Document:

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                                                                   Exhibit 10.25

                              EMPLOYMENT AGREEMENT
                                     BETWEEN
                               SHELLEY D. SCHORSCH
                                       AND
                            FIRST STATES GROUP, L.P.

          This Employment Agreement (the "Agreement"), dated as of May 15, 2003
("Effective Date"), between First States Group, L.P., a Delaware limited
partnership (the "Company"), and Shelley D. Schorsch (the "Executive"):

          WHEREAS, American Financial Realty Trust, a Maryland real estate
investment trust (the "REIT"), is a limited partner and the sole owner of the
general partner of the Company;

          WHEREAS, this Agreement amends and restates the Employment Agreement
between the REIT (which assigned that agreement to the Company) and the
Executive, dated September 10, 2002 (the "Original Agreement"); and

          WHEREAS, the Company wishes to continue to employ the Executive in the
capacities and on the terms and conditions set out below, and the Executive has
agreed to continue such employment, in the capacities and on the terms and
conditions set forth below.

          NOW, THEREFORE, the Company and the Executive, in consideration of the
respective covenants set out below, hereby agree as follows:

     1. EMPLOYMENT.

          (a) POSITIONS. The Executive shall be employed by the Company as
Senior Vice President - Corporate Affairs. The Executive shall also be an
officer of the REIT as its Senior Vice President - Corporate Affairs.

          (b) DUTIES. The Executive shall report to the Chief Executive Officer
of the Company (the "Chief Executive Officer") and her principal employment
duties and responsibilities shall be those duties and responsibilities customary
for this position as are assigned by the Chief Executive Officer or the Board of
Trustees of the REIT (the "Board").

          (c) EXTENT OF SERVICES. Except for illnesses and vacation periods, the
Executive shall devote a substantial majority of her business time and attention
and her best efforts to the performance of her duties and responsibilities under
this Agreement. Notwithstanding the foregoing, Executive (i) shall be permitted
to continue to manage, operate and devote time and attention to those properties
and businesses she owned, operated or controlled at the time of the 144A
Offering (collectively referred to herein as the "Excluded Businesses"), (ii)
may make any passive investment where she is not obligated or required to, and
shall not in fact, devote any managerial efforts, (iii) may participate in
charitable, academic or community activities, and in trade or professional
organizations, or (iv) may hold directorships in other companies consistent with
the Company's conflict of interest policies and corporate governance guidelines
as in effect from time to time.

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     2. TERM. This Agreement shall be effective as of the Effective Date and
shall continue in full force and effect thereafter for a term of three (3) years
following the Effective Date (the "Initial Term"), and shall be automatically
extended for an additional one (1) year term at the end of the Initial Term, and
an additional one (1) year term on each one-year anniversary of the one (1) year
term (the last day of each such term is referred to herein as a "Term Date"),
unless either party terminates this Agreement not later than sixty (60) days
prior to a Term Date by providing written notice to the other party of such
party's intent not to renew, or it is sooner terminated pursuant to Section 7.
For purposes of this Agreement, "Term" shall mean the actual duration of the
Executive's employment hereunder, taking into account any extensions pursuant to
this Section 2 or early termination of employment pursuant to Section 7.

     3. BASE SALARY. The Company shall pay the Executive a base salary annually
(the "Base Salary"), which shall be payable in periodic installments according
to the Company's normal payroll practices. The initial Base Salary shall be
$125,000. The Board or the Compensation and Human Resources Committee of the
REIT (the "Compensation Committee") shall review the Base Salary at least once a
year to determine whether the Base Salary should be increased effective January
1 of any year during the Term; provided, however, that on January 1, 2004, the
initial Base Salary shall be increased to $132,500, and on each January 1
thereafter during the Term, the Base Salary shall be increased by a minimum
positive amount equal to the Base Salary in effect on January 1 of the prior
year multiplied by the percentage increase in the Consumer Price Index for such
year. The amount of the increase shall be determined before March 31 of each
year and shall be retroactive to January 1. The Base Salary, including any
increases, shall not be decreased during the Term. For purposes of this
Agreement, the term "Base Salary" shall mean the amount established and adjusted
from time to time pursuant to this Section 3.

     4. INCENTIVE AWARDS.

          (a) ANNUAL INCENTIVE BONUS. The Executive shall be entitled to receive
an annual cash incentive bonus for each fiscal year during the Term of this
Agreement consistent with a bonus policy adopted by the Compensation Committee
(the "Bonus Policy"). For the period beginning on the Effective Date and ending
on December 31, 2002, if the Executive or the Company, as the case may be,
satisfies the performance criteria contained in such Bonus Policy for the 2002
fiscal year, the Executive shall receive an annual incentive bonus in an amount
equal to two (2) times her Base Salary, with her Base Salary for this purpose
being pro rated and adjusted to reflect the short fiscal year. Beginning January
1, 2003, and for each year thereafter, if Executive or the Company, as the case
may be, satisfies the performance criteria contained in such Bonus Policy for a
fiscal year, she shall receive an annual incentive bonus of up to two (2) times
her Base Salary, as in effect for such fiscal year, as recommended by the Chief
Executive Officer and subject to approval by the Compensation Committee. If
Executive or the Company, as the case may be, fails to satisfy the performance
criteria contained in such Bonus Policy for a fiscal year, she may be eligible
to receive an incentive bonus for such fiscal year, in such amount as is
recommended by the Chief Executive Officer and subject to approval by the
Compensation Committee. Beginning January 1, 2004, the Bonus Policy shall
contain both individual and group goals established by the Compensation
Committee. The annual incentive bonus shall be paid to the Executive no later
than thirty (30) days after the date the Compensation Committee approves the
annual incentive bonus payable to the Executive for such fiscal year. For
purposes

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of this Agreement, the term "Incentive Bonus" shall mean the amount established
pursuant to this Section 4(a).

          (b) OUTPERFORMANCE PLAN BONUS. The REIT has established the 2003
Outperformance Plan (the "OPP") as an incentive compensation plan for key
employees with awards determined based on the annual and the three-year total
return to shareholders of the REIT. The Executive shall be eligible to
participate in the OPP in an amount as determined by the Compensation Committee.

     5. STOCK BASED AWARDS.

          (a) 2002 EQUITY INCENTIVE PLAN OPTION GRANTS. The REIT has established
the 2002 Equity Incentive Plan ("Equity Incentive Plan"). The Executive shall be
eligible to receive future option grants as recommended by the Chief Executive
Officer, subject to review and approval by the Compensation Committee.

          (b) 2002 EQUITY INCENTIVE PLAN RESTRICTED SHARE AWARDS. The Equity
Incentive Plan provides for the issuance of Common Shares as restricted Common
Shares ("Restricted Share Grants") to the extent that such Common Shares are
available thereunder. The Executive shall be eligible to receive Restricted
Share Grants as recommended by the Chief Executive Officer, subject to
Compensation Committee review and approval. Awards of Restricted Share Grants
shall be on the following terms: vesting at the rate of 33.33% of the underlying
Common Shares on the one-year anniversary of the effective date of the grant of
Common Shares as Restricted Share Grants and 8.33% of the underlying Common
Shares on the last day of each fiscal quarter thereafter until fully vested;
provided, however, that the Executive will be 100% vested and all restrictions
will lapse upon (i) a Change in Control (as defined herein), (ii) a termination
by the Company without Cause (as defined herein), (iii) a termination by the
Executive for Good Reason (as defined herein), (iv) her death, (v) her becoming
Permanently Disabled (as defined herein), or (vi) the Company's failure to renew
this Agreement. The Executive will forfeit all unvested Restricted Share Grants
if she is terminated for Cause and will forfeit all unvested Restricted Share
Grants if she voluntarily terminates her employment with the Company for other
than Good Reason. The Common Shares issued as Restricted Share Grants will have
voting and dividend rights, and, following the restriction period, shall be
registered and fully transferable by the Executive.

     6. BENEFITS.

          (a) VACATION. The Executive shall be entitled to eight (8) weeks of
vacation per full calendar year. The Executive shall be entitled to cash in lieu
of any unused vacation time.

          (b) SICK AND PERSONAL DAYS. The Executive shall be entitled to sick
and personal days on an as needed basis.

          (c) EMPLOYEE BENEFITS.

               (i) PARTICIPATION IN EMPLOYEE BENEFIT PLANS. The Executive and
her spouse and eligible dependents, if any, and their respective designated
beneficiaries

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where applicable, will be eligible for and entitled to participate in any
Company sponsored employee benefit plans, including but not limited to benefits
such as group health, dental, accident, disability insurance, group life
insurance, and a 401(k) plan, as such benefits may be offered from time to time,
on a basis no less favorable than that applicable to other executives of the
Company.

               (ii) DISABILITY INSURANCE. The Company shall maintain, at its
cost, supplemental renewable long-term disability insurance as agreed to by the
Company and the Executive.

          (d) OTHER BENEFITS.

