Document:

Exhibit 10.1

                AMENDED AND RESTATED CASH PARTICIPATION AGREEMENT

            AMENDED AND RESTATED CASH PARTICIPATION AGREEMENT (this
"Agreement"), dated as of January 1, 2002, by and among Newkirk GP LLC (formerly
known as Brynmawr Associates LLC), a Delaware limited liability company
("Newkirk GP"), Newkirk Capital LLC (formerly known as Brynmawr Capital LLC), a
Delaware limited liability company ("Capital"), Newkirk RE Associates LLC, a
Delaware limited liability company ("Newkirk RE"), Newkirk Stock LLC, a Delaware
limited liability company ("Stock"), Newkirk Associates LLC, a Delaware limited
liability company ("Associates"), Vornado Realty L.P., a Delaware limited
partnership ("Vornado"), Vornado Newkirk L.L.C. , a Delaware limited liability
company ("Vornado Newkirk"), VNK Corp., a Delaware corporation ("VNK"), on the
one hand, and Administrator LLC, a Delaware limited liability company, as agent
("Administrator LLC") for itself and as agent for the persons listed on Schedule
A to this Agreement (collectively, the "Selling Group"), on the other.

            WHEREAS, certain of the parties hereto previously entered into that
certain Cash Participation Agreement, dated as of November 20, 1997, among
Newkirk GP, Capital and Administrator, as modified by that certain Assumption
Agreement, dated as of July 8, 1998 by Vornado, Vornado Newkirk, VNK,
Associates, Newkirk RE and Stock (collectively, the "Original Agreement"),

            WHEREAS, the Original Agreement was entered into as a condition to
the consummation of the transactions contemplated by that certain Purchase and
Sale Agreement, dated July 2, 1997 (as amended and supplemented, the "Purchase
Agreement"), between Apollo Real Estate Investment Fund II, L.P., a Delaware
limited partnership ("Fund II"), and the Selling Group pursuant to which it was
agreed that, among other things, (i) the Selling Group would sell or cause to be
sold the Newkirk Assets (as defined below) to Fund II and (ii) Fund II and/or
its permitted assigns would cause a loan to be made to the Selling Group or its
designees in the original principal amount of $40,000,000, all on the terms, and
subject to the conditions, set forth in the Purchase Agreement;

            WHEREAS, Fund II assigned all its right, title and interest in and
to the Purchase Agreement to Apollo Real Estate Investment Fund III, L.P., a
Delaware limited partnership ("Fund III, and together with Fund II, the
"Funds"), and Fund III assumed all duties, obligations and liabilities of Fund
II under the Purchase Agreement;

            WHEREAS, certain indirect subsidiaries of Fund III were assigned the
right to acquire the Newkirk Assets from the Selling Group and assumed, all
duties, obligations and liabilities in connection therewith;

            WHEREAS, pursuant to the Purchase Agreement, part of the
consideration payable on account of the sale of the Newkirk Assets consisted of
a participation in certain of the revenues of the Brynmawr Entities (as defined
below), the Funds and their respective Affiliates (as defined below), and
certain of the parties hereto entered into the Original Agreement to provide for
the terms of such participation;
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            WHEREAS, certain of the Brynmawr Entities and/or their respective
Affiliates desire to enter into a transaction (the "Transaction") pursuant to
which certain of the assets of the Brynmawr Entities and/or their respective
Affiliates will be transferred to or merged into The Newkirk Master Limited
Partnership (the "Master Limited Partnership"), a newly-formed Delaware limited
partnership, all as more fully described in that certain Consent Solicitation
Statement/Offering Circular dated October 23, 2001, a copy of which is attached
hereto as Exhibit A (the "Consent Solicitation");

            WHEREAS, simultaneously herewith the parties hereto are entering
into that certain Agreement (the "Transaction Agreement") pursuant to which they
agreed, among other things, to amend and restate the Original Agreement;

            NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties do hereby agree to amend
and restate the Original Agreement in its entirety as follows:

            1. Definitions.

                  For purposes of this Agreement, the following terms shall have
the following meanings:

                  "Acceleration Premium" has the meaning ascribed thereto in the
Loan Agreement.

                  "Actual Transfer" means with respect to any Person or asset,
the transfer, sale, distribution or conveyance of that Person or asset to any
Person, and shall include, without limitation, the following: (i) the grant of
any Acquisition Right with respect to that Person or asset, or (ii) the issuance
of any Convertible Security with respect to that Person or asset or (iii) any
transaction or series of transactions having the effect, directly or indirectly,
of a transfer, sale, distribution or conveyance of that Person or asset,
including without limitation by way of a merger (straight, reverse or other),
consolidation, operation of law, a transfer of ownership interests (including
without limitation partnership interest, stock, or other beneficial or equitable
rights conveying an ownership interest or claim), a grant or receipt of options
or other rights to acquire, sell or use assets, in each case whether
accomplished directly or indirectly.

                  "Acquisition Financing" means any borrowings of any
Outside-the-Box Entity used to finance the payment of any obligation to pay
money to the Selling Group or its designees under any Transaction Document, any
Additional Capital Contribution or otherwise. The parties hereby acknowledge and
agree that, for purposes of this Agreement, the amount of any Acquisition
Financing shall first reduce the amount of the Apollo Capital Account until it
is zero and at all other times shall be included as an addition in the
computation of Available Cash Flow; the amount of any payment of principal or
interest on any Acquisition Financing shall at all times be included as a
deduction in the computation of Available Cash Flow.

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                  "Acquisition Right" means, with respect to any Person or
asset, any right (contingent or fixed, matured or unmatured, or otherwise) to
acquire that Person or asset for consideration other than cash in an amount
which is equal to or in excess of the fair market value thereof at the time of
the exercise of such right. Any consideration given for an Acquisition Right
shall, subject to Section 6.b of this Agreement, be included within Available
Cash Flow at the time it is given; any consideration given upon the exercise of
an Acquisition Right shall, subject to Section 6.b of this Agreement, be
included within Available Cash Flow at the time it is given.

                  "Additional Capital Contributions" means, subject to Section
2.b of this Agreement, any additional capital contributions or other advances
made by an Outside-the-Box Entity (including, without limitation, the
Acceleration Premium and any out-of-pocket costs incurred by the Outside-the-Box
Entities (such as legal costs, financing costs and due diligence costs)), the
proceeds of which are paid to unaffiliated third parties on an arm's length
basis (either by an Outside-the-Box Entity directly or by an Inside-the-Box
Entity to which such capital contribution or other advance is directly or
indirectly made) from the funds of the Outside-the-Box Entity and not from other
funds of any Inside-the-Box Entity (including without limitation any Net Lease
Partnership or a general partner thereof), provided that such additional capital
contributions or other advances shall constitute Additional Capital
Contributions only to the extent they are made for use by or to benefit or
otherwise with respect to Newkirk Assets that are not Section 6b(i) Transfer
Assets and not to the extent they are made for use by or to benefit or otherwise
with respect to Section 6b(i) Transfer Assets or other Non-Newkirk Assets.
Notwithstanding anything to the contrary in this Agreement, in no event shall an
item that is included within Additional Capital Contributions be included as an
expense under clause (4)(y) of the definition of Available Cash Flow, or vice
versa.

                  "Administrator LLC" has the meaning set forth in the recitals
to this Agreement.

                  "Affiliate" has the meaning ascribed thereto by (A) Rule 405
promulgated under the Securities Act of 1933, as amended, except that ownership
of more than 10% of the voting securities of, or more than 10% of the economic
rights in, any Person shall conclusively be deemed to make that Person an
Affiliate, and (B) if there is a lesser threshold for a Person to be deemed an
"Affiliate" of another under the common law of the State of New York, then the
common law of the State of New York. Without limiting the foregoing, for
purposes of this definition, the ownership of any debt, equity, right(s) or
other interest(s) that either (i) is convertible into, or otherwise grants the
right to acquire, voting securities or economic rights for consideration other
than cash in an amount equal to or in excess of the fair market value thereof at
the time of such conversion or acquisition or (ii) grants upon the owner rights
that are substantially similar to those conferred by voting securities
(including, without limitation, equity participations) or economic rights shall
constitute ownership of voting securities or economic rights. For purposes of
this definition, the "Affiliates" of a Brynmawr Entity or any of their
respective Affiliates (x) shall, with respect to any Actual Transfer, include
any Person that would become an Affiliate of a Brynmawr Entity or any of their
respective Affiliates as a result of that Actual Transfer and (y) shall include
the general partner of the Master Limited Partnership. In the event of an Actual
Transfer of any Brynmawr Entity, entities that were Affiliates of a Brynmawr
Entity prior to such Actual Transfer shall remain Affiliates of a Brynmawr
Entity after such Actual Transfer (regardless of whether they would then
otherwise meet the definition of "Affiliate") for purposes of this Agreement
only.

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                  "Applicable Marginal Rate" means, at any given time, the
highest marginal tax rate for individuals under applicable federal, state and
local tax laws, assuming that the applicable tax payer(s) are residents of the
City of New York and taking into account, to the extent permitted under
applicable law, any deduction of state and local taxes from federal taxes (such
deductions being determined without regard to the limitations set forth in
section 68 of the Internal Revenue Code of 1986, as amended).

                  "Apollo Capital Account" means

      (1) as of the day immediately following the date of consummation of the
transactions contemplated by the Transaction Agreement (herein called the "MLP
Closing Date"), an amount determined as follows: (A) $349,227,849, reduced by
(B) any Available Cash Flow (as defined in the Original Agreement) received or
deemed to have been received by the Brynmawr Entities or their Affiliates from
time to time during the period from July 1, 2001 through and including the MLP
Closing Date pursuant to Section 2.a.i. of the Original Agreement, increased by
(C) interest on the amount of such difference, from time to time, at a rate
equal to twelve percent (12%) per annum, compounded quarterly, from July 1, 2001
through and including the MLP Closing Date, and (D) reduced by $108,498,927,
and,

      (2) from time to time after the MLP Closing Date, the amount of the Apollo
Capital Account shall be (A) increased by (i) the amount of any Additional
Capital Contributions made (provided that no Additional Capital Contributions
shall have been made after June 30, 2001 and prior to the day after the MLP
Closing Date), (ii) any amount to be included as an addition to the Apollo
Capital Account pursuant to Section 2.b.i., and (iii) interest at a rate equal
to twelve percent (12%) per annum, compounded quarterly, using the same
methodology and conventions used in calculating the Apollo Capital Account
balance prior to the MLP Closing Date, and (B) decreased by (i) any Acquisition
Financing and (ii) any Available Cash Flow received or deemed to have been
received by the Brynmawr Entities pursuant to Section 2.a.i of this Agreement.

                  "Associates" has the meaning set forth in the recitals to this
Agreement.

                  "Available Cash Flow" means, without duplication, the
following,

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      (1) the Brynmawr Entities Allocable Percentage of any amounts (whether
cash or other assets) invested , loaned or otherwise expended, directly or
indirectly, by the Master Limited Partnership or any Inside-the-Box Entity in or
in respect of a Non-Newkirk Asset (and for this purpose, by way of illustration
and not limitation, an investment into a Newkirk Asset such as a Net Lease
Partnership shall be deemed to be Available Cash Flow to the extent such Newkirk
Asset subsequently makes an investment into a Non-Newkirk Asset;

      (2) all cash, and the fair market value of non-cash rights or benefits
received by an Outside-the-Box Entity from the Actual Transfer of all or any
portion of an interest in Master Limited Partnership (other than an Actual
Transfer described in Section 6.c.);

      (3) the Brynmawr Entities Allocable Percentage of all interest and other
earnings earned on funds in excess of $60,000,000 in the aggregate held by all
Inside-the-Box Entities (whether or not such interest or other earnings are
distributed); and

      (4) to the extent that it directly or indirectly is generated by or
otherwise relates to any of the Newkirk Assets, the Net Lease Partnerships, the
Master Limited Partnership, any Property, or any direct or indirect interest of
any nature whatsoever in any of the foregoing, 77.14% of the aggregate of the
following:

            (x) all cash, and the fair market value of non-cash rights or
      benefits, direct or indirect, each from any source (including without
      limitation from the Master Limited Partnership) derived by any
      Outside-the-Box Entity (including, but not limited to, (i) any partnership
      servicing fees, (ii) any asset management fees, (iii) any interest or
      other revenue spread inuring to the benefit of any Outside-the-Box Entity
      in connection with a mortgage refinancing, (iv) any fees or proceeds from
      the sale or refinancing of any assets, (v) any securities and/or direct or
      indirect profit sharing or other participation interests, and (vi) any
      other direct or indirect benefits received by any Outside-the-Box Entity
      in any transaction relating to the tender for, investment in, transfer of,
      mortgaging, financing, rights offering or other action with respect to,
      all or any interest in (A) any of the Newkirk Assets, (B) any Net Lease
      Partnership, any limited partnership interest therein or any other
      interest therein (whether debt or equity), (C) any Inside-the-Box Entity,
      or (D) any entity that enters into a transaction with or with respect to
      any of the foregoing (including, without limitation, any direct or
      indirect acquisition of indebtedness that is secured by a first mortgage
      or a second mortgage on any Property or any direct or indirect interest in
      such indebtedness), but specifically excluding (vii) any Acquisition
      Financing), and any reduction in reserves,

            less

            (y) all payments by any Outside-the-Box Entity of principal and
      interest on indebtedness or borrowings (including, without limitation,
      Acquisition Financing), but

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<PAGE>

      only to the extent that the proceeds thereof (it being agreed that any
      such payments on account of Acquisition Financing shall be included) were
      included in Available Cash Flow, and expenses that are paid to
      unaffiliated third parties by an Outside-the-Box Entity (including,
      without limitation, any out-of-pocket costs incurred by any
      Outside-the-Box Entity (such as legal costs, financing costs and due
      diligence costs) that are paid to unaffiliated third parties on an
      arm's-length basis by an Outside-the-Box Entity from their own funds and
      not from the funds of any Inside-the-Box Entity or any general partner of
      any such Net Lease Partnership (including, without limitation, expenses
      incurred in connection with a transaction of the type described in clause
      (vi) of clause (x) above)), except that expenses with respect to clauses
      (i) and (ii) of clause (x) above shall not be deducted;

provided, however, that (I) 100% of all such cash, and the fair market value of
non-cash rights or benefits, direct or indirect, derived by an Outside-the-Box
Entity on account of any Additional Capital Contributions (including, without
limitation, distributions on account of interests in the Master Limited
Partnership received in exchange for Additional Capital Contributions and
payments of principal and/or interest on advances to the Master Limited
Partnership which constitute Additional Capital Contributions) shall be included
in Available Cash Flow, and (II) 0% of all such cash, and the fair market value
of non-cash rights or benefits, direct or indirect, derived by an
Outside-the-Box Entity on account of any additional capital contributions or
other advances which are not Additional Capital Contributions shall be included
in Available Cash Flow; provided further, however, that to the extent that
interests in the Master Limited Partnership or any other entity (whether equity,
debt or otherwise) that are received on account of assets described in clause
(II) of the foregoing proviso are effectively entitled to a return that has
priority or preference over the return to which corresponding interests in the
Master Limited Partnership or such other entity that are received on account of
assets described in clause (I) of such proviso or any other corresponding
interests in the Master Limited Partnership or any other entity are effectively
entitled, the percentages set forth in such proviso shall be equitably adjusted
so as to effectively neutralize the benefit of such priority or preference.

                  "Brynmawr Entities" shall mean VNK, Vornado, Vornado Newkirk,
Newkirk RE, Capital, Newkirk GP, Associates and Finco.

                  "Brynmawr Entities' Allocable Percentage" means the ownership
percentage of the Outside-the-Box Entities in the Master Limited Partnership,
which shall initially be 75.72 %.

                  "Capital" has the meaning set forth in the recitals to this
Agreement.

                  "Capital Pledge and Security Agreement" means that certain
Pledge Agreement, dated November 20, 1997, by Capital in favor of Administrator,
for itself and as agent for the Selling Group.

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<PAGE>

                  "Cash Participation Documents" has the meaning set forth in
Section 7.a. of this Agreement.

                  "Cash Purchase Participation Cap" means TWENTY EIGHT MILLION
($28,000,000) DOLLARS.

                  "Closing" means the consummation of the transactions
contemplated by the Purchase Agreement.

                  "Closing Agendas" means the closing agendas prepared by
Proskauer Rose LLP in connection with the consummation of the transactions
contemplated by the Purchase Agreement.

                  "Confidential Information" has the meaning set forth in
Section 5.c. of this Agreement.

