be in a minimum amount of
                           $15,000,000, unless Agent consents to a smaller
                           amount. The increase will be syndicated on a "best
                           efforts" basis, and no Lender shall be required to
                           escalate commitments to facilitate such increase. The
                           accordion feature will not be available if the
                           Borrower has previously reduced the Aggregate
                           Commitment pursuant to the terms of the Credit
                           Agreement.

TERM:                      The Aggregate Commitment shall terminate, and all
                           loans and other amounts outstanding under the
                           Facility shall be due and payable three years from
                           the date of execution of the Credit Agreement (the
                           "Maturity Date") provided, that the Borrower shall
                           have the option, exercisable not more than 120 or
                           less than 60 days prior to the initial Maturity Date,
                           to extend the Maturity Date for one year, subject
                           only to (i) the payment by the Borrower of an
                           extension fee for the pro-rata account of all of the
                           Lenders equal to 20 basis points of the Aggregate
                           Commitment at the time of the extension, (ii)
                           delivery of such documents as the Agent may
                           reasonably request to confirm that the extension has
                           been authorized on behalf of the Borrower and (iii)
                           the condition that no default or unmatured default
                           under the Facility shall exist at the time of the
                           extension.

USE OF PROCEEDS:           The proceeds available under the Facility shall be
                           used by the Borrower to fund debt refinancing;
                           capital improvements, expansion or additional
                           development; working capital, payment of costs in
                           connection with the Facility; acquisitions of student
                           housing communities provided that such
                           acquisitions/uses constitute Permitted Investments.

RATES AND FEES:            Unused Fee
                           ----------
                           A per annum fee (as set forth in the Pricing Schedule
                           attached hereto) shall be payable on the amount of
                           the committed but unfunded portion of the Facility,
                           based upon the average outstanding balance of the
                           entire Facility (swing loans will be deemed a
                           utilization of the Facility for this purpose) during
                           the quarter, payable to the Agent on behalf of the
                           Lenders, quarterly in arrears.

                           Interest Rate
                           -------------
                           At the election of the Borrower, all advances under
                           the Facility (other than swing loans) shall bear
                           interest at either LIBOR or Base Rate based pricing
                           plus the applicable spread (as set forth in the
                           Pricing Schedule attached hereto), which shall be
                           determined by the Agent from time to time, based

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       2
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                           on the Total Leverage Ratio. Swing loans shall bear
                           interest at the Base Rate based pricing plus the
                           applicable spread. No more than six LIBOR borrowings
                           can be outstanding at any time.

                           Amounts not applied to a LIBOR contract will accrue
                           at the Base Rate. LIBOR interest periods shall be
                           one, two or three months. Any adjustment to the
                           interest rate spreads shall be effective as of the
                           date the quarterly financial statements are required
                           to be delivered to the Agent.

                                    "Base Rate" means, at any time, the higher
                                    of (1) JPMCB prime rate, and (2) the federal
                                    funds effective rate most recently
                                    determined by the Agent plus 1/2% per annum.

                           The Credit Agreement will include customary
                           provisions (a) protecting the Lenders against
                           increased costs or loss of yield resulting from
                           changes in reserve, tax, capital adequacy and other
                           requirements of law and (b) indemnifying the Lenders
                           for breakage costs incurred in connection with among
                           other things, any prepayment of a LIBOR loan on a day
                           other than the last day of an interest period with
                           respect thereto. After maturity or default, the
                           interest rate will be equal to the Base Rate plus 3%
                           per annum.

INTEREST
CALCULATION:               Interest shall be calculated on the basis of a three
                           hundred sixty (360) day year based on twelve (12)
                           thirty (30) day months, except that interest due and
                           payable for a period of less than a full month shall
                           be calculated by multiplying the actual number of
                           days elapsed in such period by a daily rate based on
                           said 360-day year.

INTEREST
PAYMENTS:                  Interest shall be due on the first day of each month.

