Document:

Exhibit 10.17

 Exhibit 10.17 
  
 INDEMNIFICATION AND ESCROW AGREEMENT 
  
 THIS INDEMNIFICATION AND ESCROW AGREEMENT (this “Agreement”) is entered into as of the 1st day of June, 2000 by and among FrontLine Capital Group (formerly known as Reckson Services Industries, Inc.), a Delaware
corporation (“RSI”), CarrAmerica Realty Corporation, a Maryland corporation (“CarrAmerica”), Strategic Omni Investors LLC, a Delaware limited liability company (“Strategic Omni”), Security Capital Holdings S.A., a
Luxembourg corporation (“SC-USRealty”), The Oliver Carr Company, a District of Columbia corporation (“OCCO”), Carr Holdings LLC, a Maryland limited liability company (“Carr Holdings”), and the additional persons who are
shown on the signature page hereto (the “Additional Indemnitors”) (CarrAmerica, Strategic Omni, SC-USRealty, OCCO, Carr Holdings, and each of the Additional Indemnitors, collectively the “Shareholders” and individually a
“Shareholder”; sometimes collectively referred to herein with RSI as “Depositors” and individually a “Depositor”) and Citibank, N.A., a New York corporation, as escrow agent hereunder (the “Escrow Agent”).

  
 W I T N E S
S E T H: 
  
 WHEREAS, RSI,
CarrAmerica, VANTAS Incorporated, a Nevada corporation (“VANTAS”), and HQ Global Workplaces, Inc., a Delaware corporation (“HQGW”), have entered into an Agreement and Plan of Merger dated as of January 20, 2000, as amended
as of April 29, 2000 and as of May 31, 2000 (the “Merger Agreement”) pursuant to which VANTAS will merge with and into HQGW (“the Merger”); 
  
 WHEREAS, on the date hereof, pursuant to an agreement among certain of the Shareholders and RSI dated as of January 20,
2000 (the “Stock Purchase Agreement”), certain of the Shareholders are selling to RSI, and RSI is purchasing from such Shareholders, that number of the shares of voting common stock, par value $.01 per share, and non-voting common stock,
par value $.01 per share, of Holdco as set forth in, and subject to the terms and conditions of, the Stock Purchase Agreement; 
  
 WHEREAS, on the date hereof, pursuant to the Merger Agreement, each issued and outstanding share of (A) common stock, par value $.01 per share
(“VANTAS Common Stock”), of VANTAS shall be converted into the right to receive $8.00 per share in cash and (B) (i) Series A Convertible Preferred Stock, par value $.01 per share, of VANTAS (the “Series A Stock”),
(ii) Series B Convertible Preferred Stock, par value $.01 per share, of VANTAS (the “Series B Stock”), (iii) Series C Convertible Preferred Stock, par value $.01 per share, of VANTAS (the “Series C Stock”),
(iv) Series D Convertible Preferred Stock, par value $.01 per share, of VANTAS (the “Series D Stock”), and (v) Series E Convertible Preferred Stock, par value $.01 per share of VANTAS (the “Series E Stock”), other than
shares of Series A Stock, Series B Stock, Series C Stock, Series D Stock and Series E Stock held in the treasury of VANTAS, are, by virtue of the Merger and without any action on the part of the holder thereof, being converted into the right to
receive shares of voting common stock of HQGW; 

 WHEREAS, as a condition to the consummation by VANTAS and/or RSI, as applicable, of the transactions
contemplated by the Merger Agreement, the Stock Purchase Agreement, and that certain Stock Purchase Agreement by and among VANTAS, RSI, CarrAmerica, OmniOffices (UK) Limited (“Omni UK”) and OmniOffices (Lux) 1929 Holding Company S.A.
(“LuxCo”) (the “UK Agreement”), (i) the Shareholders have hereby agreed to indemnify and hold harmless RSI from and against certain losses related to the Merger Agreement and the Stock Purchase Agreement, and
(ii) CarrAmerica has hereby agreed to indemnify and hold harmless RSI from and against certain losses related to the UK Agreement, upon the terms and conditions provided herein; 
  
 WHEREAS, as a condition to the consummation by HQGW and the applicable Shareholders of the transactions contemplated by the
Merger Agreement, the Stock Purchase Agreement and the UK Agreement, RSI has agreed to indemnify and hold harmless certain Shareholders from and against certain losses from certain matters upon the terms and conditions provided herein; 

 
 WHEREAS, in connection with the Shareholders’ indemnification
obligations, the parties have agreed that the Shareholders are depositing an aggregate of 706,612 shares of non-voting common stock of Holdco (the “Non-Voting Common Stock”) (collectively, the “Shareholder Indemnification
Shares”) and $4,158,492 in cash (the “Shareholder Cash Collateral”) with the Escrow Agent to be held and disbursed by the Escrow Agent in accordance with this Agreement, with such Shareholder Indemnification Shares and Shareholder
Cash Collateral having an aggregate initial value of $30,000,000 as of the Closing; 
  
 WHEREAS, in connection with RSI’s indemnification obligations, the parties have agreed that RSI is depositing an aggregate of 820,322 shares of voting common stock of Holdco (the “Voting Common Stock”)
(the “RSI Indemnification Shares,” and together with the Shareholder Indemnification Shares, the “Indemnification Shares”) with the Escrow Agent to be held and disbursed by the Escrow Agent in accordance with this Agreement, with
the RSI Indemnification Shares having an aggregate initial value of $30,000,000 as of the Closing; 
  
 WHEREAS, capitalized words and phrases used and not defined herein shall have the meanings ascribed to them in the Merger Agreement; and 
  
 WHEREAS, the Escrow Agent is willing to establish and administer this escrow
on the terms set forth in this Agreement. 
  

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 NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows: 
  
 1. Certain Definitions. As used in this Agreement, certain capitalized terms not otherwise defined herein shall have the following respective
meanings: 
  
 “Cash Collateral” shall mean the
Shareholder Cash Collateral and any cash deposited by RSI or any Shareholder in the Escrow Account in substitution of RSI Indemnification Shares or Shareholder Indemnification Shares in accordance with Section 2(b). 
  
 “Company Level Loss” shall mean any loss, liability, claim, damage
or expense (including reasonable legal fees and expenses) directly or indirectly incurred by HQGW or its Subsidiaries and VANTAS or its Subsidiaries respectively; it being understood that a Company Level Loss shall not include any consequential,
incidental or punitive damages or any Direct Loss. 
  
 “Escrow Property” shall mean the Indemnification Shares and the Cash Collateral delivered to the Escrow Agent, together with all interest, dividends and other distributions and payments thereon received by Escrow Agent, less any
property and/or funds distributed or paid in accordance with this Agreement. 
  
 “Loss” or “Losses” shall mean a Company Level Loss or a Direct Loss. 
  
 “Direct Loss” shall mean any loss, liability, claim, damage or expense (including reasonable legal fees and expenses) incurred by (i) any
Shareholder Indemnitee arising from, relating to or as a result of the inaccuracy at the time made or deemed made of any of the representations or warranties set forth in: (a) Section 5(B) of the Merger Agreement; and
(b) Section 5 of the Stock Purchase Agreement; or (ii) RSI Indemnitees arising from, relating to, or as a result of the inaccuracy at the time made or deemed made of any of the representations or warranties set forth in:
(a) Section 4(B) of the Merger Agreement; (b) Section 4 of the Stock Purchase Agreement and (c) Article II, Section (B) of the UK Agreement; it being understood that a Direct Loss shall not include (x) any
consequential, incidental or punitive damages, (y) any loss or damages suffered by such party as a result of the diminution in value (either directly or indirectly) of the interest held by such party in the Holdco, or (z) any Company Level
Loss. 
  
 “Market Value” shall mean $36.57 per share.

  
 “Ownership Percentage” shall mean, with respect to a
Shareholder, the percentage set forth opposite such Shareholder’s name on Schedule A attached hereto. 
  
 “RSI Indemnitees” shall mean RSI and its directors, officers, employees, shareholders, agents and representatives. 
  
 “RSI’s Indemnification Share” shall mean one (1) minus
the Shareholder’s Indemnification Share. 
  
 “Shareholder Indemnitees” shall mean the Shareholder listed on Schedule C attached hereto and its directors, officers, employees, shareholders, agents and representatives. 
  
 “Shareholder Litigation” shall mean the legal proceedings disclosed
in Schedule 4(p) of the Merger Agreement under the caption “Omni Offices, Inc. and CarrAmerica Realty 

  

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Corporation v. Joseph Kaidanow and Robert Arcoro” and any and all other claims, counterclaims, causes of actions or other proceedings threatened or
initiated by or on behalf of Robert Arcoro (“Arcoro”) or Joseph Kaidanow (“Kaidanow”) that relate to facts or circumstances or alleged facts or alleged circumstances arising on or prior to May 31, 2000 (the “Closing
Date”), other than any such claims, causes of action or other proceedings with respect to and only to the extent of allegations thereon that any information supplied in writing by RSI to CarrAmerica for inclusion in materials that HQGW delivers
to Arcoro or Kaidanow in connection with the Merger contains any untrue statement of a material fact with respect to RSI or VANTAS or omits to state a material fact necessary in order to make the statements therein with respect to RSI or VANTAS not
misleading. 
  
 “Shareholders’ Indemnification
Share” shall mean the aggregate percentage ownership interest of the Voting Common Stock and Non-Voting Common Stock of Holdco owned by the Shareholders immediately after the Closing. 
  
 2. Establishment of Escrow Account. 
  
 (a) Each Shareholder and RSI are contemporaneously with the
execution and delivery of this Agreement by each of the parties delivering the number of Indemnification Shares (together with executed stock powers in respect thereof) and/or the amount of Cash Collateral set forth opposite its name on Schedule
A hereto to the Escrow Agent for deposit into an escrow account (the “Escrow Account”) by the Escrow Agent and the Escrow Agent hereby acknowledges receipt of the same. All Indemnification Shares and Cash Collateral in the Escrow
Account shall be available for distribution by the Escrow Agent, subject to the provisions of this Agreement, to reimburse any RSI Indemnitee or any Shareholder Indemnitee, as the case may be, in respect of any Losses that are indemnifiable pursuant
to this Agreement. Notwithstanding the escrow of the Indemnification Shares, dividends and other distributions declared and paid on Indemnification Shares held in escrow shall continue to be paid by Holdco to the respective Shareholders and RSI, all
voting rights with respect to such shares shall inure to the benefit of and be enjoyed by the respective Shareholders and RSI, and such Shareholders and RSI shall be the legal and beneficial owners of such shares for all purposes subject to the
terms of this Agreement; provided, that the parties agree that (i) Holdco shall deposit with the Escrow Agent any securities issued to the Shareholders or RSI in respect of any Indemnification Shares held in escrow as a result of a stock split
or combination of shares of Voting Common Stock or Non-Voting Common Stock, as the case may be, payment of a stock dividend or other stock distribution made without receipt of consideration therefor in or on the Voting Common Stock or Non-Voting
Common Stock, as the case may be, or change of shares of the Voting Common Stock or Non-Voting Common Stock, as the case may be, into any other securities pursuant to or as part of a business combination or otherwise, in each case together with
specific written instructions to the Escrow Agent on whose behalf the same should be credited, and (ii) such securities shall be held by the Escrow Agent as, and shall be included within the definition of, Indemnification Shares, as the case
may be; provided, however, notwithstanding the foregoing proviso, to the extent that any such distribution of securities is properly taxable as a dividend for federal income tax purposes, Holdco shall instruct the Escrow Agent to distribute such
securities 

  

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to the respective Shareholders and RSI. The Escrow Agent agrees that it shall invest any Cash Collateral in the HQ/VANTAS Indemnification Escrow Agreement
account (F/B/O 795012). The Escrow Agent shall not have any liability for any loss sustained as a result of any investment made pursuant to the preceding sentence or as a result of any liquidation of any such investment prior to its maturity. Any
interest earned on any Cash Collateral shall not be used to increase the amount of the Escrow Account of any party hereto and shall be paid to the applicable depositor of the Escrow Account from time to time upon written demand by such depositor,
upon specific written instructions to the Escrow Agent with respect thereto. The Escrow Agent shall have no obligation to invest or reinvest the Cash Collateral if deposited with the Escrow Agent after 11:00 a.m. (E.S.T.) on such day of deposit.
Instructions received after 11:00 a.m.(E.S.T.) will be treated as if received on the following business day. The Escrow Agent shall have the power to sell or liquidate the foregoing investments whenever the Escrow Agent shall be required to release
the Escrow Property pursuant to the terms hereof. Requests (or instructions) received after 11:00 a.m. (E.S.T.) by the Escrow Agent to liquidate the Escrow Property will be treated as if received on the following business day. The Escrow Agent shall
have no responsibility for any investment losses resulting from the investment, reinvestment or liquidation of the Escrow Property. Any interest or other income received on such investment and reinvestment of the Escrow Property shall become part of
the Escrow Property. If a selection is not made, the Escrow Property shall remain uninvested with no liability for interest therein. It is agreed and understood that the Escrow Agent may earn fees associated with the investments outlined above.

  
 (b) At any time and from time to time after
the Closing Date, any or all of the Indemnification Shares deposited by any Shareholder or RSI in the Escrow Account on the Closing Date may be withdrawn upon at least five (5) business days’ prior notice by RSI or the Shareholders, as
applicable, to the other (with a copy to the Escrow Agent), but if and only if simultaneously with such withdrawal the withdrawing party delivers immediately available funds to the Escrow Agent for deposit into the Escrow Account in an amount equal
to the aggregate Market Value of the number of Indemnification Shares so withdrawn, which determination shall be set forth in a written notice to the Escrow Agent signed by RSI or the applicable Shareholder and upon which the Escrow Agent shall be
entitled to conclusively rely. 
  
 3. Tax Indemnification.

  
 (a) Tax Indemnification by
Shareholders. Subject to the limitations of indemnification pursuant to Section 5, the Shareholders severally, based on each such Shareholder’s Ownership Percentage, shall indemnify the RSI Indemnitees against and hold them harmless
from (i) any Loss incurred by reason of any liability of HQGW and its Subsidiaries for Taxes for any Pre-Closing Tax Period, (ii) any Loss incurred by reason of any liability for Taxes of the Shareholders or any other person (other than
HQGW) which is or has ever been affiliated with HQGW and its Subsidiaries, and (iii) any Loss incurred by reason of any liability for reasonable legal, accounting, appraisal, consulting or similar fees and expenses for any item attributable to
any item in clause (i) or (ii) above. 
  

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 (b) Tax Indemnification by RSI. Subject to the limitations of indemnification
pursuant to Section 5, RSI shall indemnify the Shareholder Indemnitees against and hold them harmless from (i) any Loss incurred by reason of any liability of VANTAS and its Subsidiaries for Taxes for any Pre-Closing Tax Period,
(ii) any Loss incurred by reason of any liability for Taxes of RSI or any other person (other than VANTAS and its Subsidiaries) which has ever been affiliated with RSI and its Subsidiaries, and (iii) any Loss incurred by reason of any
liability for reasonable legal, accounting, appraisal, consulting or similar fees and expenses for any item attributable to any item in clause (i) or (ii) above. 
  
 (c) Straddle Period. For purposes of subparagraphs (a) and (b) above, in the case of any taxable
period that includes (but does not end on) the Closing Date (a “Straddle Period”): 
  
 (i) real, personal and intangible property Taxes (“Property Taxes”) of HQGW and its Subsidiaries and VANTAS and its Subsidiaries, respectively, for any Pre-Closing Tax Period (other than Taxes imposed in
connection with the Merger or otherwise in connection with this Agreement or the transactions contemplated hereby) shall be equal to the amount of such Property Taxes of HQGW and its Subsidiaries and VANTAS and its Subsidiaries, respectively, for
the entire Straddle Period (limited, however, to those Taxes attributable to the assets of HQGW and its Subsidiaries and VANTAS and its Subsidiaries, respectively, owned prior to the Closing Date) multiplied by a fraction, the numerator of which is
the number of days during the Straddle Period that are in the Pre-Closing Tax Period and the denominator of which is the number of days in the Straddle Period; and 
  
 (ii) the Taxes of HQGW and its Subsidiaries and VANTAS and its Subsidiaries, respectively (other than Property Taxes and
other than Taxes referred to in Section 6(e) of this Agreement, which Taxes will be governed by such Section), for the Pre-Closing Tax Period shall be computed as if such taxable period ended as of the close of business on the Closing Date. The
indemnity obligations of the Shareholders in respect of Taxes for a Straddle Period shall, subject to the limitations on indemnification pursuant to Section 5, equal the excess of (x) such Taxes for the Pre-Closing Tax Period over
(y) the sum of (i) the amount of such Taxes for the Pre-Closing Tax Period paid by the Shareholders or any of their affiliates (other than HQGW) at any time and (ii) the amount of such Taxes paid by HQGW and its Subsidiaries on or prior to
the Closing Date (which includes any payments of estimated taxes or similar amounts made by HQGW and its Subsidiaries on or prior to the Closing Date and any amounts of Taxes for which a reserve has been reflected on the Company Balance Sheet, even
though the amount reflected for such reserve has not yet been paid, based on each such Shareholder’s Ownership Percentage, to the applicable taxing authority). The Shareholders severally, based on each such Shareholder’s Ownership
Percentage, shall initially pay such excess to RSI upon the later of (A) five days prior to the 

  

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date on which the Tax Return (including any Tax Return with respect to estimated Taxes) with respect to the liability for such Taxes is required to be filed
(and if no such Tax Return is required to be filed, five days prior to the date satisfaction of the Tax liability is required by the relevant taxing authority) or (B) ten days after the receipt from RSI of notice that such amount is required to
be paid pursuant hereto. The payments to be made pursuant to this paragraph by the Shareholders with respect to a Straddle Period shall be appropriately adjusted to reflect any final determination (which shall include the execution of Form 870-AD or
any successor form) with respect to Taxes for the Straddle Period. 
  
 RSI shall cause Holdco to within 10 days of the receipt thereof, pay to each of the Shareholders an amount equal to such Shareholder’s Ownership Percentage, an amount equal to 100% of any refund of any Taxes of HQGW with respect to any
Pre-Closing Tax Period received by HQGW, any of its Subsidiaries or Holdco at any time after the Closing Date (including for this purpose any credit against Taxes owed for any taxable period ending after the Closing Date, if such credit is
attributable to a taxable period ending on or prior to the Closing Date, any refund of estimated tax payments made on or prior to the Closing Date or any application of such payments to either a taxable period commencing after the Closing Date or a
portion of a Straddle Period that is subsequent to the Closing Date, and any interest received by HQGW, any of its Subsidiaries or Holdco with respect to any of the foregoing from the applicable taxing authority) unless (and only to the extent) that
the amount of such refund for Taxes was reflected as an asset on the Company Balance Sheet. 
  