               (i) ANNUAL PHYSICAL. The Company shall provide, at its cost, a
medical examination for the Executive on an annual basis by a licensed physician
in the Philadelphia, Pennsylvania area selected by the Executive.

               (ii) CAR ALLOWANCE. The Company shall pay Executive a monthly car
allowance as determined by the Chief Executive Officer provided such allowance
is consistent with amounts paid to other similarly situated executives of the
Company and is not less than $750.00 per month.

               (iii) DIRECTORS AND OFFICERS INSURANCE. During the Term and the
Severance Period, the Executive shall be entitled to directors and officers
insurance coverage for her acts and omissions while an officer and director of
the Company and the REIT on a basis no less favorable to her than the coverage
provided to current officers and trustees.

               (iv) EXPENSES, OFFICE AND SECRETARIAL SUPPORT. The Executive
shall be entitled to reimbursement of all reasonable expenses, in accordance
with the Company's policy as in effect from time to time and on a basis no less
favorable than that applicable to other executives of the Company, including,
without limitation, telephone, reasonable travel and reasonable entertainment
expenses incurred by the Executive in connection with the business of the
Company, promptly upon the presentation by the Executive of appropriate
documentation. The Executive shall also be entitled to appropriate office space,
administrative support, and such other facilities and services as are suitable
to the Executive's positions and adequate for the performance of the Executive's
duties.

     7. TERMINATION. The employment of the Executive by the Company pursuant to
this Agreement shall terminate upon the occurrence of any of the following:

          (a) DEATH OR PERMANENT DISABILITY. Immediately upon death or Permanent
Disability of the Executive. As used in this Agreement, "Permanent Disability"
shall mean an inability due to a physical or mental impairment to perform the
material services contemplated under this Agreement for a period of six (6)
months, whether or not consecutive, during any 365-day period. A determination
of Permanent Disability shall be made by a physician satisfactory to both the
Executive and the Company, provided that if the Executive and the Company do not
agree on a physician, the Executive and the Company shall each select a
physician and these two together shall select a third physician, whose
determination as to Permanent Disability shall be binding on all parties. The
appointment of one or more individuals

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to carry out the offices or duties of the Executive during a period of the
Executive's inability to perform such duties and pending a determination of
Permanent Disability shall not be considered a breach of this Agreement by the
Company.

          (b) FOR CAUSE. At the election of the Company and subject to the
provisions of this Section 7(b), immediately upon written notice by the Company
to the Executive of her termination for Cause. For purposes of this Agreement,
"Cause" for termination shall be deemed to exist solely in the event of (i) the
conviction of the Executive of, or the entry of a plea of guilty or nolo
contendere by the Executive to, a felony (exclusive of any felony relating to
negligent operation of a motor vehicle and not including a conviction, plea of
guilty or nolo contendere arising solely under a statutory provision imposing
criminal liability upon the Executive on a per se basis due to the Company
offices held by the Executive, so long as any act or omission of the Executive
with respect to such matter was not taken or omitted in contravention of any
applicable policy or directive of the Board, (ii) a willful breach of her duty
of loyalty which is materially detrimental to the Company, (iii) a willful
failure to perform or adhere to explicitly stated duties that are consistent
with the terms of this Agreement, or the Company's reasonable and customary
guidelines of employment or reasonable and customary corporate governance
guidelines or policies, including without limitation any business code of ethics
adopted by the Board, or to follow the lawful directives of the Board (provided
such directives are consistent with the terms of this Agreement), which, in any
such case, continues for thirty (30) days after written notice from the Board to
the Executive, or (iv) gross negligence or willful misconduct in the performance
of the Executive's duties. For purposes of this Section 7(b), no act, or failure
to act, on the Executive's part will be deemed "gross negligence" or "willful
misconduct" unless done, or omitted to be done, by the Executive not in good
faith and without a reasonable belief that the Executive's act, or failure to
act, was in the best interest of the Company. The parties agree that in order to
terminate the Executive pursuant to Subsections (ii) and (iv) hereof, the
Company shall first be required to prove to the reasonable satisfaction of the
Executive that she engaged in improper conduct under these Subsections, and if
the Executive shall not agree with the Company's assessment of her conduct, then
the Executive shall not be terminated until an arbitrator, as provided for in
Section 13(b), has determined that the Executive's conduct constituted improper
conduct under the applicable Subsection.

          (c) WITHOUT CAUSE; WITHOUT GOOD REASONS. At the election of the
Company, without Cause, and at the election of the Executive, without Good
Reason, in either case upon thirty (30) days prior written notice to the
Executive or the Company, as the case may be.

          (d) FOR GOOD REASON. At the election of the Executive, for Good
Reason. For purposes of this Agreement, "Good Reason" shall mean, absent the
Executive's prior written consent, the requirement by the Company that the
principal place of business at which the Executive performs her duties be
changed to a location that is outside of a 50 mile radius of Jenkintown,
Pennsylvania. The parties acknowledge that for these purposes, Executive's
principal place of business will be Jenkintown, Pennsylvania for approximately
36 to 38 weeks per calendar year, and the remainder, as the Executive decides,
will be in Richmond, Virginia and Avalon, New Jersey.

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     8. EFFECTS OF TERMINATION.

          (a) TERMINATION ON PERMANENT DISABILITY; BY THE COMPANY WITHOUT CAUSE;
BY THE EXECUTIVE FOR GOOD REASON. If the employment of the Executive should
terminate by reason of her becoming Permanently Disabled, a termination by the
Company for any reason other than Cause, or by the Executive for Good Reason,
then the Company shall pay all compensation and benefits for the Executive as
follows:

               (i) any Base Salary, Incentive Bonus, expense reimbursements and
all other compensation related payments that are payable as of her termination
of employment date that are related to her period of employment preceding her
termination date, and

               (ii) the prorated amount of the maximum Incentive Bonus for the
year in which the termination of employment occurs, prorated for the portion of
such year during which the Executive was employed prior to the effective date of
the termination, and

               (iii) the amount equal to her Base Salary at the rate in effect
on the effective date of her termination of employment, that would have been
paid or payable during the three (3) year period immediately following the
effective date of her termination (the "Severance Period").

          The sum of the amount payable under subsections (ii) and (iii) hereof
is referred to herein as her "Severance Payment".

               (iv) The Severance Payment shall be made in a single, lump sum
cash payment before the later of (x) thirty (30) days after the effective date
of the Executive's termination of employment, and (y) the delivery of the signed
Release (as defined below) to the Company and the expiration of the Executive's
statutory period to revoke the Release. With respect to any Severance Payment
attributable to a period after the expiration of 18 calendar months after the
termination of the Executive's employment, such payment shall be reduced for
compensation earned from other employment or self-employment after that date,
and the Executive shall refund to the Company any amount due as a result of such
reduction; provided, however, that there shall be no reduction for amounts
earned or paid to her with respect to the Excluded Businesses.

               (v) The Company shall allow the Executive to continue to
participate during the Severance Period in any and all of the employee benefit
and welfare plans and programs of the Company, excluding the 401(k) plan, in
which the Executive was entitled to participate immediately prior to her
termination, to the same extent and upon the same terms as the Executive
participated in such plans prior to her termination, provided that the
Executive's continued participation is permissible or otherwise practicable
under the general terms and provisions of such benefit plans and programs.
During the Severance Period, the Company shall pay for the Executive's continued
participation in said employee benefit and welfare plans, including but not
limited to premiums for group health, dental, accident, disability insurance,
directors and officers insurance, group life insurance, and her car allowance,
but excluding the 401(k) plan. To the extent that continued participation is
neither permissible nor practicable, the Company shall take such actions as may
be necessary to provide the Executive with substantially

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comparable benefits (without additional cost to the Executive, including any
additional taxes) outside the scope of such plans including, without limitation,
reimbursing the Executive for her costs in obtaining such coverage, such as
COBRA premiums paid by the Executive and/or her eligible dependents. If the
Executive engages in regular employment after her termination of employment
(whether as an executive or as a self-employed person but excluding her
management or operation of the Excluded Business), any employee benefit and
welfare benefits received by the Executive in consideration of such employment
which are similar in nature to the employee benefit and welfare benefits
provided by the Company will relieve the Company of its obligation under this
Section 8(a)(v) to provide comparable benefits to the extent of the benefits so
received.

               (vi) The Executive's stock options awarded under the Equity
Incentive Plan (or any other or successor plan) shall immediately become 100%
vested and she shall have a two-year period following the effective date of her
termination of employment in which to exercise her vested stock options,
including those stock options that vested upon her termination of employment.

               (vii) The Executive's restricted Common Shares awarded under the
Equity Incentive Plan (or any other or successor plan) shall immediately become
100% vested and all restrictions shall lapse.

               (viii) The Executive shall vest in and receive a percentage of
her total OPP allocation for the 3-year term of the OPP (the "OPP Allocation")
equal to (x) the number of complete months the Executive had participated in the
OPP through the effective date of her termination of employment, divided by (y)
36 (representing the total number of months in the OPP term), in lieu of her
scheduled vesting of her OPP Allocation under the OPP. This percentage of her
OPP Allocation would be paid to the Executive (less any cash OPP payments
previously received by the Executive) after the OPP reward is determined at the
end of the OPP plan term.

