Document:

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                                                                     EXHIBIT 4.1

                            HQ GLOBAL HOLDINGS, INC.

                                     AMENDED
                           CERTIFICATE OF DESIGNATIONS

                     ESTABLISHING AND FIXING THE RIGHTS AND
              PREFERENCES OF A SERIES OF SHARES OF PREFERRED STOCK

                            Under Section 151 of the
                        Delaware General Corporation Law

         HQ Global Holdings, Inc., a Delaware corporation (the "Corporation"),
certifies that:

FIRST: Pursuant to the authority expressly vested in the Board of Directors of
the Corporation by Section 4.1(b) of its Certificate of Incorporation, as
heretofore amended (which, as hereafter restated or amended from time to time,
are together with this Amended Certificate of Designations herein called the
"Certificate of Incorporation"), the Board of Directors has, by resolution, duly
designated and classified 5,395,857.654 shares of the preferred stock of the
Corporation into a series designated Series A Convertible Cumulative Preferred
Stock and has provided for the issuance of such series.

SECOND: This Amended Certificate of Designations amends and restates the
Certificate of Designations in respect of the Series A Convertible Cumulative
Preferred Stock filed by the Corporation with the Secretary of State of the
State of Delaware on June 1, 2000 in its entirety.

THIRD: The preferences, rights, voting powers, restrictions, limitations,
qualifications and terms and conditions of redemption or conversion of the
shares of such series of preferred stock, which upon any restatement of the
Certificate of Incorporation shall be included as part of Section 4.1(b) of the
Certificate of Incorporation, are as follows:

                 SERIES A CONVERTIBLE CUMULATIVE PREFERRED STOCK

(1) Designation and Number.

         A series of preferred stock of the Corporation ("Preferred Stock"),
designated the "Series A Convertible Cumulative Preferred Stock" (the "Series A
Preferred"), is hereby established. The number of shares of the Series A
Preferred shall be, and shall not exceed, 5,395,857.654.

(2) Rank.

         The Series A Preferred will, with respect to dividend rights and rights
upon liquidation, dissolution or winding up of the Corporation, rank: (a) senior
to all classes or series of the common stock of the Corporation (the "Common
Stock"), and to all equity securities issued by the Corporation the terms of
which provide that such equity securities shall rank junior to such Series A
Preferred; (b) on a parity with all equity securities issued by the Corporation
in accordance with Section 6(c) other than those referred to in clauses (a) and
(c) of this Section 2; and (c) junior to all equity securities issued by the
Corporation in accordance with Section 6(c)(v) that rank senior to the Series A
Preferred. The term "equity securities" shall not include

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convertible or exchangeable debt securities but shall include any equity
securities into which such debt securities have been converted or for which such
debt securities have been exchanged.

(3) Dividends.

         (a) Holders of the shares of Series A Preferred shall be entitled to
receive dividends, when, as and if authorized by the Board of Directors, equal
to the Dividend Rate multiplied by the Liquidation Amount per share of Series A
Preferred. The "Dividend Rate" shall mean 13.5% per annum initially and shall
increase by an amount equal to 0.50% per annum on May 31, 2001 and on each
annual anniversary date thereafter until November 30, 2007 or earlier
redemption, conversion or Liquidation, as applicable; provided, however, that
the "Dividend Rate" shall equal the Default Dividend Rate during any period (1)
commencing on the 90th day following any Dividend Payment Date on which the
Corporation has failed to pay the dividend on such Dividend Payment Date,
assuming the Corporation still has not paid such dividend by such 90th day
following such Dividend Payment Date, and ending on the date on which such
dividend is paid, and (2) commencing on the 90th day following January 1, 2001
if the Consent Securities Ratio is in excess of 6 to 1 on such 90th day
following January 1, 2001 and ending on the earlier of (A) the date on which
consent by the holders of the Series A Preferred is provided to such then
existing Consent Securities Ratio in a manner consistent with the provisions of
Section 6(c)(vi) or (B) the reduction of such Consent Securities Ratio to 6 to 1
or lower. Payment in respect of all dividends so declared shall occur upon each
Dividend Payment Date by increasing the Liquidation Amount for each share of the
Series A Preferred on such Dividend Payment Date by an amount equal to the
dollar amount of the dividends declared with respect to such share. Other than
with respect to dividends payable pursuant to Section 3(e), holders of the
Series A Preferred shall not be entitled to cash dividends in respect of
dividend payments.

         (b) Dividends on the Series A Preferred shall be cumulative from May
31, 2000 and shall be payable semiannually in arrears on May 31 and November 30
of each year or, if not a Business Day, the next succeeding Business Day,
commencing November 30, 2000 (each, a "Dividend Payment Date"). Any dividend
payable on the Series A Preferred for a partial dividend period will be computed
on the basis of a 360-day year consisting of twelve 30-day months.

         (c) No dividends on the Series A Preferred shall be authorized by the
Board of Directors of the Corporation or be paid by the Corporation at such time
as the terms and provisions of any agreement of the Corporation, including any
agreement relating to its indebtedness, prohibits such authorization or payment
or provides that such authorization or payment would constitute a breach thereof
or a default thereunder, or if such authorization or payment shall be restricted
or prohibited by law.

         (d) Dividends on the Series A Preferred will accumulate daily at the
Dividend Rate until the date of redemption or conversion of the Series A
Preferred or a Liquidation, whether or not the Corporation has earnings and
whether or not such dividends are authorized or declared. Unpaid dividends shall
compound semiannually from the applicable Dividend Payment Date on which such
dividends were payable until full payment or date of earlier redemption,
conversion or Liquidation, as the case may be.

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         (e) If any cash or other dividends, other than dividends which are
payable solely in shares of the same class as the shares of equity securities on
which such dividends are declared, are declared by the Board of Directors to be
paid on the Common Stock or other equity securities of the Corporation ranking
junior, as to dividends, to the Series A Preferred, then holders of the shares
of Series A Preferred as of the close of business on the record date referred to
below shall be entitled to receive an additional dividend (the "Additional
Dividend") in an amount equal to the Special Dividend Amount for each
outstanding share of Series A Preferred. The "Special Dividend Amount" shall
mean the value of the dividends paid in respect of one share of the Common Stock
or other equity securities multiplied by the As Converted Factor. The Additional
Dividend shall be paid in whatever form the dividends are paid to the holders of
Common Stock or other equity securities and the Additional Dividend shall be
paid on the same date as such dividends are paid to the holders of the Common
Stock or such other equity securities. The record date for the payment of the
Additional Dividend to holders of shares of the Series A Preferred shall be
determined by the Board of Directors and shall not be less than five days prior
to the payment date in respect of such Additional Dividend.

         (f) The Corporation shall not authorize, declare or pay any dividend on
any equity securities of the Corporation ranking, as to the payment of dividends
or distribution of assets upon a Liquidation, on a parity with or junior to the
Series A Preferred for any period nor shall any shares of any such equity
securities be purchased, redeemed or otherwise acquired for consideration by the
Corporation, directly or indirectly, unless full dividends have been or
contemporaneously are authorized and paid or authorized and a sum sufficient for
the payment thereof is set apart for such payment, in each case as contemplated
in Section 3(a), on the Series A Preferred for all past dividend periods and the
then current dividend period.

(4) Liquidation Preference.

         (a) Upon any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of the Corporation (referred to herein as a
"Liquidation"), the holders of the Series A Preferred will be entitled to be
paid out of the assets of the Corporation legally available for distribution to
its stockholders liquidating distributions, in cash, in an amount equal to the
Liquidation Preference per share to the date of Liquidation, before any
distribution or payment is made to holders of Common Stock or any other equity
securities of the Corporation ranking junior to the Series A Preferred as to the
distribution of assets upon a Liquidation. After payment of the full amount of
the liquidating distributions to which they are entitled, the holders of Series
A Preferred will have no right or claim to any of the remaining assets of the
Corporation. Notwithstanding the foregoing, if an amount (a "Common Liquidation
Preference") equal to the product of (i) the Liquidation Preference per share of
Series A Preferred to the date of Liquidation divided by the Per Share Price,
multiplied by (ii) the per share liquidating distribution to which a holder of
one share of Common Stock would be entitled upon a Liquidation exceeds the
Liquidation Preference per share of Series A Preferred, then, upon a
Liquidation, the holders of the Series A Preferred shall be entitled to receive
the Common Liquidation Preference in respect of each share of Series A Preferred
in lieu of the Liquidation Preference in respect of each share of Series A
Preferred.

         (b) In the event that, upon any Liquidation of the Corporation, the
available assets of the Corporation are insufficient to pay the amount of the
liquidating distributions on all outstanding

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shares of Series A Preferred and the corresponding amounts payable on all other
equity securities of the Corporation ranking on a parity with Series A Preferred
in the distribution of assets upon such Liquidation, then the holders of Series
A Preferred and all other such equity securities shall share ratably in any such
distribution of assets in proportion to the full liquidating distributions to
which they would otherwise be respectively entitled.