 (d) RSI shall indemnify each of the Shareholder Indemnitees for any Extra Tax Costs incurred by such Shareholder Indemnitees in connection
with the HQ Merger, the Second Step Merger, and/or the sale of shares by such Shareholder Indemnitee pursuant to the Stock Purchase Agreement. For purposes of this Section 3(d), “Extra -Tax Costs” shall be defined as (i) all
interest, penalties, and similar charges actually payable by a Shareholder Indemnitee to any applicable taxing authority with respect to Extra Taxes attributable to the period ending on the earlier of January 1, 2003 or the date all of such
Shareholder Indemnitee’s shares of stock in HQGW not sold pursuant to the Stock Purchase Agreement actually are sold (in either case, the “Deemed Sale Date”), plus (ii) in the event that such interest, penalties, and similar
charges have not been paid on or prior to the Deemed Sale Date, all interest, penalties and similar charges accruing with respect to such interest, penalties and similar charges until the earlier of the actual date on which the interest, penalties,
and similar charges described in clause (i) are paid or thirty (30) days following a “final determination” within the meaning of Section 1313 of the Code that the Shareholder Indemnitee is required to pay Extra Taxes, plus
(iii) if and to the extent that a Shareholder Indemnitee is required to pay any Extra Taxes prior to the applicable Deemed Sale Date, interest on such Extra Taxes from the date the Shareholder Indemnitee makes such payment of Extra Taxes to and
including the applicable Deemed Sale Date, computed at a rate equal to the rate applicable under Section 6621 of the Code with respect to underpayments of federal income tax, plus (iv) an amount equal to all federal, state and local

  

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income taxes (net of the federal income tax benefit, if any, resulting to the Shareholder Indemnitee from any deduction allowed to such Shareholder
Indemnitee for any such state and local income taxes) required to be paid by such Shareholder Indemnitee with respect to the payment received pursuant to this Section 3(d). For purposes of this Section 3(d), “Extra Taxes” shall
be defined as the excess of (i) the amount of all Taxes (other than stock transfer Taxes) payable (determined as described below) by a Shareholder Indemnitee by reason of the Second Step Merger and/or the sale of shares of stock by the
Shareholder Indemnitee pursuant to the Stock Purchase Agreement over (ii) the amount of Taxes (other than stock transfer Taxes) that would have been payable by such Shareholder Indemnitee by such reason if (a) the exchange into Holdco
Preferred Stock described on the Financing Exhibits were not to have taken place and (b) the surviving corporation in the Second Step Merger were the HQ Surviving Corporation rather than M Sub. The amount of Extra Taxes and the Extra Tax Costs
for purposes of this Section 3(d) shall be determined and certified to by an independent accountant selected by the applicable Shareholder Indemnitee, as may be reasonably acceptable to RSI. Extra Taxes and Extra Tax Costs shall be considered
payable for the purposes hereof on the earlier of (i) the date on which the Shareholder Indemnitee notifies RSI in writing of any assertion by the Internal Revenue Service, formal or informal, of a position to the effect that such amounts might
be required to be paid, or (ii) the date on which the Shareholder Indemnitee delivers to RSI a copy of an opinion of the tax advisor to such Indemnitee providing that it is more likely than not that the Shareholder Indemnitee is liable for such
Extra Taxes and Extra Tax Costs (in either case, a “Potential Adverse Determination Date”), unless in either event RSI notifies such Shareholder Indemnitee in writing within ten days of the Potential Adverse Determination Date that,
pursuant to the provisions of this section, it will indemnify the Shareholder Indemnitee for (a) all interest, penalties, and similar charges accruing with respect to such Extra Taxes and Extra Tax Costs from the Potential Adverse Determination
Date until the earlier of thirty (30) days following a “final determination” within the meaning of Section 1313 of the Code that the Shareholder is required to pay Extra Taxes and/or Extra Tax Costs or ten (10) days
following written notice from RSI to such Shareholder Indemnitee to pay all such Extra Taxes and Extra Tax Costs as to which a Potential Adverse Determination Date has occurred (in either case, the “Delayed Payment Date”), and (b) all
legal and accounting costs and expenses incurred in connection with any challenge or assertion by the Internal Revenue Service (it being understood that the Shareholder Indemnitee shall not in any event have any duty to contest any such challenge
except, and only to the extent that, RSI bears any and all costs associated therewith), in which event Extra Taxes and Extra Tax Costs shall be considered payable for purposes hereof on the Delayed Payment Date. The obligations of RSI pursuant to
this Section 3(d) are in addition to, and not in lieu of, the obligations of HQ Surviving Corporation and HQGW under Section 7(j) of the Merger Agreement. The provisions of Section 5(a), 5(b), 5(c) and 5(d) shall not apply with
respect to this Section 3(d). 
  
 4. Other
Indemnification. 
  
 (a) Other
Indemnification by the Shareholders. (W) The Shareholders severally, based on each such Shareholder’s respective Ownership Percentage, shall indemnify the RSI Indemnitees against and hold them harmless from any Company Level Loss
(other than 

  

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any relating to Taxes, for which indemnification provisions are set forth in Section 3(a), and any relating to the Shareholder Litigation, for which
indemnification provisions are set forth in Section 4)(a)(X)) arising from, relating to or otherwise in respect of any inaccuracy of any representation or warranty of HQGW contained in the Merger Agreement (other than the representations set
forth in Sections 4(A)(b) and 4(A)(ee) of the Merger Agreement, for which indemnification provisions are set forth in Section 4(a)(X) below) or in any certificate delivered pursuant thereto or in connection therewith at the time made or deemed
made (regardless of whether or not VANTAS or RSI was aware of such failure on or prior to the Effective Time). 
  
 (X) All Shareholders severally, based on each such Shareholder’s respective Ownership Percentage, shall indemnify the RSI Indemnitees against and
hold them harmless from RSI’s Indemnification Share of any Company Level Loss and from any claims, causes of action or other proceedings under which any RSI Indemnitee may be subject to liability arising from, relating to, or otherwise in
respect of any inaccuracy of the representations set forth in Section 4(A)(b) and 4(A)(ee) of the Merger Agreement. CarrAmerica shall indemnify the RSI Indemnitees against and hold them harmless from RSI’s Indemnification Share of any
Company Level Loss and from any claims, causes of action or other proceedings under which any RSI Indemnitee may be subject to liability arising from, relating to, or otherwise in respect of the Shareholder Litigation. 
  
 (Y) Each Shareholder severally with respect to any Direct Loss attributable
to itself only shall indemnify the RSI Indemnitees against and hold them harmless from any such Direct Loss directly or indirectly suffered or incurred by any such RSI Indemnitee. 
  
 (Z) CarrAmerica shall indemnify the RSI Indemnitees against and hold them harmless from any Company Level Loss directly or
indirectly suffered or incurred by any such RSI Indemnitee arising from, relating to or otherwise in respect of any inaccuracy of the representations and warranties of HQ UK and HQ LuxCo contained in the UK Agreement or in any certificate delivered
pursuant thereto or in connection therewith at the time made or deemed made (regardless of whether or not VANTAS or RSI was aware of such failure on or prior to the Closing Date). 
  
 (b) Other Indemnification by RSI. (Y) RSI shall indemnify the Shareholder Indemnitees against
and hold them harmless from any Company Level Loss or Direct Loss (other than any relating to Taxes, for which indemnification provisions are set forth in Section 3(a)) directly or indirectly suffered or incurred by them arising from, relating
to or otherwise in respect of any inaccuracy of any representation or warranty of RSI or VANTAS contained in the Merger Agreement (other than the representations set forth in Section 5(A)(b) of the Merger Agreement, for which indemnification
provisions are set forth in Section 5(b)(Z) below), the UK Agreement or the Stock Purchase Agreement or in any certificate delivered pursuant to either of the foregoing or in connection therewith at the time made or deemed made (regardless of
whether or not any Shareholders were aware of such failure on or prior to the Effective Time). 
  

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 (Z) RSI shall indemnify the Shareholder Indemnitees against and hold them harmless from the
Shareholders’ Indemnification Share of any Company Level Loss and from any claims, causes of actions or other proceedings under which any Shareholder Indemnitee may be subject to liability (i) arising from, relating to, or otherwise in
respect of the matter disclosed in clause (ii) of Schedules 5(r) or 5(u) to the Merger Agreement or any inaccuracy of the representations set forth in Section 5(A)(b) of the Merger Agreement or (ii) threatened or initiated by or on
behalf of any holder of VANTAS Common Stock or Preferred Stock that relate to the execution and delivery of the Merger Agreement or to any of the transactions contemplated therein, or (iii) arising from, relating to, or otherwise in respect of
the offer or sale of equity securities of HQGW or Holdco to any third party in connection with the transactions contemplated by the Merger Agreement, the Stock Purchase Agreement or the UK Agreement; provided that, RSI shall not be required
to make any payment under this clause (Z) to the extent of any amounts that the Shareholders are required to pay under Section 4(a) hereof with respect to the same facts and circumstances that give rise to a claim under this clause (Z).

  
 (ZZ) Except with respect to any matter referred to in clause
(ZZZ) below, in the event Holdco is required to pay any amounts under (i) Section 11(a) of that certain Exchange Agreement dated as of May 31, 2000 by and between Holdco and RSI (the “Exchange Agreement”) or otherwise as a
result of a breach of the representations and warranties of Holdco contained in Section 2 of the Exchange Agreement, (ii) Section 11(a) of any of those certain Purchase Agreements, each dated as of May 31, 2000, by and between,
in each case, RSI, on the one hand, and the Investor specified in each such Agreement, on the other hand, or otherwise as a result of a breach of representations and warranties of RSI contained in Section 2 of the Purchase Agreements, or
(iii) Section 11(a) of the Purchase Agreement dated as of May 31, 2000 by and among Holdco, RSI and Equity Office Properties Trust or otherwise as a result of a breach of the representations and warranties of Holdco contained in
Sections 2 and 3 of such Purchase Agreement (all of the foregoing obligations being hereinafter referred to as “Holdco Indemnification Obligations”), RSI shall indemnify the Shareholder Indemnitees and hold them harmless in an amount equal
to the product of any amounts paid by Holdco under the Holdco Indemnification Obligations and the Shareholders’ Indemnification Share; provided that, RSI shall not be required to make any payment under this clause (Z) to the extent
of any amounts that the Shareholders are required to pay under Section 4(a) hereof with respect to the same facts and circumstances that give rise to a claim under this clause (ZZ). 
  
 (ZZZ) In the event Holdco pays any Holdco Indemnification Obligations under Section 12(a) of any Purchase Agreement
arising from, relating to or otherwise in respect of any act or failure to act of RSI or any breach of any of RSI’s representations under Section 3 of any such Purchase Agreement, then in lieu of the indemnification provisions of clause
(ZZ) above, RSI shall indemnify and hold Holdco harmless from the entire amount of such payment. 
  
 5. Limitations on Indemnification. Any claim brought under Section 3 or 4 is subject in each case to the following limitations and restrictions:

  
 (a) Damages Net of Insurance, etc. The
amount of any Company Level Loss for which indemnification is provided under this Agreement shall be net of any amounts 

  

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actually recovered by the Second Step Surviving Corporation under insurance policies with respect to such Company Level Loss (which the Second Step Surviving
Corporation shall use commercially reasonable efforts to recover under such policies) and the amount of any Loss shall be (i) increased to take account of any net Tax cost incurred by the indemnified party arising from the receipt of indemnity
payments hereunder (grossed up for such increase), and (ii) reduced to take account of any net Tax benefit realized by the Second Step Surviving Corporation arising from the incurrence or payment of any such Loss. In computing the amount of any
such Tax cost or Tax benefit, the indemnified party or the Second Step Surviving Corporation, as the case may be, shall be deemed to recognize all other items of income, gain, loss, deduction or credit before recognizing any item arising from the
receipt of any indemnity payment hereunder or the incurrence or payment of any indemnified Loss. Any indemnity payment under this Agreement shall be treated as an adjustment to the Merger Consideration for tax purposes, unless a final determination
(which shall include the execution of a Form 870-AD or successor form) with respect to the indemnified party causes any such payment not to be treated as an adjustment to the Merger Consideration for United States Federal income tax purposes.

  
 (b) Minimum Claim Amounts. 

 
 (i) Claims made by the RSI Indemnitees with respect to Losses for which
indemnification is provided pursuant to Section 3(a), 3(c), 4(a)(W) or 4(a)(Z) shall be required to be paid if and only if the aggregate amount of all such Losses, but for this Section 5(b)(i), exceed on a cumulative basis $6,219,000 (the
“Holder Basket”), in which event the entire amount of such Losses shall be recoverable; it being understood that claims with respect to Losses or damages arising from claims, causes of action or other proceedings for which indemnification
is provided pursuant to Section 4(a)(X) or 4(a)(Y) shall not be subject to the foregoing limitation. 
  
 (ii) Claims made by the Shareholder Indemnitees with respect to Losses for which indemnification is provided pursuant to Section 3(b), 3(c) or
4(b)(Y) (with respect to claims for Company Level Losses) shall be required to be paid if and only if the aggregate amount of all such Losses, but for this Section 5(b)(ii), exceed on a cumulative basis $25,510,000 (the “RSI Basket”),
in which event the entire amount of such Losses shall be recoverable; it being understood that claims with respect to Direct Losses for which indemnification is provided pursuant to Section 4(b)(Y) or Losses, claims, causes of action or other
proceedings pursuant to Section 4(b)(Z), 4(b)(ZZ) or 4(b)(ZZZ)) shall not be subject to the foregoing limitation. 
  
 (iii) In determining whether the Shareholder Indemnitees or RSI Indemnitees, as the case may be, is or are entitled to indemnification under
Section 4 (other than under Section 4(b)(ZZ) or 4(b)(ZZZ)), the representations and warranties of the Shareholders and HQGW, or RSI and VANTAS, as applicable, shall not be 

  

 11 

 
deemed qualified by any references to material or materiality contained therein and any inaccuracies therein shall be determined without regard to whether
such inaccuracy constitutes a Company Material Adverse Effect or a VANTAS Material Adverse Effect; provided, however, in no event will any Shareholder Indemnitees or RSI Indemnitees, as the case may be, be entitled (A) to recovery for any Loss
relating to or arising out of an inaccuracy of any representation or warranty of VANTAS, RSI, HQGW or any Shareholder, as the case may be, even if such Shareholder Indemnitee or RSI Indemnitee, as applicable, would be entitled to indemnification
pursuant to Section 5(b)(i) or 5(b)(ii), but for this Section 5(b)(iii), unless the Loss related thereto exceeds $50,000, (B) to aggregate items referred to in clause (A) of this Section 5(b)(iii) for the purpose of
exceeding the limitation set forth in clause (A) of this Section 5(b)(iii), or (C) to otherwise submit the items referred to in clause (A) of this Section 5(b)(iii) as Losses reimbursable pursuant to this Section 5.

  
 (c) Percentage Recovery. 

 
 (i) If cumulative Company Level Losses under Sections 3(a), 3(c), 4(a)(W)
and 4(a)(Z) exceed the Holder Basket, the indemnification amount to be paid to the applicable RSI Indemnitees shall be equal to RSI’s Indemnification Share of the entire amount of Company Level Losses. In all events (other than as expressly
limited to RSI’s Indemnification Share in Section 4(a)(X)), 100% of the entire amount of Losses under Sections (4)(a)(X) and 4(a)(Y) shall be paid to the applicable RSI Indemnitees. 
  
 (ii) If cumulative Company Level Losses under Sections 3(b), 3(c) and
4(b)(Y) exceed the RSI Basket, the indemnification amount to be paid to the applicable Shareholder Indemnitees shall be equal to the Shareholders’ Indemnification Share of the entire amount of Company Level Losses. The indemnification amount to
be paid in respect of Company Level Losses under Section 4(b)(Z) is limited to the Shareholders’ Indemnification Share thereof and the indemnification amount to be paid under Section 4(b)(ZZ) or 4(b)(ZZZ) shall not be limited in any
respect. In all events, 100% of the entire amount of Losses that constitute Direct Losses of any Shareholder Indemnitee shall be paid to the applicable Shareholder Indemnitees. 
  
 (d) Other Limitations on Recovery. 
  
 (i) Except as otherwise provided in the immediately following sentence, claims made by any RSI Indemnitee against any
Shareholder pursuant to this Agreement shall be made solely against the Shareholder Indemnification Shares or Cash Collateral deposited into the Escrow Account by such Shareholder. Claims made by any RSI Indemnitee against any Shareholder with
respect to Direct Losses and under Section 4(a)(X) shall be made first against the Shareholder Indemnification Shares or Cash Collateral deposited into the Escrow 

  

 12 

 
Account by such Shareholder in accordance with Section 7, but only after any and all amounts in respect of Valid Claims with respect to the Company
Level Losses shall have first been disbursed in accordance with Section 7; provided, that if the amount available in the Escrow Account attributable to such Shareholder (valuing any Indemnification Shares in accordance with Section 7) is
less than the full amount of the claim, or if the Escrow Account has been terminated, a claim may be made directly against such Shareholder, which shall be personally liable for the remaining amount of the claim. Except as set forth in the preceding
sentence, no Shareholder shall have any personal liability to any RSI Indemnitee in any respect pursuant to this Agreement or otherwise. 
  
 (ii) Except as otherwise provided in the immediately following sentence, claims made by any Shareholder Indemnitee against RSI pursuant to this Agreement
shall be made solely against the RSI Indemnification Shares or Cash Collateral deposited into the Escrow Account by RSI. Claims made by any Shareholder Indemnitee against RSI with respect to Direct Losses and under Section 4(b)(ZZ) and
4(b)(ZZZ) shall be made first against the RSI Indemnification Shares or cash collateral deposited into the Escrow Account by RSI in accordance with Section 7, but only after any and all amounts in respect of Valid Claims with respect to Company
Level Losses shall have first been disbursed in accordance with Section 7; provided that if the amount available in the Escrow Account attributable to RSI (valuing any Indemnification Shares in accordance with Section 7) is less than the
full amount of the claim, or if the Escrow Account has been terminated, a claim may be made directly against RSI, which shall be personally liable for the remaining amount of the claim. Except as set forth in the immediately preceding sentence, RSI
shall not have any personal liability to any Shareholder Indemnitee in any respect pursuant to this Agreement or otherwise. 
  
 (e) Termination of Indemnities. Notwithstanding anything in this Agreement to the contrary, the obligations of the Shareholders and
RSI to provide indemnification under this Agreement shall terminate and be extinguished forever at the close of business on June 30, 2001, except for (i) claims under Section 3 hereof and claims under Section 4 hereof that relate
to the representations concerning authorization and benefit plan matters set forth in Sections 4(b), 4(r), 5(b) and 5(k) of the Merger Agreement, Section 4(b)(ZZ) and 4(b)(ZZZ) hereof, and Sections 2.2 and 2.16 of the UK Agreement and the
representations set forth in the Stock Purchase Agreement, which claims may be made until the expiration of the applicable statute of limitations; provided, however, that the obligations of the Shareholders and/or RSI to provide indemnification
under this Agreement shall not terminate at such time with respect to any claim that has been properly asserted by delivering a notice of such claim to the indemnifying party in accordance with the terms hereof and such claim has not been paid or
otherwise resolved as of the date on which such indemnity obligation would otherwise terminate pursuant to this Section 5(e). If a claim has been properly asserted and not paid or resolved as described above, the indemnity obligations of the
Shareholders or RSI, as applicable, shall 

  

 13 

 
continue beyond June 30, 2001, but (i) the indemnity obligation shall continue only with respect to the claim in question, and only until such
claim is paid or otherwise finally resolved, and (ii) any amounts in the Escrow Account not reasonably determined by the indemnified party to be needed to cover the disputed claim shall be released from the Escrow Account to the Shareholders or
RSI, as applicable, upon written instructions to the Escrow Agent in connection therewith by the indemnified party upon which the Escrow Agent shall be entitled to conclusively rely. 
  
 6. Other Tax Matters. 
  
 (a) For any taxable period of HQGW that includes (but does not end on) the Closing Date, RSI shall, or shall cause the Second Step
Surviving Corporation to, timely prepare and file with the appropriate taxing authorities all Tax Returns required to be filed; provided, however, that no such Tax Return shall be filed without the written consent of the Representative, which
consent shall not be unreasonably withheld. The Shareholders shall reimburse RSI (in accordance with the procedures set forth in Sections 3(a) and 3(c)) for any amount owed by the Shareholders to RSI pursuant to such Sections (subject to the
limitation set forth in Section 5) with respect to the taxable periods covered by such Tax Returns. For any taxable period of HQGW that ends on or before the Closing Date, HQGW shall timely prepare and file with the appropriate taxing
authorities all Tax Returns required to be filed and shall pay all Taxes due with respect to such Tax Returns; provided, however, that no such Tax Return shall be filed without the prior written consent of RSI and the Representative, which consent
shall not be unreasonably withheld. RSI and the Shareholders agree to cause HQGW to file all Tax Returns for the taxable period including the Closing Date on the basis that the relevant taxable period ended as of the close of business on the Closing
Date, unless the relevant taxing authority will not accept a Tax Return filed on that basis. 
  