               (ix) All Severance Payments are contingent on Executive signing a
release of claims, substantially in the form attached hereto as Exhibit A (the
"Release").

          (b) TERMINATION ON DEATH. Upon a termination of employment due to the
Executive's death, the Executive shall become 100% vested in her stock options
and restricted Common Shares awarded under the Equity Incentive Plan. The
Executive's personal representative shall have a one-year period following the
Executive's death in which to exercise her vested stock options, including those
stock options that vested on death. The Company shall pay to the Executive's
personal representative any Base Salary, Incentive Bonus, expense reimbursements
and all other compensation related payments that are payable as of her date of
death and that are related to her period of employment preceding her date of
death, and within 60 days after the Executive's death, shall pay to the
Executive's personal representative the prorated amount of maximum Incentive
Bonus for the year in which the Executive's death occurs, prorated for the
portion of the year during which the Executive was employed prior to her death.

          (c) BY THE COMPANY FOR CAUSE OR BY THE EXECUTIVE WITHOUT GOOD REASON.
In the event that the Executive's employment is terminated by the Company

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for Cause or by the Executive without Good Reason, the Company shall pay the
Executive her Base Salary, Incentive Bonus, expense reimbursements and all other
compensation related payments that are payable as of her termination of
employment date and that are related to her period of employment preceding her
termination date. The Executive shall forfeit all of her unvested options and
restricted Common Shares if she is terminated for Cause and, subject to Section
9(b) below, she shall forfeit all unvested options and restricted Common Shares
if she terminates her employment with the Company without Good Reason.

          (d) TERMINATION OF AUTHORITY. Immediately upon the Executive
terminating or being terminated from her employment with the Company for any
reason, notwithstanding anything else appearing in this Agreement or otherwise,
the Executive will stop serving the functions of her terminated or expired
positions, and shall be without any of the authority or responsibility for such
positions. On request of the Board at any time following her termination of
employment for any reason, the Executive shall resign from the Board if then a
member.

     9. CHANGE OF CONTROL.

          (a) CHANGE OF CONTROL. For purposes of this Agreement, a "Change of
Control" will be deemed to have taken place upon the occurrence of any of the
following events:

               (i) any person, entity or affiliated group, excluding the REIT or
any employee benefit plan of the REIT, acquiring more than 50% of the then
outstanding voting shares of the REIT,

               (ii) the consummation of any merger or consolidation of the REIT
into another company, such that the holders of the voting shares of the REIT
immediately prior to such merger or consolidation is less than 50% of the voting
power of the securities of the surviving company or the parent of such surviving
company,

               (iii) the complete liquidation of the REIT or the sale or
disposition of all or substantially all of the REIT's assets, such that after
the transaction, the holders of the voting shares of the REIT immediately prior
to the transaction is less than 50% of the voting securities of the acquiror or
the parent of the acquiror, or

               (iv) a majority of the Board of the REIT votes in favor of a
decision that a Change of Control has occurred.

          (b) CERTAIN BENEFITS UPON A CHANGE OF CONTROL. In the event of a
Change of Control, the Executive shall become 100% vested in the stock options
and restricted Common Shares awarded under the Equity Incentive Plan (or any
other or successor plan) and if the Executive voluntarily terminates her
employment without Good Reason after the Change of Control, then the Executive
shall have a one-year period following the Change of Control in which to
exercise her vested stock options, including those stock options that vested
upon the Change of Control.

          (c) EXCISE TAX.

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               (i) In the event that any payment or benefit received or to be
received by the Executive in connection with a change in control or a
termination of the Executive's employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any
person whose actions result in a change in control or any person affiliated with
the Company or such person) (all such payments and benefits being hereinafter
called "Total Payments"), such that the Executive will be subject (in whole or
in part) to the excise tax imposed under Code Section 4999 ("Excise Tax") on
such payments and benefits, then the Company shall pay to the Executive an
additional amount (the "Gross-Up Payment") such that the net amount retained by
the Executive, after deduction of the Excise Tax and any federal, state and
local tax on the Gross-Up Payment, will be equal to the Total Payment. For
purposes of determining the amount of the Gross-Up Payment, the Executive shall
be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be made
and state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Executive's residence on such date, net of the maximum
deduction in federal income taxes which could be obtained from deduction of such
state and local taxes.

               (ii) The Executive or the Company may request, prior to the time
any payments under this Agreement are made, a determination of whether any or
all of the Total Payments will be subject to the Excise Tax and, if so, the
amount of such Excise Tax and the federal, state and local income tax imposed on
the Gross-Up Payment. If such a determination is requested, it shall be made
promptly, at the Company's expense, by tax counsel selected by the Executive and
approved by the Company (with such approval not being unreasonably withheld),
and such determination shall be conclusive and binding on both parties. The
Company agrees to provide any information reasonably requested by such tax
counsel. Tax counsel may engage accountants or other experts, at the Company's
expense, to the extent deemed necessary or advisable for them to reach a
determination. For these purposes, the term "tax counsel" shall mean a law firm
with expertise in federal income tax matters.

               (iii) In the event that the Excise Tax is subsequently determined
to be less than the amount taken into account hereunder, the Executive will
repay to the Company, at the time that the amount of such reduction in Excise
Tax is finally determined, the portion of the Gross-Up Payment attributable to
such reduction plus that portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state and local income tax imposed on the Gross-Up
Payment, without any interest thereon. In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder, the Company will
make an additional Gross-Up Payment in respect of such excess and in respect of
any portion of the Excise Tax with respect to which the Company had not
previously made a Gross-Up Payment (plus any interest, penalties or additions
payable by the Executive with respect to such excess and such portion) at the
time that the amount of such excess is finally determined, without any interest
thereon.

               (iv) Each party agrees to notify the other party, in writing, of
any claim that, if successful, would require the payment by the Company of a
Gross-Up Payment or might entitle the Company to a refund of all or part of any
previous Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten (10) business days after the Executive or
Company is informed in writing of such claim or otherwise becomes aware of such
claim. If notice of the claim arose as a result of a claim made against the
Executive by a taxing

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authority, Executive shall not pay such claim prior to the expiration of the
thirty (30) day period following the date on which she gives notice to the
Company. If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall: (A) give the Company any information reasonably requested by the Company
relating to such claim, (B) take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with respect to
such claim by an attorney selected by the Executive and approved by the Company
(with such approval not being unreasonably withheld), (C) cooperate with the
Company in good faith in order to effectively contest such claim, and (D) permit
the Company to reasonably participate in any proceedings relating to such claim.
The Company shall bear and pay directly all costs and expenses (including legal
fees and additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment of costs and
expenses.

               (v) Notwithstanding the foregoing, the Company shall control all
audits and proceedings taken in connection with any claim, audit or proceeding
involving Excise Taxes or Gross-Up Payments and, at its sole option, may pursue
or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of any such claim, audit or
proceeding and may, at its sole option, either direct the Executive to pay the
tax claimed and sue for a refund or contest the tax in any permissible manner,
and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided, however, that if the
Company directs the Executive to pay such tax and sue for a refund, the Company
shall advance the amount of such payment to the Executive, (including interest
or penalties with respect thereto) and shall indemnify and hold the Executive
harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance. The Company
shall be required to consult with and keep the Executive fully apprised of
developments and actions being considered or taken with respect to such claim,
audit or proceeding. The Company's control of the contest shall be limited to
issues with respect to which such a Gross-Up Payment would be payable or
refundable hereunder and the Executive shall be entitled to settle or contest,
as the case may be, any other issue. Each party agrees to keep the other party
fully apprised of developments concerning such claim, audit or proceeding and to
cooperate with the other in good faith in order to effectively resolve such
claim, audit or proceeding.

               (vi) For purposes of this Subsection (c), a determination of
whether a payment is subject to Excise Taxes, including but not limited to, a
determination of change in control, shall be made pursuant to Code Section 280G.

     10. CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges
that certain assets of the Company constitute Confidential Information. The term
"Confidential Information" as used in this Agreement shall mean all information
which is known only to the Executive or the Company, other employees of the
Company, or others in a confidential relationship with the Company, and relating
to the Company's business including, without

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limitation, information regarding clients, customers, pricing policies, methods
of operation, proprietary Company programs, sales products, profits, costs,
markets, key personnel, formulae, product applications, technical processes, and
trade secrets, as such information may exist from time to time, which the
Executive acquired or obtained by virtue of work performed for the Company, or
which the Executive may acquire or may have acquired knowledge of during the
performance of said work. The Executive shall not, during or after the Term,
disclose all or any part of the Confidential Information to any person, firm,
corporation, association, or any other entity for any reason or purpose
whatsoever, directly or indirectly, except as may be required pursuant to her
employment hereunder, unless and until such Confidential Information becomes
publicly available other than as a consequence of the breach by the Executive of
her confidentiality obligations hereunder by law or in any judicial
administrative proceeding (in which case, the Executive shall provide the
Company with notice). In the event of the termination of her employment, whether
voluntary or involuntary and whether by the Company or the Executive, the
Executive shall deliver to the Company all documents and data pertaining to the
Confidential Information and shall not take with her any documents or data of
any kind or any reproductions (in whole or in part) or extracts of any items
relating to the Confidential Information. The Company acknowledges that prior to
her employment with the Company, the Executive has lawfully acquired extensive
knowledge of the industries and businesses in which the Company engages in
business, and that the provisions of this Section 10 are not intended to
restrict the Executive's use of such previously acquired knowledge.