                  "Convertible Security" means, with respect to any Person or
asset, any debt, equity, right or other interest that either (A) is convertible
into, or otherwise grants the right to acquire, an equity interest in that
Person or ownership of those assets for consideration other than cash in an
amount which is equal to or in excess of the fair market value thereof at the
time of such conversion or acquisition or (B) grants upon the owner rights that
are substantially similar to those conferred by an equity interest in that
Person or ownership of those assets (including, without limitation, equity
participations). Any consideration given for a Convertible Security shall,
subject to Section 6.b of this Agreement, be included within Available Cash Flow
at the time it is given; any consideration given upon the conversion of an
Acquisition Security or the other acquisition of the applicable Person or asset
shall, subject to Section 6.b of this Agreement, be included within Available
Cash Flow at the time it is given.

                  "Finco" means Newkirk Finco LLC, a Delaware limited liability
company (formerly known as Brynmawr Finco LLC).

                  "Finco Pledge Agreement" means that certain Pledge Agreement,
dated November 20, 1997, by of Administrator LLC, for itself and as agent for
the Selling Group, in favor of Finco.

                  "Fund II" has the meaning set forth in the recitals to this
Agreement.

                  "Fund III" has the meaning set forth in the recitals to this
Agreement.

                  "Fund III Pledge Agreement" means that certain Pledge
Agreement, dated November 20, 1997, by Fund III in favor of Administrator LLC,
for itself and as agent for the Selling Group.

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<PAGE>

                  "Funds" has the meaning set forth in the recitals to this
Agreement.

                  "Future Financing Agreement" means that certain Future
Financing Agreement, dated November 20, 1997, by and among, Fund III, Holdings,
Newkirk GP, Capital, Finco, and Administrator LLC, for itself and as agent for
the Selling Group, setting forth the terms and conditions upon which certain
security interests granted pursuant to the Pledge Agreements may be
subordinated.

                  "GAAP" means generally accepted accounting principles as
defined by the United States Financial Accounting Standards Board as from time
to time in effect, consistently applied (taking into account, however, any
change that, from time to time, may be made in such principles by the United
States Financial Accounting Standards Board).

                  "Guaranty Agreement" means, collectively, (i) the Guaranty
Agreement, dated November 20, 1997, by and among Fund II, Fund III, Holdings,
Newkirk GP, Jess, SkiKid, Sue, Capital, Finco, for the benefit of Administrator
LLC, for itself and as agent, and the Selling Group and (ii) the Guaranty
Agreement, dated as of June 30, 1998, by Newkirk RE and Administrator LLC.

                  "Holdings" means Newkirk NL Holdings LLC, a Delaware limited
liability company.

                  "Holdings I Pledge Agreement" means that certain Pledge
Agreement, dated November 20, 1997, by Holdings in favor of Administrator LLC,
for itself and as agent for the Selling Group, as modified by (i) that certain
Assumption Agreement, dated July 8, 1998, by and Associates, (ii) that certain
Assumption and Ratification Agreement, dated January 1, 2000, by and among
Holdings, Stock and Associates, and (iii) that certain Assumption Agreement,
dated as of the date hereof by the Master Limited Partnership.

                  "Holdings II Pledge Agreement" means that certain Pledge
Agreement, dated as of the date hereof, by Holdings in favor of Administrator
LLC, for itself and as agent for the Selling Group, providing for the pledge of
certain limited partnership interests of the Master Limited Partnership owned by
Holdings.

                  "Inside-the-Box Entity" means Master Limited Partnership and
any Affiliate of Master Limited Partnership that is controlled by Master Limited
Partnership (with control having the meaning ascribed thereto in Rule 405
promulgated under the Securities Act of 1933, as amended).

                  "Jess" means Jess LLC, a Delaware limited liability company.

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                  "Jess Pledge Agreement" means that certain Pledge Agreement,
dated November 20, 1997, by Jess in favor of Administrator LLC, for itself and
as agent for the Selling Group.

                  "Loan Agreement" means that certain Loan Agreement, dated
November 20, 1997, by and between Finco and Administrator LLC pursuant to which,
among other things, the Newkirk Loan was made to Administrator LLC, as the same
may have been or may be amended from time to time.

                  "LP Collateral" has the meaning set forth in Section 4.b.ii.
of this Agreement.

                  "Management Agreement" means any Partnership Administration
Agreement or Brokerage, Consulting and Financial Advisory Agreement between any
Net Lease Partnership or the Master Limited Partnership and Capital (as
successor-in-interest to Newkirk) in effect on November 20, 1997, as the same
may be amended from time to time in accordance with the Transaction Documents.

                  "Master Limited Partnership" means The Newkirk Master Limited
Partnership, a Delaware limited partnership.

                  "MLP Pledge Agreement" means that certain Pledge Agreement,
dated the date hereof, by the Master Limited Partnership in favor of
Administrator LLC, for itself and as agent for the Selling Group.

                  "Net Lease Partnership" means any of the partnerships listed
on Schedule B annexed hereto.

                  "Newkirk" means Newkirk Limited Partnership, a Delaware
limited partnership that, simultaneously herewith, is being merged with and into
Capital.

                  "Newkirk Assets" means (i) the controlling interest that is
described in the Purchase Agreement in certain general partners of the Net Lease
Partnerships, and (ii) all of the assets, subject to all of the liabilities
reflected on Schedule C annexed hereto, of Newkirk, including the Management
Agreements and any deferred fees with respect thereto, subject to all
liabilities associated therewith.

                  "Newkirk Cash Participation" means the amount of the Cash
Participation evidenced by the Cash Participation Instruments described in
Sections 3.a.iii and 3.a.iv.

                  "Newkirk GP Pledge Agreement" means that certain Pledge
Agreement, dated November 20, 1997, by Brynmawr Associates LLC (predecessor of
Newkirk GP) in favor of Administrator LLC, for itself and as agent for the
Selling Group.

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                  "Newkirk Loan" means the loan, in the original principal
amount of $40,000,000, made contemporaneously with the Original Agreement by
Finco to Administrator LLC, pursuant to the Loan Agreement.

                  "Newkirk RE Holdings Pledge Agreement" means that certain
Pledge Agreement, dated as of June 30, 1998, by Newkirk RE Holdings LLC in favor
of Administrator LLC, for itself and as agent for the Selling Group.

                  "Non-Newkirk Asset" means any asset other than a Newkirk
Asset.

                  "NLP Cash Participation" means the amount of the Cash
Participation evidenced by the Cash Participation Instruments described in
Sections 3.a.i and 3.a.ii.

                  "Option Agreement" means that certain Put-Call Option
Agreement, dated as of January 1, 2002, among Master Limited Partnership, NK-CR
Holdings LLC and Holdings Subsidiary LLC, in the form attached hereto as Exhibit
B (regardless of whether such form is actually executed or is later amended).

                  "Outside-the-Box Entity" means any Brynmawr Entity or any
Affiliate of any Brynmawr Entity, that in each case is not an Inside-the-Box
Entity.

                  "Person" means any individual, general partnership, limited
partnership, limited liability company, trust, estate, association, corporation,
or other legal or commercial entity.

                  "Pledge Agreements" means the Newkirk GP Pledge Agreement, the
Newkirk RE Holdings Pledge Agreement, the MLP Pledge Agreement, Jess Pledge
Agreement, the SkiKid Pledge Agreement, the Sue Pledge Agreement, the Capital
Pledge and Security Agreement, the Fund III Pledge Agreement, the WEM-Brynmawr
Pledge Agreement, and the Holdings I Pledge Agreement, the Holding II Pledge
Agreement and the VNK Pledge Agreement.

                  "Post-Closing Adjustment Agreement" means that certain
Post-Closing Adjustment Agreement, dated November 20, 1997, by and among Newkirk
GP, Capital and Administrator LLC, as agent for the Selling Group.

                  "Property" means any property (real, personal or otherwise) of
any Net Lease Partnership, the Master Limited Partnership or an Inside-the-Box
Entity.

                  "Purchase Agreement" has the meaning set forth in recitals to
this Agreement.

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                  "Purchase Price" means the cash purchase price being paid by
or on behalf of the Brynmawr Entities in connection with their acquisition of
the Newkirk Assets, pursuant to the Purchase Agreement (i.e., $30,000,000).

                  "Section 6b(i) Transfer Asset" has the meaning set forth in
the Transaction Agreement.

                  "Selling Group" has the meaning set forth in the recitals to
this Agreement.

                  "SkiKid" means SkiKid LLC, a Delaware limited liability
company.

                  "SkiKid Pledge Agreement" means that certain Pledge Agreement,
dated November 20, 1997, by SkiKid in favor of Administrator LLC, for itself and
as agent of the Selling Group.

                  "Sue" means Sue LLC, a Delaware limited liability company.

                  "Sue Pledge Agreement" means that certain Pledge Agreement,
dated November 20, 1997, by Sue in favor of Administrator LLC, for itself and as
agent of the Selling Group.

                  "Transaction" has the meaning set forth in the recitals to
this Agreement.

                  "Transaction Agreement" has the meaning set forth in the
recitals to this Agreement.

                  "Transaction Documents" means the agreements, instruments and
other documents marked as "Transaction Documents" on the final Closing Agendas,
together with all amendments, modifications, supplements and extensions thereto
and all other agreements, instruments or other documents executed after
November, 1997 in connection therewith, and the Transaction Agreement, together
with all amendments, modifications, supplements and extensions thereto and all
other agreements, instruments or other documents executed in connection
therewith.

                  "VNK Pledge Agreement" means (i) that certain Pledge
Agreement, dated as of the date hereof, by VNK in favor of Administrator LLC,
for itself and as agent for the Selling Group, providing for the pledge of
certain limited partnership interests of the Master Limited Partnership owned by
VNK, and (ii) that certain Pledge Agreement, dated as of the date hereof, by
Vornado Newkirk in favor of Administrator LLC, for itself and as agent for the
Selling Group, providing for the pledge of certain limited partnership interests
of The Master Limited Partnership owned by Vornado Newkirk.

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<PAGE>

                  "WEM-Brynmawr Pledge Agreement" means that certain Pledge
Agreement, dated November 20, 1997, by WEM-Brynmawr Associates, LLC in favor of
Administrator LLC, for itself and as agent for the Selling Group.

            2. Cash Participation.

                  a. Cash Participation. The Brynmawr Entities shall pay or
cause to be paid to Administrator LLC the aggregate amount of the cash
participation payments to be paid to Administrator LLC pursuant to this
Agreement (the "Cash Participation"). The Cash Participation shall be determined
from time to time as follows:

                        i. First, the Outside-the-Box Entities will receive 100%
      of all Available Cash Flow until the Apollo Capital Account has been
      reduced to $0, it being agreed and understood that, for purposes of this
      Agreement, any cash and the fair market value of non-cash rights or
      benefits, direct or indirect, specified in the definition of Available
      Cash Flow, received directly or indirectly by any Outside-the-Box Entity
      shall be deemed to have been received by such entity on the date each such
      item is first available directly or indirectly to any such Outside-the-Box
      Entity; provided, however, that (i) any cash or non-cash rights or
      benefits that would otherwise be included as Available Cash Flow, but that
      continue to be held by an Inside-the-Box Entity, shall not be deemed to
      have been received (indirectly or otherwise) by an Outside-the-Box Entity
      (a) unless such cash or non-cash rights or benefits shall have been
      distributed or otherwise paid, directly or indirectly, to any holder of
      equity in any Inside-the-Box Entity in its capacity or status as a holder
      of equity (which holder of equity is not an Affiliate of the Brynmawr
      Entities) without proportionate distributions or other payments being made
      to any Outside-the-Box Entity or Inside-the-Box Entity, as appropriate, in
      which case the Outside-the-Box Entities shall be deemed to have received
      their proportionate distributions or other payments on the date of such
      earlier distribution or other payment and (b) except that the Brynmawr
      Entities Allocable Percentage of any interest or other earnings earned on
      funds in excess of $60,000,000 in the aggregate held by all Inside-the-Box
      Entities shall, when earned, be deemed to have been received by the
      Outside-the-Box Entities (whether or not in fact so received), and (ii)
      the Brynmawr Entities' Allocable Percentage of any amount of investment,
      loan or expense contemplated by clause 1 of the definition of Available
      Cash Flow shall be deemed to have been received by the Outside-the-Box
      Entities when made and any revenues generated and/or expenses paid for or
      in respect of any such investment, loan or expense shall be disregarded in
      the calculation of Available Cash Flow;

                        ii. Second, Administrator LLC shall receive 100% of all
      Available Cash Flow until Administrator LLC has received the aggregate
      amount of the Cash Purchase Participation Cap; and

                                       12
<PAGE>

                        iii. Thereafter, the Brynmawr Entities shall receive
      100% of Available Cash Flow.

                  b. Additional Capital Contributions.

                        i. Taxes. For purposes of section 2.a, any federal,
      state or local taxes to be paid by any of the Outside-the-Box Entities on
      accrued but unpaid interest (and not for interest actually or deemed paid
      to the Brynmawr Entities and/or their Affiliates) with respect to the
      Newkirk Loan shall, as and when payable, be accounted for as an addition
      to the Apollo Capital Account. For purposes of this section 2.b.i, it
      shall be assumed that the Outside-the-Box Entities pay taxes at the
      Applicable Marginal Rate.

                        ii. Phantom Income. For purposes of section 2.a, any
      federal, state or local taxes to be paid by any of the Outside-the-Box
      Entities on account of taxable income with respect to income that is not
      actually received by the Outside-the-Box Entities, shall not, except as
      set forth in Section 2.b.i., be included in the computation of Available
      Cash Flow as an expense and shall not be accounted for as an addition to
      the Apollo Capital Account.

                        iii. Payments on Account of Cash Participation. For
      purposes of section 2.a above, payments made to Administrator LLC on
      account of the Cash Participation shall not be included in the computation
      of Available Cash Flow as an expense and shall not be accounted for as an
      addition to the Apollo Capital Account.

                  c. [INTENTIONALLY OMITTED]

                  d. Payment of Cash Participation.

                        i. Estimated Payment. No later than the end of each
      calendar quarter, the Brynmawr Entities shall pay or cause to be paid any
      amount that they reasonably and in good faith estimate to have then
      accrued and remained unpaid in respect of the Cash Participation (an
      "Estimated Quarterly Payment"). Simultaneously with the making of any
      Estimated Quarterly Payment, the Brynmawr Entities shall send
      Administrator LLC supporting documentation showing in reasonable detail
      the computation of the amount of the Estimated Quarterly Payment.

                        ii. Adjustment of Estimated Payment. No later than April
      30 of any calendar year, the Brynmawr Entities shall send Administrator
      LLC its computation of the actual amount that was accrued and remained
      unpaid as of the end of the preceding calendar year (an "Actual Annual
      Payment"), setting forth in reasonable detail the basis for the
      computation of the Actual Annual Payment and the reasons for any
      adjustment in the amount of the Estimated Quarterly Payments made in the
      aggregate in respect of such calendar year. If the Actual Annual Payment
      in respect of any calendar year exceeds the sum of the Estimated Quarterly
      Payments made in respect of such calendar year, then the Brynmawr Entities
      shall pay or cause to be paid the amount of such excess simultaneously
      with the communication to Administrator LLC of the Actual Annual Payment.
      If the sum of the Estimated Quarterly Payments made in respect of a
      calendar year exceed the Actual Annual Payment for such year, then the
      amount of such excess shall be reimbursed to a Brynmawr Entity by
      Administrator LLC no later than thirty (30) days after the communication
      to Administrator LLC of the Actual Annual Payment.

                                       13
<PAGE>

                        iii. Method of Payment. Any payment to be made in
      respect of the Cash Participation shall be made in immediately available
      funds, by wire transfer or certified bank check, to Proskauer Rose LLP, as
      escrow agent for the Selling Group, and shall be deemed made upon receipt
      by Proskauer Rose LLP. Administrator LLC may from time to time change the
      person or entity to whom any such payment is to be made. If the Brynmawr
      Entities shall fail to pay any amount with respect to the Cash
      Participation when due, the amount of such underpayment shall bear
      interest at the rate, and there shall be a late charge in the amount, set
      forth in the Cash Participation Instruments.

                  e. Mandatory Payment of Cash Purchase Participation Cap. To
      the extent that Administrator LLC has not then been paid the full amount
      of the Cash Purchase Participation Cap, the Brynmawr Entities shall pay to
      Administrator LLC an amount equal to the Cash Purchase Participation Cap
      less all amounts theretofore paid to Administrator LLC under Section 2 of
      this Agreement (and not otherwise reimbursed under the last sentence of
      Section 2.d.ii.) on the earlier to occur of (1) 120 days following the
      date on which the Master Limited Partnership becomes "public", or any
      Brynmawr Entity or any other Affiliate thereof whose direct or indirect
      interest in the assets which give rise to or are otherwise taken into
      account in determining Available Cash Flow constitutes 75% or more of such
      entity's total value and that is not "public" on the date hereof becomes
      "public", or (2) January 15, 2009. As used herein, any entity shall be
      "public" if its securities are listed for trading on a securities exchange
      (including, without limitation, the New York Stock Exchange, the American
      Stock Exchange, NASDAQ, NASDAQ Small Cap, London Stock Exchange, Tokyo
      Stock Exchange, or Paris Stock Exchange). Nothing contained in this
      Section shall impair the applicability of Section 6 to any Actual Transfer
      of Control Assets to any Brynmawr Entity or any of its Affiliates.

