Document:

Exhibit 10.6

                     INDEMNIFICATION AND ESCROW AGREEMENT

         THIS INDEMNIFICATION AND ESCROW AGREEMENT (this "Agreement") is
entered into as of the 1st day of June, 2000 by and among FrontLine Capital
Group (formerly known as Reckson Services Industries, Inc.), a Delaware
corporation ("RSI"), CarrAmerica Realty Corporation, a Maryland corporation
("CarrAmerica"), Strategic Omni Investors LLC, a Delaware limited liability
company ("Strategic Omni"), Security Capital Holdings S.A., a Luxembourg
corporation ("SC-USRealty"), The Oliver Carr Company, a District of Columbia
corporation ("OCCO"), Carr Holdings LLC, a Maryland limited liability company
("Carr Holdings"), and the additional persons who are shown on the signature
page hereto (the "Additional Indemnitors") (CarrAmerica, Strategic Omni,
SC-USRealty, OCCO, Carr Holdings, and each of the Additional Indemnitors,
collectively the "Shareholders" and individually a "Shareholder"; sometimes
collectively referred to herein with RSI as "Depositors" and individually a
"Depositor") and Citibank, N.A., a New York corporation, as escrow agent
hereunder (the "Escrow Agent").

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

         WHEREAS, RSI, CarrAmerica, VANTAS Incorporated, a Nevada corporation
("VANTAS"), and HQ Global Workplaces, Inc., a Delaware corporation ("HQGW"),
have entered into an Agreement and Plan of Merger dated as of January 20,
2000, as amended as of April 29, 2000 and as of May 31, 2000 (the "Merger
Agreement") pursuant to which VANTAS will merge with and into HQGW ("the
Merger");

         WHEREAS, on the date hereof, pursuant to an agreement among certain
of the Shareholders and RSI dated as of January 20, 2000 (the "Stock Purchase
Agreement"), certain of the Shareholders are selling to RSI, and RSI is
purchasing from such Shareholders, that number of the shares of voting common
stock, par value $.01 per share, and non-voting common stock, par value $.01
per share, of Holdco as set forth in, and subject to the terms and conditions
of, the Stock Purchase Agreement;

         WHEREAS, on the date hereof, pursuant to the Merger Agreement, each
issued and outstanding share of (A) common stock, par value $.01 per share
("VANTAS Common Stock"), of VANTAS shall be converted into the right to
receive $8.00 per share in cash and (B) (i) Series A Convertible Preferred
Stock, par value $.01 per share, of VANTAS (the "Series A Stock"), (ii) Series
B Convertible Preferred Stock, par value $.01 per share, of VANTAS (the
"Series B Stock"), (iii) Series C Convertible Preferred Stock, par value $.01
per share, of VANTAS (the "Series C Stock"), (iv) Series D Convertible
Preferred Stock, par value $.01 per share, of VANTAS (the "Series D Stock"),
and (v) Series E Convertible Preferred Stock, par value $.01 per share of
VANTAS (the "Series E Stock"), other than shares of Series A Stock, Series B
Stock, Series C Stock, Series D Stock and Series E Stock held in the treasury
of VANTAS, are, by virtue of the Merger and without any action on the part of
the holder thereof, being converted into the right to receive shares of voting
common stock of HQGW;

         WHEREAS, as a condition to the consummation by VANTAS and/or RSI, as
applicable, of the transactions contemplated by the Merger Agreement, the
Stock Purchase Agreement, and that certain Stock Purchase Agreement by and
among VANTAS, RSI, CarrAmerica, OmniOffices (UK) Limited ("Omni UK") and
OmniOffices (Lux) 1929 Holding Company S.A. ("LuxCo") (the "UK Agreement"),
(i) the Shareholders have hereby agreed to indemnify and hold harmless RSI
from and against certain losses related to the Merger Agreement and the Stock
Purchase Agreement, and (ii) CarrAmerica has hereby agreed to indemnify and
hold harmless RSI from and against certain losses related to the UK Agreement,
upon the terms and conditions provided herein;

         WHEREAS, as a condition to the consummation by HQGW and the
applicable Shareholders of the transactions contemplated by the Merger
Agreement, the Stock Purchase Agreement and the UK Agreement, RSI has agreed
to indemnify and hold harmless certain Shareholders from and against certain
losses from certain matters upon the terms and conditions provided herein;

         WHEREAS, in connection with the Shareholders' indemnification
obligations, the parties have agreed that the Shareholders are depositing an
aggregate of 706,612 shares of non-voting common stock of Holdco (the
"Non-Voting Common Stock") (collectively, the "Shareholder Indemnification
Shares") and $4,158,492 in cash (the "Shareholder Cash Collateral") with the
Escrow Agent to be held and disbursed by the Escrow Agent in accordance with
this Agreement, with such Shareholder Indemnification Shares and Shareholder
Cash Collateral having an aggregate initial value of $30,000,000 as of the
Closing;

         WHEREAS, in connection with RSI's indemnification obligations, the
parties have agreed that RSI is depositing an aggregate of 820,322 shares of
voting common stock of Holdco (the "Voting Common Stock") (the "RSI
Indemnification Shares," and together with the Shareholder Indemnification
Shares, the "Indemnification Shares") with the Escrow Agent to be held and
disbursed by the Escrow Agent in accordance with this Agreement, with the RSI
Indemnification Shares having an aggregate initial value of $30,000,000 as of
the Closing;

         WHEREAS, capitalized words and phrases used and not defined herein
shall have the meanings ascribed to them in the Merger Agreement; and

         WHEREAS, the Escrow Agent is willing to establish and administer this
escrow on the terms set forth in this Agreement.

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

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

         "Cash Collateral" shall mean the Shareholder Cash Collateral and any
cash deposited by RSI or any Shareholder in the Escrow Account in substitution
of RSI Indemnification Shares or Shareholder Indemnification Shares in
accordance with Section 2(b).

         "Company Level Loss" shall mean any loss, liability, claim, damage or
expense (including reasonable legal fees and expenses) directly or indirectly
incurred by HQGW or its Subsidiaries and VANTAS or its Subsidiaries
respectively; it being understood that a Company Level Loss shall not include
any consequential, incidental or punitive damages or any Direct Loss.

         "Escrow Property" shall mean the Indemnification Shares and the Cash
Collateral delivered to the Escrow Agent, together with all interest,
dividends and other distributions and payments thereon received by Escrow
Agent, less any property and/or funds distributed or paid in accordance with
this Agreement.

         "Loss" or "Losses" shall mean a Company Level Loss or a Direct Loss.

         "Direct Loss" shall mean any loss, liability, claim, damage or
expense (including reasonable legal fees and expenses) incurred by (i) any
Shareholder Indemnitee arising from, relating to or as a result of the
inaccuracy at the time made or deemed made of any of the representations or
warranties set forth in: (a) Section 5(B) of the Merger Agreement; and (b)
Section 5 of the Stock Purchase Agreement; or (ii) RSI Indemnitees arising
from, relating to, or as a result of the inaccuracy at the time made or deemed
made of any of the representations or warranties set forth in: (a) Section
4(B) of the Merger Agreement; (b) Section 4 of the Stock Purchase Agreement
and (c) Article II, Section (B) of the UK Agreement; it being understood that
a Direct Loss shall not include (x) any consequential, incidental or punitive
damages, (y) any loss or damages suffered by such party as a result of the
diminution in value (either directly or indirectly) of the interest held by
such party in the Holdco, or (z) any Company Level Loss.

         "Market Value" shall mean $36.57 per share.

         "Ownership Percentage" shall mean, with respect to a Shareholder, the
percentage set forth opposite such Shareholder's name on Schedule A attached
hereto.

         "RSI Indemnitees" shall mean RSI and its directors, officers,
employees, shareholders, agents and representatives.

         "RSI's Indemnification Share" shall mean one (1) minus the
Shareholder's Indemnification Share.

         "Shareholder Indemnitees" shall mean the Shareholder listed on
Schedule C attached hereto and its directors, officers, employees,
shareholders, agents and representatives.

         "Shareholder Litigation" shall mean the legal proceedings disclosed
in Schedule 4(p) of the Merger Agreement under the caption "Omni Offices, Inc.
and CarrAmerica Realty Corporation v. Joseph Kaidanow and Robert Arcoro" and
any and all other claims, counterclaims, causes of actions or other
proceedings threatened or initiated by or on behalf of Robert Arcoro
("Arcoro") or Joseph Kaidanow ("Kaidanow") that relate to facts or
circumstances or alleged facts or alleged circumstances arising on or prior to
May 31, 2000 (the "Closing Date"), other than any such claims, causes of
action or other proceedings with respect to and only to the extent of
allegations thereon that any information supplied in writing by RSI to
CarrAmerica for inclusion in materials that HQGW delivers to Arcoro or
Kaidanow in connection with the Merger contains any untrue statement of a
material fact with respect to RSI or VANTAS or omits to state a material fact
necessary in order to make the statements therein with respect to RSI or
VANTAS not misleading.

         "Shareholders' Indemnification Share" shall mean the aggregate
percentage ownership interest of the Voting Common Stock and Non-Voting Common
Stock of Holdco owned by the Shareholders immediately after the Closing.

         2. Establishment of Escrow Account.

         (a) Each Shareholder and RSI are contemporaneously with the execution
and delivery of this Agreement by each of the parties delivering the number of
Indemnification Shares (together with executed stock powers in respect
thereof) and/or the amount of Cash Collateral set forth opposite its name on
Schedule A hereto to the Escrow Agent for deposit into an escrow account (the
"Escrow Account") by the Escrow Agent and the Escrow Agent hereby acknowledges
receipt of the same. All Indemnification Shares and Cash Collateral in the
Escrow Account shall be available for distribution by the Escrow Agent,
subject to the provisions of this Agreement, to reimburse any RSI Indemnitee
or any Shareholder Indemnitee, as the case may be, in respect of any Losses
that are indemnifiable pursuant to this Agreement. Notwithstanding the escrow
of the Indemnification Shares, dividends and other distributions declared and
paid on Indemnification Shares held in escrow shall continue to be paid by
Holdco to the respective Shareholders and RSI, all voting rights with respect
to such shares shall inure to the benefit of and be enjoyed by the respective
Shareholders and RSI, and such Shareholders and RSI shall be the legal and
beneficial owners of such shares for all purposes subject to the terms of this
Agreement; provided, that the parties agree that (i) Holdco shall deposit with
the Escrow Agent any securities issued to the Shareholders or RSI in respect
of any Indemnification Shares held in escrow as a result of a stock split or
combination of shares of Voting Common Stock or Non-Voting Common Stock, as
the case may be, payment of a stock dividend or other stock distribution made
without receipt of consideration therefor in or on the Voting Common Stock or
Non-Voting Common Stock, as the case may be, or change of shares of the Voting
Common Stock or Non-Voting Common Stock, as the case may be, into any other
securities pursuant to or as part of a business combination or otherwise, in
each case together with specific written instructions to the Escrow Agent on
whose behalf the same should be credited, and (ii) such securities shall be
held by the Escrow Agent as, and shall be included within the definition of,
Indemnification Shares, as the case may be; provided, however, notwithstanding
the foregoing proviso, to the extent that any such distribution of securities
is properly taxable as a dividend for federal income tax purposes, Holdco
shall instruct the Escrow Agent to distribute such securities to the
respective Shareholders and RSI. The Escrow Agent agrees that it shall invest
any Cash Collateral in the HQ/VANTAS Indemnification Escrow Agreement account
(F/B/O 795012). The Escrow Agent shall not have any liability for any loss
sustained as a result of any investment made pursuant to the preceding
sentence or as a result of any liquidation of any such investment prior to its
maturity. Any interest earned on any Cash Collateral shall not be used to
increase the amount of the Escrow Account of any party hereto and shall be
paid to the applicable depositor of the Escrow Account from time to time upon
written demand by such depositor, upon specific written instructions to the
Escrow Agent with respect thereto. The Escrow Agent shall have no obligation
to invest or reinvest the Cash Collateral if deposited with the Escrow Agent
after 11:00 a.m. (E.S.T.) on such day of deposit. Instructions received after
11:00 a.m.(E.S.T.) will be treated as if received on the following business
day. The Escrow Agent shall have the power to sell or liquidate the foregoing
investments whenever the Escrow Agent shall be required to release the Escrow
Property pursuant to the terms hereof. Requests (or instructions) received
after 11:00 a.m. (E.S.T.) by the Escrow Agent to liquidate the Escrow Property
will be treated as if received on the following business day. The Escrow Agent
shall have no responsibility for any investment losses resulting from the
investment, reinvestment or liquidation of the Escrow Property. Any interest
or other income received on such investment and reinvestment of the Escrow
Property shall become part of the Escrow Property. If a selection is not made,
the Escrow Property shall remain uninvested with no liability for interest
therein. It is agreed and understood that the Escrow Agent may earn fees
associated with the investments outlined above.

