Document:

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                                                                    EXHIBIT 10.2

                            PLUMTREE SOFTWARE, INC.

                           1997 EQUITY INCENTIVE PLAN

               Adopted by the Board of Directors on June 30, 1997
                     Approved by Shareholders June 30, 1997

             Amended by the Board of Directors on February 10, 1999
                     Approved by Shareholders July 24, 1999

               Amended by the Board of Directors on March 8, 2000
                  Approved by the Shareholders March 14, 2000

              Amended by the Board of Directors on July 12, 2000
                Approved by the Shareholders September 15, 2000

            Amended by the Board of Directors on November 16, 2000
                 Approved by the Shareholders January 8, 2001

             Amended by the Board of Directors on January 9, 2001

1.   PURPOSES.

     (a) The purpose of the Plan is to provide a means by which selected
Employees and Directors of and Consultants to the Company, and its Affiliates,
may be given an opportunity to benefit from increases in value of the stock of
the Company through the granting of (i) Incentive Stock Options, (ii)
Nonstatutory Stock Options, (iii) stock bonuses, and (iv) rights to purchase
restricted stock, all as defined below.

     (b) The Company, by means of the Plan, seeks to retain the services of
persons who are now Employees or Directors of or Consultants to the Company or
its Affiliates, to secure and retain the services of new Employees, Directors
and Consultants, and to provide incentives for such persons to exert maximum
efforts for the success of the Company and its Affiliates.

     (c) The Company intends that the Stock Awards issued under the Plan shall,
in the discretion of the Board or any Committee to which responsibility for
administration of the Plan has been delegated pursuant to subsection 3(c), be
either (i) Options granted pursuant to Section 6 hereof, including Incentive
Stock Options and Nonstatutory Stock Options or (ii) stock bonuses or rights to
purchase restricted stock granted pursuant to Section 7 hereof.  All Options
shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and in such form as issued pursuant to Section 6,
and a separate certificate or certificates will be issued for shares purchased
on exercise of each type of Option.

2.   DEFINITIONS.

     (a) "Affiliate" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f) respectively, of the Code.

     (b) "Board" means the Board of Directors of the Company.
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     (c) "Code" means the Internal Revenue Code of 1986, as amended.

     (d) "Committee" means a Committee appointed by the Board in accordance with
subsection 3(c) of the Plan.

     (e) "Company" means Plumtree Software Corporation, a California
corporation.

     (f) "Consultant" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services, provided that the term "Consultant" shall not include Directors
who are paid only a director's fee by the Company or who are not compensated by
the Company for their services as Directors.

     (g) "Continuous Status as an Employee, Director or Consultant" means that
the service of an individual to the Company, whether as an Employee, Director or
Consultant, is not interrupted or terminated.  The Board or the chief executive
officer of the Company may determine, in that party's sole discretion, whether
Continuous Status as an Employee, Director or Consultant shall be considered
interrupted in the case of:  (i) any leave of absence approved by the Board or
the chief executive officer of the Company, including sick leave, military
leave, or any other personal leave; or (ii) transfers between the Company,
Affiliates or their successors.

     (h) "Covered Employee" means the chief executive officer and the four (4)
other highest compensated officers of the Company for whom total compensation is
required to be reported to shareholders under the Exchange Act, as determined
for purposes of Section 162(m) of the Code.

     (i) "Director" means a member of the Board.

     (j) "Employee" means any person, including Officers and Directors, employed
by the Company or any Affiliate of the Company.  Neither service as a Director
nor payment of a director's fee by the Company shall be sufficient to constitute
"employment" by the Company.

     (k) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (l) "Fair Market Value" means, as of any date, the value of the common
stock of the Company determined as follows (and in each case prior to the
Listing Date, in a manner consistent with Section 260.140.50 of Title 10 of the
California Code of Regulations):

         (1) If the common stock is listed on any established stock exchange or
traded on the Nasdaq National Market or The Nasdaq SmallCap Market, the Fair
Market Value of a share of common stock shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or market (or the exchange or market with the greatest volume of
trading in the Company's common stock) on the last market trading day prior to
the day of

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determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable.

         (2) In the absence of such markets for the common stock, the Fair
Market Value shall be determined in good faith by the Board.

     (m) "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

     (n) "Listing Date" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange, or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system if
such securities exchange or interdealer quotation system has been certified in
accordance with the provisions of Section 25100(o) of the California Corporate
Securities Law of 1968.

     (o) "Non-Employee Director" means a Director who either (i) is not a
current Employee or Officer of the Company or its parent or subsidiary, does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a "non-
employee director" for purposes of Rule 16b-3.

     (p) "Nonstatutory Stock Option" means an Option not intended to qualify as
an Incentive Stock Option.

     (q) "Officer" means (i) prior to the Listing Date, any person designated by
the Company as an officer and (ii) from and after the Listing Date, a person who
is an officer of the Company within the meaning of Section 16 of the Exchange
Act and the rules and regulations promulgated thereunder.

     (r) "Option" means a stock option granted pursuant to the Plan.

     (s) "Option Agreement" means a written agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant.
Each Option Agreement shall be subject to the terms and conditions of the Plan.

     (t) "Optionee" means a person to whom an Option is granted pursuant to the
Plan or, if applicable, such other person who holds an outstanding Option.

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     (u) "Outside Director" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
the Treasury regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time, and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director, or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

     (v) "Plan" means this 1997 Equity Incentive Plan.

     (w) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect with respect to the Company at the time discretion is
being exercised regarding the Plan.

     (x) "Securities Act" means the Securities Act of 1933, as amended.

     (y) "Stock Award" means any right granted under the Plan, including any
Option, any stock bonus, and any right to purchase restricted stock.

     (z) "Stock Award Agreement" means a written agreement between the Company
and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant.  Each Stock Award Agreement shall be subject to
the terms and conditions of the Plan.

3.   ADMINISTRATION.

     (a) The Plan shall be administered by the Board unless and until the Board
delegates administration to a Committee, as provided in subsection 3(c).

     (b) The Board shall have the power, subject to, and within the limitations
of, the express provisions of the Plan:

         (1) To determine from time to time which of the persons eligible under
the Plan shall be granted Stock Awards; when and how each Stock Award shall be
granted; whether a Stock Award will be an Incentive Stock Option, a Nonstatutory
Stock Option, a stock bonus, a right to purchase restricted stock, or a
combination of the foregoing; the provisions of each Stock Award granted (which
need not be identical), including the time or times when a person shall be
permitted to receive stock pursuant to a Stock Award; and the number of shares
with respect to which a Stock Award shall be granted to each such person.

         (2) To construe and interpret the Plan and Stock Awards granted under
it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award

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Agreement, in a manner and to the extent it shall deem necessary or expedient to
make the Plan fully effective.

         (3) To amend the Plan or a Stock Award as provided in Section 13.

         (4) Generally, to exercise such powers and to perform such acts as the
Board deems necessary or expedient to promote the best interests of the Company
which are not in conflict with the provisions of the Plan.

     (c) The Board may delegate administration of the Plan to a committee of the
Board composed of two (2) or more members (the "Committee"), all of the members
of which Committee may be, in the discretion of the Board, Non-Employee
Directors and/or Outside Directors.  If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board, including the power to
delegate to a subcommittee of two (2) or more Outside Directors any of the
administrative powers the Committee is authorized to exercise (and references in
this Plan to the Board shall thereafter be to the Committee or such a
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board.  The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.  Additionally, prior to the Listing Date, and
notwithstanding anything to the contrary contained herein, the Board may
delegate administration of the Plan to a committee of one or more members of the
Board and the term "Committee" shall apply to any person or persons to whom such
authority has been delegated.  In addition, notwithstanding anything in this
Section 3 to the contrary, the Board or the Committee may delegate to a
committee of one or more members of the Board the authority to grant Stock
Awards to eligible persons who (x) are not then subject to Section 16 of the
Exchange Act and/or (y) are either (i) not then Covered Employees and are not
expected to be Covered Employees at the time of recognition of income resulting
from such Stock Award, or (ii) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code.