            3. Issuance of Cash Participation Instruments.

                  a. Issuance of Instruments. The Brynmawr Entities' obligations
      to pay the Cash Participation are evidenced by instruments in the form
      annexed hereto as Exhibit C("Cash Participation Instrument(s)").

                                       14
<PAGE>

                  b. Issuance of Replacement Instruments. All Cash Participation
Instruments issued pursuant to this Agreement have been and shall be
sequentially numbered. The Brynmawr Entities hereby agree to issue such
replacement Cash Participation Instruments in such denominations and to such
persons or entities as Administrator LLC may from time to time request, at no
cost or expense to Administrator LLC. The issuance of any such replacement Cash
Participation Instruments shall be made promptly upon either the surrender to a
Brynmawr Entity of the Cash Participation Instrument(s) to be replaced or a loss
affidavit substantially in the form and substance annexed hereto as Exhibit D(an
"Acceptable Loss Affidavit").

                  c. Aggregate Amount of Outstanding Instruments. At no time
shall there be issued and outstanding Cash Participation Instruments in excess
of the Cash Participation Cap.

            4. Computation of Available Cash Flow.

                  a. General. For purposes of computing Available Cash Flow, any
non-cash right or benefit or other non-cash item to be included in Available
Cash Flow shall be ascribed its fair market value. The fair market value shall
be determined on a net present value basis and any dispute as to such fair
market value shall be conclusively resolved by arbitration in accordance with
Section 7 of this Agreement.

                  b. Excluded Items.

                        i. Voting Rights in Net Lease Partnerships and the
      Master Limited Partnership. If at any time a Brynmawr Entity or any of
      their Affiliates acquires any rights to vote any limited partnership
      interest in any Net Lease Partnership or the Master Limited Partnership (a
      "Voting Right"), there shall not be included in Available Cash Flow the
      fair market value of that Voting Right at the time of such acquisition.

                  c. Certain Excluded Expenses. Notwithstanding anything to the
contrary in this Agreement, no expense incurred in connection with the defense
of any claim by Administrator LLC and/or the Selling Group shall be deducted in
calculating of Available Cash Flow if the Administrator LLC and/or the Selling
Group, as the case may be, prevails upon the claim.

            5. Information to be Provided.

                  a. Financial Information.

                        i. Quarterly Information. The Brynmawr Entities shall
      provide (or cause to be provided to) Administrator LLC, within forty-five
      (45) days after the end of each calendar quarter, a summary description of

                                       15
<PAGE>

      all items that are included within the computation of Available Cash Flow
      (including, without limitation, borrowings included therein) and amounts
      owing or not owing, as the case may be, to Administrator LLC on account of
      the Cash Participation for the preceding calendar quarter and all
      information (to the extent that it is in the possession, or under the
      control, of the Brynmawr Entities and/or their Affiliates) relating to all
      cash and non-cash rights or benefits directly or indirectly received by
      the Brynmawr Entities and/or their Affiliates during the preceding
      calendar quarter that relate directly or indirectly to: (A) the Newkirk
      Assets, (B) Capital, (C) the Net Lease Partnerships, (D) the Properties,
      (E) the Master Limited Partnership or (F) any entity that enters into a
      transaction with or with respect to any of the foregoing. The summary
      description and information shall be presented on a line item basis
      showing the valuation of each such item and shall be in sufficient detail
      to demonstrate the basis for the computation of any amounts owing or not
      owing, as the case may be, with respect to the Cash Participation. The
      summary description and information shall also be accompanied by the
      certificate of the chief financial officer, president or other officer of
      the Brynmawr Entities and/or their Affiliates reasonably acceptable to
      Administrator LLC, that such officer has examined this Agreement and has
      no knowledge, after due inquiry, of any matter or circumstance that makes
      the summary description and information inaccurate or misleading in any
      material respect, or, if such officer does have knowledge of any such
      matter or circumstance, setting forth such matter or circumstance in
      reasonable detail.

                        ii. Annual Information. The Brynmawr Entities shall
      provide (or cause to be provided to) Administrator LLC as soon as
      available, but in any event on or prior to March 31 of any calendar year,
      the audited consolidated and consolidating balance sheet as at the end of
      the preceding calendar year and the audited, consolidated and
      consolidating statements of earnings and retained earnings and of
      financial condition, prepared in accordance with GAAP, of the Brynmawr
      Entities and their Affiliates insofar as they relate directly or
      indirectly to: (A) the Newkirk Assets, (B) Capital, (C) the Net Lease
      Partnerships, (D) the Properties, (E) the Master Limited Partnership, or
      (F) any entity that enters into a transaction with or with respect to any
      of the foregoing. Such balance sheet and statements shall be prepared by
      the regularly employed certified public accountants of such entities and
      be accompanied by (A) the report or certificate of any such accountant
      without qualification as to the auditing standards used in the performance
      of its audit, and (B) the certificate of the chief financial officer,
      president or other officer of the Brynmawr Entities and/or its Affiliates
      reasonably acceptable to Administrator, that such officer has examined
      this Agreement and has no knowledge, after due inquiry, matter or
      circumstance that makes the accompanying audited balance sheet and
      financial statements inaccurate or misleading in any material respect, or,
      if such officer does have knowledge of any such matter or circumstance,
      setting forth such matter or circumstance in reasonable detail.

                                       16
<PAGE>

                  b. Other Information. The Brynmawr Entities shall provide
Administrator LLC with copies of: (A) any information provided to the owners of,
or investors in, any of the Brynmawr Entities and/or their Affiliates
simultaneously with the provision thereof to such owners or investors in respect
of, or directly or indirectly relating to, the Newkirk Assets, the Net Lease
Partnerships, the Properties, the Master Limited Partnership, or the
transactions contemplated by the Purchase Agreement and (B) any correspondence
to any limited partner of any Net Lease Partnership or of the Master Limited
Partnership simultaneously with the sending thereof. Administrator LLC and its
advisors shall, from time to time, be afforded access upon reasonable notice and
during normal business hours to the books and records of the Brynmawr Entities
and their Affiliates to the extent that they may be relevant to the Newkirk
Assets, the Net Lease Partnerships, the Properties, any Inside-the-Box Entity,
the general partners thereof or the assets of the foregoing (including, without
limitation, the Cash Purchase Participation); provided, however, that the
Brynmawr Entities shall not be obligated to afford such access on more than four
occasions per year. The Brynmawr Entities shall also, upon reasonable notice,
make available for reasonable periods those persons who are familiar with the
requested information to Administrator LLC in order to answer such questions as
Administrator LLC may have from time to time. The Brynmawr Entities shall
provide to Administrator LLC notice of any adjustment in the Brynmawr Entities
Allocable Percentage and a description in reasonable detail of the reasons for
such adjustment, together with such supporting documentation as may be
reasonably requested by Administrator LLC.

                  c. Confidentiality. Any information provided to Administrator
LLC and/or the Selling Group pursuant to Section 5.b of this Agreement
("Confidential Information") shall be kept in strictest confidence by
Administrator LLC and the Selling Group and shall be used by the Administrator
LLC and/or Selling Group and their representatives solely for purposes of
ensuring that the Brynmawr Entities are in compliance with this Agreement and
enforcing the rights of Administrator LLC and/or the Selling Group hereunder.
Administrator LLC and the Selling Group shall be entitled to disclose such
information (A) to each other and their professional advisors and/or (B) in
connection with any proceeding to enforce any right hereunder. For purposes of
this Agreement, Confidential Information shall not include information that (i)
becomes or has been generally available to the public other than as a result of
a disclosure by the Administrator LLC and/or Selling Group after the date of
this Agreement, (ii) was available to Administrator LLC and/or the Selling Group
or any member thereof on a non-confidential basis prior to its disclosure to
Administrator LLC and/or the Selling Group by a Brynmawr Entity or any of their
respective representatives, or (iii) becomes available to Administrator LLC
and/or the Selling Group on a non-confidential basis from a source other than
the Brynmawr Entities or any of their respective representatives.
Notwithstanding the foregoing, in the event that Administrator LLC and/or the
Selling Group or any member or representative thereof becomes legally compelled
to disclose any Confidential Information, prompt written notice shall be
provided to the Brynmawr Entities, so that a protective order or other
appropriate remedy may be sought, or a waiver of compliance with this Section
5.c may be given. In the event that such a protective order or other remedy
either is not obtained or that compliance with the provisions of this Section
5.c is not waived, Administrator LLC and/or the Selling Group will furnish only
that portion of the Confidential Information which is legally required and will
exercise its reasonable efforts (without any requirement that it incur any cost
or expense) to obtain reliable assurance that the Confidential Information will
be accorded confidential treatment.

                                       17
<PAGE>

            6. Effect of Certain Transfers.

                  a. Transfer of Control Assets. Without limiting any other
provision of this Agreement or any other Transaction Document, subject to
Section 6.d. of this Agreement, in the event that there shall be a direct or
indirect Actual Transfer of (i) any interest in any general partner of a Net
Lease Partnership, (ii) Finco (and/or any interest therein), (iii) a Brynmawr
Entity (and/or any interest therein), (iv) any interest in the Master Limited
Partnership or any other Inside-the-Box Entity, which interest was held by a
Brynmawr Entity or any Affiliate thereof, (v) the general partner of the Master
Limited Partnership or any interest in such general partner, (vi) any Affiliate
(and/or any interest therein) having a direct or indirect interest in any of the
foregoing and/or (v) any other asset with respect to which any cash or non-cash
right or benefit or any expense is includable within the computation of
Available Cash Flow (collectively, "Control Assets"), then:

                        i. all consideration directly or indirectly received by
      the Brynmawr Entities, the owners of any of the Brynmawr Entities and/or
      any of their respective Affiliates (whether or not deferred, whether in
      the form of cash or non-cash rights or benefits, or otherwise) on account
      of such Actual Transfer from any source derived, shall be valued in
      accordance with Section 4 and included within the computation of Available
      Cash Flow pursuant to this Agreement, but only to the extent that it
      relates directly or indirectly to assets with respect to which any cash or
      non-cash right or benefit or any expense is includable within the
      computation of Available Cash Flow;

                        ii. any future Available Cash Flow with respect to any
      of the Control Assets not subject of the Actual Transfer received by the
      Brynmawr Entities shall continue to be applied to the Cash Participation
      in accordance with the terms of this Agreement; and

                        iii. all duties, liabilities or other obligations of the
      Brynmawr Entities and/or their respective Affiliates under this Agreement
      shall remain in full force and effect (irrespective of whether the
      transferee under such Actual Transfer sells any Control Assets to another
      Person), and, if the Actual Transfer involves a sale of the Brynmawr
      Entities, the Funds shall be primarily liable with respect to such
      obligations.

                  b. Transfer To Affiliates. Notwithstanding anything in this
Agreement or any other Transaction Document to the contrary, but subject to
Section 6.c. below, in the event that the Brynmawr Entities or their Affiliates
propose to make a direct or indirect Actual Transfer of any Control Asset to any
Person that is an Affiliate of any of the Brynmawr Entities, then the Brynmawr
Entities shall give Administrator LLC at least fifteen (15) days prior written
notice of any such Actual Transfer describing in reasonable detail the proposed
transferee and the terms of the Actual Transfer. Administrator LLC may, within
ten (10) days after receipt of such notice, irrevocably opt either to have such
Actual Transfer treated as:

                                       18
<PAGE>

                        i. an independent, outright transfer to a person not
      affiliated with the Brynmawr Entities (in which case, without limiting the
      other provisions relating to the computation of Available Cash Flow, the
      purchase price and/or all other consideration payable to the transferor
      with respect to such Actual Transfer shall be included within Available
      Cash Flow and no other revenues from the assets that are the subject of
      the Actual Transfer shall be included within Available Cash Flow unless
      such revenues are included within the purchase price and/or other
      consideration); or

                        ii. as not constituting a transfer for purposes of the
      computation of Available Cash Flow (in which case, without limiting other
      provisions relating to the computation of Available Cash Flow, (A) none of
      the purchase price or other consideration payable to the transferor with
      respect to such Actual Transfer shall be included within Available Cash
      Flow which will continue to be computed as if such Actual Transfer had not
      occurred and (B) the Brynmawr Entities shall cause the transferee to
      execute either an assumption of this Agreement and such other
      documentation (including security documentation of the type and scope of
      the Capital Pledge Agreement) as the Administrator LLC may reasonably
      require).

                  In the event that Administrator LLC does not timely make an
election with respect to the treatment of an Actual Transfer under this
sub-section 6.b, it shall be deemed to have opted for the treatment set forth in
sub-clause (ii) of this Section 6.b.

                  c. Special Transfers.

                        i. Section 6.b. shall not apply to (1) any Actual
Transfer of a Control Asset from any Inside-the-Box Entity that is a direct or
indirect wholly-owned subsidiary of Master Limited Partnership to any other
Inside-the-Box Entity that is a direct or indirect wholly-owned subsidiary of
Master Limited Partnership or (2) any Actual Transfer of a Control Asset from
any Outside-the-Box Entity to any other Outside-the-Box Entity provided that the
ultimate beneficial ownership of both of such entities is identical and the
conditions set forth in clause (B) of Section 6.b.ii. have been satisfied.

                        ii. In the event of a merger of any Net Lease
Partnership listed on Schedule B hereto with and into a wholly-owned
Inside-the-Box Entity, Administrator LLC shall be deemed to have opted for the
treatment set forth in sub-clause (ii) of Section 6.b.

                                       19
<PAGE>

                        iii. The provisions of Sections 6.a. and 6.b. shall not
apply to the issuance or transfer of interests in Vornado Realty L.P. or Vornado
Realty Trust so long as neither the issuance nor the transfer of such interests,
together with all other issuances and transfers which have been exempted from
Section 6.a.or 6.b. by operation of this sentence, does not result in any person
or group becoming the beneficial owner of 100% of the interests in Vornado
Realty L.P. or Vornado Realty Trust (or such lesser percentage as would enable
such person or group (other than Vornado Realty Trust in the case of Vornado
Realy, L.P.) to cause a "short-form" merger or to otherwise "squeeze out" the
minority interest holders under applicable state law). For purposes of this
clause (iii), (A) "person" and "group" shall have the meanings used in Section
13(d) of the Securities Exchange Act of 1934, as amended, and (B) "beneficial
owner" and "beneficial ownership" shall have the meanings set forth in Rules
13d-3 and 13d-5 of the Securities Exchange Act of 1934, as amended. The
foregoing provisions of this clause 6.c.iii. shall not preclude the
applicability of Sections 6.a and 6.b (which sections shall apply) in the case
of a merger of Vornado Realty L.P. or Vornado Realty Trust into another entity
or a reverse merger of another entity into Vornado Realty L.P. or Vornado Realty
Trust where the beneficial owners of the other entity become the beneficial
owners of 66 2/3% or more of the interests of Vornado Realty L.P. or Vornado
Realty Trust, as the case may be.

                  d. [Intentionally Omitted]

                  e. Certain Actual Transfers.

                        i. Notwithstanding anything to the contrary contained
herein, an Actual Transfer of a Control Asset shall be deemed to have occurred
upon the sooner to occur of (a) the exercise of the option granted to the Master
Limited Partnership to acquire an ownership interest in T-Two Partners L.P. or
the first date on which such option is exercisable pursuant to the Option
Agreement, whichever occurs first, and (b) the exercise of the option granted to
T-Two Partners L.P. to cause the Master Limited Partnership to acquire an
ownership interest in NK-CR Holdings LLC or the first date on which such option
is exercisable pursuant to the Option Agreement, whichever occurs first. For
purposes of calculating Available Cash Flow, the value deemed received at such
time pursuant to such Option Agreement shall be the "T-2 Value" as such term is
defined in Section 1.04 of the Option Agreement, provided, however that in
determining the T-2 Value for purposes of this Agreement, (1) the outstanding
balance of the Grantor Trust T-1 Certificate referred to in clause (B)(1) of
Section 1.04(b) of the Option Agreement shall be the balance that would be
outstanding assuming that all amounts received as payments on or with respect to
the Contract Receivables were applied to the Grantor Trust T-1 Certificate to
the extent contemplated under the Grantor Trust Agreement (whether or not such
amounts were actually so applied), except to the extent that any such amounts
that were not so applied were received by an Outside-the-Box Entity and
constituted Available Cash Flow that reduced the Apollo Capital Account, and (2)
any liabilities of T-Two Partners that did not constitute Available Cash Flow or
otherwise reduce the Apollo Capital Account shall not be included for purposes
of clause (B)(3) of Section 1.04(b) of the Option Agreement.