COLLATERAL:                The Facility will be secured by cross-collateralized,
                           mortgage liens on all Collateral Pool properties
                           including:

                           o First priority mortgage liens (or first lien deed
                             of trust) and security agreements on real estate;
                             and

                           o First priority assignment of rents, leases, and
                             other income and contracts for each property; and

                           o Other standard and customary collateral
                             documentation, for real estate secured credits,
                             including but not limited to title policies,
                             surveys and environmental indemnification, as
                             reasonably required by the Agent.

INTEREST RATE
PROTECTION:                At Borrower's option, interest rate protection is
                           available through JPMCB.

RECOURSE:                  The Facility shall be full recourse on a joint and
                           several basis to Borrower and the Guarantor.

REPAYMENT:                 Outstanding principal plus interest due on the
                           Maturity Date. Proceeds may be borrowed, repaid, and
                           re-borrowed so long as availability exists under the
                           Facility.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       3
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

PREPAYMENT:                Amounts outstanding under the Facility may be prepaid
                           in whole or in part (subject to the Minimum Paydown
                           Amount provisions below) on one business day's prior
                           written notice, without penalty or premium. If
                           prepayment of a LIBOR based portion is made on a date
                           other than the last day of the applicable Interest
                           Period, the Borrower will indemnify Lenders for all
                           costs and expenses actually incurred as a result of
                           such prepayment, including, without limitation, the
                           cost of terminating any LIBOR contracts.

MINIMUM
PAYDOWN
AMOUNT:                    $500,000 with additional increments of $100,000.

MINIMUM
FUNDING
AMOUNT:                    For all advances, $1,000,000 with additional
                           increments of $100,000. Fundings are at Borrower's
                           option with three business days' prior notice for
                           LIBOR borrowings and with one business day's notice
                           for Base Rate borrowings, each accompanied by
                           certification of continued compliance with covenants,
                           representations and warranties.

FACILITY
REDUCTIONS:                The Borrower may irrevocably cancel undrawn amounts
                           of the Aggregate Commitment upon three business days'
                           prior written notice. The minimum cancellation amount
                           is $5,000,000, and cancellations above the minimum
                           shall be in increments of $500,000. Notwithstanding
                           the foregoing, the Aggregate Commitment may not be
                           reduced below $37,500,000, unless entirely canceled.
                           All such reductions shall be applied on a pro rata
                           basis among the Lenders.

COSTS AND
EXPENSES:                  Borrower will reimburse Agent and Arrangers for all
                           reasonable costs and expenses in connection with the
                           Facility and any subsequent amendments and waivers,
                           including but not limited to reasonable attorney's
                           fees, consultant costs, and recording charges.

MATERIAL ADVERSE
EFFECT PROVISIONS:         Any condition which causes or continues the
                           occurrence of an Event of Default or has a material
                           adverse effect upon (i) the business, operations,
                           properties, assets, prospects, corporate structure or
                           condition (financial or otherwise) of Borrower or the
                           Guarantor, taken as a whole, (ii) the ability of
                           Borrower or the Guarantor, taken as a whole, to
                           perform, or of Agent or any Lender to enforce, any of
                           the Facility obligations.

CONDITIONS
PRECEDENT TO
CLOSING DATE:              The Credit Agreement will contain conditions
                           precedent to Closing of the Facility which are
                           customary for this type of transaction, including
                           without limitation:

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       4
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                                    o  Documentation on terms consistent with
                                       the provisions of this summary and in
                                       form and substance reasonably
                                       satisfactory to the Agent and its
                                       counsel.

                                    o  Satisfactory opinions from Borrower and
                                       Guarantor's counsel, including opinions
                                       relating to the enforceability of the
                                       loan documents, due organization and
                                       other items, as specified.

                                    o  The contemplated initial public offering
                                       ("IPO") of the Guarantor's stock shall
                                       have been completed.

CONDITIONS
PRECEDENT TO
EACH ADVANCE:              Concurrent with each request for funding under the
                           Facility, the Borrower will provide to the Agent:

                                    o  Calculation of Borrowing Base
                                       Availability, and

                                    o  Certificate signed by the Chief Financial
                                       Officer of the Managing Member of ERTOP
                                       indicating continued compliance with all
                                       covenants under the Facility.