4.   SHARES SUBJECT TO THE PLAN.

     (a) Subject to the provisions of Section 12 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Stock Awards shall
not exceed in the aggregate Nine Million Seven Hundred Thousand (10,700,000)
shares of the Company's common stock. If any Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been
exercised in full, the stock not acquired under such Stock Award shall revert to
and again become available for issuance under the Plan.

     (b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

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5.   ELIGIBILITY.

     (a) Incentive Stock Options may be granted only to Employees.  Stock Awards
other than Incentive Stock Options may be granted only to Employees, Directors
or Consultants.

     (b) Prior to the Listing Date, no person shall be eligible for the grant of
an Option or an award to purchase restricted stock if, at the time of grant,
such person owns (or is deemed to own pursuant to Section 424(d) of the Code)
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or of any of its Affiliates unless the
exercise price of such Option is at least one hundred ten percent (110%) of the
Fair Market Value of such stock at the date of grant and the Option is not
exercisable after the expiration of five (5) years from the date of grant, or in
the case of a restricted stock purchase award, the purchase price is at least
one hundred percent (100%) of the Fair Market Value of such stock at the date of
grant.  From and after the Listing Date this provision shall apply only to
Incentive Stock Options.

     (c) Subject to the provisions of Section 12 relating to adjustments upon
changes in stock, no person shall be eligible to be granted Options covering
more than Five Hundred Thousand (500,000) shares of the Company's common stock
in any calendar year.  This subsection 5(c) shall not apply prior to the Listing
Date and, following the Listing Date, shall not apply until (i) the earliest of:
(A) the first material modification of the Plan (including any increase to the
number of shares reserved for issuance under the Plan in accordance with Section
4); (B) the issuance of all of the shares of common stock reserved for issuance
under the Plan; (C) the expiration of the Plan; or (D) the first meeting of
shareholders at which directors are to be elected that occurs after the close of
the third calendar year following the calendar year in which occurred the first
registration of an equity security under section 12 of the Exchange Act; or (ii)
such other date required by Section 162(m) of the Code and the rules and
regulations promulgated thereunder.

6.   OPTION PROVISIONS.

     Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate.  The provisions of separate
Options need not be identical, but each Option shall include (through
incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions:

     (a) Term.  No Option shall be exercisable after the expiration of ten (10)
years from the date it was granted.

     (b) Price.  The exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the stock
subject to the Incentive Stock Option on the date of grant; the exercise price
of each Nonstatutory Stock Option shall be not less than eighty-five percent
(85%) of the Fair Market Value of the stock subject to the Nonstatutory Stock
Option on the date of grant.  Notwithstanding the foregoing, an Option (whether
an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an
exercise price lower than that set

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forth in the preceding sentence if such Option is granted pursuant to an
assumption or substitution for another option in a manner satisfying the
provisions of Section 424(a) of the Code

     (c) Consideration.  The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board or the Committee, at the time of the grant of the
Option, (A) by delivery to the Company of other common stock of the Company, (B)
according to a deferred payment arrangement (however, in the event the Company
is then incorporated in the state of Delaware, then payment of the common
stock's "par value" as defined in the Delaware General Corporation Law shall not
be made by deferred payment), or other arrangement (which may include, without
limiting the generality of the foregoing, the use of other common stock of the
Company) with the person to whom the Option is granted or to whom the Option is
transferred pursuant to subsection 6(d), or (C) in any other form of legal
consideration that may be acceptable to the Board.  In the case of any deferred
payment arrangement, interest shall be compounded at least annually and shall be
charged at the minimum rate of interest necessary to avoid the treatment as
interest, under any applicable provisions of the Code, of any amounts other than
amounts stated to be interest under the deferred payment arrangement.

     (d) Transferability.  Prior to the Listing Date, an Option (whether an
Incentive Stock Option or a Nonstatutory Stock Option) shall not be transferable
except by will or by the laws of descent and distribution, and shall be
exercisable during the lifetime of the person to whom the Option is granted only
by such person.  From and after the Listing Date, a Nonstatutory Stock Option
may be transferable to the extent provided in the Option Agreement; provided,
however, that if the Option Agreement does not specifically provide for
transferability, then such Nonstatutory Stock Option shall not be transferable
except by will or by the laws of descent and distribution.  Notwithstanding the
foregoing, the person to whom the Option is granted may, by delivering written
notice to the Company, in a form satisfactory to the Company, designate a third
party who, in the event of the death of the Optionee, shall thereafter be
entitled to exercise the Option.

     (e) Vesting.  The total number of shares of stock subject to an Option may,
but need not, be allotted in periodic installments (which may, but need not, be
equal).  The Option Agreement may provide that from time to time during each of
such installment periods, the Option may become exercisable ("vest") with
respect to some or all of the shares allotted to that period, and may be
exercised with respect to some or all of the shares allotted to such period
and/or any prior period as to which the Option became vested but was not fully
exercised.  The Option may be subject to such other terms and conditions on the
time or times when it may be exercised (which may be based on performance or
other criteria) as the Board may deem appropriate.  Prior to the Listing Date,
the vesting provisions of individual Options may vary but in each case will
provide for vesting of at least twenty percent (20%) per year of the total
number of shares subject to the Option; provided, however, that an Option
granted to an Officer, Director or Consultant may become fully exercisable,
subject to reasonable conditions such as continued employment, at any time or
during any period established by the Company or of any of its Affiliates.  The
provisions of this subsection 6(e) are

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subject to any Option provisions governing the minimum number of shares as to
which an Option may be exercised.

     (f) Termination of Employment or Relationship as a Director or Consultant.
In the event an Optionee's Continuous Status as an Employee, Director or
Consultant terminates (other than upon the Optionee's death or disability), the
Optionee may exercise the Option (to the extent that the Optionee was entitled
to exercise it as of the date of termination) but only within such period of
time ending on the earlier of (i) the date ninety (90) days following the
termination of the Optionee's Continuous Status as an Employee, Director or
Consultant (or such longer period as specified in the Option Agreement), or (ii)
the expiration of the term of the Option as set forth in the Option Agreement.
If, at the date of termination, the Optionee is not entitled to exercise the
entire Option, the shares covered by the unexercisable portion of the Option
shall revert to and again become available for issuance under the Plan. If,
after termination, the Optionee does not exercise the Option within the time
specified in the Option Agreement, the Option shall terminate, and the shares
covered by such Option shall revert to and again become available for issuance
under the Plan.

     An Optionee's Option Agreement may also provide that if the exercise of the
Option following the termination of the Optionee's Continuous Status as an
Employee, Director, or Consultant (other than upon the Optionee's death or
disability) would result in liability under Section 16(b) of the Exchange Act,
then the Option shall terminate on the earlier of (i) the expiration of the term
of the Option set forth in the Option Agreement, or (ii) the tenth (10th) day
after the last date on which such exercise would result in such liability under
Section 16(b) of the Exchange Act.  Finally, an Optionee's Option Agreement may
also provide that if the exercise of the Option following the termination of the
Optionee's Continuous Status as an Employee, Director or Consultant (other than
upon the Optionee's death or disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in the first paragraph of this
subsection 6(f), or (ii) the expiration of a period of three (3) months after
the termination of the Optionee's Continuous Status as an Employee, Director or
Consultant during which the exercise of the Option would not be in violation of
such registration requirements.