         (b) At any time and from time to time after the Closing Date, any or
all of the Indemnification Shares deposited by any Shareholder or RSI in the
Escrow Account on the Closing Date may be withdrawn upon at least five (5)
business days' prior notice by RSI or the Shareholders, as applicable, to the
other (with a copy to the Escrow Agent), but if and only if simultaneously
with such withdrawal the withdrawing party delivers immediately available
funds to the Escrow Agent for deposit into the Escrow Account in an amount
equal to the aggregate Market Value of the number of Indemnification Shares so
withdrawn, which determination shall be set forth in a written notice to the
Escrow Agent signed by RSI or the applicable Shareholder and upon which the
Escrow Agent shall be entitled to conclusively rely.

         3. Tax Indemnification.

         (a) Tax Indemnification by Shareholders. Subject to the limitations
of indemnification pursuant to Section 5, the Shareholders severally, based on
each such Shareholder's Ownership Percentage, shall indemnify the RSI
Indemnitees against and hold them harmless from (i) any Loss incurred by
reason of any liability of HQGW and its Subsidiaries for Taxes for any
Pre-Closing Tax Period, (ii) any Loss incurred by reason of any liability for
Taxes of the Shareholders or any other person (other than HQGW) which is or
has ever been affiliated with HQGW and its Subsidiaries, and (iii) any Loss
incurred by reason of any liability for reasonable legal, accounting,
appraisal, consulting or similar fees and expenses for any item attributable
to any item in clause (i) or (ii) above.

         (b) Tax Indemnification by RSI. Subject to the limitations of
indemnification pursuant to Section 5, RSI shall indemnify the Shareholder
Indemnitees against and hold them harmless from (i) any Loss incurred by
reason of any liability of VANTAS and its Subsidiaries for Taxes for any
Pre-Closing Tax Period, (ii) any Loss incurred by reason of any liability for
Taxes of RSI or any other person (other than VANTAS and its Subsidiaries)
which has ever been affiliated with RSI and its Subsidiaries, and (iii) any
Loss incurred by reason of any liability for reasonable legal, accounting,
appraisal, consulting or similar fees and expenses for any item attributable
to any item in clause (i) or (ii) above.

         (c) Straddle Period. For purposes of subparagraphs (a) and (b) above,
in the case of any taxable period that includes (but does not end on) the
Closing Date (a "Straddle Period"):

     (i) real, personal and intangible property Taxes ("Property Taxes") of
     HQGW and its Subsidiaries and VANTAS and its Subsidiaries, respectively,
     for any Pre-Closing Tax Period (other than Taxes imposed in connection
     with the Merger or otherwise in connection with this Agreement or the
     transactions contemplated hereby) shall be equal to the amount of such
     Property Taxes of HQGW and its Subsidiaries and VANTAS and its
     Subsidiaries, respectively, for the entire Straddle Period (limited,
     however, to those Taxes attributable to the assets of HQGW and its
     Subsidiaries and VANTAS and its Subsidiaries, respectively, owned prior
     to the Closing Date) multiplied by a fraction, the numerator of which is
     the number of days during the Straddle Period that are in the Pre-Closing
     Tax Period and the denominator of which is the number of days in the
     Straddle Period; and

     (ii) the Taxes of HQGW and its Subsidiaries and VANTAS and its
     Subsidiaries, respectively (other than Property Taxes and other than
     Taxes referred to in Section 6(e) of this Agreement, which Taxes will be
     governed by such Section), for the Pre-Closing Tax Period shall be
     computed as if such taxable period ended as of the close of business on
     the Closing Date. The indemnity obligations of the Shareholders in
     respect of Taxes for a Straddle Period shall, subject to the limitations
     on indemnification pursuant to Section 5, equal the excess of (x) such
     Taxes for the Pre-Closing Tax Period over (y) the sum of (i) the amount
     of such Taxes for the Pre-Closing Tax Period paid by the Shareholders or
     any of their affiliates (other than HQGW) at any time and (ii) the amount
     of such Taxes paid by HQGW and its Subsidiaries on or prior to the
     Closing Date (which includes any payments of estimated taxes or similar
     amounts made by HQGW and its Subsidiaries on or prior to the Closing Date
     and any amounts of Taxes for which a reserve has been reflected on the
     Company Balance Sheet, even though the amount reflected for such reserve
     has not yet been paid, based on each such Shareholder's Ownership
     Percentage, to the applicable taxing authority). The Shareholders
     severally, based on each such Shareholder's Ownership Percentage, shall
     initially pay such excess to RSI upon the later of (A) five days prior to
     the date on which the Tax Return (including any Tax Return with respect
     to estimated Taxes) with respect to the liability for such Taxes is
     required to be filed (and if no such Tax Return is required to be filed,
     five days prior to the date satisfaction of the Tax liability is required
     by the relevant taxing authority) or (B) ten days after the receipt from
     RSI of notice that such amount is required to be paid pursuant hereto.
     The payments to be made pursuant to this paragraph by the Shareholders
     with respect to a Straddle Period shall be appropriately adjusted to
     reflect any final determination (which shall include the execution of
     Form 870-AD or any successor form) with respect to Taxes for the Straddle
     Period.

     RSI shall cause Holdco to within 10 days of the receipt thereof, pay to
     each of the Shareholders an amount equal to such Shareholder's Ownership
     Percentage, an amount equal to 100% of any refund of any Taxes of HQGW
     with respect to any Pre-Closing Tax Period received by HQGW, any of its
     Subsidiaries or Holdco at any time after the Closing Date (including for
     this purpose any credit against Taxes owed for any taxable period ending
     after the Closing Date, if such credit is attributable to a taxable
     period ending on or prior to the Closing Date, any refund of estimated
     tax payments made on or prior to the Closing Date or any application of
     such payments to either a taxable period commencing after the Closing
     Date or a portion of a Straddle Period that is subsequent to the Closing
     Date, and any interest received by HQGW, any of its Subsidiaries or
     Holdco with respect to any of the foregoing from the applicable taxing
     authority) unless (and only to the extent) that the amount of such refund
     for Taxes was reflected as an asset on the Company Balance Sheet.

         (d) RSI shall indemnify each of the Shareholder Indemnitees for any
Extra Tax Costs incurred by such Shareholder Indemnitees in connection with
the HQ Merger, the Second Step Merger, and/or the sale of shares by such
Shareholder Indemnitee pursuant to the Stock Purchase Agreement. For purposes
of this Section 3(d), "Extra -Tax Costs" shall be defined as (i) all interest,
penalties, and similar charges actually payable by a Shareholder Indemnitee to
any applicable taxing authority with respect to Extra Taxes attributable to
the period ending on the earlier of January 1, 2003 or the date all of such
Shareholder Indemnitee's shares of stock in HQGW not sold pursuant to the
Stock Purchase Agreement actually are sold (in either case, the "Deemed Sale
Date"), plus (ii) in the event that such interest, penalties, and similar
charges have not been paid on or prior to the Deemed Sale Date, all interest,
penalties and similar charges accruing with respect to such interest,
penalties and similar charges until the earlier of the actual date on which
the interest, penalties, and similar charges described in clause (i) are paid
or thirty (30) days following a "final determination" within the meaning of
Section 1313 of the Code that the Shareholder Indemnitee is required to pay
Extra Taxes, plus (iii) if and to the extent that a Shareholder Indemnitee is
required to pay any Extra Taxes prior to the applicable Deemed Sale Date,
interest on such Extra Taxes from the date the Shareholder Indemnitee makes
such payment of Extra Taxes to and including the applicable Deemed Sale Date,
computed at a rate equal to the rate applicable under Section 6621 of the Code
with respect to underpayments of federal income tax, plus (iv) an amount equal
to all federal, state and local income taxes (net of the federal income tax
benefit, if any, resulting to the Shareholder Indemnitee from any deduction
allowed to such Shareholder Indemnitee for any such state and local income
taxes) required to be paid by such Shareholder Indemnitee with respect to the
payment received pursuant to this Section 3(d). For purposes of this Section
3(d), "Extra Taxes" shall be defined as the excess of (i) the amount of all
Taxes (other than stock transfer Taxes) payable (determined as described
below) by a Shareholder Indemnitee by reason of the Second Step Merger and/or
the sale of shares of stock by the Shareholder Indemnitee pursuant to the
Stock Purchase Agreement over (ii) the amount of Taxes (other than stock
transfer Taxes) that would have been payable by such Shareholder Indemnitee by
such reason if (a) the exchange into Holdco Preferred Stock described on the
Financing Exhibits were not to have taken place and (b) the surviving
corporation in the Second Step Merger were the HQ Surviving Corporation rather
than M Sub. The amount of Extra Taxes and the Extra Tax Costs for purposes of
this Section 3(d) shall be determined and certified to by an independent
accountant selected by the applicable Shareholder Indemnitee, as may be
reasonably acceptable to RSI. Extra Taxes and Extra Tax Costs shall be
considered payable for the purposes hereof on the earlier of (i) the date on
which the Shareholder Indemnitee notifies RSI in writing of any assertion by
the Internal Revenue Service, formal or informal, of a position to the effect
that such amounts might be required to be paid, or (ii) the date on which the
Shareholder Indemnitee delivers to RSI a copy of an opinion of the tax advisor
to such Indemnitee providing that it is more likely than not that the
Shareholder Indemnitee is liable for such Extra Taxes and Extra Tax Costs (in
either case, a "Potential Adverse Determination Date"), unless in either event
RSI notifies such Shareholder Indemnitee in writing within ten days of the
Potential Adverse Determination Date that, pursuant to the provisions of this
section, it will indemnify the Shareholder Indemnitee for (a) all interest,
penalties, and similar charges accruing with respect to such Extra Taxes and
Extra Tax Costs from the Potential Adverse Determination Date until the
earlier of thirty (30) days following a "final determination" within the
meaning of Section 1313 of the Code that the Shareholder is required to pay
Extra Taxes and/or Extra Tax Costs or ten (10) days following written notice
from RSI to such Shareholder Indemnitee to pay all such Extra Taxes and Extra
Tax Costs as to which a Potential Adverse Determination Date has occurred (in
either case, the "Delayed Payment Date"), and (b) all legal and accounting
costs and expenses incurred in connection with any challenge or assertion by
the Internal Revenue Service (it being understood that the Shareholder
Indemnitee shall not in any event have any duty to contest any such challenge
except, and only to the extent that, RSI bears any and all costs associated
therewith), in which event Extra Taxes and Extra Tax Costs shall be considered
payable for purposes hereof on the Delayed Payment Date. The obligations of
RSI pursuant to this Section 3(d) are in addition to, and not in lieu of, the
obligations of HQ Surviving Corporation and HQGW under Section 7(j) of the
Merger Agreement. The provisions of Section 5(a), 5(b), 5(c) and 5(d) shall
not apply with respect to this Section 3(d).

         4. Other Indemnification.

         (a) Other Indemnification by the Shareholders. (W) The Shareholders
severally, based on each such Shareholder's respective Ownership Percentage,
shall indemnify the RSI Indemnitees against and hold them harmless from any
Company Level Loss (other than any relating to Taxes, for which
indemnification provisions are set forth in Section 3(a), and any relating to
the Shareholder Litigation, for which indemnification provisions are set forth
in Section 4)(a)(X)) arising from, relating to or otherwise in respect of any
inaccuracy of any representation or warranty of HQGW contained in the Merger
Agreement (other than the representations set forth in Sections 4(A)(b) and
4(A)(ee) of the Merger Agreement, for which indemnification provisions are set
forth in Section 4(a)(X) below) or in any certificate delivered pursuant
thereto or in connection therewith at the time made or deemed made (regardless
of whether or not VANTAS or RSI was aware of such failure on or prior to the
Effective Time).