(5) Mandatory Redemption; Redemption at Option of Corporation.

         (a) Shares of Series A Preferred will not be subject to optional
redemption by the Corporation prior to May 31, 2004. On or after May 31, 2004,
the Corporation may redeem shares of the Series A Preferred, in whole or in
part, from time to time, at a redemption price per share which shall equal the
product of (i) the Optional Redemption Percentage multiplied by (ii) the
Liquidation Preference per share of the Series A Preferred to be redeemed to the
date of redemption. The "Optional Redemption Percentage" shall initially equal
105% and shall decline ratably on each anniversary of May 31, 2004 until May 31,
2007 (in any case to an amount not less than 100%). The redemption price shall
be payable in cash, upon not less than 30 nor more than 60 days' prior written
notice to the holders of the Series A Preferred.

         (b) All of the outstanding shares of Series A Preferred shall be
redeemed by the Corporation on November 30, 2007 (the "Mandatory Redemption
Date") at a redemption price equal to 100% of the Liquidation Preference per
share to the date of redemption, payable in cash, upon not less than 30 nor more
than 60 days' prior written notice to the holders of the Series A Preferred.

         (c) If fewer than all of the outstanding shares of Series A Preferred
are to be redeemed pursuant to Section 5(a), the shares to be redeemed shall be
determined pro rata based on the number of shares of Series A Preferred held by
each holder thereof.

         (d) Notice of optional redemption will be mailed by the Corporation,
postage prepaid, not less than 30 nor more than 60 days prior to the date fixed
for redemption (the " Optional Redemption Date"), addressed to the respective
holders of record of the Series A Preferred to be redeemed at their respective
addresses as they appear on the stock transfer records of the Corporation. Each
notice of redemption shall state: (i) the Optional Redemption Date; (ii) the
number of shares of Series A Preferred to be redeemed; (iii) the redemption
price; (iv) the place or places where certificates representing such shares of
Series A Preferred are to be surrendered for payment of the redemption price;
(v) that dividends on the shares to be redeemed will cease to accumulate on the
Optional Redemption Date (unless the Corporation defaults in the payment of the
redemption price); and (vi) the date upon which the conversion rights with
respect to the Series A Preferred shall terminate. If fewer than all the shares
of Series A Preferred are to be redeemed, the notice mailed to each such holder
thereof shall also specify the number of shares of Series A Preferred to be
redeemed from each such holder.

         (e) At its election, the Corporation, prior to the Optional Redemption
Date or the Mandatory Redemption Date, as applicable, may irrevocably deposit
the cash redemption price (including accumulated and unpaid dividends) of the
Series A Preferred so called for redemption in trust for the holders thereof
with a bank or trust company, in which case the Corporation shall notify the
holders of the Series A Preferred to be redeemed of (i) the date of such
deposit, (ii) the

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office of such bank or trust company serving as the place of payment of the
redemption price and (iii) the requirement that in order to receive payment on
the Optional Redemption Date or the Mandatory Redemption Date, as the case may
be, such holders surrender the certificates representing such Series A Preferred
at such place on or prior to the Optional Redemption Date or the Mandatory
Redemption Date, as applicable, against payment of the redemption price
(including all accumulated and unpaid dividends). Any moneys so deposited which
remain unclaimed by the holders of Series A Preferred at the end of two years
after the Optional Redemption Date or the Mandatory Redemption Date, as
applicable, will be returned by such bank or trust company to the Corporation
and the holders of the Series A Preferred shall thereafter look to the
Corporation for the payment of the redemption price.

         (f) No failure to give notice of redemption or any defect thereto or in
the mailing thereof shall affect the validity of the proceedings for the
redemption of any shares of Series A Preferred except as to the holder to whom
notice was defective or not given.

         (g) Holders of the Series A Preferred will be entitled to receive
payment of the redemption price of their shares to be redeemed on or after the
Optional Redemption Date or the Mandatory Redemption Date, as applicable, by
presenting and surrendering the certificates representing such Series A
Preferred at the designated place and thereupon the redemption price of such
shares will be paid to or on the order of the person whose name appears on such
certificates as the owner thereof and each surrendered certificate will be
canceled; it being understood, however, that the Corporation shall not be
obligated to pay the redemption price applicable to any Series A Preferred to be
redeemed unless either (i) the certificates evidencing the shares of Series A
Preferred to be redeemed are delivered to the designated place as provided above
or (ii) the holder thereof notifies the Corporation that such certificates have
been lost, stolen or destroyed and executes an agreement reasonably satisfactory
to the Corporation to indemnify the Corporation from any loss incurred by it in
connection with such certificates. In the event that fewer than all the
outstanding shares of Series A Preferred are to be redeemed, a new certificate
will be issued representing the unredeemed shares.

         (h) From and after the Optional Redemption Date or the Mandatory
Redemption Date (unless the Corporation defaults in payment of the redemption
price), all dividends on the Series A Preferred called for redemption will cease
to accumulate and all rights of the holders thereof, except the right to receive
the redemption price thereof (including all accumulated and unpaid dividends),
will cease and terminate and such shares will not thereafter be transferred
(except with the consent of the Corporation) on the Corporation's records, and
such shares shall not be deemed to be outstanding for any purpose whatsoever.

         (i) Any shares of Series A Preferred that have been redeemed shall,
after such redemption, have the status of authorized but unissued Preferred
Stock, without designation as to series, until such shares are once more
designated by the Board of Directors of the Corporation as part of a series of
Preferred Stock other than Series A Preferred.

         (j) Until May 31, 2004, the Corporation shall not purchase or otherwise
acquire, directly or indirectly, any shares of Series A Preferred (except by
conversion into Common Stock).

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(6) Voting Rights; Protective Provisions.

         (a) Except as otherwise provided herein or as otherwise required by
law, holders of the Series A Preferred shall vote together with the holders of
Common Stock as a single class. In any matter in which the holders of the Series
A Preferred and Common Stock vote as a single class, each share of Series A
Preferred shall entitle its holder to a number of votes per share of Series A
Preferred equal to the As Converted Factor. In any matter in which the Series A
Preferred is entitled to vote as a separate class, each share of Series A
Preferred shall be entitled to one vote. Shares of the Series A Preferred shall
not entitle the holders thereof to any votes in connection with the election of
directors.

         (b) If at any time prior to the date that the Corporation constitutes a
TRS of EOPT and FUR, a transaction or event occurs which would cause EOPT or FUR
to own any Preferred Pre-TRS Excess Stock (as defined below), then the portion
of the stock of the Corporation owned by EOPT or FUR, as the case may be, which
constitutes Preferred Pre-TRS Excess Stock shall automatically constitute
non-voting stock of the Corporation on the date immediately prior to such
transaction or event and shall remain non-voting stock of the Corporation until
such time as EOPT or FUR, as the case may be, delivers notice to the Corporation
that (i) such stock no longer constitutes Preferred Pre-TRS Excess Stock, or
(ii) 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. The term "Preferred Pre-TRS Excess Stock" shall
mean any portion of the Series A Preferred owned by EOPT or FUR, as the case may
be, which, when combined with any shares of Common Stock owned by EOPT or FUR,
as the case may be, 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 "Preferred Pre-TRS
Excess Stock" shall mean any portion of the Series A Preferred owned by EOPT or
FUR, as the case may be, which, when combined with any shares of Common Stock
owned by EOPT or FUR, as the case may be, 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
Series A Preferred constitutes Preferred Pre-TRS Excess Stock, any warrants
exercisable for Common Stock owned by EOPT or FUR, as the case may be, shall be
treated as having been exercised. For purposes of this Section 6(b), EOPT and
FUR shall be considered to own directly any stock, warrants or other securities
the ownership of which would be attributable to EOPT or FUR, as the case may be,
for purposes of applying the provisions of Section 856(c)(4)(B) of the Code. All
references to the Corporation in this Section 6(b) shall include references to
any successor-in-interest to the Corporation. If requested in writing by EOPT or
FUR, the Corporation shall, in a timely manner, provide EOPT or FUR, as the case
may be, with any information reasonably necessary for EOPT or FUR, as the case
may be, to determine whether any of the Series A Preferred EOPT owns constitutes
Preferred Pre-TRS Excess Stock. The Corporation further agrees to notify EOPT or
FUR, as the case may be, as soon as practicable, in writing, of any event or
transaction of which it has knowledge that it believes results in EOPT's or
FUR's ownership of Preferred Pre-TRS Excess Stock, as the case may be. The
Corporation further agrees that if any event or transaction results in EOPT's or
FUR's ownership of any Preferred Pre-TRS Excess Stock, the Corporation shall
notify EOPT or FUR, as the case may be, as soon as practicable, in writing, in
the event that it believes such stock no longer constitutes Preferred Pre-TRS
Excess Stock.