          In the event that the Executive receives a request or is required (by
deposition, interrogatory, request for documents, subpoena, civil investigative
demand or similar process) to disclose all or any part of the Confidential
Information, the Executive agrees to (a) promptly notify the Company in writing
of the existence, terms and circumstances surrounding such request or
requirement, (b) consult with the Company on the advisability of taking legally
available steps to resist or narrow such request or requirement, and (c) assist
the Company in seeking a protective order or other appropriate remedy. In the
event that such protective order or other remedy is not obtained or that the
Company waives compliance with the provisions hereof, the Executive shall not be
liable for such disclosure unless disclosure to any such tribunal was caused by
or resulted from a previous disclosure by the Executive not permitted by this
Agreement.

     11. NON-COMPETITION AND NONSOLICITATION. During the Term and for a period
of 18 calendar months after the termination of the Executive's employment (the
"Noncompete Period"), the Executive shall not, directly or indirectly, either as
a principal, agent, employee, employer, stockholder, partner or in any other
capacity whatsoever: (a) engage or assist others engaged, in whole or in part,
in any business which is engaged in a business or enterprise that is
substantially similar to the business of the Company that the Company was
engaged in during the period of the Executive's employment with the Company, or
(b) without the prior consent of the Board, employ or solicit the employment of,
or assist others in employing or soliciting the employment of, any individual
employed by the Company at any time while the Executive was also so employed;
provided, however, that the provisions of this Section 11 shall not apply in the
event the Company materially breaches this Agreement or the Release.

                                       11

<PAGE>

          Nothing in this Section 11 shall impede, restrict or otherwise
interfere with the Executive's management and operation of the Excluded
Businesses. Further, nothing in this Section 11 shall prohibit Executive from
making any passive investment in a public company, or where she is the owner of
five percent (5%) or less of the issued and outstanding voting securities of any
entity, provided such ownership does not result in her being obligated or
required to devote any managerial efforts.

          The Executive agrees that the restraints imposed upon her pursuant to
this Section 11 are necessary for the reasonable and proper protection of the
Company and its subsidiaries and affiliates, and that each and every one of the
restraints is reasonable in respect to subject matter, length of time and
geographic area. The parties further agree that, in the event that any provision
of this Section 11 shall be determined by any court of competent jurisdiction to
be unenforceable by reason of its being extended over too great a time, too
large a geographic area or too great a range of activities, such provision shall
be deemed to be modified to permit its enforcement to the maximum extent
permitted by law.

     12. INTELLECTUAL PROPERTY. During the Term, the Executive shall promptly
disclose to the Company or any successor or assign, and grant to the Company and
its successors and assigns without any separate remuneration or compensation
other than that received by her in the course of her employment, her entire
right, title and interest in and to any and all inventions, developments,
discoveries, models, or any other intellectual property of any type or nature
whatsoever ("Intellectual Property"), whether developed by her during or after
business hours, or alone or in connection with others, that is in any way
related to the business of the Company, its successors or assigns. This
provision shall not apply to books or articles authored by the Executive during
non-work hours, consistent with her obligations under this Agreement, so long as
such books or articles (a) are not funded in whole or in part by the Company,
and (b) do not contain any Confidential Information or Intellectual Property of
the Company. The Executive agrees, at the Company's expense, to take all steps
necessary or proper to vest title to all such Intellectual Property in the
Company, and cooperate fully and assist the Company in any litigation or other
proceedings involving any such Intellectual Property.

     13. DISPUTES.

          (a) EQUITABLE RELIEF. The Executive acknowledges and agrees that upon
any breach by the Executive of her obligations under Sections 10, 11, or 12
hereof, the Company will have no adequate remedy at law, and accordingly will be
entitled to specific performance and other appropriate injunctive and equitable
relief.

          (b) ARBITRATION. Excluding only requests for equitable relief by the
Company under Section 13(a), in the event that there is any claim or dispute
arising out of or relating to this Agreement or the breach hereof, and the
parties hereto shall not have resolved such claim or dispute within 60 days
after written notice from one party to the other setting forth the nature of
such claim or dispute, then such claim or dispute shall be settled exclusively
by binding arbitration in Montgomery county, Pennsylvania, in accordance with
the Employment Dispute Resolution Rules of the American Arbitration Association
("Rules"), by an arbitrator mutually agreed upon by the parties hereto or, in
the absence of such agreement, by an arbitrator selected according to such
Rules. Notwithstanding the foregoing, if either the Company or the

                                       12

<PAGE>

Executive shall request, such arbitration shall be conducted by a panel of three
(3) arbitrators, one selected by the Company, one selected by the Executive and
the third selected by agreement of the first two arbitrators, or, in the absence
of such agreement, in accordance with such Rules. Judgment upon the award
rendered by such arbitrator(s) shall be entered in any Court having jurisdiction
thereof upon the application of either party. The parties agree to use their
reasonable best efforts to have such arbitration completed as soon as is
reasonably practicable. Notwithstanding anything herein to the contrary, except
as provided in 13(c) below the losing party shall pay the reasonable costs and
expenses (including reasonable attorney fees and expenses) of the prevailing
party with respect to such arbitration, except the Executive, if she is the
losing party, shall not be required to pay such expenses and costs if the claim
relates to statutory discrimination claims that she would not otherwise be
required to pay if such claim had been brought in a court of competent
jurisdiction.

          (c) LEGAL FEES. The Company shall pay or promptly reimburse the
Executive for the reasonable legal fees and expenses incurred by the Executive
in successfully enforcing or defending any right of the Executive pursuant to
this Agreement, even if the Executive does not prevail on each issue.

     14. INDEMNIFICATION. The Company shall indemnify the Executive, to the
maximum extent permitted by applicable law, against all costs, charges and
expenses incurred or sustained by the Executive, including the cost of legal
counsel selected and retained by the Executive in connection with any action,
suit or proceeding to which the Executive may be made a party by reason of the
Executive being or having been an officer, director, or employee of the Company
or the REIT.

     15. COOPERATION IN FUTURE MATTERS. The Executive hereby agrees that for a
period of 18 months following her termination of employment she shall cooperate
with the Company's reasonable requests relating to matters that pertain to the
Executive's employment by the Company, including, without limitation, providing
information or limited consultation as to such matters, participating in legal
proceedings, investigations or audits on behalf of the Company, or otherwise
making himself reasonably available to the Company for other related purposes.
Any such cooperation shall be performed at scheduled times taking into
consideration the Executive's other commitments, and the Executive shall be
compensated at a reasonable hourly or per diem rate to be agreed upon by the
parties to the extent such cooperation is required on more than an occasional
and limited basis. The Executive shall not be required to perform such
cooperation to the extent it conflicts with any requirements of exclusivity of
services for another employer or otherwise, nor in any manner that in the good
faith belief of the Executive would conflict with her rights under or ability to
enforce this Agreement.

     16. GENERAL.

          (a) NOTICES. All notices and other communications hereunder shall be
in writing or by written telecommunication, and shall be deemed to have been
duly given if delivered personally or if sent by overnight courier or by
certified mail, return receipt requested, postage prepaid or sent by written
telecommunication or telecopy, to the relevant address set forth below, or to
such other address as the recipient of such notice or communication shall have
specified in writing to the other party hereto, in accordance with this Section
16(a).

                                       13

<PAGE>

     If to the Company, to:   First States Group, L.P.
                              1725 The Fairway
                              Jenkintown, PA 19046
                              Attn: Nicholas S. Schorsch, President and
                                    Chief Executive Officer
                              Facsimile: 215-887-2585

     If to Executive, at her last residence shown on the records of the Company.

Any such notice shall be effective (i) if delivered personally, when received,
(ii) if sent by overnight courier, when receipted for, (iii) if mailed, five (5)
days after being mailed, and (iv) on confirmed receipt if sent by written
telecommunication or telecopy, provided a copy of such communication is sent by
regular mail, as described above.

          (b) SEVERABILITY. If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any respect under any law, the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired.

          (c) WAIVERS. No delay or omission by either party hereto in exercising
any right, power or privilege hereunder shall impair such right, power or
privilege, nor shall any single or partial exercise of any such right, power or
privilege preclude any further exercise thereof or the exercise of any other
right, power or privilege.

          (d) COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. In making proof of this
Agreement, it shall not be necessary to produce or account for more than one
such counterpart.

