Document:

BANKERS TRUST COMPANY
                              130 Liberty Street
                           New York, New York 10006

                                        September 11, 2000

FrontLine Capital Group
1350 Avenue of the Americas
32nd Floor
New York, New York 10019

Attention:  Michael Maturo

                   Re:      Amended and Restated Revolving Line of Credit
                            Agreement (as the same may be amended or
                            otherwise modified from time to time, this
                            "Agreement")
                            -----------------------------------------------

Gentlemen:

         Bankers Trust Company (the "Bank") and FrontLine Capital Group, a
Delaware corporation ("Borrower"), previously entered into a Line of Credit
Agreement (Facility A) (the "Original Line of Credit Agreement (Facility A)")
and a Line of Credit Agreement (Facility B), each dated May 31, 2000
(collectively, the "Facilities"). There are presently three (3) letters of
credit issued and outstanding under the Facilities. Concurrently herewith, the
Borrower is causing two (2) of the letters of credit outstanding pursuant to
the Facilities to be surrendered to the Bank and, with respect to the
remaining letter of credit (the "SWINC Letter of Credit"), the Borrower is
causing to be delivered to the Bank a "back-up" letter of credit (the "Paribas
Letter of Credit") which will allow the Bank to draw thereon in the event it
makes a payment in respect of the SWINC Letter of Credit. As a result thereof,
the parties hereto have elected to amend and restate the Facilities as
follows:

         Bankers Trust Company (the "Bank") is pleased to extend its
$25,000,000.00 (such amount, the "Commitment") revolving line of credit to
FrontLine Capital Group, a Delaware corporation (the "Borrower"), on the
following terms and conditions:

         1. The Borrower will use the proceeds of loans ("Loans") made
hereunder only for general corporate purposes, including, without limitation,
making investments in other companies. Concurrently herewith, the Borrower has
paid the Bank a non-refundable facility fee of $500,000.00. Requests for Loans
shall be made in a writing submitted by the Borrower and signed by an
Authorized Representative (as such term is defined in the Note, as such term
is hereinafter defined). Notwithstanding anything herein to the contrary,
Borrower shall not be entitled to receive Loans hereunder if, after giving
effect to such Loan, the Total Leverage Ratio (as such term is defined in the
Workplaces Credit Agreement (as such term is hereinafter defined)) would
exceed 3.75, assuming for this purpose that Consolidated Indebtedness (as such
term is defined in the Workplaces Credit Agreement) included an amount equal
to (x) the sum of the principal amount to be outstanding under this Agreement
after giving effect to the proposed Loan plus the amount of the Additional
Debt (as hereinafter defined) then outstanding, divided by (y) the Borrower's
then basic (actual and undiluted) ownership percentage in HQ Global Holdings,
Inc. Together with each request for a Loan, the Borrower must submit to the
Lender a certificate of the chief financial officer of the Borrower
demonstrating that, after giving effect to the proposed Loan, the condition of
the preceding sentence will remain satisfied and that, after giving effect to
the proposed Loan, there will be no default and/or event of default under
PARAGRAPH 25 of the Pledge Agreement (as such term is hereinafter defined). If
the Borrower has properly requested (in accordance with this Agreement) and is
entitled to receive a Loan hereunder, such Loan shall be advanced within three
(3) Business Days (as such term is defined in the Note) of the Bank's receipt
of the request. Subject to the terms of this Agreement and of the Note, the
Borrower may borrow, repay and reborrow any amounts under this Agreement.
"Additional Debt" shall mean indebtedness (direct or contingent) of the
Borrower where such indebtedness is, directly or indirectly, secured by stock
or other equity interests in HQ Global Holdings, Inc. or any Subsidiary (as
such term is defined in the Pledge Agreement) of HQ Global Holdings, Inc.,
excluding indebtedness evidenced by the Note.

         2. No further Loans will be advanced under this line of credit if,
among other things, after giving effect to such requested Loan, the Loans
outstanding would exceed the Commitment (the amount in excess of the
Commitment is an "Overadvance"). In the event of an Overadvance, the Borrower
shall, within five (5) days of demand, prepay that portion of the Loans
outstanding in the amount of the Overadvance. The Borrower's obligations to
the Bank under the Note (as hereinafter defined) and under this Agreement are
secured pursuant to that certain Equity Interest Pledge and Security Agreement
dated as of May 31, 2000 made by the Borrower to and in favor of the Bank (as
amended by a Confirmation and Amendment of Equity Interest Pledge and Security
Agreement of even date herewith and as the same may further be amended or
otherwise modified from time to time, the "Pledge Agreement"). This Agreement,
the Note, the Pledge Agreement and any other instrument and documents related
thereto are, collectively, the "Loan Documents."

         3. Loans hereunder (i) will be evidenced by the Borrower's grid
Amended and Restated Revolving Promissory Note in the form of EXHIBIT A hereto
(as the same may be amended or otherwise modified from time to time, the
"Note") duly executed by the Borrower and (ii) will mature and bear interest
as provided in the Note. If there is no default and/or Event of Default under
this Agreement and/or the Note, the Borrower shall be entitled to request and
receive Loans in accordance with the provisions of this Agreement. The Bank
shall have no obligation to make Loans after the then applicable Maturity
Date.

         4. (a) Subject to the extension provisions hereof, any Loans
outstanding hereunder and all accrued and unpaid interest thereon shall be due
and payable on March 11, 2001 (the "First Maturity Date").

            (b) If, as of the date of the notice of the Borrower referred to
in this PARAGRAPH and the First Maturity Date, no Event of Default and no
event which with notice or the lapse of time or both would become an
Event of Default shall then be continuing, then the Borrower, by written
notice to the Bank not later than thirty (30) days prior to the First Maturity
Date and not earlier than sixty (60) days prior to such date, shall have the
option to extend the maturity of this facility for three (3) months (the
"First Extension Period") to June 11, 2001 (the "Second Maturity Date"). At
the time the Borrower exercises the option to extend the term of this facility
for the First Extension Period, it shall pay the Bank a non-refundable fee of
$250,000; such fee shall be payable in immediately available federal funds at
the office of the Bank first set forth above.

            (c) If, as of the date of the notice of the Borrower referred to in
this PARAGRAPH and the Second Maturity Date, no Event of Default and no event
which with notice or the lapse of time or both would become an Event of
Default shall then be continuing, then the Borrower, by written notice to the
Bank not later than thirty (30) days prior to the Second Maturity Date and not
earlier than sixty (60) days prior to such date, shall have the option to
extend the maturity of this facility for three (3) months (the "Second
Extension Period") to September 11, 2001 (the "Final Maturity Date"). At the
time the Borrower exercises the option to extend the term of this facility for
the Second Extension Period, it shall pay the Bank a non-refundable fee of
$250,000; such fee shall be payable in immediately available federal funds at
the office of the Bank first set forth above.

         5. Each of the following shall be an "Event of Default" under each of
the Loan Documents:

            (a) failure of the Borrower (x) to pay, for a period of ten (10)
days after the same becomes due (i) any installment of interest under the Note,
or (ii) any other payment required under any of the Loan Documents or under any
supplement, modification or extension hereof or thereof, or (y) to pay the
final principal balance of the Note when due, whether upon the stated maturity
date set forth therein, upon acceleration of the principal sum thereof or
otherwise, together with accrued and unpaid interest thereon; or

            (b) if any of the Borrower's representations or warranties contained
in or incorporated into any of the Loan Documents shall be untrue or incorrect
in any material respect at the time made, or if any such warranty or
representation intended to be a continuing one shall become untrue or
incorrect in any material respect and the Borrower shall fail to remedy such
situation within thirty (30) days after notice from the Bank (or promptly upon
notice in case of emergency); or

            (c) if the Borrower shall commence a voluntary case concerning
itself under Title 11 of the United States Code entitled "Bankruptcy"
as now or hereafter in effect, or any successor thereto (the "Bankruptcy
Code"); or an involuntary case is commenced against the Borrower and the
petition is not controverted within thirty (30) days, or is not dismissed
within ninety (90) days, after commencement of the case; or a custodian (as
defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
any substantial part of the property of the Borrower; or the Borrower
commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation
or similar law of any jurisdiction whether now or hereafter in effect relating
to the Borrower or there is commenced against the Borrower any such proceeding
which remains undismissed for a period of ninety (90) days; or the Borrower is
adjudicated insolvent or bankrupt; or any order for relief or other order
approving any such case or proceeding is entered; or the Borrower suffers any
appointment of any custodian or the like for it or any substantial part of its
property to continue undischarged or unstayed for a period of ninety (90)
days; or the Borrower makes a general assignment for the benefit of creditors;
or the Borrower shall fail to pay, or shall admit in writing that it is unable
to pay, or shall be unable to pay, its debts generally as they become due; or
the Borrower shall call a meeting of its creditors with a view to arranging a
composition or adjustment of its debts; or

            (d) if any execution, warrant, attachment, garnishment or other
similar processes shall be levied or filed against the Borrower which involve
claims aggregating more than $100,000 and such processes shall not be stayed,
vacated or discharged, such as by bonding, within ninety (90) days after the
same shall have been levied or filed; or

            (e) if the Borrower shall fail to perform or observe, or cause to
be performed or observed, any other term, obligation, covenant, condition or
agreement contained in any Loan Document or any other instrument now or
hereafter executed in connection therewith and such failure shall have
continued for a period of thirty (30) days after notice thereof; provided,
however, if such default shall not have been occasioned by any willful act of
the Borrower, and if such default cannot with due diligence be cured within
such thirty (30) days period, the time within which to cure the same shall be
extended for such period as may be necessary to cure the same with due
diligence if the Borrower commences within such thirty (30) days and proceeds
diligently to cure the same; or

            (f) if any breach, default or event of default shall occur and be
continuing or any other condition shall exist under any instrument, agreement
or indenture relating to indebtedness or any other liability of the Borrower
and the effect thereof is to cause an acceleration, mandatory redemption or
other required repurchase of such indebtedness or other liability or permit
the holder to accelerate the maturity of such indebtedness or other liability
or require a redemption or other repurchase of such indebtedness or other
liability; or any such indebtedness or other liability of the Borrower shall
otherwise be declared to be due and payable (by acceleration or otherwise) or
be required to be prepaid, redeemed or otherwise repurchased prior to the
stated maturity thereof; or

            (g) if the Total Leverage Ratio exceeds 3.75 and assuming for this
purpose that Consolidated Indebtedness (as such term is defined in the
Workplaces Credit Agreement) included an amount equal to (x) the sum of the
then outstanding principal amount of the Loans plus the amount of Additional
Debt then outstanding, divided by (y) the Borrower's then basic (actual and
undiluted) ownership percentage in HQ Global Holdings, Inc.; or

            (h) if, while the Bank has any obligation to make Loans pursuant to
this Agreement, the Borrower shall declare or pay any dividend on any class of
its stock; or

            (i) if there shall be a default under the Workplaces Credit
Agreement (as in effect on the date hereof) or if there shall be a default
under the Workplaces Credit Agreement (as from time to time in effect).
"Workplaces Credit Agreement" shall mean that certain Amended and Restated
Credit Agreement dated as of May 31, 2000 among HQ Global Holdings, Inc., HQ
Global Workplaces, Inc., various banks, Bankers Trust Company, as Syndication
Agent, Citicorp Real Estate, Inc., as Documentation Agent and BNP Paribas
(formerly known as Paribas), as Administrative Agent and Arranger.  If an Event
of Default occurs and is continuing: (x) the outstanding principal amount of
the Note, and all accrued and unpaid interest thereon, shall be due and
payable if written notice of such acceleration, in the manner specified in
the Note, is given to the Borrower, (y) the Bank, effective immediately, shall
have no further obligations to make Loans pursuant to this Agreement and (z)
the Bank, by written notice of default to the Borrower, may exercise all
available rights and remedies, including terminating this Agreement, except
that in the circumstances of an Event of Default under PARAGRAPH 5(c) of this
Agreement, no such written notice shall be required and the Bank shall have no
further obligation to make Loans.

         6. (a) Reference is hereby made to that certain Credit Agreement
dated as of November 30, 1999 among Reckson Service Industries, Inc. (now
known as FrontLine Capital Group), the institutions from time to time parties
thereto as lenders, Warburg Dillon Read, LLC, as Arranger, and UBS AG,
Stamford Branch, as Administrative Agent (as supplemented by an Amendment to
Credit Agreement dated as of December 12, 1999 and a waiver letter dated
January 20, 2000, the "UBS Loan Agreement"). The parties hereto have
previously and separately initialled the UBS Loan Agreement for
identification.

            (b) Whether or not the UBS Loan Agreement is in full force
and effect, the provisions of Article VIII and Sections 9.1 through 9.8 of
Article IX (to the extent such provisions are applicable to the Borrower) of
the UBS Loan Agreement and any related definitions, as in effect immediately
prior to the termination thereof, are hereby incorporated herein by reference
as if set forth herein in full and shall apply, mutatis mutandis, to this
Agreement.