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         (c) Until the occurrence of a Qualified Initial Public Offering or a
Qualified Merger, consent of the holders of at least 66.67% (or, in the case of
clause (iv) and (ix) below only, 80%) of the outstanding shares of Series A
Preferred not held by FrontLine Capital Group ("FCG") or its Affiliates will be
required for:

                  (i)      any sale or acquisition (in each case, by way of
                           stock sale, merger with an entity the common stock or
                           other equity interests of which are privately held,
                           asset sale, recapitalization or similar transaction)
                           by or of the Corporation or any subsidiary of the
                           Corporation of shares, assets or a business
                           representing 25% of LTM EBITDA of the Corporation and
                           its subsidiaries on a consolidated basis;

                  (ii)     any merger, other than a Qualified Merger, of the
                           Corporation or any Material Subsidiary with another
                           entity the common stock or other equity interests of
                           which are publicly held;

                  (iii)    any liquidation, dissolution or winding up of the
                           affairs of the Corporation or any Material
                           Subsidiary;

                  (iv)     any amendment to the Corporation's Certificate of
                           Incorporation or by-laws in a manner adverse to
                           holders of the Series A Preferred;

                  (v)      the issuance of any equity security by the
                           Corporation (upon conversion or otherwise) other than
                           (A) Common Stock, (B) preferred stock that is
                           subordinated to the Series A Preferred as to
                           liquidation but otherwise has the characteristics of
                           Consent Securities, or (C) Consent Securities not
                           requiring consent under subsection (vi) below, or the
                           issuance of any debt security by the Corporation
                           which may, at the option of the holder or the
                           Corporation, be converted prior to the redemption or
                           conversion of the Series A Preferred, into any equity
                           security of the Corporation other than an equity
                           security permitted pursuant to the requirements of
                           clause (A) or (B) of this subsection (v);

                  (vi)     the incurrence of Indebtedness or issuance of Consent
                           Securities resulting in a Consent Securities Ratio in
                           excess of 6 to 1 (or, through December 31, 2000, the
                           incurrence of Indebtedness or the issuance of Consent
                           Securities resulting in an aggregate amount of
                           Indebtedness and Consent Securities in excess of $450
                           million);

                  (vii)    any increase in the number of shares of Common Stock
                           issuable pursuant to the Stock Option Plan in excess
                           of the Option Limiting Percentage;

                  (viii)   any material change in the business plan of the
                           Corporation as reflected in the Corporation's
                           Business Plan dated January 2000; or

                  (ix)     the purchase, redemption or other acquisition of any
                           equity security by the Corporation ranking junior to,
                           or pari passu with, the Series A Preferred.

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Notwithstanding the foregoing,

                  (A)      if EOP sells (1) more than 919,748.461 shares of
                           Series A Preferred to one or more entities other than
                           its Affiliates or (2) Series A Preferred to four or
                           more entities other than its Affiliates, only the
                           consent of the holders of a majority of the
                           outstanding shares of Series A Preferred not held by
                           FCG or its Affiliates will be required in connection
                           with any of the matters specified in clauses (i)
                           through (iii) and (v) through (ix) above;

                  (B)      if EOP is determined to have an EOP Conflict
                           (excluding any conflicts resulting solely from the
                           ownership of shares of Series A Preferred) in
                           evaluating any proposed transaction falling within
                           the scope of clauses (i) or (ii) above, EOP shall
                           have the right to vote on the matter but only the
                           consent of a majority of the outstanding shares of
                           Series A Preferred not held by FCG or its Affiliates
                           will be required; and

                  (C)      in the case of an acquisition meeting the criteria of
                           clause (i) above, or in the case of matters covered
                           by clauses (vii) and (viii) above, if the Corporation
                           is not a TRS, EOP shall not have the right to vote on
                           the matter in question and the shares held by EOP
                           shall not be considered outstanding for purposes of
                           determining whether holders of the Series A Preferred
                           have consented to the matter in question.

         (d) Until a Qualified Initial Public Offering or Qualified Merger, the
consent of the Board of Directors of the Corporation, which consent shall
include that of at least one director designated by a holder of the Series A
Preferred (other than FCG or any Affiliate thereof), shall be required for any
transaction or agreement (other than with respect to the Operating Agreement of
HQ Global Workplaces Equity Joint Venture, LLC between the Corporation and EOP
and the transactions contemplated thereby) between the Corporation and FCG or
any Investor or any of their respective Affiliates having a transaction value or
contemplated transaction value equal to or exceeding

                  (i)      2% of the Corporation's annual budgeted revenues, or

                  (ii)     3% of the Corporation's annual budgeted expenses,

each determined as reasonably projected over any four successive quarterly
periods during the period beginning on the date such transaction or agreement
shall commence and ending on the later of (A) the three year anniversary of such
commencement date or (B) the termination date of such transaction or agreement.
In addition, the Corporation shall inform its Board of Directors in advance of
all such transactions or agreements having a transaction value or contemplated
transaction value equal to or exceeding $250,000, even if consent is not
required in accordance with the preceding sentence. Notwithstanding the
foregoing, if the Corporation is not a TRS of EOPT on the date the consent of a
director designated by a holder of the Series A Preferred is required, the
consent of a director designated by EOPT shall not be required in order for the
Corporation to take the actions described in this Section 6(d).

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         (e) Notwithstanding any provision herein to the contrary, until the
occurrence of a Qualified Initial Public Offering or a Qualified Merger, consent
of the holders of all the outstanding shares of Series A Preferred not held by
FCG or its Affiliates will be required for the Corporation to issue any equity
security (including Consent Securities) that

                  (i)      ranks senior to the Series A Preferred with respect
                           to the payment of dividends; or

                  (ii)     entitles the holders thereof to cash dividends,

provided, however, that if the Corporation is not a TRS of EOPT on the date such
consent is required, then the consent of EOPT shall not be required in order for
the Corporation to take the actions described in Section 6(e)(ii).

         (f) Notwithstanding any provision herein to the contrary, the
Corporation shall not consummate any merger approved by the holders of the
Series A Preferred in accordance with Section 6(c)(i) or (ii), as applicable, in
the event that the aggregate value of the consideration to be received by the
holders of the Common Stock upon consummation of such merger is 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 relating to such merger,
unless the holders of the Series A Preferred reapprove such merger pursuant to
Section 6(c)(i) or 6(ii), as applicable.

(7) Conversion.

         (a) In the event of a merger of, or an initial public offering of
Common Stock by, the Corporation that does not constitute a Qualified Merger or
Qualified Initial Public Offering, respectively (a "Conversion Option Event"),
each holder of the Series A Preferred shall have the option to convert its
shares of Series A Preferred, in whole or in part, into shares of Common Stock
at the Conversion Rate on the date of the consummation of such merger or initial
public offering, as the case may be; provided, however, that no holder of Series
A Preferred shall have the option to convert any shares of Series A Preferred in
respect of which a Redemption Election has been made and not withdrawn in
accordance with Section 8(b) by the close of business on the Business Day prior
to the Redemption Election Payment Date; and provided, further, that the
foregoing right to convert shares of Series A Preferred to be redeemed pursuant
to Section 5 hereof will terminate at the close of business on the Business Day
immediately preceding the Optional Redemption Date or the Mandatory Redemption
Date, as applicable.

         The Corporation shall provide each holder of Series A Preferred with a
summary of the material terms of a proposed merger not less than 45 days prior
to the consummation thereof and shall notify each holder of the Series A
Preferred of its intention to file a registration statement relating to an
initial public offering with the SEC not less than 45 days prior to the filing
date thereof. Each holder of Series A Preferred shall notify the Corporation in
writing of such holder's election not more than 30 days after its receipt of
such summary or notice, as the case may be, from the Corporation and such
holder's election shall be irrevocable for 150 days after its receipt of such
summary or notice, as the case may be, from the Corporation; provided, however,
that any holder shall have the right to rescind its election and either continue
to hold its Series A Preferred or make a Redemption Election if there is any
material change in the

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Corporation's business or financial condition or in the Conversion Price
occurring prior to the consummation of the proposed merger or initial public
offering, as the case may be, or if the proposed merger or initial public
offering is not consummated within 150 days after its receipt of such summary or
notice, as the case may be, from the Corporation.

         (b) Following the consummation of the transaction resulting in a
Conversion Option Event, holders of shares of Series A Preferred which remain
outstanding shall have the option at any time prior to the occurrence of a
Qualified Initial Public Offering or Qualified Merger to convert all or a
portion of such shares into shares of Common Stock at the Conversion Rate;
provided, however, that the right to convert shares of Series A Preferred to be
redeemed pursuant to Section 5 shall terminate at the close of business on the
Business Day immediately preceding the Optional Redemption Date or the Mandatory
Redemption Date, as applicable.

         In case the Corporation shall pay or make any dividend or any other
distribution on any class of capital stock of the Corporation payable in shares
of Common Stock after a Conversion Option Event but prior to a conversion
pursuant to this Section 7(b), the Conversion Rate in effect at the time of such
conversion shall be increased by dividing the Conversion Rate by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding at
the close of business on the date before such 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 dividends or
other distributions.

