Document:

Exhibit 10.16

                              PURCHASE AGREEMENT

         PURCHASE AGREEMENT, dated as of May 31, 2000, by and between
FrontLine Capital Group, a Delaware corporation ("FCG"), and Paribas North
America, Inc., a Delaware corporation (the "Investor").

         WHEREAS, HQ Global Workplaces Inc., a Delaware corporation ("Old
HQ"), and CarrAmerica Realty Corporation, a Maryland corporation
("CarrAmerica"), on the one hand, and VANTAS Incorporated, a Nevada
corporation ("VANTAS"), and FCG, on the other hand, have entered into that
certain Agreement and Plan of Merger, dated as of January 20, 2000, as amended
as of April 29, 2000 and as of May 30, 2000 (as amended, the "Merger
Agreement").

         WHEREAS, pursuant to the Merger Agreement, VANTAS will merge with and
into Old HQ with Old HQ continuing as the surviving corporation with the name
"HQ Global Workplaces, Inc." (the "HQ Merger").

         WHEREAS, FCG and CarrAmerica have entered into that certain Stock
Purchase Agreement, dated as of January 20, 2000, as amended as of April 29,
2000 (as amended, the "Stock Purchase Agreement"), whereby FCG agreed to
purchase from CarrAmerica 4,130,530 (subject to recalculation as provided
therein) shares of non-voting common stock, par value $.01 per share (the "Old
HQ Common Stock"), of Old HQ.

         WHEREAS, immediately following the consummation of the HQ Merger and
the transactions contemplated by the Stock Purchase Agreement and that certain
Stock Purchase Agreement, dated as of January 20, 2000, as amended as of April
29, 2000, among FCG, VANTAS, CarrAmerica, Omni Offices UK Limited and Omni
Offices (Lux) 1929 Holding Company S.A. (the "UK Stock Purchase Agreement"),
Old HQ, as the surviving corporation of the HQ Merger ("HQ Surviving
Corporation"), will merge (the "Second Step Merger") with and into newly
formed HQ Merger Subsidiary, Inc., a Delaware corporation ("M-Sub") that is a
wholly owned subsidiary of HQ Global Holdings, Inc., a Delaware corporation
("Holdco"), which will theretofore be wholly owned by HQ Surviving
Corporation, with M-Sub continuing as the surviving corporation under the name
"HQ Global Workplaces Inc." pursuant to the Agreement and Plan of Merger
related thereto (the "Second Step Merger Agreement").

         WHEREAS, pursuant to the Exchange Agreement, dated as of May 31, 2000
(the "Exchange Agreement"), Holdco and FCG have agreed to exchange 4,130,530
shares of common stock of Holdco ("Common Shares") to be received by FCG in
the Second Step Merger in exchange for the Old HQ Common Stock to be purchased
by FCG from CarrAmerica and certain other persons pursuant to the Stock
Purchase Agreement for 3,704,933.820 newly issued shares of Series A
Convertible Cumulative Preferred Stock (the "Preferred Stock") of Holdco and
warrants to purchase up to 1,660,341.752 shares of voting common stock, par
value $.01 per share (the "Voting Common Stock"), of Holdco.

         WHEREAS, upon consummation of the transactions contemplated in the
Exchange Agreement, FCG desires to sell to the Investor, and the Investor
desires to purchase from FCG, the certain securities on the terms and
conditions specified in this Agreement.

         WHEREAS, capitalized words and phrases used but not otherwise defined
herein shall have the meanings ascribed to them under the Merger Agreement.

         Accordingly, FCG and the Investor hereby agree as follows:

         1. Purchase and Sale of Securities. (a) On the terms and subject to
the conditions of this Agreement, (i) FCG agrees to sell to the Investor, and
the Investor agrees to purchase from FCG, for $2.5 million (the "Purchase
Price") (A) 61,316.564 newly issued shares of Preferred Stock (the "Preferred
Shares"), the terms of which are contained in the certificate of designations
to Holdco's certificate of incorporation (the "Certificate of Designations")
in the form attached as Exhibit A hereto, having an initial liquidation
preference equal to $2.5 million and (B) warrants to purchase up to 27,478.615
shares of Voting Common Stock (the "Warrants"), the terms of which are in the
form attached as Exhibit B hereto in respect of Warrants to purchase
18,530.359 shares of Common Stock (the "Initial Warrants") and in Exhibit C
hereto in respect of Warrants to purchase 8,948.256 shares of Common Stock.

                  (b) The closing (the "Closing") of the purchase and sale of
the securities referred to in clause (a) above shall be held at the offices of
Brown & Wood LLP, One World Trade Center, New York, New York 10048,
immediately after, and on the same date as, the Closing under the Merger
Agreement, subject to the satisfaction or waiver of the conditions set forth
in Section 5 hereof. The date on which the Closing shall occur, which shall
not extend beyond June 5, 2000, is hereinafter referred to as the "Closing
Date," and, if the Closing Date is not May 31, 2000, FCG shall notify the
Investor prior to the close of the business on the business day immediately
preceding the Closing Date. On the Closing Date, (i) FCG shall deliver
certificates issued in the Investor's name representing the Preferred Shares
and the Warrants, and (ii) the Investor shall deposit the Purchase Price in
immediately available funds with Citibank, N.A., as escrow agent (the "Escrow
Agent") under the Escrow Agreement, dated as of May 31, 2000 (the "Escrow
Agreement"), for payment to FCG; it being understood that the Closing shall
occur, and the Preferred Shares, Warrants and Purchase Price only released
from escrow, in accordance with the terms and conditions set forth in the
Escrow Agreement.

         2. Representations and Warranties of FCG. FCG hereby represents and
warrants to the Investor as of the date hereof and as of the Closing Date as
to the following matters:

                  (a) Organization and Standing. FCG is a corporation duly
organized, validly existing and in good standing as a corporation under the
laws of the State of Delaware. FCG and its subsidiaries have all requisite
corporate power and authority necessary to carry on their respective
businesses as presently conducted and to enable them to own, lease or
otherwise hold their respective properties and assets. FCG and its
subsidiaries are duly qualified to do business and in good standing in each
jurisdiction in which the conduct or nature of their respective businesses or
the ownership, leasing or holding of their respective properties or assets
makes such qualification necessary, except any such jurisdiction where the
failure to be so qualified or in good standing, individually or in the
aggregate, would not have a material adverse effect on the business, financial
condition or results of operations of Holdco and its subsidiaries taken as a
whole (an "FCG Material Adverse Effect").

                  (b) Authority. FCG has all requisite corporate power and
authority to enter into this Agreement, to perform its obligations hereunder
and to consummate the transactions contemplated hereby. All corporate acts and
other proceedings required to be taken by FCG to authorize the execution,
delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby have been duly and properly taken. This
Agreement has been duly executed and delivered by FCG and constitutes a legal,
valid and binding agreement of FCG, enforceable against FCG in accordance with
its terms, except insofar as enforcement thereof may be limited by bankruptcy,
insolvency, or other laws relating to or affecting enforcement of creditors'
rights generally or by general equitable principles.

                  (c) Preferred Shares and Warrants. (A) The Preferred Shares
have been duly authorized for issuance by Holdco pursuant to the terms of the
Exchange Agreement and, at Closing, (i) will be validly issued, fully paid and
nonassessable, (ii) will be free and clear of all Liens, other than transfer
restrictions relating to the federal securities laws, (iii) will not be issued
in violation of any preemptive or similar rights under any provisions of
applicable law, the certificate of incorporation or by-laws of Holdco or any
agreement, contract or instrument to which Holdco is a party or by which it or
any of its properties or assets is bound and (iv) assuming the accuracy of the
representations and warranties set forth in Section 3 of the Exchange
Agreement will be issued in compliance with the registration and qualification
requirements of all applicable federal securities laws as presently in effect.
The Warrants have been duly authorized for issuance by Holdco pursuant to the
terms of the Exchange Agreement and, at Closing, will be legal, valid and
binding obligations of Holdco, enforceable against Holdco in accordance with
their terms, except insofar as enforcement thereof may be limited by
bankruptcy, insolvency or other laws relating to or affecting enforcement of
creditors' rights generally or by general equity principles.

                  (B) On the Closing Date, FCG will be the sole record and
beneficial owner and holder of the Preferred Shares and the Warrants, free and
clear of all claims, conditional sale or other title retention agreements,
covenants, encumbrances, equitable interests, liens, options, pledges, rights
of first refusal, security interests, statutory liens or restrictions of any
kind, including any restrictions on voting, transfer, receipt of income, or
exercise of any other attribute of ownership ("Liens"). At the Closing, FCG
will transfer to the Investor good and marketable title to the Preferred
Shares and the Warrants, free and clear of all Liens. Except as contemplated
in Section 3(d), at the Closing, no legend or other reference to any purported
Lien will appear upon any certificate representing the Preferred Shares or the
Warrants. At the Closing, none of the Preferred Shares or the Warrants will be
transferred to FCG in violation of (i) the Securities Act of 1933, as amended
(the "Securities Act"), the securities laws of any state, or any other
federal, state, local, municipal, foreign, international, multinational, or
other constitution, law, rule, standard, requirement, administrative ruling,
order, ordinance, principle of common law, legal doctrine, code, regulation,
statute, treaty or process or (ii) any award, decision, injunction, judgment,
decree, settlement, order, process, ruling, subpoena or verdict (whether
temporary, preliminary or permanent) entered, issued, made or rendered by any
court, administrative agency, arbitrator, Governmental Entity or other
tribunal of competent jurisdiction.

                  (d) No Conflicts; Consents. The execution and delivery of
this Agreement by FCG does not, and the consummation of the transactions
contemplated hereby and compliance with the terms hereof will not conflict
with, or result in any violation of, or default (with or without notice or
lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a material loss of a
benefit under, or result in the creation of any lien, charge or encumbrance of
any kind upon any of the properties or assets of FCG or its subsidiaries
under, any provision of (i) the certificate of incorporation or by-laws of FCG
and its subsidiaries, (ii) any note, bond, mortgage, indenture, deed of trust,
license, lease, contract, commitment, agreement or arrangement to which FCG or
any of its subsidiaries is a party or by which any of them or any of their
respective properties or assets is bound or (iii) subject to the governmental
filings and other matters referred to in the succeeding sentence, any
judgment, order or decree, or statute, law, ordinance, rule or regulation,
applicable to FCG or any of its subsidiaries or any of their respective
properties or assets. Except for disclosure in any reports required pursuant
to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), no
consent, approval, license, permit, order or authorization of, or
registration, declaration or filing with, any Governmental Entity is required
to be obtained or made by or with respect to FCG or any of its subsidiaries in
connection with the execution, delivery and performance by Holdco of this
Agreement or the consummation of the transactions contemplated hereby.

         3. Representations and Warranties of the Investor. The Investor
hereby represents and warrants to FCG as follows:

                  (a) Organization and Standing. The Investor is a corporation
duly incorporated, validly existing and in good standing under the laws of the
Delaware. The Investor and its subsidiaries have all requisite corporate or
other power and authority necessary to carry on their respective businesses as
presently conducted and to enable them to own, lease or otherwise hold their
respective properties and assets. The Investor and its subsidiaries are duly
qualified to do business and are in good standing in each jurisdiction in
which the conduct or nature of their respective businesses or the ownership,
leasing or holding of their respective properties or assets makes such
qualification necessary, except any such jurisdiction where the failure to be
so qualified or in good standing, individually or in the aggregate, would not
have a material adverse effect on the business, financial condition or results
of operations of the Investor and its subsidiaries taken as a whole (an
"Investor Material Adverse Effect").

                  (b) Authority. The Investor has all requisite corporate
power and authority to enter into this Agreement, that certain Registration
Rights Agreement, in the form attached as Exhibit D hereto (the "Registration
Rights Agreement"), and that certain Stockholders Agreement, in the form
attached as Exhibit E hereto (the "Stockholders Agreement"), to perform its
obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. All corporate and other acts and other
proceedings required to be taken by the Investor to authorize the execution,
delivery and performance of this Agreement, the Registration Rights Agreement
and the Stockholders Agreement and the consummation of the transactions
contemplated hereby and thereby have been duly and properly taken. This
Agreement has been, and, at the Closing, the Registration Rights Agreement and
the Stockholders Agreement will have each been, duly executed and delivered by
the Investor and each constitutes or will constitute, as applicable, a legal,
valid and binding obligation of the Investor, enforceable against the Investor
in accordance with its terms, except insofar as enforcement thereof may be
limited by bankruptcy, insolvency or other laws relating to or affecting
enforcement of creditors' rights generally or by general equity principles.