          (e) ASSIGNS. This Agreement shall be binding upon and inure to the
benefit of the Company's successors and the Executive's personal or legal
representatives, executors, administrators, heirs, distributees, devisees and
legatees. This Agreement shall not be assignable by the Executive, it being
understood and agreed that this is a contract for the Executive's personal
services. This Agreement shall not be assignable by the Company except that the
Company shall assign it in connection with a transaction involving the
succession by a third party to all or substantially all of the Company's
business and/or assets (whether direct or indirect and whether by purchase,
merger, consolidation, liquidation or otherwise). When assigned to a successor,
the assignee shall assume this Agreement and expressly agree to perform this
Agreement in the same manner and to the same extent as the Company would be
required to perform it in the absence of such an assignment. For all purposes
under this Agreement, the term "Company" shall include any successor to the
Company's business and/or assets that executes and delivers the assumption
agreement described in the immediately preceding sentence or that becomes bound
by this Agreement by operation of law.

          (f) ENTIRE AGREEMENT. This Agreement contains the entire understanding
of the parties, supersedes all prior agreements and understandings, including
the Original Agreement, whether written or oral, relating to the subject matter
hereof and may not be

                                       14

<PAGE>

amended except by a written instrument hereafter signed by the Executive and the
Chief Executive Officer or a duly authorized representative of the Board (other
than the Executive).

          (g) GOVERNING LAW. This Agreement and the performance hereof shall be
construed and governed in accordance with the laws of the Commonwealth of
Pennsylvania, without giving effect to principles of conflicts of law.

          (h) CONSTRUCTION. The language used in this Agreement shall be deemed
to be the language chosen by the parties to express their mutual intent, and no
rule of strict construction shall be applied against any party. The headings of
sections of this Agreement are for convenience of reference only and shall not
affect its meaning or construction. Whenever any word is used herein in one
gender, it shall be construed to include the other gender, and any word used in
the singular shall be construed to include the plural in any case in which it
would apply and vice versa.

          (i) PAYMENTS AND EXERCISE OF RIGHTS AFTER DEATH. Any amounts payable
hereunder after the Executive's death shall be paid to the Executive's
designated beneficiary or beneficiaries, whether received as a designated
beneficiary or by will or the laws of descent and distribution. The Executive
may designate a beneficiary or beneficiaries for all purposes of this Agreement,
and may change at any time such designation, by notice to the Company making
specific reference to this Agreement. If no designated beneficiary survives the
Executive or the Executive fails to designate a beneficiary for purposes of this
Agreement prior to her death, all amounts thereafter due hereunder shall be
paid, as and when payable, to her spouse, if she survives the Executive, and
otherwise to her estate.

          (j) CONSULTATION WITH COUNSEL. The Executive acknowledges that she has
had a full and complete opportunity to consult with counsel or other advisers of
her own choosing concerning the terms, enforceability and implications of this
Agreement, and that the Company has not made any representations or warranties
to the Executive concerning the terms, enforceability and implications of this
Agreement other than as are reflected in this Agreement.

          (k) WITHHOLDING. Any payments provided for in this Agreement shall be
paid net of any applicable income tax withholding required under federal, state
or local law.

          (l) CONSUMER PRICE INDEX. For purposes of this Agreement, the term
"CPI" refers to the Consumer Price Index as published by the Bureau of Labor
Statistics of the United States Department of Labor, U.S. City Average, All
Items for Urban Wage Earners and Clerical Workers (1982-1984=100). If the CPI is
hereafter converted to a different standard reference base or otherwise revised,
the determination of the CPI adjustment shall be made with the use of such
conversion factor, formula or table for converting the CPI, as may be published
by the Bureau of Labor Statistics, or, if the bureau shall no longer publish the
same, then with the use of such conversion factor, formula or table as may be
published by an agency of the United States, or failing such publication, by a
nationally recognized publisher of similar statistical information.

          (m) SURVIVAL. The provisions of Sections 8, 9, 10, 11, 12, 13, 14 and
15 shall survive the termination of this Agreement.

                                       15

<PAGE>

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

FIRST STATES GROUP, L.P.                        SHELLEY D. SCHORSCH

By:   First States Group, LLC
      Its general partner

   By:
       --------------------------------------   --------------------------------
       Name:  Glenn Blumenthal
       Title: Senior Vice President - Asset
                 Management and Chief
                 Operating Officer

Dated: May 15, 2003                             Dated: May 15, 2003

GUARANTEE:

For good and valuable consideration, including the Executive's agreement to
serve as an officer of American Financial Realty Trust, the obligations of First
States Group, L.P. under this Employment Agreement, dated May 15, 2003, with
Shelley D. Schorsch, shall be guaranteed by American Financial Realty Trust.

AMERICAN FINANCIAL REALTY TRUST

By:
    ------------------------------------
    Name:  Glenn Blumenthal
    Title: Senior Vice President - Asset
              Management and Chief
              Operating Officer

Dated: May 15, 2003

                                       16

<PAGE>

                                    EXHIBIT A

                               RELEASE AND WAIVER

          This release and waiver (the "Termination Release") is made as of the
    day of           , 200   by                        (the "Executive").
---        ----------     --    ----------------------

          WHEREAS, the Executive and First States Group, L.P. (the "Company")
have entered into an Employment Agreement (the "Agreement") dated as of May 15,
2003 that provides for certain compensation and severance amounts upon her
termination of employment; and

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

          WHEREAS, the Executive has incurred a termination of employment
effective as of          , 20  ; and
                ---------    --

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

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

          1. RELEASE. In consideration for the payments to be made pursuant to
the Agreement:

          (a) Executive knowingly and voluntarily releases, acquits and forever
discharges the Company, and its respective owners, parents, stockholders,
predecessors, successors, assigns, agents, directors, officers, employees,
representatives, divisions and subsidiaries (collectively, the "Releasees") from
any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, damages, causes of action, suits, rights, costs, losses, debts and
expenses of any nature whatsoever, known or unknown, suspected or unsuspected,
foreseen or unforeseen, matured or unmatured, against them which the Executive
or any of her heirs, executors, administrators, successors and assigns
("Executive Persons") ever had, now has or at any time hereafter may have, own
or hold by reason of any matter, fact, or cause whatsoever from the beginning of
time up to and including the date of this Termination Release, including without
limitation all claims for salary, bonuses, severance pay, vacation pay or any
benefits arising under the Employee Retirement Income Security Act of 1974, as
amended; any claims of sexual harassment, or discrimination based upon race,
color, national origin, ancestry, religion, marital status, sexual orientation,
citizenship status, medical condition or disability under Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the American with Disabilities
Act, Section 1981 of the Civil Rights Acts of 1866 and 1871, the Equal Pay Act,
The Rehabilitation Act, The Consolidated Omnibus Budget Reconciliation Act, as
amended, The Fair Labor Standards Act, as amended, and any other federal, state
or local law prohibiting discrimination in

                                      A-1

<PAGE>

employment; any claims of age discrimination under the Age Discrimination in
Employment Act, as amended by the Older Workers Benefit Protection Act, or under
any other federal, state or local law prohibiting age discrimination; claims of
breach of implied or express contract, breach of promise, misrepresentation,
negligence, fraud, estoppel, defamation, infliction of emotional distress,
violation of public policy, wrongful or constructive discharge, or any other
employment-related tort; any claim for costs, fees, or other expenses, including
attorneys fees; and all claims under any other federal, state or local laws
relating to employment, except in any case to the extent such release is
prohibited by applicable federal, state and/or local law.

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

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

          2. CONFIRMATION OF OBLIGATIONS. Executive hereby confirms and agrees
to her continuing obligation under the Agreement after termination of employment
not to directly or indirectly disclose to third parties or use any Confidential
Information (as defined in the Agreement) that she may have acquired, learned,
developed, or created by reason of her employment with the Company.

          3. CONFIDENTIALITY; NO COMPETITION; NONSOLICITATION. Executive hereby
confirms and agrees to her confidentiality, nonsolicitation and non-competition
obligations under the Agreement.

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

                                      A-2

<PAGE>

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

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

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

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

                                      A-3<PAGE>

                                                                   Exhibit 10.27

                         AMERICAN FINANCIAL REALTY TRUST

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                       EFFECTIVE AS OF SEPTEMBER 10, 2002

                       AS AMENDED AND RESTATED MAY 7, 2003

<PAGE>

                         AMERICAN FINANCIAL REALTY TRUST
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     This is the American Financial Realty Trust Supplemental Executive
Retirement Plan (the "Plan"), which American Financial Realty Trust, a Maryland
real estate investment trust (the "Company") has adopted effective as of
September 10, 2002, and as amended and restated as of May 7, 2003. The Plan is
intended to provide specified benefits to a select group of Employees (as
defined below) who contribute materially to the continued growth, development
and future business success of the Company. This Plan is intended to be a
nonqualified, unfunded plan for tax purposes and for purposes of Title I of
ERISA (as defined below). In accordance with ERISA, participation in the Plan is
limited to a select group of management or highly compensated Employees.