         In case outstanding shares of Common Stock shall be subdivided into a
greater number of shares of Common Stock, and such subdivision becomes effective
after a Conversion Option Event but prior to the issuance of shares of Common
Stock upon a conversion pursuant to this Section 7(b), the Conversion Rate in
effect at the time of such conversion 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 after a Conversion Option Event but prior to such conversion, the
Conversion Rate in effect at the time of such conversion shall be
proportionately reduced.

         If, after a Conversion Option Event but prior to the issuance of shares
of Common Stock upon a conversion pursuant to this Section 7(b), the Corporation
shall sell shares of its Common Stock at a price per share less than the current
market price per share of Common Stock on the date of sale (other than shares of
Common Stock issued (i) pursuant to the Stock Option Plan, (ii) upon exercise of
any warrants to purchase Common Stock of the Corporation, including any warrants
issued to holders of the Corporation's high yield, mezzanine or bridge debt in
accordance with Section 5.1 of the Stockholders Agreement, or (iii) upon
conversion of the Series A Preferred), the Conversion Price in effect at the
time of such conversion shall be adjusted to equal the price determined by
multiplying the Conversion Price in effect immediately prior to such sale 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
Corporation 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.

                                       10
<PAGE>   11
         If, after a Conversion Option Event but prior to the issuance of shares
of Common Stock upon a conversion pursuant to this Section 7(b), the Corporation
shall distribute rights, options or warrants (any such rights, options or
warrants are referred to herein as "Options") or any stock or securities
convertible into or exercisable or exchangeable for Common Stock (other than a
dividend subject to the provisions of the second paragraph of Section 7(b) or
any warrants issued to holders of the Corporation's mezzanine or bridge debt in
accordance with Section 5.1 of the Stockholders Agreement) (any such stock or
securities are referred to herein as "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 Conversion Price used in
the determination of the Conversion Rate for a conversion pursuant to this
Section 7(b) shall be adjusted to equal the price determined by multiplying the
Conversion Price in effect immediately prior to such record date 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 Corporation 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 Corporation 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 specified event or events ("Trigger Event"), shall for purposes
of this Section 7(b) not be deemed distributed until the occurrence of the
earliest Trigger Event. An adjustment made pursuant to this Section 7(b) shall
be effective immediately after the record date for such distribution.

         (c) Upon the consummation of a Qualified Initial Public Offering or
Qualified Merger, each share of Series A Preferred shall automatically be
converted into shares of Common Stock at the Conversion Rate. The Corporation
shall provide each holder of Series A Preferred with a summary of the material
terms of a proposed Qualified Initial Public Offering or Qualified Merger not
less than 30 days prior to the consummation thereof. However, the automatic
conversion of the Series A Preferred shall not be contingent upon the
Corporation's delivery of the summary referred to in the preceding sentence.

         (d) In the event that none of a Qualified Merger, Qualified Initial
Public Offering or a Conversion Option Event has occurred prior to the close of
business on the last Business Day immediately preceding the Mandatory Redemption
Date, holders of the Series A Preferred shall have the right to convert their
shares into shares of Common Stock on the Mandatory Redemption Date at the
Conversion Rate.

         Each holder of Series A Preferred electing to convert its shares on the
Mandatory Redemption Date shall notify the Corporation in writing of such
holder's election not less than 45 nor more than 90 days prior to the Mandatory
Redemption Date, whereupon the Corporation shall notify each such holder of the
Conversion Price applicable to such conversion in

                                       11
<PAGE>   12

accordance with clause (iv) of the definition of Conversion Price not less than
30 days prior to the Mandatory Redemption Date. Any holder shall have the right
to rescind any previous election to convert upon notice to the Corporation no
less than 10 Business Days prior to the Mandatory Redemption Date.

         (e) Upon the consummation of a sale pursuant to a Tag-Along Right by a
holder of the Series A Preferred electing to include all or a portion of its
Series A Preferred as part of the Tag-Along Right, each transferee to whom such
shares of Series A Preferred shall have been transferred shall have the option
to convert such shares of Series A Preferred into Common Stock at the Conversion
Rate on or prior to the 60th day following the sale pursuant to such Tag-Along
Right (the "Tag-Along Conversion Date"). Each such transferee holding Series A
Preferred electing to convert its shares on the Tag-Along Conversion Date shall
notify the Corporation in writing of such holder's election not less than 45
days prior to the Tag-Along Conversion Date.

         (f) No fractional shares of Common Stock shall be issued upon
conversion of Series A Preferred. In lieu of any fractional shares to which the
holder would otherwise be entitled, the Corporation shall pay cash equal to such
fraction multiplied by the then fair market value of such fractional shares as
determined by the Board of Directors of the Corporation in its good faith
judgment. If more than one share of Series A Preferred is surrendered for
conversion by the same holder, the number of full shares of Common Stock
issuable upon conversion shall be computed on the basis of the aggregate number
of shares of Series A Preferred so surrendered.

         (g) The Corporation and each holder of Series A Preferred shall, as
promptly as practicable, but in no event later than the Mandatory HSR Filing
Date, file (i) with the FTC and the DOJ the notification and report form, if
any, required in connection with the issuance of Common Stock upon conversion of
the Series A Preferred and any supplemental information requested in connection
therewith pursuant to the HSR Act, and (ii) any report or document required to
be filed with any other Governmental Entity resulting from such issuance of the
Common Stock. Any such notification and report form and supplemental information
shall be in substantial compliance with the requirements of the HSR Act. Each
holder of Series A Preferred shall furnish to the Corporation, and the
Corporation shall furnish to each such holder of Series A Preferred, such
necessary information and reasonable assistance as may be requested in
connection with the preparation of any filing or submission which is necessary
under the HSR Act. The Corporation shall keep each holder of Series A Preferred
informed, and each holder of Series A Preferred shall keep the Corporation
informed, of the status of any communications with, and any inquiries or
requests for additional information from, the FTC and the DOJ in respect of the
issuance of Common Stock to such holder upon conversion of the Series A
Preferred and shall comply promptly with any such inquiry or request.

         Any conversion of the Series A Preferred and the related issuance of
Common Stock shall be subject to the conditions that such conversion and
issuance not violate any statute, rule, regulation, executive order, decree,
temporary restraining order, preliminary or permanent injunction or other order
enacted, entered, promulgated, enforced or issued by any Governmental Entity and
that 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

                                       12
<PAGE>   13

brought by a non-Governmental Entity) that, if successful, would result in any
of the foregoing effects.

         (h) Before any holder of Series A Preferred shall be entitled to
convert the same into full shares of Common Stock, and to receive certificates
therefor, such holder shall surrender the certificate or certificates therefor,
duly endorsed, at the principal office of the Transfer Agent, and shall give
written notice to the Corporation at such office that it elects to convert the
same; provided, however, that in the event of an automatic conversion pursuant
to either of Section 7(c) or (e) above, the outstanding shares of Series A
Preferred shall be converted automatically without any further action by the
holders of such shares and whether or not the certificates representing such
shares are surrendered to the Transfer Agent. The Corporation shall not be
obligated to issue certificates evidencing the shares of Common Stock issuable
upon conversion to any holder of Series A Preferred, whether such conversion is
automatic or at the option of such holder, unless either (i) the certificates
evidencing the shares of Series A Preferred are delivered to the Transfer Agent
as provided above or (ii) the holder notifies the Transfer Agent that such
certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the Corporation to indemnify the Corporation from any loss
incurred by it in connection with such certificates.

         The Corporation shall, as soon as practicable after such delivery, or
after such agreement and indemnification, issue and deliver at such office of
the Transfer Agent to such holder of Series A Preferred, a certificate or
certificates for the number of shares of Common Stock to which such holder shall
be entitled as aforesaid and a check payable to the holder in the amount of any
cash payable as the result of a conversion into fractional shares of Common
Stock.

         Any such conversion shall be deemed to have been made upon

                  (i)      satisfaction of the conditions specified in Section
                           7(g) and

                  (ii)     either

                           (A)      in the case of a conversion pursuant to
                                    either Section 7(a), (b) or (d),
                                    satisfaction of the conditions set forth in
                                    such Section and in this Section 7(h), or

                           (B)      a Qualified Initial Public Offering,
                                    Qualified Merger or consummation of the sale
                                    pursuant to a Tag-Along Right, as the case
                                    may be,

and the person or persons entitled to receive the shares of Common Stock
issuable upon such conversion shall be treated for all purposes as the record
holder or holders of such shares of Common Stock when the applicable conditions
specified in clauses (i) and (ii) above are satisfied.

         (i) Except as otherwise provided herein with respect to the calculation
of the Liquidation Preference, the Corporation shall make no payment or
allowance for unpaid dividends, whether or not in arrears, on Series A Preferred
converted into Common Stock.