     (g) Disability of Optionee.  In the event an Optionee's Continuous Status
as an Employee, Director or Consultant terminates as a result of the Optionee's
disability, the Optionee may exercise the Option (to the extent that the
Optionee was entitled to exercise it as of the date of termination), but only
within such period of time ending on the earlier of (i) the date twelve (12)
months following such termination (or such longer or shorter period, which prior
to the Listing Date shall not be less than six (6) months, specified in the
Option Agreement), or (ii) the expiration of the term of the Option as set forth
in the Option Agreement.  If, at the date of termination, the Optionee is not
entitled to exercise the entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan.  If, after termination,

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the Optionee does not exercise the Option within the time specified herein, the
Option shall terminate, and the shares covered by such Option shall revert to
and again become available for issuance under the Plan.

     (h) Death of Optionee.  In the event of the death of an Optionee during, or
within a period specified in the Option Agreement after the termination of, the
Optionee's Continuous Status as an Employee, Director or Consultant, the Option
may be exercised (to the extent the Optionee was entitled to exercise the Option
as of the date of death) by the Optionee's estate, by a person who acquired the
right to exercise the Option by bequest or inheritance or by a person designated
to exercise the option upon the Optionee's death pursuant to subsection 6(d),
but only within the period ending on the earlier of (i) the date eighteen (18)
months following the date of death (or such longer or shorter period, which
prior to the Listing Date shall not be less than six (6) months, specified in
the Option Agreement), or (ii) the expiration of the term of such Option as set
forth in the Option Agreement.  If, at the time of death, the Optionee was not
entitled to exercise the entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance
under the Plan. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate, and the shares covered by such
Option shall revert to and again become available for issuance under the Plan.

     (i) Early Exercise.  The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option.  Any unvested shares so
purchased may be subject to a repurchase right in favor of the Company or to any
other restriction the Board determines to be appropriate. Prior to the Listing
Date, however, any unvested shares so purchased shall be subject to a repurchase
right in favor of the Company, with the repurchase price to be equal to the
original purchase price of the stock, or to any other restriction the Board
determines to be appropriate; provided, however, that (i) the right to
repurchase at the original purchase price shall lapse at a minimum rate of
twenty percent (20%) per year over five (5) years from the date the Option was
granted, and (ii) such right shall be exercisable only within (A) the ninety
(90)-day period following the termination of employment or the relationship as a
Director or Consultant, or (B) such longer period as may be agreed to by the
Company and the Optionee (for example, for purposes of satisfying the
requirements of Section 1202(c)(3) of the Code (regarding "qualified small
business stock")), and (iii) such right shall be exercisable only for cash or
cancellation of purchase money indebtedness for the shares. Notwithstanding the
foregoing, shares received on exercise of an Option by an Officer, Director or
Consultant may be subject to additional or greater restrictions.

     (j) Right of Repurchase.  The Option may, but need not, include a provision
whereby the Company may elect, prior to the Listing Date, to repurchase all or
any part of the vested shares exercised pursuant to the Option; provided,
however, that (i) such repurchase right shall be exercisable only within (A) the
ninety (90)-day period following the termination of employment or the
relationship as a Director or Consultant (or in the case of a post-termination
exercise of the Option, the ninety (90)-day period following such post-
termination exercise), or (B) such longer

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period as may be agreed to by the Company and the Optionee (for example, for
purposes of satisfying the requirements of Section 1202(c)(3) of the Code
(regarding "qualified small business stock")), (ii) such repurchase right shall
be exercisable for less than all of the vested shares only with the Optionee's
consent, and (iii) such right shall be exercisable only for cash or cancellation
of purchase money indebtedness for the shares at a repurchase price equal to the
stock's Fair Market Value at the time of such termination. Notwithstanding the
foregoing, shares received on exercise of an Option by an Officer, Director or
Consultant may be subject to additional or greater restrictions specified in the
Option Agreement.

     (k) Right of First Refusal.  The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionee of the
intent to transfer all or any part of the shares exercised pursuant to the
Option.  Such right of first refusal shall be exercised by the Company no more
than thirty (30) days following receipt of notice of the Optionee's intent to
transfer shares and must be exercised as to all the shares the Optionee intends
to transfer unless the Optionee consents to exercise for less than all the
shares offered.  The purchase of the shares following exercise shall be
completed within thirty (30) days of the Company's receipt of notice of the
Optionee's intent to transfer shares, or such longer period of time as has been
offered by the person to whom the Optionee intends to transfer the shares, or as
may be agreed to by the Company and the Optionee (for example, for purposes of
satisfying the requirements of Section 1202(c)(3) of the Code (regarding
"qualified small business stock").

7.   TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.

     Each stock bonus or restricted stock purchase agreement shall be in such
form and shall contain such terms and conditions as the Board or the Committee
shall deem appropriate.  The terms and conditions of stock bonus or restricted
stock purchase agreements may change from time to time, and the terms and
conditions of separate agreements need not be identical, but each stock bonus or
restricted stock purchase agreement shall include (through incorporation of
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions as appropriate:

     (a) Purchase Price.  The purchase price under each restricted stock
purchase agreement shall be such amount as the Board or Committee shall
determine and designate in such Stock Award Agreement, but in no event shall the
purchase price be less than eighty-five percent (85%) of the stock's Fair Market
Value on the date such Stock Award is made.  Notwithstanding the foregoing, the
Board or the Committee may determine that eligible participants in the Plan may
be awarded stock pursuant to a stock bonus agreement in consideration for past
services actually rendered to the Company or for its benefit.

     (b) Transferability.  Rights under a stock bonus or restricted stock
purchase agreement shall be transferable only by will or the laws of descent and
distribution, so long as stock awarded under such Stock Award Agreement remains
subject to the terms of the agreement.

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     (c) Consideration.  The purchase price of stock acquired pursuant to a
stock purchase agreement shall be paid either:  (i) in cash at the time of
purchase; (ii) at the discretion of the Board or the Committee, according to a
deferred payment arrangement (however, in the event the Company is then
incorporated in the state of Delaware, then payment of the common stock's "par
value" as defined in the Delaware General Corporation Law shall not be made by
deferred payment), or other arrangement with the person to whom the stock is
sold; or (iii) in any other form of legal consideration that may be acceptable
to the Board or the Committee in its discretion.  Notwithstanding the foregoing,
the Board or the Committee to which administration of the Plan has been
delegated may award stock pursuant to a stock bonus agreement in consideration
for past services actually rendered to the Company or for its benefit.

     (d) Vesting.  Shares of stock sold or awarded under the Plan may, but need
not, be subject to a repurchase option in favor of the Company in accordance
with a vesting schedule to be determined by the Board or the Committee.  Prior
to the Listing Date, the applicable agreement shall provide (i) that the right
to repurchase at the original purchase price shall lapse at a minimum rate of
twenty percent (20%) per year over five (5) years from the date the Stock Award
was granted (except that a Stock Award granted to an Officer, Director or
Consultant may become fully vested, subject to reasonable conditions such as
continued employment, at any time or during any period established by the
Company or of any of its Affiliates), and (ii) such right shall be exercisable
only (A) within the ninety (90)-day period following the termination of
employment or the relationship as a Director or Consultant, or (B) such longer
period as may be agreed to by the Company and the holder of the Stock Award (for
example, for purposes of satisfying the requirements of Section 1202(c)(3) of
the Code (regarding "qualified small business stock")), and (iii) such right
shall be exercisable only for cash or cancellation of purchase money
indebtedness for the shares.

     (e) Termination of Employment or Relationship as a Director or Consultant.
In the event a Participant's Continuous Status as an Employee, Director or
Consultant terminates, the Company may repurchase or otherwise reacquire,
subject to the limitations described in subsection 7(d), any or all of the
shares of stock held by that person which have not vested as of the date of
termination under the terms of the stock bonus or restricted stock purchase
agreement between the Company and such person.