                  (c) No Conflicts; Consents. The execution and delivery of
this Agreement, the Registration Rights Agreement and the Stockholders
Agreement by the Investor does not, and the consummation of the transactions
contemplated hereby and thereby and compliance by the Investor with the terms
hereof and thereof will not, conflict with, or result in any violation of or
default (with or without notice or lapse of time, or both) under, or give rise
to a right of termination, cancellation or acceleration of any obligation or
to loss of a material benefit under, or result in the creation of any lien,
charge or encumbrance of any kind upon any of the properties or assets of the
Investor or its subsidiaries under, any provision of (i) the declaration of
trust, partnership agreement, certificate of limited partnership, limited
liability company agreement, charter or by-laws of the Investor and its
subsidiaries, (ii) any note, bond, mortgage, indenture, deed of trust, loan
document, license, lease, contract, commitment, agreement or arrangement to
which the Investor or any of its subsidiaries is a party or by which any of
them or any of their respective properties or assets is bound or (iii) any
judgment, order or decree, or statute, law, ordinance, rule or regulation,
applicable to the Investor or any of its subsidiaries or any of their
respective properties or assets. Except for disclosure in any reports required
pursuant to the Exchange Act, no consent, approval, license, permit, order or
authorization of, or registration, declaration or filing with, any
Governmental Entity is required to be obtained or made by or with respect to
the Investor in connection with the execution, delivery and performance of
this Agreement, the Registration Rights Agreement and the Stockholders
Agreement by the Investor or the consummation of the transactions contemplated
hereby and thereby.

                  (d) Investment Representation. The Investor is purchasing
Preferred Shares and Warrants pursuant to this Agreement for its own account
for investment only and not with a view towards their distribution or resale.
The Investor represents that it is an "accredited" investor within the meaning
of Rule 501 promulgated under the Securities Act of 1933, as amended (the
"Securities Act"), has such knowledge and experience in financial and business
matters that enable it to evaluate the merits and risks of investment in the
Preferred Shares and Warrants, is able to bear the economic risk of a loss of
its entire investment therein and is prepared to hold the Preferred Shares and
the Warrants for an indefinite period of time. The Investor has received the
opportunity to ask questions, and has obtained the related answers, regarding
the business, financial condition and results of operations of Holdco, VANTAS
and Old HQ and the terms and conditions of the Preferred Shares and the
Warrants. The Investor has received all of the information regarding Holdco,
VANTAS and Old HQ that it has requested. FCG has informed the Investor that
the Preferred Shares and the Warrants have not been registered under the
Securities Act and may not be sold, transferred or otherwise assigned absent
such registration or an exemption therefrom. FCG has also informed the
Investor that any routine sale of Preferred Shares and Warrants made in
reliance upon Rule 144 promulgated under the Securities Act can be made only
in accordance with the terms and conditions of such Rule and, further, that in
case such Rule is not applicable to any sale of Preferred Shares and Warrants,
as applicable, resale thereof may require compliance with some other exemption
under the Securities Act prior to resale. FCG has informed the Investor that
certificates representing the Preferred Shares and Warrants issued pursuant to
this Agreement bear the following legend:

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. SUCH SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE,
TRANSFERRED OR OTHERWISE ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT WITH RESPECT THERETO UNDER SUCH ACT OR AN EXEMPTION FROM
REGISTRATION FOR SUCH SALE, OFFER, TRANSFER OR OTHER ASSIGNMENT AS SUPPORTED
BY SUCH CERTIFICATIONS, OPINIONS AND OTHER DOCUMENTATION, IF ANY, AS ARE
REASONABLY REQUESTED AND ACCEPTABLE TO THE CORPORATION."

         4.  Covenants.

                  (a) Transfer of Rights. At the Closing, FCG shall transfer,
assign and convey to the Investor any and all rights to which FCG is entitled
under the Exchange Agreement and in respect of the Preferred Shares and the
Warrants, all as set forth in the Assignment Agreement attached as Exhibit F
hereto.

                  (b) Consummation of the Transactions. Subject to the terms
and conditions of this Agreement, each party shall use its commercially
reasonable efforts to cause the Closing to occur upon the terms and conditions
set forth herein. FCG shall cooperate with the Investor, and the Investor
shall cooperate with FCG, in filing any necessary applications, reports or
other documents with, giving any notices to, and seeking any consents from,
all Governmental Entities and all third parties as may be required in
connection with the consummation of the transactions contemplated by this
Agreement, and each party requesting such cooperation shall reimburse the
other party's reasonable out-of-pocket expenses in providing such cooperation.

                  (c) Lock-Up. In connection with an initial public offering
of Holdco's securities, the Investor agrees, and the Investor shall secure the
agreement of any transferee therefrom, upon request of the lead underwriter,
not to sell or otherwise transfer or dispose of any Common Stock of Holdco
(other than to an affiliate of the Investor or another holder of Preferred
Stock) for a period following the effective date of a registration statement
of Holdco filed under the Securities Act with respect to such offering equal
to the lesser of (i) the lock-up period applicable to (a) FCG, (b) CarrAmerica
(so long as it owns in excess of 9% of the outstanding shares of Common
Stock), (c) holders of Preferred Stock, and (d) senior executive officers of
Holdco and (ii) six (6) months.

         5.  Conditions to Closing.

                  (a) Each Party's Obligation. The respective obligations of
each party hereto to effect the transactions contemplated by this Agreement
are subject to the satisfaction (or waiver) as of the Closing of the following
conditions: (i) the HQ Merger and the Second Step Merger shall have been
consummated; (ii) no statute, rule, regulation, executive order, decree,
temporary restraining order, preliminary or permanent injunction or other
order shall have been enacted, entered, promulgated, enforced or issued by any
Governmental Entity that prohibits the performance of this Agreement or the
consummation of the transactions contemplated by this Agreement; and (iii) no
action, claim, proceeding or investigation shall be pending or threatened by
any Governmental Entity (other than a court acting in response to an action,
claim or proceeding brought by a non-Governmental Entity) that, if successful,
would prohibit the performance of this Agreement or the consummation of the
transactions contemplated by this Agreement.

                  (b) FCG's Obligation. The obligations of FCG hereunder are
subject to the satisfaction (or waiver by FCG) as of the Closing of the
following conditions:

                         (i) The representations and warranties of the
Investor made in this Agreement shall be true and correct as of the date
hereof and as of the time of the Closing as though made as of such time,
except (1) to the extent such representations and warranties expressly relate
to an earlier date (in which case such representations and warranties shall be
true and correct on and as of such earlier date) or (2) where the failure of
any representations and warranties other than the representations and
warranties set forth in Sections 3(b) and 3(d) to be true and correct would
not have an Investor Material Adverse Effect, and the Investor shall have duly
performed, complied with and satisfied in all material respects all covenants,
agreements and conditions required by this Agreement to be performed, complied
with or satisfied by the Investor by the time of Closing. At the Closing, the
Investor shall have delivered to FCG a certificate, dated the Closing Date and
signed by the Chief Financial Officer of the Investor, confirming the
foregoing.

                         (ii) At the Closing, the Investor shall have
delivered to Holdco a certificate of the Chief Financial Officer, dated the
Closing Date, attesting to the authorization of the Investor to consummate the
transactions contemplated by this Agreement.

                         (iii) All filings, registrations, authorizations,
permits, consents and approvals required for the Investor's consummation of
the transactions contemplated by this Agreement shall have been made or
obtained, as applicable.

                         (iv) At the Closing, the Investor shall have executed
and delivered to Holdco the Stockholders Agreement and the Registration Rights
Agreement and (assuming due execution and delivery by the other parties
thereto) the same shall be in full force and effect.

                         (v) At the Closing, the Investor shall have deposited
the Purchase Price in immediately available funds with the Escrow Agent.

                  (c) The Investor's Obligation. The obligations of the
Investor hereunder are subject to the satisfaction (or waiver by the Investor)
as of the Closing of the following conditions:

                         (i) The representations and warranties of FCG made in
this Agreement shall be true and correct as of the date hereof and as of the
time of the Closing as though made as of such time, except (1) to the extent
such representations and warranties expressly relate to an earlier date (in
which case such representations and warranties shall be true and correct on
and as of such earlier date) or (2) where the failure of any representations
and warranties other than the representations and warranties set forth in
Section 2(c) to be true and correct would not have an FCG Material Adverse
Effect, and FCG shall have duly performed, complied with and satisfied in all
material respects all covenants, agreements and conditions required by this
Agreement to be performed, complied with or satisfied by FCG by the time of
Closing. At the Closing, FCG shall have delivered to the Investor a
certificate, dated the Closing Date and signed by an officer of FCG,
confirming the foregoing.

                         (ii) The representations and warranties of Holdco
made in the Exchange Agreement shall be true and correct as of the date of the
Exchange Agreement and as of the time of the Closing as though made as of such
time, except (1) to the extent such representations and warranties expressly
relate to an earlier date (in which case such representations and warranties
shall be true and correct on and as of such earlier date), (2) where the
failure of any representations and warranties other than the representations
and warranties set forth in Sections 2(d), (e), (f) or (g) of the Exchange
Agreement to be true and correct would not have a Holdco Material Adverse
Effect (as defined in the Exchange Agreement) or (3) that the representation
and warranty set forth in Section 2(d) of the Exchange Agreement shall be true
and correct other than in any de minimis respect, the acquisition by FCG of
the Preferred Shares and Warrants pursuant to the Exchange Agreement shall
have been consummated, and all conditions specified in the Exchange Agreement
shall have been satisfied, and there shall have been no waivers to such
conditions.

                         (iii) At the Closing, FCG shall have delivered to the
Investor a secretary's certificate, dated the Closing Date, attesting to the
authorization of FCG to consummate the transactions contemplated by this
Agreement.

                         (iv) Since the date of this Agreement, Holdco and its
subsidiaries taken as a whole shall not have suffered a Holdco Material
Adverse Effect.

                         (v) All filings, registrations, authorizations,
permits, consents and approvals required for FCG's consummation of the
transactions contemplated by this Agreement shall have been made or obtained,
as applicable.

                         (vi) At the Closing, Holdco shall have executed and
delivered to the Investor the Stockholders Agreement and the Registration
Rights Agreement and (assuming due execution and delivery by the other parties
thereto) the same shall be in full force and effect.

                         (vii) At the Closing, FCG shall have executed and
delivered to the Investor the Assignment Agreement in the form of Exhibit F
hereto and (assuming due execution and delivery by the Investor) the same
shall be in full force and effect.

                         (viii) At or prior to the Closing, Holdco or Old HQ
shall have received debt financing the terms of which are substantially to the
effect set forth in the commitment letter of Paribas attached as Exhibit G
hereto in respect of the bank term debt and either the commitment letter of
Blackstone attached as Exhibit H hereto in respect of the high yield or
mezzanine debt or the commitment letter of Warburg Dillon Read LLC attached as
Exhibit I hereto in respect of bridge financing, whether such financing is
obtained from such parties or any other party, and, at the Closing, except as
disclosed in Schedule 5(c), no other indebtedness of Holdco for borrowed money
shall be outstanding.

                         (ix) At or prior to Closing, the Certificate of
Designations in the form of Exhibit K hereto shall have been accepted for
filing by, and duly filed with, the Secretary of State of the State of
Delaware.

                         (x) At the Closing, the Investor shall have received
the favorable opinion, dated the Closing Date, of Brown & Wood LLP, counsel to
Holdco and FCG, substantially in the form attached as Exhibit J hereto.

                         (xi) At the Closing, the Investor shall have received
an agreed upon procedures letter, dated the Closing Date, from Ernst & Young
LLP, substantially in the form attached as Exhibit K hereto.

                         (xii) At the Closing, none of the Merger Agreement,
the Second Step Merger Agreement and the UK Stock Purchase Agreement shall
have been amended in any material respect other than an extension of the
Closing of the transactions contemplated thereunder until June 5, 2000, and
the conditions specified in the Merger Agreement, the Second Step Merger
Agreement and the UK Stock Purchase Agreement shall have been satisfied in all
material respects, and there shall have been no waivers to such conditions in
any material respect.

                         (xiii) At the Closing, EOP Operating Limited
Partnership or an affiliate thereof shall purchase Preferred Stock and
Warrants from Holdco and FCG for an aggregate amount of $75 million.

                         (xiv) At the Closing, the Investor shall have
received an executed Management Rights Letter substantially in the form
attached as Exhibit L hereto and an opinion of counsel from Holdco stating
that Holdco is an operating company within the meaning of the Plan Asset
Regulations.

                         (xv) At the Closing, FCG shall have delivered the
Preferred Shares and the Warrants to the Investor.

                  (d) Frustration of Closing Conditions. Neither FCG nor the
Investor may rely on the failure of any condition set forth in Section 5(a),
Section 5(b) or Section 5(c), respectively, to be satisfied if such failure
was caused by such party's failure to perform its obligations hereunder or to
use its commercially reasonable efforts to cause the Closing to occur as
required by Section 5.