 (b) RSI shall cause HQGW to, and the Shareholders, RSI and the Second Step Surviving Corporation shall, reasonably cooperate, and cause
their respective Affiliates, officers, employees, agents, auditors and other representatives reasonably to cooperate, in preparing and filing all Tax Returns and in resolving all disputes and audits with respect to all taxable periods relating to
Taxes, including by maintaining and making available to each other all records necessary in connection with Taxes, provided, however, in no event shall RSI be required to provide any Tax Return to the Shareholders and the Shareholders shall not be
required to provide to RSI any Tax Return not actually in their possession. RSI recognizes that the Shareholders will need access, from time to time, after the Closing Date, to certain accounting and Tax records and information held by the Second
Step Surviving Corporation to the extent such records and information pertain to events occurring prior to the Closing Date acting as representative for the Shareholders; therefore, RSI agrees after the Closing to cause the Second Step Surviving
Corporation to allow the Representative, and its agents and other representatives, at times and dates mutually acceptable to the parties, reasonable access to such records from time to time, during normal business hours and at the Shareholders’
expense. 
  

 14 

 (c) An amount equal to 100% of the amount or economic benefit of any refunds, credits or
offsets of Taxes of HQGW for any Pre-Closing Tax Period (including that portion of a Straddle Period ending on the Closing Date) shall be for the account of the Shareholders. Notwithstanding the foregoing, (i) any such refunds, credits or
offsets of Taxes shall be for the account of the Second Step Surviving Corporation and RSI to the extent such refunds, credits or offsets of Taxes are attributable (determined on a marginal basis) to the carryback from a taxable period beginning
after the Closing Date (or the portion of a Straddle Period that begins on the day after the Closing Date) of items of loss, deduction or credit, or other tax items, of the Second Step Surviving Corporation (or any of its Affiliates, including RSI)
and (ii) to the extent RSI or the Second Step Surviving Corporation, depending on which entity made such payment, pays after the Closing Date any amount with respect to Taxes for any such Pre-Closing Tax Period, refunds of such Taxes
(determined on a first-in, first-out basis) shall be for the account of RSI or the Second Step Surviving Corporation, depending on which entity made such payment. The amount or economic benefit of any refunds, credits or offsets of Taxes of HQGW or
the Second Step Surviving Corporation for any taxable period beginning after the Closing Date shall be for the account of the Second Step Surviving Corporation and RSI. The amount or economic benefit of any refunds, credits or offsets of Taxes of
HQGW or the Second Step Surviving Corporation for any Straddle Period shall be equitably apportioned between the Shareholders, on the one hand, and RSI and the Second Step Surviving Corporation, on the other hand. Each party shall forward, and shall
cause its Affiliates to forward, to the party entitled pursuant to this Section 6(c) to receive the amount or economic benefit of a refund, credit or offset to Tax the amount of such refund, or the economic benefit of such credit or offset to
Tax, within 30 days after such refund is received or after such credit or offset is allowed or applied against other Tax liability, as the case may be; provided, however, that any such amounts payable pursuant to this Section 6(c) shall be net
of any Tax cost or Tax benefit to the party making payment pursuant to this Section 6(c) and its Affiliates attributable to the receipt of such refund, credit or offset to Tax and/or the payment of such amounts pursuant to this
Section 6(c). RSI and the Shareholders shall treat any amounts payable pursuant to this Section 6(c) as an adjustment to the Merger Consideration unless a final determination (which shall include the execution of a Form 870-AD or successor
form) causes any such payment not to be treated as an adjustment to the Merger Consideration for United States Federal income Tax purposes. 
  
 (d) The Shareholders shall supply any necessary information to enable the Second Step Surviving Corporation to file any amended
consolidated, combined or unitary Tax Returns for taxable years ending on or prior to the Closing Date which are required as a result of examination adjustments made by the IRS or by the applicable state, municipal, provincial, local or foreign
taxing authorities for such taxable years as finally determined; provided, however, that no such Tax Return shall be filed without the prior written consent of the Representative and RSI, which consent shall not be unreasonably withheld. 

 
 For those jurisdictions in which separate Tax Returns are filed by HQGW,
any required amended returns resulting from such examination adjustments, as finally determined, shall be prepared by the Second Step Surviving Corporation or RSI and furnished to the Representative, for approval at least 30 days prior to the due
date for filing such Tax Returns. 
  

 15 

 (e) All transfer, documentary, sales, use, registration and other such Taxes (including
all applicable real estate transfer or gains Taxes and stock transfer Taxes) and related fees (including any penalties, interest and additions to Tax) incurred in connection with the Merger or otherwise in connection with this Agreement and the
transactions contemplated hereby that are attributable to the assets of HQGW and its Subsidiaries shall be paid by the Shareholders and that are attributable to the assets of VANTAS and its Subsidiaries shall be paid by RSI. The Representative and
RSI shall cooperate in timely preparing and filing all Tax Returns as may be required to comply with the provisions of such Tax laws. 
  
 7. Indemnification Procedures. 
  
 (a) Notice of a Claim. In order for a party to be entitled to indemnification pursuant to this Agreement, the indemnified party
shall notify the indemnifying party in writing of any claim that it reasonably believes is likely to result in a Loss within ten (10) days of the date such party receives written notice or otherwise becomes aware of the claim, describing in
reasonable detail the claim (including whether such claim is for Direct Losses or Company Level Losses) and the estimated amount of the claim; provided, however, that the failure of an indemnified party so to notify the indemnifying party of the
claim shall not relieve the indemnifying party of its obligations under this Agreement except to the extent the indemnifying party shall have been actually prejudiced as a result of such failure (except that the indemnifying party shall not be
liable for any expenses incurred during the period in which the indemnified party failed to give notice). The indemnified party shall deliver to the indemnifying party copies of all notices and documents (including court papers) received by the
indemnified party relating the claim along with the notice referred to above. If the indemnifying party does not object in writing to the availability of the indemnity under this Agreement within twenty (20) days after receiving such notice,
then the claim set forth in the notice by such party shall be considered a valid claim under this Agreement (a “Valid Claim”), and such Valid Claim (to the extent payable after giving effect to the limitations set forth in
Section 5(b)) shall be paid in accordance with Section 7 hereof. If any indemnifying party objects in writing as to the availability of the indemnity with respect to such claim within such twenty (20) day period, then the indemnifying
party and the indemnified party shall proceed in good faith to negotiate a resolution of such dispute and, if not resolved through negotiations, such dispute shall be resolved by litigation in an appropriate court of competent jurisdiction.

  
 (b) Defense of Third Party Claims. If
any Valid Claim arises out of or involves a claim or demand made by any person against the Second Step Surviving Corporation or the indemnified party (a “Third Party Claim”), then the indemnifying party shall be entitled to participate in
the defense thereof and, if it so chooses and acknowledges its obligation to indemnify the indemnified party therefor, to assume the defense thereof with counsel selected by the indemnifying party; provided, that such counsel is not reasonably
objected to by the indemnified party; and provided further, that if either (i) any indemnified party reasonably concludes that there may be one or more legal defenses available to it that are different from or in addition to (and are
inconsistent with) those available to the indemnifying party, or that a conflict or potential conflict exists between any indemnified party, on the one hand, and any 

  

 16 

 
indemnifying party, on the other hand (a “Conflicting Matter”), or (ii) the Third Party Claim seeks an order, injunction or other equitable
relief or relief for other than money damages which the indemnified party reasonably concludes cannot be separated from any related claim for money damages (a “Specific Performance Matter”), the indemnifying party will not have the right
to direct the defense of such action on behalf of such indemnified party with respect to such Conflicting Matter or Specific Performance Matter, and the indemnified party shall direct the defense of the portion of such claim that constitutes a
Conflicting Matter or Specific Performance Matter through counsel (including a local counsel, if necessary) of its choosing, at the expense of the indemnified party. Should the indemnifying party so elect to assume the defense of a Third Party
Claim, the indemnifying party shall not be liable to the indemnified party for legal expenses subsequently incurred by the indemnified party in connection with the defense thereof. If the indemnifying party assumes such defense, the indemnified
party shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the indemnifying party, it being understood that the indemnifying party shall control such defense.
Notwithstanding the foregoing, the indemnifying party shall be liable for the fees and expenses of counsel employed by the indemnified party for any period during which the indemnifying party has failed to assume the defense thereof (other than
during the period prior to the time the indemnified party shall have given notice of the Third Party Claim as provided above). 
  
 If the indemnifying party so elects to assume the defense of any Third Party Claim, the indemnified party shall cooperate with the indemnifying party in
the defense or prosecution thereof. Such cooperation shall include the retention and (upon the indemnifying party’s request) the provision to the indemnifying party of records and information which are reasonably relevant to such Third Party
Claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Whether or not the indemnifying party shall have assumed the defense of a Third Party Claim,
the indemnified party shall not admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the indemnifying party’s prior written consent (which consent shall not be unreasonably withheld). If the
indemnifying party shall have assumed the defense of a Third Party Claim, the indemnified party shall agree to any settlement, compromise or discharge of a Third Party Claim which the indemnifying party may recommend and which by its terms obligates
the indemnifying party to pay the full amount of the liability in connection with such Third Party Claim, which releases the indemnifying party completely in connection with such Third Party Claim and which would not otherwise adversely affect the
Indemnified Party. 
  
 (c) Procedures Unique to
Tax Claims. With respect to any claim made by any taxing authority (a “Tax Claim”) covered by Section 3(a) hereof, the Representative shall control all proceedings and may make all decisions taken in connection with such Tax Claim
(including selection of counsel) and, without limiting the foregoing, may in its sole discretion pursue or forego any and all administrative appeals, proceedings, hearings and conferences with any taxing authority with respect thereto, and may, in
its sole discretion, either pay the Tax claimed and sue for a refund where applicable law permits such refund suits or contest the Tax 

  

 17 

 
Claim in any permissible manner; provided, however, that the Representative must first consult in good faith with RSI before taking any action with respect
to the conduct of a Tax Claim. Notwithstanding the foregoing, (i) the Representative shall not settle any Tax Claim without the prior written consent of RSI, which consent shall not be unreasonably withheld, (ii) RSI, and counsel of its
own choosing, shall have the right to participate fully in all aspects of the defense of such Tax Claim, (iii) the Representative shall inform RSI, reasonably promptly in advance, of the date, time and place of all administrative and judicial
meetings, conferences, hearings and other proceedings relating to such Tax Claim, (iv) RSI shall be entitled to have its representatives (including counsel, accountants and consultants) attend and participate in any such administrative and
judicial meetings, conferences, hearings and other proceedings relating to such Tax Claim and (v) the Representative shall provide to RSI all information, document requests and responses, proposed notices of deficiency, notices of deficiency,
revenue agent’s reports, protests, petitions and any other documents relating to such Tax Claim promptly upon receipt from, or in advance of submission to (as the case may be), the relevant taxing authority. 
  
 With respect to any Tax Claim covered by Section 3(b) hereof, RSI shall
control all proceedings and may make all decisions taken in connection with such Tax Claim (including selection of counsel) and, without limiting the foregoing, may in its sole discretion pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with any taxing authority with respect thereto, and may, in its sole discretion, either pay the Tax claimed and sue for a refund where applicable law permits such refund suits or contest the Tax Claim in any
permissible manner; provided, however, that RSI must first consult in good faith with the Representative before taking any action with respect to the conduct of a Tax Claim. Notwithstanding the foregoing, (i) RSI shall not settle any Tax Claim
without the prior written consent of the Representative, which consent shall not be unreasonably withheld, (ii) the Representative, and counsel of its own choosing, shall have the right to participate fully in all aspects of the defense of such Tax
Claim, (iii) RSI shall inform the Representative, reasonably promptly in advance, of the date, time and place of all administrative and judicial meetings, conferences, hearings and other proceedings relating to such Tax Claim, (iv) the
Representative shall be entitled to have its representatives (including counsel, accountants and consultants) attend and participate in any such administrative and judicial meetings, conferences, hearings and other proceedings relating to such Tax
Claim and (v) RSI shall provide to the Representative all information, document requests and responses, proposed notices of deficiency, notices of deficiency, revenue agent’s reports, protests, petitions and any other documents relating to
such Tax Claim promptly upon receipt from, or in advance of submission to (as the case may be), the relevant taxing authority. 
  
 The Representative and RSI shall jointly control and participate in all proceedings taken in connection with any Tax Claim relating to Taxes of HQGW and
its Subsidiaries for a Straddle Period. Neither the Representative nor RSI shall settle any such Tax Claim without the prior written consent of the other. 
  
 RSI, on the one hand, and each Shareholder, on the other hand, shall, reasonably cooperate in contesting any Tax Claim, which cooperation shall include
the retention and, upon 

  

 18 

 
request, the provision to the requesting person of records and information which are reasonably relevant to such Tax Claim, and making employees available on
a mutually convenient basis to provide additional information or explanation of any material provided hereunder or to testify at proceedings relating to such Tax Claim. 
  
 8. Escrow Disbursements in Respect of Valid Claims. 
  
 (a) Upon receipt of (i) a written notice signed jointly by a duly authorized officer of the
Representative and a duly authorized officer of RSI or (ii) a certified copy of a final, non-appealable judgment of a court of competent jurisdiction accompanied by a certificate of the prevailing party reasonably satisfactory to the Escrow
Agent to the effect that said judgment is final and non-appealable, specifying the amount of Loss to be paid by RSI or the Shareholders, as the case may be, the Escrow Agent shall distribute to the RSI Indemnitee or the Shareholder Indemnitee, as
the case may be, from the Escrow Account, a number of Indemnification Shares (each such share being deemed to have a value equal to the Market Value) and any Cash Collateral equal in value to such Shareholders’ or RSI’s, as the case may
be, share of the total amount of Loss specified in such notice, which notice shall take into account the limitations set forth in Section 5(b) hereof. If the Indemnification Shares (based on the Market Value) and Cash Collateral contributed by
a Shareholder or RSI remaining in the Escrow Account are insufficient to satisfy such Shareholder’s or RSI’s share of the total amount of Loss specified in such notice, the Escrow Agent shall distribute to the RSI Indemnitee or the
Shareholder Indemnitee, as the case may be, all remaining Indemnification Shares and Cash Collateral deposited by such Shareholder or RSI, as the case may be, held in the Escrow Account in accordance with written instructions from the RSI Indemnitee
or Shareholder Indemnitee, as the case may be, upon which the Escrow Agent shall be entitled to conclusively rely. 
  
 (b) Notwithstanding anything herein to the contrary, to the extent that Indemnification Shares and/or Cash Collateral are to be
distributed to the RSI Indemnitee or the Shareholder Indemnitee, as the case may be, to pay a Loss, in the absence of instructions pursuant to the proviso to this sentence (of which the Escrow Agent shall have no duty or obligation to inquire about)
given through written notice to the Escrow Agent by the Shareholder or RSI with respect to the Indemnification Shares and Cash Collateral in the Escrow Account, the Escrow Agent will satisfy the portion of such Loss payable by such Shareholder or
RSI, as the case may be, (i) first, by distributing to the RSI Indemnitee or the Shareholder Indemnitee, as the case may be, the Indemnification Shares deposited by such Shareholder or RSI, as the case may be, in the Escrow Account on the
Closing Date, and (ii) second, by distributing any Cash Collateral deposited by such Shareholder or RSI, as the case may be, in the Escrow Account; provided, that any Shareholder or RSI, as the case may be, by written notice to the Escrow
Agent, may direct that Cash Collateral referred to in clause (ii) above be distributed from the Escrow Account prior to the distribution of Indemnification Shares. This provision shall be controlling at all times unless such instructions have
been received prior to such distributions. 
  
 (c) In each case in which a party seeks the delivery by the Escrow Agent of Indemnification Shares pursuant to this Agreement, such party shall provide to the 

  

 19 

 
Escrow Agent all information, to the extent applicable, with respect to the transfer agent thereof, including without limitation, the name and contact
person. 
  
 9. Final Distribution. At the close of business
on June 30, 2001, any Indemnification Shares and Cash Collateral remaining in the Escrow Account shall be returned in whole or in part by the Escrow Agent to the respective Shareholders or RSI who contributed such Indemnification Shares or Cash
Collateral upon and to the extent set forth in a joint notification by the Representative and RSI. 
  
 10. Limitation of Duties. The duties, responsibilities and obligations of Escrow Agent shall be limited to those expressly set forth herein and no
duties, responsibilities or obligations shall be inferred or implied. Escrow Agent shall not be subject to, nor required to comply with, any other agreement between or among any or all of the Depositors or to which any Depositor is a party, even
though reference thereto may be made herein, or to comply with any direction or instruction (other than those contained herein or delivered in accordance with this Agreement) from any Depositor or an entity acting on its behalf. Escrow Agent shall
not be required to expend or risk any of its own funds or otherwise incur any financial or other liability in the performance of any of its duties hereunder. 
  
 11. Legal Process. (a) If at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form
of judicial or administrative process which in any way affects the Escrow Property (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of the Escrow Property),
Escrow Agent is authorized to comply therewith in any manner it or legal counsel of its own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or
administrative process, Escrow Agent shall not be liable to any of the parties hereto or to any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have
been without legal force or effect. 
  
 Escrow Agent shall not be liable for any
action taken or omitted or for any loss or injury resulting from its actions or its performance or lack of performance of its duties hereunder in the absence of gross negligence or willful misconduct on its part. In no event shall Escrow Agent be
liable (i) for acting in accordance with or relying upon any instruction, notice, demand, certificate or document from any Depositor or any entity acting on behalf of any Depositor, (ii) for any indirect, consequential, punitive or special
damages, regardless of the form of action and whether or not any such damages were foreseeable or contemplated, (iii) for the acts or omissions of its nominees, correspondents, designees, agents, subagents or subcustodians, (iv) for the
investment or reinvestment of any cash held by it hereunder, in each case in good faith, in accordance with the terms hereof, including without limitation any liability for any delays (not resulting from its gross negligence or willful misconduct)
in the investment or reinvestment of the Escrow Property, or any loss of interest incident to any such delays, or (v) for an amount in excess of the value of the Escrow Property, valued as of the date of deposit, but only to the extent of
direct money damages. 
  

 20 

 (b) Escrow Agent may consult with its legal counsel as to any matter relating to this
Agreement, and Escrow Agent shall not incur any liability in acting in good faith in accordance with any advice from such counsel. 
  
 (c) Escrow Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder
by reason of any occurrence beyond the control of Escrow Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, or the unavailability of the Federal
Reserve Bank wire or facsimile or other wire or communication facility). 
  
 (d) The Escrow Agent shall be entitled to rely upon any order, judgment, certification, demand, notice, instrument or other writing delivered to it hereunder without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity or the service thereof. The Escrow Agent may act in reliance upon any instrument or signature believed by it to be genuine and may assume that any person purporting to give receipt
or advice to make any statement or execute any document in connection with the provisions hereof has been duly authorized to do so. 
  
 12. Authority; Validity. Escrow Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents
or securities deposited hereunder, or for any description therein, or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security or endorsement. The Escrow Agent shall not
be called upon to advise any party as to the wisdom in selling or retaining or taking or refraining from any action with respect to any securities or other property deposited hereunder. 
  
 13. Duty of Care. The Escrow Agent shall not be under any duty to give the Escrow Property held by it hereunder any
greater degree of care than it gives its own similar property and shall not be required to invest any funds held hereunder except as directed in this Agreement. Uninvested funds held hereunder shall not earn or accrue interest. 
  