DUE DILIGENCE
FOR THE ADMISSION
OF EACH PROPERTY
INTO THE COLLATERAL
POOL:                      Each property is subject to certain due diligence
                           requirements. The due diligence information of each
                           property shall include, but not be limited to: a
                           valid certificate of occupancy or similar
                           certificate, proof of insurance (satisfactory to
                           Agent), property insurance, a copy of a current title
                           report along with copies of all items of record, an
                           ALTA survey certified to the Agent, an inspection
                           report by an architect or engineer approved by the
                           Agent, an environmental report (acceptable to Agent),
                           UCC searches by county and state, a current rent
                           roll, a FIRREA conforming appraisal, a copy of the
                           purchase agreement, recent photos of the property,
                           last three years of operating statements, a site
                           visit by the Agent and a pro forma operating
                           statement. The Borrower will also provide such other
                           information as may be reasonably requested by the
                           Agent.

                           The Agent, its counsel and other professionals
                           engaged by Agent shall have sufficient time to review
                           and approve the due diligence information prior to
                           inclusion of a property in the Collateral Pool.

                           The Borrower will purchase and provide a mortgagee's
                           title policy in the amount of the Aggregate
                           Commitment by a title underwriter acceptable to the
                           Agent subject only to coverage exceptions and
                           encumbrances approved by the Agent in its sole
                           discretion.

APPRAISALS:                All references to appraised value shall refer to the
                           valuation set forth in a third party FIRREA
                           conforming appraisal acceptable to the Agent and the
                           Required Lenders. Each appraisal must be no more than
                           twelve (12) months old, and will be updated annually
                           if requested by Agent or the Required Lenders.

RELEASE PROVISIONS

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       5
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

FOR THE FACILITY:          The Borrower may sell or release individual
                           properties from the Collateral Pool, provided:

                             1)  After the release of properties there is no
                                 default under the Credit Agreement;

                             2)  The Borrower has provided to the Agent a
                                 certificate and calculations signed by ERTOP
                                 indicating continued compliance with all
                                 covenants under the Facility after the release
                                 of properties.

                             3)  If a Borrower's or Guarantor's property has
                                 been released from the Collateral Pool, then
                                 that Borrower or Guarantor shall be released
                                 from liability under the Facility.

REPRESENTATIONS
AND WARRANTIES:            Customary for this type of Facility, including but
                           not limited to the following:

                                 1.  Valid existence and qualification,
                                     including qualification as a real estate
                                     investment trust or real estate investment
                                     trust subsidiary (as applicable);

                                 2.  Corporate authorization;

                                 3.  No contravention of laws or contracts;
                                     binding effect;

                                 4.  Financial and other information is true and
                                     correct;

                                 5.  No material adverse change that has a
                                     Material Adverse Effect;

                                 6.  No material environmental matters;

                                 7.  Compliance with laws and regulations,
                                     including zoning, fire safety and building
                                     requirements of properties, ERISA,
                                     environmental and REIT laws;

                                 8.  Maintenance of required licenses and
                                     permits with respect to all properties;

                                 9.  No material litigation, casualty or
                                     condemnation proceedings pending with
                                     respect to Borrower or any properties;

                                 10. Payment of taxes and insurance premiums
                                     when due;

                                 11. Good title;

                                 12. Properties are in good condition and
                                     repair, no deferred maintenance;

                                 13. No default or Events of Default under the
                                     Facility.

COVENANTS:

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       6
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

AFFIRMATIVE:               Customary for a loan of this size and type including,
                           but not limited to, covenants relating to compliance
                           with laws, maintenance of insurance, maintenance of
                           corporate existence and REIT status, keeping of books
                           and records, maintenance of properties, payment of
                           taxes, furnishing of periodic financial statements
                           and reports and compliance certificates and other
                           financial information.

                           The REIT shall at all times remain listed and in good
                           standing on the New York Stock Exchange and shall
                           maintain its tax status as a real estate investment
                           trust in compliance with all applicable tax
                           provisions.