         6. Further Assurances. From time to time, as and when requested by
another party hereto, a party hereto shall execute and deliver, or cause to be
executed and delivered, all such documents and instruments and shall take, or
cause to be taken, all such further or other actions as such other party may
reasonably deem necessary or desirable to consummate the transactions
contemplated by this Agreement.

         7. Assignment. This Agreement and the rights and obligations
hereunder shall not be assignable or transferable by (i) FCG without the prior
written consent of the Investor or (ii) by the Investor without the prior
written consent of Holdco and FCG. Any attempted assignment in violation of
this Section 7 shall be void ab initio and of no further force and effect.

         8. No Third-Party Beneficiaries. This Agreement is for the sole
benefit of the parties hereto and their successors and permitted assigns, and
nothing herein expressed or implied shall give or be construed to give to any
person, other than the parties hereto and such permitted successors and
assigns, any legal or equitable rights hereunder.

         9. Amendments. No amendment, modification or waiver in respect of
this Agreement shall be effective unless it shall be in writing and signed by
the party against whom such amendment, modification or waiver is asserted.

         10. Representations, Warranties and Agreements to Survive Delivery.
All representations, warranties and agreements contained in this Agreement or
in certificates of officers of FCG or the Investor submitted pursuant hereto
shall remain operative and in full force and effect for a period of one year
(or, in the case of the representation and warranty specified in Section
5(A)(b) of the Merger Agreement, for the period of any applicable statute of
limitations) following the Closing. Notwithstanding anything to the contrary
contained in the foregoing, nothing in this Section 10 is intended to indicate
that any representation or warranty will be true at any time other than at the
time of execution of this Agreement and at the Closing.

<PAGE>

         11. Indemnification.

                  (a) Indemnity by FCG and Holdco. FCG and Holdco, jointly and
severally, shall indemnify the Investor and its affiliates, controlling
persons, constituent partners and subsidiaries and their directors, officers,
members, employees, attorneys and representatives against all expenses, costs,
losses, claims, damages, liabilities and judgments (including, without
limitation, reasonable attorney's fees and expenses) incurred or sustained by
any such party resulting from (i) any breach of the representations and
warranties of FCG set forth in Section 2 or of Holdco in Section 2 of the
Exchange Agreement, (ii) FCG's, Holdco's or VANTAS' acts or failure to act,
(iii) any misstatements or omissions made in any disclosure or other
information or materials delivered or made available to the Investor in
connection with the investment contemplated under this Agreement, (iv) the
action or failure to act by an indemnified party with FCG's, Holdco's or
VANTAS' consent or in reliance on FCG's, Holdco's or VANTAS' action or failure
to act or (v) any and all environmental liabilities costs and expenses arising
out of or incurred in connection with the consummation of the Merger, the
Second Step Merger or the investment contemplated in this Agreement; provided,
however, that such indemnity shall not extend to any expenses, costs, losses,
claims, damages, liabilities or judgments to the extent arising out of (A) the
gross negligence or willful misconduct of any person indemnified under this
Section 11(a) as determined by a court of competent jurisdiction in a final,
non-appealable judgment or (B) a breach by the Investor of its representations
and warranties contained herein.

         FCG agrees to indemnify the Investor against any Company Level Loss
or Direct Loss (each as defined below) arising out of (i) Rule 10b-5 under the
Exchange Act with respect to VANTAS' failure to file reports with the
Securities and Exchange Commission as required under the Exchange Act prior to
the date hereof or (ii) the Shareholder Litigation (as defined in the Form of
Indemnification and Escrow Agreement attached as Exhibit E to the Merger
Agreement (the "Indemnification Agreement"). FCG shall pay the Investor, in
full and complete satisfaction of FCG's obligation under clause (ii) of this
paragraph, an amount (which, in the case of a Direct Loss, shall not exceed
such Direct Loss) equal to the product of (A) a fraction, the numerator of
which equals the sum of the number of shares of Preferred Stock (determined on
an As-Converted Basis) and the number of shares of Common Stock purchasable
upon exercise of the Initial Warrants, in each case owned by the Investor at
the Closing, and the denominator of which equals the sum of the number of
shares of Preferred Stock (determined on an As-Converted Basis) and the number
of shares of Common Stock purchasable upon exercise of the Initial Warrants,
in each case owned by the Investor at the Closing, and the number of shares of
Common Stock owned by FCG at the Closing, multiplied by (B) the dollar value
of any recovery obtained by FCG from CarrAmerica under the Indemnification
Agreement. A "Company Level Loss" shall mean any loss, liability, claim,
damage or expense (including, without limitation, reasonable attorney's fees
and expenses) incurred by Holdco or Old HQ or its successor; it being
understood that a Company Level Loss shall not include (i) any consequential,
incidental or punitive damages or (ii) any Direct Loss; it being understood
that a Company Level Loss shall include any loss or damage suffered by the
Investor as a result of a diminution in value (either directly or indirectly)
of the interest held by the Investor in Holdco. A "Direct Loss" shall mean any
loss, liability, claim, damage or expense (including reasonable attorney's
fees and expenses) incurred by the Investor; it being understood that a Direct
Loss shall not include (i) any consequential, incidental or punitive damages,
(ii) any Company Level Loss or (iii) any loss or damage suffered by the
Investor as a result of a diminution in value (either directly or indirectly)
of the interest held by the Investor in Holdco.

                  (b) Indemnity by the Investor. The Investor shall indemnify
FCG, Holdco and their respective directors, officers and employees against all
expenses, costs, losses, claims, damages, liabilities and judgments
(including, without limitation, reasonable attorney's fees and expenses)
incurred or sustained by any such party resulting from any breach of the
representations and warranties of the Investor set forth in Section 3;
provided, however, that such indemnity shall not extend to any expenses,
costs, losses, claims, damages, liabilities and judgments to the extent
arising out of (A) the gross negligence or willful misconduct of any person
indemnified under this Section 11(b) as determined by a court of competent
jurisdiction in a final, non-appealable judgment or (B) a breach by FCG or
Holdco, as the case may be, of the representations and warranties set forth in
Section 2 of this Agreement or Section 2 of the Exchange Agreement,
respectively. Under no circumstances shall the Investor be liable to FCG,
Holdco or any other indemnified party under this Section 11(b) for any
punitive, exemplary, consequential or indirect damages arising therefrom.

                  (c) Notice of Actions or Proceedings. In case any action or
proceeding shall be commenced involving any party in respect of which
indemnity may be sought pursuant to Sections 11(a) or 11(b) (the "indemnified
party"), the indemnified party shall promptly notify the party against whom
such indemnity may be sought (the "indemnifying party") in writing of such
action or proceeding; provided, however, that failure of an indemnified party
to provide such notice shall not relieve the indemnifying party of its
obligations under this Section 11 if such failure does not materially and
adversely affect the rights of the indemnifying party.

                  (d) Defense of Actions and Proceedings. The indemnifying
party may assume the defense of such action or proceeding provided that the
expenses of the indemnified party are reimbursed as they are incurred
(including, without limitation, the payment of all reasonable and documented
fees and expenses of counsel to the indemnified party) and the indemnifying
party has not failed to comply with any such reimbursement request. Any
indemnified party shall have the right to employ separate counsel in any such
action or proceeding and participate in the defense thereof, but the
reasonable fees and expenses of such counsel shall be at the expense of the
indemnified party, unless (i) the employment of such counsel shall have been
specifically authorized in writing by the indemnifying party, (ii) the
indemnifying party shall have failed to assume the defense of such action or
proceeding or (iii) the named parties to any such action (including any
impleaded parties) include both the indemnified party and the indemnifying
party, and the indemnified party shall have been reasonably advised by such
counsel that the representation of the indemnifying party and the indemnified
party by the same counsel would be inappropriate due to actual or potential
differing interests between the indemnifying party and the indemnified party
or there are defenses that are available to the indemnified party that may be
in conflict with or contradict those available to the indemnifying party (in
which case the indemnifying party shall not have the right to assume the
defense of such action on behalf of the indemnified party). In any such case,
the indemnifying party shall not, in connection with any one action or
separate but substantially similar or related actions or proceedings in the
same jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys for all indemnified parties and all such reasonable
fees and expenses shall be reimbursed as they are incurred. The indemnifying
party shall indemnify and hold harmless the indemnified party from and against
any and all expenses, costs, losses, claims, damages, liabilities and
judgments by reason of any settlement made by the indemnified party of any
action effected with the indemnifying party's written consent. The
indemnifying party shall not, without the prior written consent of the
indemnified party, effect any settlement or compromise of, or consent to the
entry of judgment with respect to, any pending or threatened action or
proceeding in respect of which the indemnified party is or could have been a
party and indemnity may be or could have been sought hereunder by the
indemnified party, unless (i) such settlement, compromise or judgment includes
an unconditional release of the indemnified party from all liability on claims
that are the subject matter of such action or proceeding and does not include
a statement as to or an admission of fault or culpability by or on behalf of
the indemnified party and (ii) reasonable prior written notice of settlement,
compromise or judgment is given to the indemnified party.

         12. 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:

                  (i)      if to FCG,

                           FrontLine Capital Group
                           1350 Avenue of the Americas
                           New York, New York.  10019
                           Attention: Jason M. Barnett, Esq.
                                        General Counsel
                           Tel:   (212) 931-8000
                           Fax:   (212) 931-8001

                           with copies to:

                           Edward F. Petrosky, Jr., Esq.
                           J. Gerard Cummins, Esq.
                           Brown & Wood LLP
                           One World Trade Center
                           New York, New York  10048
                           Tel:   (212) 839-5300
                           Fax:   (212) 839-5599

                           (ii)     if to the Investor,

                           Paribas North America, Inc.

                           Attention:
                           Tel:
                           Fax:

or such other address as any party may from time to time specify by written
notice to the other parties hereto.

         13. Interpretation; Exhibits and Schedules. The headings contained in
this Agreement and in any Exhibit to this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement. All Exhibits annexed hereto or referred to herein are hereby
incorporated in and made a part of this Agreement as if set forth in full
herein. Any capitalized term used in any Exhibit but not otherwise defined
therein shall have the meaning ascribed to it in this Agreement. This
Agreement is gender neutral. Any word in this Agreement that refers to a
particular gender shall also refer to all other genders, including masculine,
feminine and neuter.

         14. 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 effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party.

         15. Entire Agreement. This Agreement contains the entire agreement
and understanding between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings relating
to such subject matter. The parties hereto shall not be liable or bound to any
other party in any manner by any representations, warranties or covenants
relating to such subject matter except as specifically set forth herein.

         16. Brokers. Each party hereto hereby represents and warrants that no
brokers or finders have acted for such party in connection with this
Agreement.

         17. Severability. If any provision of this Agreement (or any portion
thereof) or the application of any such provision (or any portion thereof) to
any person or circumstance shall be held invalid, illegal or unenforceable in
any respect by a court of competent jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other provision hereof (or the
remaining portion thereof) or the application of such provision to any other
persons or circumstances.

         18. Consent to Jurisdiction. The Investor and FCG agree to commence
any action, suit or proceeding arising out of this Agreement or transactions
contemplated hereby against the other party either in a federal court located
in the State of New York or if such suit, action or other proceeding may not
be brought in such court for jurisdictional reasons, in a New York state
court. Each party to this Agreement submits and consents to personal
jurisdiction in any such litigation. The Investor and FCG further agree that
service of any process, summons, notice or document delivered by U.S.
registered mail to such party's respective address set forth above shall be
effective service of process for any action, suit or proceeding in New York
with respect to any matters to which it has submitted to jurisdiction in this
Section 18. The Investor and FCG irrevocably and unconditionally waive 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 New York
state court or (ii) any federal court located in the State of New York, and
hereby further 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 OF THE PARTIES
HERETO IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT.

         19. Governing Law. This Agreement shall be governed by and construed
in accordance with the internal laws of the State of New York applicable to
agreements made and to be performed entirely within such State, without regard
to the conflicts of law principles of such State.

<PAGE>

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

                                     FRONTLINE CAPITAL GROUP

                                     By:   /s/ Jason M. Barnett
                                         -------------------------------------
                                         Name:   Jason M. Barnett
                                         Title:  Executive Vice President

                                     HQ GLOBAL HOLDINGS, INC.,
                                        solely as to its express obligations
                                        under Section 11

                                     By:   /s/ Jill Louis
                                         -------------------------------------
                                         Name:   Jill Louis
                                         Title:  Vice President, General
                                                 Counsel and Secretary

                                     PARIBAS NORTH AMERICA, INC.