         7. Pursuant to the Original Line of Credit Agreement (Facility A),
the Bank issued a $1,000,000 letter of credit to SWINC Acquisition Three, Inc.
and in connection therewith the Borrower executed and delivered an Application
and Agreement for Irrevocable Letter of Credit (Standby) dated July 18, 2000
(the "SWINC Application"). The Borrower hereby ratifies and confirms the SWINC
Application and agrees that the SWINC Application continues in full force and
effect after giving effect to this Agreement. The Borrower hereby represents
and warrants to the Bank that it has no offsets, defenses or counterclaims
with respect to the SWINC Application and to the extent any such offsets,
defenses or counterclaims exist without the Borrower's knowledge, the same are
hereby waived to the maximum extent permitted by law. The Borrower understands
that promptly following the date hereof the Bank is to notify SWINC
Acquisition Three, Inc. that the expiration date of the SWINC Letter of Credit
is not to be extended beyond its current expiration date of March 31, 2001 and
the Borrower hereby consents to such action. The Bank hereby agrees that if
the face amount of the SWINC Letter of Credit is reduced pursuant to the
provisions thereof which contemplate a reduction of the SWINC Letter of Credit
(other than as a result of a draft being drawn thereon), then the Bank will
consent to a reduction, in the same principal amount, of the Paribas Letter of
Credit.

         8. If after the date hereof there shall be any public or private
offering of equity interests in the Borrower and the aggregate net proceeds
from such offerings exceeds $100,000,000, then, upon the Borrower's receipt
(actual or constructive) of any of the net proceeds thereof, a mandatory
prepayment of all or some, as the case may be, of the outstanding principal of
the Loans in the following amounts shall be due and payable: if the aggregate
net proceeds from such offerings is more than $100,000,000 and less than or
equal to $125,000,000, a mandatory prepayment in an amount equal to one-half
of such net proceeds between such amounts shall be due and payable, plus if
the aggregate of the net proceeds of such offerings is in excess of
$125,000,000, a mandatory prepayment in an amount equal to all of such net
proceeds in excess of $125,000,000 shall be due and payable. If there shall be
any private or public offering of equity interests in an entity other than the
Borrower, then, to the extent that any of the net proceeds of such offering
are received (actually or constructively) by the Borrower, a mandatory
prepayment of all or some, as the case may be, of the outstanding principal of
the Loans shall be due and payable in the amount of such net proceeds received
(actually or constructively) by the Borrower. Whether or not any mandatory
prepayments of the outstanding principal amount of any of the Loans is made as
a result of this paragraph, the Commitment shall permanently be reduced in an
amount equal to the sum of (a) if the aggregate net proceeds from such
offerings is more than $100,000,000 and less than or equal to $125,000,000, an
amount equal to one-half of such net proceeds between such amounts, plus (b)
if the aggregate of the net proceeds of such offerings is in excess of
$125,000,000, an amount equal to all of such net proceeds in excess of
$125,000,000. If at the time of a mandatory prepayment required by this
paragraph the principal amount of the Loans outstanding is less than the
required mandatory prepayment, then the mandatory prepayment shall be in the
amount of the outstanding Loans.

         9. No delay on the part of the Bank in exercising any of its options,
powers or rights, or any partial or single exercise thereof, irrespective of
any course of dealing, shall constitute a waiver thereof. The options, powers
and rights of the Bank specified herein and in the other Loan Documents are in
addition to those otherwise existing under applicable law. No amendment,
modification or waiver of any provision hereof or of the other Loan Documents,
nor consent to any departure by the Borrower herefrom or therefrom shall be
effective, irrespective of any course of dealing, unless the same shall be in
writing and signed by the Bank and the Borrower. The Borrower agrees to pay,
on demand, all reasonable out-of-pocket costs and expenses incurred or payable
by the Bank in connection with the Loan Documents, including reasonable
attorneys' fees and disbursements. This Agreement shall be binding on the
Borrower and the Bank and their respective successors and assigns, provided
that the Borrower shall not have the right to assign its rights hereunder or
any interest herein.

         10. The Borrower agrees to pay the Bank a commitment fee at the rate
of one-quarter of one percent per annum (twenty-five basis points per annum)
on the average daily unused portion of the Commitment in effect during the
period from and including October 11, 2000 until and including the earlier of
(x) the applicable Maturity Date and (y) the Borrower's prepayment in full of
the outstanding Loans and termination, in a writing reasonably satisfactory to
the Bank, of the Bank's obligation to make Loans under this Agreement and/or
the Note. Such commitment fees shall be payable monthly in arrears on the last
day of each month, commencing on October 31, 2000, and on the Maturity Date or
such earlier date upon which the Commitment shall terminate pursuant to the
terms hereof, and shall be computed on the basis of a year of 360 days and
paid for the actual number of days elapsed.

         11. Notices hereunder shall be given in the manner provided in the
Note.

         12. This Agreement may be signed in counterparts.

<PAGE>
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

<PAGE>

         This Agreement, together with the other Loan Documents, constitutes
the entire understanding between the Bank and the Borrower and supersedes all
prior discussions and agreements with respect to the subject matter hereof.

                                    Very truly yours,

                                    BANKERS TRUST COMPANY

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

Accepted and agreed to this
8th day of September, 2000:

FRONTLINE CAPITAL GROUP

By:  ______________________
     Name:
     Title:

<PAGE>
                                                               EXHIBIT A
                                                               ---------

                AMENDED AND RESTATED REVOLVING PROMISSORY NOTE

Date of Note:  September 11, 2000
------------

Principal Amount:  $25,000,000.00
----------------

Maturity Date:  March 11, 2001, subject to extensions hereinafter provided
-------------

         FOR VALUE RECEIVED, FRONTLINE CAPITAL GROUP, a Delaware corporation
("Borrower"), does hereby covenant and promise to pay to the order of BANKERS
TRUST COMPANY, a New York banking corporation, or its successors and assigns
("Lender"), at 130 Liberty Street, New York, New York 10006, or at such other
place as Lender may designate to Borrower in writing from time to time, in
lawful money of the United States of America and in immediately available
funds, the lesser of (i) the Principal Amount stated above and (ii) the
aggregate unpaid amount of all advances made by Lender to Borrower pursuant to
the Line of Credit Agreement (as hereinafter defined), together with interest
thereon in like money and funds as hereinafter provided.

         1. Definitions. The following terms, as used in this Note, shall have
the meanings indicated opposite them.

         "Applicable Rate" - during the period from the date hereof through
the Maturity Date, (a) the Prime Rate or (b) the LIBOR Rate in effect at any
given time pursuant to the terms hereof plus five (5%) percent per annum.

         "Authorized Representative" - shall mean Scott Rechler, Michael
Maturo, Jason Barnett or any other person or persons designated by Borrower,
in a writing delivered to Lender, as an Authorized Representative.

         "Business Day" - a day other than a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to
close.

         "Default" - shall mean any act or condition which with the giving of
notice or the lapse of time, or both, could become an Event of Default.

         "Event of Default" - shall mean any act or event described as an
"Event of Default" in the Line of Credit Agreement.

         "Fixed Rate Acceptance Notice" - shall have the meaning assigned to
such term in PARAGRAPH 4(b) hereof.

         "Fixed Rate Advance" - shall mean a LIBOR Advance.

         "Fixed Rate Notice" - Borrower's telephonic notice immediately
confirmed in writing, which writing may be delivered by telecopier, stating
that Borrower, subject to delivery by it of a Fixed Rate Acceptance Notice,
elects to pay interest at the Fixed Rate and specifying the portion of the
Principal Amount which is to bear interest at the LIBOR Rate, the applicable
Interest Period for the Fixed Rate Advance and the Business Day on which such
Interest Period is to begin.

         "Interest Period" - a period of 30, 60, 90 or 180 days, in each case
as elected by Borrower in the Fixed Rate Notice, provided, however, that no
such period shall extend beyond the Maturity Date. Any Interest Period which
terminates on a non-Business Day shall be deemed, for purposes hereof, to
terminate on the next succeeding Business Day.

         "LIBOR Advance" - the whole or any portion of the outstanding
Principal Amount which bears interest at a rate based upon the LIBOR Rate, but
such portion of the outstanding Principal Amount shall be in an integral
multiple of $50,000 but in no event less than $250,000.

         "LIBOR Rate" - shall mean, for the applicable Interest Period, the
rate per annum determined on the basis of the London inter-bank offered rates
for U.S. Dollar deposits in the Eurodollar market and having a maturity equal
to the proposed Interest Period and appearing on the Telerate Screen page 3750
(or the successor page reference thereto) as of approximately 11:00 AM (London
time) two Business Days before the date on which such Interest Period shall
commence. If at least two such offered rates appear on the Telerate Screen
page 3750 or associated pages, the rate in respect of such Interest Period
will be the arithmetic mean (rounded up to the nearest 1/16) of such offered
rates. If no such rate appears, the rate in respect of such Interest Period
will be the rate specified as LIBOR on the Reuters Screen LIBOR page as of
such date and time for such Interest Period.

         "Line of Credit Agreement" - the Amended and Restated Revolving Line
of Credit Agreement dated the date hereof between the Lender and Borrower, as
the same may be amended or otherwise modified from time to time.

         "Loan" - the loan or loans made to Borrower by Lender and evidenced
hereby.

         "Note" - this Amended and Restated Revolving Promissory Note, as the
same may be amended or otherwise modified from time to time.

         "Prime Rate" - means the rate which Lender publicly announces from
time to time as Lender's "Prime Rate." The Prime Rate shall be adjusted from
time to time when and as Lender's Prime Rate shall change. Lender's Prime Rate
is determined from time to time by Lender as a means of pricing some loans to
its customers and is neither tied to any external rate of interest or index,
nor does it necessarily reflect the lowest rate of interest actually charged
by Lender to any customer class or category of its customers. Lender may make
commercial or other loans at rates of interest at, above or below Lender's
Prime Rate. Any change resulting from a change in Lender's Prime Rate shall
become effective as of the date on which Lender makes a change in Lender's
Prime Rate.

         "Prime Rate Advance" - the whole or any portion of the outstanding
Principal Amount which bears interest at a rate based upon the Prime Rate.

         "Regulation D" - Regulation D of the Board of Governors of the
Federal Reserve System from time to time in effect, including any successor or
other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

         "Reserve Percentage" - the maximum aggregate reserve requirement
(including, without limitation, all basic, marginal, emergency, supplemental,
special or other reserves and taking into account any transitional
requirements) as specified in Regulation D that Lender determines would be
applicable on that day to new non-personal time deposits in the United States
in an amount equal to or in excess of $100,000 with a maturity approximately
equal to that of the applicable Interest Period. The LIBOR Rate shall be
adjusted automatically on and as of the effective date of any change in the
Reserve Percentage.

         2. Interest. Interest on the outstanding Principal Amount shall
accrue from and including the date of the advance to but excluding the date of
any repayment or prepayment thereof and shall be payable in arrears (i) on the
first day of each calendar month, commencing with the month after the month in
which this Note is executed and delivered, (ii) on the date of any prepayment
(on the amount prepaid), (iii) on the Maturity Date, and (iv) after maturity
(whether by acceleration or otherwise), on demand. All interest calculations
provided for herein shall be made on the basis of a 360-day year and the
actual number of days elapsed; provided, however, that to the extent the
Applicable Rate is based upon the LIBOR Rate, monthly payments shall be
calculated on the basis of thirty day months, but applied based on the actual
number of days elapsed. All payments shall be credited, when collected, first
to interest and then to principal.

         3. Maturity Date. The outstanding principal of, and all accrued
interest on, the Loan shall be due and payable on March 11, 2001 (the
"Maturity Date"); provided, however, that if the maturity date of the Line of
Credit Agreement is validly extended in accordance with the provisions
thereof, then the maturity date of this Note shall be deemed to have been
automatically extended to the extended maturity date of the Line of Credit
Agreement.

         4. Selection of Rate. (a) Except as provided in PARAGRAPHS 4(b) and
10, the outstanding Principal Amount shall bear interest at a rate per annum
equal to the Prime Rate.

            (b) Provided there is no Default and/or Event of Default
which is continuing, Borrower shall elect to pay interest on the whole or
applicable portion of the outstanding Principal Amount (subject to the minimum
amount limitations set forth herein and the requirements set forth below) at a
rate per annum equal to the LIBOR Rate in effect at any given time pursuant to
the terms hereof plus five (5%) percent per annum, in each case, applicable to
the Interest Period elected by Borrower from (and including) the first day of
each Interest Period to (but not including) the last day of such Interest
Period. Accordingly, the Principal Amount shall bear interest at a rate based
upon the Prime Rate only if Fixed Rate Advances are not available by reason of
PARAGRAPH 6 or if a Default and/or Event of Default exists and is continuing.
Borrower shall, subject to delivery by it of a Fixed Rate Acceptance Notice,
elect the Fixed Rate for the whole or applicable portion of the outstanding
Principal Amount pursuant to a Fixed Rate Notice. Lender must receive such
Fixed Rate Notice prior to 11:00 A.M., New York City time, on a Business Day
at least three (3) Business Days prior to:

               (i) the last day of an Interest Period (in the case of an
          outstanding Fixed Rate Advance); or

               (ii) any Business Day elected by Borrower in its Fixed Rate
          Notice (in the case of a conversion of a Prime Rate Advance to a
          Fixed Rate Advance) for the commencement of the applicable Interest
          Period.