                                    ARTICLE I
                                   DEFINITIONS

     When used herein, the following shall have the meanings set forth below
unless the context clearly indicates otherwise:

     1.1 "Actuarial Equivalent" means the actuarially determined equivalence of
a payment or a benefit hereunder, based on the 1983 GAM Mortality Table and
interest using the rate on 30-year Treasury Securities (or such other rate as in
effect under section 417(e)(3)(A)(ii)(II) of the Internal Revenue Code of 1986,
as amended) at the time the determination is made.

     1.2 "Average Annual Compensation" means the Participant's average annual
compensation from the Company, including his base salary, all bonuses and
incentive compensation paid to him, for the three (3) years out of the most
recent ten (10) years that results in the highest average amount. In the event
the Participant has been employed by the Company for three (3) years or less,
then his annualized average compensation for his actual period of employment
shall be used to determine his Average Annual Compensation.

     1.3 "Beneficiary" or "Beneficiaries" shall mean the person or persons,
including a trustee or personal representative, last designated in writing by a
Participant in accordance with procedures established by the Committee to
receive the benefits specified hereunder in the event of the Participant's
death. No beneficiary designation shall become effective until it is received
and acknowledged by the Committee and it must be on file with the Committee on
the date of the Participant's death to be effective. Any designation shall be
revocable at any time through a written instrument filed by the Participant with
the Committee and the consent of the previous Beneficiary shall not be required.
If the Participant fails to timely designate a beneficiary, then his Beneficiary
shall be his surviving spouse. If there is no surviving spouse, his Beneficiary
shall be his estate (which shall include either the Participant's probate estate
or living trust).

     1.4 "Board" shall mean the Board of Trustees of the Company.

     1.5 "Cause" shall mean, unless defined otherwise in a Participant's
Employment Agreement, (a) the conviction of the Participant of, or the entry of
a plea of guilty or nolo

<PAGE>

contendere by the Participant to, a felony (exclusive of any felony relating to
negligent operation of a motor vehicle and not including a conviction, plea of
guilty or nolo contendere arising solely under a statutory provision imposing
criminal liability upon the Participant on a per se basis due to the Company
offices held by the Participant, so long as any act or omission of the
Participant with respect to such matter was not taken or omitted in
contravention of any applicable policy or directive of the Board), (b) willful
breach of the Participant's duty of loyalty which is materially detrimental to
the Company, (c) willful failure to perform or adhere to explicitly stated
duties that are consistent with the Participant's Employment Agreement, or
reasonable and customary guidelines of employment or reasonable and customary
corporate governance guidelines or policies, including without limitation any
business code of ethics adopted by the Board, or to follow the lawful directives
of the Board (provided such directives are consistent with the Participant's
Employment Agreement) which, in any such case, continues for thirty (30) days
after written notice from the Board to the Participant, or (d) gross negligence
or willful misconduct in the performance of the Participant's duties. For these
purposes, no act, or failure to act, on the Participant's part will be deemed
"gross negligence" or "willful misconduct" unless done, or omitted to be done,
by the Participant not in good faith and without a reasonable belief that the
Participant's act, or failure to act, was in the best interest of the Company.

     1.6 "Change in Control" shall mean, unless defined otherwise in a
Participant's Employment Agreement, the occurrence of any of the following
events: (a) any person, entity or affiliated group, excluding the Company or any
employee benefit plan of the Company, acquiring more than 50% of the then
outstanding voting shares of the Company, (b) the consummation of any merger or
consolidation of the Company into another company, such that the holders of the
voting shares of the Company immediately prior to such merger or consolidation
is less than 50% of the voting power of the securities of the surviving company
or the parent of such surviving company, (c) the complete liquidation of the
Company or the sale or disposition of all or substantially all of the Company's
assets, such that after the transaction, the holders of the voting shares of the
Company immediately prior to the transaction is less than 50% of the voting
securities of the acquiror, or the parent of the acquiror, or (d) a majority of
the Board votes in favor of a decision that a Change in Control has occurred.

     1.7 "Claimant" shall have the meaning set forth in Section 7.7.

     1.8 "Code" means the Internal Revenue Code of 1986, as amended.

     1.9 "Committee" means the individual or individuals appointed by the
Company to administer the Plan pursuant to Section 7.1.

     1.10 "Company" means American Financial Realty Trust and each other entity
that is included with the Company in a controlled group of corporations or a
controlled group of trades or businesses within the meaning of Code Section
414(b) or (c).

     1.11 "Contribution" or "Contributions" means the amounts contributed by the
Company and held in the Trust pursuant to Article V.

     1.12 "Effective Date" means September 10, 2002.

                                       2

<PAGE>

     1.13 "Eligible Employee" means a member of the Company's management group
or a highly compensated Employee selected by the Committee to participate in the
Plan pursuant to Section 2.1.

     1.14 "Employee" means a person who is in the employ of the Company.

     1.15 "Employment Agreement" shall mean the agreement entered into by the
Participant and the Company governing the terms of the Participant's employment
by the Company, if any.

     1.16 "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.

     1.17 "Good Reason" shall have the meaning set forth in the Participant's
Employment Agreement, provided such Employment Agreement contains a provision
permitting termination for Good Reason.

     1.18 "Participant" means an Eligible Employee who becomes a Participant as
described in Section 2.2.

     1.19 "Permanent Disability" or "Permanently Disabled" shall mean, unless
defined otherwise in a Participant's Employment Agreement, the Participant's
inability due to a physical or mental impairment to perform the material
functions of his job with the Company for a period of six (6) months, whether or
not consecutive, during any 365-day period. A determination of Permanent
Disability shall be made by a physician satisfactory to both the Participant and
the Company, provided that if the Participant and the Company do not agree on a
physician, the Participant and the Company shall each select a physician and
these two together shall select a third physician, whose determination as to
Permanent Disability shall be binding on all parties.

     1.20 "Plan" means the American Financial Realty Trust Supplemental
Executive Retirement Plan, as embodied herein and as subsequently amended.

     1.21 "Plan Year" means the calendar year.

     1.22 "Policy" means a life insurance policy or an annuity acquired by the
Company to meet, in whole or in part, its obligations hereunder, as described in
Section 5.3.

     1.23 "Retirement Age" means the Participant attaining age 60.

     1.24 "Retirement" or "Retires" means a Participant's termination of service
with the Company on or after attaining his Retirement Age.

     1.25 "Trust" means the irrevocable, grantor trust established in connection
with this Plan.

     1.26 "Trust Agreement" means the trust agreement establishing the Trust.

     1.27 "Trustee" shall be the trustee of the Trust established pursuant to
Article VI.

                                       3

<PAGE>

                                   ARTICLE II
                                  PARTICIPATION

     2.1 Selection. Nicholas S. Schorsch shall be eligible to participate in the
Plan on the Effective Date. Thereafter, the Committee shall determine, in its
sole discretion, which Eligible Employees shall be eligible to participate in
the Plan, if any.

     2.2 Participation. An Eligible Employee shall become a Participant on the
date he first becomes eligible pursuant to Section 2.1. As a condition to
participation, each Eligible Employee shall provide such documentation, and
perform any tasks, reasonably requested by the Committee.

                                  ARTICLE III
                                VESTING; BENEFITS

     3.1 Vesting. A Participant shall become vested in his benefit hereunder
pursuant to the vesting schedule determined by the Committee and as set forth in
Schedule I. Unless otherwise provided for in Schedule I, a Participant shall
become 100% vested on a Change in Control, a termination by the Company without
Cause, upon his death or Permanent Disability, or if applicable, the Participant
terminates his employment with the Company for Good Reason.

     3.2 Benefit Amount on or After Retirement. A Participant shall be entitled
to an annual benefit equal to fifty percent (50%) of his Average Annual
Compensation, payable in the form of a single life annuity commencing at
Retirement Age, or if later, Retirement, subject to an annual maximum benefit of
$475,000, with payments continuing for a period of ten (10) years, or if longer,
the life of the Participant. If the Participant dies after benefit payments have
begun but prior to receiving payments for the full ten (10) year period, his
Beneficiary shall be paid, in a single, lump sum cash payment, the Actuarial
Equivalent of the remaining payments due him, determined as of the date of his
death.

     3.3 Benefit Amount on Termination Prior to Retirement. In the event a
Participant incurs a termination of employment prior to Retirement due to (a) a
termination by the Company for other than for Cause, (b) a termination by the
Participant for Good Reason, or (c) the Participant becomes Permanently
Disabled, he shall be entitled to receive his vested benefit in the form of a
single life annuity, with payments beginning on or after he attains his
Retirement Age. Notwithstanding the foregoing, if a Participant elects, pursuant
to Section 4.1, to have his benefit payments begin after his termination of
employment date but prior to his attaining his Retirement Age, his benefit shall
be the Actuarial Equivalent of his vested benefit.