                                     By:   /s/ Donna M. Kiernan
                                         -------------------------------------
                                         Name:   Donna M. Kiernan
                                         Title:  Chief Financial Officer

<PAGE>

                                 SCHEDULE 2(c)
                                 -------------

                                    Nothing

<PAGE>

                                 SCHEDULE 2(d)

                         CAPITAL STOCK OF THE COMPANY

         1.    Section 5 of the Stockholders Agreement, dated as of the date
               hereof (the "CarrAmerica Stockholders Agreement"), by and among
               FrontLine Capital Group, HQ Global Holdings, Inc. and
               CarrAmerica Realty Corporation contains Participation Rights
               granting CarrAmerica the right to purchase its "pro rata share"
               of any issuance by the Company of equity securities (subject to
               certain qualifications).

         2.    Section 5 of the Stockholders Agreement, dated the date hereof,
               by and among FrontLine Capital Group, HQ Global Holdings, Inc.
               and certain holders of Series A Preferred Stock contains
               Participation Rights granting holders of Series A Preferred
               Stock the right to purchase their "pro rata share" of any
               issuance by the Company of equity securities (subject to
               certain qualifications).

         3.    Warrants to purchase 2,143,332 shares of Common Stock (subject
               to antidilution rights), dated the date hereof, issued to
               holders of Series A Preferred Stock.

         4.    Warrants to purchase 1,498,538 shares of Common Stock (subject
               to antidilution rights), dated the date hereof, issued to UBS
               AG Stamford Branch.

         5.    Warrant Agreement dated as of March 4, 1998 by and between
               OmniOffices, Inc. and Robert A. Arcoro for the purchase of
               100,000 shares at $20.00 per share. Mr. Arcoro has exercised
               his warrant for 99,000 shares. Only 1,000 shares remain subject
               to this agreement.

         6.    Warrant Agreement dated as of March 4, 1998 by and between
               OmniOffices, Inc. and Joseph Kaidanow for the purchase of
               85,000 shares at $20.00 per share. Mr. Kaidanow has exercised
               his warrant for 50,000 shares. Only 35,000 shares remain
               subject to this agreement.

         7.    Warrant Agreement dated as of March 4, 1998 by and between
               OmniOffices, Inc. and Kimberly L. Arcoro for the purchase of
               32,500 shares at $20.00 per share.

         8.    Warrant Agreement dated as of March 4, 1998 by and between
               OmniOffices, Inc. and Robert A. Arcoro, Jr. for the purchase of
               32,500 shares at $20.00 per share.

               o   The Company is obligated to have authorized and in
                   reserve the shares of common stock receivable upon
                   exercise of each of the warrants under the Warrant
                   Agreements.

               o   In the event the Company issues non-voting common stock
                   of the Company that is less than fair market value
                   (other than stock options or restricted stock pursuant
                   to stock options plans) the warrantholders are entitled
                   to an adjustment of the warrant shares purchasable under
                   the Warrant.

               o   The Warrant Agreements contain antidilution provisions
                   that are triggered by distributions to holders of equity
                   capital stock (dividends) and the repurchase of common
                   stock by the Company of common stock at a price that is
                   greater than the fair market value of common stock on
                   the date of the repurchase.

         9.    Purchase Right Agreement, dated as of March 4, 1998, by and
               among OmniOffices, Inc., Robert A. Arcoro and Joseph Kaidanow
               pursuant to which if immediately prior the first date on which
               20% or more of the outstanding shares of common stock of the
               Company have been publicly distributed or registered and such
               shares are publicly traded on a national exchange or
               over-the-counter market, the debt ratio is less than 55.0% (the
               Company is obligated to offer the warrantholders the right to
               purchase up to an aggregate of 6,818 shares of common stock of
               the Company per percentage point below the 55.0% (subject to
               the adjustments set forth in Section 5(a) of the Warrant
               Agreement). This Purchase Right is subject to antidilution
               protection for the benefit of the Company pursuant to Section
               10 of the CarrAmerica Stockholders Agreement.

         10.   [Gary Kusin holds rights to receive 120,000 shares of Class B
               Non-Voting Stock and 300,000 options to acquire Non-Voting
               Common Stock pursuant to his employment contract. These rights
               accelerate in vesting upon a change in control.]

         11.   Pursuant to the Merger Agreement, at the effective time of the
               Merger, each outstanding option to purchase shares of VANTAS
               Common Stock granted under the VANTAS 1996 Stock Option Plan
               (the "VANTAS 1996 Stock Options"), is automatically amended to
               constitute an option to acquire the number of shares of Voting
               Common Stock of the Company as the holder of such VANTAS 1996
               Stock Option would have been entitled to receive as Merger
               Consideration in the Merger had such holder exercised such
               VANTAS 1996 Stock Option (free of and without regard to any
               limitation on the vesting of the right to exercise such VANTAS
               1996 Stock Option) immediately prior to the effective time of
               the Merger at an exercise price equal to the quotient of (a)
               the applicable exercise price for each such VANTAS 1996 Stock
               Option immediately prior to the effective time of the Merger
               divided by (b) the Conversion Ratio.

               The following is a list of options granted under the VANTAS
               1996 Stock Option Plan that are subject to the foregoing:

               o   36,750 Options at an exercise price of $2.00

               o   250 Options at an exercise price of $4.75

               o   40,458 Options at an exercise price of $4.00

         12.   As soon as practicable following the effective time of the
               Merger, Mr. Gary Kusin and Mr. David Rupert will receive
               options to purchase common stock of the Company with a value
               equal to 6X and 4X, respectively, of their respective Base
               Compensation, or $3,600,000 or $1,600,000, respectively, which
               will become exercisable over a four-year period (37.5% after 18
               months, then 12.5% every 6 months up to 100% in total, provided
               in each case that the executive is still employed by the
               Company on the applicable vesting date). The exercise price per
               share will equal the per share valuation used for purposes of
               the Merger.

         13.   As soon as practicable following the effective time of the
               Merger, Mr. Kusin and Mr. Rupert will receive a grant of
               restricted common stock in the Company with a value equal to
               2.5X and 1.5X, respectively, of their respective Base
               Compensation, or $1,500,000 or $600,000, respectively, which
               will become vested over a four-year period (37.5% after 18
               months, then 12.5% every 6 months up to 100% in total, provided
               in each case that the executive is still employed by the
               Company on the applicable vesting date).

         14.   It is anticipated that options and restricted stock with
               respect to 3% and 1%, respectively, of the outstanding common
               and preferred stock of the Company will be issued in connection
               with employee incentive compensation.

<PAGE>

<TABLE>
<CAPTION>

                                 SCHEDULE 5(c)

               HQ Global Holdings, Inc: Outstanding Indebtedness
                          Existing Letters of Credit

JP Morgan Letters of Credit
---------------------------

LC#                      Letter of Credits Issued     Beneficiary                            Maturity Date
<S>                      <C>                          <C>                                    <C>
868684                   $    828,630                 RCPI Trust                                      6/1/01

868814                   $    500,000                 W12/14 Wall Acquisition Associates              6/4/01
                                                      L.L.C.

868611                   $    800,000                 405 Lexington, L.L.C.                          6/23/01

868619                   $  1,327,000                 Charleston Landings Associates L.P.             7/1/01

868877                   $    684,000                 Tst 300 Park, L.L.C.                            9/1/00

868897                   $    450,000                 Petula Associates, LTD                         10/21/00

868896                   $    635,850                 Praedium II Broadstone                         10/29/00

868931                   $  1,715,980                 Paramount Group, Inc.                          11/10/00

868934                   $    800,000                 Gainey Ranch Town Center                       12/23/00

868805                   $    526,837.50              233 Broadway Owners L.L.C.                     12/31/00

868806                   $    800,000                 425 Market Street                              12/31/00

868944                   $    600,000                 Commerce Plaza Partners                        1/24/01

868943                   $    450,000                 Cornerstone Two L.C.C.                         1/27/01

Total letters of credit issued to JP Morgan                                    $10,118,297.50

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

Schedule 5(c)
         (continued)

First Union Letters of Credit

      Subsidiary         Issuing Bank     LC#            Stated Amount                 Beneficiary                Expiry Date
<S>                      <C>            <C>            <C>                      <C>                               <C>

OmniOffices, Inc.        First Union    S147299        $     37,192.04          Weeks Realty, L.P.                   May 31, 2000

OmniOffices, Inc         First Union    S139489        $    148,000.00          Connecticut General Life Ins.       April 30, 2000
                                                                                Co.

OmniOffices, Inc         First Union    S145655        $     46,000.00          Equitable Life Assurance          December 21, 1999
                                                                                Society of USA, Boston, MA

OmniOffices, Inc         First Union    S402898        $     50,000.00          Golub & Company                    August 31, 2000

HQ Business Centers of   First Union    S148598        $    600,000.00          Fairview Associates                August 31, 2000
North Carolina, Inc.

OmniOffices, Inc         First Union    S116794        $     24,221.33          American National Bank & Trust      June 30, 2000
                                                                                Co. of Chicago

OmniOffices, Inc         First Union    S108660        $    240,000.00          Trizechahn Office Holdings         August 31, 2000

OmniOffices, Inc         First Union    S402416        $     16,000.00          Talcott Realty I Ltd.               June 30, 2000

OmniOffices, Inc         First Union    SM408124C      $     31,751.76          EOP-Westchase Office Properties      May 30, 2000
                                                                                Trust

OmniOffices, Inc         First Union    S063275        $    140,000.00          Realty Bancorp                      March 15, 2000

OmniOffices, Inc         First Union    SM408488C      $     50,000.00          OTR                                January 31, 2000

Executive Office         First Union    S163998        $    775,000.00          Park Avenue Properties             October 15, 2000
Network, Ltd.

OmniOffices, Inc         First Union    S403D44        $    180,000.00          Carol Management Corp.               May 1, 2000

OmniOffices, Inc         First Union    S101387        $    750,000.00          Madison Avenue Associates          August 30, 2000

OmniOffices, Inc         First Union    S114735        $     33,124.05          Talcott Realty I Ltd.               April 30, 2000

OmniOffices, Inc         First Union    S104374        $    160,000.00          DRW Chesterbrook Associates        November 1, 2000

OmniOffices, Inc         First Union    S139498        $     40,000.00          Metro Corp Center, LLC             January 31, 2000

OmniOffices, Inc         First Union    SM408720C      $    250,000.00          Spieker Properties, LP             August 30, 2000

Kiowa, Inc.              First Union    S151696        $    800,000.00          Shorenstein Management, Inc.        April 15, 2000

OmniOffices, Inc         First Union    S111557        $    150,000.00          Acquiport Corp. Ridge, Inc.       February 20, 2000

                         First Union    S132017        $     70,000.00          Airlines Reporting Corp.          September 30, 2000

         Total Letter of Credit for First Union                                                               $4,591,289.18

</TABLE>Exhibit 10.17

-----------------------------------------------------------------------------

                            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 herein

                                  dated as of

                                 May 31, 2000
-----------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>

                               TABLE OF CONTENTS

                                                                                                               Page

<S>      <C>                                                                                                    <C>
1.       Definitions...........................................................................................   1

2.       Board of directors of the COMPANY.....................................................................   6
         2.1.     Number of Directors..........................................................................   6
         2.2.     Holder Nominees..............................................................................   6
         2.3.     Termination..................................................................................   7
         2.4.     Reimbursement of Directors...................................................................   9
         2.5.     Committee Membership.........................................................................   9
         2.6      Extension of Certain Agreements..............................................................   9
         2.7      Creation of Non-Voting Common Stock..........................................................   9

3.       Information AND INSPECTION Rights.....................................................................   9
         3.1.     Information Rights of Holders................................................................   9
         3.2.     Confidentiality.............................................................................   10

4.       TAXABLE REIT SUBSIDIARY ELECTION.....................................................................   11

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

6.       Tag-Along Rights....................................................................................... 16
         6.1.     Rights and Notice............................................................................. 16
         6.2.     Abandonment of Sale........................................................................... 17
         6.3.     Timing of Sale................................................................................ 17
         6.4.     Termination................................................................................... 17

7.       transfer restrictions.................................................................................. 17
         7.1.     Right of First Offer; Right to Transfer....................................................... 17
         7.2.     No Obligation to Purchase..................................................................... 18
         7.3.     Termination................................................................................... 18

8.       MISCELLANEOUS.......................................................................................... 18
         8.1.     No Contravening Agreement..................................................................... 18
         8.2.     Assignment.................................................................................... 19
         8.3.     Entire Agreement; Amendment................................................................... 19
         8.4.     Waiver........................................................................................ 19
         8.5.     Limitation on Benefit......................................................................... 19
         8.6.     Binding Effect................................................................................ 19
         8.7.     Governing Law................................................................................. 20
         8.8.     Notices....................................................................................... 20
         8.9.     Headings...................................................................................... 21
         8.10.    Execution in Counterparts..................................................................... 21
         8.11.    Interpretation; Absence of Presumption........................................................ 21
         8.12.    Severability.................................................................................. 22
         8.13.    Specific Performance.......................................................................... 22
         8.14.    Consent to Jurisdiction....................................................................... 22
         8.15.    Litigation Costs.............................................................................. 22
</TABLE>

<PAGE>

                            STOCKHOLDERS AGREEMENT

         THIS STOCKHOLDERS AGREEMENT (this "Agreement"), dated as of May 31,
2000, is made by and among FrontLine Capital Group, a Delaware corporation
("FCG"), HQ Global Holdings, Inc., a Delaware corporation (the "Company"), and
the undersigned holders (the "Holders") of Series A Convertible Cumulative
Preferred Stock (the "Series A Preferred") of the Company.