                                       20
<PAGE>

                        ii. For purposes of this Section 6, an Actual Transfer
of a Control Asset from an entity controlled directly or indirectly by either of
the Funds to an entity controlled directly or indirectly by Vornado, shall be an
Actual Transfer of the type that triggers Section 6.b.

            7. Dispute Resolution.

                  a. Arbitration. Any dispute or controversy arising under or in
connection with this Agreement, any Cash Participation Instrument or any
Acceptable Loss Affidavit (collectively, the "Cash Participation Documents"),
shall be settled exclusively by arbitration to be held in the City of New York
in accordance with the rules of the American Arbitration Association then in
effect. There shall be one arbitrator appointed in accordance with those rules.
Subject to Section 7.c. of this Agreement, as part of his award, the arbitrator
shall make a fair allocation between the parties of the fee and expenses of the
American Arbitration Association and the cost of any transcript, taking into
account the merits of their claims and defenses. The arbitrator shall render his
award within thirty (30) days after the commencement of the arbitration;
provided, however, no failure on the part of the arbitrator to render his award
within such thirty (30) day period shall constitute a release from liability of
any party hereto. Failure by either party to submit to arbitration under this
Section 7.a shall result in the arbitrator ruling in favor of the other party if
such other party has submitted to arbitration under this Section 7.a. Judgment
may be entered on the arbitrator's award in any court having jurisdiction, and
the parties irrevocably consent to the jurisdiction of the New York courts for
that purpose. The arbitrator may grant injunctive or other relief. Nothing in
this Section 7.a shall preclude any party from seeking temporary injunctive
relief from a court of competent jurisdiction pending appointment of an
arbitrator pursuant this Section 7.a.

                  b. Baseball Arbitration. In connection with any arbitration
under Section 7.a hereof, to the extent that the subject of the arbitration is
the determination of an amount that is due by any Brynmawr Entity, on the one
hand, or Administrator LLC and/or the Selling Group, on the other, to the other,
each party shall submit to the arbitrator its estimate of such amount within ten
(10) days after the appointment of the arbitrator (with all Brynmawr Entities
being one party for purposes of this Section 7). The arbitrator shall be charged
solely with determining, within ten (10) days after expiration of the period
during which the parties are to submit their respective estimates, which
estimate is closest to the amount that is due and shall award the amount of that
estimate to the party to whom it is due; except that, if the larger of the two
estimates is equal to or less than 120% of the smaller of the two estimates, the
amount to be awarded by the arbitrator shall be the average of the two
estimates. No failure on the part of the arbitrator to render his award within
such ten (10) day period shall constitute a release from liability of any party
hereto. If either the Administrator LLC and/or the Selling Group, on the one
hand, or the applicable Brynmawr Entities, on the other, fail to timely submit
an estimate under this Section 7.b, the estimate of the other party shall be
awarded by the arbitrator to the party to whom it is due.

                                       21
<PAGE>

                  c. Expenses of Arbitration. With respect to any arbitration
under the Section 7 of this Agreement, the non-prevailing parties shall pay all
out-of-pocket costs and expenses of the prevailing parties incurred in
connection with such arbitration.

            8. General.

                  a. Liabilities; Security Interest; Guarantee. All duties,
obligations and liabilities of the Brynmawr Entities under any Cash
Participation Document shall be joint and several. Such duties, obligations and
liabilities are secured by one or more security interests granted to the
Administrator LLC, for itself and as agent for the Selling Group, pursuant to
the Pledge Agreements and are the subject of the Guaranty Agreement.

                  b. No Offset. No Brynmawr Entity shall have any right of
offset for any default, breach or other non-performance of any obligation under
the Loan Agreement, the Note (as defined in the Loan Agreement), the Tri-Party
Agreement, or the Pledge Agreement (as defined in the Loan Agreement)
(collectively, the "Loan Documents"), including, without limitation, the
non-payment of any principal of, or interest on, the Newkirk Loan. Accordingly,
all amounts payable in respect of any Cash Participation Document shall be paid
in full without any deduction or offset on account of any default, breach or
other non-performance of any obligation under any Loan Documents (including,
without limitation, the non-payment of any principal of, or interest on, the
Newkirk Loan).

                  c. Non-Recourse Against Certain Persons. Notwithstanding
anything to the contrary contained in this Agreement or any other Transaction
Document or any other document referred to herein or therein, recourse for any
breach of any and all obligations and duties under any Cash Participation
Document by the Selling Group and/or Administrator LLC shall be had against only
(i) Administrator or the individuals of the Selling Group listed on Schedule E
attached hereto with respect to any obligations or liabilities of Administrator
or (ii) the individuals of the Selling Group listed on Schedule E attached
hereto with respect to any obligations or liabilities of the Selling Group or
any individual of the Selling Group. Each of the individuals of the Selling
Group listed on Schedule E attached hereto shall be jointly and severally liable
for any and all obligations and duties of the Selling Group and/or Administrator
LLC under any Cash Participation Document. The Brynmawr Entities hereby agree
that the individuals of the Selling Group who are not listed on Schedule E shall
not be liable for any of the obligations or duties under any Cash Participation
Document, and shall be absolved of any and all liabilities for any and all
breaches under such documents by the Selling Group or any individual of the
Selling Group.

            9. Miscellaneous.

                  a. Further Assurances. At any time, and from time to time
after the date hereof, each of the parties hereto shall, without further
consideration and at their own cost and expense, execute and deliver such
additional agreements, instruments, documents or certificates, and take such
further action, as shall reasonably be requested by any other party in order to
carry out the provisions of this Agreement.

                                       22
<PAGE>

                  b. NO PARTNERSHIP. NOTHING IN THIS AGREEMENT OR ANY OTHER CASH
PARTICIPATION DOCUMENT SHALL BE INTERPRETED OR CONSTRUED AS CREATING ANY
PARTNERSHIP OR JOINT VENTURE AMONG ANY OF THE PARTIES HERETO.

                  c. Partial Invalidity. If any provision of this Agreement or
any other Cash Participation Document, or the application thereof to any
particular party or circumstance, shall to any extent be invalid or
unenforceable, the remainder of this Agreement or such other Cash Participation
Document, or the application of such provision to any other particular party or
circumstance, shall not be affected thereby and each remaining provision of this
Agreement, or the application of such provision to any particular party or
circumstance, shall be valid and enforceable.

                  d. Notices. Any notice, demand, request or other communication
required or permitted to be made under this Agreement or any other Cash
Participation Document shall be in writing and shall be considered given (i)
when sent by telecopier, receipt confirmed, (ii) when delivered personally, or
(iii) one business day after being delivered by a nationally recognized
overnight delivery service, in each case to the parties at the following
addresses:

                   If to a Brynmawr Entity, at:

                            c/o Winthrop Financial Services
                            100 Jericho Quadrangle
                            Jericho, New York 11753
                            Attention: Michael Ashner
                            Telecopier: 516-433-2777

                                    and

                            Vornado Realty Trust
                            888 7th Avenue
                            New York, New York 10019
                            Attn: Clifford Broser
                            Telecopier: 212-894-7071

                                       23
<PAGE>

                   with a copy to:

                            Rosenman & Colin LLP
                            575 Madison Avenue
                            New York, New York 10022
                            Attention: Mark I. Fisher, Esq.
                            Telecopier: 212-940-87762

                                    and

                            Apollo Advisors, L.P.
                            1999 Avenue of the Stars, Suite 1900
                            Los Angeles, CA 90067
                            Attention: Michael D. Weiner, Esq.
                                       General Counsel
                            Telecopier: 310-201-4166

                                    and

                            Sullivan and Cromwell
                            125 Broad Street
                            New York, NY 10004
                            Attention: Arthur Adler, Esq.
                            Telecopier: 212-558-1600

                   If to either Administrator LLC or the Selling Group, at:

                            Administrator LLC
                            c/o Millennium Capital Management LLC
                            70 East 55th Street
                            New York, New York 10022
                            Attention: Mr. Jay Chazanoff
                            Telecopier: 212-376-8989

                                    and:

                            Administrator LLC
                            c/o Proskauer Rose LLP
                            1585 Broadway
                            New York, New York 10036
                            Attention: Wendy J. Schriber, Esq.
                            Telecopier: 212-969-2900

                                       24
<PAGE>

                   with a copy to:

                            Proskauer Rose LLP
                            1585 Broadway
                            New York, New York 10036
                            Attention: James D. Meade, Esq.
                            Telecopier: 212-969-2900

            However, the parties hereto shall have the right, from time to time
and at any time, to change their respective addresses, and each shall have the
right to specify any other person and/or address in the United States of America
by at least ten (10) days' prior written notice to the other party.

                  e. Successors and Assigns; Assignment. This Agreement and the
other Cash Participation Documents shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns. Each party to this Agreement or the
other Cash Participation Documents may assign all or any portion of its interest
hereunder or thereunder, provided that (i) each assignment shall expressly be
made subject to the provisions of this Section 9.e and (ii) simultaneously with
such assignment, the assignee shall expressly assume all duties, obligations and
liabilities relating to the assigned interests. The assignee shall execute,
acknowledge (when applicable) and deliver to each other party to this Agreement
and the other Cash Participation Documents an agreement whereby the assignee (x)
assumes all obligations, duties and liabilities of the assigning party to the
extent of the interest being assigned pursuant to such assignment, (y) to the
extent of the interest being assigned, agrees to be personally bound by and upon
all covenants, agreements, terms, provisions and conditions hereof on the part
of the assigning party to be performed or observed, and (z) agrees that the
provisions of this Section 9.e shall continue in full force and effect and be
binding upon the assignee. Any assignment of interests in this Agreement or any
other Cash Participation Document made without full compliance with the
preceding sentence shall be null and void for all purposes. Notwithstanding
anything contained herein, in any other Transaction Document or any document
referred to herein or therein or contemplated hereby or thereby (including
without limitation, the assumption requirements of the second sentence of this
Section 9.e), in no event shall any assignment by any party hereto of its
interests (or any part thereof) under this Agreement or any other Cash
Participation Document (i) modify or limit any right or power of any other party
hereunder or thereunder or (ii) affect or reduce any obligation, duty or
liability of the assigning party, and all obligations, duties and liabilities of
the assigning party under this Agreement or such other Cash Participation
Document shall continue in full force and effect as obligations, duties and
liabilities of a principal and not of a guarantor or surety, enforceable against
the assigning party as a principal, as though no assignment or assumption had
been made. Nothing in this Section 9.e shall be construed to modify the
non-recourse provisions of Section 8 of this Agreement.

                                       25
<PAGE>

                  f. Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS
ARISING UNDER THIS AGREEMENT OR ANY OTHER CASH PARTICIPATION DOCUMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE,
WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICT OF LAWS, AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

                  g. Entire Agreement. This Agreement, together with the other
Cash Participation Documents and the Transaction Agreement, embody the entire
agreement and understanding between the parties hereto relating to the subject
matter hereof and thereof and supercedes all prior agreements and understandings
to the extent that it relates to such subject matter, and it is agreed that
there are no terms, understandings, representations, or warranties, express or
implied, other than those set forth herein and therein.

                  h. Marshalling of Assets; Subrogation. Each Brynmawr Entity
hereby waives any right or claim of right to cause a marshalling of their
assets. No right of subrogation, reimbursement or contribution, whether arising
by contract or operation of law (including, without limitation, any such right
arising under the United States Bankruptcy Code, title 11 of the United States
Code 11 U.S.C. ss.ss.101 et seq., and successor statute) or otherwise by reason
of any payment by it pursuant to the provisions of this Agreement, shall be
asserted by a Brynmawr Entity until all of the obligations of the Funds, the
Brynmawr Entities and their respective Affiliates under the Transaction
Documents have been fully satisfied.

                  i. No Waiver. No failure or delay on the part of any party
hereto in exercising any right, power or privilege under this Agreement or any
other Cash Participation Document and no course of dealing between the parties
hereto shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege under this Agreement or any other Cash
Participation Document or thereby preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or thereunder.
The rights, powers and remedies under this Agreement or any other Cash
Participation Document expressly provided are cumulative with and not exclusive
of any rights, powers or remedies which any party hereto would otherwise have.
No notice to or demand on any party hereto in any case shall, ipso facto,
entitle such party to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the other party to any
other or further action in any circumstances without notice or demand where
notice or demand is not otherwise required.

                  j. No Oral Modification. This Agreement and any other Cash
Participation Document shall not be changed, waived, discharged or terminated
unless such change, waiver, discharge or termination is in writing and signed by
each of the parties hereto or thereto.

                                       26
<PAGE>

                  k. Release. Any party liable under or in respect of this
Agreement any other Cash Participation Document or any other Transaction
Document or any document referred to herein or therein or contemplated hereby or
thereby may be released without affecting the liability of any party not so
released.

                  l. No Third Party Beneficiary. This Agreement and each other
Cash Participation Document is for the purpose of defining the respective rights
and obligations of the parties hereto and thereto and is not for the benefit of
any creditor or other third party, except for the Selling Group and as otherwise
may be expressly set forth herein or thereto.

                  m. Gender. All pronouns and any variations of pronouns in this
Agreement or any other Cash Participation Document shall be deemed to refer to
the masculine, feminine, or neuter, singular or plural, as the identity of the
parties may require. Whenever the terms herein are singular, the same shall be
deemed to mean the plural, as the identity of the parties or the context
requires and vice versa.

                  n. Captions. The captions or titles given to any provision of
this Agreement are for convenience and reference only and shall in no way
define, limit or describe the scope or intent of this Agreement and in no way
affect or constitute a part of this Agreement.

                  o. Schedule and Exhibits. All schedules and exhibits attached
hereto are hereby incorporated herein by this reference and made a part hereof
for all purposes.

                  p. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall constitute a duplicate original, but all of
which together shall constitute one and the same instrument.

            10. Effective Date. This Agreement shall be effective on and as of
the date on which the Transaction (as such term is defined in the Transaction
Agreement) is consummated; provided, however, this Agreement shall automatically
(and without the necessity of any action by the parties) terminate and cease to
have any force or effect if the Transaction does not occur by March 31, 2002.

                                  [END OF TEXT]

                                       27
<PAGE>

                                [EXECUTION PAGE]

            IN WITNESS WHEREOF, the undersigned have executed or caused to be
executed on their behalf this Agreement as of the date first above written.

NEWKIRK GP LLC                                  NEWKIRK CAPITAL LLC

By: Newkirk Manager Corp.                       By: Newkirk Manager Corp.
    Manager                                         Manager

    By /s/ Peter Braverman                          By /s/ Peter Braverman
      -------------------------                       --------------------------
      Peter Braverman                                 Peter Braverman
      Executive Vice President                        Executive Vice President

NEWKIRK ASSOCIATES LLC                          NEWKIRK RE ASSOCIATES LLC

By: Newkirk Manager Corp.                       By: Newkirk Manager Corp.
    Manager                                         Manager

    By /s/ Peter Braverman                          By /s/ Peter Braverman
      -------------------------                       --------------------------
      Peter Braverman                                 Peter Braverman
      Executive Vice President                        Executive Vice President

NEWKIRK STOCK LLC                               VORNADO REALTY L.P.

By: Newkirk Manager Corp.
    Manager

    By /s/ Peter Braverman                      By /s/ Joseph Macnow
      -------------------------                   --------------------------
      Peter Braverman                             Joseph Macnow
      Executive Vice President                    Executive Vice President
                                                  Finance and Administration

VORNADO NEWKIRK L.L.C.                          VNK CORP.