         (X) All Shareholders severally, based on each such Shareholder's
respective Ownership Percentage, shall indemnify the RSI Indemnitees against
and hold them harmless from RSI's Indemnification Share of any Company Level
Loss and from any claims, causes of action or other proceedings under which
any RSI Indemnitee may be subject to liability arising from, relating to, or
otherwise in respect of any inaccuracy of the representations set forth in
Section 4(A)(b) and 4(A)(ee) of the Merger Agreement. CarrAmerica shall
indemnify the RSI Indemnitees against and hold them harmless from RSI's
Indemnification Share of any Company Level Loss and from any claims, causes of
action or other proceedings under which any RSI Indemnitee may be subject to
liability arising from, relating to, or otherwise in respect of the
Shareholder Litigation.

         (Y) Each Shareholder severally with respect to any Direct Loss
attributable to itself only shall indemnify the RSI Indemnitees against and
hold them harmless from any such Direct Loss directly or indirectly suffered
or incurred by any such RSI Indemnitee.

         (Z) CarrAmerica shall indemnify the RSI Indemnitees against and hold
them harmless from any Company Level Loss directly or indirectly suffered or
incurred by any such RSI Indemnitee arising from, relating to or otherwise in
respect of any inaccuracy of the representations and warranties of HQ UK and
HQ LuxCo contained in the UK Agreement or in any certificate delivered
pursuant thereto or in connection therewith at the time made or deemed made
(regardless of whether or not VANTAS or RSI was aware of such failure on or
prior to the Closing Date).

         (b) Other Indemnification by RSI. (Y) RSI shall indemnify the
Shareholder Indemnitees against and hold them harmless from any Company Level
Loss or Direct Loss (other than any relating to Taxes, for which
indemnification provisions are set forth in Section 3(a)) directly or
indirectly suffered or incurred by them arising from, relating to or otherwise
in respect of any inaccuracy of any representation or warranty of RSI or
VANTAS contained in the Merger Agreement (other than the representations set
forth in Section 5(A)(b) of the Merger Agreement, for which indemnification
provisions are set forth in Section 5(b)(Z) below), the UK Agreement or the
Stock Purchase Agreement or in any certificate delivered pursuant to either of
the foregoing or in connection therewith at the time made or deemed made
(regardless of whether or not any Shareholders were aware of such failure on
or prior to the Effective Time).

         (Z) RSI shall indemnify the Shareholder Indemnitees against and hold
them harmless from the Shareholders' Indemnification Share of any Company
Level Loss and from any claims, causes of actions or other proceedings under
which any Shareholder Indemnitee may be subject to liability (i) arising from,
relating to, or otherwise in respect of the matter disclosed in clause (ii) of
Schedules 5(r) or 5(u) to the Merger Agreement or any inaccuracy of the
representations set forth in Section 5(A)(b) of the Merger Agreement or (ii)
threatened or initiated by or on behalf of any holder of VANTAS Common Stock
or Preferred Stock that relate to the execution and delivery of the Merger
Agreement or to any of the transactions contemplated therein, or (iii) arising
from, relating to, or otherwise in respect of the offer or sale of equity
securities of HQGW or Holdco to any third party in connection with the
transactions contemplated by the Merger Agreement, the Stock Purchase
Agreement or the UK Agreement; provided that, RSI shall not be required to
make any payment under this clause (Z) to the extent of any amounts that the
Shareholders are required to pay under Section 4(a) hereof with respect to the
same facts and circumstances that give rise to a claim under this clause (Z).

         (ZZ) Except with respect to any matter referred to in clause (ZZZ)
below, in the event Holdco is required to pay any amounts under (i) Section
11(a) of that certain Exchange Agreement dated as of May 31, 2000 by and
between Holdco and RSI (the "Exchange Agreement") or otherwise as a result of
a breach of the representations and warranties of Holdco contained in Section
2 of the Exchange Agreement, (ii) Section 11(a) of any of those certain
Purchase Agreements, each dated as of May 31, 2000, by and between, in each
case, RSI, on the one hand, and the Investor specified in each such Agreement,
on the other hand, or otherwise as a result of a breach of representations and
warranties of RSI contained in Section 2 of the Purchase Agreements, or (iii)
Section 11(a) of the Purchase Agreement dated as of May 31, 2000 by and among
Holdco, RSI and Equity Office Properties Trust or otherwise as a result of a
breach of the representations and warranties of Holdco contained in Sections 2
and 3 of such Purchase Agreement (all of the foregoing obligations being
hereinafter referred to as "Holdco Indemnification Obligations"), RSI shall
indemnify the Shareholder Indemnitees and hold them harmless in an amount
equal to the product of any amounts paid by Holdco under the Holdco
Indemnification Obligations and the Shareholders' Indemnification Share;
provided that, RSI shall not be required to make any payment under this clause
(Z) to the extent of any amounts that the Shareholders are required to pay
under Section 4(a) hereof with respect to the same facts and circumstances
that give rise to a claim under this clause (ZZ).

         (ZZZ) In the event Holdco pays any Holdco Indemnification Obligations
under Section 12(a) of any Purchase Agreement arising from, relating to or
otherwise in respect of any act or failure to act of RSI or any breach of any
of RSI's representations under Section 3 of any such Purchase Agreement, then
in lieu of the indemnification provisions of clause (ZZ) above, RSI shall
indemnify and hold Holdco harmless from the entire amount of such payment.

         5. Limitations on Indemnification. Any claim brought under Section 3
or 4 is subject in each case to the following limitations and restrictions:

         (a) Damages Net of Insurance, etc. The amount of any Company Level
Loss for which indemnification is provided under this Agreement shall be net
of any amounts actually recovered by the Second Step Surviving Corporation
under insurance policies with respect to such Company Level Loss (which the
Second Step Surviving Corporation shall use commercially reasonable efforts to
recover under such policies) and the amount of any Loss shall be (i) increased
to take account of any net Tax cost incurred by the indemnified party arising
from the receipt of indemnity payments hereunder (grossed up for such
increase), and (ii) reduced to take account of any net Tax benefit realized by
the Second Step Surviving Corporation arising from the incurrence or payment
of any such Loss. In computing the amount of any such Tax cost or Tax benefit,
the indemnified party or the Second Step Surviving Corporation, as the case
may be, shall be deemed to recognize all other items of income, gain, loss,
deduction or credit before recognizing any item arising from the receipt of
any indemnity payment hereunder or the incurrence or payment of any
indemnified Loss. Any indemnity payment under this Agreement shall be treated
as an adjustment to the Merger Consideration for tax purposes, unless a final
determination (which shall include the execution of a Form 870-AD or successor
form) with respect to the indemnified party causes any such payment not to be
treated as an adjustment to the Merger Consideration for United States Federal
income tax purposes.

          (b) Minimum Claim Amounts.

     (i) Claims made by the RSI Indemnitees with respect to Losses for which
     indemnification is provided pursuant to Section 3(a), 3(c), 4(a)(W) or
     4(a)(Z) shall be required to be paid if and only if the aggregate amount
     of all such Losses, but for this Section 5(b)(i), exceed on a cumulative
     basis $6,219,000 (the "Holder Basket"), in which event the entire amount
     of such Losses shall be recoverable; it being understood that claims with
     respect to Losses or damages arising from claims, causes of action or
     other proceedings for which indemnification is provided pursuant to
     Section 4(a)(X) or 4(a)(Y) shall not be subject to the foregoing
     limitation.

     (ii) Claims made by the Shareholder Indemnitees with respect to Losses
     for which indemnification is provided pursuant to Section 3(b), 3(c) or
     4(b)(Y) (with respect to claims for Company Level Losses) shall be
     required to be paid if and only if the aggregate amount of all such
     Losses, but for this Section 5(b)(ii), exceed on a cumulative basis
     $25,510,000 (the "RSI Basket"), in which event the entire amount of such
     Losses shall be recoverable; it being understood that claims with respect
     to Direct Losses for which indemnification is provided pursuant to
     Section 4(b)(Y) or Losses, claims, causes of action or other proceedings
     pursuant to Section 4(b)(Z), 4(b)(ZZ) or 4(b)(ZZZ)) shall not be subject
     to the foregoing limitation.

     (iii) In determining whether the Shareholder Indemnitees or RSI
     Indemnitees, as the case may be, is or are entitled to indemnification
     under Section 4 (other than under Section 4(b)(ZZ) or 4(b)(ZZZ)), the
     representations and warranties of the Shareholders and HQGW, or RSI and
     VANTAS, as applicable, shall not be deemed qualified by any references to
     material or materiality contained therein and any inaccuracies therein
     shall be determined without regard to whether such inaccuracy constitutes
     a Company Material Adverse Effect or a VANTAS Material Adverse Effect;
     provided, however, in no event will any Shareholder Indemnitees or RSI
     Indemnitees, as the case may be, be entitled (A) to recovery for any Loss
     relating to or arising out of an inaccuracy of any representation or
     warranty of VANTAS, RSI, HQGW or any Shareholder, as the case may be,
     even if such Shareholder Indemnitee or RSI Indemnitee, as applicable,
     would be entitled to indemnification pursuant to Section 5(b)(i) or
     5(b)(ii), but for this Section 5(b)(iii), unless the Loss related thereto
     exceeds $50,000, (B) to aggregate items referred to in clause (A) of this
     Section 5(b)(iii) for the purpose of exceeding the limitation set forth
     in clause (A) of this Section 5(b)(iii), or (C) to otherwise submit the
     items referred to in clause (A) of this Section 5(b)(iii) as Losses
     reimbursable pursuant to this Section 5.

          (c) Percentage Recovery.

     (i) If cumulative Company Level Losses under Sections 3(a), 3(c), 4(a)(W)
     and 4(a)(Z) exceed the Holder Basket, the indemnification amount to be
     paid to the applicable RSI Indemnitees shall be equal to RSI's
     Indemnification Share of the entire amount of Company Level Losses. In
     all events (other than as expressly limited to RSI's Indemnification
     Share in Section 4(a)(X)), 100% of the entire amount of Losses under
     Sections (4)(a)(X) and 4(a)(Y) shall be paid to the applicable RSI
     Indemnitees.

     (ii) If cumulative Company Level Losses under Sections 3(b), 3(c) and
     4(b)(Y) exceed the RSI Basket, the indemnification amount to be paid to
     the applicable Shareholder Indemnitees shall be equal to the
     Shareholders' Indemnification Share of the entire amount of Company Level
     Losses. The indemnification amount to be paid in respect of Company Level
     Losses under Section 4(b)(Z) is limited to the Shareholders'
     Indemnification Share thereof and the indemnification amount to be paid
     under Section 4(b)(ZZ) or 4(b)(ZZZ) shall not be limited in any respect.
     In all events, 100% of the entire amount of Losses that constitute Direct
     Losses of any Shareholder Indemnitee shall be paid to the applicable
     Shareholder Indemnitees.

          (d) Other Limitations on Recovery.

     (i) Except as otherwise provided in the immediately following sentence,
     claims made by any RSI Indemnitee against any Shareholder pursuant to
     this Agreement shall be made solely against the Shareholder
     Indemnification Shares or Cash Collateral deposited into the Escrow
     Account by such Shareholder. Claims made by any RSI Indemnitee against
     any Shareholder with respect to Direct Losses and under Section 4(a)(X)
     shall be made first against the Shareholder Indemnification Shares or
     Cash Collateral deposited into the Escrow Account by such Shareholder in
     accordance with Section 7, but only after any and all amounts in respect
     of Valid Claims with respect to the Company Level Losses shall have first
     been disbursed in accordance with Section 7; provided, that if the amount
     available in the Escrow Account attributable to such Shareholder (valuing
     any Indemnification Shares in accordance with Section 7) is less than the
     full amount of the claim, or if the Escrow Account has been terminated, a
     claim may be made directly against such Shareholder, which shall be
     personally liable for the remaining amount of the claim. Except as set
     forth in the preceding sentence, no Shareholder shall have any personal
     liability to any RSI Indemnitee in any respect pursuant to this Agreement
     or otherwise.

