Document:

<PAGE>

                        AMENDMENT TO EMPLOYMENT AGREEMENT

                  This AMENDMENT TO EMPLOYMENT AGREEMENT (this "Amendment"),
made as of December 20, 2002, is by and between Insignia Financial Group, Inc.,
a Delaware corporation (the "Company"), and ANDREW LAWRENCE FARKAS (the
"Executive").

                  WHEREAS, the Executive is presently employed by the Company
pursuant to an Employment Agreement between the Company and the Executive,
entered into on May 18, 2000 (the "Agreement"); and

                  WHEREAS, the Executive and the Company desire to amend the
Agreement as hereinafter set forth.

                  NOW, THEREFORE, for good and valuable consideration, the
Executive and the Company agree as follows:

         1.       DEFINED TERMS; EFFECTIVE DATES. All capitalized terms used
but not otherwise defined herein shall have the meanings ascribed thereto in the
Agreement. Except as otherwise specifically set forth below, all amendments to
the Agreement made herein shall be effective as of January 1, 2003.

         2.       AMENDMENT TO SECTION 1 OF THE AGREEMENT. Section 1 of the
Agreement is amended as follows:

                  (a) "2002" is replaced with "2005" throughout that Section,
thereby defining the Expiration Date as December 31, 2005, subject to earlier
termination as set forth in the Agreement; and

                  (b) As of January 1, 2003, the "Effective Date" shall be
defined as "January 1, 2003". Accordingly, all benefits, consideration,
restrictions and/or obligations with a duration measured from the "Effective
Date" shall thereafter be measured from January 1, 2003.

         3.       AMENDMENT TO SECTION 4(C) OF THE AGREEMENT. Section 4(c) of
the Agreement is deleted in its entirety and replaced with the following:

                  "(c) ANNUAL PERFORMANCE BONUS UNDER EXECUTIVE PERFORMANCE
         INCENTIVE PLAN. With respect to each calendar year during the
         Employment Period commencing after January 1, 2003, the Executive shall
         be eligible to receive an annual performance bonus (the "Annual EPIP
         Bonus") under the Company's 2003 Executive Performance Incentive Plan
         (the "2003 EPIP") up to a maximum amount of $4,000,000. The Executive's
         Annual EPIP Bonus for each calendar year, if any, shall be payable by
         March 15th of the following year. The actual amount of the Annual EPIP
         Bonus will be earned in four tranches with each tranche to be earned
         based on separate performance thresholds depending on whether or not
         those separate thresholds are achieved. The amount payable (if earned)
         under the first threshold in respect of any calendar year shall

<PAGE>

         be equal to $1,500,000 and shall be recoupable from all cash amounts
         paid by the Company in respect of that calendar year as payment(s) in
         respect of real estate promote participations, interests or
         assignments; other Annual EPIP Bonus payments earned (if any) upon
         achieving the second, third or fourth thresholds for such calendar
         year, a cash payment in connection with the equity grants described in
         Section 4(h), and/or an Extraordinary Transaction Payment or Material
         Asset Disposition Bonus (each as defined below) and any other cash
         amount payable by the Company in respect of the year in which such
         Advances are made other than base salary. In addition to the above,
         during the 2003 calendar year, the Executive shall also be eligible to
         receive a special one-time performance bonus under the 2003 EPIP in the
         amount of $375,000 to be paid (if earned) in one lump sum no later than
         August 15, 2003 (the "Special Bonus"). Notwithstanding the immediately
         preceding sentence, in the event an Extraordinary Transaction (as
         defined in Section 8 of the Agreement) occurs prior to April 1, 2003,
         the Executive shall not be entitled to receive the Special Bonus."

         4.        AMENDMENT TO SECTION 4(D) AND 4(E) OF THE AGREEMENT.
Section 4(d) of the Agreement is deleted in its entirety. Section 4(e) of the
Agreement is amended in its entirety to read as follows:

                   "(e)    Discretionary Bonus. In addition to the Annual EPIP
                           Bonus, the Compensation Committee may also elect to
                           pay the Executive such additional amounts in respect
                           of his performance in a calendar year during the
                           Employment Period as it shall determine are
                           appropriate."