NEGATIVE:                  Customary for a loan of this size and type, including
                           but not limited to:

                           Limitation on change in control of ERTOP and the
                           REIT.

                           ERTOP will not, nor will it permit any subsidiary to
                           enter into any merger, consolidation, reorganization
                           or liquidation or transfer or otherwise dispose of,
                           over any one-year period during the term of the
                           Facility, properties which either (i) exceed more
                           than 25% of the Total Asset Value of all of their
                           income-producing properties or (ii) contribute more
                           than 25% of the consolidated Net Operating Income of
                           ERTOP and the Guarantor derived from their
                           income-producing properties ("Substantial
                           Properties"), except for transactions between
                           wholly-owned subsidiaries and/or ERTOP. The ERTOP
                           will not, nor will it permit any of its subsidiaries
                           to, enter into a sale/leaseback of any of its real
                           property assets (in a single or multiple
                           transactions).

                           Borrower and Guarantor primary operations shall
                           consist of the ownership, development, operation, and
                           management of student housing communities.

                           Merger restriction on the REIT, which shall mean a
                           merger or consolidation following which the REIT or
                           an entity wholly owned by the REIT is no longer the
                           sole general partner and majority shareholder of
                           ERTOP; or a merger or consolidation, or any other
                           event, where the REIT shall own less than a 51%
                           interest in ERTOP.

                           Substantially all of the business operations of the
                           REIT shall be performed through ERTOP and its
                           subsidiaries, and all but $10,000,000 of the assets
                           of the REIT shall be owned through ERTOP. Further,
                           all net proceeds from any equity or debt offerings of
                           the REIT shall be promptly distributed to the
                           Borrower.

FINANCIAL:                 In addition to all other conditions herein and those
                           conditions typically required in similar facilities,
                           the following financial covenants will apply (for the
                           purposes of calculating financial covenants, the
                           Borrower's pro rata share of its interest in
                           unconsolidated affiliates shall be included) :

                                    Total Leverage Ratio
                                    --------------------
                                    At all times shall not exceed 65%.

                                    Interest Expense Coverage
                                    -------------------------

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       7
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                                    Commencing with the earlier of the first
                                    time that at least $25,000,000 is
                                    outstanding under the Facility (the
                                    "Commencement Date"), or the quarter ending
                                    March 31, 2006, REIT, Borrower and their
                                    consolidated subsidiaries total EBITDA
                                    divided by total Recurring Interest Expense
                                    shall not be less than 2.00, calculated
                                    based on the preceding twelve months, or
                                    such shorter period commencing on the
                                    Commencement Date. If EBITDA is calculated
                                    over a period of less than twelve months,
                                    and one of the months is August, then the
                                    average EBITDA for the months used in the
                                    calculation other than August will be
                                    substituted for the August EBITDA.

                                    Fixed Charge Coverage
                                    ---------------------
                                    Commencing with the earlier of the
                                    Commencement Date, or the quarter ending
                                    March 31, 2006, REIT, Borrower and their
                                    consolidated subsidiaries total EBITDA (less
                                    a capital expenditure reserve of $125 per
                                    bed) divided by total fixed charges
                                    (including total debt service, preferred
                                    stock dividends and scheduled capitalized
                                    lease payments) shall not be less than 1.50,
                                    calculated based on the preceding twelve
                                    months, or such shorter period commencing on
                                    the Commencement Date. If EBITDA is
                                    calculated over a period of less than twelve
                                    months, and one of the months is August,
                                    then the average EBITDA for the months used
                                    in the calculation other than August will be
                                    substituted for the August EBITDA.

                                    Maximum Distributions
                                    ---------------------
                                    Dividends/distributions of ERTOP, both
                                    individually and combined with the REIT,
                                    made on or after January 1, 2006, shall not
                                    exceed greater of 95% of ERTOP's Funds From
                                    Operations calculated for each on a trailing
                                    twelve-month period (or such shorter period
                                    as applicable from the Closing Date), or
                                    amount necessary to maintain REIT tax
                                    status.