 14. Liability to Escrow Agent. Depositors, jointly and severally,
shall be liable for and shall reimburse and indemnify Escrow Agent (and any predecessor Escrow Agent) and hold Escrow Agent harmless from and against any and all claims, losses, actions. liabilities, costs, damages or expenses (including reasonable
attorneys’ fees and expenses) (collectively “Escrow Agent Losses”) arising from or in connection with its administration of this Agreement, except to the extent such Escrow Agent Losses are caused by its own gross negligence or
willful misconduct. In addition, when the Escrow Agent acts on any information, instructions or communications, (including, but not limited to, communications with respect to the delivery of securities or the wire transfer of funds) sent by telex or
facsimile, the Escrow Agent, absent gross negligence, shall not be responsible or liable in the event such communication is not an authorized or authentic communication of the Depositor(s) or is not in the form the Depositor(s) sent or intended to
send (whether due to fraud, distortion or otherwise). The Depositor(s) shall 

  

 21 

 
jointly and severally indemnify the Escrow Agent against any Loss it may incur with its acting in accordance with any such communication. This paragraph
shall survive the termination of this Agreement or the removal of the Escrow Agent. 
  
 15. Disputes; Ambiguities. (a) In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by Escrow Agent hereunder, Escrow Agent may, in its sole
discretion, refrain from taking any action other than retain possession of the Escrow Property, unless Escrow Agent receives written instructions, signed by the Representative and RSI, which eliminates such ambiguity or uncertainty. 
  
 (b) In the event of any dispute between or conflicting
claims by or among the Depositors with respect to any Escrow Property, Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such Escrow Property so long as such
dispute or conflict shall continue, and Escrow Agent shall not be or become liable in any way to the Depositors for failure or refusal to comply with such conflicting claims, demands or instructions. Escrow Agent shall be entitled to refuse to act
until, in its sole discretion, either (i) such conflicting or adverse claims or demands shall have been determined by a final order, judgment or decree of a court of competent jurisdiction, which order, judgment or decree is not subject to
appeal, or settled by agreement between the conflicting parties as evidenced in a writing satisfactory to Escrow Agent or (ii) Escrow Agent shall have received security or an indemnity satisfactory to it sufficient to hold it harmless from and
against any and all Escrow Agent Losses which it may incur by reason of so acting. The Escrow Agent shall act on such court order without further question. Escrow Agent may, in addition, elect, in its sole discretion, to commence an interpleader
action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary. The costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with such proceeding shall be paid by, and shall
be deemed a joint and several obligation of, the Depositors. 
  
 (c) The Escrow Agent shall have no responsibility for the contents of any writing of the arbitrators or any third party contemplated herein as a means to resolve disputes and may conclusively rely without any
liability upon the contents thereof. 
  
 16. Interest in Escrow
Property. The Escrow Agent does not have any interest in the Escrow Property deposited hereunder but is serving as escrow holder only and having only possession thereof. The Depositors shall pay or reimburse the Escrow Agent upon request for any
transfer taxes or other taxes relating to the Escrow Property incurred in connection herewith and shall indemnify and hold harmless the Escrow Agent from any amounts that it is obligated to pay in the way of such taxes. Any payments of income from
the Escrow Account shall be subject to withholding regulations then in force with respect to United States taxes. The Depositors will provide the Escrow Agent with appropriate W-9 forms for tax I.D., number certifications, or W-8 forms for
non-resident alien certifications. This paragraph shall survive notwithstanding any termination of this Agreement or the resignation or removal of the Escrow Agent. 
  
 17. Due Authorization. Each Depositor hereby represents and warrants (a) that this Agreement has been duly
authorized, executed and delivered on its behalf and 

  

 22 

 
constitutes its legal, valid and binding obligation and (b) that the execution, delivery and performance of this Agreement by the Depositor(s) does not
and will not violate any applicable law or regulation. 
  
 18.
Payments to Escrow Agent. At the time of execution of this Agreement, Depositors shall pay Escrow Agent an acceptance fee of $10,000. In addition, Depositors shall pay Escrow Agent a fee of $60,000 per annum or part thereof payable upon
execution of this Agreement and thereafter on each anniversary date of this Agreement and Depositors agree to reimburse the Escrow Agent for all reasonable expenses, disbursements and advances incurred or made by the Escrow Agent in performance of
its duties hereunder (including reasonable fees, expenses and disbursements of its counsel). The obligations contained in this Section shall be a joint and several obligation of the Depositors. Without limiting the rights of the Escrow Agent under
the preceding sentence, RSI, on the one hand, and the Shareholders, on the other hand, agree as between themselves that all fees and related expenses of the Escrow Agent hereunder (including fees of its legal counsel) shall be paid one-half by RSI
and one-half by the Shareholders. 
  
 19. Fractional
Shares. No fractional shares shall be delivered to satisfy any claims. If the Indemnification Shares to be so delivered from the Escrow Account in respect of any Shareholder or RSI, as the case may be, would include a fractional share, the
parties hereto agree that the Representative and RSI may round such fraction to the nearest whole share. 
  
 20. Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or
sent by prepaid telex, cable or telecopy or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service and shall be deemed given when so delivered by hand, telexed, cabled or telecopied, or if mailed,
three days after mailing (one business day in the case of express mail or overnight courier service), as follows: 
  
 If to the Shareholders: 
 At the address set
forth opposite 
 such Shareholder’s name on the 
 signature page hereto 
  
 with a
copy to: 
 Hogan & Hartson, L.L.P., 
 Columbia Square 
 555 Thirteenth Street, N.W. 
 Washington, DC 20004 
 Telecopy No:
(202) 637-5910 
 Attention:     Warren Gorrell 
                         David
Bonser; and 
  

 23 

 If to RSI: 
  
 Reckson Service Industries, Inc. 
 10 East
50th Street 
 Suite 2700 
 New York, NY 10022 
 Telecopy No: (212) 931-8001 
 Attention:       Scott H. Rechler 
  
 with copies to: 
 Brown & Wood LLP 
 One World Trade
Center 
 New York, NY 10048 
 Telecopy No: (212) 839-5599 
 Attention: Joseph W. Armbrust, Jr. 
                  J. Gerard Cummins 
  
 If to the Escrow Agent: 
 Global Agency and Trust Services Department 
 Citibank, N.A. 
 111 Wall Street 
 New York, NY 10043 
 Telecopy No.: (212) 657-2762 
 Attention:        Carmina Day 
  

or such other address as any party may from time to time specify by written notice to the other parties hereto. 
  
 21. No Assignment or Benefit to Third Parties. This Agreement may not
be assigned by operation of law or otherwise, except by RSI to one or more entities controlled by RSI (with RSI remaining responsible for its obligations under this Agreement). Notwithstanding the foregoing, the rights or duties of each of the
parties under this Agreement may be assigned by such party in connection with a sale of all or substantially all of its assets or a merger, consolidation or other similar business combination transaction. Nothing expressed or implied in this
Agreement is intended, nor shall be construed, to confer (a) any rights, remedies, obligations or liabilities, legal or equitable, other than as provided in this Agreement or (b) otherwise constitute any person (other than the
Representative) a third party beneficiary under or by reason of this Agreement (it being acknowledged that the Representative is a third party beneficiary of this Agreement and is entitled to enforce the relevant provisions of this Agreement,
including Section 4(b)(ZZZ) on behalf of Holdco). 
  
 22.
Headings. The headings of the Sections of this Agreement are for convenience only and do not constitute a part of this Agreement. 
  
 23. Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall
become 

  

 24 

 
effective when one or more counterparts have been signed by each party and delivered to the others. 
  
 24. Applicable Law. This Agreement shall be construed and enforced in
accordance with, and governed by the laws of the State of New York, without application of any choice of law provisions that would apply any law other than the laws of New York. 
  
 25. Several Liability. Anything in this Agreement to the contrary notwithstanding, the representations, warranties,
covenants and agreements of the Shareholders set forth herein are several and not joint, except with respect to any obligations due and payable to the Escrow Agent. 
  
 26. Powers of the Representative. Each Shareholder by executing this Agreement hereby appoints CarrAmerica as such
Shareholder’s agent and attorney in fact (the “Representative”) hereunder with full irrevocable power and authority in the place and stead of such Shareholder and in the name of such Shareholder to take any and all actions, and to
execute any and all instruments and other documents, which in the sole judgment of the Representative are necessary or appropriate in handling claims for Losses made pursuant to Section 3, 4(a)(W), 4(a)(X) and 4(b) of this Agreement. Said power
of attorney shall not be affected by the subsequent incapacity of any Shareholder. Without limiting the generality of the foregoing, each of the Shareholders agrees that the Representative (1) has full power and authority to take such action on
behalf of the Shareholders with respect to any Indemnification Shares and Cash Collateral held by the Escrow Agent and with respect to any and all claims for Losses (including, without limitation, any decisions to accept or to challenge any claims
for Losses) as the Representative in its sole discretion may determine (except to the extent that this Agreement provides for any action with respect to such Indemnification Shares or Cash Collateral to be taken by the Shareholders themselves) and
(2) shall represent the Shareholders for all purposes in connection with the claims specified above, including the receipt of notices and the exercise or wavier of any rights with respect to RSI’s obligations under this Agreement, and
resolution of disputes or uncertainties arising hereunder and thereunder (except to the extent that any such agreement expressly provides for any action to be taken or other matter to be dealt with by the Shareholders themselves). The Representative
shall forward the Shareholders copies of all notices of Claims received from any RSI Indemnitee and of the disposition of all such Claims. The Shareholders also agree that the Shareholders shall be bound by all decisions of the Representative
pursuant to the authority granted hereunder, and that such authority may not be revoked during the term of this Agreement. 
  
 Except as expressly set forth in this Agreement, it is understood that the Representative is not assuming any responsibility or liability to any person by
virtue of the powers granted by the Shareholders hereby. The Representative shall not make any representations with respect to and shall have no responsibility for the transactions contemplated by the Merger Agreement, the Stock Purchase Agreement
or the UK Agreement or any aspect thereof except as expressly set forth in such agreements. The Representative shall not be liable to any other Shareholder for any error of judgment or for any act done or omitted or for any 

  

 25 

 
mistake of fact or law except for such Representative’s own gross negligence or bad faith. Each Shareholder agrees to indemnify the Representative and
to hold the Representative harmless against any loss, claim, damage or liability incurred by him arising out of or in connection with acting as the Representative pursuant to this Agreement, as well as the cost and expense of investigating and
defending against any such loss, claim, damage or liability, except to the extent such loss, claim, damage or liability is due to the gross negligence or bad faith of the Representative. Each Shareholder agrees that the Representative may consult
with counsel of its own choice (who may be counsel for CarrAmerica or any affiliate thereof) and it shall have full and complete authorization and protection for any action taken or suffered by it hereunder in good faith and in accordance with the
opinion of such counsel. It is understood that the Representative may, without breaching any express or implied obligation to any Shareholder hereunder, release, amend or modify any other power of attorney granted by any other person under any
related agreement. 
  
 27. Litigation Costs. If any
litigation with respect to the obligations of the parties under this Agreement results in a final nonappealable order of a court of competent jurisdiction that results in a final disposition of such litigation, the prevailing party, as determined by
the court ordering such disposition, shall be entitled to reasonable attorneys’ fees as shall be determined by such court. contingent or other percentage compensation arrangements shall not be considered reasonable attorneys’ fees.

  
 28. Waiver of Jury Trial. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT. 
  
 29. Amendment. This Agreement may be amended by written agreement signed by the Escrow Agent (other than Sections 3 through 7 inclusive), RSI, the Representative and each Shareholder that would be adversely
affected by such amendment. 
  
 30. Waiver. Any party to
this Agreement may extend the time for the performance of any of the obligations or other acts of any other party hereto, or waive compliance with any of the agreements of any other party or with any condition to the obligations hereunder, in each
case only to the extent that such obligations, agreements and conditions are intended for its benefit, each Shareholder hereby severally agreeing that any such extension or waiver by such Shareholder may be given by the Representative and each
Shareholder hereby severally confirming that it has appointed the Representative as its attorney-in-fact to give any such extension or waiver on behalf of such Shareholder. 
  

 26 

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

					
	 CARRAMERICA REALTY CORPORATION

			
	 By:
	 	 	 	 /s/    Karen B. Dorigan

	 	 	 Name:
	 	 Karen B. Dorigan

	 	 	 Title:
	 	 Managing Director

	
	 RECKSON SERVICE INDUSTRIES, INC.

			
	 By:
	 	 	 	 /s/    Jason M. Barnett

	 	 	 Name:
	 	 Jason M. Barnett

	 	 	 Title:
	 	 Executive Vice President

	
	 STRATEGIC OMNI INVESTORS LLC

			
	 By:
	 	 	 	 /s/    Jill B. Louis

	 	 	 Name:
	 	 Jill B. Louis

	 	 	 Title:
	 	 Attorney-in-Fact

	
	 SECURITY CAPITAL HOLDINGS S.A.

			
	 By:
	 	 	 	 /s/    Jill B. Louis

	 	 	 Name:
	 	 Jill B. Louis

	 	 	 Title:
	 	 Attorney-in-Fact

	
	 THE OLIVER CARR COMPANY

			
	 By:
	 	 	 	 /s/    Jill B. Louis

	 	 	 Name:
	 	 Jill B. Louis

	 	 	 Title:
	 	 Attorney-in-Fact

  

 27 

					
	 CARR HOLDINGS LLC

			
	 By:
	 	 	 	 /s/    Jill B. Louis

	 	 	 Name:
	 	 Jill B. Louis

	 	 	 Title:
	 	 Attorney-in-Fact

	
	 Escrow Agent:

	
	 CITIBANK, N.A.

			
	 By:
	 	 	 	 /s/    Carmina Bitar Day

	 	 	 Name:
	 	 Carmina Bitar Day

	 	 	 Title:
	 	 Assistant Vice President

	
	 Additional Indemnitors Listed on Schedule B

			
	 By:
	 	 	 	 /s/    Jill B. Louis

	 	 	 Name:
	 	 Jill B. Louis

	 	 	 Title:
	 	 Attorney-in-Fact

  

 28Exhibit 10.18

 Exhibit 10.18 
  

  
 STOCKHOLDERS AGREEMENT 
  
 by and among 

 
 FRONTLINE CAPITAL GROUP (formerly known as 
  
 RECKSON SERVICE INDUSTRIES, INC.), 
  
 HQ GLOBAL HOLDINGS, INC., 
  
 and 
  
 CARRAMERICA REALTY CORPORATION 
  
 Dated as of 
  
 June 1, 2000 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	1.	  	DEFINITIONS	  	1
			
	2.	  	BOARD OF DIRECTORS OF THE COMPANY	  	3
	 	  	2.1.	  	Number of Directors	  	3
	 	  	2.2.	  	Holder Nominees	  	4
	 	  	2.3.	  	Independent Directors	  	5
	 	  	2.4.	  	Termination	  	5
			
	3.	  	INFORMATION RIGHTS	  	6
	 	  	3.1.	  	Information Rights of All Holders	  	6
	 	  	3.2.	  	Information Rights of 10% Holders	  	6
	 	  	3.3.	  	Confidentiality	  	7
	 	  	3.4.	  	Termination	  	7
			
	4.	  	LIMITATIONS ON CORPORATE ACTIONS	  	7
	 	  	4.1.	  	REIT Restrictions	  	7
	 	  	4.2.	  	No Acquisition of Common Stock from RSI or its Affiliates	  	13
	 	  	4.3.	  	No Contravening Agreement	  	13
	 	  	4.4.	  	Termination	  	13
			
	5.	  	PARTICIPATION RIGHTS	  	14
	 	  	5.1.	  	Right to Participate	  	14
	 	  	5.2.	  	Notice	  	14
	 	  	5.3.	  	Abandonment of Sale or Issuance	  	15
	 	  	5.4.	  	Terms of Sale	  	15
	 	  	5.5.	  	Timing of Sale	  	15
	 	  	5.6.	  	Termination of Participation Right	  	16
			
	6.	  	TAG-ALONG RIGHTS	  	17
	 	  	6.1.	  	Rights and Notice	  	17
	 	  	6.2.	  	Abandonment of Sale	  	18
	 	  	6.3.	  	Timing of Sale	  	18
	 	  	6.4.	  	Termination of Tag-Along Right	  	18
			
	7.	  	PUT RIGHTS	  	18
	 	  	7.1.	  	2000 Put Right	  	18
	 	  	7.2.	  	2001 Put Right	  	19
	 	  	7.3.	  	2002 Put Right	  	20
	 	  	7.4.	  	Procedures to Determine Fair Market Value	  	22
	 	  	7.5.	  	Indemnification of Designated Holder	  	23

							
			
	8.	  	TRANSFER RESTRICTIONS	  	23
	 	  	8.1.	  	RSI Right of First Offer	  	23
	 	  	8.2.	  	Holder Right of First Offer	  	24
	 	  	8.3.	  	No Obligation to Purchase	  	25
	 	  	8.4.	  	Termination of the Rights of First Offer	  	26
	 	  	8.5.	  	IPO Lock-Up	  	26
			
	9.	  	LEASE GUARANTEE INDEMNIFICATION	  	26
			
	10.	  	PURCHASE RIGHT AGREEMENT ANTI-DILUTION PROTECTION	  	27
			
	11.	  	MISCELLANEOUS	  	27
	 	  	11.1.	  	RSI Assurance	  	27
	 	  	11.2.	  	Assignment	  	27
	 	  	11.3.	  	Entire Agreement; Amendment	  	27
	 	  	11.4.	  	Waiver	  	28
	 	  	11.5.	  	Limitation on Benefit	  	28
	 	  	11.6.	  	Binding Effect	  	28
	 	  	11.7.	  	Governing Law	  	28
	 	  	11.8.	  	Notices	  	29
	 	  	11.9.	  	Headings	  	30
	 	  	11.10.	  	Execution in Counterparts	  	30
	 	  	11.11.	  	Interpretation; Absence of Presumption	  	31
	 	  	11.12.	  	Severability	  	31
	 	  	11.13.	  	Specific Performance	  	31
	 	  	11.14.	  	Consent to Jurisdiction	  	31
	 	  	11.15.	  	Litigation Costs	  	32

  
 EXHIBIT A 
  

 ii 

 STOCKHOLDERS AGREEMENT 
  
 THIS STOCKHOLDERS AGREEMENT (this “Agreement”), dated as of June 1, 2000, is made by and among FrontLine
Capital Group (formerly known as Reckson Service Industries, Inc.) (“RSI”), HQ Global Holdings, Inc. (the “Company”) and CarrAmerica Realty Corporation (“CarrAmerica” or the “Designated Holder”). 

 
 WHEREAS, RSI, CarrAmerica and certain other parties have entered into that
certain Stock Purchase Agreement dated as of January 20, 2000, as amended pursuant to which RSI is acquiring on the date hereof certain shares of common stock of HQ Global Workplaces, Inc. (“HQ Global”) owned by CarrAmerica and such
other parties (the “Transaction”); 
  
 WHEREAS, the
parties believe it is in their best interests to enter into this Agreement and provide for certain rights and restrictions with respect to the continuing investment by RSI and each Holder (as hereafter defined) in the Company and the corporate
governance of the Company; and 
  
 WHEREAS, it is a condition
precedent to the completion of the Transaction that the parties enter into this Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows: 
  

	1.	DEFINITIONS 

  
 As used in this Agreement, certain capitalized terms not otherwise defined herein shall have the following respective meanings: 
  

“10% Holder” shall mean any Holder hereunder who, together with any Affiliates, holds more than ten percent (10%) of the total number of
issued and outstanding shares of Common Stock of the Company. 
  
 “Affiliate” shall mean, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with such Person, or (ii) any officer, director, general partner, managing
member or trustee of such Person or any Person referred to in clause (i) above. For purposes of this definition, “control,” when used with respect to any Person, means the power to direct the management and policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
  
 “Board” shall mean the board of directors of the Company.