                                       13
<PAGE>   14

         (j) If any recapitalization, reclassification or reorganization of the
capital stock of the Corporation, or any consolidation or merger of the
Corporation with another corporation, or the sale of all or substantially all of
its assets, shall be effected (an "Organic Change"), and in connection with such
Organic Change the Common Stock shall be converted into common stock of another
entity or another security of the Corporation (a "New Security"), then, as a
condition of such Organic Change, lawful and adequate provisions shall be made
by the Corporation whereby (i) if the conversion occurs in connection with such
Organic Change, the holders of the Series A Preferred shall receive (in lieu of
the shares of the Common Stock immediately theretofore receivable upon the
conversion rights contained herein) such shares of New Securities or property as
may be issued or payable with respect to or in exchange for the number of shares
of Common Stock which such holders would have received immediately following
such Organic Change had such holders converted their shares of Series A
Preferred into shares of Common Stock immediately prior to the effective date of
such Organic Change at the Conversion Rate at the time of conversion, and (ii)
if the conversion occurs subsequent to such Organic Change, the Corporation
shall make appropriate provision with respect to the rights and interests of the
holders of the Series A Preferred so that the conversion provisions hereof (and
the definition of Conversion Rate) shall thereafter be applicable to a
conversion of the Series A Preferred into said New Securities. The Corporation
will not effect any such consolidation, merger or sale unless, prior to the
consummation thereof, the surviving entity (if other than the Corporation)
resulting from such consolidation or merger or the entity purchasing such assets
shall assume by written instrument the obligation to deliver to holders of
shares of the Series A Preferred such shares of common stock or other securities
or property as, in accordance with the foregoing provisions, such holders may be
entitled to receive upon conversion.

         (k) In the event that at any time, as a result of an adjustment made
pursuant to Section 7(j) above, the holder of any shares of Series A Preferred
becomes entitled to receive any shares of capital stock other than Common Stock
of the Corporation, the number and kind of such other shares so receivable shall
thereafter be subject to adjustment from time to time in a manner and on terms
as nearly equivalent as practicable to the provisions concerning the Common
Stock contained in Section 7(b) and the provisions of this Section 7 shall apply
on like terms to any such other shares.

         (l) If any event occurs as to which the provisions of the second
through fifth paragraphs, inclusive, of Section 7(b) or of Sections 7(j) and (k)
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
conversion 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 the conversion rights as
aforesaid, but in no event shall any such adjustment have the effect of
increasing the Conversion Price or otherwise adversely affecting the holders of
the Series A Preferred.

         (m) The Corporation shall at all times reserve and keep available, free
from preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of the Series A Preferred, the full number
of shares of Common Stock then issuable upon the conversion of the Series A
Preferred.

                                       14
<PAGE>   15

         (n) Except as provided in the next sentence, the Corporation will pay
any and all documentary, stamp or similar issue and transfer taxes and duties
that may be payable in respect of the issue or delivery of shares of Common
Stock on conversion of the Series A Preferred. The Corporation shall not,
however, be required to pay any tax or duty which may be payable in respect of
any transfer involved in the issue and delivery of shares of Common Stock in a
name other than that of the holder of the Series A Preferred or its Affiliates,
and no such issue or delivery shall be made unless and until the person
requesting such issue and delivery has paid to the Corporation the amount of any
such tax or duty, or has established to the satisfaction of the Corporation that
such tax or duty has been paid.

         (o) The Corporation agrees that all shares of Common Stock which may be
delivered upon conversion of the Series A Preferred, upon such delivery, will
have been duly authorized and validly issued, will be fully paid and
nonassessable, will be free and clear of all liens, other than transfer
restrictions relating to federal securities laws, and will not be subject to any
preemptive or similar rights under any provision of applicable law, the
certificate of incorporation or by-laws of the Corporation or any agreement,
contract or instrument to which the Corporation is a party or by which it or any
of its properties or assets are bound (and shall be issued out of the
Corporation's authorized but unissued Common Stock).

         (p) Any shares of Series A Preferred that have been converted shall,
after such conversion, have the status of authorized but unissued Preferred
Stock, without designation as to series, until such shares are once more
designated by the Board of Directors as part of a series of Preferred Stock
other than Series A Preferred.

(8) Redemption at Option of Holders.

         (a) Notwithstanding the provisions of Section 7(a), upon the occurrence
of a Conversion Option Event and subject to the consent, if required pursuant to
the terms thereof, of the holders of any indebtedness of the Corporation for
borrowed money or any indebtedness for borrowed money guaranteed by the
Corporation (which the Corporation agrees to use commercially reasonable
efforts, other than the payment of any fee or other consideration, to obtain),
each holder of Series A Preferred shall have the right to require the
Corporation to redeem for cash (a "Redemption Election") all or a portion of
shares of Series A Preferred owned by such holder on the date of the
consummation of the Conversion Option Event (the "Redemption Election Payment
Date"), at a redemption price per share equal to 100% of the Liquidation
Preference per share to the Redemption Election Payment Date.

         (b) In order for a holder to have its Series A Preferred redeemed on
the Redemption Election Payment Date, such holder shall deliver to the
Corporation (i) notice of such holder's election in writing, not less than 30
days prior to the Redemption Election Payment Date and (ii) on or prior to 5:00
p.m., New York City time, on the last Business Day prior to the Redemption
Election Payment Date, at the office of the Transfer Agent, the shares of Series
A Preferred to be redeemed with the form entitled "Option to Elect Redemption"
on the reverse thereof or otherwise accompanying such shares of Series A
Preferred duly completed. Any Redemption Election shall be irrevocable;
provided, however, that any holder shall have the right to rescind its
Redemption Election and either continue to hold its Series A Preferred or make
an election to convert its Series A Preferred pursuant to Section 7(a) if there
is any material change in the

                                       15
<PAGE>   16

Corporation's business or financial condition or in the Conversion Price
occurring prior to the consummation of the Conversion Option Event or if the
Conversion Option Event is not consummated within 150 days after its receipt of
the summary thereof from the Corporation.

         (c) At its election, the Corporation, prior to the Redemption Election
Payment Date, may irrevocably deposit the cash redemption price (including
accumulated and unpaid dividends) of the Series A Preferred to be redeemed in
trust for the applicable holders thereof with a bank or trust company, in which
case the Corporation shall notify the holders of the Series A Preferred to be
redeemed of (i) the date of such deposit, (ii) the office of such bank or trust
company serving as the place of payment of the redemption price and (iii) the
requirement (subject to the right of a holder of Series A Preferred to rescind
its Redemption Election) that such holders surrender the certificates
representing such Series A Preferred at such place on or prior to the Redemption
Election Payment Date against payment of the redemption price (including all
accumulated and unpaid dividends). Any moneys so deposited which remain
unclaimed by the holders of Series A Preferred at the end of two years after the
Redemption Election Payment Date will be returned by such bank or trust company
to the Corporation and the holders thereafter shall look to the Corporation for
payment of the redemption price.

         (d) Subsequent to the satisfaction of the conditions specified in
clause (b), on the Redemption Election Payment Date, the redemption price of the
Series A Preferred to be redeemed will be paid to or on the order of the person
whose name appears on such certificates as the owner thereof and each
surrendered certificate will be canceled; it being understood, however, that the
Corporation shall not be obligated to pay the redemption price applicable to any
Series A Preferred to be so redeemed unless either (i) the certificates
evidencing the shares of Series A Preferred to be so redeemed are delivered as
provided above or (ii) the holder thereof notifies the Corporation that such
certificates have been lost, stolen or destroyed and executes an agreement
satisfactory to the Corporation to indemnify the Corporation from any loss
incurred by it in connection with such certificates. In the event that fewer
than all the outstanding shares of Series A Preferred are to be redeemed, a new
certificate will be issued representing the unredeemed shares.

         (e) From and after the Redemption Election Payment Date (unless the
Corporation defaults in payment of the redemption price), all dividends on the
Series A Preferred actually redeemed will cease to accumulate and all rights of
the holders thereof, except the right to receive the redemption price thereof
(including all accumulated and unpaid dividends), will cease and terminate and
such shares actually redeemed will not thereafter be transferred (except with
the consent of the Corporation) on the Corporation's records, and such shares
actually redeemed shall not be deemed to be outstanding for any purpose
whatsoever.

(9) Special Provisions Relating to a Default.

         For so long as the Corporation remains in default with respect to all
or any portion of the redemption price payable in connection with the redemption
of the Series A Preferred on the Mandatory Redemption Date or earlier Redemption
Election Payment Date ("Redemption Default"), in addition to any other remedies
that may be available to holders of shares of Series A Preferred:

                                       16
<PAGE>   17

                  (i)      dividends on the Series A Preferred with respect to
                           which the Redemption Default has occurred shall be
                           payable at the Default Dividend Rate multiplied by
                           the Liquidation Preference on such redemption date;
                           and

                  (ii)     no later than 60 days after the end of each fiscal
                           quarter of the Corporation, commencing with the first
                           full fiscal quarter following the quarter in which
                           the Redemption Default occurs, the Corporation shall
                           be required to pay to the holders of the Series A
                           Preferred with respect to which the Redemption
                           Default has occurred an amount equal to the lesser of
                           (A) 100% of Excess Cash Flow for the quarter then
                           ended, and (B) that portion of the redemption price
                           which remains unpaid.

(10) Definitions.