                                    Minimum Tangible Net Worth
                                    --------------------------
                                    Minimum Borrower GAAP net worth at all times
                                    of 85% of net worth at the Closing Date
                                    (after giving effect to the consummation of
                                    the IPO), plus 75% of the aggregate net
                                    proceeds received by Borrower in connection
                                    with any subsequent stock offerings of the
                                    REIT consummated after the Closing Date.
                                    Borrower GAAP net worth includes an add-back
                                    of accumulated depreciation.

                                    Maximum Variable Rate Debt
                                    --------------------------
                                    REIT, Borrower and their consolidated
                                    subsidiaries total variable rate debt to
                                    Total Indebtedness ratio at all times not
                                    greater than 30%, calculated as unhedged
                                    variable rate indebtedness divided by Total
                                    Indebtedness.

                           The following covenants will apply to the Collateral
                           Pool properties:

                                    o  There shall be, at all times, at least
                                       four separate properties in the
                                       Collateral Pool.

                                    o  There shall be, at all times, at least
                                       $50,000,000 of aggregate Property Asset
                                       Value in the Collateral Pool.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       8
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                                    o  At all times during the term of the
                                       Facility, no single Collateral Pool
                                       property shall represent more than 30%
                                       of the aggregate Property Asset Value in
                                       the Collateral Pool, except for the
                                       property known as Jefferson Pointe.

                                    o  The Borrower shall not encumber the
                                       Collateral Pool properties with debt
                                       other than those encumbrances approved
                                       in writing by the Agent.

PERMITTED
INVESTMENTS:               Borrower and Guarantor may make the following
                           permitted investments so long as (i) the aggregate
                           amount of such permitted investments does not exceed
                           30% of the Borrower's Total Asset Value and (ii) the
                           amount of each of the following categories of
                           permitted investments does not exceed the specified
                           percentage of the Borrower's Total Asset Value at any
                           time during the term of the Facility:

<Table>
<S>                                                                         <C>
                           Investments in Undeveloped Land                  10%
                           ----------------------------------------------------
                           Investments in Construction in Progress          20%
                           ----------------------------------------------------
                           Investments in Joint Ventures                    20%
                           ----------------------------------------------------
                           Investments other than those relating to
                           Borrower's core business of developing,
                           constructing, owning, leasing to consumers,
                           operating and selling or otherwise disposing
                           of student housing communities                   10%
                           ----------------------------------------------------
</Table>

REPORTING:                 Borrower will provide to the Agent, for the benefit
                           of the Lenders, certain financial and other
                           information with respect to the Borrower, the
                           Guarantor and the properties as may be reasonably
                           requested by the Agent including the following:

                               o    Within 120 days of the end of each fiscal
                                    year, annual audited financial statements of
                                    the Borrower.

                               o    Within 45 days of the end of each fiscal
                                    quarter, quarterly financial statements, a
                                    calculation of compliance with the Borrowing
                                    Base Availability, compliance with covenant
                                    compliance and related reports, including a
                                    balance sheet, statements of operations and
                                    cash flows, listing of properties acquired
                                    during the quarter including their NOI, and
                                    summary property-by-property operating
                                    information.

                               o    Along with the statements required above, a
                                    quarterly compliance certificate from the
                                    Chief Financial Officer or Chief Accounting
                                    Officer of the Managing Member of ERTOP
                                    confirming that there are no defaults under
                                    the credit agreement.

                               o    Within 30 days of the beginning of any
                                    fiscal year, an annual operating budget for
                                    the Borrower.

                               o    All reports to or filings for ERTOP or the
                                    REIT with the Securities Exchange
                                    Commission.

                               o    Any other reports as the Agent may
                                    reasonably request.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       9
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

EVENTS OF
DEFAULT:                   Customary for this type of Facility, including but
                           not limited to the following:

                               o    Failure to pay principal, interest or fees
                                    when due;

                               o    Failure to observe covenants (subject, in
                                    certain cases, to cure periods provided in
                                    the Credit Agreement);

                               o    Material breach of representations and
                                    warranties (subject, in certain cases, to
                                    cure periods provided in the Credit
                                    Agreement);

                               o    Final unsatisfied adverse judgment of an
                                    aggregate of $10,000,000 or more against
                                    Borrower or Guarantor that has not been
                                    stayed, discharged or bonded within 30 days;

                               o    Default with respect to any indebtedness of
                                    Borrower or Guarantor in excess of
                                    $10,000,000; o Other usual defaults,
                                    including insolvency, bankruptcy, and ERISA
                                    violations in excess of $10,000,000.