  

 1 

 “Code” shall mean the Internal Revenue Code of 1986, as amended (including for this purpose the
amendments made to Section 856(c)(4)(B)(iii) of the Code by Pub. L. No. 106-170, The Ticket to Work and Work Incentives Improvement Act of 1999, 113 Stat. 1860 (the “RMA”)), and any successor thereto, including all of the rules
and regulations promulgated thereunder. 
  
 “Common
Stock” shall mean any common stock of the Company, including, without limitation, the Voting Common Stock and the Nonvoting Common Stock. 
  
 “Director” shall mean a member of the Board. 
  
 “Government Authority” shall mean any government or state (or any subdivision thereof) of or in the United States or any foreign nation, or any
agency, authority, bureau, commission, department or similar body or instrumentality thereof, or any governmental court or tribunal. 
  
 “Holder” shall mean CarrAmerica and any stockholder of the Company that becomes a party to this agreement after the date hereof in accordance
with the terms herein. 
  
 “Immediate Family Member”
shall mean, with respect to any natural Person, (i) such natural Person’s spouse, parents, descendants, nephews, nieces, brothers and sisters, and (ii) any trust established by such Person or any of the persons listed in clause
(i) above, the sole beneficiaries of which are such Person or any of the persons listed in clause (i) above. 
  
 “Independent Director” shall mean any Director who (i) is not an officer or employee of the Company, (ii) is not an officer, employee
or director of RSI, (iii) does not have a material financial interest in or relationship with RSI (it being agreed that for purposes of this definition, any Director who owns less than five percent (5%) of the issued and outstanding RSI
common stock shall be deemed not to have a material financial interest in or relationship with RSI by virtue of such stock ownership), and (iv) is not an Affiliate or an Immediate Family Member of any Person covered by clauses (i), (ii) or
(iii) above. 
  
 “IPO” shall mean one or more sales
of Common Stock by the Company pursuant to one or more registration statements effective under the Securities Act of 1933, as amended (the “1933 Act”) that results in (i) gross proceeds to the Company of not less than $150,000,000 and
(ii) the listing for trading on either the NASDAQ Stock Market or a national securities exchange of all shares of Voting Common Stock of the Company. 
  
 “Majority Consent of the Holders” shall mean the approval of Holders owning at least a majority of all of the issued shares of Voting Common
Stock owned by the Holders at such time. 
  
 “Nonvoting
Common Stock” shall mean the Nonvoting Common Stock, par value $.01 per share, of the Company. 
  

 2 

 “Person” shall mean any individual, corporation, partnership, limited liability company, joint
venture, trust, unincorporated organization, other form of business or legal entity or Government Authority. 
  
 “Preferred Stockholders Agreement” shall mean the Stockholders Agreement by and among FrontLine Capital Group, HQ Global Holdings, Inc. and
certain holders of Series A Preferred Stock of HQ Global Holdings, Inc. named therein, dated as of the date hereof. 
  
 “SEC” shall mean the Securities and Exchange Commission. 
  
 “RSI Board” shall mean the board of directors of RSI. 
  
 “transfer” means a sale, gift, assignment, exchange or other
disposition (including a voluntary or involuntary disposition under judicial order, legal process, execution, attachment or enforcement of an encumbrance) or any other transfer of beneficial interest of shares of Common Stock. A “transfer”
shall not include (i) in the case of an individual, a transfer to an Immediate Family Member, (ii) in the case of a partnership, a transfer by the partnership to an Affiliate or to its partners in connection with a dissolution of the
partnership, (iii) in the case of a corporation, a transfer by the corporation to an Affiliate or to its stockholders in connection with the dissolution of the corporation, (iv) in the case of a limited liability company, a transfer by the
limited liability company to an Affiliate or to its members in connection with the dissolution of the limited liability company, or (v) in the case of any entity referred to in clause (ii), (iii) or (iv) above, any transfer of an
interest in the securities of such entity or any other indirect transfer that may occur as a result of either a consolidation, merger or other business combination involving such entity or a sale, lease, exchange or other transfer of all or
substantially all of the assets of such entity, or (vi) in the case of CarrAmerica, a transfer to an entity in which it owns at least 90% of the economic interests of such entity; provided, that a transferee under (i) -(vi) above
agrees in writing to be bound by all of the terms of this Agreement by executing and delivering to the Company a counterpart signature page to this Agreement. 
  

“U.S. Stock Purchase Agreement” shall mean the Stock Purchase Agreement between CarrAmerica, RSI and certain other parties dated as of
January 20, 2000, as amended. 
  
 “Voting Common
Stock” shall mean the Voting Common Stock, par value $.01 per share, of the Company. 
  

	2.	BOARD OF DIRECTORS OF THE COMPANY 

  
 2.1. Number of Directors 
  
 From and after the date hereof, the Board shall consist of thirteen (13) Directors. The number of Directors may not be decreased unless such decrease
is approved by a Majority Consent of the Holders. 
  

 3 

 2.2. Holder Nominees 
  
 (a) Nomination of Directors. At each annual or special meeting of stockholders of the Company at, or
the taking of action by written consent of stockholders of the Company with respect to, which any Directors are to be elected, each Holder (a “Nominating Holder”) shall have the right (but not the obligation) to nominate for election to
the Board that number of Directors which represents the same proportion of the total number of Directors as is represented by the number of shares of Voting Common Stock which such Holder then owns, as of the applicable record date for such meeting
or consent (or, in the case of the first annual meeting of stockholders of the Company following the Closing, if the record date for such annual meeting is prior to the date of the Closing, then as of the date of the Closing), relative to the number
of shares of Voting Common Stock outstanding as of such date (such Directors, “Holder Nominees”). Notwithstanding the foregoing, if a Holder shall make an equity investment, through a joint venture or otherwise, in Regus Business Corp.,
Servcorp or a company that, at the time such investment is made, is a significant regional competitor of the Company in the executive suites business, such Holder’s right under this Section 2.2(a) shall terminate. In computing the number
of Holder Nominees, any fraction shall be rounded down to the nearest whole number (and, if such fraction shall be less than one, then such Holder shall have no right to nominate any Director for election). If Directors are placed into two or more
classes pursuant to the Company’s certificate of incorporation, the Holder Nominees shall be placed in as many different classes as possible. 
  
 (b) Qualification of Holder Nominees. No Nominating Holder shall name any person as a Holder Nominee if (i) such person is not
reasonably experienced in business or financial matters, (ii) such person has been convicted of, or has pled nolo contendere to, a felony, (iii) the election of such person would violate any applicable law, (iv) any event
described in Item 401(f) of Regulation S-K promulgated under the 1933 Act has occurred with respect to such person, or (v) such person is an Affiliate of, or has a material financial interest in, (A) any individual or entity that
engages, as the principal component of its business, in activities that are directly competitive with the Company in the executive suites business, or (B) any entity whose primary business is to invest in business to business e-commerce
companies, which has invested an aggregate of at least $50 million in such companies. 
  
 (c) Support of Holder Nominees by RSI and the Company. RSI shall support, and the Board and any nominating committee (or any other
committee exercising a similar function) thereof shall recommend, the nomination of each Holder Nominee to the Board. The Board shall recommend to the stockholders of the Company the election of each Holder Nominee, and the Company and RSI shall
exercise all authority under applicable law to cause each Holder Nominee to be elected to and to remain a member of the Board for the term for which the Holder Nominee is nominated. Without limiting the generality of the foregoing, with respect to
each meeting of stockholders of the Company at which Directors are to be elected, (i) the Company shall use its commercially reasonable efforts to solicit from the stockholders of the Company eligible to vote in the election of Directors
proxies in favor of each Holder Nominee, and (ii) RSI shall vote its shares of Voting Common Stock in favor of each Holder Nominee at any stockholders meeting (or written consent in lieu thereof). 
  

 4 

 (d) Support of RSI Nominees by CarrAmerica. Provided that the nominees proposed by
RSI meet the qualifications set forth in Section 2.2(b)(i)-(iv) above (each, an “RSI Nominee”), CarrAmerica shall support and the Board or any nominating committee (or any other committee exercising a similar function) thereof
shall recommend, the nomination of each RSI Nominee to the Board. RSI shall have the right to nominate all of the directors other than the Holder Nominees, except as may otherwise be provided for in the Preferred Stockholders Agreement. The Board
shall recommend to the stockholders of the Company the election of each RSI Nominee and the Company shall exercise all authority under applicable law to cause each RSI Nominee to be elected to and to remain a member of the Board for the term for
which the RSI Nominee is nominated. With respect to each meeting of stockholders of the Company at which Directors are to be elected, CarrAmerica shall vote its shares of Voting Common Stock in favor of each RSI Nominee at any stockholders meeting
(or written consent in lieu thereof). 
  
 (e)
Vacancies. In the event that any Holder Nominee shall cease to serve as a Director for any reason other than the fact that the Nominating Holder no longer has a right to nominate a Director, as provided in Section 2.2(a), the vacancy
resulting thereby shall be filled by a Holder Nominee designated by the Nominating Holder which nominated the vacating Director; provided, however, that any Holder Nominee so designated shall satisfy the qualification requirements set
forth in Section 2.2(b). 
  
 2.3. Independent Directors

  
 (a) Number of Independent Directors.
From and after the date hereof, the Board shall include at least two (2) Independent Directors. 
  
 (b) RSI and Holder Support of Independent Director Nominees. RSI shall nominate and the Holders shall support, and the Board and
any nominating committee (or any other committee exercising a similar function) thereof shall recommend, the nomination of at least two (2) Independent Directors at all times, and the Company, the Holders and RSI shall exercise all authority
under applicable law to cause each Independent Director nominee so supported to be elected to and remain a member of the Board for the term for which such Independent Director is nominated. Without limiting the generality of the foregoing, with
respect to each meeting of stockholders of the Company at which Directors are to be elected, (i) the Company shall use its commercially reasonable efforts to solicit from the stockholders of the Company eligible to vote in the election of
Directors proxies in favor of each Independent Director nominee that is nominated pursuant to this Section 2.3(b), and (ii) RSI and the Holders shall vote their respective shares of Voting Common Stock in favor of each Independent Director
nominee that is nominated pursuant to this Section 2.3(b). 
  
 2.4. Termination 
  
 The rights of the Holders pursuant
to this Section 2 shall terminate on the first date on which no Holder has a right to Board representation pursuant to Section 2.2(a) hereof. 
  

 5 

	3.	INFORMATION RIGHTS 

  
 3.1. Information Rights of All Holders 
  
 (a) Quarterly Financial Information. From and after the date hereof, the Company shall deliver to each Holder as soon as available
and in any event within thirty (30) days after the close of each of the first, second and third fiscal quarters of the Company, the unaudited consolidated balance sheet of the Company and its subsidiaries as at the end of such period and the
related unaudited consolidated statements of income, retained earnings and cash flows of the Company and its subsidiaries for such period, setting forth in each case in comparative form the figures for the corresponding periods of the previous
fiscal year, all of which shall be certified by the chief financial officer or the chief accounting officer of the Company, in his or her opinion, to present fairly in all material respects and in accordance with generally accepted accounting
principles (“GAAP”), the consolidated financial position of the Company and its subsidiaries as at the date thereof and the results of operations for such period (subject to normal year-end adjustments). 
  
 (b) Annual Financial Information. From and after the
date hereof, the Company shall deliver to each Holder as soon as available and in any event within seventy-five (75) days after the end of each fiscal year of the Company, the audited consolidated balance sheet of the Company and its
subsidiaries as at the end of such fiscal year and the related audited consolidated statements of income, retained earnings and cash flows of the Company and its subsidiaries for such fiscal year, setting forth in comparative form the figures as at
the end of and for the previous fiscal year, all of which shall be certified by (A) the chief financial officer or the chief accounting officer of the Company, in his or her opinion, to present fairly in all material respects and in accordance
with GAAP, the financial position of the Company and its subsidiaries as of the date thereof and the result of operations for such period and (B) independent certified public accountants of recognized national standing. 
  
 3.2. Information Rights of 10% Holders 
  
 In addition to the information rights set forth in
Section 3.1 hereof, from and after the date hereof, the Company shall: 
  
 (a) Financial Reports. Deliver to each 10% Holder, as soon as practicable after the end of each month, an operating and financial statement and management report of the Company and its subsidiaries (including
each subsidiary, if any, not consolidated with the Company) as at and for the end of such month, all in such form as may be prepared by the Company for internal use by management. 
  
 (b) Securities Filings. Deliver to each 10% Holder, as promptly as practicable following filing, a
copy of each report, schedule or other document filed by the Company pursuant to the requirements of any federal or state securities laws (collectively, the “Securities Filings”). 
  
 (c) Opportunity to Review Securities Filings. Afford
each 10% Holder a reasonable opportunity to review any portion of any Securities Filing which refers to, 

  

 6 

 
describes or mentions such 10% Holder prior to the time that such Securities Filing is filed with or sent to the applicable Government Authority. 

 
 (d) Delivery of Annual Budget of the Company.
Deliver to each 10% Holder a copy of the approved annual operating budget for the Company and its subsidiaries. 
  
 3.3. Confidentiality 
  
 Each Holder shall keep all information provided to it or any of its representatives pursuant to this Agreement confidential, and such
Holder shall not disclose such information to any Persons other than the directors, officers, employees, financial advisors, legal advisors, accountants and consultants of any Holder who reasonably need to have access to the confidential information
and (i) in the case of directors, officers, employees, legal advisors and the principal accountants of such Holder, who are advised of the confidential nature of such information, and (ii) in the case of any financial advisors, other
accountants or consultants of such Holder, who execute an agreement with the Company agreeing to maintain the confidentiality of such information; provided, however, the foregoing obligation of each Holder shall not (A) relate to
any information that (i) is or becomes generally available other than as a result of unauthorized disclosure by such Holder or by Persons to whom such Holder has made such information available, or (ii) is or becomes available to such
Holder on a non-confidential basis from a third party that is not, to such Holder’s knowledge, bound by any other confidentiality agreement with the Company or RSI, or (B) prohibit disclosure of any information if such Holder believes in
good faith that disclosure is required by law, rule, regulation, court order or other legal or governmental process (including SEC or GAAP reporting requirements) or if such Holder believes in good faith that disclosure is advisable to explain a
material deviation from its expected financial results that arises from its investment in the Company; provided further, that in the case of a disclosure described in clause (B) above, such Holder shall (i) give prior notice
to the Board of any such disclosure and (ii) consult with the Board prior to making such disclosure. 
  
 3.4. Termination 
  
 The rights granted to the Holders pursuant to Section 3.1 and Sections 3.2(a) and 3.2(d) shall terminate upon such date that the
Company’s Common Stock is listed for trading on either the NASDAQ Stock Market or a national securities exchange. The obligations assumed by the Holders pursuant to Section 3.3 shall remain in full force and effect until the first
anniversary of the consummation of an IPO. 
  

	4.	LIMITATIONS ON CORPORATE ACTIONS 

  
 4.1. REIT Restrictions 
  
 (a) Taxable REIT Subsidiary Election. 
  
 (i) Effective as of January 1, 2001 and for so long thereafter as CarrAmerica continues to make the election to be taxed as a real
estate investment trust 

  

 7 

 
(“REIT”) under Sections 856 through 860 of the Code, the Company and any corporation in which the Company owns at least 35% of vote or value of the
stock (including OmniOffices (UK) Limited, a company incorporated in England, and OmniOffices (Lux) 1929 Holding Company S.A., a company organized under the laws of the Grand Duchy of Luxembourg), shall (A) elect to be treated as a
“taxable REIT subsidiary” of CarrAmerica pursuant to Section 856(l) of the Code (a “TRS”) and (B) not take any action to cause the Company to fail to qualify as a TRS of CarrAmerica. If CarrAmerica’s ownership of
the Common Stock of the Company is (A) reduced below five percent (5%) for a continuous period of six months or longer or (B) reduced below ten percent (10%) for a continuous period of twelve months or longer, CarrAmerica shall,
at the request of the Company, consent to the revocation of such election for the first taxable year following the taxable year in which the last month of such six month or twelve month period, as applicable, occurs. Notwithstanding the foregoing,
for so long as CarrAmerica continues to make the election to be taxed as a REIT, the Company shall, so long as the Company is a TRS of Equity Office Properties Trust or any successor-in-interest thereof (“EOPT”), (A) elect to be
treated as a TRS of CarrAmerica and (B) not take any action to cause the Company to fail to qualify as a TRS of CarrAmerica, provided that CarrAmerica shall, at the request of the Company, consent to the revocation of such election for the
first taxable year following the taxable year in which a CarrAmerica De Minimis Event (as defined below) shall occur. As a condition to any merger, consolidation, reorganization or other business combination to which the Company is a party pursuant
to which CarrAmerica acquires any equity interest in any entity other than the Company, such entity, so long as it is a TRS of EOPT, shall agree to (A) file an election to be treated as a TRS of CarrAmerica effective as of the date of
consummation of such business combination (or, if such business combination takes place before January 1, 2001, effective beginning January 1, 2001) and (B) not take any action that would cause such entity to fail to qualify as a TRS
of CarrAmerica for so long thereafter as CarrAmerica continues to make the election to be treated as a REIT; provided that CarrAmerica shall, at the request of such entity, consent to and join in a revocation of such election if a Post-Merger
De Minimis Event (as defined below) shall occur any time after the date of consummation of the business combination (which revocation shall be effective for the taxable year immediately following the taxable year in which such Post-Merger De Minimis
Event occurs). CarrAmerica shall notify the Company or the surviving entity, as the case may be, in writing of the occurrence of a CarrAmerica De Minimis Event or a Post-Merger De Minimis Event no more than 10 Business Days following the occurrence
of such event. The determination of when a “CarrAmerica De Minimis Event” or a “Post-Merger De Minimis Event” shall occur shall be made in accordance with the principles of the respective definitions of “EOP De Minimis
Event” and “Post-Merger De Minimis Event” contained in Section 4.1 of the Preferred Stockholders Agreement, as applied to Common Stock or common stock of the surviving entity, as the case may be, owned by CarrAmerica. 
  
 (ii) For so long as the Company is obligated to constitute a
TRS of CarrAmerica, if CarrAmerica shall so request in writing within forty-five (45) days prior to the close of any quarter of any of CarrAmerica’s taxable years beginning after December 31, 2000, the Company shall provide, within
ten (10) days prior to the close of such quarter, written certification in a form reasonably acceptable to CarrAmerica that the Company constitutes a TRS of CarrAmerica. All references to the Company in this subparagraph (ii) shall include
references to any successor-in-interest to the Company. 
  

 8 

 (iii) Prior to the effective date of the Company’s election to be treated as a TRS
of CarrAmerica, the Company shall not, without the prior written consent of CarrAmerica, provide any tenant services with respect to any property in which CarrAmerica owns a direct or indirect interest and in which a flexible workplace center was
operated by a predecessor-in-interest of the Company prior to the date of this Agreement other than (A) the same types of tenant services as were provided prior to the date of this Agreement, (B) the same types of services as described in
the ruling request filed by CarrAmerica with the Internal Revenue Service with respect to services provided by the Company, as supplemented, and as described in the private letter ruling issued by the Internal Revenue Service in response to such
request and (C) any other services that would not cause more than 1% of the gross income derived directly or indirectly by CarrAmerica from such property to constitute impermissible tenant service income, as defined in Code Section 856(d)(7),
provided that, with respect to any tenant services not described in clauses (A) or (B) which the Company notifies CarrAmerica in writing that it proposes to provide at any property, CarrAmerica shall provide such written consent as soon as
is practicable after receiving such notification unless CarrAmerica determines, in its sole opinion, that the provision of such other services would give rise to a reasonable likelihood that the 1% level described in clause (C) would be exceeded at
such property, and provided further that CarrAmerica shall be deemed to have given such written consent if it has not responded to the Company in writing, within 30 days of receipt of such notification from the Company, that it does not consent to
the provision of the services described in the notification because it has determined that the provision of such services would give rise to a reasonable likelihood that such 1% level would be exceeded at such property. Copies of the ruling request
referred to in clause (B) and any supplements or amendments thereto through the date of this Agreement, as well as copies of the private letter ruling referred to in clause (B) and any supplements or amendments thereto through the date of
this Agreement, have been delivered by CarrAmerica to the Company upon or prior to the execution of this Agreement (all of which may be marked to conceal information other than any information concerning CarrAmerica and that portion of its business
that relates to the company or the Company’s business, the Company and its business and the relationship and business arrangements between CarrAmerica and the Company). CarrAmerica shall deliver to the Company copies of any further supplements
or amendments to the ruling request or the private letter ruling promptly after filing or receiving, as the case may be, such supplements or amendments. 
  