         "Additional Dividend" shall have the meaning set forth in Section 3(e).

         "Adjusted EBITDAR" shall mean EBITDA plus Rent, Losses to Break Even on
Development Properties and non-recurring items involving the Corporation or any
of its consolidated subsidiaries, each as determined in accordance with
generally accepted accounting principles.

         "Affiliate" shall mean, with respect to any Person, (i) any Person
directly or indirectly, through one or more intermediaries, controlling,
controlled by or under common control with such Person, or (ii) any officer,
director, general partner, managing member or trustee of such Person or any
Person referred to in clause (i) above. For purposes of this definition, (i)
"control," when used with respect to any Person, means the power, direct or
indirect, to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise, and the terms "controlling" and "controlled" have meanings
correlative to the foregoing, (ii) with respect to EOP or its successors, any
non-controlled subsidiary of EOP or any successor thereto or EOPT or any
successor thereto shall be considered an Affiliate, and (iii) for voting
purposes only, based on the facts in existence on May 31, 2000, FUR shall not be
considered an Affiliate of FCG.

         "Aggregate Rent Obligation" shall mean all Rent payable by the
Corporation within the next twelve months from the relevant date.

         "As Converted Factor" 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)      in the case of Section 3(e) relating to equity securities of
                  the Corporation other than Common Stock, the "As Converted
                  Factor" shall mean the number determined by dividing the
                  Liquidation Preference per share of Series A Preferred by the
                  liquidation preference of such other equity security;

         (B)      if the Corporation shall sell shares of Common Stock pursuant
                  to an offering which is not a Qualified Initial Public
                  Offering, then

                                       17
<PAGE>   18

                  (i)      if the price per share 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 Corporation 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 Corporation 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 Corporation or FCG
                           shall not be deemed to be an Affiliate of the
                           Corporation or FCG solely by reason of having the
                           right to nominate a member of the Corporation's Board
                           of Directors as part of the sale consideration),

                  the As Converted Factor shall be determined by dividing the
                  Liquidation Preference per share by the price per share of
                  Common Stock so sold;

         (C)      subsequent to a merger of the Corporation which is not a
                  Qualified Merger but prior to any conversion pursuant to
                  Section 7(b), the As Converted Factor 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% 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 Factor 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;

         (D)      in case the Corporation shall issue additional shares of
                  Common Stock of the Corporation or shall pay or make any
                  dividend or other distribution on any class of capital stock
                  of the Corporation payable in shares of Common Stock, the As
                  Converted Factor in effect at such time as the As Converted
                  Factor is determined shall be increased by dividing the As
                  Converted Factor by a fraction, the numerator of which shall
                  be the number of shares of Common Stock outstanding on the
                  last date prior to such 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 dividends, issuances and
                  distributions;

         (E)      in case outstanding shares of Common Stock shall be subdivided
                  into a greater number of shares of Common Stock, the As
                  Converted Factor 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 Factor, the As
                  Converted Factor shall be proportionately reduced;

                                       18
<PAGE>   19

         (F)      if the Corporation 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
                  Corporation in accordance with its certificate of
                  incorporation, as amended, (ii) upon exercise of any warrants
                  to purchase Common Stock of the Corporation, including any
                  warrants issued to holders of the Corporation's high yield,
                  mezzanine or bridge debt in accordance with Section 5.1 of the
                  Stockholders Agreement or (iii) upon conversion of the Series
                  A Preferred), the number by which the Liquidation Preference
                  is divided to determine the As Converted Factor 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
                  Corporation 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;

         (G)      if the Corporation shall distribute Options or Convertible
                  Securities to the holders of all 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 Factor 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 Corporation 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 Corporation 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;

         (H)      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
                  Factor shall thereafter be determined in respect of said New
                  Securities (after giving effect to such conversion of Common
                  Stock into

                                       19
<PAGE>   20

                  such New Security, assuming the conversion of the Series A
                  Preferred into Common Stock immediately prior to such Organic
                  Change);

         (I)      in the event that that at any time, as a result of an
                  adjustment made pursuant to Section 7(j), 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 Factor, 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 (D) through (H) above; and

         (J)      if any event occurs as to which the foregoing provisions set
                  forth in clauses (D) through (I) 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 Factor or otherwise adversely affecting the holders
                  of the Series A Preferred.

         "Business Day" shall mean any day, other than a Saturday or Sunday,
that is neither a legal holiday nor a day on which banking institutions in The
City of New York are authorized or required by law, regulation or executive
order to close.

         "Capital Expenditures" shall mean all expenditures that should be
capitalized in accordance with generally accepted accounting principles.

         "Certificate of Incorporation" shall have the meaning set forth on page
one herein.

         "Code" shall have the meaning set forth in Section 6(b).

         "Common Stock" shall have the meaning set forth in Section 2.

         "Consent Securities" shall mean non-voting equity securities of the
Corporation having the following characteristics:

         (A)      an absence of protective covenants or consents;

         (B)      a mandatory redemption or maturity date which is later than
                  the mandatory redemption date of the Series A Preferred;

         (C)      a specified liquidation preference on the date of issuance
                  that does not exceed the consideration received for such
                  securities on such date of issuance;

         (D)      does not entitle the holder thereof to the payment of cash
                  dividends; and

                                       20
<PAGE>   21

         (E)  a junior ranking to the Series A Preferred except as to
              liquidation preference, on which basis such non-voting equity
              securities may rank on parity with the Series A Preferred.

         "Consent Securities Ratio" shall mean a ratio, the numerator of which
is the sum of (i) the then current principal amount of Indebtedness of the
Corporation and its consolidated subsidiaries, (ii) the liquidation preference
from Consent Securities sold, and (iii) the product of 6.5 multiplied by the
Corporation's Aggregate Rent Obligation, and the denominator of which is LTM
Adjusted EBITDAR.

         "Consolidated Net Income" of the Corporation shall mean net income of
the Corporation and its consolidated subsidiaries as determined in accordance
with generally accepted accounting principles.

         "Conversion Option Event" shall have the meaning set forth in Section
7(a).

         "Conversion Price" shall mean

                  (i)      in connection with a Qualified Initial Public
                           Offering or such other initial public offering of
                           equity securities by the Corporation, the dollar
                           amount equal to the price per share at which the
                           related equity securities were initially sold to the
                           public;

                  (ii)     in connection with a Qualified Merger or such other
                           merger of the Corporation, the dollar value of the
                           aggregate consideration to be received in respect of
                           each share of Common Stock pursuant to the terms of
                           the Qualified Merger or such other merger as
                           calculated on the date of the execution of the merger
                           agreement, provided that, if the aggregate value of
                           the consideration to be received upon consummation of
                           the merger is more than 12.5% below the value of the
                           aggregate consideration to be received as calculated
                           on the date of the execution of the merger agreement,
                           the Conversion Price shall mean the dollar value of
                           the aggregate consideration to be received upon
                           consummation of the merger;

                  (iii)    in connection with a conversion pursuant to Section
                           7(b), the greater of (A) the dollar amount calculated
                           pursuant to clause (i) or (ii) above, as the case may
                           be, and (B) if the Common Stock is then publicly
                           traded, the average closing price of the Common Stock
                           during the three month period ending on the date on
                           which the election to convert Series A Preferred into
                           Common Stock pursuant to Section 7(b) is made;

                  (iv)     in connection with a conversion pursuant to Section
                           7(d), the fair market value of the Common Stock as
                           determined no later than 30 days prior to the
                           Mandatory Redemption Date by an independent "bulge
                           bracket" investment banking firm selected by the
                           Corporation and reasonably acceptable to a majority
                           of the holders of the Series A Preferred; and

                                       21
<PAGE>   22

                  (v)      in connection with a conversion pursuant to Section
                           7(e), the dollar price per share at which the Common
                           Stock is being sold pursuant to a Tag-Along Right.

         "Conversion Rate" shall mean the number of shares of Common Stock
issuable upon conversion of one share of Series A Preferred determined by
dividing the Liquidation Preference per share by the Conversion Price.

         "Convertible Securities" shall have the meaning set forth in Section
7(b).

         "Corporation" shall have the meaning set forth on page one herein.

         "Default Dividend Rate" shall mean, at any time, the sum of the
Dividend Rate then in effect plus 3 percentage points.

         "Dividend Payment Date" shall have the meaning set forth in Section
3(b).

         "Dividend Rate" shall have the meaning set forth in Section 3(a).

         "DOJ" shall mean the United States Department of Justice.

         "EBITDA" shall mean earnings of the Corporation and its consolidated
subsidiaries before interest, taxes, depreciation and amortization, each as
determined in accordance with generally accepted accounting principles.

         "EOP" shall mean EOP Operating Limited Partnership.

         "EOPT" shall mean Equity Office Properties Trust.

         "EOP Conflict" shall exist in respect of a proposed transaction which
falls within the scope of clauses (i) or (ii) of Section 6(c) if it shall be
determined by a committee of Independent Directors that

                  (i)      such proposed transaction could reasonably be
                           expected to materially diminish the value of any line
                           of business of EOP; or

                  (ii)     such transaction involves an entity in which EOP has
                           invested over $25 million and the transaction would
                           materially diminish the value of EOP's investment in
                           such entity.