ASSIGNMENTS/
PARTICIPATIONS:            The Lenders shall be permitted to assign all or a
                           portion of their loans and commitments with the
                           consent, not to be unreasonably withheld, of (a) the
                           Borrower, unless (i) the assignee is a Lender, an
                           affiliate of a Lender or an approved fund or (ii) an
                           Event of Default has occurred and is continuing, (b)
                           the Agent or (c) the Issuing Bank. In the case of
                           partial assignments (other than to another Lender, to
                           an affiliate of a Lender or an approved fund), the
                           minimum assignment amount shall be $5,000,000. The
                           Lenders shall also be permitted to sell
                           participations in their loans. Participants shall
                           have the same benefits as the Lenders with respect to
                           yield protection and increased cost provisions.
                           Voting rights of participants shall be limited to
                           those matters with respect to which the affirmative
                           vote of the Lender from which it purchased its
                           participation would be required. Pledges of loans in
                           accordance with applicable law shall be permitted
                           without restriction.

GOVERNING LAW
AND JURISDICTION:          State of New York

COUNSEL TO JPMCB:          Locke Liddell & Sapp LLP

DEFINITIONS:               Actual Calculated Loan Amount - As to each Collateral
                           Pool property, the loan amount which would produce a
                           debt service coverage ratio of 1.30 using the NOI for
                           the Collateral Pool property and an interest rate
                           equal to the then current three-month LIBOR based
                           pricing plus the applicable spread for the Facility.

                           Aggregate Commitment - Means, as of any date, the
                           aggregate of the then-current commitments of all the
                           Lenders, which is, as of the Closing Date, Seventy
                           Five Million Dollars ($75,000,000.00).

                           Assets Under Development - Means, as of any date of
                           determination, all projects and expansion areas of
                           existing projects for which a certificate of
                           occupancy has not been issued, upon which
                           income-producing improvements are under construction,
                           and upon which construction is progressing with

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       10
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                           diligence in accordance with a reasonable, industry
                           standard construction schedule.

                           Borrowing Base Availability - The aggregate of the
                           following, calculated for each Collateral Pool
                           property: the lesser of (a) 65% of the Property Asset
                           Value OR (b) the lesser of the Actual Calculated Loan
                           Amount and the Imputed Loan Amount.

                           Closing Date - The date on which all Conditions
                           Precedent to Closing have been met and all required
                           documents have been executed and delivered to and
                           accepted by the Agent.

                           Collateral Pool - Each property meeting all of the
                           following criteria, as certified by the Chief
                           Financial Officer or Chief Accounting Officer of the
                           Managing Member of ERTOP, will be deemed eligible for
                           the Collateral Pool:

                           1. is a student housing community located in the
                              continental United States; and

                           2. is owned Fee Simple or under Eligible Ground
                              Leases by the Borrower, Guarantor or contributing
                              wholly-owned Subsidiary; and

                           3. is not an Asset Under Development; and

                           4. is self-managed by the Borrower or one of its
                              subsidiaries, provided that JPI, as the seller of
                              some of the property, may manage the properties
                              sold to Borrower for up to ninety (90) days after
                              the sale(all management rights shall be expressly
                              subordinate to the Facility); and

                           5. has a valid certificate of occupancy or similar
                              certificate of approval for use as a student
                              housing facility; and

                           6. has no material title defects which affect the
                              marketability of the property; and

                           7. has no material deferred maintenance or capital
                              improvements required to continue operation as a
                              first class student housing community as
                              determined by an architectural or engineering
                              report approved by the Agent; and

                           8. has been approved by the Agent and the Required
                              Lenders, such approvals not to be unreasonably
                              withheld.