If Borrower fails to give a Fixed Rate Notice at least three (3) Business Days
prior to the end of an Interest Period, then, on the last day of the Interest
Period, the outstanding Fixed Rate Advance shall convert to a Fixed Rate
Advance with an Interest Period of thirty (30) days. On the date specified in
the Fixed Rate Notice as the date on which the applicable Interest Period is
to begin, Lender shall notify Borrower's Authorized Representative by
telephone (such notice to be promptly confirmed in writing) or by telex (with
receipt confirmation), which notice shall specify the date, the proposed Fixed
Rate and the period of time on such date during which such rate is to be
available. If Lender fails to specify the period for which such quoted rate is
available, then such rate shall be deemed to be available only for thirty
minutes from the time Lender, orally or in writing, notifies Borrower's
Authorized Representative of such rate. If Borrower then wishes to obtain such
Fixed Rate for the whole or applicable portion of the outstanding Principal
Amount, it shall promptly give notice to Lender to such effect (the "Fixed
Rate Acceptance Notice"), which notice shall be irrevocable and may be by
telephone, promptly confirmed in writing.

            (c) Without in any way limiting Borrower's obligation to confirm in
writing any telephonic Fixed Rate Notice or Fixed Rate Acceptance Notice,
Lender may, prior to receipt of written confirmation, act without liability on
the basis of telephonic notice which it believes in good faith to be from
Borrower and, in any event, Lender may act without liability on the basis of
written notice which it believes in good faith to be from Borrower.

         5. Payment of Interest on and Number of Fixed Rate Advances. If a
Fixed Rate Advance is outstanding, then in addition to the monthly payments of
interest required under PARAGRAPH 2 hereof, all accrued and unpaid interest,
if any, on such Fixed Rate Advance shall be due and payable on the last day of
the Interest Period. In no event may there be more than five (5) Interest
Periods in effect at any one time.

         6. Suspension of Fixed Rate. If Lender, in its sole discretion,
determines that Lender's making or maintaining of a Fixed Rate Advance is
unlawful for any reason, then Lender may suspend the availability of the Fixed
Rate and immediately convert the outstanding Fixed Rate Advance, if any, to a
Prime Rate Advance. Lender shall immediately notify Borrower of any such
conversion and Borrower shall pay to Lender, within thirty (30) days following
demand, (i) all accrued and unpaid interest on the Fixed Rate Advance to the
date of such conversion, plus (ii) such amounts as Lender shall require to
compensate it for the costs of converting any such Fixed Rate Advance to a
Prime Rate Advance. The certificate of Lender as to any amounts payable
pursuant to this PARAGRAPH shall, absent manifest error, be final, conclusive
and binding on Borrower; such certificate must set forth in reasonable detail
Lender's calculation of the amount so payable. No Fixed Rate Notices shall be
given by Borrower thereafter until Lender determines that a Fixed Rate Advance
would be lawful and practical.

         7. Increases in Cost. In the event that at any time or from time to
time any domestic or foreign requirement of law, regulation, order or decree
or any change therein or in the interpretation or application thereof or
compliance by Lender with any request or directive (whether or not having the
force of law) from any governmental, fiscal, monetary or other authority (i)
does or shall subject Lender to any tax, duty, charge or withholding on or
from payments due from Borrower (excluding taxation of the income of Lender);
or (ii) does or shall impose, modify or hold applicable or change any reserve
(including, without limitation, basic, supplemental, marginal, special or
emergency reserves but not including reserve requirements already taken into
account in calculating the Fixed Rate), special deposit, compulsory deposit or
similar requirement with respect to assets of, deposits with or for the
account of, advances or loans by, or other credit extended by, or any other
acquisition of funds by Lender; or (iii) does or shall impose on Lender any
other condition or change therein and the result of any of the foregoing is to
increase the cost to Lender of making available to Borrower, converting from
or to, or maintaining Fixed Rate Advances, then, and in any such event, Lender
shall notify Borrower in writing of such occurrence setting forth in
reasonable detail the basis for and amounts of such increased costs, and
Borrower shall pay to Lender, within thirty (30) days following demand, such
amounts as will compensate Lender for such increased costs. The certificate of
Lender as to any amounts payable pursuant to this PARAGRAPH shall, absent
manifest error, be final, conclusive and binding on Borrower; such certificate
must set forth in reasonable detail Lender's calculation of the amount so
payable.

         8. Prepayment. (a) At any time during the term hereof that the
Applicable Rate is based upon the Prime Rate or on a date which is the last
day of an Interest Period (with respect to the whole or any portion of the
outstanding Principal Amount as to which the Interest Period is ending), upon
not less than two (2) Business Days written notice to Lender specifying the
date on which prepayment is to be made, Borrower shall have the privilege of
prepaying the unpaid balance of the Principal Amount of this Note, in whole or
in part, on any Business Day, without payment of a premium or penalty,
provided that (i) any such prepayment shall be in a minimum amount of not less
than $250,000 (unless the unpaid balance of such lesser outstanding Principal
Amount is less than $250,000, in which case the entire unpaid balance of the
outstanding Principal Amount may be prepaid) and additional integral multiples
of $50,000, and (ii) together with any such prepayment, Borrower shall also
pay any accrued and unpaid interest on the portion of the outstanding
Principal Amount of this Note being so prepaid to the date of prepayment, and
together also with accrued and unpaid interest or other sums or charges, if
any, then due and owing hereunder.

            (b) (i) At any time during the term hereof that the Applicable Rate
is based upon the Fixed Rate, Borrower shall have the privilege of prepaying
the unpaid balance of the Principal Amount of this Note, in whole or in part,
on the notice set forth in PARAGRAPH 8(a) hereof, except that in addition to
the payment of the whole or portion of the outstanding Principal Amount so to
be prepaid, all accrued and unpaid interest thereon and all other sums then
due hereunder or under the Line of Credit Agreement, Borrower shall pay a
prepayment premium based on the following formula:

            (a)   Upon prepayment, Lender shall determine whether there is
            a fixed rate yield maintenance premium due by subtracting
            the Redemption Treasury Rate from the Fixed Rate (as such
            terms are defined below). If the Redemption Treasury Rate is
            equal to or greater than the Fixed Rate, no fixed rate yield
            maintenance premium will be due.

            (b)   However, if the Redemption Treasury Rate is less than
            the Fixed Rate, a fixed rate yield maintenance premium will
            be computed by Lender as follows:

                                 (F-R)x P x D
                                 ---------------
                                      360

            (c)   Lender shall discount the resulting number to the net
            present value thereof, i.e., as if such sum were received in
            equal monthly installments from the date of prepayment to
            the end of the applicable Interest Period. To determine
            present value, the discount rate shall be calculated on the
            basis of a three hundred sixty-five (365) day year.

            (d)   For purposes of computing the fixed rate yield maintenance
            premium, the following definitions govern:

                  -"F" or "Fixed Rate" means the applicable LIBOR
                  Rate plus five (5%) percent.

                  -"R" or "Redemption Treasury Rate" means, at the
                  time of prepayment, the rate of interest per annum
                  equal to the most recently published quotations of
                  yields to maturity of U.S. Treasury obligations
                  (bills on a discounted basis shall be converted to
                  a bond equivalent), as published weekly by the
                  Federal Reserve Board in the Federal Reserve
                  Statistical release, trading closest to par value
                  and with a maturity date comparable to the end of
                  the applicable Interest Period.

                  -"P" means such Principal Amount being repaid.

                  -"D" means the number of days remaining until the day
                  preceding the end of the applicable Interest Period.

            Absent manifest error, Lender's calculation of the fixed
            rate yield maintenance premium shall be deemed conclusive;
            Lender shall furnish to Borrower, in reasonable detail, its
            calculation of such premium.

                         (ii)  Lender shall notify Borrower of the amount and
                  basis of determination of such prepayment premium, it
                  being agreed that (A) the calculation of such prepayment
                  premium may be based on the most recent Redemption
                  Treasury Rate available to Lender; and (B) Lender shall
                  not be obligated to have actually reinvested the prepaid
                  amount in any such U.S. Government Treasury Obligations as
                  a condition precedent to receiving a prepayment premium
                  calculated pursuant to the provisions of this subparagraph
                  8(b). Borrower, upon receipt of such notice and
                  simultaneously with any such prepayment, shall remit to
                  Lender the prepayment premium. Any payment by Borrower of
                  the outstanding Principal Amount or any portion thereof
                  either pursuant to the terms and provisions of this Note
                  or after acceleration of the Maturity Date shall be deemed
                  a voluntary prepayment for the purposes hereof, and if a
                  Fixed Rate Advance is then outstanding, Borrower shall be
                  required, on demand, to pay the prepayment premium, if
                  any, calculated as aforesaid.

            (c) Any payments of the outstanding Principal Amount received by
Lender (whether pursuant to the terms of this PARAGRAPH 8, or otherwise) shall
be applied to this Note in the following order of priority: (i) first, to any
accrued interest which is due and unpaid on this Note; and (ii) second, to the
outstanding Principal Amount of this Note.

            (d) Notwithstanding anything to the contrary contained herein, this
Note is a revolving note; and, subject to the terms of the Loan Documents,
amounts borrowed and repaid or prepaid may be reborrowed.

         9. Involuntary Rate; Late Charge. Overdue principal and, to the
extent permitted by law, overdue interest and all other overdue amounts owing
hereunder, whether at maturity, upon acceleration or otherwise, shall bear
interest for each day that such amounts are overdue (whether or not any
required notice of default shall have been given) at a rate per annum equal to
two (2.0%) percent per annum in excess of the Applicable Rate in effect from
time to time (such rate the "Involuntary Rate"). In addition, any payment,
whether of principal or interest, not received by Lender within ten (10) days
after the date it is due shall be assessed a late charge of five (5.0%)
percent of the overdue payment (such charge, the "Late Charge"), and such Late
Charge shall be due on demand. Lender's right to receive interest at the
Involuntary Rate and any Late Charge pursuant to this PARAGRAPH shall be in
addition to all other rights and remedies provided herein or by law for the
benefit of the holder hereof upon a default; and the acceptance of the same by
the holder hereof shall not restrict such holder in any respect in the
exercise of any other or further right or remedy, nor shall the same be deemed
to be, as to the holder hereof, a waiver or release of Borrower from any of
its obligations herein contained or constitute an extension of the time for
payments due hereunder.

         10. Acceleration. It is hereby expressly agreed that the entire
unpaid balance of the Principal Amount shall, at the option of the holder
hereof, become immediately due and payable without necessity for presentment
and demand, notice of protest, demand and dishonor or nonpayment of this Note,
all of which are hereby expressly waived, during the continuation of any Event
of Default or any event by which, under the terms of the Line of Credit
Agreement, said unpaid balance may or shall become due and payable. Failure to
exercise any such option at any time shall not constitute a waiver of the
right of the holder hereof to exercise the same in the event of any subsequent
default or acceleration event.

         11. Notices. Except as otherwise provided herein, any notice to be
given hereunder shall be in writing and shall be either delivered or sent by
first-class registered or certified mail, return receipt requested, postage
prepaid, or by reputable overnight delivery service, with receipt acknowledged
and next business day delivery specified, addressed (a) if to Borrower, to
Borrower's address set forth on the signature page hereof or (b) if to Lender,
at Lender's address set forth above, Attention: Susan Swanezy, or, as to any
party, at such other address as shall be designated by such party by notice to
the other party given in the manner set forth in this PARAGRAPH and each such
notice shall be effective (i) if delivered, at the time of delivery to the
address specified in this PARAGRAPH or (ii) if given by mail, on the fourth
Business Day following the time of mailing in the manner aforesaid, or (iii)
on the Business Day immediately following the delivery of such notice to an
overnight delivery service.

         12. [Intentionally Deleted]

         13. Taxes and Attorneys' Fees. Borrower shall pay to Lender,
immediately upon demand, any and all taxes assessed against Lender by reason
of its holding of this Note and the receipt by it of interest payments
hereunder (other than income, franchise and other similar taxes assessed by
the United States Government, any state or any political subdivision of either
thereof on such interest payments), and any and all other reasonable
out-of-pocket sums and charges that may at any time become due and payable
under the Line of Credit Agreement. Borrower also promises to pay all
reasonable out-of-pocket costs, disbursements and reasonable attorneys' fees
and disbursements incurred in connection with the negotiation, preparation,
and execution of this Note and/or the Line of Credit Agreement and any other
documents and instruments prepared in connection herewith or therewith and the
consummation of the transactions contemplated hereby or thereby and the
administration of this loan and the Line of Credit Agreement and in the
preservation of rights under, enforcement of, this Note, the Line of Credit
Agreement and any other instruments and documents related thereto, any
modification and amendment, or consent related thereto and any refinancing or
renegotiation of this Note and the Line of Credit Agreement.

         14. No Partnership or Joint Venture. Nothing contained in this Note
or elsewhere shall be deemed or construed as creating a partnership or joint
venture between Lender and Borrower or between Lender and any other person, or
cause the holder hereof to be responsible in any way for the debts or
obligations of Borrower or any other person.

         15. Waiver. Borrower hereby waives diligence, presentment, protest
and demand, notice of protest, dishonor and nonpayment of this Note, and
expressly agrees that, without in any way affecting the liability of Borrower
hereunder, Lender may extend the Maturity Date or the time for payment of any
amount due hereunder, accept security, release any party liable hereunder and
release any security now or hereafter securing this Note without in any other
way affecting the liability and obligation of Borrower or any other Person.