     (ii) Except as otherwise provided in the immediately following sentence,
     claims made by any Shareholder Indemnitee against RSI pursuant to this
     Agreement shall be made solely against the RSI Indemnification Shares or
     Cash Collateral deposited into the Escrow Account by RSI. Claims made by
     any Shareholder Indemnitee against RSI with respect to Direct Losses and
     under Section 4(b)(ZZ) and 4(b)(ZZZ) shall be made first against the RSI
     Indemnification Shares or cash collateral deposited into the Escrow
     Account by RSI in accordance with Section 7, but only after any and all
     amounts in respect of Valid Claims with respect to Company Level Losses
     shall have first been disbursed in accordance with Section 7; provided
     that if the amount available in the Escrow Account attributable to RSI
     (valuing any Indemnification Shares in accordance with Section 7) is less
     than the full amount of the claim, or if the Escrow Account has been
     terminated, a claim may be made directly against RSI, which shall be
     personally liable for the remaining amount of the claim. Except as set
     forth in the immediately preceding sentence, RSI shall not have any
     personal liability to any Shareholder Indemnitee in any respect pursuant
     to this Agreement or otherwise.

         (e) Termination of Indemnities. Notwithstanding anything in this
Agreement to the contrary, the obligations of the Shareholders and RSI to
provide indemnification under this Agreement shall terminate and be
extinguished forever at the close of business on June 30, 2001, except for (i)
claims under Section 3 hereof and claims under Section 4 hereof that relate to
the representations concerning authorization and benefit plan matters set
forth in Sections 4(b), 4(r), 5(b) and 5(k) of the Merger Agreement, Section
4(b)(ZZ) and 4(b)(ZZZ) hereof, and Sections 2.2 and 2.16 of the UK Agreement
and the representations set forth in the Stock Purchase Agreement, which
claims may be made until the expiration of the applicable statute of
limitations; provided, however, that the obligations of the Shareholders
and/or RSI to provide indemnification under this Agreement shall not terminate
at such time with respect to any claim that has been properly asserted by
delivering a notice of such claim to the indemnifying party in accordance with
the terms hereof and such claim has not been paid or otherwise resolved as of
the date on which such indemnity obligation would otherwise terminate pursuant
to this Section 5(e). If a claim has been properly asserted and not paid or
resolved as described above, the indemnity obligations of the Shareholders or
RSI, as applicable, shall continue beyond June 30, 2001, but (i) the indemnity
obligation shall continue only with respect to the claim in question, and only
until such claim is paid or otherwise finally resolved, and (ii) any amounts
in the Escrow Account not reasonably determined by the indemnified party to be
needed to cover the disputed claim shall be released from the Escrow Account
to the Shareholders or RSI, as applicable, upon written instructions to the
Escrow Agent in connection therewith by the indemnified party upon which the
Escrow Agent shall be entitled to conclusively rely.

         6. Other Tax Matters.

         (a) For any taxable period of HQGW that includes (but does not end
on) the Closing Date, RSI shall, or shall cause the Second Step Surviving
Corporation to, timely prepare and file with the appropriate taxing
authorities all Tax Returns required to be filed; provided, however, that no
such Tax Return shall be filed without the written consent of the
Representative, which consent shall not be unreasonably withheld. The
Shareholders shall reimburse RSI (in accordance with the procedures set forth
in Sections 3(a) and 3(c)) for any amount owed by the Shareholders to RSI
pursuant to such Sections (subject to the limitation set forth in Section 5)
with respect to the taxable periods covered by such Tax Returns. For any
taxable period of HQGW that ends on or before the Closing Date, HQGW shall
timely prepare and file with the appropriate taxing authorities all Tax
Returns required to be filed and shall pay all Taxes due with respect to such
Tax Returns; provided, however, that no such Tax Return shall be filed without
the prior written consent of RSI and the Representative, which consent shall
not be unreasonably withheld. RSI and the Shareholders agree to cause HQGW to
file all Tax Returns for the taxable period including the Closing Date on the
basis that the relevant taxable period ended as of the close of business on
the Closing Date, unless the relevant taxing authority will not accept a Tax
Return filed on that basis.

         (b) RSI shall cause HQGW to, and the Shareholders, RSI and the Second
Step Surviving Corporation shall, reasonably cooperate, and cause their
respective Affiliates, officers, employees, agents, auditors and other
representatives reasonably to cooperate, in preparing and filing all Tax
Returns and in resolving all disputes and audits with respect to all taxable
periods relating to Taxes, including by maintaining and making available to
each other all records necessary in connection with Taxes, provided, however,
in no event shall RSI be required to provide any Tax Return to the
Shareholders and the Shareholders shall not be required to provide to RSI any
Tax Return not actually in their possession. RSI recognizes that the
Shareholders will need access, from time to time, after the Closing Date, to
certain accounting and Tax records and information held by the Second Step
Surviving Corporation to the extent such records and information pertain to
events occurring prior to the Closing Date acting as representative for the
Shareholders; therefore, RSI agrees after the Closing to cause the Second Step
Surviving Corporation to allow the Representative, and its agents and other
representatives, at times and dates mutually acceptable to the parties,
reasonable access to such records from time to time, during normal business
hours and at the Shareholders' expense.

         (c) An amount equal to 100% of the amount or economic benefit of any
refunds, credits or offsets of Taxes of HQGW for any Pre-Closing Tax Period
(including that portion of a Straddle Period ending on the Closing Date) shall
be for the account of the Shareholders. Notwithstanding the foregoing, (i) any
such refunds, credits or offsets of Taxes shall be for the account of the
Second Step Surviving Corporation and RSI to the extent such refunds, credits
or offsets of Taxes are attributable (determined on a marginal basis) to the
carryback from a taxable period beginning after the Closing Date (or the
portion of a Straddle Period that begins on the day after the Closing Date) of
items of loss, deduction or credit, or other tax items, of the Second Step
Surviving Corporation (or any of its Affiliates, including RSI) and (ii) to
the extent RSI or the Second Step Surviving Corporation, depending on which
entity made such payment, pays after the Closing Date any amount with respect
to Taxes for any such Pre-Closing Tax Period, refunds of such Taxes
(determined on a first-in, first-out basis) shall be for the account of RSI or
the Second Step Surviving Corporation, depending on which entity made such
payment. The amount or economic benefit of any refunds, credits or offsets of
Taxes of HQGW or the Second Step Surviving Corporation for any taxable period
beginning after the Closing Date shall be for the account of the Second Step
Surviving Corporation and RSI. The amount or economic benefit of any refunds,
credits or offsets of Taxes of HQGW or the Second Step Surviving Corporation
for any Straddle Period shall be equitably apportioned between the
Shareholders, on the one hand, and RSI and the Second Step Surviving
Corporation, on the other hand. Each party shall forward, and shall cause its
Affiliates to forward, to the party entitled pursuant to this Section 6(c) to
receive the amount or economic benefit of a refund, credit or offset to Tax
the amount of such refund, or the economic benefit of such credit or offset to
Tax, within 30 days after such refund is received or after such credit or
offset is allowed or applied against other Tax liability, as the case may be;
provided, however, that any such amounts payable pursuant to this Section 6(c)
shall be net of any Tax cost or Tax benefit to the party making payment
pursuant to this Section 6(c) and its Affiliates attributable to the receipt
of such refund, credit or offset to Tax and/or the payment of such amounts
pursuant to this Section 6(c). RSI and the Shareholders shall treat any
amounts payable pursuant to this Section 6(c) as an adjustment to the Merger
Consideration unless a final determination (which shall include the execution
of a Form 870-AD or successor form) causes any such payment not to be treated
as an adjustment to the Merger Consideration for United States Federal income
Tax purposes.

         (d) The Shareholders shall supply any necessary information to enable
the Second Step Surviving Corporation to file any amended consolidated,
combined or unitary Tax Returns for taxable years ending on or prior to the
Closing Date which are required as a result of examination adjustments made by
the IRS or by the applicable state, municipal, provincial, local or foreign
taxing authorities for such taxable years as finally determined; provided,
however, that no such Tax Return shall be filed without the prior written
consent of the Representative and RSI, which consent shall not be unreasonably
withheld.

         For those jurisdictions in which separate Tax Returns are filed by
HQGW, any required amended returns resulting from such examination
adjustments, as finally determined, shall be prepared by the Second Step
Surviving Corporation or RSI and furnished to the Representative, for approval
at least 30 days prior to the due date for filing such Tax Returns.

         (e) All transfer, documentary, sales, use, registration and other
such Taxes (including all applicable real estate transfer or gains Taxes and
stock transfer Taxes) and related fees (including any penalties, interest and
additions to Tax) incurred in connection with the Merger or otherwise in
connection with this Agreement and the transactions contemplated hereby that
are attributable to the assets of HQGW and its Subsidiaries shall be paid by
the Shareholders and that are attributable to the assets of VANTAS and its
Subsidiaries shall be paid by RSI. The Representative and RSI shall cooperate
in timely preparing and filing all Tax Returns as may be required to comply
with the provisions of such Tax laws.

         7. Indemnification Procedures.

         (a) Notice of a Claim. In order for a party to be entitled to
indemnification pursuant to this Agreement, the indemnified party shall notify
the indemnifying party in writing of any claim that it reasonably believes is
likely to result in a Loss within ten (10) days of the date such party
receives written notice or otherwise becomes aware of the claim, describing in
reasonable detail the claim (including whether such claim is for Direct Losses
or Company Level Losses) and the estimated amount of the claim; provided,
however, that the failure of an indemnified party so to notify the
indemnifying party of the claim shall not relieve the indemnifying party of
its obligations under this Agreement except to the extent the indemnifying
party shall have been actually prejudiced as a result of such failure (except
that the indemnifying party shall not be liable for any expenses incurred
during the period in which the indemnified party failed to give notice). The
indemnified party shall deliver to the indemnifying party copies of all
notices and documents (including court papers) received by the indemnified
party relating the claim along with the notice referred to above. If the
indemnifying party does not object in writing to the availability of the
indemnity under this Agreement within twenty (20) days after receiving such
notice, then the claim set forth in the notice by such party shall be
considered a valid claim under this Agreement (a "Valid Claim"), and such
Valid Claim (to the extent payable after giving effect to the limitations set
forth in Section 5(b)) shall be paid in accordance with Section 7 hereof. If
any indemnifying party objects in writing as to the availability of the
indemnity with respect to such claim within such twenty (20) day period, then
the indemnifying party and the indemnified party shall proceed in good faith
to negotiate a resolution of such dispute and, if not resolved through
negotiations, such dispute shall be resolved by litigation in an appropriate
court of competent jurisdiction.

         (b) Defense of Third Party Claims. If any Valid Claim arises out of
or involves a claim or demand made by any person against the Second Step
Surviving Corporation or the indemnified party (a "Third Party Claim"), then
the indemnifying party shall be entitled to participate in the defense thereof
and, if it so chooses and acknowledges its obligation to indemnify the
indemnified party therefor, to assume the defense thereof with counsel
selected by the indemnifying party; provided, that such counsel is not
reasonably objected to by the indemnified party; and provided further, that if
either (i) any indemnified party reasonably concludes that there may be one or
more legal defenses available to it that are different from or in addition to
(and are inconsistent with) those available to the indemnifying party, or that
a conflict or potential conflict exists between any indemnified party, on the
one hand, and any indemnifying party, on the other hand (a "Conflicting
Matter"), or (ii) the Third Party Claim seeks an order, injunction or other
equitable relief or relief for other than money damages which the indemnified
party reasonably concludes cannot be separated from any related claim for
money damages (a "Specific Performance Matter"), the indemnifying party will
not have the right to direct the defense of such action on behalf of such
indemnified party with respect to such Conflicting Matter or Specific
Performance Matter, and the indemnified party shall direct the defense of the
portion of such claim that constitutes a Conflicting Matter or Specific
Performance Matter through counsel (including a local counsel, if necessary)
of its choosing, at the expense of the indemnified party. Should the
indemnifying party so elect to assume the defense of a Third Party Claim, the
indemnifying party shall not be liable to the indemnified party for legal
expenses subsequently incurred by the indemnified party in connection with the
defense thereof. If the indemnifying party assumes such defense, the
indemnified party shall have the right to participate in the defense thereof
and to employ counsel, at its own expense, separate from the counsel employed
by the indemnifying party, it being understood that the indemnifying party
shall control such defense. Notwithstanding the foregoing, the indemnifying
party shall be liable for the fees and expenses of counsel employed by the
indemnified party for any period during which the indemnifying party has
failed to assume the defense thereof (other than during the period prior to
the time the indemnified party shall have given notice of the Third Party
Claim as provided above).