 (b) Ten Percent Voting Securities Limitation. 
  
 (i) From the period commencing on the date hereof and ending on January 1, 2001, the Company shall not
undertake any transaction (including, without limitation, a merger, reorganization, recapitalization, stock dividend, split-off, stock repurchase or otherwise) that would result in CarrAmerica owning (or being deemed for own) more that 10% of the
outstanding “voting securities” of any issuer (as determined 

  

 9 

 
under Section 856(c)(4)(B) of the Code). For these purposes, in no event shall CarrAmerica be deemed to own voting securities of an issuer merely as a
result of the ownership of such securities by the Company or by an entity in which the Company owns an interest. Notwithstanding the foregoing, if the exception in Section 856(c)(4)(B)(iii) with respect to stock of “taxable REIT
subsidiaries” which was enacted as part of the RMA, and is to become effective on January 1, 2001, is repealed, the prohibitions contained in this paragraph (b) shall not expire on January 1, 2001, but shall continue to apply
(x) if such repeal occurs prior to June 16, 2002, through the date (the “Put Expiration Date”) that is either (I) if CarrAmerica does not exercise its 2002 Put Right, June 15, 2002, or (II) if CarrAmerica exercises its
2002 Put Right, July 31, 2002, or (y) if such repeal occurs on or after June 16, 2002, then, if CarrAmerica is a REIT and still holds securities of the Company, until 30 days following the first to occur of (I) an IPO, (II) the
acquisition of the Company by a publicly-traded company, or (III) such other transaction pursuant to which the Company securities held by CarrAmerica become or are exchanged for securities of a publicly traded company, provided that, in the
case of any transaction described in clause (I) or (III) above in which CarrAmerica is required (or at the request of the Company agrees) to enter into a lock-up, whether pursuant to Section 8.5 or otherwise, the commencement of the 30
days shall begin on the last day of such lock-up period. For these purposes, the relevant provision of the Code shall be considered to have been repealed upon the passage of legislation that would repeal such provision by both houses of Congress
(prior to such legislation being signed into law and regardless of whether such passage occurs prior to the effective date of such legislation). In no event shall the provisions of this paragraph apply to a transaction that takes place or to which
the Company becomes contractually committed after December 31, 2000 but prior to the repeal of Section 856(c)(4)(B)(iii) (determined as set forth in the preceding sentence). 
  
 (ii) In the event of any transaction that would otherwise result in a violation of this paragraph (b), the
Company shall have the option to cause CarrAmerica to be offered and, if offered, CarrAmerica shall accept, consideration in the form of nonvoting securities rather than voting securities to the extent necessary to reduce CarrAmerica’s voting
interest to no more than 10% of the outstanding voting securities of such issuer; provided, however, that CarrAmerica shall be required to accept such nonvoting securities (or waive the restrictions set forth in this paragraph (b))
only if (x) such nonvoting securities have economic terms that are at least as favorable to CarrAmerica as the economic terms of the voting securities that would otherwise be received by CarrAmerica, (y) CarrAmerica receives an opinion of
nationally recognized tax counsel to the effect that the securities to be received will not be treated as voting securities for purposes of Section 856(c)(4) of the Code, and (z) the nonvoting securities shall be convertible into voting
securities under the same circumstances that the Nonvoting Common Stock is convertible into Voting Common Stock. 
  
 (c) Limitation on Acquisition of Securities. 
  
 (i) The Company shall not undertake any transaction (including, without limitation, a merger,
reorganization, distribution of securities, or otherwise) prior to the Put Expiration Date that would cause CarrAmerica to be considered to have acquired (as determined for purposes of Section 856(c)(4)(B) of the Code) any security of any
issuer if, as a result thereof and immediately after such transaction, CarrAmerica 

  

 10 

 
would not meet one or more of the assets tests set forth in Section 856(c)(4) of the Code (the “Asset Tests”). 
  
 (ii) For purposes of determining whether a violation of one
or more of the Asset Tests would occur for purposes of subparagraph (i) above, (A) the date of the transaction shall be treated as if it were the last day of the calendar quarter in which the transaction would occur, (B) the value of
securities that CarrAmerica would be considered to have acquired in connection with the transaction for purposes of the Asset Tests shall be deemed to be the value of such securities as of the date of the transaction, increased to reflect deemed
appreciation in value at an annual rate of 25%, for the period of time from the date of the transaction to the close of the calendar quarter in which the transaction takes place, and (C) CarrAmerica shall be treated as having acquired or disposed
of, as the case may be, on the date of the transaction any other assets that CarrAmerica is contractually committed, on the later of the time it receives written notice of the transaction or twenty (20) business days prior to the transaction,
to acquire or dispose of, as the case may be, at some future date during such calendar quarter. 
  
 (iii) The Company shall have the option to provide to CarrAmerica at least twenty (20) business days’ prior notice of a
potential transaction that could be subject to the prohibition in this Section 4.1(c). Such notice shall contain a detailed description of the potential transaction, including the maximum reasonably expected value of any securities to be
received by CarrAmerica in connection with such transaction as of the date the transaction is expected to be completed. If the Company provides such notice to CarrAmerica, CarrAmerica may, within ten (10) business days after receipt of such
notice, provide the Company an opinion of counsel or its independent accountants to the effect that the execution of such transaction (taking into account the principles set forth in subparagraph (ii) above) would reasonably be expected to
result in a violation of one or more of the Asset Tests (which opinion may be based upon customary representations of CarrAmerica as to factual matters). If the Company shall provide such notice to CarrAmerica, and CarrAmerica shall fail to deliver
such an opinion within the requisite ten (10) business days, the Company shall be entitled to complete such transaction without any liability under this subparagraph (c). 
  
 (iv) From and after the Put Expiration Date through December 31, 2003, so long as CarrAmerica owns any
securities of the Company, the Company shall provide to CarrAmerica twenty (20) business days’ prior notice of any transaction involving the Company that would result in CarrAmerica being deemed to have acquired additional securities of
any issuer for purposes of Section 856(c)(4) of the Code, provided that such notice would not violate any confidentiality obligations of the Company. If the notice requirement set forth in this subparagraph (iv) would violate any
confidentiality obligations of the Company, the Company shall use commercially reasonable efforts to obtain an exception to such confidentiality requirements in order to provide the notice to CarrAmerica. 
  
 (v) CarrAmerica shall maintain strict confidentiality with
respect to any potential transaction of which it receives notice under subparagraph (iii) or subparagraph (iv) above, and CarrAmerica shall join in any confidentiality obligations to which the Company is subject with respect to such
transaction. 
  

 11 

 (vi) Notwithstanding any of the above, in the event of any transaction that would
otherwise result in a violation of this subparagraph (c), CarrAmerica shall (x) accept consideration in the form of cash rather than securities (or waive the restrictions set forth in this paragraph (c)); provided, that CarrAmerica shall
not be obligated to accept cash (or waive the restrictions set forth in this paragraph (c)) if the receipt of such cash would reasonably be expected to cause CarrAmerica to violate any of the income tests set forth in Section 856(c)(2) or
856(c)(3) of the Code for either of the taxable years ending December 31, 2000 or December 31, 2001; and (y) at the request of the Company, join to elect that the Company (or any successor) be treated as a “taxable REIT
subsidiary” of CarrAmerica (to the extent that such an election is not then in effect and would be effective to avoid a violation of this paragraph (c) or to minimize the amount of cash that CarrAmerica must receive in order to avoid a
violation of this paragraph (c)). 
  
 (d)
Limitations on Transactions that Produce Gain. 
  
 (i) The Company shall not undertake any transaction (including, without limitation, a dividend, merger, reorganization, distribution of securities, or otherwise) (A) that shall result in the recognition of more than $25 million of
taxable income or gain by CarrAmerica during the taxable year ending December 31, 2000 (in addition to any gain that will be recognized by CarrAmerica by reason of the consummation of the transactions contemplated by the Merger Agreement (the
“Merger Agreement”) dated as of January 20, 2000, as amended, by and among HQ Global, CarrAmerica, RSI and Vantas Incorporated, a Nevada corporation, and all ancillary agreements related thereto), or (B) that shall result in the
recognition of more than $75 million of taxable income or gain for CarrAmerica during the taxable year ending December 31, 2001. 
  
 (ii) In the event that the Company contemplates undertaking any transaction (including, without limitation, a dividend, merger,
reorganization, distribution of securities, or otherwise) that is reasonably likely to result in the recognition of taxable income or gain for CarrAmerica in any single calendar year through 2003 that equals or exceeds $25 million (other than any
gain that will be recognized by CarrAmerica by reason of the consummation of the transactions contemplated by the Merger Agreement and all ancillary agreements related thereto), the Company shall provide CarrAmerica with not less than seventy-five
(75) calendar days’ prior written notice thereof; provided, however, that if using commercially reasonable efforts it is not practicable for the Company to provide at least seventy-five (75) calendar days prior written
notice of such proposed transaction, then the Company shall provide written notice to CarrAmerica as soon as practicable prior to the proposed transaction, but in no event less than thirty (30) calendar days prior to the transaction,
provided further, that such notice would not violate any confidentiality obligations of the Company. If the notice requirement set forth in this subparagraph (ii) would violate any confidentiality obligations of the Company, the
Company shall use commercially reasonable efforts to obtain an exception to such confidentiality requirements in order to provide the required notice to CarrAmerica. 
  

 12 

 (iii) For purposes of this paragraph (d), the Company may assume that CarrAmerica’s
aggregate adjusted tax basis in its Common Stock is $20 per share. 
  
 (iv) Failure by CarrAmerica to cooperate fully and promptly with respect to any reasonable request made by the Company for information in order to determine the applicability of this paragraph (d) to any
potential transaction under consideration by the Company shall relieve the Company from its obligations under this paragraph (d). 
  
 (v) CarrAmerica shall maintain strict confidentiality with respect to any potential transaction of which it receives notice hereunder, and
CarrAmerica shall join in any confidentiality obligations to which the Company is subject with respect to such transaction. 
  
 (e) Successors and Assigns. For purposes of this Section 4.1, the term “Company” refers both to the Company itself
and to all successors and assigns (direct or indirect) of the Company (including, without limitation, any entity that acquires some or all of the outstanding capital stock of the Company by reason of a merger or otherwise in which CarrAmerica
thereafter would own securities of such acquiror or any affiliate thereof), and any direct or indirect subsidiaries of the Company (or such a successor or assign thereto). This Section 4.1(e) is included to avoid any ambiguity in the
interpretation of this Section 4.1 and shall not limit or otherwise affect the generality of Sections 11.2, 11.5 and 11.6 or the interpretation of other Sections of this Agreement. 
  
 4.2. No Acquisition of Common Stock from RSI or its Affiliates 
  
 Without a Majority Consent of the Holders, the Company shall
not redeem, purchase or otherwise acquire any of the Common Stock of the Company held by RSI or any entity controlled by RSI; provided, however, that no Majority Consent of the Holders shall be required if such redemption, purchase or
acquisition is pursuant to a tender offer or other offer made on the same terms to all holders of Common Stock, including, without limitation, the Holders. 
  
 4.3. No Contravening Agreement 
  
 Each of RSI, each Holder and the Company covenants that, from and after the date hereof, it will not enter into any contract, agreement or
other arrangement that would impair, limit or restrict its ability to perform any of its obligations under this Agreement. 
  
 4.4. Termination 
  
 The rights granted to Holders pursuant to Section 4.2 shall terminate on the closing date of an IPO. 
  

 13 

	5.	PARTICIPATION RIGHTS 

  
 5.1. Right to Participate 
  
 Subject to Section 5.6 hereof, from and after the date hereof, if the Company proposes to issue or sell any equity securities of the
Company or securities convertible into equity securities of the Company (“Company Interests”) other than Company Interests issued pursuant to employee benefit plans approved by the Company’s stockholders, each Holder and RSI (each a
“Participant” and collectively, the “Participants”) shall have the right to purchase or subscribe for its “pro rata share” (as defined below), and no less than all of such Participant’s pro rata share, of such
Company Interests; provided, however, each Participant shall be entitled, on one (1) occasion only, to purchase or subscribe for less than all of such Participant’s pro rata share or not to participate in such issuance or
sale. For purposes of this Section 5.1, each Participant’s “pro rata share” of the Company Interests to be issued or sold in a transaction giving rise to the participation rights described in this Section 5.1 (inclusive of
the Company Interests to be purchased or subscribed for by all Participants pursuant to the participation rights provided for by this Section 5.1) shall equal the percentage of outstanding Common Stock owned by such Participant as of the date
immediately preceding such issuance or sale. Notwithstanding the foregoing, each Participant shall be permitted to designate that any or all of the Company Interests that it is entitled to purchase pursuant to this Section 5.1 shall be of a
separate class or series with the same designations, preferences and rights as the Company Interests proposed to be issued, except that any such separate class or series (i) shall have no voting rights except as required by law, and
(ii) shall be convertible into the Company Interests under the same circumstances that the Nonvoting Common Stock is convertible into Voting Common Stock. 
  

5.2. Notice 
  
 If the Company proposes to issue any Company Interests in a transaction giving rise to the participation rights provided for in
Section 5.1, the Company shall send a written notice (the “Participation Notice”) to each Participant setting forth (a) the number of the Company Interests which the Company proposes to issue, (b) the price (before any
commission or discount) at which such the Company Interests are proposed to be issued (or, in the case of an underwritten or privately placed offering in which the price is not known at the time the Participation Notice is given, the method of
determining such price and an estimate thereof), (c) such Participant’s “pro rata share” as of the date of the Participation Notice, and (d) all other relevant information as to such proposed transaction as may be necessary for
each Participant to determine whether or not to exercise the rights granted pursuant to Section 5.1. At any time within ten (10) days after its receipt of the Participation Notice, each Participant may exercise its participation rights to
purchase or subscribe for the Company Interests, as provided for in this Section 5, by so informing the Company in writing (an “Exercise Notice”). Each Exercise Notice shall state the percentage of the proposed sale or issuance that
such Participant elects to purchase. Each Exercise Notice shall be irrevocable, subject to the conditions to the closing of the transaction giving rise to the participation right provided for in Section 5.1. 
  

 14 

 5.3. Abandonment of Sale or Issuance 
  
 The Company shall have the right, in its sole discretion, at all times prior to consummation of any proposed
issuance or sale giving rise to the participation right granted by Section 5.1, to abandon, rescind, annul, withdraw or otherwise terminate such issuance or sale, whereupon all participation rights in respect of such proposed issuance or sale
shall become null and void, and the Company shall not have any liability or obligation to any Participant by virtue of such abandonment, rescission, annulment, withdrawal or termination. 
  
 5.4. Terms of Sale 
  
 The purchase or subscription by any Participant pursuant to Section 5.1 above shall be at the same price and such other terms and
conditions, including the date of sale or issuance, as are applicable to the purchasers or subscribers of the Company Interests whose purchases or subscriptions give rise to the participation rights, which price and other terms and conditions shall
be substantially as stated in the relevant Participation Notice (which standard shall be satisfied if the price is not greater than 110% of the estimated price set forth in the relevant Participation Notice); provided, however, that if
the consideration to be received by the Company in connection with the issuance of the Company Interests giving rise to participation rights hereunder is other than cash or cash equivalents, the price at which the participation rights may be
exercised shall be the price set forth in the Participation Notice or determined in the manner set forth in the Participation Notice (which shall in either event be the price as set forth in the agreement pursuant to which such Company Interests are
to be issued, with the consideration to be received therefor being valued based upon the fair market value thereof); provided further, that if the consideration to be received by the Company in connection with the issuance of the
Company Interests giving rise to participation rights hereunder is other than cash or cash equivalents, and the fair market value of the consideration to be received is not determinable, the price at which the participation rights may be exercised
shall, (i) in the event that shares of capital stock with an established trading market are being issued or sold, be the average ten-day trailing market price of such shares as of the date of receipt of the Participation Notice, and
(ii) in the event any other interests are being issued or sold, be determined by reference to the amount set forth above, adjusted as may be appropriate to reflect the relationship between those interests with an established trading market and
those interests to be issued in the relevant transaction; and provided, finally, that in the event the purchases or subscriptions giving rise to the participation rights are effected by an offering of securities registered under the
1933 Act and in which offering it is not practical in the judgment of the Company for the securities to be purchased by any Participant to be included, such securities to be purchased by such Participant or Participants will be purchased in a
concurrent private placement if legally permissible. 
  
 5.5.
Timing of Sale 
  
 If, with respect to any
Participation Notice, any Participant fails to deliver an Exercise Notice within the requisite time period, the Company shall have one hundred fifty (150) days after the expiration of the time in which the Exercise Notice is required to 

  

 15 

 
be delivered in which to sell or issue not more than the number of the Company Interests described in the Participation Notice and at a price and on terms
not materially less favorable to the Company than were set forth in the Participation Notice. If, at the end of one hundred fifty (150) days following the expiration of the time in which the Exercise Notice is required to be delivered, the
Company has not completed the issuance or sale of the Company Interests in accordance with the terms described in the Participation Notice (or, in the case of the price, at a price which is at least 90% of the estimated price set forth in the
Participation Notice, which price shall be deemed not to be materially less favorable to the Company than the price set forth in the Participation Notice), the Company shall again be obligated to comply with the provisions of Section 5.2 with
respect to, and provide Participants with the opportunity to participate in, any proposed issuance or sale of the Company Interests; provided, however, that notwithstanding the foregoing, if the price at which such the Company
Interests is to be sold in an underwritten offering is not at least 90% of the estimated price set forth in the Participation Notice, the Company may inform such Participant or Participants of such fact and such Participant or Participants shall be
entitled to elect, by written notice delivered within two business days following receipt of such notice from the Company, to participate in such offering in accordance with the provisions of this Section 5. 
  
 5.6. Termination of Participation Right 
  
 The participation rights granted to Participants pursuant to
this Section 5 shall terminate on the earlier of (i) with respect to each Participant on an individual basis, the first date on which such Participant’s ownership of Common Stock of the Company, together with any shares of Common
Stock transferred by such Participant to a majority owned subsidiary or an Immediate Family Member of such Participant and still owned by such transferee or any other permitted transferee, shall have been (x) in the case of any Holder, less
than 90% of the number of shares of Common Stock of the Company set forth opposite the name of such Holder on the signature page hereto (as the same may be increased pursuant to a prior exercise of a participation right granted pursuant to
Section 5.1 and subject to adjustment in the event of stock splits, stock dividends and similar events) for a continuous period of ninety (90) days, and (y) in the case of RSI, less than 65% of the number of shares of Common Stock of
the Company set forth opposite RSI’s name on the signature page hereto (as the same may be increased pursuant to a prior exercise of a participation right granted pursuant to Section 5.1 and subject to adjustment in the event of stock
splits, stock dividends and similar events), (ii) the closing date of an IPO, or (iii) if such Participant has previously elected either to purchase or subscribe for less than such Participant’s pro rata share or not to participate in
such issuance or sale in accordance with the proviso set forth in the first sentence of Section 5.1, the date on which the Company subsequently consummates a transaction which was subject to this Section 5 and such Participant did not
elect to purchase or subscribe for all of its pro rata share of the Company Interests. The participation rights granted pursuant to Section 5.1 shall not apply to an IPO and shall not be assignable or transferable to a third party;
provided, however, that any party hereto that is an entity may assign its rights and obligations pursuant to this Section 5 in connection with a transfer of all or substantially all of its assets or a merger, consolidation or
other similar business combination transaction. Notwithstanding anything to the contrary contained herein, if a Participant delivers an 

  

 16 

 
Exercise Notice to the Company, and the Company has not otherwise abandoned the transaction to which the Exercise Notice applies, and such Participant fails
to fulfill its obligations to purchase the shares set forth in the Exercise Notice on the date set for closing the transaction to which the Exercise Notice applies, such Participant’s rights under this Section 5 will terminate and such
Participant shall pay to the Company any expenses (including reasonable attorneys’ fees) incurred by the Company in connection with the transaction with the Participant. 
  