         "Excess Cash Flow" shall mean, for any fiscal quarter of the
Corporation, the excess of

                           (a) the sum, without duplication, of (i) EBITDA for
                  such quarter, (ii) extraordinary gains or gains from sales of
                  assets, if any, of the Corporation or any of its consolidated
                  subsidiaries during such quarter and not included in
                  Consolidated Net Income; and (iii) reductions to non-cash
                  working capital of the Corporation and its consolidated
                  subsidiaries for such quarter, over

                                       22
<PAGE>   23

                           (b) the sum, without duplication, to the extent
                  funded from internally generated funds, of (i) the amount of
                  any cash income taxes payable by the Corporation and its
                  consolidated subsidiaries with respect to such quarter; (ii)
                  cash interest paid by the Corporation and its consolidated
                  subsidiaries during such quarter; (iii) Capital Expenditures
                  made in cash during such fiscal quarter; (iv) payments of
                  Indebtedness at maturity made by the Corporation and its
                  consolidated subsidiaries during such quarter; (v) optional
                  and mandatory prepayments of the principal of Indebtedness
                  (including any mandatory cash flow sweeps) made by the
                  Corporation and its consolidated subsidiaries during such
                  quarter; (vi) extraordinary cash losses from sales of assets,
                  if any, of the Corporation or any of its consolidated
                  subsidiaries during such quarter and not included in
                  Consolidated Net Income; and (vii) additions to noncash
                  working capital made by the Corporation and its consolidated
                  subsidiaries during such quarter.

         "FCG" shall have the meaning set forth in Section 6(c).

         "FTC" shall mean the United States Federal Trade Commission.

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

         "Fully-Diluted Basis" shall mean a basis which gives effect to the
issuance of Common Stock issuable upon conversion of the Series A Preferred or
upon exercise or conversion of any warrants, options or convertible securities
of the Corporation outstanding on August 11, 2000.

         "Governmental Entity" shall mean any federal, state, local or foreign
government or any court of competent jurisdiction, administrative agency or
commission or other governmental authority or instrumentality, domestic or
foreign, or any national securities or commodities exchange or other regulatory
or self-regulatory body or association.

         "HSR Act" shall mean the Hart-Scott-Rodino Antitrust Improvements Act
of 1976.

         "Independent Directors" shall mean all members of the Board of
Directors of the Corporation other than

         (A)      those members representing FCG or EOP;

         (B)      officers, directors, employees, consultants or partners of the
                  Corporation or any of their respective Affiliates;

         (C)      officers, directors, employees, consultants, partners or
                  material stockholders of FCG or any of their respective
                  Affiliates; or

         (D)      spouses, parents or lineal descendants of any such person or
                  entity referred to in the immediately preceding clauses (A)
                  through (C).

         "Indebtedness" of the Corporation and its consolidated subsidiaries
means (i) any indebtedness, whether or not contingent, in respect of borrowed
money evidenced by bonds,

                                       23
<PAGE>   24

notes, debentures or similar instruments, (ii) indebtedness secured by any
mortgage, pledge, lien, charge, encumbrance or any security interest existing
on the property of the Corporation or any of its consolidated subsidiaries,
(iii) any lease of property as lessee which would be reflected on the
Corporation's consolidated balance sheet as a capitalized lease in accordance
with generally accepted accounting principles, (iv) obligations, contingent or
otherwise, in connection with any letters of credit or similar facilities
actually issued, or amounts representing the balance deferred and unpaid of the
purchase price of any property in which the Corporation or any of its
consolidated subsidiaries has a firm, non-contingent purchase obligation, except
any such balance that constitutes an accrued expense or trade payable, (v) all
obligations of the Corporation and its consolidated subsidiaries in respect of
Swaps in the case of items of Indebtedness under (i) through (iv) above to the
extent that any such items (other than letters of credit) would appear as a
liability on the Corporation's consolidated balance sheet in accordance with
generally accepted accounting principles, and (v) any obligation to be liable
for, or to pay, as obligor, guarantor or otherwise (other than for purposes of
collection in the ordinary course of business), Indebtedness of another Person.

         "Investor" shall mean each of EOP Operating Limited Partnership,
Fortress HQ LLC, Stichting Pensioenfonds ABP, First Union Real Estate Equity and
Mortgage Investments, CIBC WMC Inc., CIBC Employee Private Equity Fund Partners,
AEW Targeted Securities Fund, L.P., AEW Targeted Securities Fund II, L.P.,
Blackacre Capital Partners L.P. and Paribas North America, Inc.

         "Liquidation" shall have the meaning set forth in Section 4(a).

         "Liquidation Amount" shall mean $40.772017 per share of Series A
Preferred and shall increase by the amount of the per share dividend declared
and paid on any Dividend Payment Date pursuant to Section 3(a).

         "Liquidation Preference" shall mean the amount equal to the Liquidation
Amount as of the relevant date, plus an amount equal to all unpaid dividends
accumulated to such relevant date, whether upon Liquidation, redemption or
conversion, as applicable.

         "Losses to Break Even on Development Properties" shall mean the amount
by which expenses exceed revenues during the period commencing with completion
of a development property and ending on the earlier of (i) the date on which
such property attains a 70% lease rate or (ii) 15 months from the completion
date of such property.

         "LTM Adjusted EBITDAR" shall mean the Adjusted EBITDAR of the
Corporation and its consolidated subsidiaries during the twelve-month period
ending on the first day of the month in which the Corporation agrees to issue
Consent Securities pursuant to Section 6(c)(vi).

         "LTM EBITDA" shall mean EBITDA of the Corporation and its consolidated
subsidiaries during the twelve-month period ending on the first day of the month
in which the Corporation or any subsidiary agrees to sell or acquire shares,
assets or a business pursuant to Section 6(c)(i).

         "Mandatory HSR Filing Date" shall mean (i) in the case of a conversion
pursuant to either Sections 7(a), (b), (d) or (e), five (5) Business Days
following the date on which the

                                       24
<PAGE>   25

Corporation shall receive notice from a holder of Series A Preferred regarding
its election to convert its Series A Preferred, and (ii) in the case of an
automatic conversion pursuant to Section 7(c), fifteen (15) Business Days
following the execution of the merger agreement or the initial filing of the
registration statement with the SEC relating to the Qualified Merger or
Qualified Initial Public Offering, as the case may be.

         "Mandatory Redemption Date" shall have the meaning set forth in Section
5(b).

         "Material Subsidiary" shall mean any subsidiary of the Corporation
representing 25% or more of the LTM EBITDA of the Corporation and its
consolidated subsidiaries.

         "Mid-Point Price" shall mean a dollar amount equal to the average of
the minimum and maximum offering prices established by the underwriters for the
offering of the Common Stock as set forth in the final preliminary prospectus
relating to the Qualified Initial Public Offering or such other initial public
offering of equity securities by the Corporation to be filed with the SEC.

         "New Security" shall have the meaning set forth in Section 7(j).

         "Options" shall have the meaning set forth in Section 7(b).

         "Option Limiting Percentage" shall mean 10.5% of the Corporation's
equity capitalization on a Fully-Diluted Basis less the percentage of such
equity capitalization that is attributable to warrants issued to the holders of
the Corporation's mezzanine or bridge debt (it being understood that in no case
shall the number of shares issued to employees pursuant to the Stock Option Plan
exceed 7.5% of the Corporation's equity capitalization on a Fully-Diluted
Basis).

         "Optional Redemption Date" shall have the meaning set forth in Section
5(d).

         "Optional Redemption Percentage" shall have the meaning set forth in
Section 5(a).

         "Organic Change" shall have the meaning set forth in Section 7(j).

         "Per Share Price" shall mean $40.772017.

         "Person" shall mean any natural person, corporation, partnership,
proprietorship, limited liability company, joint venture, trust, unincorporated
organization, other form of business or legal entity or any government or state
(or any subdivision thereof) of or in the United States or any foreign nation,
or any agency, authority, bureau, commission, department or similar body or
instrumentality thereof, or any governmental court or tribunal..

         "Preferred Stock" shall have the meaning set forth on page one herein.

         "Qualified Initial Public Offering" shall mean an initial public
offering of shares of equity securities of the Corporation where

                  (i)      the Mid-Point Price is not less than a percentage of
                           the Per Share Price which shall initially equal 110%
                           and which shall increase by 5 percentage

                                       25
<PAGE>   26

                           points on each anniversary date of May 31, 2000 until
                           May 31, 2004, in any case not to exceed 130%; and

                  (ii)     gross proceeds to the Corporation are equal to or
                           greater than $100 million.