         If the indemnifying party so elects to assume the defense of any
Third Party Claim, the indemnified party shall cooperate with the indemnifying
party in the defense or prosecution thereof. Such cooperation shall include
the retention and (upon the indemnifying party's request) the provision to the
indemnifying party of records and information which are reasonably relevant to
such Third Party Claim, and making employees available on a mutually
convenient basis to provide additional information and explanation of any
material provided hereunder. Whether or not the indemnifying party shall have
assumed the defense of a Third Party Claim, the indemnified party shall not
admit any liability with respect to, or settle, compromise or discharge, such
Third Party Claim without the indemnifying party's prior written consent
(which consent shall not be unreasonably withheld). If the indemnifying party
shall have assumed the defense of a Third Party Claim, the indemnified party
shall agree to any settlement, compromise or discharge of a Third Party Claim
which the indemnifying party may recommend and which by its terms obligates
the indemnifying party to pay the full amount of the liability in connection
with such Third Party Claim, which releases the indemnifying party completely
in connection with such Third Party Claim and which would not otherwise
adversely affect the Indemnified Party.

         (c) Procedures Unique to Tax Claims. With respect to any claim made
by any taxing authority (a "Tax Claim") covered by Section 3(a) hereof, the
Representative shall control all proceedings and may make all decisions taken
in connection with such Tax Claim (including selection of counsel) and,
without limiting the foregoing, may in its sole discretion pursue or forego
any and all administrative appeals, proceedings, hearings and conferences with
any taxing authority with respect thereto, and may, in its sole discretion,
either pay the Tax claimed and sue for a refund where applicable law permits
such refund suits or contest the Tax Claim in any permissible manner;
provided, however, that the Representative must first consult in good faith
with RSI before taking any action with respect to the conduct of a Tax Claim.
Notwithstanding the foregoing, (i) the Representative shall not settle any Tax
Claim without the prior written consent of RSI, which consent shall not be
unreasonably withheld, (ii) RSI, and counsel of its own choosing, shall have
the right to participate fully in all aspects of the defense of such Tax
Claim, (iii) the Representative shall inform RSI, reasonably promptly in
advance, of the date, time and place of all administrative and judicial
meetings, conferences, hearings and other proceedings relating to such Tax
Claim, (iv) RSI shall be entitled to have its representatives (including
counsel, accountants and consultants) attend and participate in any such
administrative and judicial meetings, conferences, hearings and other
proceedings relating to such Tax Claim and (v) the Representative shall
provide to RSI all information, document requests and responses, proposed
notices of deficiency, notices of deficiency, revenue agent's reports,
protests, petitions and any other documents relating to such Tax Claim
promptly upon receipt from, or in advance of submission to (as the case may
be), the relevant taxing authority.

         With respect to any Tax Claim covered by Section 3(b) hereof, RSI
shall control all proceedings and may make all decisions taken in connection
with such Tax Claim (including selection of counsel) and, without limiting the
foregoing, may in its sole discretion pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with any taxing
authority with respect thereto, and may, in its sole discretion, either pay
the Tax claimed and sue for a refund where applicable law permits such refund
suits or contest the Tax Claim in any permissible manner; provided, however,
that RSI must first consult in good faith with the Representative before
taking any action with respect to the conduct of a Tax Claim. Notwithstanding
the foregoing, (i) RSI shall not settle any Tax Claim without the prior
written consent of the Representative, which consent shall not be unreasonably
withheld, (ii) the Representative, and counsel of its own choosing, shall have
the right to participate fully in all aspects of the defense of such Tax
Claim, (iii) RSI shall inform the Representative, reasonably promptly in
advance, of the date, time and place of all administrative and judicial
meetings, conferences, hearings and other proceedings relating to such Tax
Claim, (iv) the Representative shall be entitled to have its representatives
(including counsel, accountants and consultants) attend and participate in any
such administrative and judicial meetings, conferences, hearings and other
proceedings relating to such Tax Claim and (v) RSI shall provide to the
Representative all information, document requests and responses, proposed
notices of deficiency, notices of deficiency, revenue agent's reports,
protests, petitions and any other documents relating to such Tax Claim
promptly upon receipt from, or in advance of submission to (as the case may
be), the relevant taxing authority.

         The Representative and RSI shall jointly control and participate in
all proceedings taken in connection with any Tax Claim relating to Taxes of
HQGW and its Subsidiaries for a Straddle Period. Neither the Representative
nor RSI shall settle any such Tax Claim without the prior written consent of
the other.

         RSI, on the one hand, and each Shareholder, on the other hand, shall,
reasonably cooperate in contesting any Tax Claim, which cooperation shall
include the retention and, upon request, the provision to the requesting
person of records and information which are reasonably relevant to such Tax
Claim, and making employees available on a mutually convenient basis to
provide additional information or explanation of any material provided
hereunder or to testify at proceedings relating to such Tax Claim.

         8. Escrow Disbursements in Respect of Valid Claims.

         (a) Upon receipt of (i) a written notice signed jointly by a duly
authorized officer of the Representative and a duly authorized officer of RSI
or (ii) a certified copy of a final, non-appealable judgment of a court of
competent jurisdiction accompanied by a certificate of the prevailing party
reasonably satisfactory to the Escrow Agent to the effect that said judgment
is final and non-appealable, specifying the amount of Loss to be paid by RSI
or the Shareholders, as the case may be, the Escrow Agent shall distribute to
the RSI Indemnitee or the Shareholder Indemnitee, as the case may be, from the
Escrow Account, a number of Indemnification Shares (each such share being
deemed to have a value equal to the Market Value) and any Cash Collateral
equal in value to such Shareholders' or RSI's, as the case may be, share of
the total amount of Loss specified in such notice, which notice shall take
into account the limitations set forth in Section 5(b) hereof. If the
Indemnification Shares (based on the Market Value) and Cash Collateral
contributed by a Shareholder or RSI remaining in the Escrow Account are
insufficient to satisfy such Shareholder's or RSI's share of the total amount
of Loss specified in such notice, the Escrow Agent shall distribute to the RSI
Indemnitee or the Shareholder Indemnitee, as the case may be, all remaining
Indemnification Shares and Cash Collateral deposited by such Shareholder or
RSI, as the case may be, held in the Escrow Account in accordance with written
instructions from the RSI Indemnitee or Shareholder Indemnitee, as the case
may be, upon which the Escrow Agent shall be entitled to conclusively rely.

         (b) Notwithstanding anything herein to the contrary, to the extent
that Indemnification Shares and/or Cash Collateral are to be distributed to
the RSI Indemnitee or the Shareholder Indemnitee, as the case may be, to pay a
Loss, in the absence of instructions pursuant to the proviso to this sentence
(of which the Escrow Agent shall have no duty or obligation to inquire about)
given through written notice to the Escrow Agent by the Shareholder or RSI
with respect to the Indemnification Shares and Cash Collateral in the Escrow
Account, the Escrow Agent will satisfy the portion of such Loss payable by
such Shareholder or RSI, as the case may be, (i) first, by distributing to the
RSI Indemnitee or the Shareholder Indemnitee, as the case may be, the
Indemnification Shares deposited by such Shareholder or RSI, as the case may
be, in the Escrow Account on the Closing Date, and (ii) second, by
distributing any Cash Collateral deposited by such Shareholder or RSI, as the
case may be, in the Escrow Account; provided, that any Shareholder or RSI, as
the case may be, by written notice to the Escrow Agent, may direct that Cash
Collateral referred to in clause (ii) above be distributed from the Escrow
Account prior to the distribution of Indemnification Shares. This provision
shall be controlling at all times unless such instructions have been received
prior to such distributions.

         (c) In each case in which a party seeks the delivery by the Escrow
Agent of Indemnification Shares pursuant to this Agreement, such party shall
provide to the Escrow Agent all information, to the extent applicable, with
respect to the transfer agent thereof, including without limitation, the name
and contact person.

         9. Final Distribution. At the close of business on June 30, 2001, any
Indemnification Shares and Cash Collateral remaining in the Escrow Account
shall be returned in whole or in part by the Escrow Agent to the respective
Shareholders or RSI who contributed such Indemnification Shares or Cash
Collateral upon and to the extent set forth in a joint notification by the
Representative and RSI.

         10. Limitation of Duties. The duties, responsibilities and
obligations of Escrow Agent shall be limited to those expressly set forth
herein and no duties, responsibilities or obligations shall be inferred or
implied. Escrow Agent shall not be subject to, nor required to comply with,
any other agreement between or among any or all of the Depositors or to which
any Depositor is a party, even though reference thereto may be made herein, or
to comply with any direction or instruction (other than those contained herein
or delivered in accordance with this Agreement) from any Depositor or an
entity acting on its behalf. Escrow Agent shall not be required to expend or
risk any of its own funds or otherwise incur any financial or other liability
in the performance of any of its duties hereunder.

         11. Legal Process. (a) If at any time Escrow Agent is served with any
judicial or administrative order, judgment, decree, writ or other form of
judicial or administrative process which in any way affects the Escrow
Property (including but not limited to orders of attachment or garnishment or
other forms of levies or injunctions or stays relating to the transfer of the
Escrow Property), Escrow Agent is authorized to comply therewith in any manner
it or legal counsel of its own choosing deems appropriate; and if Escrow Agent
complies with any such judicial or administrative order, judgment, decree,
writ or other form of judicial or administrative process, Escrow Agent shall
not be liable to any of the parties hereto or to any other person or entity
even though such order, judgment, decree, writ or process may be subsequently
modified or vacated or otherwise determined to have been without legal force
or effect.

         Escrow Agent shall not be liable for any action taken or omitted or
for any loss or injury resulting from its actions or its performance or lack
of performance of its duties hereunder in the absence of gross negligence or
willful misconduct on its part. In no event shall Escrow Agent be liable (i)
for acting in accordance with or relying upon any instruction, notice, demand,
certificate or document from any Depositor or any entity acting on behalf of
any Depositor, (ii) for any indirect, consequential, punitive or special
damages, regardless of the form of action and whether or not any such damages
were foreseeable or contemplated, (iii) for the acts or omissions of its
nominees, correspondents, designees, agents, subagents or subcustodians, (iv)
for the investment or reinvestment of any cash held by it hereunder, in each
case in good faith, in accordance with the terms hereof, including without
limitation any liability for any delays (not resulting from its gross
negligence or willful misconduct) in the investment or reinvestment of the
Escrow Property, or any loss of interest incident to any such delays, or (v)
for an amount in excess of the value of the Escrow Property, valued as of the
date of deposit, but only to the extent of direct money damages.

         (b) Escrow Agent may consult with its legal counsel as to any matter
relating to this Agreement, and Escrow Agent shall not incur any liability in
acting in good faith in accordance with any advice from such counsel.

         (c) Escrow Agent shall not incur any liability for not performing any
act or fulfilling any duty, obligation or responsibility hereunder by reason
of any occurrence beyond the control of Escrow Agent (including but not
limited to any act or provision of any present or future law or regulation or
governmental authority, any act of God or war, or the unavailability of the
Federal Reserve Bank wire or facsimile or other wire or communication
facility).

         (d) The Escrow Agent shall be entitled to rely upon any order,
judgment, certification, demand, notice, instrument or other writing delivered
to it hereunder without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity or the
service thereof. The Escrow Agent may act in reliance upon any instrument or
signature believed by it to be genuine and may assume that any person
purporting to give receipt or advice to make any statement or execute any
document in connection with the provisions hereof has been duly authorized to
do so.

         12. Authority; Validity. Escrow Agent shall not be responsible in any
respect for the form, execution, validity, value or genuineness of documents
or securities deposited hereunder, or for any description therein, or for the
identity, authority or rights of persons executing or delivering or purporting
to execute or deliver any such document, security or endorsement. The Escrow
Agent shall not be called upon to advise any party as to the wisdom in selling
or retaining or taking or refraining from any action with respect to any
securities or other property deposited hereunder.