                           If a property does not meet the conditions above, the
                           Borrower may request that the Agent and the Required
                           Lenders approve inclusion of the property in the
                           Collateral Pool by submitting the required due
                           diligence materials to the Agent for the benefit of
                           the Lenders.

                           EBITDA - with respect to any Person, income before
                           payment or charges of applicable interest, taxes,
                           depreciation, amortization, and extraordinary items
                           excluding any gains or losses from pay-off or
                           retirement of debt and from sales of assets, as
                           reported by such Person and its Subsidiaries on a
                           consolidated basis in accordance with GAAP.

                           Eligible Ground Lease -A ground lease which (a) has a
                           remaining term (including any renewal options
                           exercisable at the sole option of the lessee) of at
                           least 40 years, (b) may be transferred and/or
                           assigned without consent of the lessor, (c) contains
                           customary lender protection provisions which

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       11
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                           provide or allow for, without consent of the lessor,
                           (i) notice and cure rights, (ii) pledge and mortgage
                           of the leasehold interest, (iii) recognition of a
                           foreclosure of leasehold interest including entering
                           into new lease with the lender and (iv) no right of
                           landlord to terminate without consent of lessee's
                           lender. Ground leases which do not meet these
                           conditions may be considered Eligible Ground Leases
                           with approval of Agent and Required Lenders.

                           Funds From Operations - Net income plus depreciation,
                           minority interests and amortization exclusive of any
                           gain or loss from debt restructuring and property
                           sales, to be consistent with NAREIT standards.

                           Imputed Loan Amount- As to each Collateral Pool
                           property, the loan amount which would produce a debt
                           service coverage ratio of 1.30 using the NOI for the
                           Collateral Pool property and annual interest and
                           principal payments that would be needed to fully
                           amortize such loan amount, based on a 30-year
                           mortgage-style amortization at an interest rate of
                           175 basis points above the yield on the then 10-year
                           U.S. Treasury Note, such (combined) interest rate to
                           be not less than 7.00%.

                           Indebtedness - For any Person, without duplication,
                           (A) as shown on such Person's balance sheet prepared
                           in accordance with GAAP (i) all indebtedness of such
                           Person for borrowed money or for the deferred
                           purchase price of property and, (ii) all indebtedness
                           of such Person evidenced by a note, bond, debenture
                           or similar instrument (whether or not disbursed in
                           full in the case of a construction loan), (B) the
                           face amount of all letters of credit issued for the
                           account of such Person and, without duplication, all
                           unreimbursed amounts drawn thereunder, (C) all
                           payment obligations and mark-to-market exposure of
                           such Person under any interest rate protection
                           agreement (including, without limitation, any
                           interest rate swaps, caps, floors, collars and
                           similar agreements) and currency swaps and similar
                           agreements and (D) all obligations of such Person
                           guaranteeing or in effect guaranteeing any
                           indebtedness, leases or other obligations of any
                           third party.

                           Net Operating Income ("NOI") - As of any date of
                           determination, with respect to all real property
                           assets owned for at least four quarters, Property
                           Income for the previous four consecutive quarters
                           including the quarter then ended (or such other
                           period as may be specified herein), less Property
                           Expenses for the same period. For real property
                           assets owned less than four full quarters the NOI
                           shall be calculated for the period of ownership, and
                           annualized; provided, however, that if the period of
                           ownership includes August, then August will be
                           disregarded in the annualization calculation. The NOI
                           shall be reduced by a capital expenditure reserve of
                           not less than $125 per bed.

                           Property Asset Value - During the first 12 months
                           immediately following acquisition of a property in
                           the Collateral Pool, the lesser of (a) the
                           "as-stabilized" value contained in appraisals meeting
                           the Credit Agreement requirements, OR (b) the
                           purchase price of such property (in the case of
                           portfolio acquisitions, established as the property's
                           pro rata portion of the total acquisition price, as
                           determined by the property's proportion of

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       12
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

                           portfolio NOI); thereafter, the "as-is" value
                           contained in current appraisals meeting the Credit
                           Agreement requirements.