8.   CANCELLATION AND RE-GRANT OF OPTIONS.

     (a) The Board or the Committee shall have the authority to effect, at any
time and from time to time, (i) the repricing of any outstanding Options under
the Plan and/or (ii) with the consent of the affected holders of Options, the
cancellation of any outstanding Options under the Plan and the grant in
substitution therefor of new Options under the Plan covering the same or
different numbers of shares of stock, but having an exercise price per share not
less than eighty-five percent (85%) of the Fair Market Value (one hundred
percent (100%) of the Fair Market Value in the case of an Incentive Stock
Option) or, in the case of a 10% shareholder (as described in subsection 5(b))
receiving a new grant of an Incentive Stock Option (any Option if the
cancellation or repricing takes

                                       11
<PAGE>

place prior to the Listing Date), not less than one hundred ten percent (110%)
of the Fair Market Value) per share of stock on the new grant date.
Notwithstanding the foregoing, the Board or the Committee may grant an Option
with an exercise price lower than that set forth above if such Option is granted
as part of a transaction to which Section 424(a) of the Code applies.

     (b) Shares subject to an Option canceled under this Section 8 shall
continue to be counted against the maximum award of Options permitted to be
granted pursuant to subsection 5(c) of the Plan.  The repricing of an Option
under this Section 8, resulting in a reduction of the exercise price, shall be
deemed to be a cancellation of the original Option and the grant of a substitute
Option; in the event of such repricing, both the original and the substituted
Options shall be counted against the maximum awards of Options permitted to be
granted pursuant to subsection 5(c) of the Plan. The provisions of this
subsection 8(b) shall be applicable only to the extent required by Section
162(m) of the Code.

9.   COVENANTS OF THE COMPANY.

     (a) During the terms of the Stock Awards, the Company shall keep available
at all times the number of shares of stock required to satisfy such Stock
Awards.

     (b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the Stock Award; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act either the Plan, any Stock Award or any stock issued or
issuable pursuant to any such Stock Award.  If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such Stock Awards
unless and until such authority is obtained.

10.  USE OF PROCEEDS FROM STOCK.

     Proceeds from the sale of stock pursuant to Stock Awards shall constitute
general funds of the Company.

11.  MISCELLANEOUS.

     (a) The Board shall have the power to accelerate the time at which a Stock
Award may first be exercised or the time during which a Stock Award or any part
thereof will vest pursuant to subsection 6(e) or 7(d), notwithstanding the
provisions in the Stock Award stating the time at which it may first be
exercised or the time during which it will vest.

     (b) Neither an Employee, Director or Consultant nor any person to whom a
Stock Award is transferred under subsection 6(d) or 7(b) shall be deemed to be
the holder of, or to have any of the

                                       12
<PAGE>

rights of a holder with respect to, any shares subject to such Stock Award
unless and until such person has satisfied all requirements for exercise of the
Stock Award pursuant to its terms.

     (c) Throughout the term of any Stock Award, the Company shall deliver to
the holder of such Stock Award, not later than one hundred twenty (120) days
after the close of each of the Company's fiscal years during the term of such
Stock Award, a balance sheet and an income statement.  This subsection shall not
apply (i) after the Listing Date, or (ii) when issuance is limited to key
employees whose duties in connection with the Company assure them access to
equivalent information.

     (d) Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Employee, Director, Consultant or other
holder of Stock Awards any right to continue in the employ of the Company or any
Affiliate (or to continue serving as a Director or Consultant) or shall affect
the right of the Company or any Affiliate to terminate the employment of any
Employee with or without cause, the right of the Company's Board of Directors
and/or the Company's shareholders to remove any Director as provided in the
Company's Bylaws and the provisions of the applicable laws of the Company's
state of incorporation, or the right to terminate the relationship of any
Consultant subject to the terms of such Consultant's agreement with the Company
or any Affiliate.

     (e) To the extent that the aggregate Fair Market Value (determined at the
time of grant) of stock with respect to which Incentive Stock Options are
exercisable for the first time by any Optionee during any calendar year under
the Plan and all other stock plans of the Company and its Affiliates exceeds one
hundred thousand dollars ($100,000), the Options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be
treated as Nonstatutory Stock Options.

     (f) The Company may require any person to whom a Stock Award is granted, or
any person to whom a Stock Award is transferred pursuant to subsection 6(d) or
7(b), as a condition of exercising or acquiring stock under any Stock Award, (1)
to give written assurances satisfactory to the Company as to such person's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters, and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (2) to
give written assurances satisfactory to the Company stating that such person is
acquiring the stock subject to the Stock Award for such person's own account and
not with any present intention of selling or otherwise distributing the stock.
The foregoing requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (i) the issuance of the shares upon the
exercise or acquisition of stock under the Stock Award has been registered under
a then currently effective registration statement under the Securities Act, or
(ii) as to any particular requirement, a determination is made by counsel for
the Company that such requirement need not be met in the circumstances under the
then applicable securities laws.  The Company may, upon advice of counsel to the
Company, place legends on stock certificates issued under the Plan as such

                                       13
<PAGE>

counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the transfer
of the stock.

     (g) To the extent provided by the terms of a Stock Award Agreement, the
person to whom a Stock Award is granted may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of stock
under a Stock Award by any of the following means or by a combination of such
means:  (1) tendering a cash payment; (2) authorizing the Company to withhold
shares from the shares of the common stock otherwise issuable to the participant
as a result of the exercise or acquisition of stock under the Stock Award; or
(3) delivering to the Company owned and unencumbered shares of Company common
stock.

12.  ADJUSTMENTS UPON CHANGES IN STOCK.

     (a) If any change is made in the stock subject to the Plan, or subject to
any Stock Award (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the type(s) and maximum number of securities subject to the Plan
pursuant to subsection 4(a) and the maximum number of securities subject to
award to any person during any calendar year pursuant to subsection 5(c), and
the outstanding Stock Awards will be appropriately adjusted in the type(s) and
number of securities and price per share of stock subject to such outstanding
Stock Awards. Such adjustments shall be made by the Board or the Committee, the
determination of which shall be final, binding and conclusive.  (The conversion
of any convertible securities of the Company shall not be treated as a
"transaction not involving the receipt of consideration by the Company.")

     (b) In the event of a Change in Control (as defined herein):  (i) any
surviving corporation or acquiring corporation shall assume any Stock Awards
outstanding under the Plan or shall substitute similar stock awards (including
an award to acquire the same consideration paid to the shareholders in a Change
in Control) for those outstanding under the Plan, or (ii) in the event any
surviving corporation or acquiring corporation refuses to assume such Stock
Awards or to substitute similar stock awards for those outstanding under the
Plan, (A) with respect to Stock Awards held by persons then performing services
as Employees, Directors or Consultants (and subject to any applicable provisions
of the California Corporate Securities Law of 1968 and related regulations), the
vesting (and, if applicable, the exercisability) of such Stock Awards shall be
accelerated prior to such event and the Stock Awards terminated if not exercised
at or prior to such event, and (B) with respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall be terminated if not
exercised prior to such event.

     (c) For purposes of the Plan, a "Change in Control" shall mean:  (1) a
dissolution, liquidation or sale of all or substantially all of the assets of
the Company; (2) a merger or consolidation in which the Company is not the
surviving corporation; (3) a reverse merger in which the Company is the
surviving corporation but the shares of the Company's common stock

                                       14
<PAGE>

outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise; or (4) from and after the Listing Date, the acquisition by any
person, entity or group within the meaning of Section 13(d) or 14(d) of the
Exchange Act, or any comparable successor provisions (excluding any employee
benefit plan, or related trust, sponsored or maintained by the Company or any
Affiliate of the Company) of the beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of
securities of the Company representing at least fifty percent (50%) of the
combined voting power entitled to vote in the election of directors.

13.  AMENDMENT OF THE PLAN AND STOCK AWARDS.

     (a) The Board at any time, and from time to time, may amend the Plan.
However, except as provided in Section 12 relating to adjustments upon changes
in stock, no amendment shall be effective unless approved by the shareholders of
the Company to the extent shareholder approval is necessary for the Plan to
satisfy the requirements of Section 422 of the Code, Rule 16b-3 under the
Exchange Act or any Nasdaq or securities exchange listing requirements.