         13. Duty of Care. The Escrow Agent shall not be under any duty to
give the Escrow Property held by it hereunder any greater degree of care than
it gives its own similar property and shall not be required to invest any
funds held hereunder except as directed in this Agreement. Uninvested funds
held hereunder shall not earn or accrue interest.

         14. Liability to Escrow Agent. Depositors, jointly and severally,
shall be liable for and shall reimburse and indemnify Escrow Agent (and any
predecessor Escrow Agent) and hold Escrow Agent harmless from and against any
and all claims, losses, actions. liabilities, costs, damages or expenses
(including reasonable attorneys' fees and expenses) (collectively "Escrow
Agent Losses") arising from or in connection with its administration of this
Agreement, except to the extent such Escrow Agent Losses are caused by its own
gross negligence or willful misconduct. In addition, when the Escrow Agent
acts on any information, instructions or communications, (including, but not
limited to, communications with respect to the delivery of securities or the
wire transfer of funds) sent by telex or facsimile, the Escrow Agent, absent
gross negligence, shall not be responsible or liable in the event such
communication is not an authorized or authentic communication of the
Depositor(s) or is not in the form the Depositor(s) sent or intended to send
(whether due to fraud, distortion or otherwise). The Depositor(s) shall
jointly and severally indemnify the Escrow Agent against any Loss it may incur
with its acting in accordance with any such communication. This paragraph
shall survive the termination of this Agreement or the removal of the Escrow
Agent.

         15. Disputes; Ambiguities. (a) In the event of any ambiguity or
uncertainty hereunder or in any notice, instruction or other communication
received by Escrow Agent hereunder, Escrow Agent may, in its sole discretion,
refrain from taking any action other than retain possession of the Escrow
Property, unless Escrow Agent receives written instructions, signed by the
Representative and RSI, which eliminates such ambiguity or uncertainty.

         (b) In the event of any dispute between or conflicting claims by or
among the Depositors with respect to any Escrow Property, Escrow Agent shall
be entitled, in its sole discretion, to refuse to comply with any and all
claims, demands or instructions with respect to such Escrow Property so long
as such dispute or conflict shall continue, and Escrow Agent shall not be or
become liable in any way to the Depositors for failure or refusal to comply
with such conflicting claims, demands or instructions. Escrow Agent shall be
entitled to refuse to act until, in its sole discretion, either (i) such
conflicting or adverse claims or demands shall have been determined by a final
order, judgment or decree of a court of competent jurisdiction, which order,
judgment or decree is not subject to appeal, or settled by agreement between
the conflicting parties as evidenced in a writing satisfactory to Escrow Agent
or (ii) Escrow Agent shall have received security or an indemnity satisfactory
to it sufficient to hold it harmless from and against any and all Escrow Agent
Losses which it may incur by reason of so acting. The Escrow Agent shall act
on such court order without further question. Escrow Agent may, in addition,
elect, in its sole discretion, to commence an interpleader action or seek
other judicial relief or orders as it may deem, in its sole discretion,
necessary. The costs and expenses (including reasonable attorneys' fees and
expenses) incurred in connection with such proceeding shall be paid by, and
shall be deemed a joint and several obligation of, the Depositors.

         (c) The Escrow Agent shall have no responsibility for the contents of
any writing of the arbitrators or any third party contemplated herein as a
means to resolve disputes and may conclusively rely without any liability upon
the contents thereof.

         16. Interest in Escrow Property. The Escrow Agent does not have any
interest in the Escrow Property deposited hereunder but is serving as escrow
holder only and having only possession thereof. The Depositors shall pay or
reimburse the Escrow Agent upon request for any transfer taxes or other taxes
relating to the Escrow Property incurred in connection herewith and shall
indemnify and hold harmless the Escrow Agent from any amounts that it is
obligated to pay in the way of such taxes. Any payments of income from the
Escrow Account shall be subject to withholding regulations then in force with
respect to United States taxes. The Depositors will provide the Escrow Agent
with appropriate W-9 forms for tax I.D., number certifications, or W-8 forms
for non-resident alien certifications. This paragraph shall survive
notwithstanding any termination of this Agreement or the resignation or
removal of the Escrow Agent.

         17. Due Authorization. Each Depositor hereby represents and warrants
(a) that this Agreement has been duly authorized, executed and delivered on
its behalf and constitutes its legal, valid and binding obligation and (b)
that the execution, delivery and performance of this Agreement by the
Depositor(s) does not and will not violate any applicable law or regulation.

         18. Payments to Escrow Agent. At the time of execution of this
Agreement, Depositors shall pay Escrow Agent an acceptance fee of $10,000. In
addition, Depositors shall pay Escrow Agent a fee of $60,000 per annum or part
thereof payable upon execution of this Agreement and thereafter on each
anniversary date of this Agreement and Depositors agree to reimburse the
Escrow Agent for all reasonable expenses, disbursements and advances incurred
or made by the Escrow Agent in performance of its duties hereunder (including
reasonable fees, expenses and disbursements of its counsel). The obligations
contained in this Section shall be a joint and several obligation of the
Depositors. Without limiting the rights of the Escrow Agent under the
preceding sentence, RSI, on the one hand, and the Shareholders, on the other
hand, agree as between themselves that all fees and related expenses of the
Escrow Agent hereunder (including fees of its legal counsel) shall be paid
one-half by RSI and one-half by the Shareholders.

         19. Fractional Shares. No fractional shares shall be delivered to
satisfy any claims. If the Indemnification Shares to be so delivered from the
Escrow Account in respect of any Shareholder or RSI, as the case may be, would
include a fractional share, the parties hereto agree that the Representative
and RSI may round such fraction to the nearest whole share.

         20. Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent by prepaid telex, cable or telecopy or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service
and shall be deemed given when so delivered by hand, telexed, cabled or
telecopied, or if mailed, three days after mailing (one business day in the
case of express mail or overnight courier service), as follows:

                           If to the Shareholders:
                           At the address set forth opposite
                           such Shareholder's name on the
                           signature page hereto

                           with a copy to:
                           Hogan & Hartson, L.L.P.,
                           Columbia Square
                           555 Thirteenth Street, N.W.
                           Washington, DC  20004
                           Telecopy No:  (202) 637-5910
                           Attention:       Warren Gorrell
                                            David Bonser; and

                           If to RSI:

                           Reckson Service Industries, Inc.
                           10 East 50th Street
                           Suite 2700
                           New York, NY  10022
                           Telecopy No:  (212) 931-8001
                           Attention:  Scott H. Rechler

                           with copies to:
                           Brown & Wood LLP
                           One World Trade Center
                           New York, NY  10048
                           Telecopy No:  (212) 839-5599
                           Attention:       Joseph W. Armbrust, Jr.
                                            J. Gerard Cummins

                           If to the Escrow Agent:
                           Global Agency and Trust Services Department
                           Citibank, N.A.
                           111 Wall Street
                           New York, NY  10043
                           Telecopy No.:  (212) 657-2762
                           Attention:       Carmina Day

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

         21. No Assignment or Benefit to Third Parties. This Agreement may not
be assigned by operation of law or otherwise, except by RSI to one or more
entities controlled by RSI (with RSI remaining responsible for its obligations
under this Agreement). Notwithstanding the foregoing, the rights or duties of
each of the parties under this Agreement may be assigned by such party in
connection with a sale of all or substantially all of its assets or a merger,
consolidation or other similar business combination transaction. Nothing
expressed or implied in this Agreement is intended, nor shall be construed, to
confer (a) any rights, remedies, obligations or liabilities, legal or
equitable, other than as provided in this Agreement or (b) otherwise
constitute any person (other than the Representative) a third party
beneficiary under or by reason of this Agreement (it being acknowledged that
the Representative is a third party beneficiary of this Agreement and is
entitled to enforce the relevant provisions of this Agreement, including
Section 4(b)(ZZZ) on behalf of Holdco).

         22. Headings. The headings of the Sections of this Agreement are for
convenience only and do not constitute a part of this Agreement.

         23. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
party and delivered to the others.

         24. Applicable Law. This Agreement shall be construed and enforced in
accordance with, and governed by the laws of the State of New York, without
application of any choice of law provisions that would apply any law other
than the laws of New York.

         25. Several Liability. Anything in this Agreement to the contrary
notwithstanding, the representations, warranties, covenants and agreements of
the Shareholders set forth herein are several and not joint, except with
respect to any obligations due and payable to the Escrow Agent.

         26. Powers of the Representative. Each Shareholder by executing this
Agreement hereby appoints CarrAmerica as such Shareholder's agent and attorney
in fact (the "Representative") hereunder with full irrevocable power and
authority in the place and stead of such Shareholder and in the name of such
Shareholder to take any and all actions, and to execute any and all
instruments and other documents, which in the sole judgment of the
Representative are necessary or appropriate in handling claims for Losses made
pursuant to Section 3, 4(a)(W), 4(a)(X) and 4(b) of this Agreement. Said power
of attorney shall not be affected by the subsequent incapacity of any
Shareholder. Without limiting the generality of the foregoing, each of the
Shareholders agrees that the Representative (1) has full power and authority
to take such action on behalf of the Shareholders with respect to any
Indemnification Shares and Cash Collateral held by the Escrow Agent and with
respect to any and all claims for Losses (including, without limitation, any
decisions to accept or to challenge any claims for Losses) as the
Representative in its sole discretion may determine (except to the extent that
this Agreement provides for any action with respect to such Indemnification
Shares or Cash Collateral to be taken by the Shareholders themselves) and (2)
shall represent the Shareholders for all purposes in connection with the
claims specified above, including the receipt of notices and the exercise or
wavier of any rights with respect to RSI's obligations under this Agreement,
and resolution of disputes or uncertainties arising hereunder and thereunder
(except to the extent that any such agreement expressly provides for any
action to be taken or other matter to be dealt with by the Shareholders
themselves). The Representative shall forward the Shareholders copies of all
notices of Claims received from any RSI Indemnitee and of the disposition of
all such Claims. The Shareholders also agree that the Shareholders shall be
bound by all decisions of the Representative pursuant to the authority granted
hereunder, and that such authority may not be revoked during the term of this
Agreement.

         Except as expressly set forth in this Agreement, it is understood
that the Representative is not assuming any responsibility or liability to any
person by virtue of the powers granted by the Shareholders hereby. The
Representative shall not make any representations with respect to and shall
have no responsibility for the transactions contemplated by the Merger
Agreement, the Stock Purchase Agreement or the UK Agreement or any aspect
thereof except as expressly set forth in such agreements. The Representative
shall not be liable to any other Shareholder for any error of judgment or for
any act done or omitted or for any mistake of fact or law except for such
Representative's own gross negligence or bad faith. Each Shareholder agrees to
indemnify the Representative and to hold the Representative harmless against
any loss, claim, damage or liability incurred by him arising out of or in
connection with acting as the Representative pursuant to this Agreement, as
well as the cost and expense of investigating and defending against any such
loss, claim, damage or liability, except to the extent such loss, claim,
damage or liability is due to the gross negligence or bad faith of the
Representative. Each Shareholder agrees that the Representative may consult
with counsel of its own choice (who may be counsel for CarrAmerica or any
affiliate thereof) and it shall have full and complete authorization and
protection for any action taken or suffered by it hereunder in good faith and
in accordance with the opinion of such counsel. It is understood that the
Representative may, without breaching any express or implied obligation to any
Shareholder hereunder, release, amend or modify any other power of attorney
granted by any other person under any related agreement.

         27. Litigation Costs. If any litigation with respect to the
obligations of the parties under this Agreement results in a final
nonappealable order of a court of competent jurisdiction that results in a
final disposition of such litigation, the prevailing party, as determined by
the court ordering such disposition, shall be entitled to reasonable
attorneys' fees as shall be determined by such court. contingent or other
percentage compensation arrangements shall not be considered reasonable
attorneys' fees.

         28. Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY
WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT.

         29. Amendment. This Agreement may be amended by written agreement
signed by the Escrow Agent (other than Sections 3 through 7 inclusive), RSI,
the Representative and each Shareholder that would be adversely affected by
such amendment.