	6.	TAG-ALONG RIGHTS 

  
 6.1. Rights and Notice 
  
 Subject to Section 6.4 of this Agreement and the last sentence of this Section 6.1, if RSI receives a bona fide offer to
purchase from it, whether in one transaction or in a series of related transactions, shares of Common Stock of the Company from any person other than an Affiliate of RSI (a “Purchase Offer”), RSI shall not accept such Purchase Offer unless
each of the Holders is entitled to sell pursuant to the Purchase Offer that percentage of the shares of Common Stock owned by such Holder equal to the percentage of the number of shares of Common Stock owned by RSI proposed to be included in the
Purchase Offer. Sales by the Holders pursuant to the Purchase Offer shall be on the same terms and conditions as the Purchase Offer, without reduction for minority interest, absence of voting rights, illiquidity or otherwise. Not later than fifteen
(15) days prior to consummation of the Purchase Offer, RSI shall send a notice (the “Tag-Along Notice”) to each Holder, which notice shall include, among other things, (a) the number of shares of Common Stock that are the subject
of the Purchase Offer, (b) the price at which the bona fide purchaser is willing to purchase the Common Stock, and (c) all other relevant information as to such proposed transaction as may be necessary for each Holder to determine whether or
not to exercise the Tag-Along Right. Upon receipt of the Tag-Along Notice, each Holder shall have the right (the “Tag-Along Right”) to sell in accordance with the terms of the Purchase Offer up to the number of shares of Common Stock equal
to the product of (a) the total number of shares of Common Stock proposed to be sold by all of the Holders pursuant to the Purchase Offer and (b) a fraction, the numerator of which shall be the number of shares of Common Stock owned by
such Holder and the denominator of which shall be the number of shares of Common Stock owned by all Holders electing to participate in such purchase. A Holder may exercise the Tag-Along Right by delivering, not later than ten (10) days after
receipt of the Tag-Along Notice, a written notice to RSI (a “Holder Tag-Along Notice”) stating the number of shares of Common Stock that such Holder wishes to sell pursuant to the Purchase Offer. Notwithstanding the foregoing, RSI shall
have the right to sell up to an aggregate of twenty-five percent (25%) of the total number of shares of Common Stock of the Company owned by RSI as of the date hereof (subject to future adjustment in the event of stock splits, stock dividends
and similar events) prior to the second anniversary hereof without triggering any rights under this Section 6. 
  

 17 

 6.2. Abandonment of Sale 
  
 RSI shall have the right, in its sole discretion, at all times prior to consummation of the proposed
transaction giving rise to the Tag-Along Rights, to abandon, withdraw or otherwise terminate its participation in the proposed transaction, and RSI shall not have any liability or obligation to the Holders as a result of such abandonment, withdrawal
or other termination. 
  
 6.3. Timing of Sale 
  
 If any Holder fails to deliver a Holder Tag-Along Notice
within the requisite time period, RSI shall have one hundred fifty (150) days after the expiration of the time in which the Holder Tag-Along Notice is required to be delivered to consummate the proposed transaction identified in the Holder
Purchase Offer at the price and on the terms that are not more favorable to RSI than those set forth in the Holder Tag-Along Notice (except that the price may be increased by up to 10% from the price set forth in the Holder Tag-Along Notice). If, at
the end of such one hundred fifty (150)-day period, RSI has not consummated the proposed transaction, RSI shall again be obligated to comply with the provisions of this Section 6. 
  
 6.4. Termination of Tag-Along Right 
  
 The Tag-Along Rights granted to Holders pursuant to this Section 6 shall terminate upon the closing of
an IPO. 
  

	7.	PUT RIGHTS 

  
 7.1. 2000 Put Right 
  
 (a) 2000 Put Right. At any time during the period commencing on October 31, 2000 and ending on November 15, 2000 (the “2000 Put Period”), each Holder shall have the right (the “2000 Put Right”) to
require that RSI purchase up to 16.67 % of the Common Stock owned by such Holder, for a price per share equal to the 2000 Put Price (as defined below). The “2000 Put Price” of each share of Common Stock to be sold pursuant to the 2000
Put Right shall be the greater of: (i) the Fair Market Value (as defined below) of such Common Stock, determined in accordance with the procedures set forth Section 7.4; (ii) the Consideration (as defined in the U.S. Stock Purchase
Agreement, subject to future adjustment in the event of stock splits, stock dividends and similar events); or (iii) the highest price per share of Common Stock (or the implied value of the Common Stock in connection with the issuance of any
convertible security of the Company) (subject to future adjustment in the event of stock splits, stock dividends and other similar events) received by RSI or the Company in any sale or issuance thereof (i) in connection with the transactions
contemplated by the Merger Agreement or (ii) from and after the date hereof through the last day of the 2000 Put Period but in no event less than
$                     per share. 
  

 18 

 (b) Consideration. 
  
 (i) Cash. The consummation of the sale and purchase of Common Stock pursuant to Section 7.1(a)
shall occur on December 7, 2000 (the “2000 Put Right Closing”). RSI shall pay the 2000 Put Price in cash in full at the 2000 Put Right Closing unless it elects the alternative consideration payment set forth in clause (ii) below.
The Designated Holder (as defined below) shall have the right to inquire by notice to RSI as to the form of the consideration to be paid by RSI at any time from the twelfth day prior to the 2000 Put Right Closing up to and including the fifth day
preceding the 2000 Put Right Closing. RSI shall inform the Designated Holder of the form of the consideration not later than the second day prior to the 2000 Put Right Closing. If RSI fails to so inform the Designated Holder, RSI shall be
responsible for any actual damages incurred by the Holders as a result of such failure. 
  
 (ii) Alternative Consideration - RSI Stock. Subject to the following sentence, at RSI’s option, all or a portion of the
consideration payable upon exercise of the 2000 Put Right may be paid by delivery of a number of shares of common stock of RSI equal to (x) the 2000 Put Price, less any cash paid pursuant to Section 7.1(b)(i) hereof, divided by
(y) 98% of the volume weighted average price of a share of common stock of RSI on the NASDAQ Stock Market or other national securities exchange on which RSI’s shares are then traded for the ten (10) trading days ending on the third
trading day prior to the date of the 2000 Put Right Closing. RSI may pay all or a portion of the 2000 Put Price in shares of common stock of RSI only if (i) RSI’s common stock is then listed on the NASDAQ Stock Market or other national
securities exchange on which RSI’s shares are then traded, and (ii) the shares to be issued to the 2000 Put Exercising Holder shall be eligible for immediate sale, subject to a resale registration statement under the 1933 Act being
declared effective by the SEC. RSI covenants and agrees that it will file within thirty (30) days after receipt of such 2000 Put Notice and will use its best efforts to have declared effective within ninety (90) days of receipt of such
2000 Put Notice a resale registration statement for the RSI common stock issued pursuant hereto. 
  
 (c) Minimum Put Requirement. No exercise by any Holder of the 2000 Put Right shall be permitted unless such exercise is with
respect to the lesser of (i) 200,000 shares of Common Stock or (ii) all of the shares of Common Stock owned by such Holder. 
  
 7.2. 2001 Put Right 
  
 (a) 2001 Put Right. Unless an IPO has occurred prior to July 31, 2001, at any time during the period commencing on
October 31, 2001 and ending on November 15, 2001 (the “2001 Put Period”), each Holder shall have the right (the “2001 Put Right”) to require that RSI purchase up to 50% of the Common Stock owned by such Holder (but
subject to the minimum put requirement set forth in Section 7.2(c)), for a price per share equal to the Fair Market Value of such Common Stock (the “2001 Put Price”), determined in accordance with the procedures set forth in
Section 7.4. Each Holder electing to exercise the 2001 Put Right (a “2001 Put Exercising Holder”) shall exercise such right by a written notice (the “2001 Put Notice”) delivered to RSI and the Company during the 2001 Put
Period. 
  

 19 

 (b) Consideration. 
  
 (i) Cash. The consummation of each sale and purchase of Common Stock pursuant to Section 7.2(a)
shall occur on December 7, 2001 (the “2001 Put Right Closing”). RSI shall pay the 2001 Put Price in cash in full at the 2001 Put Right Closing, unless it elects either (but not both) of the alternative consideration payments set forth
in clauses (ii) and (iii) below. The Designated Holder (as defined below) shall have the right to inquire by notice to RSI as to the form of the consideration to be paid by RSI at any time from the twelfth day prior to the 2001 Put Right
Closing up to and including the fifth day preceding the 2001 Put Right Closing. RSI shall inform the Designated Holder of the form of the consideration not later than the second day prior to the 2001 Put Right Closing. If RSI fails to so inform the
Designated Holder, RSI shall be responsible for any actual damages incurred by the Holders as a result of such failure. 
  
 (ii) Alternative Consideration - Promissory Note. At RSI’s option, all or a portion of the consideration payable upon exercise
of the 2001 Put Right may be paid by delivery of a promissory note (the “Note”) payable in cash to a 2001 Put Exercising Holder in the amount of the 2001 Put Price payable to such 2001 Put Exercising Holder, less any cash paid pursuant to
Section 7.2(b)(i). The Note shall mature on July 31, 2002, shall be non-interest bearing, and shall be prepayable at any time, at RSI’s option. 
  

(iii) Alternative Consideration - RSI Stock. Subject to the following sentence, at RSI’s option, all or a portion of the
consideration payable upon exercise of the 2001 Put Right may be paid by delivery of a number of shares of common stock of RSI equal to (x) the 2001 Put Price, less any cash paid pursuant to Section 7.2(b)(i) hereof, divided by
(y) 98% of the volume weighted average price of a share of common stock of RSI on the NASDAQ Stock Market or other national securities exchange on which RSI’s shares are then traded for the ten (10) trading days ending on the third
trading day prior to the date of the 2001 Put Right Closing. RSI may pay all or a portion of the 2001 Put Price in shares of common stock of RSI only if (i) RSI’s common stock is then listed on the NASDAQ Stock Market or other national
securities exchange on which RSI’s shares are then traded, and (ii) the shares to be issued to the 2001 Put Exercising Holder shall be eligible for immediate sale, subject to a resale registration statement under the 1933 Act being
declared effective by the SEC. RSI covenants and agrees that it will file within thirty (30) days after receipt of such 2001 Put Notice and will use its best efforts to have declared effective within ninety (90) days of receipt of such
2001 Put Notice a resale registration statement for the RSI common stock issued pursuant hereto. 
  
 (c) Minimum Put Requirement. No exercise by any Holder of the 2001 Put Right shall be permitted unless such exercise is with
respect to the lesser of (i) 200,000 shares of Common Stock or (ii) all of the shares of Common Stock owned by such Holder. 
  
 7.3. 2002 Put Right 
  
 (a) 2002 Put Right. Unless an IPO has occurred prior to April 1, 2002, at any time during the period commencing on June
    , 2002 and ending on June 17, 2002 (the 

  

 20 

 
“2002 Put Period” and, together with the 2000 Put Period and the 2001 Put Period, a “Put Period”), each Holder shall have the right (the
“2002 Put Right”) to require that RSI purchase any or all of the Common Stock owned by such Holder (but subject to the minimum put requirement set forth in Section 7.3(c)), for a price per share equal to the Fair Market Value of such
Common Stock (the “2002 Put Price”), determined in accordance with the procedures set forth in Section 7.4. Each Holder electing to exercise the 2002 Put Right (a “2002 Put Exercising Holder” and together with a 2001 Put
Exercising Holder, the “Exercising Holders”) shall exercise such right by a written notice (the “2002 Put Notice”) delivered to RSI during the 2002 Put Period. 
  
 (b) Consideration. 
  
 (i) Cash. The consummation of each sale and purchase of Common Stock pursuant to Section 7.3(a)
shall occur on July 31, 2002 (the “2002 Put Right Closing”). RSI shall pay the 2002 Put Price in cash in full at the 2002 Put Right Closing, unless it elects the alternative consideration payment set forth in clause (ii) below.
The Designated Holder (as defined below) shall have the right to inquire by notice to RSI as to the form of the consideration to be paid by RSI at any time from the twelfth day prior to the 2002 Put Right Closing up to and including the fifth day
preceding the 2002 Put Right Closing. RSI shall inform the Designated Holder of the form of the consideration not later than the second day prior to the 2002 Put Right Closing. If RSI fails to so inform the Designated Holder, RSI shall be
responsible for any actual damages incurred by the Holders as a result of such failure. 
  
 (ii) Alternative Consideration. Subject to the following sentence, at RSI’s option, all or a portion of the consideration
payable upon exercise of the 2002 Put Right may be paid by delivery of a number of shares of common stock of RSI equal to (x) the 2002 Put Price, less any cash paid pursuant to Section 7.3(b)(i) hereof, divided by (y) 98% of the
volume weighted average price of a share of common stock of RSI on the NASDAQ Stock Market or other national securities exchange on which RSI’s shares are then traded for the ten (10) trading days ending on the third trading day prior to
the date of the 2002 Put Right Closing. RSI may pay all or a portion of the 2002 Put Price in shares of common stock of RSI only if (i) RSI’s common stock is then listed on the NASDAQ Stock Market or other national securities exchange on
which RSI’s shares are then traded, and (ii) the shares to be issued to the 2002 Put Exercising Holder shall be eligible for immediate sale, subject to a resale registration statement under the 1933 Act being declared effective by the SEC.
RSI covenants and agrees that it will file within thirty (30) days after receipt of such 2002 Put Notice and will use its best efforts to have declared effective within ninety (90) days of receipt of such 2002 Put Notice a resale
registration statement for the RSI common stock issued pursuant hereto. 
  
 (c) Minimum Put Requirement. No exercise by any Holder of the 2002 Put Right shall be permitted unless such exercise is with respect to the lesser of (i) 200,000 shares of Common Stock or (ii) all of
the shares of Common Stock owned by such Holder. 
  

 21 

 7.4. Procedures to Determine Fair Market Value 
  
 (a) Not later than sixty (60) days prior to the
commencement of a Put Period, the Designated Holder, on behalf of all Holders, and RSI shall each select an independent investment banking firm of nationally recognized expertise in the valuation of companies comparable to the Company. The agreement
pursuant to which each such firm is retained shall require such firm to deliver to each of the Designated Holder and RSI a valuation report setting forth its determination of the total equity value of the Company not later than thirty (30) days
prior to the commencement of a Put Period. The total equity value shall be calculated as of October 31, 2000 (in the case of the 2000 Put Right), October 31, 2001 (in the case of the 2001 Put Right) or June __, 2002 (in the case of the
2002 Put Right). If the lower valuation of the two investment banking firms so selected by the Designated Holder and RSI is 90% or more of the higher valuation, then the average of two valuations shall be considered the “total equity
value” of the Company for purposes of this Section 7.4. If the lower valuation is not at least 90% of the higher valuation, then such investment banking firms shall select a third independent investment banking firm of nationally
recognized expertise in the valuation of companies comparable to the Company, which shall choose, not later than the commencement of a Put Period, one of the values determined by the investment banking firms so selected by the Designated Holder and
RSI, which shall be the “total equity value” of the Company for purposes of this Section 7.4. Any determination of the “total equity value” of the Company in accordance with the provisions of this paragraph shall be final
and binding. The costs of the investment bankers retained in accordance with this Section 7.4 shall be borne equally by RSI and the Exercising Holders (pro rata based on the respective number of shares sold), or, in the case of the 2000 Put
Right or if there shall be no Exercising Holders, equally by RSI and CarrAmerica. The “Fair Market Value” of each share of Common Stock for purposes of determining the 2000 Put Price, the 2001 Put Price or the 2002 Put Price, as
applicable, shall be determined by dividing (i) the total equity value of the Company as of October 31, 2000 (in the case of the 2000 Put Right), October 31, 2001 (in the case of the 2001 Put Right) or June __, 2002 (in the case of
the 2002 Put Right), as determined in the manner described above, by (ii) the number of shares of Common Stock outstanding as of October 31, 2000, October 31, 2001 or June __, 2002, as applicable (including any securities
convertible into Common Stock calculated on a fully diluted basis). The Fair Market Value of each share of Common Stock shall be determined without giving effect to any factor specifically relating to the Common Stock, including, without limitation,
liquidity premiums or discounts relating to the Common Stock, minority position or lack of voting power. 
  
 (b) During the 2000 Put Period, the 2001 Put Period, the 2002 Put Period and the ten trading days ending on the 3rd business day prior to the date of the applicable Put Right Closing (each such period, a “Measuring Period”), neither
CarrAmerica nor any of its controlled Affiliates shall, directly or indirectly, engage in short sales of (and, during the ten trading days prior to the date of the applicable Put Right Closing, engage in sales of), or purchase put options on, shares
of RSI common stock or securities convertible into or exchangeable for shares of RSI common stock, or otherwise enter into or execute hedging or arbitrage transactions on the NASDAQ Stock Market, or on any national securities exchange on which RSI
common stock is listed or with third 

  

 22 

 
party intermediaries with the purpose or intention, or having the effect, of decreasing the market price of RSI common stock during each Measuring Period.

  
 7.5. Indemnification of Designated Holder 
  
 Each Holder hereby irrevocably appoints the Designated
Holder as its representative under Section 7 hereof for purposes of determining the Fair Market Value of the Common Stock. Each Holder hereby indemnifies the Designated Holder for, and holds the Designated Holder harmless against, any loss,
liability, disbursements, expenses, losses, costs or cash damages (including reasonable attorneys’ fees) incurred on the part of the Designated Holder, arising out of or in connection with Designated Holder carrying out its duties herein,
including costs and expenses of defending the Designated Holder against any claim of liability with respect thereto, provided that the Designated Holder has acted in good faith. 
  

	8.	TRANSFER RESTRICTIONS 

  
 8.1. RSI Right of First Offer 
  
 (a) Subject to Section 8.4 hereof, before any Holder shall transfer any shares of capital stock of the Company, such Holder shall
first deliver a written notice (the “Holder Notice of Offer”) to RSI offering to sell the number of shares proposed to be sold by such Holder to RSI (the “RSI Right of First Offer”). The Holder Notice of Offer shall specify
(i) the number and classes of all shares of Common Stock proposed to be sold by such Holder to RSI (the “Holder Offered Securities”), (ii) the minimum proposed cash consideration per share that Holder desires to receive for the
Holder Offered Securities (the “Holder Offer Price”), and (iii) any other terms and conditions of the offer. The Holder Notice of Offer shall constitute an irrevocable offer by such Holder to sell to RSI all, but not less than all, of
the Holder Offered Securities at the Holder Offer Price, in accordance with this Section 8. 
  