     (b) The Board may in its sole discretion submit any other amendment to the
Plan for shareholder approval, including, but not limited to, amendments to the
Plan intended to satisfy the requirements of Section 162(m) of the Code and the
regulations promulgated thereunder regarding the exclusion of performance-based
compensation from the limit on corporate deductibility of compensation paid to
certain executive officers.

     (c) It is expressly contemplated that the Board may amend the Plan in any
respect the Board deems necessary or advisable to provide eligible Employees
with the maximum benefits provided or to be provided under the provisions of the
Code and the regulations promulgated thereunder relating to Incentive Stock
Options and/or to bring the Plan and/or Incentive Stock Options granted under it
into compliance therewith.

     (d) Rights and obligations under any Stock Award granted before amendment
of the Plan shall not be impaired by any amendment of the Plan unless (i) the
Company requests the consent of the person to whom the Stock Award was granted
and (ii) such person consents in writing.

     (e) The Board at any time, and from time to time, may amend the terms of
any one or more Stock Award; provided, however, that the rights and obligations
under any Stock Award shall not be impaired by any such amendment unless (i) the
Company requests the consent of the person to whom the Stock Award was granted
and (ii) such person consents in writing.

14.  TERMINATION OR SUSPENSION OF THE PLAN.

     (a) The Board may suspend or terminate the Plan at any time.  Unless sooner
terminated, the Plan shall terminate on June 29, 2007, which is the day prior to
the tenth anniversary of the date the Plan was adopted by the Board or approved
by the shareholders of the Company, whichever is

                                       15
<PAGE>

earlier. No Stock Awards may be granted under the Plan while the Plan is
suspended or after it is terminated.

     (b) Rights and obligations under any Stock Award granted while the Plan is
in effect shall not be impaired by suspension or termination of the Plan, except
with the written consent of the person to whom the Stock Award was granted.

15.  EFFECTIVE DATE OF PLAN.

     The Plan shall become effective as determined by the Board, but no Stock
Awards granted under the Plan shall be exercised unless and until the Plan has
been approved by the shareholders of the Company, which approval shall be within
twelve (12) months before or after the date the Plan is adopted by the Board,
and, if required, the Stock Awards have been qualified or exempted from
qualification under the laws of the State of California.

                                       16REAL ESTATE SALE & CONTRACT

         This Contract,  entered into as of the "Effective Date" (as defined, in
Section 26.G.) by and between ROYAL PALM BEACH COLONY,  LIMITED  PARTNERSHIP,  a
Delaware limited partnership ("Seller"), and STEWART MARCUS, TRUSTEE ("Buyer").

                              W I T N E S S E T H:

         In  consideration  of the mutual  covenants  and  agreements  contained
herein,  Ten and No/100's  ($10.00)  Dollars paid by each of the parties here to
the  other,  and  other  good  and  valuable  consideration,   the  receipt  and
sufficiency of which are hereby  acknowledged,  Seller and Buyer hereby agree as
follows:

        1.   Description  of Property.  The property  being sold and conveyed to
Buyer  (the  "Property")  is  described  on  Exhibit  "A"  attached  hereto  and
incorporated herein by reference, consisting of approximately 20.82 +/- acres in
the Village of Royal Palm Beach, Palm Beach County, Florida.

        2.   Purchase  Price.  The  purchase  price  for the  Property  shall be
$1,683,000.00 (the "Purchase Price"), subject to the adjustments and credits set
forth  in this  Contract,  shall  be  payable  in  immediately  available  funds
satisfactory to Seller at Closing.

        3.  Deposit.  The term  "Deposit"  shall be deemed to mean and include a
$25,000.00 check (the "Deposit")  payable and delivered to Martin Shapiro,  Esq.
("Escrow  Agent") with  execution of this Contract by Buyer and Seller.  If this
Contract is not terminated  pursuant to Section 12, then on or before 6:00 p.m.,
Florida time on the last day of the  Inspection  Period,  Buyer shall deliver to
Escrow  Agent a second check in the amount of  $25,000.00  as an addition to the
initial Deposit of $25,000.00 for a total Deposit of $50,000.00.  If Buyer fails
to deliver the  addition  to the Deposit  before  expiration  of the  Inspection
Period,  it will be .deemed to have elected to terminate this Contract  pursuant
to Section 12 and the Deposit shall be promptly  returned to Buyer.  The Deposit
is part of the Purchase Price and shall be delivered to Seller at Closing.

        4. Closing.

           1. If Buyer  does not elect to terminate  this  Contract pursuant  to
Section 12, Buyer agrees to complete the Closing not later than thirty (30) days
after Buyer has obtained Site Plan  Approval,  Development  Permits and Building
Permits, for the Project (the terms Site Plan Approval,  Development Permits and
Building Permits being defined in Paragraph 13 hereof, and collectively referred
to herein as "Approvals  and  Permits").  Buyer shall have a period of up to ten
(10)  months  after the  Effective  Date in which to obtain  the  Approvals  and
Permits.

           2. If Buyer has been diligently pursuing the receipt of the approvals
and Permits but has not obtained  them by the date of Closing,  then Buyer shall
be entitled to two (2)  successive  thirty (30)  extensions  of the Closing.  In
order to obtain each thirty (30)  extension,  the Buyer will  provide the Seller
with five (5) days,  prior written  notice of its election to extend the Closing
for thirty (30) days, which notice shall be accompanied by the payment to Seller

of the sum of $25,000.00  (fox each  extension).  Upon closing,  one-half of the
amount paid to extend the Closing shall be credited  against the Purchase Price.
The remaining  one-half shall not be credited  against the Purchase  Price.  The
$25,000.00  payment(s)  described  herein are refundable to Buyer only if Seller
defaults  under this  Agreement.  Otherwise they shall be retained by Seller and
one-half of each payment shall he credited  against the Purchase  Price.  During
any extension  period,  Buyer will continue to diligently  pursue the receipt of
the Approvals and Permits.

           3. If Buyer fails to close after having  obtained the  Approvals  and
Permits within the aforesaid period of time, the Deposit Shall be non-refundable
and released to Seller,  unless the failure of this  transaction to close is due
to Seller's default or inability to timely deliver good title to the Property or
pursuant to Sections 14 or 25.

        5. Title.

           1.  Within 30 days after the  expiration  of the  Inspection  Period,
Buyer  shall  have a Title  Company  issue a Title  commitment  to Buyer for the
Property.

           2. Buyer shall have 20 days after receipt of the Title  Commitment in
which to notify Seller of any objections Buyer has to the condition of title. In
determining the  acceptability of title, the Uniform Title Standards adopted and
published by the Real Property, Probate and Trust Law Section of the Florida Bar
shall  apply.  In the event title is found to be  defective  in any  .particular
whatsoever which renders title  unmarketable or uninsurable,  or which adversely
affects  Buyer's  intended  development  of the Property,  Seller  covenants and
agrees that Seller will use  diligent  effort to correct all  defect(s) in title
excluding  bringing  suit.  If  Seller is  unsuccessful  in  removing  all title
defect(s) within 90 days after receipt of title objections, Buyer shall have the
option of either: (i) accepting the title as it then is with the right to deduct
from the cash to close,  liens or encumbrances of an  ascertainable  amount (ii)
receiving a full and prompt  refund of the deposit,  together with any extension
fees or postponement  fees paid by Buyer pursuant to Section 4, whereupon Buyer,
Seller and Escrow Agent shall be released of all further  obligations under this
Contract.