         5.        AMENDMENT TO SECTION 4(F) OF THE AGREEMENT. Effective
August 1, 2002, the first sentence of Section 4(f) of the Agreement is deleted
in its entirety and replaced with the following:

                  "Until July 30, 2002, the Company shall pay $375,000 (each
                  such payment being herein referred to as an "Advance") to the
                  Executive on the first day of each calendar quarter during
                  each calendar year of the Employment Term, commencing as of
                  January 1, 2000 and ending on July 1, 2002."

         6.       AMENDMENT TO SECTION 4(K) OF THE AGREEMENT. Section 4(k) of
the Agreement is amended by replacing the references therein to "Section (i)" to
"Section (k)."

         7.       AMENDMENT TO SECTION 4(R) OF THE AGREEMENT. Section 4(r) of
the Agreement is amended to replace the current last sentence of that section
with the following:

                  "Notwithstanding the foregoing, any other provision of this
                  Agreement or any provision of Exhibit A, with regard to Equity
                  Grants, in the event of a Death Termination Event or the
                  occurrence of an Extraordinary Transaction, an Influence
                  Change Event, or an Extraordinary Stock Event

                                       2
<PAGE>

         (whether or not resulting in a termination of the Executive's
         employment), then all Equity Grants that have been previously granted
         to the Executive will immediately vest and be exercisable by the
         Executive (or his estate, as the case may be). Except as specifically
         provided above, nothing herein is intended to modify the separate
         vesting provisions that relate to the Equity Grants referred to in
         Section 4(h) above and set forth in Exhibit A."

         8.       RETENTION BONUS. The Executive shall be eligible to receive a
performance-based retention bonus under the Company's 2003 EPIP in the amount of
$1,820,000 to be paid (if earned) in installments from, and to the extent of,
any Net Promote Proceeds (as defined below) within a reasonable time after such
Net Promote Proceeds are received by the Company from time to time until the
$1,820,000 is paid (if earned) (the "EPIP Retention Bonus"). For purposes of
this Amendment, the term "Net Promote Proceeds" shall mean 33.5% of the
aggregate proceeds actually received by the Company, if any, commencing on April
1, 2002 and continuing through the date of the final liquidation or sale of the
Opportunity Partnerships (as defined below) or their respective asset management
entities, from its promote participations in the Insignia Opportunity Partners
and/or Insignia Opportunity Partners II (collectively, the "Opportunity
Partnerships"), until such time as the Executive has received $320,000 of such
bonus, and, thereafter "Net Promote Proceeds" shall mean 67% of the aggregate
proceeds actually received by the Company, if any, commencing on April 1, 2002
and continuing through the date of the final liquidation or sale of the
Opportunity Partnerships (as defined above) or their respective asset management
entities, from its promote participations in the Opportunity Partnerships until
the Executive has received the remainder of the $1,820,000 in the aggregate. The
Net Promote Proceeds shall not include any return the Company earns on any
actual investment by the Company in the Opportunity Partnerships nor any fees
received by the Company in respect of acquisition or asset management services.
Notwithstanding the above, in the event of an Extraordinary Transaction (as
defined in Section 8 of the Agreement) prior to the end of the performance
period under the 2003 EPIP relating to the EPIP Retention Bonus, the Executive
shall be entitled to receive the EPIP Retention Bonus at the time or times set
forth above.

         9.       AMENDMENT TO PROMISSORY NOTE. Effective August 1, 2002, the
last sentence of Section 1(a) of the Promissory Note, dated March, 2002, made
by the Executive payable to the order of the Company in the principal amount of
$1,500,000 is amended to add the following phrase at the end thereof:

                  "and Obligor also agrees that such interest payments may be
                  deducted automatically by IFG from any proceeds the Obligor
                  receives from any annual bonus payments payable to the Obligor
                  by the Company."