         WHEREAS, FCG has acquired, among other securities, Series A Preferred
from the Company pursuant to an Exchange Agreement, dated as of May 31, 2000,
and has sold the Series A Preferred, among other securities, to the Holders
pursuant to separate Purchase Agreements, dated as of May 31, 2000; (the
"Transaction"); and

         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 each Holder in the Company and the
corporate governance of the Company.

         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:

         "ABP" shall mean Stichting Pensioenfonds ABP.

         "Affiliate" shall have the meaning set forth in the Certificate of
Designations.

         "As-Converted Basis" shall mean the number determined by dividing the
Liquidation Preference per share of Series A Preferred as of the relevant date
by the Per Share Price; provided, however, that

         (A) if the Company shall subsequent to the issuance of the Series A
Preferred sell shares of Common Stock pursuant to an offering which is not a
Qualified Initial Public Offering, then

          (i)  if the price per share of Common Stock in such sale is less
               than the Per Share Price, or

          (ii) if (A) the price per share in such sale is greater than the Per
               Share Price, (B) the gross proceeds to the Company from such
               sale are not less than $100 million, and (C) at least 50% of
               the shares of Common Stock in such sale is purchased by
               investors that are not Affiliates of the Company or FCG
               (provided that for purposes of this clause (C), an investor
               purchasing shares of Common Stock in such sale who is not
               otherwise an Affiliate of the Company or FCG shall not be
               deemed to be an Affiliate of the Company or FCG solely by
               reason of having the right to nominate a member of the
               Company's Board of Directors as part of the sale
               consideration),

               the As-Converted Basis shall be determined by dividing the
               Liquidation Preference per share of the Series A Preferred by
               the price per share of Common Stock so sold.

         (B) subsequent to a merger of the Company which is not a Qualified
Merger but prior to any conversion pursuant to Section 7(b) of the Certificate
of Designations, the As-Converted Basis shall be determined by dividing the
Liquidation Preference per share by the dollar value of the consideration paid
in respect of each share of Common Stock as determined as of the date of the
execution of the agreement relating to such merger, provided that, if the
aggregate value of the consideration to be received upon consummation of the
merger is more than 12.5% but not more than 17.5% below the value of the
aggregate consideration to be received as calculated on the date of the
execution of the merger agreement, the As-Converted Basis shall be determined
by dividing the Liquidation Preference per share by the dollar value of the
aggregate consideration to be received upon consummation of the merger;

         (C) in case the Company shall issue additional shares of Common Stock
or in case the Company shall pay or make any dividend or other distribution on
any class of capital stock of the Company payable in shares of Common Stock,
the As-Converted Basis in effect at such time as the As-Converted Basis is
determined shall be increased by dividing the As-Converted Basis by a
fraction, the numerator of which shall be the number of shares of Common Stock
outstanding at the close of business on the last date before issuance,
dividend or distribution and the denominator of which shall be the sum of such
number of outstanding shares of Common Stock and the total number of shares
constituting all such issuances, dividends and distributions;

         (D) in case outstanding shares of Common Stock shall be subdivided
into a greater number of shares of Common Stock, the As-Converted Basis shall
be proportionately increased, and, conversely, in case outstanding shares of
Common Stock shall each be combined into a smaller number of shares of Common
Stock and such combination becomes effective prior to the date of the
determination of the As-Converted Basis, the As-Converted Basis shall be
proportionately reduced;

         (E) if the Company shall sell shares of its Common Stock at a price
per share less than the then current market price per share of Common Stock
(other than shares of Common Stock issued (i) pursuant to the stock option
plan adopted by the Company in accordance with its certificate of
incorporation, as amended, (ii) upon exercise of any warrants to purchase
Common Stock of the Company, including any warrants issued to holders of the
Company's high yield, mezzanine or bridge debt in accordance with Section 5.1
hereof or (iii) upon conversion of the Series A Preferred), the number by
which the Liquidation Preference is divided to determine the As-Converted
Basis shall be adjusted to equal the price determined by multiplying such
number by a fraction, the numerator of which shall be the sum of (x) the
number of shares of Common Stock outstanding immediately prior to such sale
and (y) the number of shares of Common Stock which the aggregate consideration
received by the Company from such sale would purchase at such current market
price and the denominator of which shall be the sum of (1) the number of
shares of Common Stock outstanding immediately prior to such sale and (2) the
number of shares of Common Stock so sold;

         (F) if the Company shall distribute Options or Convertible Securities
to the holders of all or at least 75% of the outstanding shares of its Common
Stock entitling them to subscribe for, purchase, convert into or exchange for
shares of Common Stock at a price per share less than the current market price
per share of Common Stock as of the record date for such distribution, the
number by which the Liquidation Preference is divided to determine the
As-Converted Basis shall be adjusted by multiplying such number by a fraction,
the numerator of which shall be the sum of (x) the number of shares of Common
Stock outstanding on such record date and (y) the number of shares of Common
Stock which the aggregate consideration receivable by the Company from the
exercise of such Options or from the conversion, exercise or exchange of such
Convertible Securities would purchase at such current market price and the
denominator of which shall be the sum of (1) the number of shares of Common
Stock outstanding on such date and (2) the number of shares of Common Stock so
offered for subscription, purchase, conversion, exercise or exchange. Options
or Convertible Securities distributed by the Company to all holders of its
Common Stock entitling the holders thereof to subscribe for, purchase, convert
into or exchange for shares of Common Stock, which Options or Convertible
Securities (i) are deemed to be transferred with such shares of Common Stock,
(ii) are not exercisable and (iii) are also issued in respect of future
issuances of Common Stock, in each case in clauses (i) through (iii) until the
occurrence of a Trigger Event, shall for purposes of this clause not be deemed
distributed until the occurrence of the earliest Trigger Event. An adjustment
made pursuant to this clause shall be effective immediately after such record
date;

         (G) if any Organic Change shall be effected, and in connection with
such Organic Change the Common Stock shall be converted into a New Security,
then the definition of the As-Converted Basis shall thereafter be determined
in respect of said New Securities (after giving effect to such conversion of
Common Stock into such New Security, assuming the conversion of the Series A
Preferred into Common Stock immediately prior to such Organic Change);

         (H) in the event that at any time, as a result of an adjustment made
pursuant to Section 7(j) of the Certificate of Designations, the holder of any
shares of Series A Preferred becomes entitled to receive, or with the passage
of time or the occurrence of another event would become entitled to receive, a
New Security, the number and kind of such other shares so receivable shall
thereafter, for purposes of determining the As-Converted Basis, be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions set forth in clauses (C) through (G) above; and

         (I) if any event occurs as to which the foregoing provisions set
forth in clauses (C) through (H) above are not strictly applicable or, if
strictly applicable, would not, in the good faith judgment of the Board of
Directors of the Corporation, fairly protect the rights of the holders of the
Series A Preferred in accordance with the essential intent and principles of
such provisions, then such Board shall make such adjustments in the
application of such provisions, in accordance with such essential intent and
principles, as shall be reasonably necessary, in the good faith judgment of
such Board, to protect such rights as aforesaid, but in no event shall any
such adjustment have the effect of decreasing the As-Converted Basis, or
otherwise adversely affecting the holders of the Series A Preferred.

         "Board" shall mean the board of directors of the Company.

         "Carr Stockholders Agreement" shall mean the Stockholders Agreement,
dated as of January 20, 2000, as amended as of April 29, 2000, by and among
FCG, the Company, CarrAmerica Realty Corporation and the other holders of
Common Stock named therein.

         "Certificate of Designations" shall mean the Certificate of
Designations to the Company's Certificate of Incorporation establishing and
fixing the designation, rights and preferences of the Series A Preferred.

         "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.

         "Company Competitor" shall mean any Person primarily engaged in the
business of providing Flexible Workplace Centers to the public anywhere in the
world, or who owns or operates, directly or indirectly, fifty or more Flexible
Workplace Centers other than EOP and its direct or indirect subsidiaries, but
not excluding Regus.

         "Conversion Date" shall have the meaning set forth in the Certificate
of Designations.

         "Convertible Securities" shall have the meaning set forth in the
Certificate of Designations.

         "Director" shall mean a member of the Board.

         "First Union" shall mean First Union Real Estate Equity and Mortgage
Investments.

         "Flexible Workplace Center" shall mean a fully furnished, staffed and
equipped flexible workplace center consisting primarily of executive office
suites and shared office workplaces, and offering Related Business Services.

         "Fortress" shall mean Fortress Registered Investment Trust.

         "Fully-Diluted Basis" shall mean the sum of the number of shares of
common stock equal to the As-Converted Basis for all of the shares of Series A
Preferred held by the Person with respect to which ownership on a
Fully-Diluted Basis is being determined and the number of shares of common
stock that would be issued upon the exercise of warrants held by such person,
provided that, for purposes of applying this definition to the surviving
entity in a business combination under Section 4.1(b), the As-Converted Basis
shall be determined by dividing the liquidation preference per share of
preferred stock in such entity by the dollar value of the consideration paid
in respect of each share of Common Stock as determined as of the date of the
execution of the agreement relating to such business combination.

         "Holder Joint Venture Arrangement" shall mean any joint venture,
partnership, investment arrangement or similar agreement whereby said Holder,
or its applicable Affiliate, develops, owns, leases, operates, franchises or
manages Flexible Workplace Centers in the United States with third parties;
provided that (i) nothing herein shall prohibit EOP or any Affiliate of EOP
from continuing to provide funds for and participate in the development,
ownership, leasing, operation, franchising, management or expansion of any
existing or currently budgeted Flexible Workplace Center currently
contemplated under EOP's commitments with Regus that exist as of the date
hereof and (ii) a lease shall not be deemed to give to a joint venture
agreement even if said lease provides for the payment of percentage rent.

         "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 Holder Center" shall mean any Flexible Workplace Center
that is 100% owned, directly or indirectly, by a Holder and that is not
branded and managed by the Company or its Affiliates; provided, however, that
if EOP or any Affiliate thereof, as the landlord, recaptures space which is
being utilized as a Flexible Workplace Center, said Flexible Workplace Center
shall not constitute an Independent Holder Center so long as EOP proceeds with
due diligence and in good faith to find a new tenant for said space.

         "Liquidation Preference" shall have the meaning set forth in the
Certificate of Designations.

         "Mandatory Redemption Date" shall have the meaning set forth in the
Certificate of Designations. "New Security" shall have the meaning set forth
in the Certificate of Designations.

         "Nonvoting Common Stock" shall mean the Nonvoting Common Stock, par
value $.01 per share, of the Company.

         "OPCO" shall mean HQ Global Workplaces, Inc.

         "Options" shall have the meaning set forth in the Certificate of
Designations.

         "Option Limiting Percentage" shall have the meaning set forth in the
Certificate of Designations.

         "Organic Change" shall have the meaning set forth in the Certificate
of Designations.

         "Per Share Price" shall have the meaning set forth in the Certificate
of Designations.

         "Person" shall have the meaning set forth in the Certificate of
Designations.

         "Qualified Initial Public Offering" shall have the meaning set forth
in the Certificate of Designations.

         "Qualified Merger" shall have the meaning set forth in the
Certificate of Designations.

         "Reckson" shall mean Reckson Operating Partnership, L.P.

         "Regus" shall mean Regus Equity Business Centers, L.L.C., a Delaware
limited liability company.

         "Related Business Services" means services of the type that the
Company customarily provides to users of its Flexible Workplace Centers,
including administrative support, word processing, secretarial support,
teleconferencing capabilities and high speed broadband connectivity.

         "SEC" shall mean the Securities and Exchange Commission.

         "transfer" shall mean any direct or indirect 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 direct or indirect transfer of
beneficial interest of shares of Series A Preferred.

         "Trigger Event" shall have the meaning set forth in the Certificate
of Designations.