     3.4 Benefit Upon Death Prior to Benefit Payments Commencing. In the event a
Participant dies prior to the time benefit payments have begun, his Beneficiary
shall be paid, in a single, lump sum cash payment, the Actuarial Equivalent of
his vested benefit determined as of the date of his death.

     3.5 Forfeiture on Termination of Employment for Cause or Voluntary
Termination Without Good Reason. If a Participant's employment with the Company
is terminated for Cause or he voluntarily terminates his employment for other
than Good Reason prior to his Retirement,

                                       4

<PAGE>

his becoming Permanently Disabled or his death, the Participant shall forfeit
only the unvested portion of his benefit hereunder.

                                   ARTICLE IV
                                  DISTRIBUTIONS

     4.1 Time of Distribution. A Participant shall be entitled to payment of his
Plan benefit no later than the first day of the month following the month in
which he attains his Retirement Age, or if later, he Retires. Notwithstanding
the foregoing, a Participant who incurs a termination of employment prior to his
Retirement at a time when he has a vested benefit hereunder may elect, within
thirty (30) days of his termination of employment date or such later date as
established by the Committee, to begin benefit payments as of the first day of
any month following the month in which he incurs his termination of employment
date.

     4.2 Election for Monthly Installments. Notwithstanding the foregoing, a
Participant may elect in writing no later than thirty (30) days prior to the
date on which benefits are scheduled to begin, or if earlier, within thirty (30)
days of his termination of employment date, or such later date as determined by
the Committee, to have his benefit paid in monthly installments. An election,
once made, shall be irrevocable, except that in the event of his death prior to
time he has received all payments to which he is entitled to hereunder, his
Beneficiary shall receive the death benefit provided for in Article III.

     4.3 Actuarial Equivalence. Notwithstanding anything herein to the contrary,
benefit payments shall be actuarially adjusted if benefit payments are made
prior to the time the Participant reaches his Retirement Age and/or payments are
made in other than a single life annuity. An enrolled actuary shall determine
the Actuarial Equivalent of payments made early or in monthly installments.

                                    ARTICLE V
                                     FUNDING

     5.1 Benefit Payments to be Made From the Trust. Benefit payments to
Participants and Beneficiaries shall be made from the Trust, unless the Company
notifies the Committee pursuant to Section 5.5 that it will make one or more
benefit payments directly to the Participant or Beneficiary.

     5.2 Company Contributions. The Company shall contribute, at least annually,
an amount to the Trust which has been determined by an enrolled actuary as
necessary to fund the benefit provided for hereunder. The enrolled actuary shall
apply principles and concepts similar to those used to determine the minimum
funding requirements of a defined benefit plan when determining the annual
contribution amount, taking into consideration the fair market value of the
Trust assets and the acquisition and maintenance of any Policy at the time the
determination is made.

     5.3 Purchase and Maintenance of a Policy. The Company may, in its
discretion, purchase a Policy. The Company shall determine the type of Policy to
be acquired, the amount of said Policy, and the insurer issuing such Policy. If
a Policy is acquired, the Trust shall be the owner and beneficiary of the Policy
and the Trustee shall make all decisions regarding the

                                       5

<PAGE>

Policy. A Participant or Beneficiary shall have no rights with respect to any
Policy purchased pursuant to the Plan.

     5.4 No Employee Contributions. At no time shall a Participant be permitted
to make a pre-tax or after-tax contribution to the Plan.

     5.5 Company Payments. The Company may make payments of benefits due
hereunder directly to the Participant, or on his death, to his Beneficiary out
of Company assets. The Company shall timely notify the Committee of its decision
to make a direct payment. A direct payment by the Company of the full amount of
the benefit payable to the Participant or his Beneficiary shall be a complete
discharge of any liability under the Plan for such payment amount.

                                   ARTICLE VI
                                 TRUST; TRUSTEE

     6.1 Establishment of a Trust. The Company shall establish a Trust for the
purpose of funding the benefit obligations incurred by the Company under this
Plan. The Trust so created shall substantially conform to the terms of the model
trust provided by the Internal Revenue Service as described in Revenue Procedure
92-64. Notwithstanding the establishment of such trust, it is the intention of
the Company and the Participants that the Plan shall be unfunded for tax
purposes and for purposes of Title I of ERISA. The Plan constitutes a mere
promise by the Company to pay benefits in the future. To the extent that any
Participant or any other person acquires a right to receive benefits under this
Plan, such right shall be no greater than the right of any unsecured general
creditor of the Company.

     6.2 Accumulation of Trust Assets. All amounts contributed to the Trust,
including earnings and losses thereon, shall be held in the Trust until all
obligations under the Plan have been satisfied. Once all obligations have been
satisfied, and a final accounting provided to the Committee, any assets
remaining in the Trust may be returned to the Company.

     6.3 Trustee. The Trustee shall hold all Plan assets in trust. The Trustee
shall have all powers and responsibilities with respect to the Trust, as set
forth in the Trust Agreement, including but not limited to, the right to invest
the Trust assets. The Trustee shall be responsible for maintaining accurate and
detailed accounts and records with respect to all investments, receipts,
disbursements and other transactions of the Trust. The Trustee shall provide an
accounting to the Committee at least annually. The Trustee shall make
distributions only as and when directed to by the Committee. The Trustee shall
have such other duties and obligations as set forth in the Trust Agreement.

                                  ARTICLE VII
                                 ADMINISTRATION

     7.1 Committee. This Plan shall be administered by a Committee, which shall
consist of the Compensation Committee of the Board or such other committee or
individuals appointed by the Board. Members of the Committee may be Participants
under this Plan and need not be members of the Board. A member of the Committee
shall serve at the pleasure of the Board and the Board may remove any member by
delivering a notice of removal to such member. A

                                       6

<PAGE>

member of the Committee may resign at any time by delivering a notice to the
Board of his resignation. A member of the Committee who is an Employee shall
cease being a member of the Committee on the date he incurs a termination of
employment with the Company. Vacancies in the membership of the Committee shall
be filled promptly by the Board.

     7.2 Committee Action. The Committee shall act at meetings by affirmative
vote of a majority of the members of the Committee. A meeting may be held in
person or electronically via telephone or video conference. Any action permitted
to be taken at a meeting may be taken without a meeting provided all members of
the Committee sign a written consent with respect to such action. Such written
consent shall be filed with the minutes of the proceedings of the Committee. A
member of the Committee shall not vote or act upon any matter which relates
solely to himself as a Participant. The Chairman or any other member or members
of the Committee designated by the Chairman may execute any certificate or other
written direction on behalf of the Committee.

     7.3 Powers and Duties of the Committee. The Committee shall be charged with
the general administration of the Plan, and shall have all powers necessary to
accomplish its purposes, including, but not limited to, the following:

          (a) To construe and interpret the terms and provisions of this Plan;

          (b) To compute and certify to the amount and kind of benefits payable
to Participants and their Beneficiaries;

          (c) To maintain all records that may be necessary for the
administration of the Plan;

          (d) To provide for the disclosure of all information and the filing or
provision of all reports and statements to Participants, Beneficiaries or
governmental agencies as shall be required by law;

          (e) To make and publish such rules for the regulation of the Plan and
procedures for the administration of the Plan as are not inconsistent with the
terms hereof;

          (f) To appoint a Plan administrator or any other agent, and to
delegate to them such powers and duties in connection with the administration of
the Plan as the Committee may from time to time prescribe; and

          (g) To take all actions necessary for the administration of the Plan.

     7.4 Construction and Interpretation. The Committee shall have full
discretion to construe and interpret the terms and provisions of this Plan,
which interpretations or construction shall be final and binding on all parties,
including but not limited to the Company and any Participant or Beneficiary. The
Committee shall administer such terms and provisions in a uniform and
nondiscriminatory manner and in full accordance with any and all laws applicable
to the Plan.

                                       7

<PAGE>

     7.5 Information. To enable the Committee to perform its functions, the
Company shall supply full and timely information to the Committee on all matters
relating to the Participants, their Retirement, Permanent Disability, death or
other events which cause termination of their participation in this Plan or the
requirement that benefits be paid pursuant to Article IV, and such other
pertinent facts as the Committee may require.

     7.6 Compensation, Expenses and Indemnity.

          (a) The members of the Committee shall serve without compensation for
their services hereunder.

          (b) The Committee is authorized at the expense of the Company to
employ such legal counsel as it may deem advisable to assist in the performance
of its duties hereunder. Expenses and fees in connection with the administration
of the Plan shall be paid by the Company.

          (c) To the extent permitted by applicable state law, the Company shall
indemnify and save harmless the Committee and each member thereof, and any
delegate of the Committee who is an Employee of the Company against any and all
expenses, liabilities and, claims, including legal fees, to defend against such
liabilities and claims arising out of their discharge in good faith of
responsibilities under or incident to the Plan, other than expenses and
liabilities arising out of gross negligence or willful misconduct. This
indemnity shall not preclude such further indemnities as may be available under
insurance purchased by the Company or provided by the Company under any bylaw,
agreement or otherwise, as such indemnities are permitted under state law.