           3.  Buyer  shall  cause  Title  Company  to  issue an  updated  Title
Commitment  for the  Property.  If the  update  contains  any  new or  different
conditions of title than the original Title Commitment, and such conditions have
not been approved by Buyer in accordance  with this  Contract,  Buyer shall have
the right to object to such now or  different  conditions  prior to Closing.  If
Buyer so Objects, the Closing shall be postponed,  and Seller shall have 10 days
after receipt of Buyer's new title objections in which to cure the objections to
Buyer's  satisfaction,  failing which, Buyer shall have the options described in
SubSection 5.B. Buyer shall pay the cost of title insurance.

           4. Seller shall not enter into any agreements, written or oral, which
would affect title to the Property  without the prior written  consent of Buyer.
Notwithstanding any of the other terms of this Section, Seller shall deliver the
Property free and clear of all reverter  clauses and  reservations for drainage,
phosphate,  mineral, metals, petroleum and road rights-of-way,  whether in favor
of an individual or governmental unit.

                                       2
<PAGE>

        6.  Survey.  Buyer  shall  have  30 days  after  the  expiration  of the
Inspection  Period  in which  to have a survey  of the  Property  prepared  by a
registered   Florida   surveyor  at  its  expense.   If  the  survey   discloses
encroachments  on  the  Property  or  that  improvements   thereon  encroach  on
easements,  lands of others, or violate any restrictions,  Contract covenants or
applicable governmental regulations, the same shall constitute a title objection
under Section 5. Seller shall provide to the Buyer a copy of any existing survey
in the Seller's possession.

        7. Right of Entry.  From the Effective Date until  Closing,  Buyer shall
have  reasonable  access to the Property  for the purpose of making  engineering
studies,  borings and for any and all acts necessary to ascertain the fitness of
the Property for Buyer's  intended use.  Buyer shall restore the Property to the
condition  it was in prior to the  exercise  of its right of entry to tho extent
its said  exercise  shall  have  disturbed  the  same.  Buyer  hereby  agrees to
indemnify  Seller and hold Seller harmless from and against all claims,  losses,
expenses, demands, and liability, including, but not limited to, attorneys, fees
and expenses incurred prior to trial, at trial and on appeal, for nonpayment for
services rendered to Buyer, for constructions liens, or for damage to persons or
property  arising out of Buyer's  investigation  of or entry onto the  Property.
This   indemnification   and  agreement  to  hold  harmless  shall  survive  the
termination or Closing of this  Contract.  Buyer shall notify Seller or Seller's
attorney in advance of any entity or  individual  entering  upon the Property to
exercise ouch riot of entry.

        8. Possession.  Seller shall deliver full possession of the .Property at
Closing.

        9.  Assignment.  Buyer may not  assign  its  interest  in this  Contract
without the prior  written  consent of Seller  which  shall not he  unreasonably
withheld.  Notwithstanding  the foregoing,  Buyer shall have the right to assign
this  Contract  without  Seller's  Consent  to an entity in which a  controlling
interest is owned by Buyer and/or any  beneficiaries of the trust of which Buyer
is the Trustee.

        10.  Maintenance.  Between the  Effective  Date and Closing the Property
shall be  Maintained  by Seller in the  condition  in which it existed as of the
Effective  Date.  Buyer shall have access to the Property at any reasonable time
prior to Closing to determine that the Property is properly Maintained.

        11. Seller's  Representations  and Warranties.  Seller hereby represents
and  warrants to Buyer as of the  Effective  Date and as of the Closing  Date as
follows:

           1.  Seller  has full right and is duly  authorized  to enter into and
consummate this Contract.

           2. Seller has complied with all applicable Federal, State, County and
Municipal regulations,  rules,  ordinances,  statutes and other requirements and
restrictions with respect to all matters relating or pertaining to the Property.

                                       3
<PAGE>

           3. There are no parties in possession,  or entitled to possession, of
the  Property  (or any part  thereof)  other than Seller and the Property is not
subject to any lease,  such that Seller shall deliver sole and exclusive use and
possession of the Property to Buyer at Closing.

           4. There in no litigation, investigation or proceeding pending, or to
the knowledge of Seller threatened,  against Seller relating to or affecting the
Property  or  otherwise  adversely  affecting  Seller's  ability to perform  its
obligations hereunder,

           5. There are no  commitments to or agreements  with any  governmental
authorities,  agencies,  utilities or  quasi-governmental  entities or any other
entities or persons  which might  adversely  affect  Buyer's  ability to use and
develop the Property, except as specifically set forth herein.

           6.  To  the  best  of   Seller's   knowledge,   without   a  duty  of
investigation,  the Property has not in the past been used, and is not presently
being used and will not in the future  (for so long as Seller owns same) be used
for the  handling,  storage,  transportation  or disposal of  hazardous or toxic
materials, and Seller has not received a summons, citation, directive, letter or
other  communications,  written or oral,  from any agency or  department  of the
State  of  Florida  or  the  U.S.  Government   concerning  any  intentional  or
unintentional  action or omission  which  resulted in the  releasing,  spilling,
leaking, pumping, pouring,  emitting,  emptying or dumping of hazardous material
on the  Property or on the real  Property  adjoining  and/or  contiguous  to the
Property.

           7. Seller is not in default with respect to any of its obligations or
liabilities  pertaining to the  Property,  which could not be cured on or before
the Closing,

           8. Seller has not entered into any other existing  agreements for the
sale,  conveyance,  assignment or other  transfer of the Property or any part of
it.

           9. To the best of Seller's knowledge no condemnation proceeding under
the right of eminent domain is currently pending or threatened which affects the
Property or any part thereof.

           10.  Seller  has no  knowledge  of any  plan,  study or effort by any
governmental  agency or  authority,  to widen,  modify or realign  any street or
highway providing direct access to the Property.

           11.  There are no  contracts  for  labor or  services  affecting  the
Property.

           12. The  Property  shall he free of all zoning  code  violations  and
Seller has not received any notice of any such violations.

           13.  Seller has not received any notice from or regarding  and Seller
has no knowledge of any fact that could give rise to the possible or anticipated
revocation,  non-renewal  or  disapproval  of any  existing  licenses,  permits,
registrations or approvals pertaining to the Real Property, or that might impair
Buyer's  right to obtain the permits with respect to the Real  Property.  Seller

                                       4
<PAGE>

will reasonably  cooperate with Buyer in any effort of Buyer to obtain,  for the
Real Property,  any public agency permitting  desired by Buyer, at no expense to
Seller.

           14.  Seller  shall not take any  action,  or omit to take any action,
which  action  or  omission  would  have  the  effect  of  violating  any of the
representations and warranties of Seller contained in this Contract.

        12. Investigation Period.

           1.  Buyer  shall  have 90 days  from the  Effective  Date to  perform
investigations  at its own  expense  to  satisfy  itself  that the  Property  is
suitable for its intended use. Without limiting the generality of the foregoing,
Buyer's right of investigation and inspection shall include making environmental
surveys,  maps, .contour studies,  engineering studies, test borings, soil test,
water studies,  obtaining a commitment  for  financing,  obtaining and reviewing
sketches of survey, reviewing title, reports from engineers,  documentation with
regard to the availability of utility  services,  zoning, a review of zoning and
land use regulation,  documentation with regard to the availability of municipal
services  and  meeting  with  such  governmental  agencies  as  it  should  deem
appropriate.

           2. If  Buyer  should  determine  in its sole  discretion  and for any
reason that Buyer is no longer interested in purchasing the Property,  Buyer may
cancel this Contract by delivering to Seller no later than 5:00 p.m. on the last
day of the  Investigation  Period  written  notice of its  intention  to cancel,
whereupon  the Deposit  shall be paid to Buyer and all  parties  released of all
further  obligations  under this Contract,  except for the  obligations of Buyer
described in Section 7 which shall survive termination of this Contract.