         "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

         Until a Qualified Initial Public Offering or a Qualified Merger, the
Board shall consist of not less than eleven (11) and not more than thirteen
(13) Directors and, in any event, the Board shall consist of not less than
eleven (11) members so long as EOP has a representative on the Board pursuant
to the terms of this Agreement.

     2.2. Holder Nominees

         (a) Nomination of Directors. With respect to the initial Board of
Directors of the Company at the time of the issuance of the Series A Preferred
and 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 of EOP, Fortress and
ABP (each, a "Nominating Holder") shall have the right (but not the
obligation) to nominate for election to the Board one Director (such
Directors, "Holder Nominees"). In the event that any Nominating Holder
transfers more than 90% of the shares of Series A Preferred held by such
Nominating Holder on the date hereof to its Affiliate or, with the approval of
the Company not to be unreasonably withheld, any Nominating Holder other than
ABP transfers more than 90% of the shares of Series A Preferred held by such
Nominating Holder on the date hereof to any Person other than its Affiliate,
then such Affiliate or Person, as the case may be, shall have the right of
such Nominating Holder referred to in the immediately preceding sentence.

         (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 a director of, or has a
financial interest in excess of $1,000,000 in, any Company Competitor. In the
event that, prior to election to the Board, a Nominating Holder names a person
as a Holder Nominee who fails to meet the qualifications set forth in this
Section 2.2(b) and either (i) such Nominating Holder becomes aware of such
failure or (ii) the Company rejects such person on account of such failure,
such Nominating Holder shall have the right to name another person as a Holder
Nominee who does meet such qualifications.

         (c) Support of Holder Nominees by Holders, FCG and the Company. The
Holders and FCG (in each case, to the extent set forth in the last sentence of
this Section 2.2(c)) 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, FCG and the Holders 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) FCG and the
Holders and any of their respective Affiliates shall vote their shares of
Voting Common Stock or other voting capital stock of the Company, if any, in
favor of each Holder Nominee at any stockholders meeting (or written consent
in lieu thereof).

         (d) Support of FCG Nominees by Holders. If the nominees proposed by
FCG meet the qualifications set forth in Section 2.2(b) above (each, an "FCG
Nominee"), as long as the Nominating Holders have the right to nominate a
Holder Nominee pursuant to this Section 2, Holders shall support (to the
extent set forth in the last sentence of this Section 2.2(d)), and the Board
or any nominating committee (or any other committee exercising a similar
function) thereof shall recommend, the nomination of each FCG Nominee to the
Board. FCG shall have the right to nominate all of the Directors other than
(i) the Holder Nominees (except as otherwise contemplated in Section 2.2(a))
and (ii) the Directors entitled to nomination pursuant to the Carr
Stockholders Agreement. The Board shall recommend to the stockholders of the
Company the election of each FCG Nominee and the Company shall exercise all
authority under applicable law to cause each FCG Nominee to be elected to and
to remain a member of the Board for the term for which the FCG Nominee is
nominated. With respect to each meeting of stockholders of the Company at
which Directors are to be elected, as long as the Nominating Holders have the
right to nominate a Holder Nominee pursuant to this Section 2, the Holders
shall vote their shares of Voting Common Stock or other voting capital stock
of the Company, if any, in favor of each FCG Nominee at any stockholders
meeting (or written consent in lieu thereof).

         (e) Vacancies. Subject to Section 2.3 (a) and (d), in the event that
any Holder Nominee shall cease to serve as a Director, 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. Termination

         (a) Occurrence of Certain Events. Except as provided in Section
2.3(b), a Nominating Holder shall cause its nominee elected to the Board, if
applicable, to resign immediately (i) upon a Qualified Initial Public
Offering, (ii) upon a Qualified Merger, (iii) upon conversion by such
Nominating Holder of 50% or more of its Series A Preferred into Common Stock,
(iv) in the event that such Nominating Holder transfers in one or more
transactions an aggregate of 50% or more of the Series A Preferred that it
holds on the date hereof, excluding transfers to such Nominating Holder's
Affiliates, (v) upon such Nominating Holder, or an Affiliate thereof owning
more than ten (or, in the case of EOP, five) Independent Holder Centers or
being a party to any Holder Joint Venture Arrangement which owns more than ten
(or, in the case of EOP, five) Independent Holder Centers or in which a
material part of the applicable business is owning, leasing, operating,
franchising or managing Independent Holder Centers. In any such case, such
Nominating Holder shall not be entitled to fill such vacancy in the Board
pursuant to Section 2.2(e). In the event that such nominee fails to resign as
required, then the holders of at least 10% of the Voting Common Stock then
entitled to vote may remove such nominee from the Board at the next annual
meeting of stockholders or at a special meeting of stockholders of the
Company, as the case may be. In the event that (i) ABP transfers in one or
more transactions an aggregate of 50% or more of the Series A Preferred that
it holds on the date hereof, excluding transfers to its Affiliates, or (ii)
50% or more of ABP's Series A Preferred is converted into Common Stock, then
FCG and the Company will cause one Director then serving on the Board (other
than a Holder Nominee) to resign from the Board within three (3) business days
after it receives notice of such transfer or conversion and thereafter the
Board shall consist of eleven (11) members.

         (b) Additional Term. Unless EOP has transferred, in one or more
transactions, an aggregate of 50% or more of the Series A Preferred that it
holds on the date hereof, excluding transfers to EOP's Affiliates, upon the
occurrence of a Qualified Initial Public Offering, Qualified Merger or the
conversion by EOP of 50% or more of its Series A Preferred into Common Stock,
EOP shall be entitled to nominate a Holder Nominee to serve one additional
full three-year term on the Board commencing on the date of such occurrence.
In addition, upon the occurrence of a Qualified Initial Public Offering or a
Qualified Merger, Fortress or, if Fortress has transferred, in one or more
transactions, an aggregate of 50% or more of the Series A Preferred that it
holds on the date hereof, excluding transfers to Fortress' Affiliates, a
plurality of the holders of outstanding shares of Series A Preferred,
excluding FCG, EOP and Fortress, shall be entitled to nominate one person to
serve one additional full three-year term on the Board commencing on the date
of such occurrence so long as the Common Stock issued upon conversion of the
Series A Preferred as a result of such Qualified Initial Public Offering or
Qualified Merger, as the case may be, exceeds 20% of the total number of
shares of Common Stock outstanding immediately after such occurrence. The
provisions set forth in Section 2.2(b), (c) and (e) shall remain in effect for
any additional term referred to in this Section 2.3(b). Thereafter, no party
hereto shall have any right to nominate any person to the Board under this
Agreement.

         (c) Default. In the event that (i) the Company fails to redeem Series
A Preferred at the option of the holders thereof as required by Section 8 of
the Certificate of Designations or (ii) the Company fails to redeem all of the
outstanding Series A Preferred on the Mandatory Redemption Date, in addition
to any other rights referred to in Sections 2.2(a) or 2.3(b), a plurality of
the holders of outstanding shares of Series A Preferred, excluding FCG and
those Holders owning more than ten (or, in the case of EOP, five) Independent
Holder Centers or being a party to any Holder Joint Venture Arrangement which
owns more than ten (or, in the case of EOP, five) Independent Holder Centers
or in which a material part of the applicable business is owning, leasing,
operating, franchising or managing Independent Holder Centers, shall be
entitled, from and after the date of such default, to nominate two persons to
serve on the Board until the Company's failure to redeem the Series A
Preferred referred to above is remedied. FCG and the Company agree that in the
event Holders of the Series A Preferred become entitled to nominate persons to
serve on the Board pursuant to this clause (c) FCG and the Company will cause
two Directors then serving on the Board (other than Holder Nominees) to resign
from the Board within three (3) business days of notice of such default and to
cause the remaining Directors to immediately appoint the two persons
designated by the Holders of a majority of the outstanding shares of Series A
Preferred to fill the vacancies created by such resignations. The provisions
set forth in Section 2.2(b), (c) and (e) with respect to any such person shall
remain in effect during the period of such failure of the Company.

         (d) Notwithstanding anything to the contrary contained herein, if any
Holder or an Affiliate thereof owns more than ten (or, in the case of EOP,
five) Independent Holder Centers or is a party to any Holder Joint Venture
Arrangement which owns more than ten (or, in the case of EOP, five)
Independent Holder Centers or in which a material part of the applicable
business is owning, leasing, operating, franchising or managing Independent
Holder Centers, then such Holder shall cause its nominee elected to the Board,
if applicable, to resign immediately upon such occurrence and such Holder
shall not be entitled to fill such vacancy in the Board pursuant to Section
2.2(e). In addition, any Holder whose nominee fails to meet the qualifications
set forth in Section 2.2(b)(ii), (iv) or (v) after election to the Board, if
applicable, shall cause such nominee to resign immediately upon any occurrence
causing such failure, and such Holder shall be entitled to fill such vacancy
in the Board pursuant to Section 2.2(e). In the event that the circumstances
in either of the two preceding sentences apply and the nominee elected to the
Board fails to resign as required, then the holders of at least 10% of the
Voting Common Stock then entitled to vote may remove such nominee from the
Board at the next annual meeting of stockholders or at a special meeting of
stockholders of the Company, as the case may be.

     2.4. Reimbursement of Directors

         The Company shall reimburse the Directors nominated pursuant to
Sections 2.2(a) or 2.3 hereof for reasonable out-of-pocket expenses incurred
in attending Board meetings.

     2.5. Committee Membership

         Holder Nominees serving as Directors in accordance with this
Agreement shall have the right to serve as members on all committees of the
Board.

     2.6. Extension of Certain Agreements

         Nothwithstanding any provision herein to the contrary, the unanimous
consent or approval by the Board shall be required to extend or renew the term
of any of the (1) Lease Procurement Services Agreement by and between OPCO and
Carr Real Estate Services, Inc., (2) Lease Procurement Services Agreement by
and between OPCO and Reckson, (3) Project Management Services Agreement
between OPCO and CarrAmerica Development Inc., and (4) Project Management
Services Agreement between OPCO and Reckson, beyond the respective current
stated terms thereof as set forth in such agreements.

     2.7. Creation of Non-Voting Common Stock

         At the request of the Company, each Holder agrees to take all
necessary actions to establish a class of non-voting common stock of the
Company having the same rights, powers and privileges as the Voting Common
Stock, except that such non-voting common stock will not have any vote on any
matters upon which stockholders of the Company may vote except as required by
law.

3.   Information AND INSPECTION Rights

     3.1. Information Rights of Holders

         (a) Quarterly Financial Information. Until the date of an initial
public offering of the securities of the Company (the "Information Rights
Termination Date"), 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"),
consistently applied, 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. Until the Information Rights
Termination Date, 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, consistently
applied, 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.

         (c) Other Information. Until the Information Rights Termination Date,
the Company shall deliver to each Holder as soon as available and in any event
within forty-five (45) days prior to the commencement of each fiscal year of
the Company an annual budget of the Company for such year and such other
information as may reasonably be requested by such Holder.

         (d) Inspection Rights. The Company shall permit any Holder, which
together with its Affiliates, owns the lesser of (i) Series A Preferred having
a Liquidation Preference of $15 million and (ii) Series A Preferred having the
Liquidation Preference of the Series A Preferred held by such Holder on the
date hereof, or their authorized representatives, to visit and inspect the
properties of the Company and all subsidiaries, including its corporate and
financial records, and to discuss its business and finances with officers of
the Company, during normal business hours following reasonable notice and as
often as may be reasonably requested.

         (e) Termination. In the event that a Holder, or an Affiliate thereof
owns more than ten (or, in the case of EOP, five) Independent Holder Centers
or is a party to any Holder Joint Venture Arrangement which owns more than ten
(or, in the case of EOP, five) Independent Holder Centers or in which a
material part of the applicable business is owning, leasing, operating,
franchising or managing Independent Holder Centers, the Board may limit or
terminate the rights of such Holder set forth under this Section 3 if it
determines that such limitation or termination is in the best interests of the
Company in order to avoid the dissemination of information related to the
Company's past, current or projected business or financial condition or
performance that would jeopardize the Company's competitive position. In
addition, in the event that a Holder transfers, in one or more transactions,
an aggregate of 80% or more of the Series A Preferred owned by such Holder on
the date of this Agreement (excluding transfers by a Holder to its
Affiliates), such Holder shall have no further rights under this Section 3
(other than those rights under clauses (a) and (b) of this Section 3.1);
provided, however, that any transferee that holds the lesser of (i) Series A
Preferred having a Liquidation Preference of $15 million and (ii) Series A
Preferred having the Liquidation Preference of the Series A Preferred held by
the transferring Holder on the date hereof shall be entitled to the rights set
forth under this Section 3. In the event such a transferee subsequently
transfers, in one or more transactions, an aggregate of 80% or more of the
Series A Preferred acquired from a Holder (excluding transfers by such a
Person to its Affiliates), such transferee shall have no further rights under
this Section 3 and the subsequent transferee shall have the same rights as the
transferee referred to in the immediately preceding sentence.