         16. Interest Rate Limitation. Notwithstanding anything contained
herein to the contrary, the holder hereof shall never be entitled to receive,
collect or apply as interest on the obligation evidenced hereby any amount in
excess of the maximum rate of interest permitted to be charged by applicable
law; and in the event the holder hereof ever receives, collects or applies as
interest any such excess, such amount which would be excessive interest shall
be applied to the reduction of the outstanding Principal Amount; and if the
outstanding Principal Amount is paid in full, any remaining excess shall
forthwith be paid to Borrower. In determining whether the interest paid or
payable in any specific case exceeds the highest lawful rate, the holder
hereof and Borrower shall to the maximum extent permitted under applicable law
(i) characterize any non-principal payment as an expense, fee or premium
rather than as interest; (ii) exclude voluntary prepayments and the effects
thereof; and (iii) "spread" the total amount of interest throughout the entire
contemplated term of the obligation so that the interest rate is uniform
throughout said entire term.

         17. Severability. Every provision of this Note is intended to be
severable. In the event any term or provision hereof is declared by a court of
competent jurisdiction to be illegal or invalid for any reason whatsoever,
such illegality or invalidity shall not affect the balance of the terms and
provision hereof, which terms and provisions shall remain binding and
enforceable.

         18. Number and Gender. In this Note the singular shall include the
plural and the masculine shall include the feminine and neuter gender, and
vice versa, if the context so requires.

         19. Headings. Headings at the beginning of each numbered paragraph of
this Note are intended solely for convenience of reference and are
not to be deemed or construed to be a part of this Note.

         20. Governing Law; Submission to Jurisdiction; Waivers, Etc. (a) This
Note, which, together with the Line of Credit Agreement and the Pledge
Agreement (as such term is defined in the Line of Credit Agreement), sets
forth the entire understanding of Borrower and Lender with respect to the
subject matter hereof, shall be governed by and construed and enforced in
accordance with the laws (without giving effect to the conflict of law
principles thereof) of the State of New York.

            (b) Borrower hereby irrevocably submits to the non-exclusive
jurisdiction of any New York State or Federal court (sitting in New York
State) over any suit, action or proceeding arising out of or relating to this
Note, the Line of Credit Agreement and/or the Pledge Agreement, and Borrower
hereby agrees and consents that, in addition to any methods of service of
process provided for under applicable law, all service of process in any such
suit, action or proceeding in any New York State or Federal court (sitting in
New York State) may be made by certified or registered mail, return receipt
requested, postage prepaid, directed to Borrower at the address indicated
below (or to such other address as shall be designated by Borrower by notice
to Lender given in the manner set forth in PARAGRAPH 11 hereof), and service
so made shall be complete five (5) days after the same shall have been so
mailed. Borrower also waives (a) the right to trial by jury in the event of
any litigation to which Lender and Borrower are parties in respect of any
matter arising under this Note, the Line of Credit Agreement and/or the Pledge
Agreement, whether or not such litigation has been commenced in respect of
this Note and whether or not other persons are also parties thereto, (b) the
right to interpose any counterclaim therein, (c) the right to have the same
consolidated with any other or separate suit, action or proceeding, (d) any
claim that New York or Suffolk County (or any other County in New York State)
or such District is an inconvenient forum and (e) any claim against Lender for
consequential, special or punitive damages. Lender, by its acceptance hereof
waives trial by jury in any suit, action or proceeding as to which Borrower,
pursuant to the preceding clause (a), has waived trial by jury.

            (c) No delay on the part of Lender in exercising any of its options,
powers or rights, or partial or single exercise thereof, whether arising
hereunder, under the Line of Credit Agreement and/or under the Pledge
Agreement or otherwise, shall constitute a waiver thereof or affect any right
hereunder or thereunder. No waiver of any of such rights and no modification,
amendment or discharge of this Note shall be deemed to be made unless the same
shall be in writing, duly signed by the party against whom enforcement of any
such waiver, modification or discharge is sought. Each such waiver (if any)
shall apply only with respect to the specific instance involved and shall in
no way impair the rights of Lender or the obligations of Borrower hereunder in
any other respect at any other time.

         21. Broker. Lender and Borrower each hereby represents to the other
that it did not deal with any broker or similar person in connection
with this financing.

         22. Set-off. Borrower agrees that, in addition to (and without
limitation of) any right of set-off, bankers' lien or counterclaim
Lender may otherwise have, Lender shall be entitled, during the continuation
of an Event of Default, to offset balances held by it for the account of
Borrower at any of its offices, in lawful money of the United States of
America or in any other currency, against any principal of or interest on this
Note, or any other obligation of Borrower held by Lender, which is not paid
when due (regardless of whether such balances are then due to Borrower).

         23. Grid Note. Borrower authorizes Lender to record on SCHEDULE I
annexed hereto the information with respect to the advances under this Note
and any payments and prepayments of the outstanding Principal Amount made by
Borrower and such notations shall be presumed to be correct and binding
subject to rebuttal by Borrower; provided, however, that the failure of Lender
to make any such notation shall not limit or otherwise affect the obligation
of Borrower to repay the outstanding Principal Amount nor alter or impair any
of the other obligations of Borrower hereunder, under the Line of Credit
Agreement and/or under the Pledge Agreement.

         24. Miscellaneous. (a) This Note may not be changed orally but only
by an agreement in writing signed by the party against whom enforcement of any
waiver, change, modification or discharge is sought.

            (b) Should the indebtedness represented by this Note or any part
thereof be collected at law or in equity, or in bankruptcy, receivership or
any other court proceedings (whether at the trial or appellate level), or
should this Note be placed in the hands of attorneys for collection upon
default, Borrower agrees to pay, in addition to the principal, premium,
interest and other sums due and payable hereon, all costs of collection or
attempting to collect this Note, including reasonable attorneys' fees and
expenses.

         25. Loan Sales. Lender shall have the unrestricted right at any time
or from time to time, and without Borrower's consent, to assign all or any
portion of its rights and obligations hereunder to one or more banks or other
financial institutions (each, an "Assignee"), and Borrower agrees that it
shall execute, or cause to be executed, such documents, including without
limitation, amendments to this Note and to any other documents, instruments
and agreements executed in connection herewith as Lender and any such Assignee
shall deem reasonably necessary to effect the foregoing; provided, however,
that no such amendment and/or no such other documents shall increase the
amounts payable by Borrower hereunder and/or under the Line of Credit
Agreement and/or increase Borrower's other obligations hereunder and/or under
the Line of Credit Agreement. Any Assignee shall be required, to the extent of
the interest assigned to it, to assume, in a writing delivered to Borrower,
Lender's obligations hereunder and under the Line of Credit Agreement. In
addition, at the request of Lender and any such Assignee, Borrower shall issue
one or more new promissory notes (and the face amount of all of the promissory
notes issued by Borrower pursuant hereto may not exceed the then maximum
principal amount available under the Line of Credit Agreement), as applicable,
to any such Assignee and, if Lender has retained any of its rights and
obligations hereunder following such assignment, to Lender, which new
promissory notes shall be issued in replacement of, but not in discharge of,
the liability evidenced by the promissory note held by Lender prior to such
assignment and shall reflect the amount of the respective commitments and
loans held by such Assignee and Lender after giving effect to such assignment.
Each of the promissory notes being replaced shall be marked "refinanced and
replaced." Upon the execution and delivery of appropriate assignment
documentation, amendments and any other documentation reasonably required by
Lender (as provided in this PARAGRAPH) in connection with such assignment, and
the payment by Assignee of the purchase price agreed to by Lender and such
Assignee, such Assignee shall be a party to this Note and shall have all of
the rights and obligations of Lender hereunder (and under any and all other
documents, instruments and agreements executed in connection herewith) to the
extent that such rights and obligations have been assigned by Lender pursuant
to the assignment documentation between Lender and such Assignee, and Lender
shall be released from its obligations hereunder and thereunder to a
corresponding extent. Bank may furnish any information concerning Borrower in
its possession from time to time to prospective Assignees. If more than one
person or entity holds a promissory note issued by Borrower pursuant hereto,
such holders shall designate, in a writing delivered to Borrower, one of them
to act as agent and, in connection with the Line of Credit Agreement and the
instruments and documents related thereto, Borrower shall be entitled to deal
solely with such agent.

         26. Participations. Lender shall have the unrestricted right at any
time and from time to time, and without the consent of or notice to Borrower,
to grant to one or more banks or other financial institutions (each, a
"Participant") participating interests in Lender's obligation to lend
hereunder and/or any or all of the loans held by Lender hereunder. In the
event of any such grant by Lender of a participating interest to a
Participant, whether or not upon notice to Borrower, Lender shall remain
responsible for the performance of its obligations hereunder and Borrower
shall continue to deal solely and directly with Lender in connection with
Lender's rights and obligations hereunder. Lender may furnish any information
concerning Borrower in its possession from time to time to prospective
Participants.

         27. Use of Proceeds. No portion of the proceeds of the Loan shall be
used, in whole or in part, for the purpose of purchasing or carrying any
"margin stock" as such term is defined in Regulation U of the Board of
Governors of the Federal Reserve System.

         28. Replacement of Promissory Note. Upon receipt of an affidavit of
any officer of Lender as to the loss, theft, destruction or mutilation of the
Note or any other security document which is not of public record, and, in the
case of any such loss, theft, destruction or mutilation, upon cancellation of
such Note or other security document, Borrower will issue, in lieu thereof, a
replacement note or other security document in the same principal amount
thereof and otherwise of like tenor.

         29. Amendment and Restatement. Reference is hereby made to that
certain $14,881,740.61 Promissory Note (Facility A) made by Borrower payable
to the order of Lender (the "Facility A Note") and to that certain
$10,118,297.50 Promissory Note (Facility B) made by Borrower payable to the
order of Lender (the "Facility B Note"). This Note is an amendment,
restatement and consolidation of the Facility A Note and the Facility B Note
and concurrently herewith the Facility A Note and the Facility B Note are each
being marked "refinanced and replaced."

         30. Pledge by Lender. Notwithstanding anything herein to the
contrary, Lender may at any time pledge all or any portion of its interests
and rights under this Note to any of the twelve Federal Reserve Banks
organized under Section 4 of the Federal Reserve Act, 12 U.S.C. ss. 341. No
such pledge or the enforcement thereof shall release the pledgor from its
obligations hereunder.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

<PAGE>

         IN WITNESS WHEREOF, Borrower has executed and delivered this Note on
the day and year first above written.

                                      FRONTLINE CAPITAL GROUP

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

Address of Borrower:
-------------------
1350 Avenue of the Americas
32nd Floor
New York, New York 10019

AGREED AND ACCEPTED:
BANKERS TRUST COMPANY

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

<PAGE>

<TABLE>
<CAPTION>

                                  SCHEDULE I

                            SCHEDULE OF PRIME RATE
                     AND LIBOR RATE LOANS AND PAYMENTS OR
                   CONVERSIONS OF PRINCIPAL MADE PURSUANT TO
        THE AMENDED AND RESTATED REVOLVING PROMISSORY NOTE OF EVEN DATE
      HEREWITH BY AND BETWEEN FRONTLINE CAPITAL GROUP, AS BORROWER, AND
                       BANKERS TRUST COMPANY, AS LENDER

                   Character of
                   Loan (Prime         Last Day of           Amount Paid -
                   Rate or LIBOR       Interest Period,      Pre-paid or           Unpaid Principal      Notation
Date               Rate                If Applicable         Converted             Balance               Made By
----               -----------         ---------------       -----------           ----------------      -------
<S>                <C>                 <C>                   <C>                   <C>                   <C>
</TABLE>EQUITY INTEREST PLEDGE AND SECURITY AGREEMENT

                                    between

                           FRONTLINE CAPITAL GROUP,

                                  as Pledgor

                                      and

                            BANKERS TRUST COMPANY,

                                  as Pledgee

                           Dated as of May 31, 2000

<PAGE>

                 EQUITY INTEREST PLEDGE AND SECURITY AGREEMENT

          EQUITY INTEREST PLEDGE AND SECURITY AGREEMENT, dated as of May 31,
2000 (this "Agreement"), is made by and between FrontLine Capital Group, a
Delaware corporation ("Pledgor"), having its chief executive office at 1350
Avenue of the Americas, 32nd Floor, New York, New York 10019, to Bankers Trust
Company, or its assigns ("Pledgee"), having its principal office at 130
Liberty Street, 14th Floor, New York, New York 10006.

                             W I T N E S S E T H:
                             - - - - - - - - - -

          WHEREAS, on the date hereof Pledgor and Pledgee have entered into
that certain Line of Credit Agreement (Facility A) and that certain Line of
Credit Agreement (Facility B) (collectively, and as the same may be amended or
otherwise modified from time to time, the "Line of Credit Agreement"), and,
pursuant to the Line of Credit Agreement, Pledgee has agreed to issue letters
of credit for the account of, and to make loans to, Pledgor;

          WHEREAS, as set forth on Schedule 1 attached hereto and made a part
hereof, Pledgor is the legal and beneficial owner of equity interests in the
entity set forth on Schedule 1 hereto (such entity and any and all successors
thereof being referred to as a "Pledged Entity"), under and subject to the
respective corporate governing documents set forth on Schedule 1 hereto next
to such Pledged Entity's name (as each of such agreements may hereafter be
amended or otherwise modified from time to time, a "Governing Document"); and

          WHEREAS, the Pledgor has agreed to execute and deliver this
Agreement to Pledgee as collateral for the Obligations (as hereinafter
defined).