        13. Site Plan Approval; Development Permits; Building Permits.

           1. The term  "Site Plan  Approval"  as used  herein  shall mean final
approval  of a site plan by the Village of Royal Palm Beach for  development  of
the Property with up to 187 multi-family dwelling units with associated streets,
parking  areas,  driveways,   drainage  structures,  ponds  and  easements  (the
"Project").

           2. Within 30 days after the expiration of the  Investigation  Period,
and  provided  Buyer has not  terminated  this  Contract,  Buyer  will  submit a
preliminary  site  plan to the  village  of Royal  Palm  Beach  (and  any  other
governmental  agencies  having  jurisdictions)  depicting the Project,  and will
thereafter  diligently and continuously  pursue obtaining Site Plan Approval for
the Project. Buyer shall be responsible for any and all expenses attributable to
Site Plan Approval.  Seller will  reasonably  and timely  cooperate with Buyer's
efforts to obtain Site Plan Approval,  including joinder in applications.  Every
30 days after submission of the preliminary site plan, Buyer will provide Seller
with a written status report on the progress of obtaining Site Plan Approval.

           3. The term  "Development  Permits"  as used  herein  shall  mean all
approvals  that  must be  officially  issued  or  rendered  by any  governmental
authority having  jurisdiction over the Property before Buyer can lawfully begin
construction of the Subdivision Improvements,  including without limitation, all

                                       5
<PAGE>

approvals and permits required by the U.S. Environmental Protection Agency, U.S.
Corps.  of Engineers,  Florida  Department of  Environmental  Protection,  South
Florida Water Management  District,  Palm Beach County, and the Village of Royal
Palm Beach.  The term  "Subdivision  Improvements" as used herein shall mean the
interior streets, storm water management structures,  storm sewers, water lines,
sanitary sewers and electric lines necessary for  construction  and occupancy of
the Project.

           4. Buyer shall apply for, and diligently  seek,  seek issuance of all
Development  Permits  necessary  for the  construction  or  installation  of the
Subdivision Improvements for the Project. Buyer shall be responsible for any and
all expenses  attributable to the Developments  Permits.  Seller will reasonably
and timely cooperate with Buyer's efforts to obtain Development Permits.

           5.  The  term  "Building  Permits',  as used  herein  shall  mean all
approvals  that  must be  officially  issued  or  rendered  by any  governmental
authority having  jurisdiction over the Property before Buyer can lawfully begin
construction of the  multi-family  dwelling units  authorized under the Approved
Site Plan.

           6. Buyer  shall  apply  for,  and  diligently  seek  issuance  of the
Building  Permits.   Buyer  shall  be  responsible  for  any  and  all  expenses
attributable  to  the  Building  Permits.  Seller  will  reasonably  and  timely
cooperate with Buyer's efforts to obtain Building Permits.

           7. The terms Site Plan  Approval,  Development  Permits and  Building
Permits  shall also be deemed to include any and all other permits and approvals
of  governmental  authorities  having  jurisdiction  as may be necessary for the
development and construction of the Project.

           8. If the Approvals and Permits are not obtained within the period of
time set forth in  Paragraph  4, then Buyer shall have the right to either:  (a)
waive any  Approvals or Permits and complete  the purchase by  consummating  the
Closing;  or (b) terminate  this  Contract,  in which event the Deposit shall be
returned to Buyer.

        14.  Moratoria.  If, at the time of  closing,  there are  sewer,  water,
building or other  moratoria in effect which would  interfere with the immediate
construction and occupancy of the Project,  then Buyer, at its sole option, may:
(i) close the  transaction  without regard to the moratoria;  or (ii) extend the
closing  for up to ninety  (90)  days.  If at the end of the  90-day  period the
moratorium  has not been removed,  Buyer may elect to terminate the Contract and
obtain a refund of the Deposit, together with any extension fees or postponement
fees paid by Buyer  pursuant  to  Section  4,  whereupon  the  parties  shall be
relieved  from  all  further  liabilities  and  obligations  hereunder.  If  the
moratorium is lifted within the 90 day extension period,  then the closing shall
take place within 30 days after the date that the moratorium is lifted.

        15.  Conditions to the Obligations of Buyer.  The obligation of Buyer to
Close is subject to the satisfaction

by the Closing Date each of the following conditions:

           1. Buyer has obtained the Permits and Approvals for the Project.

                                       6
<PAGE>

           2. The representations, warranties and agreements of Seller set forth
and incorporated herein shall be true in all respects.

           3. Seller shall have performed all of its obligations hereunder to be
performed on or prior to the dates herein specified.

           4.  There  shall  have  been no  material  or  adverse  change in the
condition of the Property  which would prevent or impede the  development of the
Property in accordance with the current zoning of the Property.

         Should the foregoing  conditions  precedent not have been  satisfied by
closing,  or not waived by Buyer,  then and in that event this transaction shall
at the  election  of Buyer be null and void all of the parties  hereto  shall bo
relieved of all  obligations  to each other,  and the Deposit shall be forthwith
returned to Buyer.  The  foregoing  conditions  precedent  are for the exclusive
benefit of Buyer and may be waived by it.

        16. Closing.

           1. This transaction  shall be closed  ("Closing") and all instruments
of conveyance  delivered on the date ("Closing  Date")  determined in accordance
with Section 4. Closing  shall take place in the office of the title  insurer an
determined  pursuant  to  paragraph  4 above  or at  another  location  which is
mutually agreeable to Seller and Buyer.

           2. Title to the Property shall be conveyed by statutory warranty deed
("Deed")  subject to real estate taxes and  assessments  for the year of Closing
and to unobjectionable title matters described in Section 5.

        17. Closing Charges and Procedures.

           1. Seller  shall pay the cost of state and local  transfer  taxes and
documentary  stamps  on the Deed and the cost of  obtaining  and  recording  any
corrective instruments. Buyer shall pay the cost of recording the Deed.

           2. Real estate  taxes shall be prorated on the Closing  Date based on
amounts for the current year with maximum discount taken,  except if tax amounts
for the current year are not available,  prorations shall be made based upon the
taxes for the preceding  year, with maximum  discount  taken.  Any tax proration
based on an estimate  may at the request of either  party  hereto be  readjusted
upon receipt of the tax bill.

           3. Certified  municipal  liens and pending  municipal liens for which
work  has  been  substantially  completed  shall  be paid by  Seller;  provided,
however, that Buyer shall be exclusively responsible for payment of any liens or
assessments arising from its use of the Property.

                                       7
<PAGE>

           4. All other items  required by any other  provision of this Contract
shall be prorated or adjusted as of the Closing Date.

           5.  Seller  shall  furnish  the Deed,  construction  lien  affidavit,
possession  affidavit and FIRPTA  affidavit and  corrective  instruments.  Buyer
shall furnish the closing  statement.  Each party shall submit copies of closing
documents  prepared by it to the other party or its  attorney at least five days
prior to the Closing Date.

        18. Availability of Utilities.  Within the Investigation  Period,  Buyer
shall  determine:  (a) if it will be able to obtain water,  sewer,  electricity,
natural  gas,  cable  television  and  telephone  service  to  the  Property  in
sufficient  size and  capacity  to  provide  service to the 187  dwelling  units
intended for the Property;  and (b) the cost required to bring such utilities to
the Property.

        19.  Concurrency.  Seller  hereby  warrants and  represents to Buyer the
Seller already has received 187 units of traffic  concurrency  for the Property,
all of which shall be transferred to Buyer not later than Closing, at no expense
to Buyer.