     7.7 Claims Procedure. Any Participant or, upon the death of a Participant,
his Beneficiary (such Participant or Beneficiary being referred to below as a
"Claimant") may deliver to the Committee a written claim for benefits under the
Plan. As soon as administratively practicable after receipt of such claim, the
Committee shall make a determination of the validity thereof. The Committee
shall notify the Claimant, in writing, of its decision.

     7.8 Committee Decision Binding On All Interested Parties. A decision of the
Committee made in good faith on a claim for benefits shall be final and binding
on all interested parties, including but not limited to, the Claimant and the
Company.

                                  ARTICLE VIII
                                  MISCELLANEOUS

     8.1 Unsecured General Creditor. Participants and their Beneficiaries,
heirs, successors, and assigns shall have no legal or equitable rights, claims,
or interest in any specific property or assets of the Company, including but not
limited to, any assets held in the Trust or in any Policy purchased by the
Company. No assets of the Company shall be held in any way as collateral
security for the fulfilling of the obligations of the Company under this Plan.
Any and all of the Company's assets shall be, and remain, the general unpledged,
unrestricted assets of the Company. The Company's obligation under the Plan
shall be merely that of an unfunded and unsecured promise of the Company to pay
money or property in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors. It
is

                                       8

<PAGE>

the intention of the Company that this Plan, irrespective of the Trust, be
unfunded for purposes of the Code and for purposes of Title I of ERISA.

     8.2 Restriction Against Assignment. The Company or Trustee shall pay all
amounts payable hereunder only to the person or persons designated by the Plan
and not to any other person or corporation. No part of a Participant's benefit
shall be liable for the debts, contracts, or engagements of any Participant, his
or her Beneficiary, or successors in interest, nor shall a Participant's benefit
be subject to execution by levy, attachment, or garnishment or by any other
legal or equitable proceeding (including, but not limited to, an action for a
divorce or legal separation), nor shall any such person have any right to
alienate, anticipate, sell, transfer, commute, pledge, encumber, or assign any
benefits or payments hereunder in any manner whatsoever. If any Participant,
Beneficiary or successor in interest is adjudicated bankrupt or purports to
anticipate, alienate, sell, transfer, commute, assign, pledge, encumber or
charge any distribution or payment from the Plan, voluntarily or involuntarily,
the Committee, in its discretion, may cancel such distribution or payment (or
any part thereof) to or for the benefit of such Participant, Beneficiary or
successor in interest in such manner as the Committee shall direct.

     8.3 Governing Law. The Plan is established under and will be construed
according to the laws of the Commonwealth of Pennsylvania, excluding conflict of
law provisions, except to the extent preempted by ERISA.

     8.4 Taxes. All federal, state and local income, employment or other taxes
required to be withheld in connection with a benefit payment shall be the sole
responsibility of the Participant or Beneficiary. To the extent not otherwise
paid for by the Participant, or in the event of his death, his Beneficiary, the
Company shall have the right to deduct from any wages or other compensation
payable to the Participant or any payment made pursuant to this Plan any such
taxes, as the Committee may determine in its sole discretion.

     8.5 Not a Contract of Employment. The terms and conditions of this Plan
shall not be deemed to constitute a contract of employment between the Company
and the Participant. Such employment continues to be an "at will" employment
relationship that can be terminated at any time for any reason, or no reason,
with or without cause, and with or without notice, unless otherwise expressly
provided for in the Employment Agreement. Nothing in this Plan shall be deemed
to give a Participant the right to be retained in the service of the Company, or
to interfere in any way with any right of the Company to discipline or discharge
the Participant at any time, subject to the terms of the Employment Agreement.

     8.6 Amendment or Termination. The Company reserves the right to amend or
terminate the Plan by appropriate corporate action at any time and for any
reason. No amendment or termination of the Plan shall directly or indirectly
deprive any Participant of all or any portion of the Participant's benefit
hereunder that was provided for herein prior to the date of amendment or
termination.

     8.7 Headings. The headings of Articles, Sections and Paragraphs of this
Plan are for convenience only and shall not control or affect the meaning or
construction of any of its provisions.

                                       9

<PAGE>

     8.8 Validity. In case any provision of this Plan shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect the
remaining parts hereof, and this Plan shall be construed and enforced as if such
illegal or invalid provision had never been included herein.

     8.9 Incompetents and Minors. If the Committee determines in its discretion
that a benefit under this Plan is to be paid to a person declared incompetent or
a person incapable of handling the disposition of that person's property, the
Committee may direct payment of such benefit to the guardian, legal
representative or person having the care and custody of such incompetent or
incapable person. The Committee may require proof of incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the benefit.
In the event any amount is payable under this Plan to a minor, payment shall not
be made to the minor, but instead be paid (a) to that person's living parent(s)
to act as custodian, (b) if that person's parents are then divorced, and one
parent is the sole custodial parent, to such custodial parent, or (c) if no
parent of that person is then living, to a custodian selected by the Committee
to hold the funds for the minor under the Uniform Transfers or Gifts to Minors
Act in effect in the jurisdiction in which the minor resides. If no parent is
living and the Committee decides not to select another custodian to hold the
funds for the minor, then payment shall be made to the duly appointed and
currently acting guardian of the estate for the minor or, if no guardian of the
estate for the minor is duly appointed and currently acting within 60 days after
the date the amount becomes payable, payment shall be deposited with the court
having jurisdiction over the estate of the minor. Any payment of a benefit
hereunder shall be a payment for the account of the Participant and his
Beneficiary and shall be a complete discharge of any liability under the Plan
for such payment amount.

     8.10 Successors. The provisions of this Plan shall bind and inure to the
benefit of the Company and its successors and assigns and the Participant and
the Participant's Beneficiary. No other person shall be a third-party
beneficiary or acquire any rights under this Plan.

     8.11 Construction. The masculine gender shall include the feminine and the
singular the plural, unless the context clearly requires otherwise.

     IN WITNESS WHEREOF, the Company has signed this Plan document effective as
of September 10, 2002, and as amended and restated on May 7, 2003.

                                 American Financial Realty Trust

                                 By:
                                     -------------------------------------------
                                     Glenn Blumenthal
                                     Senior Vice President - Asset Management
                                     Chief Operating Officer

                                       10

<PAGE>

                                   SCHEDULE I
                                     VESTING

Participant Name                        Vesting Schedule
----------------                        ----------------

Nicholas S. Schorsch                    Year  Percentage
                                        ----  ----------
                                          1       22%
                                          2       43%
                                          3       63%
                                          4       82%
                                          5      100%

                          A year of vesting service under the SERP is the
                          12-month period ending on each one-year anniversary of
                          the Effective Date of the SERP, provided he is an
                          employee of the Company on that date. Schorsch shall
                          become 100% vested upon (a) the effective date of a
                          Change of Control, (b) his termination date if the
                          Company terminates him without Cause, (c) his
                          termination date if he terminates for Good Reason, (d)
                          the date he dies, or (e) the date he becomes
                          Permanently Disabled.

                                       11

<PAGE>

             AMERICAN FINANCIAL REALTY TRUST SUPPLEMENTAL EXECUTIVE
                                 RETIREMENT PLAN
                          BENEFICIARY DESIGNATION FORM

     I, Nicholas S. Schorsch, residing at                         , do hereby
                                          ------------------------
designate the following as my Beneficiary to receive the death benefits payable
by the American Financial Realty Trust Supplemental Executive Retirement Plan
(the "Plan"), as follows:

     Primary Beneficiary

     The primary beneficiary for my death benefit shall be:

     Name                                      Relationship           Percentage
     ----                                      ------------           ----------

     ------------------------------   -----------------------------     ------%

     ------------------------------   -----------------------------     ------%

     Upon the death of either of the foregoing named persons prior to the time
all death benefit payments shall have been made, the survivor shall be entitled
to 100% of the death benefit payment.

     Contingent Beneficiary

     If my primary beneficiary does not survive me, then the beneficiary for my
death benefit shall be:

     Name                                      Relationship           Percentage
     ----                                      ------------           ----------

     ------------------------------   -----------------------------     ------%

     ------------------------------   -----------------------------     ------%

     Upon the death of any of the foregoing named persons prior to the time all
death benefit payments shall have been made, the survivor(s) shall be entitled
to 100% of the death benefit payment.

     In the event neither my primary beneficiary nor contingent beneficiary
shall survive me, then the death benefit payable under the Plan shall be to my
surviving spouse. If I have no surviving spouse alive on the date of my death,
my Beneficiary shall be my estate (either my probate estate or my living trust).
I acknowledge that I may revoke this beneficiary designation at any time by
completing and providing to the Company a new Beneficiary Designation Form and
that the consent of the currently named beneficiaries is not required. I
understand that to be effective, this Beneficiary Designation Form must be on
file with the Committee on the date of my death. I further acknowledge that my
Beneficiary shall be subject to the terms of the Plan, as in effect from time to
time.

                                            ------------------------------------
                                                    Nicholas S. Schorsch

                                            Date:

                                       1

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