          NOW, THEREFORE, in consideration of the foregoing, and in order to
induce the Pledgee to enter into the Line of Credit Agreement and perform its
obligations thereunder, Pledgor does hereby agree with Pledgee, as follows:

          1. Definitions. Unless the context otherwise requires, capitalized
terms used herein without definition shall have the respective meanings
provided therefor in the Line of Credit Agreement and the following terms
shall have the following meanings:

          "Certificate of Designation" shall mean the Certificate of
Designations of the Pledged Entity establishing and fixing the Series A
Convertible Cumulative Preferred Stock of the Pledged Entity.

          "Code" shall mean the Uniform Commercial Code, as enacted in the
State of New York, as amended.

          "Default" shall mean any event, act or condition which with notice
or lapse of time, or both, would constitute an Event of Default.

          "Equity Interests" shall mean, collectively, all of Pledgor's right,
title and interest in and to the Pledged Entity pursuant to the Pledged Stock
specifically described on Schedule 1 attached hereto, including, without
limitation, (a) all of Pledgor's right, title and interest in, to and under
any and all agreements ancillary to such Pledged Stock; (b) all of Pledgor's
right, title and interest in and to all capital stock and/or other equity
interests issuable in connection therewith or upon the exercise thereof; (c)
any and all rights of first refusal to which Pledgor may be entitled in
connection with any Equity Interest or the applicable Governing Documents, and
(d) all of Pledgor's right, title and interest in and to the profits, capital,
surplus, assets, allocations and distributions under the applicable Governing
Documents with respect to the Pledged Stock, both during the existence of the
Pledged Entity and upon any dissolution or liquidation of the Pledged Entity,
if any shall occur.

          "Event of Default" shall mean the occurrence of any one or more of
the following events:

          (a) Any representation or warranty made by Pledgor contained in this
     Agreement was false or misleading in any material respect on the date
     when made; or

          (b) Pledgor's failure: to comply with, or breach of any term,
     covenant or agreement contained in any paragraph of Section 4 hereof, if
     such failure or breach described in this clause shall continue for thirty
     (30) days after notice shall have been given by Pledgee specifying such
     failure or breach, as the case may be, and requiring such failure or
     breach, as the case may be, to be remedied; or

          (c) Pledgor's failure to comply with, or breach of any material
     term, covenant or agreement contained in this Agreement (other than as
     referred to in paragraph (b) above) if such failure or breach, as the
     case may be, shall continue for thirty (30) days after notice shall have
     been given by Pledgee specifying such failure or breach, as the case may
     be, and requiring such failure or breach, as the case may be, to be
     remedied; or

          (d) An "Event of Default" under, and as defined in, the Line of
     Credit Agreement.

          "Investment Property" shall have the meaning ascribed thereto in the
UCC.

          "Loan Documents" shall mean all agreements, documents, instruments
and certificates entered into in connection with the Line of Credit Agreement.

          "Note" shall mean those certain promissory notes issued by Pledgor
to Pledgee under the Line of Credit Agreement.

          "Obligations" shall mean (a) the aggregate unpaid principal amount
of, and accrued and unpaid interest on, the Note; (b) all unpaid commitment
and other fees owing by Pledgor under the Line of Credit Agreement or any of
the other Loan Documents; (c) any and all indebtedness, obligations and other
liabilities of Pledgor to Pledgee arising out of or in connection with or
otherwise relating to the Line of Credit Agreement and/or any of the Loan
Documents, and/or any agreement(s) of Pledgor with Pledgee pertaining thereto;
(d) all sums, if any, as may be expended or advanced by Pledgee pursuant to
the Loan Documents in the performance of any obligation of Pledgor under any
of the Loan Documents; and (e) any other sums and charges which may become due
and payable by Pledgor in respect of any letters of credit issued by Pledgee
at Pledgor's request pursuant to the Line of Credit Agreement, and under any
and all applications of Pledgor to, and agreements of Pledgor with, Pledgee
pertaining thereto, including, without limitation, all obligations of Pledgor
under the Applications; in each case whether now or hereafter existing, direct
or indirect, absolute or contingent, joint, several or independent, due or to
become due, liquidated or unliquidated, held or to be held by Pledgee and
whether created directly or acquired by assignment or otherwise.

          "Person" shall mean any individual, limited liability company,
partnership, joint venture, firm, corporation, trust or other enterprise or
any government or political subdivision or any agency, department or
instrumentality thereof.

          "Pledged Stock" shall mean (i) the issued and outstanding capital
stock of the Pledged Entity owned by the Pledgor, as more particularly
described on Schedule 1 hereto, (ii) all options, warrants and other rights to
acquire such capital stock and all capital stock and/or other securities into
which such capital stock is convertible or exchangeable, whether pursuant to a
merger or otherwise; and (iii) all Investment Property and Securities
Entitlements with respect thereto, including, without limitation, all
dividends, liquidating dividends, splits, dividends paid in stock, dividends
paid in capital stock, new or reclassified capital stock, or any other
property which the Pledgor is or may hereafter become entitled to receive on
account of such capital stock, any and all increments, substitutions,
additions or replacements thereof, and any and all proceeds thereof.

          "Securities Entitlements" shall have the meaning ascribed thereto in
the UCC.

          "UCC" shall mean the New York Uniform Commercial Code, as amended
from time to time and in effect.

          2. Grant of Security Interest, Etc. As security for the full and
punctual payment and performance of the Obligations when due, Pledgor hereby
grants and pledges a continuing first priority lien on and security interest
in, and, as a part of such grant and pledge, hereby transfers and assigns to
Pledgee as security, all of the following (the "Collateral") whether now owned
or hereafter acquired: (i) the Equity Interests; (ii) any other equity
interest(s) now owned or hereafter acquired by Pledgor in the Pledged Entity;
(iii) all of Pledgor's right, title and interest in the undated stock powers
relating to the Pledged Stock duly executed in blank and (subject to the
provisions of Section 5 hereof) all income and profits thereof, all
distributions thereon, and all rights and privileges pertaining thereto; (iv)
all of Pledgor's right, title and interest in the Pledged Entity, including
without limitation: (a) all of Pledgor's interest in the capital of the
Pledged Entity, and Pledgor's interest in all profits and distributions to
which Pledgor shall at any time be entitled in respect of the Equity
Interests; (b) all other payments, if any, due or to become due to Pledgor in
respect of the Equity Interests, under or arising out of any Governing
Document, whether as contractual obligations, damages, insurance proceeds,
condemnation awards or otherwise; (c) all of Pledgor's claims, rights, powers,
privileges, authority, options, security interest, liens and remedies, if any,
under or arising out of any Governing Document or the ownership of any Equity
Interests pursuant thereto; (d) all present and future claims, if any, of
Pledgor against the Pledged Entity, under or arising out of the applicable
Governing Document for monies loaned or advanced, for services rendered or
otherwise; and (e) to the extent permitted by applicable law, all of Pledgor's
rights, if any, under any Governing Document or at law, to exercise and
enforce every right, power, remedy, authority, option and privilege of Pledgor
relating to the Equity Interests, including any power to terminate, cancel or
modify any Governing Documents, to execute any instruments and to take any and
all other action on behalf of and in the name of Pledgor in respect of the
Equity Interests and the Pledged Entity, to make determinations, to exercise
any election (including, but not limited to, election of remedies) or option
or to give or receive any notice, consent, amendment, waiver or approval,
together with full power and authority to demand, receive, enforce or collect
any of the foregoing or any property of the Pledged Entity, to enforce or
execute any checks, or other instruments or orders, to file any claims and to
take any action in connection with any of the foregoing; and (v) to the extent
not otherwise included, all proceeds of any or all of the foregoing.

          3. Powers of Pledgor Prior to an Event of Default.

          Prior to the occurrence and continuance of an Event of Default,
Pledgor shall be entitled to receive and retain all distributions with respect
to the Equity Interests. Notwithstanding anything else herein to the contrary,
unless an Event of Default shall have occurred and then be continuing, Pledgor
shall be entitled to exercise its voting, consent and other rights and
remedies under the Governing Documents or other applicable organizational
documents, as the case may be, or otherwise with respect to the Equity
Interests; provided, however, that no action shall be taken or fail to be
taken which could adversely affect Pledgee's rights to the Collateral or the
value of the Collateral.

          4. Representations, Warranties and Covenants.

          Pledgor hereby covenants with, and represents and warrants to,
Pledgee, as follows:

          (1) Pledgor has the full power and authority to acquire, own and
     pledge the Equity Interests and to execute and deliver and perform its
     obligations hereunder.

          (2) The execution and delivery by Pledgor of this Agreement,
     Pledgor's performance of its obligations hereunder and the creation of
     the security interests and liens provided for in this Agreement have been
     duly authorized by all requisite action on the part of Pledgor, including
     the consent of any Person where required, and will not violate any
     provision of law, any order of any court or other domestic or foreign
     governmental or regulatory authority, body, agency or official
     (hereinafter, "Governmental Authority"), the Governing Documents, or any
     indenture, agreement or other instrument to which Pledgor is a party, or
     by which Pledgor is bound, or be in conflict with, result in a breach of,
     or constitute (with due notice or lapse of time or both) a default under,
     or except as may be provided by this Agreement, result in the creation or
     imposition of any lien, of any nature whatsoever upon any of the property
     or assets of Pledgor pursuant to any such indenture, agreement or
     instrument. Pledgor is not required to obtain any consent, approval or
     authorization from, or to file any declaration or statement with, any
     Governmental Authority or other agency in connection with or as a
     condition to the execution, delivery or performance of this Agreement.

          (3) Effective upon the execution and delivery of this Agreement and
     the pledge of Collateral hereunder, the total issued and outstanding
     shares of Pledged Entity's capital stock shall be as follows: 9,755,411
     shares of common stock (voting), $.01 par value (the "Voting Common
     Stock"); 2,370,404 shares of Class C common stock (non-voting); and
     4,782,692 shares of Series A Convertible Cumulative Preferred Stock (the
     "Preferred Stock"), which Preferred Stock is convertible into, subject to
     adjustments, 4,782,692 shares of the Voting Common Stock (assuming the
     price per share of the Preferred Stock is the "Per Share Price" (as
     defined in the Certificate of Designation) on the date of issuance of the
     Preferred Stock). The Pledged Entity has also granted certain warrants
     and other rights to certain parties, as more fully described in Schedule
     2 hereto. Other than the securities described above, Pledged Entity has
     no other outstanding securities. Effective upon the consummation of the
     transactions contemplated hereby, the 11,731,543 shares of Preferred
     Stock of VANTAS Incorporated have been converted into 3,013,833 shares of
     the common stock of the Pledged Entity at the rate of 0.2569 shares for
     each share of such VANTAS Incorporated Preferred Stock.

          (4) Pledgor owns the percentage equity interest (each such equity
     interest referred to herein as a "Current Equity Interest") in the
     Pledged Entity set forth under Pledgor's name on Schedule 1 annexed
     hereto and made a part hereof pursuant to the terms of each Governing
     Document, and will at all times hereafter during the term of this
     Agreement continue to hold its Current Equity Interest in the Pledged
     Entity. Pledgor has no outstanding options or rights or other agreements
     to sell or otherwise transfer all or any portion of its respective Equity
     Interest. In the event that Pledgor, in accordance with the terms of this
     Agreement, transfers all or any portion of any Equity Interest, Pledgor
     agrees to enter into an amendment to this Agreement modifying Schedule 1
     hereof to account for such change.

          (5) Pledgor will defend Pledgee's right, title and interest in and
     to the Equity Interests and in and to the Collateral pledged by it
     pursuant hereto and in which it has granted a security interest pursuant
     hereto against the claims and demands of all other Persons.

          (6) Pledgor is the legal and beneficial owner of and has good title
     to the Equity Interests relating to its ownership interest in the Pledged
     Entities and in and to the Collateral in which it has granted a security
     interest pursuant hereto, free and clear of all claims or security
     interests of every nature whatsoever, except the security interests as
     are created pursuant to this Agreement. Pledgor has the unqualified right
     to pledge and grant a security interest in the same (and to transfer the
     same, whether pursuant to foreclosure or otherwise) as herein provided
     without the consent of any other Person other than any such consent that
     has been obtained and there are no restrictions upon the exercise of the
     voting rights associated with, or the transfer of, any of the Pledged
     Stock.

          (7) The Equity Interests have been validly acquired by, and/or
     granted to, Pledgor and are duly and validly pledged hereunder. All
     consents and approvals required for the execution and delivery of this
     Agreement and the consummation of the transactions contemplated by this
     Agreement have been obtained.

          (8) Pledgor agrees that it will not transfer, convey, dispose of,
     mortgage, encumber, pledge or grant a security interest in, any of the
     Collateral or any interest therein, or suffer or permit any of the same
     to occur or exist, and any transfer, conveyance, disposal, mortgage,
     pledge, encumbrance or security interest whatsoever made in violation of
     this covenant shall be a nullity and of no force and effect, and upon
     demand of Pledgee, shall forthwith be canceled or satisfied by an
     appropriate instrument in writing. Without limiting the generality of the
     foregoing, Pledgor will, within thirty (30) days after Pledgor has actual
     notice thereof, discharge or cause to be discharged as a lien of record
     by payment or filing of the bond required by law, or otherwise, any
     judgment, tax or other involuntary liens filed or otherwise asserted
     against the Collateral, and any proceedings for the enforcement thereof;
     provided, however, so long as no Event of Default shall have occurred and
     be continuing hereunder, Pledgor shall have the right to contest in good
     faith and with reasonable diligence the validity of any such judgment,
     liens or tax or other such involuntary liens upon the filing of such bond
     or, if no such bond is required by law to be filed, establishing reserves
     in accordance with GAAP. If Pledgor fails to so discharge or bond or
     contest liens in the manner provided above, then Pledgee may, but shall
     not be required to, procure the release and discharge of any such lien
     and any judgment or decree thereon, and in furtherance thereof may effect
     any reasonable settlement or compromise or furnish any security or
     indemnity as may be required. Pledgor shall reimburse Pledgee, upon
     demand, for any reasonable amounts expended by Pledgee in connection with
     the provisions of this Paragraph (8), and all amounts expended by Pledgee
     hereunder shall be secured by this Agreement. In settling, compromising
     or arranging for the discharge of any liens under this Paragraph (8),
     Pledgee shall not be required to establish or confirm the validity or
     amount thereof.