         10.      AFFIRMATION. Except as amended hereby, the Agreement shall
remain in full force and effect.

         11.      COUNTERPARTS. This Amendment may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                       3
<PAGE>

         12.      GOVERNING LAW. This Amendment shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to the conflict of law provisions thereof.

                                       4

<PAGE>

                  IN WITNESS WHEREOF the parties have executed this Amendment
below as of the day first above written.

                                INSIGNIA FINANCIAL GROUP, INC.

                                By: /s/ Adam B. Gilbert
                                    -------------------------------------

                                Name: Adam B. Gilbert
                                     ------------------------------------

                                Title: Executive Vice President
                                      -----------------------------------

                                /s/Andrew Lawrence Farkas
                                -----------------------------------------
                                                  ANDREW LAWRENCE FARKAS<PAGE>

                                SECOND AMENDMENT
                                     TO THE
                                 SECOND AMENDED
                                       AND
                          RESTATED EMPLOYMENT AGREEMENT

         THIS SECOND AMENDMENT TO THE SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (this "Amendment"), dated as of October 7, 2002, is made by and among
Insignia Financial Group, Inc., a Delaware corporation (the "Parent Company"),
Insignia/ESG, Inc., a Delaware corporation (the "Company"), and Stephen B.
Siegel (the "Executive").

         WHEREAS, Insignia/ESG Holdings, Inc., the predecessor in interest to
the Parent Company, the Company and the Executive have entered into a Second
Amended and Restated Employment Agreement, made as of July 31, 1998, as amended
to date by the Amendment to Second Amended and Restated Employment Agreement,
made as of July 21, 2001, by and among the Parent Company, the Company and the
Executive (the "Employment Agreement"), pursuant to which the terms and
conditions of the Executive's employment are set forth; and

         WHEREAS, the Parent Company, the Company and the Executive now desire
to amend the Employment Agreement as hereinafter set forth;

         NOW, THEREFORE, the Parent Company, the Company and the Executive
hereby agree as follows:

         1. DEFINED TERMS. All capitalized terms used but not otherwise defined
         herein shall have the meanings ascribed thereto in the Employment
         Agreement.

         2. AMENDMENT TO SECTION 3(C). Effective on the date hereof, Section
         3(c) of the Employment Agreement is hereby amended to read in its
         entirety as follows:

                  "For each month prior to August, 2002, the Company shall
                  advance to the Executive an amount equal to $50,000 less
                  withholding permitted by Section 12 on the first day of each
                  month (such amounts including the related withholding are
                  referred to as the "Advances") against receipt of the Override
                  and Annual Bonus payable in respect of the calendar year in
                  which such Advances were paid. Not later than March 31
                  following the end of each fiscal year (or 90 days following
                  the termination of the Employment Period, if earlier), the
                  Compensation Committee shall deliver to the Executive a
                  calculation of the amount of Override payable to him pursuant
                  to Section 3(b) of this Agreement, the amount of the Annual
                  Bonus payable to him pursuant to Section 3(e) of this
                  Agreement for the preceding year (or portion thereof if the
                  Employment Period has terminated during such year) and the
                  amount of Additional Payments payable to him pursuant to
                  Section 3(d) of this Agreement for the preceding year. In the
                  event the Advances for any such period exceed the aggregate
                  amount of the Override and Annual Bonus the Executive shall
                  repay such excess to the Company within 15 days of receipt of
                  such calculation. Subject only to recoupment under Section
                  3(d) below, in the event the Override and Annual Bonus earned
                  for such period exceeds the Advances for such period, the
                  Company shall pay such excess less

<PAGE>

                  withholding to the Executive within 15 days of delivery of
                  such calculation."