By /s/ Joseph Macnow                            By /s/ Joseph Macnow
  -------------------------                       --------------------------
  Joseph Macnow                                   Joseph Macnow
  Executive Vice President                        Executive Vice President
  Finance and Administration                      Finance and Administration

ADMINISTRATOR LLC

By /s/
  -------------------------
  Name:
  Title:

                                       28
<PAGE>

                                   SCHEDULE A

                                  Selling Group

William Adair                                   Creighton Lacey-Baker
Richard Ader                                    Gerard Lavin
Stephen Benvenuto                               Herbert Liechtung
Geoffrey Bobroff                                Joseph A. Lucas
Jay Chazanoff                                   Sanford Merkin
Philip Cohen                                    Stephen Mintz
Daniel Davis                                    Kes Narbutas
David Dietz                                     Donald Olsen
Harvey P. Eisen                                 Joel Pashcow
Benjamin Fein                                   Stanley Rappoport
John Filoon, Jr.                                Robert J. Rosen
Nancy Frankel                                   Richard Rosenbaum
Abraham Gelber                                  Elliot Roth
Arthur Goldberg                                 Frank Savage
Herbert Goldberg                                David Silvers
Marvin Goldklang                                Craig Singer
Stephen Goldsmith                               Alan Wiener
James R. Greene                                 Douglas H. Wood
Joel Kagan                                      Bernard Zises
Leonard Kanarek                                 Jay Zises
Marvin Kenigsberg                               Selig A. Zises
Gary W. Krat                                    Seymour Zises
Jeffrey Krauss

                                       29
<PAGE>

                                   SCHEDULE B

                             Net Lease Partnerships

21AT                           Alake                               Albeau
Allia                          Alsey                               Altenn
Alwood                         Ateb                                Autolane
Avrem                          Basot                               Bedcar
Bessomac                       Bethplain                           Bluff
Boford                         Bradall                             Buck Valley
Calane                         Calcraf                             Camfex
Carlane                        Caroldale                           Carolion
Cenland                        Clamarsh                            Clifmar
Colane                         Crostex                             Croydon
Dalhill                        Dautec                              Daytower
Denport                        Denville                            Eastgar
Elport                         Elway                               FedData
Flamont                        Gamma                               Gersant
Gocar                          Guyon                               Harpard
Hazelport                      Jackson St.                         Jaclane
Jacway                         Jameslane                           Jayal
JLE Way                        Jeral                               Jermor
Johab                          JVF                                 Kalan
LCB                            Lando                               Lanmar
Larloosa                       Leyden                              Linwood Ave.
Liroc                          Lybster                             Mainbor
Marbax                         Martall                             Maxam
Melcal                         Merday                              Meredem
Mesa                           Midlem                              Montal
Nevit                          Newal                               Olo
Orper                          Paycap                              Plecar

<PAGE>

Pinmar                         Pinole                              Porto
Redwash                        Renex                               Renlake
Reppoc                         Rotale                              Sablemart
Sajos                          Salistown                           Sandnord
Santex                         Scribe                              Segair
Seguine                        Silward                             Simval
Skoob                          Spokmont                            Statmont
Sunway                         Supergar                            Superline
Superwest                      Suteret                             Syrcar
Taber                          Texford                             Vegpow
Vegrouge                       Vengar                              Walando
Walcreek                       Waldrest                            Walmad
Walstaff                       Washtex                             Wybanco
<PAGE>

                                   SCHEDULE C

                               Certain Liabilities
<PAGE>

                                   SCHEDULE D

                             [Intentionally Omitted]
<PAGE>

                                   SCHEDULE E

                               Protecting Partners

Richard Ader
Stephen Benvenuto
Jay Chazanoff
Philip Cohen
Daniel Davis
Nancy Frankel
Arthur Goldberg
Herbert Goldberg
Marvin Goldklang
James R. Greene
Leonard Kanarek
Gary W. Krat
Stephen Mintz
Donald Olsen
Joel Pashcow
Robert J. Rosen
Elliot Roth
David Silvers
Douglas H. Wood
Bernard Zises
Jay Zises
Selig A. Zises
Seymour Zises
<PAGE>

                                    EXHIBIT A

                         Consent Solicitation Statement

                              Intentionally Omitted

<PAGE>

                                    EXHIBIT B

                                Option Agreement

                              Intentionally Omitted

<PAGE>

                                    EXHIBIT C

                      Form of Cash Participation Instrument

                      PAYMENT OF THIS INSTRUMENT IS SECURED
                        PURSUANT TO THE PLEDGE AGREEMENTS
                       REFERRED TO BELOW AND IS GUARANTEED
              PURSUANT TO THE GUARANTY AGREEMENT REFERRED TO BELOW.

                  NON-NEGOTIABLE CASH PARTICIPATION INSTRUMENT

$________________                                        _____________ ___, 2001
Cash Participation Instrument No. ____

            For value received, Newkirk GP LLC (formerly known as Brynmawr
Associates LLC), a Delaware limited liability company ("Newkirk GP"), Newkirk
Capital LLC (formerly known as Brynmawr Capital LLC), a Delaware limited
liability company ("Capital"), Newkirk RE Associates LLC, a Delaware limited
liability company ("Newkirk RE"), Newkirk Stock LLC ("Stock"), a Delaware
limited liability company, and Newkirk Associates LLC ("Associates"), a Delaware
limited liability company, each having an office located at c/o Winthrop
Financial Services, 100 Jericho Quadrangle, Jericho, New York 11753, Attention:
Michael Ashner, and Vornado Realty L.P., a Delaware limited partnership
("Vornado"), Vornado Newkirk L.L.C. , a Delaware limited liability company
("Vornado Newkirk"), and VNK Corp., a Delaware corporation ("VNK"), each having
an office located at 888 Seventh Avenue, New York, New York 10019 (Newkirk GP,
Capital, Newkirk RE, Stock, Vornado, Vornado Newkirk and VNK being,
collectively, the "Obligors"), do hereby, jointly and severally, promise to pay
to the order of Administrator LLC, as agent, having an address located at c/o
Proskauer Rose LLP, 1585 New York, New York 10036, Attn: Wendy J. Schriber, all
amounts owing, from time to time, in the aggregate amount of ___________________
in respect of the Cash Participation described in that certain Amended and
Restated Cash Participation Agreement, dated December ___, 2001, by and among
Obligors and Administrator LLC, for itself and as agent for the persons the
persons listed on Schedule A thereto (the "Cash Participation Agreement"). All
capitalized terms used, but not otherwise defined, in this instrument shall have
the meaning set forth in the Cash Participation Agreement.

            Without limiting the foregoing, to the extent that Administrator LLC
has not then been paid the full amount of ______________________, the Obligors
shall pay to Administrator LLC an amount equal to _________________________ less
all amounts theretofore paid to Administrator LLC under Section 2 of the Cash
Participation Agreement (and not otherwise reimbursed under the last sentence of
Section 2.d.ii. of such agreement) on the earlier to occur of

<PAGE>

(1) 120 days following the date on which the Master Limited Partnership becomes
"public", or any Brynmawr Entity or any other Affiliate thereof whose direct or
indirect interest in the assets which give rise to or are otherwise taken into
account in determining Available Cash Flow constitutes 75% or more of such
entity's total value and that is not "public" on December ___, 2001 becomes
"public", or (2) January 15, 2009. As used herein, any entity shall be "public"
if its securities are listed for trading on a securities exchange (including,
without limitation, the New York Stock Exchange, the American Stock Exchange,
NASDAQ, NASDAQ Small Cap, London Stock Exchange, Tokyo Stock Exchange, or Paris
Stock Exchange).

            This instrument is one of the instruments referred to as "Cash
Participation Instruments" in the Cash Participation Agreement. This instrument
has been issued in substitution of a Cash Participation Instrument in like
amount issued on or about November 20, 1997. Any payment made in respect of this
instrument shall be made simultaneously, and on a pari passu basis with, the
other Cash Participation Instruments issued under the Cash Participation
Agreement.

            This instrument and the other Cash Participation Instruments
referred to in the Cash Participation Agreement are (i) secured by a security
interest in certain assets, in accordance with and subject to the terms and
conditions of certain of the Pledge Agreements referred to therein, and (ii)
guaranteed by certain Affiliates of Obligors pursuant to the Amended and
Restated Guaranty Agreement, dated as of ______, 2001. The Amended and Restated
Guaranty Agreement is secured, among other things, by the certain of the Pledge
Agreements referred to in the Cash Participation Agreement.

            The holder hereof shall not by any act, delay, commission, failure
to act, or otherwise be deemed to have waived any right, power, privilege or
remedy hereunder, and no waiver whatever shall be valid unless in writing signed
by the holder hereof, and then only to the extent therein set forth; nor shall
any single or partial exercise of any right, power, privilege or remedy
hereunder preclude any further exercise thereof or the exercise of any other
right, power, privilege or remedy. The rights and remedies herein provided are
cumulative and not exclusive of any rights or remedies provided by law and may
be exercised singly or concurrently. A waiver by the holder hereof of any right
or remedy under the terms of this instrument, on any one occasion, shall not be
construed as a bar to any right or remedy which the holder would otherwise have
had on any future occasion. No executory agreement unless in writing and signed
by the holder, and no course of dealing between Obligors, endorser(s) or
guarantor(s) hereof and the holder shall be effective to change or modify or
discharge in whole or in part, this instrument.

            Any payment made in respect of this instrument shall first be
applied to interest accrued with respect to this instrument, if any, and
thereafter to payments owing in respect of the Cash Participation as it relates
to this instrument.

<PAGE>

            The Cash Participation Agreement provides that any amount that shall
have accrued and remain unpaid in respect of a calendar quarter shall be paid by
the end of such calendar quarter. Interest shall accrue on any amount that is
not paid when due under the Cash Participation Agreement at a rate equal to the
lower of (i) fifteen (15%) percent per annum or (ii) the maximum rate permitted
by law, and any such interest shall be computed from the date when such payment
became overdue to the date such non-payment is cured.

            In addition, if any payment hereunder is not made when due under the
Cash Participation Agreement, a late charge of one (1%) percent of each payment
so overdue may be charged by the holder for the purpose of defraying the
expenses incident to handling such delinquent payment to the extent such payment
is then permitted by law.

            Obligors may prepay this instrument at any time in whole or in part
by paying the entire amount of the unpaid Cash Participation Cap, as it relates
to this instrument, together with any interest accrued thereon, without any
further prepayment penalty, premium or similar charge; and thereafter there
shall be no prepayment penalty, premium or similar charge.

            Any notice, request, demand or communication to the holder shall be
deemed effective only if in writing and shall be considered given when (a) sent
by telecopier, with receipt confirmed, (b) delivered personally, and (c) one
business day after being sent by recognized overnight courier to the addressee
set forth in the Cash Participation Agreement.

            This instrument is subject to the Cash Participation Agreement
(including, without limitation Section 7 thereof with respect to the resolution
of disputes). All parties in interest to this instrument, whether maker,
guarantor or endorser, if any, waive presentment for payment, notice of
dishonor, protest, notice of protest of this instrument or other notice of any
kind and all demands whatsoever.

            This instrument is non-negotiable. The holder hereof may assign and
transfer this instrument and may deliver all or any part of any collateral
security held in connection herewith to any transferee that is permitted under
the Cash Participation Agreement, who shall thereupon become vested with all the
rights, powers and privileges, and duties, obligations and liabilities of the
holder with respect to any collateral security transferred or any guarantee
given and the holder shall thereafter be forever released and discharged of and
from any and all liability or responsibility to Obligors for and on account of
any collateral security so delivered.

            This instrument shall be governed and construed in accordance with
the laws of the State of New York.

            If any provision of this instrument, or the application thereof to
any particular party or circumstance, shall to any extent be invalid or
unenforceable, the remainder of this instrument, or the application of such
provision to any other particular party or circumstance, shall not be affected
thereby and each remaining provision of this instrument, or the application of
such provision to any particular party or circumstance, shall be valid and
enforceable.
<PAGE>

            This instrument may not be changed or terminated orally, but only by
a writing signed by the holder hereof.

                                  [END OF TEXT]
<PAGE>

               [EXECUTION PAGE FOR CASH PARTICIPATION INSTRUMENT]

            IN WITNESS WHEREOF, the undersigned have each caused this instrument
to be executed on their behalf as of the date first above written.

                                            NEWKIRK GP LLC
                                            NEWKIRK RE ASSOCIATES LLC
                                            NEWKIRK STOCK LLC
                                            NEWKIRK ASSOCIATES LLC

                                            By: NEWKIRK MANAGER CORP.
                                                MANAGER

                                                By: /s/ Peter Braverman
                                                    ----------------------------
                                                    Peter Braverman
                                                    Executive Vice President

                                            NEWKIRK CAPITAL LLC

                                            By: NEWKIRK STOCK LLC
                                                MANAGING MEMBER

                                                By: NEWKIRK MANAGER CORP
                                                    MANAGER

                                                    By: /s/ Peter Braverman
                                                        ------------------------
                                                        Peter Braverman
                                                        Executive Vice President

                                            VORNADO REALTY L.P.

                                            By: /s/ Joseph Macnow
                                                --------------------------------
                                                Joseph Macnow
                                                Executive Vice President
                                                Finance and Administration

                                            VORNADO NEWKIRK L.L.C.

                                            By: /s/ Joseph Macnow
                                                --------------------------------
                                                Joseph Macnow
                                                Executive Vice President
                                                Finance and Administration

<PAGE>

                                            VNK CORP.

                                            By: /s/ Joseph Macnow
                                                --------------------------------
                                                Joseph Macnow
                                                Executive Vice President
                                                Finance and Administration

<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of NEWKIRK GP LLC, the limited liability company described in and
which executed the foregoing instrument; and that he signed his name thereto by
like authority of the ___________________ NEWKIRK GP LLC.

                                                     ___________________________
                                                     Notary Public
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at _____________________ and that he is the
______________ of NEWKIRK CAPITAL LLC, the limited liability company described
in and which executed the foregoing instrument; and that he signed his name
thereto by like authority of the ___________________ NEWKIRK CAPITAL LLC.

                                                     ___________________________
                                                     Notary Public

<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of NEWKIRK RE ASSOCIATES LLC, the limited liability company
described in and which executed the foregoing instrument; and that he signed his
name thereto by like authority of the ___________________ NEWKIRK RE ASSOCIATES
LLC.
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of NEWKIRK STOCK LLC, the limited liability company described in
and which executed the foregoing instrument; and that he signed his name thereto
by like authority of the ___________________ NEWKIRK STOCK LLC.
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of NEWKIRK ASSOCIATES LLC, the limited liability company
described in and which executed the foregoing instrument; and that he signed his
name thereto by like authority of the ___________________ NEWKIRK ASSOCIATES
LLC.

                                                     ___________________________
                                                     Notary Public
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of VORNADO REALTY L.P., the limited partnership described in and
which executed the foregoing instrument; and that he signed his name thereto by
like authority of the ___________________ VORNADO REALTY L.P.
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of VORNADO NEWKIRK L.L.C., the limited liability company
described in and which executed the foregoing instrument; and that he signed his
name thereto by like authority of the ___________________ VORNADO NEWKIRK
L.L.C..
<PAGE>

STATE OF NEW YORK  )
                   ss.:
COUNTY OF NEW YORK )

            On this _______ day of ______________, 2001, before me personally
came _______________ to me known, who being by me duly sworn, did depose and say
that he maintains an office at ______________________________ and that he is the
______________ of VNK CORP., the corporation described in and which executed the
foregoing instrument; and that he signed his name thereto by like authority of
the ___________________ VNK CORP.
<PAGE>

                                    EXHIBIT D

                 AFFIDAVIT OF LOST CASH PARTICIPATION INSTRUMENT

STATE OF __________          )
                             )     ss:
COUNTY OF __________         )

            _______________________, the ______________________ of
____________________, being duly sworn, deposes and says:

1. I am of legal age and have knowledge of the facts stated herein.

2. Cash Participation Instrument No. ___, dated _________________, was issued by
Newkirk GP LLC, Newkirk Capital LLC, Newkirk RE Associates, Newkirk Stock LLC,
Newkirk Associates LLC, Vornado Realty L.P., Vornado Newkirk L.L.C. and VNK
Corp. (the "Issuing Entities") to ______________________ (the "Instrument").

3. ________ has caused to be made a diligent search for the originally assigned
copy of the Instrument, has been unable to locate it, and believes that it has
been lost, misfiled, misplaced or destroyed due to a clerical error.

4. ___________ was the unconditional owner of the originally executed Instrument
at the time of loss, and is entitled to the full and exclusive possession
thereof, and neither the original Instrument nor any rights therein have, in
whole or in part, been assigned, transferred, hypothecated, pledged or otherwise
disposed of, in any manner whatsoever. To the best of the undersigned's
knowledge, no person, firm or corporation other than _________ has any right,
title, claim, equity or interest in, to, or respecting the original Instrument
or the proceeds thereof.

5. If any party attempts to negotiate, assign, transfer or collect the
Instrument, ______________ agrees to indemnify and hold harmless the Issuing
Entities and their respective successors and assigns, for any liability,
obligation, loss or damages that the Issuing Entities or their respective
successors and assigns, may have or incur as a result thereof and for any costs
associated with defending against any obligations with respect to the
Instrument.