          (9) The chief executive office of Pledgor, and the principal place
     where the records of Pledgor concerning the Collateral are kept, is 1350
     Avenue of the Americas, 32nd Floor, New York, New York 10019. Pledgor
     shall not change such chief executive office or remove such records
     unless Pledgor shall provide Pledgee with written notice thereof within
     fifteen (15) days after such change (but in any event, within the period
     required pursuant to the Code) and there shall have been taken such
     action, satisfactory to Pledgee, as may be necessary to maintain the
     security interest of Pledgee hereunder at all times fully perfected and
     in full force and effect. Pledgor shall not change its name unless
     Pledgor shall have given Pledgee written notice thereof within fifteen
     (15) days after such change (but in any event, within the period required
     pursuant to the Code) and shall have taken such action, satisfactory to
     Pledgee, as may be necessary to maintain the security interest of Pledgee
     in the Collateral granted hereunder at all times fully perfected and in
     full force and effect.

          (10) Giving effect to the aforesaid grant and assignment to Pledgee,
     Pledgee has, as of the date of this Agreement, and as to Collateral
     acquired from time to time after the date hereof, shall have, a valid,
     perfected and continuing first priority lien upon and security interest
     in the Collateral; provided, however, that no representation or warranty
     is made with respect to the perfected status of the security interest of
     Pledgee in the proceeds of Collateral consisting of "cash proceeds" or
     "non-cash proceeds" as defined in the Code except if, and to the extent,
     the provisions of Section 9-306 of the Code shall be complied with.

          (11) There are no financing statements under the Code covering any
     or all of the Collateral and Pledgor will not, without the prior written
     consent of Pledgee, execute and, until payment in full of all of the
     Obligations, there will not ever be on file in any public office, any
     enforceable financing statement or statements covering any or all of the
     Collateral, except financing statements filed or to be filed in favor of
     Pledgee as secured party.

          (12) Each of the Governing Documents has been duly executed and
     delivered by Pledgor and constitutes the legal, valid and binding
     obligation of Pledgor, enforceable in accordance with its terms, except
     as enforceability may be limited by applicable insolvency, bankruptcy or
     other laws affecting creditors rights generally, or general principles of
     equity, whether such enforceability is considered in a proceeding in
     equity or at law. Pledgor is not in default under or with respect to, nor
     has Pledgor received any notice alleging any default that remains uncured
     under or with respect to, Pledgor's obligations under any Governing
     Document.

          (13) Each of the Governing Documents delivered to Pledgee is a true,
     correct and complete copy of a signed copy thereof of the complete and
     entire Governing Document in effect on the date hereof and has not, as of
     the date hereof, been further modified or amended.

          (14) Pledgor shall deliver to Pledgee a copy of each notice of
     default given or received by it under any Governing Document, promptly,
     but in any event within ten (10) days after, Pledgor gives or receives
     such notice.

          (15) Pledgor shall not withdraw as a shareholder of the Pledged
     Entity, or file or pursue or take any action which may, directly or
     indirectly, cause a dissolution or liquidation of the Pledged Entity or
     seek a partition of any property of the Pledged Entity.

          (16) Pledgor shall not terminate or agree to terminate or amend or
     modify, or agree to amend or modify, any Governing Documents or waive
     compliance with any provision of any Governing Documents without the
     prior written consent of Pledgee in each instance.

          (17) None of the Collateral is, as of the date of this Agreement,
     and as to Collateral which arises from time to time after such date will
     be, evidenced by any instrument, note or chattel paper except such as
     have been or will be duly endorsed to Pledgee or in blank, and delivered
     to Pledgee by Pledgor simultaneously with the creation thereof.

          (18) Pledgor shall, at its sole cost and expense, keep, observe,
     perform and discharge, duly and punctually, all and singular the
     obligations, terms, covenants, conditions, representations and warranties
     of the Governing Documents. Pledgor shall hold Pledgee harmless and
     indemnify it against any cost or expense (including reasonable attorneys'
     fees and disbursements) that Pledgee may incur or sustain by reason of
     the failure on Pledgor's part to so perform and observe any Governing
     Document or to satisfy, perform and observe such conditions thereunder.

          (19) All the shares of the Pledged Stock have been duly and validly
     issued, are fully paid and non-assessable. Except as set forth on
     Schedule 2 attached hereto and made a part hereof, the Pledged Entity
     does not have outstanding any options or rights or other agreements to
     issue stock or other equity interests not outstanding on the date hereof
     or to sell or otherwise transfer all or any portion of any interests in
     the Pledged Entity.

          (20) The Pledged Stock is not listed on any recognized stock
     exchange in the United States of America.

          5. Distributions.

          (a) Unless an Event of Default shall have occurred and be
     continuing, Pledgor at any time may receive and retain all distributions
     or dividends with respect to its interest in the capital or profits or
     other cash distributions or dividends, liquidating or otherwise, with
     respect to the Equity Interests.

          (b) If Pledgor at any time shall be entitled to receive any cash
     distributions or dividends with respect to the Equity Interests or
     otherwise pursuant to any Governing Document, all such amounts shall,
     immediately upon receipt by Pledgor, be remitted to Pledgee for
     application to the Obligations and until so remitted shall be received
     and held by Pledgor in trust for Pledgee. In the event a non-cash
     distribution or dividends shall be paid or made to Pledgor, Pledgor shall
     receive the same in trust for the sole purpose of forthwith delivering
     the same in kind (appropriately endorsed) to Pledgee, subject to the
     terms hereof, to be added to the Collateral hereunder.

          (c) If Pledgor shall become entitled to receive or shall receive
     from the Pledged Entity any instrument, certificate, option or right, as
     an addition to and in respect of, in substitution of, or in exchange for,
     that portion of the Equity Interests relating to its ownership interest
     in the Pledged Entity or any part of any of the foregoing, Pledgor shall
     hold the same as the agent and in trust for Pledgee, and shall deliver it
     forthwith to Pledgee in the exact form received, with Pledgor's
     endorsement or assignment or other instrument as Pledgee may reasonably
     deem appropriate, to be held by Pledgee, as further Collateral for the
     Obligations.

          6. Application of Collateral. All proceeds of any Collateral now or
at any time hereafter received or retained by Pledgee pursuant to the
provisions of this Agreement (including, without limitation, any proceeds from
the sale of all or any portion of the Equity Interests and all distributions,
liquidating and otherwise, received by Pledgee in respect of the Equity
Interests shall, after an Event of Default, be applied by Pledgee to the
Obligations in such order as Pledgee, in its sole and absolute discretion,
shall determine, and, if after all of the Obligations shall have been paid in
full, any surplus then remaining shall be paid to the person or entity
lawfully entitled thereto.

          7. Remedies. If an Event of Default shall occur and then be
continuing:

          (a) Pledgee, without obligation to resort to any other security,
     right or remedy granted under any other agreement or instrument, shall
     have the right to, in addition to all rights, powers and remedies of a
     secured party pursuant to the Code, at any time and from time to time,
     (i) cause any or all of the Equity Interests to be registered in or
     transferred into the name of Pledgee or into the name of a nominee or
     nominees, or designee or designees, of Pledgee; and/or (ii) sell, resell,
     assign and deliver, in its sole discretion, any or all of the Collateral
     or any other collateral security for the Obligations (whether in whole or
     in part and at the same or different times) and all right, title and
     interest, claim and demand therein and right of redemption thereof, at
     public or private sale, for cash, upon credit or for future delivery as
     Pledgee may deem appropriate in a commercially reasonable manner, and in
     connection therewith Pledgee may grant options and may impose reasonable
     conditions such as requiring any purchaser to represent that any
     "securities" constituting any part of the Collateral are being purchased
     for investment only, Pledgor hereby waiving and releasing any and all
     equity or right of redemption. If all or any of the Collateral is sold by
     Pledgee upon credit or for future delivery, Pledgee shall not be liable
     for the failure of the purchaser to purchase or pay for the same and, in
     the event of any such failure, Pledgee may resell such Collateral. It is
     expressly agreed that Pledgee may exercise its rights with respect to
     less than all of the Collateral, leaving unexercised its rights with
     respect to the remainder of the Collateral, provided, however, that such
     partial exercise shall in no way restrict or jeopardize Pledgee's right
     to exercise its rights with respect to all or any other portion of the
     Collateral at a later time or times.

          (b) Pledgee may exercise, either by itself or by its nominee or
     designee, in the name of Pledgor, all of the rights, powers and remedies
     granted to Pledgee in Section 2 hereof in respect of the Governing
     Documents, the Equity Interests, the Pledged Entity, and the other
     Collateral, and may exercise and enforce all of Pledgee's rights and
     remedies hereunder and under law. Such rights and remedies shall include,
     without limitation, the right to exercise all voting, consent and other
     rights relating to the Equity Interests whether in the name of any
     Pledgor or otherwise.

          (c) Pledgee may exercise all of the rights and remedies of a secured
     party under the Code.

          (d) Without limiting any other provision of this Agreement, and
     without waiving or releasing Pledgor from any obligation or default
     hereunder, Pledgee shall have the right, but not the obligation, to
     perform any act or take any appropriate action, as it, in its reasonable
     judgment, may deem necessary to cure such Event of Default or cause any
     term, covenant, condition or obligation required under this Agreement,
     the Line of Credit Agreement, the Loan Documents or any Governing
     Documents, to be performed or observed by Pledgor, to be promptly
     performed or observed on behalf of Pledgor or to protect the security of
     this Agreement. All amounts advanced by, or on behalf of, Pledgee in
     exercising its rights under this Section 7 (including, but not limited
     to, reasonable legal expenses and disbursements incurred in connection
     therewith), together with interest thereon at the default rate set forth
     in the Note (the "Default Rate"), shall be payable by Pledgor to Pledgee
     upon demand and shall be secured by this Agreement.

          8. Attorney-in-fact.

          (a) Pledgor hereby irrevocably authorizes and empowers Pledgee and
     its successors and/or assigns and transfers unto Pledgee, and constitutes
     and appoints Pledgee its true and lawful attorney-in-fact, and as its
     agent, irrevocably, with full power of substitution for it and in its
     name, for the purpose of carrying out the provisions of this Agreement
     and taking any action and executing any instrument which Pledgee may deem
     necessary or advisable to accomplish the purposes hereof. Without
     limiting the generality of the foregoing, upon the occurrence and during
     the continuation of an Event or Default, Pledgee shall have the right to
     exercise and enforce every right, power, remedy, authority, option and
     privilege of Pledgor under the Governing Documents or with respect to the
     Pledged Stock, including, without limitation, any power to subordinate,
     terminate, cancel or modify any Governing Documents or to give any
     notices, or to take any action resulting in such subordination,
     termination, cancellation or modification and to furnish any information,
     to make any demands, to execute any instruments and to take any and all
     other action on behalf of and in the name of Pledgor which, in the
     opinion of Pledgee, may be necessary or appropriate to be given,
     furnished, made, exercised or taken under any Governing Documents or with
     respect to the Pledged Stock in order to comply therewith, to perform the
     conditions thereof or to prevent or remedy any default by Pledgor
     thereunder or to enforce any of Pledgor's rights thereunder or with
     respect to the Pledged Stock. Pledgee may, during the continuation of an
     Event of Default, without notice to, or assent by, Pledgor or any other
     Person (to the extent permitted by law), but without affecting any of the
     Obligations, in the name of Pledgor or in the name of Pledgee, notify any
     other party to any Governing Documents to make payment and performance
     directly to Pledgee; extend the time of payment and performance of,
     compromise or settle for cash, credit or otherwise, and upon any terms
     and conditions, any obligations owing to Pledgor, or claims of Pledgor,
     under any Governing Documents or with respect to the Pledged Stock; file
     any claims, commence, maintain or discontinue any actions, suits or other
     proceedings deemed by Pledgee necessary or advisable for the purpose of
     collecting upon or enforcing any Governing Documents or with respect to
     the Pledged Stock; execute and file proof claim for the full amount of
     any Collateral and vote such claims for the full amount thereof (x) for
     or against proposal or resolution, (y) for a trustee or trustees or for a
     receiver or receivers or for a committee of creditors and/or (z) for the
     acceptance or rejection of any proposed arrangement, plan or
     reorganization, composition or extension, and Pledgee or its nominee may
     receive any payment or distribution and give acquittance therefor and may
     exchange or release Collateral; and execute any instrument and do all
     other things deemed necessary and proper by Pledgee to protect and
     preserve and realize upon the Collateral and the other rights
     contemplated hereby. This power-of-attorney is irrevocable and coupled
     with an interest, and any similar or dissimilar powers heretofore given
     by Pledgor in respect of the Equity Interests to any other Person are
     hereby revoked.