     3.2. 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 trustees,
directors, officers, employees, financial advisors, legal advisors,
accountants and consultants of any Holder or its Affiliates who (i) reasonably
need to have access to the confidential information, (ii) are advised of the
confidential nature of such information, and (iii) agree to maintain the
confidentiality of such information, and such Holder agrees to indemnify the
Company with respect to any breach of the agreement to maintain the
confidentiality of such information (subject to the provisos set forth below)
by any of its trustees, directors, officers, employees, financial advisors,
legal advisors, accountants or consultants; 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
FCG, 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 use its
commercially reasonable efforts to give prior notice to the Board of any such
disclosure.

4. TAX MATTERS

     4.1. Taxable REIT Subsidiary Election

         (a)(i) Effective as of January 1, 2001 and for so long thereafter as
EOPT continues to make the election to be taxed as a real estate investment
trust (a "REIT") under Sections 856 through 860 of the Code, the Company and
OPCO shall (x) elect to be treated as a "taxable REIT subsidiary" (a "TRS")
pursuant to Section 856(l) of the Code of EOPT, and (y) not take any action to
cause the Company to fail to qualify as a TRS of EOPT; provided that EOPT
shall, at the request of the Company, consent to and join in the revocation of
such election if an EOP De Minimis Event shall occur any time after the
acquisition of Series A Preferred by EOP from FCG (the "Initial Closing Date")
(which revocation shall be effective for the first taxable year immediately
following the taxable year in which such EOP De Minimis Event occurs). An "EOP
De Minimis Event" shall mean any event or transaction which causes the number
of shares of Common Stock owned directly or indirectly by EOPT, determined on
a Fully-Diluted Basis, to be less than ten percent (10%) of the number of
shares of Common Stock owned directly or indirectly by EOPT as of the Initial
Closing Date, determined on a Fully-Diluted Basis. EOPT shall notify the
Company in writing of the occurrence of an EOP De Minimis Event no more than
10 Business Days following the occurrence of such event.

         (ii) Effective as of January 1, 2001 and for so long thereafter as
First Union Real Estate Equity and Mortgage Investments ("FUR") continues to
make the election to be taxed as a REIT, the Company and OPCO shall (x) elect
to be treated as a TRS of FUR, and (y) not take any action to cause the
Company to fail to qualify as a TRS of FUR; provided that FUR shall, at the
request of the Company, consent to and join in the revocation of such election
if an FUR De Minimis Event shall occur any time after the Initial Closing Date
(which revocation shall be effective for the first taxable year immediately
following the taxable year in which such FUR De Minimis Event occurs). An "FUR
De Minimis Event" shall mean any event or transaction which causes the number
of shares of Common Stock owned directly or directly by FUR, determined on a
Fully-Diluted Basis, to be less than ten percent (10%) of the number of shares
of Common Stock owned directly or indirectly by FUR as of the Initial Closing
Date, determined on a Fully-Diluted Basis. FUR shall notify the Company in
writing of the occurrence of an FUR De Minimis Event no more than 10 Business
Days following the occurrence of such event.

         (b) As a condition to any merger, consolidation, reorganization or
other business combination to which the Company is a party pursuant to which
EOPT acquires any equity interest in any entity other than the Company, such
entity shall agree to (i) file an election to be treated as a TRS of EOPT
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 (ii) not take any action that would cause such
entity to fail to qualify as a TRS of EOPT for so long thereafter as EOPT
continues to make the election to be treated as a REIT; provided that EOPT
shall, at the request of such entity, consent to and join in a revocation of
such election if a Post-Merger De Minimis Event 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). A "Post-Merger De Minimis Event"
shall mean any event or transaction which causes the number of common shares
of the surviving entity of the business combination owned by EOPT, determined
on a Fully-Diluted Basis, to be less than ten percent (10%) of the number of
common shares of the surviving entity that EOPT would have owned as of the
Initial Closing Date, determined on a Fully-Diluted Basis, if EOPT had
converted all of the Common Stock it owned as of the Initial Closing Date,
determined on a Fully-Diluted Basis, into common shares of the surviving
entity pursuant to the terms of the business combination. EOPT shall notify
the surviving entity in writing of the occurrence of a Post-Merger De Minimis
Event no more than 10 Business Days following the occurrence of such event.

         (c) For so long as the Company is obligated to constitute a TRS of
EOPT or FUR, if EOP or FUR, as the case may be, shall so request in writing
within forty-five (45) days prior to the close of any quarter of any of EOPT'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 EOP or FUR, as the case may be, that the
Company constitutes a TRS of EOPT or FUR, as the case may be. All references
to the Company in this paragraph (c) shall include references to any
successor-in-interest to the Company.

     4.2. Tenant Services/10% Voting Securities Test

         Prior to the effective date of the Company's election to be treated
as a TRS of EOPT, the Company shall not, without the prior written consent of
EOPT, provide any tenant services with respect to any property in which EOPT
owns a direct or indirect interest other than through or pursuant to the
operating agreement of HQ Global Workplaces Equity Joint Venture, L.L.C. (the
"Joint Venture"), except that for any property in which a Flexible Workplace
Center was operated by a predecessor-in-interest of the Company prior to the
date of this Agreement, (an "Existing Center Property"), the provision of
services by the Company or any of its Affiliates (other than the Joint
Venture) shall be subject to the same restrictions and requirements as those
provided in Sections 4.1 through 4.4 of that certain Master Agreement to
Lease, dated as of May __, 2000, by and between EOP and the Joint Venture (the
"Master Lease"), including all rights to notification and indemnification
contained therein, provided that (A) for this purpose references in the Master
Lease to the "Company" (i.e., the Joint Venture) shall be deemed to refer to
the Company (i.e., HQ Global Holdings, Inc.) and its Affiliates (other than
the Joint Venture), (B) for purposes of applying Section 4.1 of the Master
Lease to the Company, EOP shall be treated as having provided written consent
to the provision by the Company of any services provided by the Company or its
Affiliates at Existing Center Properties prior to the date of this Agreement,
(C) references in the Master Lease to "Company Financial Reports" shall be
treated as referring to financial reports of the Company with respect to the
Existing Center Properties, and (D) for this purpose, in order to account for
the fact that services are being provided by the Company (as defined in this
Agreement) as opposed to being provided by the "Company" as defined in the
Master Lease, any defined terms used in the Master Lease shall, solely for
purposes of applying this Section 4.2, be reasonably adjusted as necessary to
carry out the intent of this sentence. In addition, prior to the effective
date of the Company's election to be treated as a TRS of EOPT, the Company
shall not, without the prior written consent of EOPT, cause EOPT to own in
excess of ten percent (10%) of the outstanding voting securities of the
Company, as determined under Code Section 856(c)(4)(B). FCG shall use its best
efforts to amend, as promptly as reasonably practicable, the Certificate of
Incorporation of the Company to include the following provision:

          If at any time prior to the date that the Corporation constitutes a
          TRS (as defined below) of Equity Office Properties Trust ("EOPT")
          and First Union, a transaction or event occurs which would cause
          EOPT or First Union to own any Common Pre-TRS Excess Stock (as
          defined below), then the portion of the stock of the Corporation
          owned by EOPT or by First Union, as the case may be, which
          constitutes Common Pre-TRS Excess Stock shall automatically convert
          into shares of Nonvoting Class C Stock, on a one-for-one share
          basis, on the date immediately prior to such transaction or event
          and shall remain Nonvoting Class C Stock until such time as EOPT or
          First Union, as the case may be, delivers notice to the Corporation
          that (a) such stock no longer constitutes Common Pre-TRS Excess
          Stock, or (b) the Corporation constitutes a taxable REIT subsidiary
          (a "TRS") (as such term is defined in Section 856(l) of the Internal
          Revenue Code of 1986, as amended (the "Code")) of EOPT, at which
          point such shares shall automatically convert back into shares of
          Voting Common Stock, on a one-for-one share basis. The term "Common
          Pre-TRS Excess Stock" shall mean any portion of the Common Stock
          owned by EOPT or First Union, as the case may be, which, after any
          shares of Series A Convertible Cumulative Preferred Stock of the
          Corporation ("Series A Preferred") owned by EOPT or First Union, as
          the case may be, become non-voting stock of the Corporation pursuant
          to Section 6(b) of the Certificate of Designations Establishing and
          Fixing the Rights and Preferences of the Series A Preferred (the
          "Certificate of Designations"), exceeds 9.5% of the total
          outstanding voting securities of the Corporation, as determined
          under Code Section 856(c)(4)(B); provided, however, that for periods
          after December 31, 2000, the term "Common Pre-TRS Excess Stock"
          shall mean any portion of the Common Stock owned by EOPT or First
          Union, as the case may be, which, after any shares of Series A
          Preferred owned by EOPT become non-voting stock of the Corporation
          pursuant to Section 6(b) of the Certificate of Designations, exceeds
          9.5% of the total voting power of the outstanding securities of the
          Corporation, as determined under Code Section 856(c)(4)(B)(iii)(II).
          For purposes of determining whether any of the Common Stock
          constitutes Common Pre-TRS Excess Stock, any warrants exercisable
          for Common Stock owned by EOPT or First Union, as the case may be,
          shall be treated as having been exercised. For purposes of this
          paragraph, EOPT and First Union shall be considered to own directly
          any stock, warrants or other securities the ownership of which would
          be attributable to EOPT or First Union for purposes of applying the
          provisions of Section 856(c)(4)(B) of the Code. All references to
          the Corporation in this paragraph shall include references to any
          successor-in-interest to the Corporation. If requested in writing by
          EOPT or First Union, as the case may be, the Corporation shall, in a
          timely manner, provide EOPT or First Union, as the case may be, with
          any information reasonably necessary for EOPT or First Union, as the
          case may be, to determine whether any of the Common Stock EOPT owns
          constitutes Common Pre-TRS Excess Stock. The Corporation further
          agrees to notify EOPT or First Union, as the case may be, as soon as
          practicable, in writing, of any event or transaction to which it has
          knowledge that it believes results in EOPT's or First Union's
          ownership of Common Pre-TRS Excess Stock, as the case may be. The
          Corporation further agrees that if any event or transaction results
          in EOPT's or First Union's ownership of any Common Pre-TRS Excess
          Stock, the Corporation shall notify EOPT or First Union, as the case
          may be, as soon as practicable, in writing, in the event that it
          believes such stock no longer constitutes Common Pre-TRS Excess
          Stock.

5.   Participation Rights

     5.1. Right to Participate

         From and after the date of this Agreement until and not including a
Qualified Initial Public Offering or a Qualified Merger, if the Company
proposes to issue or sell any shares of Common Stock or other equity
securities of the Company or securities convertible into or exercisable for
shares of Common Stock or other equity securities of the Company ("Company
Interests"), its business other than Company Interests issued pursuant to one
or more stock option plans of the Company up to the Option Limiting
Percentage, Company Interests issued as consideration for the acquisition of
another company, warrants issued to holders of the Company's high yield,
mezzanine or bridge debt, not to exceed 7.5% of the Company's fully-diluted
capital, or to holders of Series A Preferred and Common Stock issued upon the
exercise of such warrants, or Company Interests offered to the public pursuant
to an underwritten public offering, each Holder and FCG (taking into account
the right, if any, of the stockholders under the Carr Stockholders Agreement
to participate in such transaction) (each a "Participant" and collectively,
the "Participants") shall have the right to purchase or subscribe for all or a
portion of its then applicable pro rata share, on an As-Converted Basis, of
such Company Interests. In addition, any Participant subscribing for its
entire pro rata share of the Company Interests then being issued and sold
shall be entitled to subscribe for its pro rata share on an As-Converted Basis
(calculated by taking into account only those Participants who have subscribed
for their entire pro rata share) of any Company Interests that are subject to
the right to participate provided by this Section 5.1 and that are not
subscribed for by other Participants.

     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 "Initial 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) (an "Initial
Price"), (c) such Participant's "pro rata share" as of the date of the Initial
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 twenty (20) days after its receipt of the Initial Participation
Notice or within five (5) days after receipt of a Final 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").