         30. Waiver. Any party to this Agreement may extend the time for the
performance of any of the obligations or other acts of any other party hereto,
or waive compliance with any of the agreements of any other party or with any
condition to the obligations hereunder, in each case only to the extent that
such obligations, agreements and conditions are intended for its benefit, each
Shareholder hereby severally agreeing that any such extension or waiver by
such Shareholder may be given by the Representative and each Shareholder
hereby severally confirming that it has appointed the Representative as its
attorney-in-fact to give any such extension or waiver on behalf of such
Shareholder.

<PAGE>

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

                          CARRAMERICA REALTY
                          CORPORATION

                          By:  /s/ Karen B. Dorigan
                               ----------------------------------
                               Name:   Karen B. Dorigan
                               Title:  Managing Director

                          RECKSON SERVICE INDUSTRIES, INC.

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

                          STRATEGIC OMNI INVESTORS LLC

                          By:  /s/ Jill B. Louis
                               -----------------------------------
                               Name:     Jill B. Louis
                               Title:    Attorney-in-Fact

                          SECURITY CAPITAL HOLDINGS S.A.

                          By:  /s/ Jill B. Louis
                               -----------------------------------
                               Name:     Jill B. Louis
                               Title:    Attorney-in-Fact

                          THE OLIVER CARR COMPANY

                          By:  /s/ Jill B. Louis
                               -----------------------------------
                               Name:     Jill B. Louis
                               Title:    Attorney-in-Fact

                          CARR HOLDINGS LLC

                          By:  /s/ Jill B. Louis
                               -----------------------------------
                               Name:     Jill B. Louis
                               Title:    Attorney-in-Fact

                          Escrow Agent:

                          CITIBANK, N.A.

                          By:  /s/ Carmmina Bitar Day
                               ------------------------------------
                               Name:  Carmmina Bitar Day
                               Title:  Assistant Vice President

                          Additional Indemnitors Listed on Schedule B

                          By:  /s/ Jill B. Louis
                               -----------------------------------
                               Name:     Jill B. Louis
                               Title:    Attorney-in-Fact

<PAGE>

                                  Schedule A

Shareholder                                         Ownership Percentage

CarrAmerica Realty Corporation                         86.13836%
Strategic Omni Investors LLC                            3.94820%
Security Capital Holdings S.A.                          2.88310%
The Oliver Carr Company                                 0.26877%
Carr Holdings LLC                                       1.13161%
Gary Kusin                                              3.56287%
Michael Beretta                                         0.10953%
Judy Christian                                          0.26918%
John Costoulas                                          0.05953%
Patricia Gifford                                        0.04400%
Jennifer Gilbert                                        0.05953%
Jennifer Goodwyn                                        0.09943%
Kathleen Grant                                          0.04762%
Nancy Herhahn                                           0.05953%
Charles E. Miller, Jr.                                  0.12105%
Patricia Moon                                           0.05953%
Kimberly Samon                                          0.12424%
Joseph Wallace                                          0.64287%
Bennett Weinblatt                                       0.12741%
Christie White                                          0.04985%
Jill Louis                                              0.07229%
Susan Morris                                            0.08675%
Lesley Archer Rice                                      0.02900%
                                                      ----------
                                                      100.00000%

<PAGE>

                                  Schedule B

                 Gary Kusin
                 Michael Beretta
                 Judy Christian
                 John Costoulas
                 Patricia Gifford
                 Jennifer Gilbert
                 Jennifer Goodwyn
                 Kathleen Grant
                 Nancy Herhahn
                 Charles E. Miller, Jr.
                 Patricia Moon
                 Kimberly Samon
                 Joseph Wallace
                 Bennett Weinblatt
                 Christie White
                 Jill Louis
                 Susan Morris
                 Lesley Archer Rice

<PAGE>

                                  Schedule C

                 CarrAmerica Realty CorporationExhibit 10.7

                              PURCHASE AGREEMENT

     PURCHASE AGREEMENT, dated as of May 31, 2000, by and among FrontLine
Capital Group, a Delaware corporation ("FCG"), HQ Global Holdings, Inc., a
Delaware corporation ("Holdco"), and EOP Operating Limited Partnership, a
Delaware limited partnership (the "Investor").

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

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

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

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

     WHEREAS, pursuant to the Exchange Agreement, dated as of May 31, 2000
(the "Exchange Agreement"), Holdco and FCG have agreed to exchange 4,130,530
shares of common stock of Holdco (the "Common Shares") to be received by FCG
in the Second Step Merger in exchange for the Old HQ Common Stock to be
purchased by FCG from CarrAmerica and certain other persons pursuant to the
Stock Purchase Agreement for 3,704,933.820 newly issued shares of Series A
Convertible Cumulative Preferred Stock (the "Preferred Stock") of Holdco and
warrants to purchase up to 1,660,341.752 shares of voting common stock, par
value $.01 per share (the "Voting Common Stock"), of Holdco, the terms of
which are in the form attached as Exhibit B hereto in respect of warrants to
purchase 1,119,660.807 shares of Voting Common Stock (the "Initial Total FCG
Warrants") and in Exhibit C hereto in respect of warrants to purchase
540,680.945 shares of Voting Common Stock (the "Subsequent Total FCG
Warrants").

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

     WHEREAS, Holdco desires to sell to the Investor, and the Investor desires
to purchase from Holdco, certain securities on the terms and conditions
specified in this Agreement.

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

     Accordingly, Holdco, FCG and the Investor hereby agree as follows:

     1. Purchase and Sale of Securities. (a) On the terms and subject to the
conditions of this Agreement, (i) Holdco agrees to sell to the Investor, and
the Investor agrees to purchase from Holdco, for $43,942,374.85 (the "Holdco
Purchase Price") (A) the 1,077,758.180 newly issued shares of Preferred Stock
(the "Holdco Preferred Shares"), the terms of which are contained in the
certificate of designations to Holdco's certificate of incorporation (the
"Certificate of Designations") in the form attached as Exhibit A hereto,
having an initial liquidation preference equal to $43,942,374.85 and (B)
warrants to purchase up to 482,990.248 shares of Voting Common Stock (the
"Holdco Warrants," and together with the Holdco Preferred Shares, the "Holdco
Securities"), the terms of which are in the form attached as Exhibit B hereto
in respect of Holdco Warrants to purchase 325,707.193 shares of Voting Common
Stock (the "Initial Holdco Warrants", and together with the Initial Total FCG
Warrants, the "Initial Warrants") and in Exhibit C hereto in respect of Holdco
Warrants to purchase 157,283.055 shares of Voting Common Stock (the
"Subsequent Holdco Warrants", and together with the Subsequent Total FCG
Warrants, the "Subsequent Warrants").

          (b) On the terms and subject to the conditions of this Agreement,
(i) FCG agrees to sell to the Investor, and the Investor agrees to purchase
from FCG, for $31,057,625.15 (the "FCG Purchase Price") (A) 761,738.748 shares
of Preferred Stock purchased by FCG from Holdco pursuant to the Exchange
Agreement (the "FCG Preferred Shares"), the terms of which are contained in
the Certificate of Designations in the form attached as Exhibit A hereto,
having an initial liquidation preference equal to $31,057,625.15 and (B)
warrants to purchase up to 341,368.213 shares of Voting Common Stock purchased
by FCG from Holdco pursuant to the Exchange Agreement (the "FCG Warrants," and
together with the FCG Preferred Shares, the "FCG Securities"), the terms of
which are in the form attached as Exhibit B hereto in respect of FCG Warrants
to purchase 230,203.576 shares of Voting Common Stock and in Exhibit C hereto
in respect of FCG Warrants to purchase 111,164.637 shares of Voting Common
Stock.

          (c) The closing (the "Closing") of the purchase and sale of the
securities referred to in clause (a) above shall be held at the offices of
Brown & Wood LLP, One World Trade Center, New York, New York 10048,
immediately after, and on the same date as, the Closing under the Merger
Agreement, subject to the satisfaction or waiver of the conditions set forth
in Section 6 hereof. The date on which the Closing shall occur, which shall
not extend beyond June 5, 2000, is hereinafter referred to as the "Closing
Date," and, if the Closing Date is not May 31, 2000, Holdco and FCG shall
notify the Investor prior to the close of business on the business day
immediately preceding the Closing Date. On the Closing Date, (i) Holdco shall
deliver certificates issued in the Investor's name representing the Holdco
Preferred Shares and the Holdco Warrants, (ii) FCG shall deliver certificates
issued in the Investor's name representing the FCG Preferred Shares and the
FCG Warrants, and (iii) the Investor shall deposit the Holdco Purchase Price
and the FCG Purchase Price in immediately available funds with Citibank, N.A.,
as escrow agent (the "Escrow Agent") under the Escrow Agreement, dated as of
May 31, 2000 (the "Escrow Agreement") for payment to Holdco and FCG,
respectively, it being understood that the Closing shall occur, and the Holdco
Purchase Price and the FCG Purchase Price only released from escrow, in
accordance with the terms and conditions set forth in the Escrow Agreement.

     2. Representations and Warranties of Holdco. Holdco hereby represents and
warrants to the Investor as of the date hereof and as of the Closing Date that
the representations and warranties applicable to Old HQ and VANTAS contained
in Sections 4(A) and 5(A), respectively, of the Merger Agreement are true and
correct with the same force and effect as though made at and as of the date
hereof. In addition, Holdco represents and warrants to the Investor as of the
date hereof and as of the Closing Date as to the following matters:

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

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

          (c) No Conflicts; Consents. The execution and delivery of this
Agreement, the Exchange Agreement, the Registration Rights Agreement and the
Stockholders Agreement by Holdco does not, and the consummation of the
transactions contemplated hereby and thereby and compliance with the terms
hereof and thereof will not conflict with, or result in any violation of, or
default (with or without notice or lapse of time, or both) under, or give rise
to a right of termination, cancellation or acceleration of any obligation or
to a material loss of a benefit under, or result in the creation of any lien,
charge or encumbrance of any kind upon any of the properties or assets of
Holdco or its subsidiaries under, any provision of (i) the certificate of
incorporation or by-laws of Holdco and its subsidiaries, (ii) any note, bond,
mortgage, indenture, deed of trust, license, lease, contract, commitment,
agreement or arrangement to which Holdco or any of its subsidiaries is a party
or by which any of them or any of their respective properties or assets is
bound or (iii) subject to the governmental filings and other matters referred
to in the succeeding sentence, any judgment, order or decree, or statute, law,
ordinance, rule or regulation, applicable to Holdco or any of its subsidiaries
or any of their respective properties or assets. Except as set forth on
Schedule 2(c), no consent, approval, license, permit, order or authorization
of, or registration, declaration or filing with, any Governmental Entity is
required to be obtained or made by or with respect to Holdco or any of its
subsidiaries in connection with the execution, delivery and performance by
Holdco of this Agreement, the Exchange Agreement, the Registration Rights
Agreement and the Stockholders Agreement or the consummation of the
transactions contemplated hereby and thereby, other than such other consents,
approvals, orders, authorizations, registrations, declarations and filings (i)
as are set forth on Schedule 2(c), (ii) as may be required under the "blue
sky" laws of various states and (iii) as otherwise contemplated in the
Registration Rights Agreement.