          (b) Further, without limiting the generality of the foregoing,
     Pledgee, after the occurrence and during the continuation of an Event of
     Default, shall have the right and power to receive, endorse and collect
     all checks and other orders for the payment of money made payable to
     Pledgor representing any interest, payment of principal or other
     distribution payable in respect of the Collateral or any part thereof,
     and for and in the name, place and stead of Pledgor, to execute
     endorsements, assignments or other instruments of conveyance or transfer
     in respect of the Equity Interests or any other property which is or may
     become a part of the Collateral hereunder.

          9. Sales of Collateral. No demand, advertisement or notice, all of
which are hereby expressly waived by Pledgor, shall be required in connection
with any sale or other disposition of all or any part of the Collateral,
except that Pledgee shall give Pledgor at least ten (10) days' prior written
notice of the time and place of any public sale or of the time and the place
where any private sale or other disposition is to be made, which notice
Pledgor hereby agrees is reasonable, all other demands, advertisements and
notices being hereby waived. To the extent permitted by law, Pledgee shall not
be obligated to make any sale of the Collateral if it shall determine not to
do so, regardless of the fact that notice of sale may have been given, and
Pledgee may without notice or publication adjourn any public or private sale,
and such sale may, without further notice, be made at the time and place to
which the same was so adjourned. Upon each private sale of the Collateral of a
type customarily sold in a recognized market and upon each public sale, unless
prohibited by any applicable statute which cannot be waived, Pledgee (or its
nominee or designee) may purchase any or all of the Collateral being sold,
free and clear of and discharged from any trusts, claims, equity or right of
redemption of Pledgor all of which are hereby waived and released to the
extent permitted by law, and may make payment therefor by credit against any
of the Obligations in lieu of cash or any other obligations. In the case of
all sales of the Collateral, public or private, Pledgor will pay all costs and
expenses of every kind for sale or delivery, including, without limitation,
brokers' and reasonable attorneys' fees and disbursements and any stamp,
transfer or other tax imposed thereon. However, the proceeds of sale of
Collateral shall be available to cover such costs and expenses, and, after
deducting such costs and expenses from the proceeds of sale, Pledgee shall
apply any residue to the payment of the Obligations.

          10. Securities Act of 1933, Etc. Pledgor recognizes that Pledgee may
be unable to effect a public sale of all or a part of the Collateral by reason
of certain prohibitions contained in the Securities Act of 1933, as amended,
as now or hereafter in effect, or in applicable Blue Sky or other state
securities laws, as now or hereafter in effect, but may be compelled to resort
to one or more private sales to a restricted group of purchasers who will be
obliged to agree, among other things, to acquire such Collateral for their own
account, for investment and not with a view to the distribution or resale
thereof. If, at the time of any sale of Collateral, the same or any part
thereof to be sold shall not, for any reason whatsoever, be effectively
registered under the Securities Act of 1933, as then in effect, Pledgee, in
its sole and absolute discretion, is hereby authorized to sell such Collateral
or such part thereof by private sale in such manner and under such
circumstances as Pledgee may reasonably deem necessary or advisable in order
that such sale may legally be effected without registration. Pledgor
acknowledges that private sales so made may be at prices and on other terms
less favorable to the seller than if such Collateral were sold at public
sales, and agrees that Pledgee has no obligation to delay the sale of any such
Collateral for the period of time necessary to permit the issuer of such
Collateral, even if such issuer would agree, to register such Collateral for
public sale under such applicable securities laws. Pledgor agrees that private
sales made under the foregoing circumstances shall not, because so made, be
deemed to have been made in a commercially unreasonable manner.

          11. Waivers; Modifications. No delay on the part of Pledgee in
exercising any of its options, powers or rights, or partial or single exercise
thereof, shall constitute a waiver thereof. None of the terms and conditions
of this Agreement may be discharged, changed, waived, modified or varied in
any manner unless in a writing duly signed by the parties hereto.

          12. Remedies Cumulative. All rights and remedies afforded to Pledgee
by reason of this Agreement are separate and cumulative remedies, and shall be
in addition to all other rights and remedies in favor of Pledgee existing at
law or in equity or otherwise. No one of such remedies, whether or not
exercised by Pledgee, shall be deemed to exclude, limit or prejudice the
exercises of any other legal or equitable remedy or remedies available to
Pledgee.

          13. Notices. All notices, requests and other communications to any
party hereunder shall be in writing (including bank wire, telex, facsimile
transmission or similar writing) addressed to Pledgor at the address provided
on the first page of this Agreement, Attention: Jason Barnett, Esq. with a
copy to: Brown & Wood LLP, One World Trade Center, New York, New York 10048,
Attention: Jeffrey Feigelson, Esq.; and addressed to Pledgee at the address
provided on this first page of this Agreement, Attention: Simon Leopold, with
a copy to Loeb & Loeb LLP, 345 Park Avenue, New York, New York 10154,
Attention: Kenneth D. Freeman, Esq., Telephone: (212) 407-4086, Telecopy:
(212) 407-4990; or in the case of any party, such other address or telecopy
number as such party may hereafter specify for the purpose by notice to the
other party. Each such notice, request or other communication shall be
effective (i) if given by telecopy, when such telecopy is transmitted to the
telecopy number specified in this Section 13, (ii) if given by mail, 72 hours
after such communication is deposited in the mails with first class postage
prepaid, addressed as aforesaid or (iii) if given by any other means, when
delivered at the address specified in this Section 13.

          14. Jurisdiction, Etc. Any legal action or proceeding with respect
to this Agreement and any action for enforcement of any judgment in respect
thereof may be brought in the courts of the State of New York or of the United
States of America for the Southern or the Eastern District of New York, and,
by execution and delivery of this Agreement, Pledgor hereby accepts for itself
and in respect of its property, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts and appellate courts.
Pledgor irrevocably consents to the service of process in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to Pledgor at its address set forth in Section 13 hereof.
Pledgor hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Agreement brought in the courts
referred to above and hereby further irrevocably waives and agrees not to
plead or claim in any such court that any such action or proceeding brought in
any such court has been brought in an inconvenient forum. Nothing herein shall
affect the right of Pledgee to serve process in any other manner permitted by
law or to commence legal proceedings or otherwise proceed against Pledgor in
any other jurisdiction.

          15. Successors and Assigns. This Agreement, and all representations,
warranties and covenants of Pledgor made herein, shall be binding upon and
inure to the benefit of Pledgor and its successors and assigns, provided that
nothing in this Section 15 shall be deemed to constitute the consent of
Pledgee to any transaction in this Agreement elsewhere not permitted. This
Agreement shall be binding upon and shall inure to the benefit of Pledgee and
its successors and assigns.

          16. Pledgee Not Bound.

          (a) Nothing herein shall be construed to make Pledgee liable as a
     partner of the Pledged Entity, and Pledgee, by virtue of this Agreement
     or otherwise (except as referred to in the following sentence) shall not
     have any of the duties, obligations or liabilities of a partner of the
     Pledged Entity. The parties hereto expressly agree that, unless and until
     Pledgee shall become the absolute owner of all or any portion of the
     Equity Interests pursuant hereto, this Agreement shall not be construed
     as creating a partnership or joint venture between Pledgee and Pledgor.

          (b) Pledgee, by accepting this Agreement, does not intend to become
     a partner of the Pledged Entity or Pledgor or otherwise be deemed to be a
     co-venturer with respect to the Pledged Entity or Pledgor either before
     or after an Event of Default shall have occurred. Pledgee, by accepting
     this Agreement, shall assume none of the duties, obligations or
     liabilities of a partner of the Pledged Entity or of Pledgor.

          (c) Pledgee shall not be obligated to perform or discharge any
     obligation of Pledgor as a result of the collateral assignment hereby
     effected.

          (d) The acceptance by Pledgee of this Agreement, with all the
     rights, powers, privileges and authority so created, shall not at any
     time or in any event obligate Pledgee to appear in or defend any action
     or proceeding relating to the Collateral to which it is not a party, or
     to take any action hereunder or thereunder, or to expend any money or
     incur any expenses or perform or discharge any obligation, duty or
     liability under the Collateral.

          17. Acts of Pledgee. All Collateral at any time delivered to Pledgee
pursuant hereto shall be held by Pledgee subject to the terms, covenants and
conditions set forth in this Agreement. Neither Pledgee nor any of Pledgee's
directors, officers, agents, employees or counsel shall be liable for any
action taken or omitted to be taken by such party or parties relative to any
of the Collateral, except for such party's or parties' own gross negligence or
willful misconduct. Pledgee shall be entitled to rely in good faith upon any
writing or other document, telegram or telephone conversation reasonably
believed by it to be genuine and correct and to have been signed, sent or made
by the proper person or persons, and, with respect to any legal matter,
Pledgee may rely in acting or in refraining from acting upon the advice of
counsel selected by it concerning all matters hereunder. Pledgor hereby agrees
to indemnify and hold harmless Pledgee, its successors and assigns, and any of
Pledgee's directors, officers, agents, and employees and their respective
successors and assigns (collectively, the "Indemnified Parties") from and
against any and all claims, demands, losses, judgments and liabilities arising
out of or resulting from the sale or disposition of all or a portion of the
Collateral, including, without limitation, the Equity Interests, together with
interest on such sums at the Default Rate, from the date such expenses were
paid by Pledgee to the date of payment to Pledgee of such sums. In any action
to enforce this Agreement, the provisions of this Section 17 shall, to the
extent permitted by law, prevail notwithstanding any provision of applicable
law respecting the recovery of costs, disbursements and allowances to the
contrary.

          18. Custody of Collateral; Notice of Exercise of Remedies. Pledgee
shall not have any duty as to the collection or protection of the Collateral
or any income thereon or payments with respect thereto, or as to the
preservation of any rights pertaining thereto beyond exercising reasonable
care with respect to the custody of any thereof actually in its possession.
Pledgor hereby waives notice of acceptance hereof, and except as otherwise
specifically provided herein or required by provision of law which may not be
waived, hereby waives any and all notices or demands with respect to any
exercise by Pledgee of any rights or powers which it may have or to which it
may be entitled with respect to the Collateral.

          19. Severability. In case any one or more of the provisions
contained in this Agreement shall be found to be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby, and this Agreement shall continue in full force and effect
in accordance with its remaining terms.

          20. Further Assurances. Pledgor agrees to do such further acts and
things and to execute and deliver to Pledgee such additional conveyances,
assignments, agreements and instruments as Pledgee from time to time may
reasonably require or deem advisable to carry into effect this Agreement or to
further assure and confirm unto Pledgee its rights, powers and remedies
hereunder. Pledgor hereby agrees to sign and deliver to Pledgee financing
statements, in form acceptable to Pledgee, as Pledgee may from time to time
reasonably request or as are necessary in the opinion of Pledgee to establish
and maintain a valid and perfected security interest in the Collateral and to
pay any filing fees relative thereto. Pledgor also authorizes Pledgee, to the
extent permitted by law, to file such financing statements without the
signature of such Pledgor and further authorizes Pledgee, to the extent
permitted by law, to file a photographic or other reproduction of this
Agreement or of a financing statement in lieu of a financing statement.

          21. Headings. The Article and/or Section headings in this Agreement
are included herein for convenience of reference only and shall not constitute
a part of this Agreement for any other purpose.

          22. Release. Pledgee agrees to release its security interest in the
Collateral upon satisfaction of all of the following conditions precedent:

          (a) That the documents to effect such release be prepared by
     Pledgor's counsel, in form and substance reasonably satisfactory to
     Pledgee, at the expense of Pledgor;

          (b) That the Obligations shall have been fully paid, no letters of
     credit issued by Pledgee pursuant to the Line of Credit Agreement shall
     be outstanding and Pledgee shall have no further obligation under the
     Line of Credit Agreement or the Loan Documents to issue any such letters
     of credit; and

          (c) That (i) all costs, fees, expenses and other sums paid or
     incurred by or on behalf of Pledgee in exercising any of its rights,
     powers, options, privileges and remedies hereunder, under the Line of
     Credit Agreement or under any of the Loan Documents, including, without
     limitation, reasonable attorneys' fees and disbursements, and (ii) any
     and all other obligations and liabilities of Pledgor to Pledgee arising
     out of or in connection with or otherwise related to the Line of Credit
     Agreement and any Applications shall have been fully paid.

          Any such release and any documents delivered to confirm the same
shall expressly provide that such release is made without recourse and without
any representation or warranty, express or implied (except that Pledgee shall
represent that such release has been and is duly authorized, that all
necessary consents to the execution and delivery thereof have been obtained
and that it has not assigned or encumbered the Collateral or its interest
therein). If the Collateral is so released, Pledgee, at the request and sole
cost and expense of Pledgor, will execute and deliver to Pledgor a proper
instrument or instruments acknowledging the satisfaction and termination of
this Agreement, and will duly assign, transfer and deliver, without recourse
and without any representation or warranty, express or implied (except that
Pledgee shall represent that such instruments or documents have been and are
duly authorized, that all necessary consents to the execution and delivery
thereof have been obtained and that it has not assigned or encumbered the
Collateral or its interest therein), to Pledgor such of the Collateral as may
be in the possession of Pledgee and as has not theretofore been sold or
otherwise applied or released pursuant to this Agreement, together with any
moneys at the time held by Pledgee hereunder and not applied to the payment of
the Obligations.