         3. AMENDMENT TO SECTION 3(D). Effective on the date hereof, Section
         3(d) of the Employment Agreement is hereby amended by adding the
         following four sentences at the end thereof to read as follows:

                  "In addition, the Executive shall be entitled to receive an
                  additional 20% of the promotional and net commission amounts
                  received by Insignia/ESG after June 30, 2002, as such amounts
                  are described and referred to above in this Section 3(d) (the
                  "Additional Payments"); provided, however, that in no event
                  shall the amount of Additional Payments actually paid to the
                  Executive in any calendar month exceed $50,000. Any amount of
                  Additional Payments in respect of any calendar month to which
                  the Executive is entitled in excess of such monthly $50,000
                  maximum amount (the "Excess Additional Payments") (i) shall,
                  in respect of each calendar year, be carried back to any prior
                  month in any such calendar year (but only to months after
                  July, 2002, in the case of calendar year 2002) for which
                  $50,000 of Additional Payments was not actually paid to the
                  Executive until the earlier to occur of (a) the actual payment
                  of $50,000 of Additional Payments to the Executive in respect
                  of each such prior month in such calendar year, and (b) the
                  date of payment of the Annual Bonus amount for and in respect
                  of such calendar year, and (ii) any remaining Excess
                  Additional Payments shall be carried forward indefinitely and
                  paid to the Executive in any subsequent calendar months in
                  which less than $50,000 of Additional Payments are earned by
                  the Executive until $50,000 of Additional Payments are
                  actually paid to the Executive in respect of each such
                  subsequent calendar month (but, notwithstanding the above, any
                  such remaining Excess Additional Payments so carried forward
                  shall only be paid to the Executive if the Executive is
                  employed by the Company on the date of payment and upon any
                  termination of the Executive's employment such carry forward
                  amount shall be reduced to zero and eliminated without any
                  payment to the Executive). Notwithstanding the above or
                  anything to the contrary in Section 3(c) or otherwise, the
                  Additional Payments and Excess Additional Payments actually
                  paid to the Executive during any particular calendar year
                  shall (x) be recoupable from any Override and Annual Bonus
                  amounts, and from any other cash payments, other than Base
                  Salary, earned by or payable to the Executive in respect of
                  such calendar year and/or subsequent calendar years, including
                  without limitation severance payments or benefits (the
                  "Recoupable Amounts") or (y) be forfeited and repaid to the
                  Company by the Executive if (A) the Executive terminates or
                  resigns his employment or (B) the Company terminates the
                  Executive's employment for Cause, in either case, at any time
                  during any such calendar year. If the Recoupable Amounts in
                  (x) above in respect of any calendar year are insufficient to
                  fully recoup the amount of Additional Payments and Excess
                  Additional Payments actually paid in respect of such calendar
                  year or prior calendar years, the aggregate amount of such
                  unrecouped Additional Payments and Excess Additional Payments
                  shall be carried forward indefinitely to subsequent calendar
                  years and shall again be

<PAGE>

                  subject to such recoupment by the Company in any such
                  subsequent calendar years."

         4. AFFIRMATION. Except as set forth above, all other terms and
         provisions of the Employment Agreement, as in effect immediately prior
         to the date hereof, shall remain in full force and effect.

         5. COUNTERPARTS. This Amendment may be executed in any number of
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the date first above written.

                                       INSIGNIA FINANCIAL GROUP, INC.

                                       BY: /s/ Adam B. Gilbert
                                          --------------------------------------

                                       NAME:  Adam B. Gilbert
                                            ------------------------------------

                                       ITS: Executive Vice President
                                           -------------------------------------

                                       INSIGNIA/ESG, INC.

                                       BY: /s/ Adam B. Gilbert
                                          --------------------------------------

                                       NAME:  Adam B. Gilbert
                                            ------------------------------------

                                       ITS: Senior Vice President
                                           -------------------------------------

                                       /s/ Stephen B. Siegel
                                       -----------------------------------------
                                       Stephen B. Siegel

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]