6. If ________ should ever locate, find or be in possession of the original
Instrument, (i) _______ will not negotiate, attempt to negotiate, assign or
transfer same or attempt to collect any sums thereunder, (ii) _________ will
immediately cause the surrender of the original Instrument to the Issuing
Entities for cancellation.
<PAGE>

7. Recourse for the performance of any obligation contained in this instrument
may be had against only the individuals of on Schedule A annexed hereto (the
"Protecting Partners"). Each of the Protecting Partners shall be jointly and
severally liable for all obligations and liabilities under this instrument. By
accepting this instrument, the Issuing Entities agree that any person or entity
that is not a Protecting Partner shall not be liable for any of the obligations
under this instrument, and shall be absolved of any and all liabilities for any
and all breaches of any obligation under this instrument.

                                                     [NAME OF PERSON]

                                                     By: _______________________
                                                         Name:
                                                         Title:Exhibit 10.2

                                          The Newkirk Master Limited Partnership

                      AMENDED AND RESTATED PLEDGE AGREEMENT

            This AMENDED AND RESTATED PLEDGE AGREEMENT (this "Agreement") is
made and entered into as of the 1st day of January, 2002, by and between The
Newkirk Master Limited Partnership, a Delaware limited partnership ("Newkirk
MLP" or "Pledgor"), and Administrator LLC, a Delaware limited liability company,
for itself ("Administrator") and as agent for the parties listed on Schedule A
attached hereto (the "Selling Group"; Administrator and the Selling Group
sometimes hereinafter collectively referred to as "Pledgee").

                              W I T N E S S E T H:

            WHEREAS, Apollo Real Estate Investment Fund II, L.P., a Delaware
limited partnership ("Fund II"), and the Selling Group entered into a Purchase
and Sale Agreement, dated July 2, 1997, as amended and supplemented (the
"Purchase Agreement"), relating to the sale of the Newkirk Assets (as defined in
the Purchase Agreement) to Fund II, on the terms, and subject to the conditions,
set forth therein;

            WHEREAS, Fund II assigned its rights to acquire the Newkirk Assets
to Apollo Real Estate Investment Fund III, L.P., a Delaware limited partnership
("Fund III"), pursuant to that certain Assignment, dated November 20, 1997,
between Fund II, as assignor, and Fund III, as assignee;

            WHEREAS, Fund III assigned its rights to acquire (i) a portion of
the Newkirk Assets to Newkirk GP LLC (f/k/a Brynmawr Associates LLC), a Delaware
limited liability company ("Newkirk GP"), pursuant to that certain Assignment,
dated as of November 20, 1997, between Newkirk NL Holdings LLC (f/k/a Brynmawr
NL Holdings LLC), a Delaware limited liability company ("Holdings"), as
assignor, and Newkirk GP, as assignee, and (ii) the balance of the Newkirk
Assets to Newkirk Capital LLC (f/k/a Brynmawr Capital LLC), a Delaware limited
liability company ("Capital"), pursuant to that certain Assignment, dated as of
November 20, 1997, between Holdings, as assignor, and Capital, as assignee; and

            WHEREAS, in connection with the consummation of the transactions
contemplated by the Purchase Agreement, which occurred on November 20, 1997, and
as security for certain obligations of Holdings, Holdings and Administrator
entered into a Pledge Agreement, dated November 20, 1997 (the "Original Pledge
Agreement"), under which Holdings pledged to the benefit of Administrator the
following membership interests: (i) a 100% membership interest in Newkirk GP,
(ii) a 100% membership interest in Newkirk Finco LLC (f/k/a Brynmawr Finco LLC),
a Delaware limited liability company ("Finco"), and (iii) a 50.01% membership
interest in Capital (collectively, the "Membership Interests");

            WHEREAS, Holdings transferred its entire membership interest in
Newkirk GP to Newkirk RE Holdings LLC, a Delaware limited liability company
("Newkirk RE"), which in turn pledged that interest to Pledgee as security for
certain obligations of Newkirk RE pursuant to a Pledge Agreement, dated June 30,
1998 ( the "Newkirk RE Pledge Agreement");

            WHEREAS, Newkirk RE later transferred its entire interest in Newkirk
GP to Newkirk Stock LLC, a Delaware limited liability company ("Stock"), which
in turn absolutely and irrevocably assumed and agreed, jointly and severally
with Newkirk RE, to pay, honor, perform and discharge, when due and owing, all
of the obligations, commitments, agreements and liabilities of Newkirk RE under
the Newkirk RE Pledge Agreement pursuant to that certain Assumption Agreement,
dated as of July 8, 1998 ("Assumption Agreement I");
<PAGE>

            WHEREAS, Holdings transferred its entire interest in Finco to
Newkirk Associates LLC, a Delaware limited liability company ("Associates"),
which in turn absolutely and irrevocably assumed and agreed, jointly and
severally with Holdings, to pay, honor, perform and discharge, when due and
owing, all of the obligations, commitments, agreements and liabilities of
Holdings under the Original Pledge Agreement pursuant to that certain Assumption
Agreement, dated as of July 8, 1998 ("Assumption Agreement II");

            WHEREAS, under an Agreement, dated January 1, 2000, Holdings
transferred its entire interest in Capital to Stock, which in turn absolutely
and irrevocably assumed and agreed, jointly and severally with Holdings and
Associates, to pay, honor, perform and discharge, when due and owing, all of the
obligations, commitments, agreements and liabilities of Holdings under the
Original Pledge Agreement pursuant to that certain Assumption and Ratification
Agreement, dated as of January 1, 2000, by and among Holdings, Stock and
Associates ("Assumption Agreement III", and collectively with Assumption
Agreement I and Assumption Agreement II, the "Assumption Agreements");

            WHEREAS, Pledgor and certain of its Affiliates (as defined below)
propose to enter into a series of transactions (the "MLP Transaction") pursuant
to which, among other things, certain of the assets of those Affiliates (as
defined below) will be transferred to or merged into Newkirk MLP, all as more
fully described in that certain Consent Solicitation Statement/Offering Circular
dated October 23, 2001, a copy of which is attached to the Amended and Restated
Cash Participation Agreement (as defined below);

            WHEREAS, as part of the MLP Transaction, Stock shall transfer its
entire interest in Newkirk GP and in Capital, and Associates shall transfer its
entire interest in Finco, to Pledgor and Pledgor shall acquire such interests
subject to Pledgee's existing liens;

            WHEREAS, in connection with the MLP Transaction, Administrator and
certain Affiliates (as defined below) of Pledgor are entering into certain
agreements, instruments and other documents, including, without limitation, (i)
a transaction agreement dated the date hereof (the "Transaction Agreement"),
(ii) an amendment and restatement of the Cash Participation Agreement dated
November 27, 1997 (such agreement as so amended and restated, the "Amended and
Restated Cash Participation Agreement"), (iii) an amendment, restatement and
combination of the Guaranty Agreements, dated November 27, 1997 and June 30,
1998, and (iv) an amendment and restatement of the Guaranty Letter of Credit
Agreement, dated November 27, 1997;

            WHEREAS, Newkirk MLP, pursuant to an Assumption Agreement of even
date herewith, assumed and agreed, jointly and severally with Holdings, Newkirk
RE, Stock and Associates, to pay, honor, perform and discharge, when due and
owing, all of the obligations of such entities under the Original Pledge
Agreement, the Newkirk RE Pledge Agreement and the Assumption Agreements;

            WHEREAS, in consideration of Administrator granting the consent
contained in the Transaction Agreement, Newkirk MLP has agreed to acknowledge
that it is acquiring its interest in each of Newkirk GP, Capital and Finco
subject to Pledgee's previously existing liens and, accordingly, to amend,
restate and combine the Original Pledge Agreement and the Newkirk RE Pledge
Agreement; and

            WHEREAS, Holdings, Newkirk RE, Stock and Associates additionally
desire to acknowledge and ratify their obligations under the Assumption
Agreements.
<PAGE>

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereby
amend, restate and combine the Original Pledge Agreement and the Newkirk RE
Pledge Agreement to read in their entirety as set forth in this Agreement:

1. Definitions. For the purposes of this Agreement, the following terms shall
have the following meanings:

            "Acceleration Premium" has the meaning assigned to it in that
certain Loan Agreement, dated November 20, 1997, between Administrator and
Finco, as amended, restated, supplemented or otherwise modified from time to
time.

            "Affiliate" has the meaning assigned to it in the Amended and
Restated Cash Participation Agreement.

            "Amended and Restated Cash Participation Agreement" has the meaning
assigned to it in the Recitals to this Agreement and shall include any
amendment, restatement, supplement or other modification to such Amended and
Restated Cash Participation Agreement.

            "Amended and Restated Guaranty Agreement" means that certain Amended
and Restated Guaranty Agreement, dated as of the date hereof, among Fund III,
Fund II, Holdings, Newkirk GP, Newkirk RE, Capital, Finco, Sue LLC ("Sue"), Jess
LLC ("Jess"), SkiKid LLC ("SkiKid"), the Selling Group and Administrator for
itself and as agent for the Selling Group, as amended, restated, supplemented or
otherwise modified from time to time.

            "Associates" has the meaning assigned to it in the Recitals of this
Agreement.

            "Buyers" means Finco, Capital, Newkirk GP, Newkirk RE, Jess, Sue,
SkiKid, Fund II, Fund III, Holdings, Stock, Associates, VNK Corp., Vornado
Newkirk LLC, Vornado Realty L.P. and their respective Affiliates.

            "Cash Participation" has the meaning ascribed thereto in the Amended
and Restated Cash Participation Agreement.

            "Capital" has the meaning assigned to it in the Recitals of this
Agreement.

            "Finco" has the meaning assigned to it in the Recitals of this
Agreement.

            "Fund II" has the meaning assigned to it in the Recitals of this
Agreement.

            "Fund III" has the meaning assigned to it in the Recitals of this
Agreement.

            "Future Financing Agreement" means that certain Future Financing
Agreement, dated as of November 20, 1997, among the Administrator for itself and
as agent for the Selling Group, Fund III, Holdings, Newkirk GP, Capital and
Finco, as amended, restated, supplemented or otherwise modified from time to
time.

            "Guaranty Letter of Credit" means has the meaning assigned to it in
that certain Amended and Restated Guaranty of Letter of Credit Agreement, dated
of even date herewith, among Fund III, Capital and Administrator LLC for itself
and as agent for the Selling Group as acknowledged and agreed to by Finco, as
amended, restated, supplemented or otherwise modified from time to time.
<PAGE>

            "Indemnification Agreement" means that certain Indemnification
Agreement, dated November 20, 1997, among Fund III, Fund II, Holdings, Newkirk
GP, Capital, Finco, the Selling Group, Administrator for itself and as agent for
the Selling Group, as amended, restated, supplemented or otherwise modified from
time to time.

            "Pledged Interests" means the Membership Interests, together with
all certificates, options, rights or other distributions issued as an addition
to, in substitution or in exchange for, or on account of, any such interests and
all income therefrom, and any proceeds of any of the foregoing.

            "Purchase Agreement" has the meaning assigned to it in the Recitals
of this Agreement.

            "Secured Obligations" shall mean any and all of the liabilities
and/or obligations of Pledgor, any of the Buyers and any of their respective
Affiliates and any of their respective successors and/or permitted assigns under
the Indemnification Agreement, the Amended and Restated Guaranty Agreement, this
Agreement or any other Transaction Document to which it is a party, including,
without limitation, obligations of any such person or entity (whether direct, as
obligor, or indirect, as guarantor) with respect to (i) providing Pledgee with
the Transfer Letter of Credit or the Guaranty Letter of Credit, (ii) the
Acceleration Premium, and (iii) the Cash Participation.

            "Transaction Documents" shall have the meaning ascribed to it in the
Amended and Restated Cash Participation Agreement.

            "Transfer Letter of Credit" has the meaning assigned to it in that
certain Transfer of Letter of Credit Agreement, dated November 20, 1997, among
Fund III, Capital and Administrator LLC for itself and as agent for the Selling
Group as acknowledged and agreed to by Finco, as amended, restated, supplemented
or otherwise modified from time to time.

2. Pledge and Creation of Security Interest. As security for the full, prompt
and complete payment, whether at stated maturity, by acceleration or otherwise
and performance of each of the Secured Obligations, Pledgor hereby pledges,
assigns, hypothecates, transfers and delivers to Pledgee, and grants to Pledgee
a security interest in and to, the Pledged Interests.

3. Delivery of Pledged Interests. Pledgor represents and warrants that it has
delivered physical possession of the Pledged Interests (to the extent the
Pledged Interests are evidenced by a certificate or other written document) to
Pledgee and that Pledgee's security interest is fully and properly perfected by
such possession, and Pledgor further represents and warrants that it has
delivered to Pledgee any other documentation such that Pledgee's security
interest is fully and properly perfected. Upon an Event of Default (as
hereinafter defined) which has occurred and is continuing, Pledgee shall have
the right, at any time in its discretion and without notice to Pledgor, to
transfer to or to register in the name of Pledgee or any of its nominees any or
all of the Pledged Interests. Simultaneously with the execution and delivery of
this Agreement, each of Newkirk GP, Finco and Capital has executed and delivered
a Control Agreement of even date herewith (each, a "Control Agreement" and,
collectively, the "Control Agreements"), with Pledgee and Pledgor, for the
purpose of perfecting the security interest granted by Pledgor in the Pledged
Interests to Pledgee, such that Pledgee's security interest is fully and
properly perfected. Pledgee shall not provide a direction to Capital, Finco and
Newkirk GP under the Control Agreements unless an Event of Default has occurred
and is continuing.
<PAGE>

4. Representations and Warranties. Pledgor represents, warrants and confirms to
Pledgee that:

            4.1 Pledgor is, and at the time of delivery of the Pledged Interests
to Pledgee pursuant to Section 2 hereof will be, the sole holder of record and
the sole beneficial owner of the Pledged Interests, free and clear of any lien
thereon or affecting the title thereto, except for the lien created by this
Agreement.

            4.2 Schedule B attached hereto sets forth a true and complete list
of all of the interests of Pledgor in the Membership Interests.

            4.3 All of the Pledged Interests have been duly authorized and
validly issued.

            4.4 None of the Pledged Interests have been issued or transferred in
violation of the securities registration, securities disclosure or similar laws
of any jurisdiction to which such issuance or transfer may be subject.

            4.5 The pledge, assignment and delivery of the Pledged Interests
pursuant to this Agreement is effective to create, and/or confirm, as the case
may be, and does create and/or confirm, as the case may be, a valid and
continuing first priority lien on and a first priority perfected security
interest in the Pledged Interests and the proceeds thereof, securing the payment
of the Secured Obligations, subject to no other lien of any kind.

            4.6 No security agreement, effective financing statement or
equivalent security or lien instrument or continuation statement covering all or
any part of the Pledged Interests is on file or of record in any public office,
except as may have been filed pursuant to this Agreement.

            4.7 The description of the various transfers of the Membership
Interests after November 20, 1997 through and including the date of this
Agreement set forth in the recitals to this Agreement is true and complete.

            4.8 Pledgor acquired the Membership Interests subject to Pledgee's
existing liens that were granted and existing pursuant to the Original Pledge
Agreement.

5. Covenants. Pledgor covenants and agrees that until such time as the Secured
Obligations are fully satisfied:

            5.1 Pledgor, without the written consent of Pledgee, shall not
create or knowingly permit the existence of any lien or security interest on the
Pledged Interests other than that created hereby or as permitted in accordance
with the Future Financing Agreement.

            5.2 Without the prior written consent of Pledgee, Pledgor will not
vote to enable, or take any other action to permit, the issuer of the Pledged
Interests to issue to Pledgor or any other person and/or entity any membership
interests or other equity securities of any nature or to issue to Pledgor any
other securities convertible into or granting the right to purchase or exchange
for any partnership interests or other equity securities of the issuer of the
Pledged Interests unless such membership interests or securities are pledged to
Pledgee as Pledged Interests hereunder.

            5.3 Pledgor will, at its expense, promptly and duly execute,
acknowledge and deliver all such instruments and documents and take all such
actions as Pledgee from time to time may request in order to ensure to Pledgee
the benefits of the liens on and to the Pledged Interests intended to be created
by this Agreement, including the filing of any necessary Uniform Commercial Code
financing statements, which may be filed by Pledgee with or without the
signature of Pledgor, and will cooperate with Pledgee, at Pledgor's expense, in
obtaining all necessary approvals and making all necessary filings under federal
or state law in connection with such liens or any sale or transfer of the
Pledged Interests.
<PAGE>

            5.4 Pledgor has and will defend the title to the Pledged Interests
and the liens of Pledgee thereon against the claim or claims of any person
and/or entity and will maintain and preserve such liens.

            5.5 If any amount payable under or in connection with the Pledged
Interests shall be or become evidenced by any promissory note, other instrument
or chattel paper, such note, instrument or chattel paper shall be immediately
delivered to Pledgee duly endorsed in a manner satisfactory to Pledgee to be
held as collateral pursuant to this Agreement.