         "Qualified Merger" shall mean any merger of the Corporation with
another entity the common stock or other equity interests of which are publicly
held, where

                  (i)      the common stock or other equity interests of the
                           surviving entity are publicly held,

                  (ii)     holders of the Common Stock have a right to receive
                           consideration for their shares in such merger and the
                           dollar value of the aggregate consideration per share
                           received in such merger by holders of the Common
                           Stock, calculated at the time of the consummation of
                           such merger, equals or exceeds a percentage of the
                           Per Share Price which shall initially equal 110% and
                           which shall increase by 5 percentage points on each
                           anniversary date of May 31, 2000 until May 31, 2004,
                           in any case not to exceed 130%, and

                  (iii)    the market capitalization of the surviving entity is
                           at least $100 million greater than the market
                           capitalization of the Corporation and its
                           subsidiaries immediately prior to such merger.

         "Redemption Default" shall have the meaning set forth in Section 9.

         "Redemption Election" shall have the meaning set forth in Section 8(a).

         "Redemption Election Payment Date" shall have the meaning set forth in
Section 8(a).

         "Rent" shall mean base rent, minimum rent, additional rent and any
other sums payable by the Corporation to lessors with respect to leases of real
property by the Corporation as lessee.

         "SEC" shall mean the United States Securities and Exchange Commission.

         "Series A Preferred" shall have the meaning set forth on page one
herein.

         "Special Dividend Amount" shall have the meaning set forth in Section
3(e).

         "Stock Option Plan" shall mean the Stock Option Plan adopted by the
Corporation during the fiscal year ended December 2000.

         "Swaps" shall mean payment obligations of the Corporation with respect
to interest rate swaps, currency swaps or similar obligations which are due upon
the termination thereof; provided, however, that if any agreement relating to a
Swap provides for the netting of amounts payable by and to the Corporation
thereunder or if any agreement provides for the simultaneous

                                       26
<PAGE>   27

payment of amounts by and to the Corporation, then in each case, the amount of
such obligation shall be the net amount determined to be due.

         "Tag-Along Conversion Date" shall have the meaning set forth in Section
7(e).

         "Tag-Along Right" shall have the meaning set forth in the Stockholders
Agreement, dated as of May 31, 2000, by and among FCG, the Corporation and the
Investors.

         "Transfer Agent" means American Stock Transfer & Trust Corporation, or
such other agent or agents of the Corporation as may be designated by the Board
of Directors of the Corporation or its designee as the transfer agent for the
Series A Preferred.

         "Trigger Event" shall have the meaning set forth in Section 7(b).

         "TRS" shall have the meaning set forth in Section 6(b).

(11) Determinations by the Board of Directors Conclusive.

         Any determination by the Board of Directors pursuant to the terms of
the Series A Preferred shall be final and binding upon the holders thereof and
shall be conclusive for all purposes.

FOURTH: The Series A Preferred has been classified and designated by the Board
of Directors under the authority contained in this Amended Certificate of
Designations.

FIFTH: This Amended Certificate of Designations has been approved by the Board
of Directors in the manner and by the vote required by law.

SIXTH: This Amended Certificate of Designations shall be effective upon filing
with the Secretary of State.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       27
<PAGE>   28

        IN WITNESS WHEREOF, HQ GLOBAL HOLDINGS, INC. has caused these presents
to be signed in its name and on its behalf by its President and Chief Operating
Officer and its corporate seal to be hereunto affixed and attested by its Vice
President, General Counsel and Secretary, and the said officers of the
Corporation further acknowledge said instrument to be the corporate act of the
Corporation, and state under the penalties of perjury that, to the best of their
knowledge, information and belief, the matters and facts therein set forth with
respect to approval are true in all material respects.

Dated:  August 11, 2000

                                        HQ GLOBAL HOLDINGS, INC.

                                            By:
                                               ---------------------------------
                                            Name:  David Rupert
                                            Title: President and Chief Operating
                                                   Officer

         [SEAL]

         ATTEST:

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

                                       28<PAGE>   1
                                                                    EXHIBIT 4.2

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

                  AMENDED AND RESTATED 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

                                August 11, 2000

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

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                        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.................................. 10
     3.1.     Information Rights of Holders............................. 10
     3.2.     Confidentiality........................................... 11

4.   TAX MATTERS........................................................ 11
     4.1.     Taxable REIT Subsidiary Election ......................... 11
     4.2.     Tenant Services/10% Voting Securities Test................ 12

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............................................ 16

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.............................................. 18
     7.1.     Right of First Offer; Right to Transfer................... 18
     7.2.     No Obligation to Purchase................................. 19
     7.3.     Termination............................................... 19

8.   MISCELLANEOUS...................................................... 19
     8.1.     No Contravening Agreement................................. 19
     8.2.     Assignment................................................ 19
     8.3.     Entire Agreement; Amendment............................... 19
     8.4.     Waiver.................................................... 19
     8.5.     Limitation on Benefit..................................... 20
     8.6.     Binding Effect............................................ 20
     8.7.     Governing Law............................................. 20
     8.8.     Notices................................................... 20
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>  <C>                                                                 <C>
     8.9.     Headings.................................................. 21
     8.10.    Execution in Counterparts................................. 22
     8.11.    Interpretation; Absence of Presumption.................... 22
     8.12.    Severability.............................................. 22
     8.13.    Specific Performance...................................... 22
     8.14.    Consent to Jurisdiction................................... 22
     8.15.    Litigation Costs.......................................... 23
</TABLE>

                                      ii
<PAGE>   4

                             STOCKHOLDERS AGREEMENT

                  THIS AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this
"Agreement"), dated as of August 11, 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
"Initial Transaction");

                  WHEREAS, FCG, the Company and the Holders have heretofore
entered into a Stockholders Agreement dated as of May 31, 2000 (the "Original
Stockholders Agreement");

                  WHEREAS, certain of the Holders have purchased or have been
issued, as the case may be, additional Series A Preferred and other securities
pursuant to separate Purchase Agreements, dated as of August 11, 2000, the
Written Consent and Waiver by the Holders of Series A Convertible Cumulative
Preferred Stock of the Company dated as of the date hereof (the "Written
Consent and Waiver"), and the Side Letter (as such term is defined in the
Written Consent and Waiver) (such transaction, together with the Initial
Transaction, the "Transaction");

                  WHEREAS, the parties believe it is in their best interests to
enter into this Agreement and provide for certain rights and restrictions with
respect to the continuing investment by each Holder in the Company and the
corporate governance of the Company;

                  WHEREAS, this Agreement amends and restates, in its entirety,
the Original Stockholders Agreement.

                  NOW, THEREFORE, in consideration of the premises and the
covenants and agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

1. DEFINITIONS

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

                  "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

                                       1
<PAGE>   5

                  (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% 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

                                       2
<PAGE>   6

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.

                                       3
<PAGE>   7

                  "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 Amended and
Restated 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

                                       4
<PAGE>   8

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.

                                       5
<PAGE>   9

                  "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

                                       6
<PAGE>   10

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

                                       7
<PAGE>   11

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

                                       8
<PAGE>   12

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

                  Notwithstanding 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.

                                       9
<PAGE>   13

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,

                                      10
<PAGE>   14

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

                                      11
<PAGE>   15

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

                                      12
<PAGE>   16

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 31, 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,

                                      13
<PAGE>   17

                  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"), 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

                                      14
<PAGE>   18

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

                                      15
<PAGE>   19

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

                                      16
<PAGE>   20

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.

                                      17
<PAGE>   21

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

                                      18
<PAGE>   22

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
66.67% 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

                                      19
<PAGE>   23

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

                                      20
<PAGE>   24

                           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.

                                      21
<PAGE>   25

         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.

                                      22
<PAGE>   26

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]

                                      23
<PAGE>   27

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

                         FRONTLINE CAPITAL GROUP

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

                         HOLDERS

                         EOP OPERATING LIMITED PARTNERSHIP

                         By: Equity Office Properties Trust, a Maryland Real
                             Estate Investment Trust, its general partner

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------
                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

                         FORTRESS HQ LLC

                         By:
                            ----------------------------------------------------
                         Name:
                              --------------------------------------------------
                         Title:
                               -------------------------------------------------
                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

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

                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

<PAGE>   28

                         STICHTING PENSIOENFONDS ABP

                         By: ABP Investments US Inc., as agent

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

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

                         CIBC WMC INC.

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

<PAGE>   29

                         CIBC EMPLOYEE PRIVATE EQUITY FUND PARTNERS

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

                         AEW TARGETED SECURITIES FUND, L.P.

                               By:  AEW TSF, L.L.C., its General Partner

                               By:  AEW TSF, Inc., its Managing Member

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

<PAGE>   30
                         AEW TARGETED SECURITIES FUND II, L.P.

                               By:  AEW TSF II, L.L.C., its General Partner

                               By:  AEW TSF, Inc., its Managing Member

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

                         BLACKACRE CAPITAL PARTNERS LP

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

                         PARIBAS NORTH AMERICA, INC.

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

                         Address for Notice
                                    (including facsimile number):
                                                                 ---------------

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

                                    --------------------------------------------
                         Number of Shares of Series A Preferred
                                    Owned of Record:
                                                    ----------------------------

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