          (d) Capital Stock. The authorized capital stock of Holdco consists
of 75,000,000 shares of Voting Common Stock, 25,000,000 shares of non-voting
common stock, par value $.01 per share (the "Nonvoting Common Stock," and
together with the Voting Common Stock, the "Common Stock"), and 7,800,000
shares of preferred stock. At the Closing, there shall only be 9,972,827
shares of Voting Common Stock, 2,152,988 shares of Nonvoting Common Stock and
4,782,692 Preferred Shares issued and outstanding. All of the outstanding
shares of Common Stock have been, and at the Closing, all of the shares of
Common Stock issued pursuant to the Second Step Merger Agreement will be,
validly issued and outstanding, fully paid and nonassessable. At the Closing,
(i) the Initial Warrants entitle the holders thereof to purchase 1,445,368
shares of the Common Stock of Holdco, representing 7.875% of the shares of
Common Stock of Holdco on a fully diluted basis, and (ii) the Subsequent
Warrants will entitle the holders thereof to purchase 697,964 shares of the
Common Stock of Holdco, representing 3.375% of the shares of Common Stock of
Holdco on a fully-diluted basis. Except as set forth in Schedule 2(d), none of
the outstanding shares of Common Stock have been issued in violation of, or
are subject to, any preemptive or similar rights under any provision of
applicable law, the certificate of incorporation or by-laws of Holdco or any
agreement, contract or instrument to which Holdco is a party or by which it or
any of its properties or assets is bound. Except as set forth on Schedule
2(d), there are no outstanding warrants, options, rights, convertible or
exchangeable securities or other commitments (other than those contemplated by
this Agreement) (i) pursuant to which Holdco is or may become obligated to
issue, sell, purchase, return or redeem any shares of Common Stock or its
preferred stock or (ii) that give any person the right to receive any benefits
or rights similar to any rights enjoyed by or accruing to the holders of
shares of Common Stock or its preferred stock of Holdco. There are no shares
of Common Stock or preferred stock reserved for issuance by Holdco for any
purpose except for securities reserved for issuance for the purposes set forth
on Schedule 2(d). Except as set forth in Schedule 2(d), there are no
outstanding bonds, debentures, notes or other indebtedness having the right to
vote on any matters on which stockholders of Holdco may vote.

          (e) Preferred Shares. The Holdco Preferred Shares and the FCG
Preferred Shares have been duly authorized for issuance by Holdco pursuant to
the terms of this Agreement and, at Closing, (i) will be validly issued, fully
paid and nonassessable, (ii) will be free and clear of all Liens, other than
transfer restrictions relating to the federal securities laws, (iii) will not
be issued in violation of any preemptive or similar rights under any
provisions of applicable law, the certificate of incorporation or by-laws of
Holdco or any agreement, contract or instrument to which Holdco is a party or
by which it or any of its properties or assets is bound and (iv) assuming the
accuracy of the representations and warranties set forth in Section 4 will be
issued in compliance with the registration and qualification requirements of
all applicable federal securities laws as presently in effect.

          (f) Warrants. The Holdco Warrants and the FCG Warrants have been
duly authorized for issuance by Holdco pursuant to the terms of this Agreement
and, at Closing, will be legal, valid and binding obligations of Holdco,
enforceable against Holdco in accordance with their terms, except insofar as
enforcement thereof may be limited by bankruptcy, insolvency or other laws
relating to or affecting enforcement of creditors' rights generally or by
general equity principles.

          (g) Common Stock. The shares of Common Stock issuable upon
conversion of the Holdco Preferred Shares and FCG Preferred Shares or upon
exercise of the Holdco Warrants or FCG Warrants have been duly authorized by
Holdco and, when issued and delivered in accordance with the terms of the
Holdco Preferred Shares, FCG Preferred Shares, Holdco Warrants or FCG
Warrants, as the case may be, will be validly issued, fully paid and
nonassessable and will not be subject to any preemptive or similar rights
under any provision of applicable law, the certificate of incorporation or
by-laws of Holdco or any agreement, contract or instrument to which Holdco is
a party or by which it or any of its properties or assets is bound.

          (h) Financial Statements. (i) The audited consolidated balance
sheets of VANTAS as of June 30, 1997, June 30, 1998, December 31, 1998 and
December 31, 1999 and the related consolidated statements of income,
stockholder's equity and cash flows of VANTAS for the fiscal years ended as of
such dates, which financial statements have been examined by
PricewaterhouseCoopers LLP, independent certified public accountants, (ii) the
unaudited consolidated balance sheet of VANTAS as of March 31, 2000 and
related consolidated statements of income, stockholder's equity and cash flows
of VANTAS for the fiscal quarter ended as of such date, (iii) the audited
consolidated balance sheets of Old HQ as of December 31, 1997, December 31,
1998 and December 31, 1999 and the related statements of earnings and cash
flows of Old HQ and its subsidiaries for the fiscal years ended as of such
dates, which financial statements have been examined by KPMG LLP, independent
certified public accountants, (iv) the unaudited consolidated balance sheet of
Old HQ as of March 31, 2000 and the related statements of earnings and cash
flows of Old HQ and its subsidiaries for the fiscal quarter ended as of such
date, and (v) the pro forma (after giving effect to the consummation of the HQ
Merger, the Second Step Merger and related financing and other related
matters) consolidated balance sheets and statements of income and cash flows
of Holdco and its subsidiaries as of December 31, 1999, copies of all of which
financial statements referred to in the preceding clauses (i), (ii), (iii),
(iv) and (v) have heretofore been made available to the Investor, present
fairly the financial position of the respective entities at the dates of said
statements and the results of operations for the period covered thereby (or,
in the case of the pro forma financial statements, present a good faith
estimate of the pro forma financial condition of Holdco and its subsidiaries
(after giving effect to the consummation of the HQ Merger, the Second Step
Merger and related financing and other related matters) on a consolidated
basis at the date thereof). All such financial statements have been prepared
in accordance with generally accepted accounting principles consistently
applied except to the extent provided in the notes to said financial
statements and with respect to interim financial statements, subject to normal
year end adjustments.

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

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

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

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

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

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

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

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

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

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

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

     5. Covenants.

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

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

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

     6. Conditions to Closing.

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

          (b) Obligation of Holdco and FCG. The obligations of Holdco and FCG
hereunder are subject to the satisfaction (or waiver by Holdco or FCG, as the
case may be) as of the Closing of the following conditions:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

               (xiii) At the Closing, Old HQ shall have executed and delivered
to the Investor the Operating Agreement of HQ Global Workplaces Equity Joint
Venture, LLC, in the form attached as Exhibit M hereto, together with all of
the documents to be executed and delivered by Old HQ pursuant thereto, and
(assuming due execution and delivery by the Investor) the same shall be in
full force and effect.

               (xiv) At the Closing, one or more parties, other than FCG or
any affiliate thereof or the Investor, shall purchase at least $95 million of
Preferred Stock.

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

          (d) Frustration of Closing Conditions. Neither FCG nor the Investor
may rely on the failure of any condition set forth in Sections 6(a), (b), (c)
or (d), respectively, to be satisfied if such failure was caused by such
party's failure to perform its obligations hereunder or to use its
commercially reasonable efforts to cause the Closing to occur as required by
Section 6.

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

     8. Assignment. This Agreement and the rights and obligations hereunder
shall not be assignable or transferable by (i) FCG or Holdco without the prior
written consent of the Investor or (ii) by the Investor without the prior
written consent of Holdco and FCG. Any attempted assignment in violation of
this Section 8 shall be void ab initio and of no further force and effect.

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

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

     11. Representations, Warranties and Agreements to Survive Delivery. All
representations, warranties and agreements contained in this Agreement or in
certificates of officers of FCG or the Investor submitted pursuant hereto
shall remain operative and in full force and effect for a period of one year
(or, in the case of the representation and warranty specified in Section
5(A)(b) of the Merger Agreement, for the period of any applicable statute of
limitations) following the Closing. Notwithstanding anything to the contrary
contained in the foregoing, nothing in this Section 11 is intended to indicate
that any representation or warranty will be true at any time other than at the
time of execution of this Agreement and at the Closing.

     12. Indemnification.

          (a) Indemnity by Holdco and FCG. Holdco and FCG shall, jointly and
severally, indemnify the Investor and its affiliates, controlling persons,
constituent partners and subsidiaries and their directors, officers, members,
employees against all expenses, costs, losses, claims, damages, liabilities
and judgments (including, without limitation, reasonable attorney's fees and
expenses) incurred or sustained by any such party resulting from (i) any
breach of the representations and warranties of Holdco set forth in Section 2
or FCG set forth in Section 3, (ii) FCG's, Holdco's or VANTAS' acts or failure
to act, (iii) any misstatements or omissions made in any disclosure or other
information or materials delivered or made available to the Investor in
connection with the investment contemplated under this Agreement, (iv) the
action or failure to act by an indemnified party with FCG's, Holdco's or
VANTAS' consent or in reliance on FCG's, Holdco's or VANTAS' action or failure
to act or (v) any and all environmental liabilities, costs and expenses
arising out of or incurred in connection with the consummation of the Merger,
the Second Step Merger or the investment contemplated in this Agreement;
provided, however, that such indemnity shall not extend to any expenses,
costs, losses, claims, damages, liabilities or judgments to the extent arising
out of (A) the gross negligence or willful misconduct of any person
indemnified under this Section 12(a) as determined by a court of competent
jurisdiction in a final, non-appealable judgment or (B) a breach by the
Investor of its representations and warranties contained herein.

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

          (b) Indemnity by the Investor. The Investor shall indemnify FCG,
Holdco and their respective directors, officers and employees against all
expenses, costs, losses, claims, damages, liabilities and judgments
(including, without limitation, reasonable attorney's fees and expenses)
incurred or sustained by any such party resulting from any breach of the
representations and warranties of the Investor set forth in Section 4;
provided, however, that such indemnity shall not extend to any expenses,
costs, losses, claims, damages, liabilities and judgments to the extent
arising out of (A) the gross negligence or willful misconduct of any person
indemnified under this Section 12(b) as determined by a court of competent
jurisdiction in a final, non-appealable judgment or (B) a breach by Holdco or
FCG, as the case may be, of the representations and warranties set forth in
Section 2 or Section 3, respectively. Under no circumstances shall the
Investor be liable to FCG, Holdco or any other indemnified party under this
Section 12(b) for any punitive, exemplary, consequential or indirect damages
arising therefrom.

          (c) Notice of Actions or Proceedings. In case any action or
proceeding shall be commenced involving any party in respect of which
indemnity may be sought pursuant to Sections 12(a) or 12(b) (the "indemnified
party"), the indemnified party shall promptly notify the party against whom
such indemnity may be sought (the "indemnifying party") in writing of such
action or proceeding; provided, however, that failure of an indemnified party
to provide such notice shall not relieve the indemnifying party of its
obligations under this Section 12 if such failure does not materially and
adversely affect the rights of the indemnifying party.

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

     13. Notices. All notices or other communications required or permitted to
be given hereunder shall be in writing and shall be delivered by hand or sent
by prepaid telex, cable or telecopy or sent, postage prepaid, by registered,
certified or express mail or reputable overnight courier service and shall be
deemed given when so delivered by hand, telexed, cabled or telecopied, or if
mailed, three days after mailing (one business day in the case of express mail
or overnight courier service), as follows:

          (i)   if to Holdco,

                15950 North Dallas Parkway
                Suite 350
                Dallas, Texas  75248
                Attention:  General Counsel
                Tel:  (972) 361-8100
                Fax:  (972) 361-8216

          (ii)  if to FCG,

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

                with copies  to:

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

          (iii) if to the Investor,

                EOP Operating Limited Partnership
                Suite 2100
                Two North Riverside Plaza
                Chicago, Illinois 60606
                Attention: Chief Legal Counsel
                Tel: (312) 466-3362
                Fax: (312) 559-5021

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

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

     15. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties and delivered to the other party.

     16. Entire Agreement. This Agreement contains the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings relating to such
subject matter, except insofar as it relates to the Break-Up Fee specified in
the Term Sheet, dated April 26, 2000. The parties hereto shall not be liable
or bound to any other party in any manner by any representations, warranties
or covenants relating to such subject matter except as specifically set forth
herein.

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

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

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

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

<PAGE>

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

                                FRONTLINE CAPITAL GROUP

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

                                HQ GLOBAL HOLDINGS, INC.

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

                                EOP OPERATING LIMITED PARTNERSHIP
                                By:  Equity Office Properties Trust,
                                      its managing general partner

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

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

                                    Nothing

<PAGE>

                                 SCHEDULE 2(d)
                                 -------------

                         CAPITAL STOCK OF THE COMPANY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          o   250 Options at an exercise price of $4.75

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

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

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

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

<PAGE>

                                 SCHEDULE 5(c)

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

<TABLE>
<CAPTION>

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

LC#                      Letter of Credits Issued     Beneficiary                            Maturity Date

<S>                      <C>                          <C>                                    <C>
868684                   $  828,630                   RCPI Trust                                       6/1/01

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

<PAGE>

Schedule 5(c)
         (continued)

<TABLE>
<CAPTION>

First Union Letters of Credit

      Subsidiary         Issuing Bank        LC#            Stated Amount                 Beneficiary                Expiry Date

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

</TABLE>

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