            5.6 Pledgor agrees to pay, and to save Pledgee harmless from, any
and all liabilities with respect to, or resulting from any delay in paying, any
and all stamp, excise, sales or other taxes which may be payable or determined
to be payable with respect to the Pledged Interests or in connection with any of
the transactions contemplated by this Agreement, except for liabilities arising
out of Pledgee's willful misconduct or bad faith or breach of this Agreement.

            5.7 If Pledgor shall, as a result of its ownership of the Pledged
Interests, become entitled to receive or shall receive any certificate
(including, without limitation, any certificate representing a dividend or a
distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option
or rights, whether in addition to, in substitution of, as a conversion of, or in
exchange for any of the Pledged Interests, or otherwise in respect thereof,
Pledgor shall accept the same as Pledgee's agent, hold the same in trust for
Pledgee and deliver the same forthwith to Pledgee in the exact form received,
duly endorsed by Pledgor to Pledgee and, if required, together with an undated
assignment separate from certificate covering such certificate duly executed in
blank to be held by Pledgee hereunder as additional security for the Secured
Obligations.

            5.8 If Pledgor shall, on account of or in exchange for the Pledged
Interest, become entitled to receive or shall receive any additional interest in
any issuer of a Pledged Interest such interest shall become and be held as
additional security for the Secured Obligations. If Pledgor shall, as a result
of its ownership of such additional interest in any issuer of a Pledged
Interest, become entitled to receive or shall receive any certificate
(including, without limitation, any certificate representing a dividend or a
distribution in connection with any reclassification, increase or reduction of
capital or any certificate issued in connection with any reorganization), option
or rights, whether in addition to, in substitution of, as a conversion of, or in
exchange for any of such additional interest, or otherwise in respect thereof,
Pledgor shall accept the same as Pledgee's agent, hold the same in trust for
Pledgee and deliver the same forthwith to Pledgee in the exact form received,
duly endorsed by Pledgor to Pledgee and, if required, together with an undated
assignment separate from certificate covering such certificate duly executed in
blank to be held by Pledgee hereunder as additional security for the Secured
Obligations.

6. Pledgor's Rights. 6.1 As long as no default or Event of Default shall have
occurred and be continuing, Pledgor shall have the right, from time to time, to
vote and give consents with respect to the Pledged Interests or any part thereof
for all purposes not inconsistent with the provisions of this Agreement or the
other Transaction Documents; provided, however, that no vote shall be cast by
Pledgor, and no consent shall be given or action taken by Pledgor, which would
have the effect of impairing the position or interest of Pledgee in respect of
the Pledged Interests or which would authorize or effect the dissolution or
liquidation, in whole or in part, of the issuer of the Pledged Interests. No
vote shall be cast by Pledgor, and no consent shall be given or action taken by
Pledgor, which would authorize or effect any change in the rights of any
interest issued by the issuer of the Pledged Interests or the issuance of any
additional interests unless such changed interests or such additional interests
are pledged to Pledgee pursuant to a Pledge Agreement in the form of this
Agreement.
<PAGE>

            6.2 Unless and until an Event of Default shall have occurred and be
continuing, Pledgor shall be permitted to control the direction of and/or
receive all cash distributions paid to it or its designees by issuers of Pledged
Interests in accordance with the governing documents of the issuers of Pledged
Interests. At such time as an Event of Default has occurred and is continuing,
Pledgee shall control the direction of and/or receive the cash distributions to
be paid by the issuers of Pledged Interests in accordance with the governing
documents of the issuers of Pledged Interests.

7. Limitation on Duties Regarding Pledged Interests. Pledgee shall not be liable
for failure to demand, collect or realize upon any of the Pledged Interests or
for any delay in doing so and shall not be under any obligation to sell or
otherwise dispose of any Pledged Interests upon the request of Pledgor or
otherwise.

8. Powers Coupled with an Interest. All authorizations and agencies herein
contained with respect to the Pledged Interests are irrevocable and powers
coupled with an interest.

9. Waivers by Pledgor. Pledgor hereby:

            9.1 Waives, with respect to the Secured Obligations, grace, demand,
presentment, notice of dishonor and protest;

            9.2 Agrees that Pledgee, before proceeding against Pledgor under
this Agreement, shall not be bound to exhaust its recourse or take any action
against the Buyers or against any other person or entity, but Pledgee may make
such demands and take such actions as it deems advisable; and

            9.3 Agrees that Pledgee, without affecting the liability of Pledgor
under this Agreement, may with or without notice or consideration, release any
or all of the other Buyers or any person and/or entity liable for the Secured
Obligations.

10. Expenses Incurred by Pledgee. Pledgee is not required to, but may at its
option, pay any tax or other charge or expense payable by Pledgor with respect
to the Pledged Interests and any filing or recording fees, and any amounts so
paid shall be repayable by Pledgor upon demand. The pledge and security interest
granted by this Agreement shall also secure all of Pledgee's reasonable expenses
incurred in collecting, conserving, or protecting the Pledged Interests.

11. Events of Default. "Event of Default" means (a) an occurrence of a default
by Pledgor or any of the Buyers or any of their respective Affiliates in the due
performance, payment or observance of any term, covenant or agreement required
to be performed, paid or observed pursuant to the Indemnification Agreement, the
Amended and Restated Guaranty Agreement, this Agreement or the other Transaction
Documents, and any such person or entity fails to comply with the determination
and/or award of the arbitrator pursuant to arbitration as set forth in Section
24 of this Agreement or in any other Transaction Document in connection with
such default within fifteen (15) days after notice of such determination and/or
award, or (b) if any representation or warranty made by Pledgor or any Buyer or
any of their respective Affiliates in the Indemnification Agreement, the Amended
and Restated Guaranty Agreement, this Agreement, any other Transaction Document
or in any document, certificate or statement furnished pursuant to any such
document shall be false or misleading in any material respect, and Pledgor or
any Buyer or any of their respective Affiliates fails to comply with the award
of the arbitrator pursuant to arbitration as set forth in Section 24 of this
Agreement or in any such other documents with respect to such false or
misleading representation or warranty within fifteen (15) days after notice of
such award. For the purposes hereof, upon full satisfaction and compliance with
the award rendered by the arbitrator in accordance with Section 24 herein or
such other document with respect to (i) any default as described in this Section
11 (a) above, or (ii) false or misleading representation or warranty as
described in this Section 11 (b) above, such default or false or misleading
representation or warranty shall be deemed cured.
<PAGE>

            If an Event of Default shall occur and be continuing and Pledgee
shall give prior notice of its intent to exercise such rights to Pledgor
(provided such notice is not rescinded by Pledgee): (a) Pledgee shall have the
right to receive any and all cash distributions paid in respect of the Pledged
Interests and make application thereof to the Secured Obligations in such order
as it may determine, (b) Pledgee shall become the managing member of the issuer
of the Pledged Interests and otherwise the holder of all voting and management
rights of the issuer of the Pledged Interests, and shall receive the rights and
obligations in connection therewith, and (c) all of the Pledged Interests shall
thereafter be registered in the name of Pledgee or its nominee, and Pledgee or
its nominee may thereafter exercise (i) all voting, partnership, membership,
consensual and other rights pertaining to the Pledged Interests at any meeting
of the issuer of the Pledged Interests or otherwise and all other interests in
the issuer of the Pledged Interests that are not then owned by Pledgee shall
cease to be voting interests, and (ii) any and all rights of conversion,
exchange, subscription and any other rights, privileges or options pertaining to
the Pledged Interests as if it were the absolute owner thereof (including,
without limitation, the right to exchange, at its discretion, any and all of the
Pledged Interests upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the structure of the issuer of
the Pledged Interests, or upon the exercise by Pledgor or Pledgee of any right,
privilege or option pertaining to the Pledged Interests, and in connection
therewith, the right to deposit and deliver any and all of the Pledged Interests
with any committee, depository, transfer agent, registrar or other designated
agency upon such terms and conditions as it may determine), Pledgor hereby
irrevocably constituting and appointing Pledgee as the proxy and
attorney-in-fact of Pledgor, with full power of substitution to do so, and which
shall remain in effect until the Secured Obligations are fully satisfied.

12. Remedies. 12.1 If an Event of Default shall occur and be continuing, Pledgee
may exercise, in addition to all other rights and remedies granted in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Secured Obligations, all rights and remedies of a secured party
under the Uniform Commercial Code of the State of New York.

            12.2 Without limiting the generality of the foregoing, Pledgee
without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law or
referred to below or in Section 11 (Events of Default)) to or upon Pledgor or
the issuer of the Pledged Interests, may in such circumstance, forthwith
collect, receive, appropriate and, realize upon the Pledged Interests, or any
part thereof, and/or may forthwith sell, assign, give option or options to
purchase or otherwise dispose of and deliver the Pledged Interests or any part
thereof (or contract to do any of the foregoing), in one or more parcels at
public or private sale or sales, in the over-the-counter market, at any exchange
broker's board or at Pledgee's offices or elsewhere upon such terms and
conditions as it may deem advisable and at such prices as it may deem best, for
cash or on credit or for future delivery without assumption of any credit risk.
Pledgee shall have the right upon any such public sale or sales and, to the
extent permitted by law, upon any such private sale or sales to purchase the
whole or any part of the Pledged Interests so sold, free and clear of any right
or equity of redemption in Pledgor, which right or equity is hereby waived or
released to the extent not prohibited by law. To the extent permitted by
applicable law, Pledgor waives all claims, damages and demands it may acquire
against Pledgee arising out of the good faith exercise by Pledgee of any of its
rights hereunder. If any notice of a proposed sale or other disposition of
Pledged Interests shall be required by law, notice shall be deemed reasonable
and proper if given at least ten (10) days before such sale or other
disposition.
<PAGE>

            12.3 Pledgor recognizes that Pledgee may be compelled to resort to
one or more private sales of the Pledged Interests to a restricted group of
purchasers which will be obliged to agree, among other things, to acquire such
securities for their own account for investment and not with a view to the
distribution or resale thereof. Pledgor acknowledges and agrees that any such
private sale may result in prices and other terms less favorable to Pledgee than
if such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale made in accordance with the requirements of the
applicable sections of the Uniform Commercial Code of the State of New York as
in effect shall not be deemed to have been made in a commercially unreasonable
manner merely because it was a private sale.

            12.4 Pledgor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make any sale or sales of all or
any portion of the Pledged Interests valid and binding and in compliance with
any and all applicable requirements of law. Pledgor further agrees that a breach
of any of the covenants contained herein will cause irreparable injury to
Pledgee, that Pledgee has no adequate remedy at law in respect of such breach
and, as consequence, agrees that each and every covenant contained herein shall
be specifically enforceable against Pledgor, and Pledgor hereby waives and
agrees not to assert any defense against an action for specific performance of
such covenants, except for a defense that no default with respect to the Secured
Obligations has occurred.

13. Application of Proceeds. From and after the occurrence of an Event of
Default, Pledgee shall apply the net proceeds of any collection, recovery,
receipt, appropriation, realization or sale of any of the Pledged Interests as
Pledgee may determine.

14. No Waiver, Cumulative Remedies. No delay on Pledgee's part in exercising any
power of sale, lien, option or other right hereunder, and no notice or demand
which may be given to or made upon Pledgor by Pledgee with respect to any power
of sale, lien, option or other right hereunder, shall constitute a waiver
thereof, or limit or impair Pledgee's right to take any action or to exercise
any power of sale, lien, option, or any other right hereunder, without notice or
demand, or prejudice Pledgee's rights as against Pledgor in any respect. The
rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies
provided by law.

15. Continuing Agreement and Security Interest. This Agreement shall be a
continuing agreement and shall irrevocably apply to all the dealings and
transactions heretofore or hereafter had between Pledgee and Pledgor relating to
the subject matter hereof unless Pledgor and Pledgee shall otherwise expressly
agree in writing signed by Pledgor and Pledgee. Pledgee may assign or transfer
the whole or any part of the Secured Obligations, and may transfer therewith as
collateral security the whole or any part of the Pledged Interests; all
obligations, rights, powers and privileges herein provided shall inure to the
benefit of the assignee and shall bind the heirs, executors, administrators,
successors or assigns of the parties hereto.

16. Irrevocable Authorization. Pledgor hereby authorizes and instructs the
issuer of the Pledged Interests to comply with any instruction received by it
from Pledgee in writing that (a) states that an Event of Default has occurred
hereunder and (b) is otherwise in accordance with the terms of this Amended and
Restated Pledge Agreement, without any other or further instructions from
Pledgor, and Pledgor agrees that the issuer of the Pledged Interests shall be
fully protected in so complying.
<PAGE>

17. Termination. Immediately following the later to occur of (i) November 20,
2007, (ii) full satisfaction of the Cash Participation, and (iii) full
satisfaction of the Acceleration Premium, and subject to the provisions of this
Agreement, Pledgee shall deliver to pledgor the Pledged Interests to the extent
such Pledged Interests are in Pledgee's possession at such time, and all
instruments of assignment executed in connection therewith, free and clear of
the liens hereof and, except as otherwise provided herein, all of Pledgor's
obligations hereunder shall at such time terminate.

18. Lien Absolute. All rights of Pledgee hereunder, and all obligations of
Pledgor hereunder, shall be absolute and unconditional irrespective of:

            18.1 any lack of validity or enforceability of the Transaction
Documents;

            18.2 any change in the time, manner or place of payment of, or in
any other term of, all or any part of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Transaction
Documents;

            18.3 any exchange, release or non-perfection of any other
collateral, or any release or amendment or waiver of or consent to departure
from any guaranty, for all or any of the Secured Obligations; or

            18.4 any other circumstance which might otherwise constitute a
defense available to, or a discharge of, Pledgor.

19. Release. Pledgor consents and agrees that Pledgee may at any time, or from
time to time, in its discretion (a) renew, extend or change the time of payment,
and/or the manner, place or terms of payment of all or any part of the Secured
Obligations and (b) exchange, release and/or surrender all or any of the Pledged
Interests, or any part thereof, by whomsoever deposited, which is now or may
hereafter be held by Pledgee in connection with all or any of the Secured
Obligations; all in such manner and upon such terms as Pledgee may deem proper,
and without notice to or further assent from Pledgor, it being hereby agreed
that Pledgor shall be and remain bound upon this Agreement, irrespective of the
existence, value or condition of any of the Pledged Interests, and
notwithstanding any such change, exchange, settlement, compromise, surrender,
release, renewal or extension. Pledgor hereby waives notice of acceptance of
this Agreement, and also presentment, demand, protest and notice of dishonor of
any and all of the Secured Obligations, and promptness in commencing suit
against any party hereto or liable hereon, and in giving any other notice to or
of making any claim or demand hereunder upon any Pledgor. No act or omission of
any kind on Pledgee's part shall in any event affect or impair this Agreement.

20. Indemnification. Pledgor agrees to indemnify and hold Pledgee harmless from
and against any and all costs and expenses, including, without, limitation,
taxes and reasonable attorney's fees and disbursements, in connection with the
foreclosure of the lien on and security interest in each and all of the Pledged
Interests provided for herein. Pledgor agrees to pay any and all costs and
expenses incurred by Pledgee, but not in excess of $5,000, in connection with
any filings necessary to perfect the lien on and security interest in each and
all of the Pledged Interests, or to maintain the effectiveness of such perfected
security interests, in accordance with those certain Pledge Agreements set forth
on Schedule C attached hereto. The obligations of Pledgor under this Section 20
shall survive the termination of this Agreement.
<PAGE>

21. Reinstatement. This Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against Pledgor for
liquidation or reorganization, should Pledgor or any obligor in respect of
Secured Obligations become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any
significant part of such Pledgor's assets, and shall continue to be effective or
be reinstated, as the case may be, if at any time payment and performance of the
Secured Obligations, or any part thereof, is, pursuant to applicable law,
rescinded or reduced in amount, or must otherwise be restored or returned by any
obligee of the Secured Obligations, whether as a "voidable preference",
"fraudulent conveyance", or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Secured Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

22. Future Financing Agreement. Notwithstanding anything to the contrary
contained herein, this Agreement shall be subject to the terms and conditions of
the Future Financing Agreement and any subordination agreement to be entered
into in connection therewith.