                           Property Expenses - When used with respect to any
                           real property asset, the costs of operating such
                           asset, including, without limitation, taxes,
                           insurance, three percent (3%) property management
                           fee, repairs and maintenance, but excluding
                           depreciation, amortization, and Recurring Interest
                           Expense, calculated, in each case, in accordance with
                           GAAP.

                           Property Income - When used with respect to any real
                           property asset, revenues therefrom (including,
                           without limitation, lease termination fees
                           appropriately amortized to the extent there is no new
                           tenant in the space for which the lease termination
                           fee was paid), calculated, in each case, in
                           accordance with GAAP.

                           Recurring Interest Expense - Measured as of the last
                           day of each calendar month, an amount equal to
                           interest (whether accrued, paid or capitalized)
                           actually payable (without duplication) by the
                           Borrower and the Guarantor.

                           Required Lenders - For the purpose of making
                           amendments or waivers to the credit agreement or
                           related documents, approval by Lenders whose
                           commitments under the Facility aggregate 66 2/3 % of
                           the Facility will be required. However, unless agreed
                           to by all Lenders, no amendment or waiver shall
                           increase the principal amount, reduce the rate of
                           interest or fees, postpone the scheduled payment of
                           any principal, interest or fees, or change the
                           definition of Required Lenders.

                           Total Asset Value - (a) for properties in the
                           Collateral Pool, the aggregate Property Asset Value,
                           and (b) for all properties not in the Collateral
                           Pool, Borrower's consolidated NOI from properties not
                           in the Collateral Pool (or Borrower's pro rata share
                           of NOI in the case of a property not wholly owned)
                           divided by a capitalization rate of 8.25%, plus (ii)
                           the amount of cash and cash equivalents, plus (iii)
                           undepreciated book value of Assets Under Development
                           and unimproved land. For properties owned for less
                           than four quarters, NOI from such property shall not
                           be used, and instead the purchase price of such
                           property shall be included in the calculation of
                           Total Asset Value.

                           Total Indebtedness - Means Indebtedness of REIT,
                           Borrower and its subsidiaries on a consolidated
                           basis, plus the pro-rata share of Indebtedness of
                           joint venture investment affiliates (as determined in
                           accordance with GAAP).

                           Total Leverage Ratio - Total Indebtedness divided by
                           Total Asset Value.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       13
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

ANY OR ALL OF THE TERMS OF THIS TERM SHEET SHALL NOT BE DISCLOSED TO ANY PERSON
OTHER THAN EMPLOYEES, ATTORNEYS OR ACCOUNTANTS OF THE BORROWER, IN EACH CASE, TO
WHOM IT IS NECESSARY TO DISCLOSE THE INFORMATION (AND WHOM, IN EACH CASE, SHALL
BE MADE AWARE OF THIS PROMISE NOT TO DISCLOSE) OR AS MAY BE REQUIRED BY LAW OR
ANY COURT OR REGULATORY AGENCY HAVING JURISDICTION OVER BORROWER.

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       14
<PAGE>

EDUCATION REALTY TRUST                                      DECEMBER 2004
================================================================================

PRICING SCHEDULE

Interest Rate

<Table>
<Caption>
                                                                               BASE RATE
LEVEL               TOTAL LEVERAGE RATIO                 LIBOR SPREAD (BPS)   SPREAD (BPS)
-----               --------------------                 ------------------   ------------
<S>     <C>                                              <C>                   <C>
  1     less than or equal to 45%                                 150               25
  2     greater than 45% and less than or equal to 50%            175               50
  3     greater than 50% and less than or equal to 60%            200               75
  4     greater than 60%                                          225              100
</Table>

Unused Fee

<Table>
<Caption>
RATIO OF LOAN OUTSTANDINGS TO
    AGGREGATE COMMITMENT           FEE (BPS)
-----------------------------      ---------
<S>                                <C>
less than 50%                          25
greater than or equal to 50%           20
</Table>

================================================================================
J.P. MORGAN SECURITIES INC.                                 UBS SECURITIES LLC

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]