         In the event that the price (before any commission or discount) at
which the related Company Interests are to be issued (the "Final Price") is
greater than the Initial Price, as soon as practicable after such Final Price
is determined, the Company shall send a written notice (the "Final
Participation Notice" and, together with the Initial Participation Notice, the
"Participation Notice") setting forth such Final Price to each Participant
that delivered to the Company an Exercise Notice notifying the Company of its
intention to exercise its participation rights to purchase or subscribe for
such Company Interests at the Initial Price. In the event that the Final Price
is less than 90% of the Initial Price, as soon as practicable after such Final
Price is determined, the Company shall send a Final Participation Notice
setting forth such Final Price to each Participant. Each such Final
Participation Notice shall set forth the Final Price, shall confirm and
restate the information contained in Initial Participation Notice and shall
advise the Participant that, in order to participate in such offering, an
Exercise Notice must be received by the Company from such Participant no later
than five (5) business days after the Participant's receipt of the Final
Participation Notice. If the Final Price is greater than the Initial Price or
if the Final Price is less than 90% of the Initial Price, any previously
delivered Exercise Notice shall be deemed revoked by each Participant unless
such Participant delivers to the Company a subsequent Exercise Notice within
five (5) business days after its receipt of the Final Participation Notice.

         Each Exercise Notice shall be irrevocable, subject to (a) the
conditions to the closing of the transaction giving rise to the participation
right provided for in Section 5.1 and (b) the immediately preceding paragraph.

     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;
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.

     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 twenty (120) days after the expiration of the time in
which the Exercise Notice is required to 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 twenty (120) 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 Initial 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.

6.   Tag-Along Rights

     6.1. Rights and Notice

         Subject to Sections 6.4, if FCG or any Affiliate of FCG receives a
bona fide offer to purchase from it (or otherwise proposes to sell), 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 FCG (a
"Purchase Offer"), FCG shall not accept such Purchase Offer unless the Holders
are entitled to sell a number of shares of Common Stock and Series A Preferred
(determined on an As-Converted Basis) in an amount equal to the product of (1)
a fraction the numerator of which is total number of shares of Common Stock
owned by such Holders, directly and on an As-Converted Basis, and the
denominator of which equals the sum of the total number of shares of Common
Stock owned by such Holders, directly and on an As-Converted Basis, plus the
total number of shares of Common Stock and Series A Preferred (determined on
an As-Converted Basis) owned by FCG, multiplied by (2) the number of shares of
Common Stock 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 (it being understood that the terms of the
sale of any Series A Preferred will be determined on an As-Converted Basis)
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, FCG 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 the price at which the Series A Preferred would be sold pursuant to such
Purchase Offer (as determined on an As-Converted Basis), 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 and, if applicable, Series A
Preferred (determined on an As-Converted Basis) equal to the product of (a)
the total number of shares of Common Stock and, if applicable, Series A
Preferred (determined on an As-Converted Basis) that may 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 and, if applicable, Series
A Preferred (determined on an As-Converted Basis) owned by such Holder and the
denominator of which shall be the number of shares of Common Stock and, if
applicable, Series A Preferred owned (determined on an As-Converted Basis) 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 FCG (a "Holder Tag-Along Notice")
stating the number of shares of Common Stock and, if applicable, Series A
Preferred that such Holder wishes to sell pursuant to the Purchase Offer.

     6.2. Abandonment of Sale

         FCG 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 FCG 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, FCG shall have one hundred twenty (120) 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
FCG 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 twenty (120) day period, FCG has
not consummated the proposed transaction, FCG shall again be obligated to
comply with the provisions of this Section 6.

     6.4. Termination

         The Tag-Along Rights granted to Holders pursuant to this Section 6
shall terminate upon the closing of a Qualified Initial Public Offering or
Qualified Merger.

7.   transfer restrictions

     7.1. Right of First Offer; Right to Transfer

         (a) Subject to Section 7.3, before any Holder shall transfer any
shares of Series A Preferred to any person other than (i) an Affiliate of such
Holder, (ii) another Holder, an Affiliate of such other Holder or (iii) in the
case of First Union, a liquidating trust, such Holder shall first deliver a
written notice (the "Holder Notice of Offer") to the Company offering to sell
the number of shares proposed to be sold by such Holder to the Company (the
"Right of First Offer"). The Holder Notice of Offer shall specify (i) the
number of shares of Series A Preferred proposed to be sold by such Holder to
the Company (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 the Company all, but not less than
all, of the Holder Offered Securities at the Holder Offer Price, in accordance
with this Section 7.

         (b) Within twenty (20) days following its receipt of the Holder
Notice of Offer, the Company 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 "Company Notification"). A Company Notification that
indicates that the Company intends to purchase the Holder Offered Securities
shall be deemed to be an irrevocable commitment of the Company to purchase the
Holder Offered Securities. Should the Company elect to exercise the Right of
First Offer, the Company Notification shall include a subscription for the
offered shares and the Company 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 twenty (20) days after the date of the Company Notification.
If the Company does not subscribe for and purchase all of the Holder Offered
Securities pursuant to this Section 7.1(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) as specified in the Holder Notice of Offer, provided, that such
sale is consummated within one hundred twenty (120) days of the date of the
Holder 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 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 the Company 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 an independent investment banking firm or other
qualified appraiser mutually agreeable to and promptly selected by the Holder
and the Company, such determination shall be final and binding on the parties.
After the expiration of such one hundred twenty (120) day period, such Holder
shall again comply with the provisions of this Section 7.1 before selling any
shares of Series A Preferred.

         The Company shall, after receipt of any Holder Notice of Offer,
provide notice to each Holder that is a real estate investment trust of its
receipt of such Holder Notice of Offer, which notice shall also include the
Holder Offer Price.

         (c) Subject to this Section 7, prior to a Qualified Initial Public
Offering or a Qualified Merger, any Holder shall be entitled to transfer any
or all of its shares of the Series A Preferred to any number of other Persons,
provided that (i) in connection with any transfer other than to an Affiliate
or another Holder or, in the case of First Union, a liquidating trust, any
such transfer is of Series A Preferred having a Liquidation Preference of at
least $15 million or, if less, the Liquidation Preference of Series A
Preferred held by such Holder on the date hereof, as the case may be, unless
such transfer involves a pledge of Series A Preferred to such Holder's lender,
in which case no minimum transfer amount shall apply if such lender agrees to
be bound by the terms of this Agreement upon any transfer of such Series A
Preferred pursuant to such pledge, and (ii) no transfer may be made, directly
or indirectly, to a Company Competitor.

     7.2. No Obligation to Purchase

         The Company shall not be obligated to purchase any Holder Offered
Securities pursuant to any Holder Notice of Offer in accordance with the
provisions of Section 7.1.

     7.3. Termination

         The Rights of First Offer granted pursuant to this Section 7 shall
terminate upon the earlier of (i) the closing of a Qualified Initial Public
Offering or a Qualified Merger and (ii) June 1, 2005.

8.   MISCELLANEOUS

     8.1. No Contravening Agreement

         Each of FCG, 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.

     8.2. 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 Series A
Preferred by such Holder made in accordance with Section 7 hereof; provided,
that such Person agrees to be bound by this Agreement; and provided further,
that any party hereto 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.

     8.3. Entire Agreement; Amendment

         This Agreement 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 this Agreement shall be valid or binding unless set forth in
writing and duly executed by the Company, FCG and the Holders of at least
62.5% of the outstanding shares of Series A Preferred. In addition, any
amendment or modification of Section 4.1 (other than Section 4.1 (a)(ii)) or
4.2 (insofar as it relates to EOP) shall require the consent of EOP and of
Section 4.1(a)(ii) or 4.2 (insofar as it relates to First Union) shall require
the consent of First Union.

     8.4. 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.

     8.5. Limitation on Benefit

         It is the explicit intention of the parties hereto that no person or
entity other than the parties hereto and their respective successors, heirs,
executors, administrators, legal representatives and permitted assigns are 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.

     8.6. 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.

     8.7. 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 conflicts of law rules
thereof).

     8.8. 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 350
               Dallas, Texas  75248
               Attn.: General Counsel
               Telephone No.: 972-361-8100
               Facsimile No.: 972-361-8216

               with a copy (which shall not constitute notice) to:

               Brown & Wood LLP
               One World Trade Center
               New York, New York  10048-0057
               Attn.:  Edward F. Petrosky, Jr.
                        J. Gerard Cummins
               Facsimile No.: 212/839-5599

         (ii)  If to FCG:

               FrontLine Capital Group
               1350 Avenue of the Americas
               New York, New York  10019
               Attn.:  Jason M. 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.:  Edward F. Petrosky, Jr.
                        J. Gerard Cummins
               Facsimile No.: 212/839-5599

         Notice to each Holder 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.

          8.9. 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.

          8.10. 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 8.10;
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.

          8.11. 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.

          8.12. 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.

          8.13. Specific Performance

         Each of the Company, FCG 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.

          8.14. Consent to Jurisdiction

         Each party to this Agreement: (i) agrees to commence any action, suit
or proceeding relating hereto either in a federal court located in the State
of Delaware or the State of New York or in a Delaware or New York state court;
(ii) irrevocably submits and consents to personal jurisdiction in any such
suit; (iii) 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 8.8 above or, in the case of the Holders, the respective address
set forth on the signature page hereof, 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 8.14; (iv)
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 (x) any Delaware or New York state court
or (y) any federal court located in the State of Delaware or the State of New
York; and (v) 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.

          8.15. 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]

<PAGE>

         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.

                       HQ GLOBAL HOLDINGS, INC.

                       By:    /s/ Jill B. Louis
                           -------------------------------------
                       Name:  Jill B. Louis
                       Title: Vice President, General Counsel
                              and Secretary

                       FRONTLINE CAPITAL GROUP

                       By:    /s/ Jason M. Barnett
                           -------------------------------------
                       Name:  Jason M. Barnett
                       Title: Executive Vice President

                       HOLDERS

                       EOP OPERATING LIMITED PARTNERSHIP

                       By:  Equity Office Properties Trust,
                            its managing general partner

                       By:    /s/ Stanley M. Stevens
                           -------------------------------------
                       Name:  Stanley M. Stevens
                       Title: Executive Vice President and
                              Chief Legal Counsel

                       Address for Notice
                         (including facsimile number):

                          Two N. Riverside Plaza, Suite 2200,
                          Chicago, IL 60606
                          (312) 559-5021

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       FORTRESS REGISTERED INVESTMENT TRUST

                       By:    /s/ Jonathan Ashley
                           -------------------------------------
                       Name:  Jonathan Ashley
                       Title: Vice President

                       Address for Notice
                         (including facsimile number):

                          1301 Avenue of the Americas, 42nd Floor
                          New York, NY 10024
                          (212) 798-6133

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       STICHTING PENSIOENFONDS ABP

                       By:
                           -------------------------------------
                       Name:
                       Title:

                       Address for Notice
                         (including facsimile number):

                          --------------------------------------
                          --------------------------------------

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS

                       By:    /s/ Brenda J. Mixson
                           -------------------------------------
                       Name:  Brenda J. Mixson
                       Title: Chief Financial Officer

                       Address for Notice
                         (including facsimile number):

                          551 Fifth Avenue, Suite 1416
                          New York, NY 10176
                          (212) 905-1102

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       CIBC WMC INC.

                       By:    /s/ Richard White
                           -------------------------------------
                       Name:  Richard White
                       Title: Managing Director

                       Address for Notice
                         (including facsimile number):

                          425 Lexington Avenue, 9th Floor
                          New York, NY 10017
                          (212) 885-4829

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                      CIBC EMPLOYEE PRIVATE EQUITY FUND PARTNERS

                       By:    /s/ Richard White
                           -------------------------------------
                       Name:  Richard White
                       Title: Managing Director

                       Address for Notice
                         (including facsimile number):

                          425 Lexington Avenue, 9th Floor
                          New York, NY 10017
                          (212) 885-4829

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                      AEW TARGETED SECURITIES FUND, L.P.

                       By:    /s/ Michael J. Buckley
                           -------------------------------------
                       Name:  Michael J. Buckley
                       Title: Vice President

                       Address for Notice
                         (including facsimile number):

                          --------------------------------------
                          --------------------------------------

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       BLACKACRE CAPITAL PARTNERS, L.P.

                       By:    /s/ Jeffrey B. Citrin
                           -------------------------------------
                       Name:      Jeffrey B. Citrin
                       Title:     President

                       Address for Notice
                         (including facsimile number):

                          --------------------------------------
                          --------------------------------------

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       AEW TARGETED SECURITIES FUND, L.P. II

                       By:    /s/ Michael J. Buckley
                           -------------------------------------
                       Name:  Michael J. Buckley
                       Title: Vice President

                       Address for Notice
                         (including facsimile number):

                          --------------------------------------
                          --------------------------------------

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

                       PARIBAS NORTH AMERICA, INC.

                       By:    /s/ Donna Kiernan
                          ---------------------------------------
                          Name:   Donna Kiernan
                          Title:  Chief Financial Officer

                       Address for Notice
                         (including facsimile number):

                          787 Seventh Avenue
                          New York, New York  10019
                          (212) 841-2360

                       Number of Shares of Series A Preferred
                         Owned of Record:

                          --------------------------------------

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