23. Notice. Any notice or other communication under this Agreement shall be in
writing and shall be considered given when (a) sent by telecopier, with receipt
confirmed, (b) delivered personally, or (c) one business day after being sent by
recognized overnight courier, to the parties at the addresses set forth below
(or at such other address as a party may specify by notice to the other):

            (a)      If to Pledgor:

                             The Newkirk Master Limited Partnership
                             7 Bulfinch Place, Suite 500
                             Boston, MA 02114
                             Telecopier: 617-570-4746
                                     And

                             c/o Winthrop Financial Services
                             100 Jericho Quadrangle
                             Jericho, New York 11753
                             Attention: Michael Ashner
                             Telecopier: 212-261-4060

            with a copy to:

                             Rosenman & Colin LLP
                             575 Madison Avenue
                             New York, New York 10022
                             Attention: Mark I. Fisher, Esq.
                             Telecopier:  212-940-8776

            and

                             Apollo Advisors, L.P.
                             1999 Avenue of the Stars, Suite 1900
                             Los Angeles, CA 90067
                             Attention: Michael D. Weiner, Esq., General Counsel
                             Telecopier: 310-201-4166

<PAGE>

            (b)      If to Pledgee:

                             Administrator LLC
                             c/o Millennium Capital Management LLC
                             70 East 55th Street
                             New York, New York 10022
                             Attention: Mr. Jay Chazanoff
                             Telecopier: 212-376-8989

            and

                             Administrator LLC
                             c/o Proskauer Rose LLP
                             1585 Broadway
                             New York, New York 10036
                             Attention: Wendy J. Schriber, Esq.
                             Telecopier: 212-969-2900

            with a copy to:

                             Proskauer Rose LLP
                             1585 Broadway
                             New York, New York 10036
                             Attention: James D. Meade, Esq.
                             Telecopier: 212-969-2900

            However, the parties hereto shall have the right from time to time
and at any time to change their respective addresses or the persons to which
such notice shall be sent, and each shall have the right to specify as the
person to which notice shall be sent or its address any other person or address
within the United States by at least ten (10) days' written notice to the other
party.

24. Arbitration. (a) Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by arbitration to be held in
the City of New York in accordance with the rules of the American Arbitration
Association then in effect, subject to Section 24(b) below. There shall be one
arbitrator appointed in accordance with those rules. As part of his award, the
arbitrator shall make a fair allocation between the parties of the fee and
expenses of the American Arbitration Association and the cost of any transcript,
taking into account the merits of their claims and defenses. The arbitrator
shall render his award within thirty (30) days after the commencement of the
arbitration; provided, however, no failure on the part of the arbitrator to
render his award within such thirty (30) day period shall constitute a release
from liability or otherwise affect the liability of any party hereto. Failure by
either party to submit to arbitration under this paragraph shall result in the
arbitrator ruling in favor of the other party if such other party has submitted
to arbitration under this paragraph. Judgment may be entered on the arbitrator's
award in any court having jurisdiction, and the parties irrevocably consent to
the jurisdiction of the New York courts for that purpose. The arbitrator may
grant injunctive or other relief. Nothing in this Section 24(a) shall preclude
any party from seeking temporary injunctive relief from a court of competent
jurisdiction pending appointment of an arbitrator pursuant to this Section
24(a).

            (b) In connection with any arbitration under the preceding Section
24(a), to the extent that the subject of the arbitration is the determination of
an amount that is due by any party, each party shall submit to the arbitrator

<PAGE>

its estimate of such amount within ten (10) days after the appointment of the
arbitrator. The arbitrator shall be charged solely with determining, within ten
(10) days after expiration of the period during which the parties are to submit
their respective estimates, which estimate is closest to the amount that is due
and shall award the amount of that estimate to the party to whom it is due;
except that, if the larger of the two estimates is equal to or less than 120% of
the smaller of the two estimates, the amount to be awarded by the arbitrator
shall be the average of the two estimates. No failure on the part of the
arbitrator to make such determination within such ten (10) days shall constitute
a release from liability or otherwise affect the liability of any party hereto.
If either party fails to timely submit an estimate under this 24(b), the
estimate of the other party shall be awarded by the arbitrator to the party to
whom it is due.

25. Non-Recourse. Notwithstanding anything to the contrary contained in this
Agreement, any other Transaction Document or any other document referred to
herein or therein, recourse for any breach of any and all obligations and duties
hereunder by the Selling Group or Administrator LLC, for itself, and as agent
for the Selling Group, shall be had only against those individuals of the
Selling Group set forth on Schedule D attached hereto (the "Protecting
Partners"). Each of the Protecting Partners shall be jointly and severally
liable for any and all obligations and duties of the Selling Group and
Administrator LLC, for itself and as agent for the Selling Group hereunder.
Pledgor hereby agrees that those individuals of the Selling Group who are not
also Protecting Partners shall not be liable for any of the obligations or
duties hereunder and shall be absolved or any and all liabilities relating
thereto.

26. Miscellaneous.

            26.1 Entire Agreement. This Agreement embodies the entire agreement
and understanding between the parties hereto relating to the subject matter
hereof and supercedes all prior agreements and understandings to the extent it
relates to that subject matter, and it is agreed that there are no terms,
understandings, representations, or warranties, express or implied, other than
those set forth herein.

            26.2 No Waiver. No failure or delay on the part of any party hereto
in exercising any right, power or privilege under this Agreement, any other
Transaction Document or any document referred to herein or therein or
contemplated hereby or thereby and no course of dealing between the parties
hereto shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, power or privilege under this Agreement, or any other
Transaction Document or any document referred to herein or therein or
contemplated hereby or thereby preclude any other or further exercise thereof or
the exercise of any other right, power or privilege hereunder or thereunder. The
rights, powers and remedies under this Agreement, or any other Transaction
Document or any document referred to herein or therein or contemplated hereby or
thereby expressly provided are cumulative with and not exclusive of any rights,
powers or remedies which any party hereto would otherwise have. No notice to or
demand on any party hereto in any case shall, ipso facto, entitle such party to
any other or further notice or demand in similar or other circumstances or
constitute a waiver of the rights of the other party to any other or further
action in any circumstances without notice or demand where notice or demand is
not otherwise required.

            26.3 Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS
ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND
PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING
CONFLICT OF LAWS, AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.
<PAGE>

            26.4 Partial Invalidity. If any provision of this Agreement, or the
application thereof to any particular party or circumstance, shall to any extent
be invalid or unenforceable, the remainder of this Agreement, or the application
of such provision to any other particular party or circumstance, shall not be
affected thereby and each remaining provision of this Agreement, or the
application of such provision to any particular party or circumstance, shall be
valid and enforceable.

            26.5 Gender. All pronouns and any variations of pronouns herein
shall be deemed to refer to the masculine, feminine, or neuter, singular or
plural, as the identity of the parties may require. Whenever the terms herein
are singular, the same shall be deemed to mean the plural, as the identity of
the parties or the context requires and vice versa.

            26.6 Captions. The captions or titles given to any provision of this
Agreement are for convenience and reference only and shall in no way define,
limit or describe the scope or intent of this Agreement and in no way affect or
constitute a part of this Agreement.

            26.7 Schedules and Exhibits. All schedules and exhibits attached
hereto are hereby incorporated herein by this reference and made a part hereof
for all purposes.

            26.8 Third Party Beneficiary. This Agreement is for the purpose of
defining the respective rights and obligations of the parties hereto and is not
for the benefit of any creditor or other third party.

            26.9 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall constitute a duplicate original, but all of
which together shall constitute one and the same instrument.

            26.10 Successors and Assigns; Assignment. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, personal representatives, successors and assigns. Each party to this
Agreement may assign all or any portion of its interest hereunder, provided that
(i) each assignment shall expressly be made subject to the provisions of this
Section 26.10, and (ii) simultaneously with such assignment, the assignee shall
expressly assume all duties, obligations and liabilities relating to the
assigned interests. The assignee shall execute, acknowledge (when applicable)
and deliver to each other party to this Agreement an agreement whereby the
assignee (x) assumes all obligations, duties and liabilities of the assigning
party to the extent of the interest being assigned pursuant to such assignment,
(y) to the extent of the interests being assigned, agrees to be personally bound
by and upon all covenants, agreements, terms, provisions and conditions hereof
on the part of the assigning party to be performed or observed, and (z) agrees
that the provisions of this Section 26.10 shall continue in full force and
effect and be binding upon the assignee. Any assignment of interests in this
Agreement made without full compliance with the preceding sentence shall be null
and void for all purposes. Notwithstanding anything contained herein, in any
other Transaction Document or any document referred to herein or therein or
contemplated hereby or thereby (including without limitation, the assumption
requirements of the second sentence of this Section 26.10), in no event shall
any assignment by any party hereto of its interests (or any part thereof) under
this Agreement (i) modify or limit any right or power of any other party
hereunder or (ii) affect or reduce any obligation, duty or liability of the
assigning party, and all obligations, duties and liabilities of the assigning
party under this Agreement shall continue in full force and effect as
obligations, duties and liabilities of a principal and not of a guarantor or
surety, enforceable against the assigning party as a principal, as though no
assignment or assumption had been made. Nothing in this Section 26.10 shall be
construed to modify the non-recourse provisions of Section 25 of this Agreement.
<PAGE>

            26.11 Further Assurances. At any time, and from time to time after
the date hereof, each of the parties hereto shall, without further consideration
and at their own cost and expense, execute and deliver such additional
agreements, instruments, documents or certificates as shall reasonably be
requested by any other party in order to carry out the provisions of this
Agreement.

            26.12 No Oral Modification. Neither this Agreement nor any term
hereof may be changed, waived, discharged or terminated unless such change,
waiver, discharge or termination is in writing and signed by each of the parties
hereto.

            26.13 Release. Any party liable under or in respect of this
Agreement, any other Transaction Document or any document referred to herein or
therein or contemplated hereby or thereby may be released without affecting the
liability of any party not so released.

            26.14 No Offset. Without limiting any other provision of this
Agreement, Pledgors shall have no right of offset for any default, breach or
other non-performance of any obligation under that certain Loan Agreement, dated
as of November 20, 1997, as amended, between Finco and Administrator (the "Loan
Agreement"), the Promissory Note (as defined in the Loan Agreement), the
Tri-Party Agreement (as defined in the Loan Agreement) or that certain Pledge
Agreement, dated November 20, 1997, as amended, made by Administrator in favor
of Finco (the "Administrator Pledge Agreement") (including, without limitation,
the non-payment of any principal of, or interest on, the Loan (as defined in the
Loan Agreement)). Accordingly, all amounts payable in respect of this Agreement,
any other Transaction Document or any agreement, instrument or other document
executed in connection herewith or therewith, shall be paid in full without any
deduction or offset on account of any default, breach or other non-performance
of any obligation under the Loan Agreement, the Promissory Note, the Tri-Party
Agreement or the Administrator Pledge Agreement (including, without limitation,
the non-payment of any principal of, or interest on, the Loan). Nothing in this
Section 26.14 shall modify or otherwise affect any right of offset that any
party to this Agreement (or any Affiliate of any party to this Agreement) may
otherwise have against any other party to this Agreement (or any Affiliate of
any other party to this Agreement) for any default, breach or other
non-performance of any obligation under any Transaction Document other than the
Loan Agreement, the Promissory Note, the Tri-Party Agreement and the
Administrator Pledge Agreement.

            27. Pledgor hereby represents and warrants to Pledgee that Pledgor
is an entity organized under the laws of the State of Delaware and that
Pledgor's name as set forth in the signature page to that certain Omnibus
Amendment and Termination Agreement dated as of January 1, 2001, among Pledgor,
Pledgee and certain other parties named therein is its full legal name. Pledgor
covenants and agrees that it shall not change its name or permit its
jurisdiction of organization to be any jurisdiction other than the State of
Delaware by operation of law, by merger or consolidation or otherwise without
first giving Pledgee at least 30 days' prior written notice of such change.

                                  [End of Text]
<PAGE>

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

PLEDGEE:              ADMINISTRATOR LLC, a Delaware
                      limited liability company, for itself and as
                      agent for the parties listed on Schedule A attached hereto

                      By: /s/
                          ------------------------------------
                          Name:
                          Title:

PLEDGOR:              THE NEWKIRK MASTER LIMITED PARTNERSHIP

                      By: MLP GP LLC
                          General Partner

                          By: NEWKIRK MLP CORP.
                              MANAGER

                              By: /s/ Peter Braverman
                                  -------------------------
                                  Peter Braverman
                                  Executive Vice President
<PAGE>

                        ACKNOWLEDGEMENT AND RATIFICATION

Each of Holdings, Newkirk RE, Stock and Associates covenants and agrees for the
benefit of Pledgee, as follows:

      1. All references in any Assumption Agreement to the Original Pledge
Agreement or the Newkirk RE Pledge Agreement shall mean and refer to the Amended
and Restated Pledge Agreement to which this Acknowledgment and Ratification is
attached.

      2. All terms, conditions, duties and obligations contained in any
Assumption Agreement, as such terms, conditions, duties and obligations are
applicable to any of the undersigned parties, shall remain in full force and
effect.

      3. All the terms, conditions, duties and obligations contained in any
Assumption Agreement, as such terms, conditions, duties and obligations are
applicable to any of the undersigned parties, are hereby ratified and
reaffirmed.

                                       NEWKIRK NL HOLDINGS LLC
                                       NEWKIRK RE HOLDINGS LLC

                                       By: NEWKIRK MANAGER (NV) CORP.
                                           MANAGER

                                           By: /s/ Peter Braverman
                                               ---------------------------------
                                               Peter Braverman
                                               Executive Vice President

                                       NEWKIRK STOCK LLC
                                       NEWKIRK ASSOCIATES LLC

                                       By: NEWKIRK MANAGER CORP.
                                           MANAGER

                                           By: /s/ Peter Braverman
                                               ---------------------------------
                                               Peter Braverman
                                               Executive Vice President

<PAGE>

                                   Schedule A

                                  SELLING GROUP

William Adair                                   Creighton Lacey-Baker
Richard Ader                                    Gerard Lavin
Stephen Benvenuto                               Herbert Liechtung
Geoffrey Bobroff                                Joseph A. Lucus
Jay Chazanoff                                   Sanford Merkin
Philip Cohen                                    Stephen Mintz
Daniel Davis                                    Kes Narbutas
David Dietz                                     Donald Olsen
Harvey P. Eisen                                 Joel Pashcow
Benjamin Fein                                   Stanley Rappoport
John Filoon, Jr.                                Robert J. Rosen
Nancy Frankel                                   Richard Rosenbaum
Abraham Gelber                                  Elliot Roth
Arthur Goldberg                                 Frank Savage
Herbert Goldberg                                David Silvers
Marvin Goldklang                                Craig Singer
Stephen Goldsmith                               Alan Wiener
James R. Greene                                 Douglas H. Wood
Joel Kagan                                      Bernard Zises
Leonard Kanarek                                 Jay Zises
Marvin Kenigsberg                               Selig A. Zises
Gary W. Krat                                    Seymour Zises
Jeffrey Krauss

<PAGE>

                                   Schedule B

                 PLEDGOR'S INTERESTS IN THE MEMBERSHIP INTERESTS

                   100% Membership Interest in Newkirk GP LLC
                  100% Membership Interest in Newkirk Finco LLC
                50.01% Membership Interest in Newkirk Capital LLC
<PAGE>

                                   Schedule C

                                PLEDGE AGREEMENTS

Pledge Agreement, dated November 20, 1997, from Apollo Real Estate Investment
III, L.P. to Administrator LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from WEM-Brynmawr Associates to
Administrator LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from Newkirk GP LLC to Administrator
LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from Newkirk Capital LLC to
Administrator LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from Sue LLC to Administrator LLC,
for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from Jess LLC to Administrator LLC,
for itself and as agent for the Selling Group.

Pledge Agreement, dated November 20, 1997, from SkiKid LLC to Administrator LLC,
for itself and as agent for the Selling Group.

Pledge Agreement, dated June 30, 1998, from Newkirk RE Holdings LLC to
Administrator LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated the date hereof, from The Newkirk Master Limited
Partnership, to Administrator LLC, for itself and as agent for the Selling
Group.

Pledge Agreement, dated the date hereof, from VNK Corp. to Administrator LLC,
for itself and as agent for the Selling Group.

Pledge Agreement, dated the date hereof, from Newkirk NL Holdings LLC to
Administrator LLC, for itself and as agent for the Selling Group.

Pledge Agreement, dated the date hereof, from Vornado Newkirk L.L.C. to
Administrator LLC, for itself and as agent for the Selling Group.
<PAGE>

                                   Schedule D

                               PROTECTING PARTNERS

Richard Ader                                    Stephen Mintz
Stephen Benvenuto                               Donald Olsen
Jay Chazanoff                                   Joel Pashcow
Philip Cohen                                    Robert J. Rosen
Daniel Davis                                    Elliot Roth
Nancy Frankel                                   David Silvers
Arthur Goldberg                                 Douglas H. Wood
Herbert Goldberg                                Bernard Zises
Marvin Goldklang                                Jay Zises
James R. Greene                                 Selig A. Zises
Leonard Kanarek                                 Seymour Zises
Gary W. Krat

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