 (b) Within thirty (30) days following its receipt of the Holder Notice of Offer, RSI shall notify such Holder whether it intends to
exercise its right to purchase all (but not less than all) of the Holder Offered Securities (the “RSI Notification”). A RSI Notification that indicates that RSI intends to purchase the Holder Offered Securities shall be deemed to be an
irrevocable commitment of RSI to purchase the Holder Offered Securities. Should RSI elect to exercise the RSI Right of First Offer, the RSI Notification shall include a subscription for the offered shares and RSI shall purchase the Holder Offered
Securities on the date for closing specified in the Holder Notice of Offer, which date shall be no less than thirty (30) days after the date of the RSI Notification. If RSI does not subscribe for and purchase all of the Holder Offered
Securities pursuant to this Section 8.1(b), such Holder may thereafter sell the Holder Offered Securities to any third party on the terms and conditions (including, but not limited to, the number of shares of Holder Offered Securities and the
Holder Offer Price) as specified in the Holder Notice of Offer, provided, that such sale is consummated within one hundred fifty (150) days of the date of the Holder Notice of Offer; and provided further, that the fair market
value of the 

  

 23 

 
price paid for such shares by a third party (which price may consist of cash, securities, other non-cash consideration or a combination thereof) is at least
90% of the Holder Offer Price. If the price to be paid for such shares by a third party is payable in whole or in part in consideration other than cash or securities traded on a national securities exchange or the NASDAQ Stock Market, and RSI
objects to the Holder’s determination of the cash fair market value of the non-cash portion of the consideration, then such determination shall be made by (i) Goldman, Sachs & Co., (ii) Merrill Lynch & Co., if
Goldman, Sachs & Co. is unable or unwilling to make such determination, or (iii) if neither of the foregoing firms is able or willing to deliver such valuation, such other independent investment banking firm or other qualified
appraiser mutually agreeable to and promptly selected by the Holder and RSI, such determination shall be final and binding on the parties. After the expiration of such 150-day period, such Holder shall again comply with the provisions of this
Section 8.1 before selling any shares of the Company. 
  
 8.2. Holder Right of First Offer 
  
 (a)
Subject to Section 8.4 hereof, the second sentence of this paragraph and provided that the Holders collectively own at least 95% of the total number of shares of Common Stock of the Company set forth opposite the names of such Holders on the
signature page hereto (subject to future adjustment in the event of stock splits, stock dividends and similar events), if RSI desires to transfer, in a single transaction or a series of related transactions, a number of shares of Common Stock of the
Company not in excess of twenty percent (20%) of the total shares of Common Stock of the Company outstanding as of such date, RSI shall first deliver a written notice (the “RSI Notice of Offer”) to the Designated Holder offering to
sell the lesser of (i) the number of shares proposed to be sold by RSI or (ii) 20% of the number of shares of issued and outstanding Common Stock of the Company as of the date of the RSI Notice of Offer, to Holders (the “Holder Right of
First Offer” and, together with the RSI Right of First Offer, the “Rights of First Offer”). Notwithstanding the foregoing, RSI shall have the right to sell up to an aggregate of twenty-five percent (25%) of the total number of
shares of Common Stock of the Company owned by RSI as of the date hereof (subject to future adjustment in the event of stock splits, stock dividends and similar events) prior to the second anniversary hereof without triggering any rights under this
Section 8.2. The RSI Notice of Offer shall specify (i) the number and classes of all shares of Common Stock proposed to be sold by RSI to the Holders (the “RSI Offered Securities”), (ii) the minimum proposed cash
consideration per share that RSI desires to receive for the RSI Offered Securities (the “RSI Offer Price”), and (iii) any other terms and conditions of the offer. The RSI Notice of Offer shall constitute an irrevocable offer by RSI to
sell to the Participating Holders (as defined below), as the case may be, all, but not less than all, of the RSI Offered Securities at the RSI Offer Price, in accordance with this Section 8.2(a). 
  
 (b) Within ten (10) days following its receipt of the
RSI Notice of Offer, the Designated Holder shall determine whether it intends to exercise its right to purchase all (but not less than all) of the RSI Offered Securities. If the Designated Holder elects to exercise the Holder Right of First Offer,
it shall send all of the other Holders a copy of the RSI Notice of Offer not later than the eleventh (11th) day
after the Designated Holder’s receipt thereof. If, but only if, the Designated Holder elects to exercise the Holder Right of 

  

 24 

 
First Offer, each Holder shall have the right to purchase all, but not less than all, of its “pro rata share” of the RSI Offered Securities. As
used herein, a Holder’s “pro rata share” means a fraction, the numerator of which is the number of shares of Common Stock owned by such Holder and the denominator of which is the number of shares of Common Stock owned by all of the
Holders (including the Designated Holder). Each Holder shall have ten (10) days to notify the Designated Holder of the number of shares such Holder elects to purchase pursuant to the RSI Right of First Offer. Within thirty (30) days of
receipt of the RSI Notice of Offer, the Designated Holder shall notify RSI whether the Holders are exercising the Holder Right of First Offer (the “Designated Holder Notification”). A Designated Holder Notification that indicates that
Participating Holders intend to purchase the RSI Offered Securities shall be deemed to be an irrevocable commitment of such Participating Holders to purchase the RSI Offered Securities. Should all or any portion of the Holders (the
“Participating Holders”) elect to exercise the Holder Right of First Offer, the Designated Holder Notification shall include a subscription for the offered shares and the Participating Holders shall purchase the Offered Securities on the
date for closing specified in the RSI Notice of Offer, which date shall be no less than thirty (30) days after the date of the Designated Holder Notification. If the Holders do not subscribe for and purchase all of the RSI Offered Securities
pursuant to this Section 8.2(b), RSI may thereafter sell the RSI Offered Securities to any third party on the terms and conditions (including, but not limited to, the number of shares of RSI Offered Securities and the RSI Offer Price) as
specified in the RSI Notice of Offer, provided, that such sale is consummated within one hundred fifty (150) days of the date of the RSI Notice of Offer; and provided further, that the fair market value of the price paid
for such shares by a third party (which price may consist of cash, securities, other non-cash consideration or a combination thereof) is at least 90% of the RSI Offer Price. If the price to be paid for such shares by a third party is payable in
whole or in part in consideration other than cash or securities traded on a national securities exchange or the NASDAQ Stock Market, and Designated Holder objects to RSI’s determination of the cash fair market value of the non-cash portion of
the consideration, then such determination shall be made by (i) Goldman, Sachs & Co., (ii) Merrill Lynch & Co., if Goldman, Sachs & Co. is unable or unwilling to make such determination, or (iii) if neither
of the foregoing firms is able or willing to deliver such valuation, such other independent investment banking firm or other qualified appraiser mutually agreeable to and promptly selected by the Designated Holder and RSI, such determination shall
be final and binding on the parties. After the expiration of such 150-day period, RSI shall again comply with the provisions of this Section 8.2 before selling any shares of the Company. 
  
 8.3. No Obligation to Purchase 
  
 RSI shall not be obligated to purchase any Holder Offered
Securities pursuant to any Holder Notice of Offer in accordance with the provisions of Section 8.1 and no Holder shall be obligated to purchase any RSI Offered Securities pursuant to any RSI Notice of Offer in accordance with the provisions of
Section 8.2. 
  

 25 

 8.4. Termination of the Rights of First Offer 
  
 The Rights of First Offer granted pursuant to this
Section 8 shall terminate upon the closing of an IPO. 
  
 8.5. IPO Lock-Up 
  
 Each Holder hereby
agrees, and will any cause any transferee who acquires shares of Common Stock from Holder during the applicable period to agree, that, if requested by the underwriters in connection with an IPO, such Holder (or transferee) will agree not to sell,
pledge, make any short sale of, loan, grant any option for the purchase of any shares of Common Stock owned by it (whether pursuant to a registration statement or otherwise) either through the agency of a broker-dealer or the facilities of the
national securities exchange on which the Company’s shares of Common Stock are listed for a reasonable period following the IPO, such period not to exceed ninety (90) days. If the Company determines in good faith that it would be
advantageous to the Company for any Holder to be subject to a lock-up in accordance with the terms and conditions of the preceding sentence for a period in excess of ninety (90) days, such Holder shall agree to such lock-up, not to exceed an
additional ninety (90) days; provided, that (i) such Holder shall be permitted to sell as a selling stockholder in the IPO up to fifty percent (50%) (the exact amount to be determined by such Holder) of the shares of Common
Stock held by such Holder as of the closing date of the IPO; (ii) RSI shall acquire, at the closing of the IPO, up to fifty percent (50%) (the exact amount to be determined by such Holder) of the shares of Common Stock held by such Holder
as of the closing date of the IPO, either (y) for cash at the IPO price, or (z) for a number of shares of common stock of RSI equal to (A) the value of the shares of Common Stock proposed to be sold by such Holder (such value being
deemed equal to the initial public offering price in the IPO), divided by (B) the average closing trading price of a share of common stock of RSI on the NASDAQ Stock Market or other national securities exchange on which RSI’s shares are
traded for the ten (10) trading days ending on the third trading day prior to the closing date of the IPO; provided that RSI’s common stock is then listed on the NASDAQ Stock Market or other national securities exchange on which
RSI’s shares are then traded, and the shares to be issued to such Holder shall be eligible for immediate sale, subject to a resale registration statement under the 1933 Act being declared effective by the SEC; or (iii) any combination of
(i) or (ii) above which results in such Holder disposing of up to fifty percent (50%) (the exact amount to be determined by such Holder) of its shares of Common Stock. With respect to the proviso set forth in clause (ii) above,
RSI covenants and agrees that it will file within thirty (30) days after the closing of the IPO and will use its best efforts to have declared effective within ninety (90) days after the closing of the IPO a resale registration statement
for the RSI common stock issued pursuant hereto. 
  

	9.	LEASE GUARANTEE INDEMNIFICATION 

  
 RSI indemnifies CarrAmerica for, and holds it harmless against, any loss, liability, disbursements, expenses, losses, costs or cash damages (including
reasonable attorneys’ fees) arising from and after the date hereof and incurred by, arising out of or in connection with those certain guarantees of obligations of HQ Global and its affiliates 

  

 26 

 
listed on Exhibit A, including costs and expenses of defending CarrAmerica against any claim of liability with respect thereto. 
  

	10.	PURCHASE RIGHT AGREEMENT ANTI-DILUTION PROTECTION 

  
 In the event of an IPO, the Company hereby assigns to CarrAmerica, and CarrAmerica hereby assumes, the obligation of the Company to sell 100% of the
shares of common stock required to be sold under the Purchase Right Agreement, dated as of March 4, 1998, among the Company, Robert A. Arcoro and Joseph Kaidanow with respect to each percentage point decrease in the Debt Ratio (as defined in
such Purchase Right Agreement) below 55% and above and including 40%. 
  

	11.	MISCELLANEOUS 

  
 11.1. RSI Assurance 
  
 RSI unconditionally, absolutely and irrevocably guarantees and assures the due and punctual performance and observance by the Company of
all terms, covenants and conditions of Section 4.1 of this Agreement, whether according to the present terms hereof or pursuant to any amendment in the terms, covenants and conditions hereof now or at any time hereafter made or granted, and
regardless of whether recovery on such liability may be or hereafter become barred by any statute of limitations or such liability may otherwise be or become unenforceable; provided, that, such guarantee and assurance shall be applicable to a
transaction giving rise to a violation of Section 4.1(b), 4.1(c) or 4.1(d) only to the extent such transaction has been approved by the Board, and; provided, further, such guarantee shall terminate on the closing date of an IPO.

  
 11.2. Assignment 
  
 None of the parties hereto shall be permitted to assign any
of their respective rights or obligations hereunder to any third party, except that each Holder shall be permitted to assign its rights and obligations hereunder to any other Person in connection with a transfer of shares of Common Stock by such
Holder made in accordance with Section 8 hereof; provided, that such Person agrees to be bound by this Agreement; and provided further, that any party hereto that is an entity may assign its rights and obligations hereunder in connection
with a transfer of all or substantially all of its assets or a merger, consolidation or other similar business combination transaction. Any agreement in violation hereof shall be void ab initio and of no force or effect. 
  
 11.3. Entire Agreement; Amendment 
  
 This Agreement, including the Appendices and Exhibits hereto
and other writings referred to herein or delivered pursuant hereto, constitutes the entire agreement among the parties hereto with respect to the transactions contemplated herein, and it supersedes all prior oral or written agreements, commitments
or understandings with respect to the matters provided for herein. No amendment, modification or discharge of 

  

 27 

 
this Agreement shall be valid or binding unless set forth in writing and duly executed by the Company, RSI and a Majority Consent of the Holders. 

 
 11.4. Waiver 
  
 No delay or failure on the part of any party hereto in
exercising any right, power or privilege under this Agreement or under any other instruments given in connection with or pursuant to this Agreement shall impair any such right, power or privilege or be construed as a waiver of any default or any
acquiescence therein. No single or partial exercise of any such right, power or privilege shall preclude the further exercise of such right, power or privilege, or the exercise of any other right, power or privilege. No waiver shall be valid against
any party hereto unless made in writing and signed by the party against whom enforcement of such waiver is sought and then only to the extent expressly specified therein. 
  
 11.5. Limitation on Benefit 
  
 It is the explicit intention of the parties hereto that no person or entity other than the parties hereto is or shall be entitled to bring
any action to enforce any provision of this Agreement against any of the parties hereto and their respective successors, heirs, executors, administrators, legal representatives and permitted assigns, and the covenants, undertakings and agreements
set forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, the parties hereto or their respective successors, heirs, executors, administrators, legal representatives and permitted assigns. 
  
 11.6. Binding Effect 
  
 This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors, heirs, executors, administrators, legal representatives and permitted assigns. 
  
 11.7. Governing Law 
  
 This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and
construed in accordance with the laws of Delaware (excluding the choice of law rules thereof). 
  

 28 

 11.8. Notices 
  

All notices, demands, requests, or other communications which may be or are required to be given, served, or sent by any party to any
other party pursuant to this Agreement shall be in writing and shall be hand-delivered, sent by documented overnight delivery service or mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, or, to the
extent receipt is confirmed, transmitted by telegram, telecopy, facsimile or other electronic transmission or telex, addressed as follows: 
  

	 	(i)	If to the Company: 

  
 HQ Global Holdings, Inc., 
 15950 North
Dallas Parkway, Suite 400 
 Dallas, Texas 75248 
 Attn.: Jill B. Louis 
 Facsimile No.: 972/361-8101 
  
 with a copy (which shall not constitute notice) to: 
  
 Gibson, Dunn & Crutcher 
 1717 Main Street, Suite 5500 
 Dallas, Texas
75201 
 Attn.: Harlan Cohen, Esq. 
 Facsimile No.: 214/698-3400 
  

	 	(ii)	If to RSI: 

  
 FrontLine Capital Group 
 1350 Avenue of the Americas 
 New York, New York 10019 
 Attn.: Jason
Barnett, General Counsel 
 Facsimile No.: 212/931-8001 
  
 with a copy (which shall not constitute notice) to: 
  
 Brown & Wood LLP 
 One World Trade Center 
 New York, New York 10048-0057 
 Attn.: Joseph W. Armbrust, Jr. 
 J. Gerard
Cummins 
 Facsimile No.: 212/839-5599 
  

	 	(iii)	If to CarrAmerica: 

  
 CarrAmerica Realty Corporation 
  
 1700 Pennsylvania Avenue, N.W. 
 Washington,
D.C. 20006 
 Attn.: Linda A. Madrid, General Counsel 
 Facsimile No.: 202/729-1160 
  

 29 

 with a copy (which shall not constitute notice) to: 
  
 Hogan & Hartson L.L.P. 
 Columbia Square 
 555 Thirteenth Street,
N.W. 
 Washington, D.C. 20004-1109 
 Attn.: J. Warren Gorrell, Jr. 
            David W. Bonser 
 Facsimile No.: 202/637-5910 
  
 Notice to each Holder, other than CarrAmerica, shall be delivered to such Holder at the address indicated on the signature page hereof.

  
 Each party may designate by notice in writing
a new address to which any notice, demand, request, or communication may thereafter be so given, served or sent. Each notice, demand, request, or communication which shall be hand-delivered, sent by documented overnight delivery service, mailed,
transmitted, telecopied, faxed, e-mailed, or telexed in the manner described above, or which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent, received, or delivered for all purposes at such time as it is
delivered to the addressee (with the return receipt, the delivery receipt, or the answerback being deemed conclusive, but not exclusive, evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

  
 11.9. Headings 
  
 Article and Section headings contained in this Agreement are
inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions thereof. All references to Sections
or Articles contained herein mean Sections or Articles of this Agreement unless otherwise stated. 
  
 11.10. Execution in Counterparts 
  
 To facilitate execution, this Agreement may be executed in as many counterparts as may be required; and it shall not be necessary that the
signatures of, or on behalf of, each party, or that the signatures of all persons required to bind any party, appear on each counterpart; but it shall be sufficient that the signature of, or on behalf of, each party appear on one or more of the
counterparts. Copies of executed counterparts transmitted by telecopy, facsimile or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 11.10; provided, that receipt of
copies of such counterparts is confirmed. All counterparts shall collectively constitute a single agreement. It shall not be necessary in making proof of this Agreement to produce or account for more than a number of counterparts containing the
respective signatures of, or on behalf of, all of the parties hereto. 
  

 30 

 11.11. Interpretation; Absence of Presumption 
  
 (a) For the purposes hereof, (i) words in the singular
shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,” “herein,” and “herewith” and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and Article, Section and paragraph references are to the Articles, Sections and paragraphs to this
Agreement unless otherwise specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise
specified, (iv) the word “or” shall not be exclusive, and (v) provisions shall apply, when appropriate, to successive events and transactions. 
  
 (b) This Agreement shall be construed without regard to any presumption or rule requiring construction or
interpretation against the party drafting or causing any instrument to be drafted. 
  
 11.12. Severability 
  
 Any provision hereof which is invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, without affecting in any way the remaining provisions hereof. 
  
 11.13. Specific Performance 
  
 Each of the Company, RSI and each Holder acknowledges that,
in view of the uniqueness of arrangements contemplated by this Agreement, the parties hereto would not have an adequate remedy at law for money damages in the event that this Agreement were not performed in accordance with its terms, and therefore
agrees that the parties hereto shall be entitled to specific enforcement of the terms hereof in addition to any other remedy to which the parties hereto may be entitled at law or in equity. 
  
 11.14. Consent to Jurisdiction 
  
 Each party to this Agreement: (v) agrees to commence
any action, suit or proceeding relating hereto either in a federal court located in the State of Delaware or in a Delaware state court; (w) irrevocably submits and consents to personal jurisdiction in any such suit; (x) agrees that any service
of process, summons, notice or document delivered by U.S. registered mail to such party’s respective address set forth in Section 11.8 above shall be effective service of process for any action, suit or proceeding in Delaware with respect
to any matters to which such party has submitted to jurisdiction in this Section 11.14; (y) irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in (i) any Delaware state court or (ii) any federal court located in the State of Delaware; and (z) irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any
such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT. 
  

 31 

 11.15. Litigation Costs 
  
 If any litigation with respect to the obligations of the parties under this Agreement results in a final
nonappealable order of a court of competent jurisdiction that results in a final disposition of such litigation, the prevailing party, as determined by the court ordering such disposition, shall be entitled to reasonable attorneys’ fees as
shall be determined by such court. Contingent or other percentage compensation arrangements shall not be considered reasonable attorneys’ fees. 
  
 [signature pages follow] 
  

 32 

 IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the parties hereto as of
the day first above written. 
  

			
	FRONTLINE CAPITAL GROUP
		
	By:	 	 /s/ Jason Barnett

	 Name:
	 	 Jason Barnett

	 Title:
	 	 Executive Vice President

	
	 Number of Shares of Common Stock Owned of Record:
                                       
 

	
	HQ GLOBAL HOLDINGS, INC.
		
	By:	 	 /s/ Jill B. Louis

	 Name:
	 	 Jill B. Louis

	 Title:
	 	 Vice President, Secretary, General Counsel

	
	HOLDERS
	
	CARRAMERICA REALTY CORPORATION
		
	By:	 	 /s/ Karen B. Dorigan

	 Name:
	 	 Karen B. Dorigan

	 Title:
	 	 Managing Director

	
	 Number of Shares of Common Stock Owned of Record:

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