          23. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of New York applicable
to contracts entered into and to be performed entirely within such State and
without regard to the conflicts or choice of laws rules of such State. This
Agreement, together with the Line of Credit Agreement, the other Loan
Documents and the other documents and instruments entered into in connection
herewith and therewith, set forth the entire understanding of the parties
hereto and thereto with respect to the subject matter hereof and thereof and
supersedes all prior agreements and understandings, whether oral or written,
relating thereto.

          24. Miscellaneous.

          (a) In enforcing any rights hereunder or under the Line of Credit
     Agreement or the other Loan Documents, Pledgee shall not be required to
     resort to any particular security, right or remedy through foreclosure or
     otherwise or to proceed in any particular order of priority, or otherwise
     act or refrain from acting, and, to the extent permitted by law, Pledgor
     hereby waives and releases any right to a marshalling of assets or a sale
     in inverse order of alienation.

          (b) Whenever any payment or performance of any obligation hereunder
     shall be due on a day which is not a Business Day, such payment or
     performance shall be made on the next succeeding Business Day and such
     extension of time shall be included in the computation of the time period
     within which such payment may be made or performance rendered without an
     Event of Default occurring hereunder.

          (c) Pledgor hereby waives any claim for monetary damages against
     Pledgee which it may have based on any assertion that Pledgee has
     unreasonably withheld or unreasonably delayed any determination, consent
     or approval hereunder, and Pledgor agrees that its sole remedy shall be
     an action or proceeding to enforce any such provision or for specific
     performance, injunction or declaratory judgment with respect thereto. In
     the event of such a determination in favor of Pledgor in an action or
     proceeding seeking only the relief permitted hereunder, the requested
     determination, consent or approval shall be deemed to have been granted.
     However, Pledgee shall have no liability to Pledgor for its refusal or
     failure to give such determination, consent or approval.

          (d) Pledgee agrees at any time and from time to time upon not less
     than ten (10) Business Days' prior notice by Pledgor to execute,
     acknowledge and deliver to Pledgor or any other party specified by
     Pledgor a statement in writing certifying that this Agreement is
     unmodified and in full force and effect (or if there have been
     modifications, that the same, as modified, is in full force and effect
     and stating the modifications), and stating whether or not to the best
     knowledge of Pledgee there is a continuing Event of Default, and, if so,
     specifying each such Event of Default.

          (e) Pledgor agrees at any time and from time to time upon not less
     than ten (10) Business Days' prior notice by Pledgee to execute,
     acknowledge and deliver to Pledgee, or any other party specified by
     Pledgee, a statement in writing certifying that this Agreement is
     unmodified and in full force and effect (or if there have been
     modifications, that the same, as modified, is in full force and effect
     and stating the modifications) and stating whether or not to the best
     knowledge of Pledgor there is a continuing Default or Event of Default,
     and, if so, specifying each such Event of Default.

          (f) This Agreement may be signed in counterparts.

          25. Limits on Indebtedness. (a) It shall also be an Event of Default
if at any time the following fraction exceeds 55%: (x) the Indebtedness of the
Pledgor plus the allocable share of the Indebtedness of Controlled
Subsidiaries over (y)(i) the fully diluted number of shares of common stock of
the Pledgor multiplied by the average listed exchange price of such common
stock over the preceding thirty (30) days plus (ii) the liquidation preference
of preferred stock of the Pledgor plus (iii) the amount calculated in
accordance with the preceding clause (x).

          (b) "Contingent Obligation" as to any Person means, without
duplication, (i) any contingent obligation of such Person required to be shown
on such Person's balance sheet in accordance with GAAP, and (ii) any
obligation required to be disclosed in the footnotes to such Person's
financial statements in accordance with GAAP, guaranteeing partially or in
whole any non-recourse Indebtedness, lease, dividend or other obligation,
exclusive of contractual indemnities (including, without limitation, any
indemnity or price adjustment provision relating to the purchase or sale of
securities or other assets) and guarantees of non-monetary obligations (other
than guarantees of completion) which have not yet been called on or
quantified, of such Person or of any other Person. Notwithstanding the
foregoing, any litigation required to be disclosed in the footnotes to such
Person's financial statements in accordance with GAAP shall not be included as
a "Contingent Obligation" unless the same shall have been reserved for in
accordance with GAAP. Notwithstanding anything contained herein to the
contrary, guarantees of completion shall not be deemed to be Contingent
Obligations unless and until a claim for payment has been made thereunder, at
which time any such guaranty of completion shall be deemed to be a Contingent
Obligation. Notwithstanding anything contained herein to the contrary,
"Contingent Obligations" shall not be deemed to include guarantees of loan
commitments or of construction loans to the extent the same have not been
drawn.

          (c) "Contractual Obligation", as applied to any Person, means any
provision of any Securities issued by that Person or any indenture, mortgage,
deed of trust, security agreement, pledge agreement, guaranty, contract,
undertaking, agreement or instrument to which that Person is a party or by
which it or any of its properties is bound, or to which it or any of its
properties is subject.

          (d) "Controlled Subsidiary" means any Subsidiary of which the
Pledgor controls a majority of the board of directors or can otherwise direct
or cause the direction of the management and policies thereof whether through
the ownership of voting equity Securities or by contract or otherwise, except
that HQ Global Holdings, Inc. and its Subsidiaries shall not be Controlled
Subsidiaries of the Pledgor.

          (e) "GAAP" means generally accepted accounting principles set forth
in the opinions and pronouncements of the American Institute of Certified
Public Accountants' Accounting Principles Board and Financial Accounting
Standards Board or in such other statements by such other entity as may be in
general use by significant segments of the accounting profession as in effect
on the date hereof.

          (f) "Indebtedness", as applied to any Person, means at any time,
without duplication, (a) all indebtedness, obligations or other liabilities of
such Person (whether consolidated or representing the proportionate interest
in any other Person) (i) for borrowed money (including construction loans) or
evidenced by debt securities, debentures, acceptances, notes or other similar
instruments, and any accrued interest and fees relating thereto, (ii) under
profit payment agreements or in respect of obligations to redeem, repurchase
or exchange any Securities of such Person or to pay dividends in respect of
any preferred stock (but only to the extent that such Person shall be
contractually obligated to pay the same), (iii) with respect to letters of
credit issued for such Person's account, (iv) to pay the deferred purchase
price of property or services, except accounts payable and accrued expenses
arising in the ordinary course of business, (v) in respect of capital leases,
(vi) which are Contingent Obligations or (vii) under indemnities but only at
such time as a claim shall have been made thereunder; (b) all indebtedness,
obligations or other liabilities of such Person or others secured by a lien on
any property of such Person, whether or not such indebtedness, obligations or
liabilities are assumed by such Person, all as of such time; (c) all
indebtedness, obligations or other liabilities of such Person in respect of
interest rate contracts and foreign exchange contracts, net of liabilities
owed to such Person by the counterparties thereon; (d) all preferred stock
subject (upon the occurrence of any contingency or otherwise) to mandatory
redemption; and (e) all Contractual Obligations with respect to any of the
foregoing.

          (g) "Securities" means any stock, shares, voting trust certificates,
partnership interests, bonds, debentures, notes or other evidence of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as "securities", including, without
limitation, any "security" as such term is defined in Section 8-102 of the
Uniform Commercial Code, or any certificates of interest, shares, or
participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire any of the
foregoing, but shall not include the Obligations.

          (h) "Subsidiary" of a Person shall mean any corporation, limited
liability company, general or limited partnership, or other entity of which
securities or other ownership interests having ordinary voting power to elect
one or more members of the board of directors or other persons performing
similar functions are at the time directly or indirectly owned or controlled
by such Person, one or more of the other subsidiaries of such Person or any
combination thereof.

<PAGE>

          IN WITNESS WHEREOF, the parties have duly executed and delivered
this Agreement in the City of New York as of the day and year first above
written.

                                             PLEDGOR:

                                             FRONTLINE CAPITAL GROUP

                                             By: _____________________________
                                                 Name:
                                                 Title:

                                             PLEDGEE:

                                             BANKERS TRUST COMPANY

                                             By: _____________________________
                                                 Name:
                                                 Title:

<PAGE>

<TABLE>
<CAPTION>
                                                  SCHEDULE 1
                                                  ----------

                                            NAME OF PLEDGED ENTITY

-------------------------------------------------------------------------------------------------------------
                                              Current Equity Interest and
          Name of Pledged Entity                  the Holder Thereof              Governing Documents
-------------------------------------------- ----------------------------- ----------------------------------

<S>                                          <C>                           <C>
HQ Global Holdings, Inc., a Delaware         3,013,833 shares of the       Certificate of Incorporation
corporation (the "Pledged Entity")           common stock (voting), with
                                             a par value of one cent
                                             ($0.01) per share, of HQ      Certificate of Designation of
                                             Global Holdings, Inc., a      Pledged Series A Convertible
                                             Delaware corporation (the     Cumulative Preferred Stock)
                                             "Pledged Entity")
                                             representing _____% of the
                                             issued and outstanding        By-Laws of Pledged Entity
                                             shares of capital stock of
                                             the Pledged Entity on a
                                             fully diluted basis.          Exchange Agreement dated as of
                                                                           May 31, 2000 between the Pledgor
                                                                           and the Pledged Entity

                                                                           Purchase Agreement dated as of
                                                                           May 31, 2000 between Pledgor and
                                                                           the Pledged Entity

                                                                           Stockholders' Agreement dated as of
                                                                           May 31, 2000, among the Pledged
                                                                           Entity, the Pledgor and the other
                                                                           stockholders of the Pledged Entity
                                                                           party thereto.

                                                                           Registration Rights Agreement dated
                                                                           as of May 31, 2000, among the
                                                                           Pledged Entity and the stockholders
                                                                           party thereto.

                                                                           All other agreements, documents and
                                                                           instruments involving, related to
                                                                           and/or governing the Pledged Stock
                                                                           or which inure to the benefit of
                                                                           the holders of Pledged Stock.

-------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                  SCHEDULE 2
                                  ----------
                           OUTSTANDING STOCK OPTIONS
                          AND SHAREHOLDER AGREEMENTS

Shareholder Agreements:

     1.   Stockholders Agreement, dated as of May 31, 2000, by and among
          FrontLine Capital Group, HQ Global Holdings, Inc. and CarrAmerica
          Realty Corporation (the "CarrAmerica Stockholders Agreement").

     2.   Stockholders Agreement dated May 31, 2000, by and among FrontLine
          Capital Group, HQ Global Holdings, Inc. and certain holders of
          Series A Preferred Stock.

Warrants and Warrant Agreements:

     1.   Warrants to purchase 2,143,332 shares of Common Stock (subject to
          antidilution rights), dated May 31, 2000, issued to holders of
          Series A Preferred Stock.

     2.   Warrants to purchase 1,498,538 shares of Common Stock (subject to
          antidilution rights) dated May 31, 2000, issued to UBS AG Stamford
          Branch.

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

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

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

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

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

          o    In the event the Pledged Entity issues non-voting common stock
               of the Pledged Entity that is less than fair market value
               (other than stock options or

          o    restricted stock pursuant to stock option plans) the
               warrantholders are entitled to an adjustment of the warrant
               shares purchasable under the Warrant.

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

Stock Options:

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

     2.   Pursuant to the Agreement and Plan of Merger by and among HQ Global
          Workplaces, Inc. and Carr America Realty Corporation, on the one
          hand, and VANTAS Incorporated and FrontLine Capital Group (formerly
          known as Reckson Service Industries, Inc.), on the other hand, dated
          as of January 20, 2000, as amended as of April 29, 2000 and as of
          May 30, 2000 (collectively, the "Merger Agreement"), at the
          effective time of the "Merger" (as defined in the Merger Agreement),
          each outstanding option to purchase shares of VANTAS Common Stock
          granted under the VANTAS 1996 Stock Option Plan (the "VANTAS 1996
          Stock Options"), is automatically amended to constitute an option to
          acquire the number of shares of Voting Common Stock of the Pledged
          Entity as the holder of such VANTAS 1996 Stock Option would have
          been entitled to receive as Merger Consideration in the Merger had
          such holder exercised such VANTAS 1996 Stock Option (free of and
          without regard to any limitation on the vesting of the right to
          exercise such VANTAS 1996 Stock Option) immediately prior to the
          effective time of the Merger at an exercise price equal to the
          quotient of (a) the applicable exercise price for each such VANTAS
          1996 Stock Option immediately prior to the effective time of the
          Merger divided by (b) the "Conversion Ratio" (as defined in the
          Merger Agreement).

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

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

          o    250 Options at an exercise price of $4.75

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

     3.   As soon as practicable following the effective time of the Merger,
          Mr. Gary Kusin and Mr. David Rupert will receive options to purchase
          common stock of the Pledged Entity with a value equal to 6X and 4X,
          respectively, of their respective "Base Compensation" (as defined in
          the Agreement to Amend Employment Agreement between Gary Kusin and
          HQ Global Workplaces, Inc., dated January 14, 2000), or $3,600,000
          or $1,600,000, respectively, which will become exercisable over a
          four-year period (37.5% after 18 months, then 12.5% every 6 months
          up to 100% in total, provided in each case that the person is still
          employed by the Pledged Entity on the applicable vesting date). The
          exercise price per share will equal the per share valuation used for
          purposes of the Merger.

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

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

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