        20. Escrow. The party acting as Escrow Agent is authorized and agrees to
hold the Deposit in escrow in accordance  with the terms and  conditions of this
Contract.  Any interest earned on the Deposit is paid to the Florida Bar. Checks
issued for the Deposit will be  deposited  promptly  for  clearance.  The Escrow
Agent shall not be held  responsible for nonpayment of checks  received.  In the
event  Escrow  Agent is in doubt as to its  duties  and  liabilities  under  the
provisions of the Agreement,  it may in its sole discretion continue to hold the
monies which are the subject of the escrow until Buyer and Seller mutually agree
to the  disbursement  thereof,  or  until a  judgment  of a court  of  competent
jurisdiction  shall  determine  the  rights of the  parties  thereto,  or it may
deposit all the monies then held in escrow  pursuant to this  Agreement with the
clerk of the court having  jurisdiction  of the dispute,  and upon notifying all
parties  concerned of such action,  all  liability on its part shall fully cease
and  terminate  except to the extent of  accounting  for any monies  theretofore
delivered  out of  escrow.  In the event of any suit  between  Buyer and  Seller
wherein  the  Escrow  Agent is made a party by virtue of acting as escrow  agent
hereunder or in the event of any suit wherein the Escrow Agent  interpleads  the
subject  matter of the  escrow,  it shall be  entitled  to recover a  reasonable
attorneys,  fee and  costs  incurred,  said  fees and  costs to be  charged  and
assessed as court costs in favor of the prevailing party. All parties agree that
the  Escrow  Agent  shall not be liable  to any  party or person  whosoever  for
misdelivery  to Buyer or Seller of monies  subject to the  escrow,  unless  such
misdelivery  shall be due to willful breach of the Agreement or gross negligence
on its part.

        21.  Failure of  Performance.  If Buyer fails to perform  this  Contract
within  the time  specified,  the  Deposit  paid by Buyer and agreed to be paid,
shall be  retained  by or for the  account of Seller as agreed  upon  liquidated
damages,  consideration in the execution of this Contract and in full settlement
of any claims,  whereupon  Buyer and Seller shall be relieved of all obligations
under this  Contract.  If for any reason  other than failure of Seller to timely
deliver good title, Seller fails,  neglects or refuses to perform this Contract,
the  Buyer may seek  specific  performance  or elect to  receive  the  return of
Buyer's Deposit, as Buyer's sole and exclusive remedy.

                                       8
<PAGE>

        22.  Attorney's Fees;  Costs. In the event of any litigation to enforce,
interpret,  or  arising  out of this  Contract,  the  prevailing  party  in such
litigation  shall be entitled to an award of its reasonable  attorneys' fees and
costs,  through  and  including  any  appellate  litigation  and post  judgement
proceedings.

        23. Notices. Unless hand delivered, any notice required or made pursuant
to this  Contract  shall be in writing and deemed given upon being  deposited in
the  United  States  mail by  certified  mail,  return  receipt  requested  with
sufficient  postage affixed  therefor and addressed as follows (or at such other
address as the addresses may from time to time advise in writing):

                           To Seller:
                           Royal Palm Beach Colony, Limited Partnership
                           Attn.: Randy Rieger
                           2501 South Ocean Drive
                           Hollywood, Florida 33019
                           Fax. No. 954-927-3081

                           with copy to:
                           Martin Shapiro, Esq.
                           767 Arthur Godfrey Road
                           Miami Beach, FL 33140
                           Fax: 305-538-0419

                           To Buyer:
                           Stewart Marcus, Trustee
                           3225 Aviation Avenue #700
                           Miami, Florida 33133
                           Fax:

                           with copy to:

        24.  Broker.  Seller  has  entered  into a separate  agreement  with RTL
Realty,  Florida  licensed real estate broker,  for payment of commissions  upon
Closing. Seller shall be exclusively responsible for Payment of such commissions
due said broker.  Seller and Buyer each Warrant to the other that no real estate
broker or agent,  other than as identified herein, has been used or consulted in
connection with the purchase and Sale of the Property. Each covenants and agrees
to defend,  indemnify and save the other  harmless from and against any actions,
damages,  real  estate  commissions,  fees,  costs  and/or  expenses  (including
reasonable  attorneys' fees),  resulting or arising from any commissions,  fees,
costs and/or  expenses due to any real estate  brokers or agents,  other than as
identified  herein,  because of the  purchase  and sale of the  Property and the
execution  and delivery of this  Contracts  due to the acts of the  indemnifying
party.

                                       9
<PAGE>

        25.  Condemnation.  At any time  prior to  Closing,  should (i) title of
possession of any part of the Property he taken by condemnation  proceeding,  or
(ii) any such proceeding become pending or threatened, or should Seller or buyer
receive notice that such a proceeding is pending or  threatened,  then Buyer may
declare this Contract  terminated and receive the return of the Deposit together
with any extension fee or postponement  fee paid by Buyer pursuant to Section 4,
within five (5) days after written notice by Buyer to Escrow Agent. In the event
Buyer  elects not to  terminate  this  Contract,  then the payment of all awards
and/or  compensation  made on account of any taking by eminent domain and/or the
proceeds of any sale of all or any part of the Property,  either under threat of
or while the condemnation proceeding is pending, shall be paid to and become the
property of Buyer.

        26. Miscellaneous.

           1. This contract  shall be construed in  accordance  with the laws of
the State of Florida. This Contract shall not be construed-more strongly against
either party regardless of which party is responsible for its preparation.

           2. Time is of the essence in the performance of all obligations under
this Contract.

           3.  This  Contract  contains  all  the  terms,  promises,  covenants,
conditions and representations made by or entered into by and between Seller and
Buyer,  and supersedes all prior  discussions and agreements  whether written or
oral.

           4. This  Contract  shall inure to the benefit of and be binding  upon
the permitted successors and assigns of the parties.

           5. If any portion of this  Contract is  determined to be unlawful the
remaining  portions  shall  remain in full force and effect as if such  unlawful
portion(a) did not appear herein.

           6. The Captions and titles of the various paragraphs in this Contract
are for convenience  and reference only and in no way define,  limit or describe
the scope or intent of this Contract, nor in any way affect this Contract.

           7.  For  purposes  of  performance,  the date of this  Contract  (the
"Effective  Date")  shall be the date  when the last  party,  (excluding  Escrow
Agent) executes this Contract.

           8. Buyer shall not record this  Contract  or any  memorandum  of this
Contract.

           9. No  modification  or  amendment of this  Contract  shall be of any
force or effect unless in writing executed by both Seller and Buyer.

           10. This Contract may be executed in any number of counterparts,  any
one and all of which shall  constitute  the  Contract of the parties and each of
which shall be deemed an original.

                                       10
<PAGE>

        27. Radon Gas. Radon is a naturally occurring  radioactive gas that when
accumulated  in a building in sufficient  quantities may present health risks tp
persons who are exposed to it over time. Levels of radon that exceed federal and
state guidelines have been found in buildings in Florida. Additional information
regarding  Radon or radon testing may he obtained from your County public health
unit.

         IN WITNESS  WHEREOF,  the parties have executed this Contract as of the
date last written below.

                                    SELLER:

                                    ROYAL PALM BEACH COLONY,
                                    LIMITED PARTNERSHIP

                                    By: STEIN MANAGEMENT COMPANY, INC.,
                                        as Managing GeneralPartner

                                    By: /s/ Randy Rieger
                                        -----------------------
                                        Randy Rieger, as its
                                        Authorized Agent

                                    Date:       December 11        , 2000
                                         --------------------------

                                    BUYER:

                                         /s/ Stuart Mareus, Trustee
                                    ------------------------------------
                                    STEWART MARCUS TRUSTEE

                                    Date:     December 11          , 2000
                                         --------------------------

                         ACKNOWLEDGMENT OF ESCROW AGENT

         Escrow Agent hereby acknowledges  receipt from the Buyer of the Deposit
in the sum of $25,000.00  which is to be presented for payment  immediately upon
receipt of written  advice  that the  Agreement  has been fully  executed by the
parties and the proceeds  thereof are to be held by the undersigned  pursuant to
all the  provisions  of the  Contract.  Receipt  of all  checks  is  subject  to
clearance.

                                           -----------------------------------
                                           Martin Shapiro, Esq. Escrow Account

                                       11

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