Document:

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                                                                   EXHIBIT 10.24

                               FLIR SYSTEMS, INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                EFFECTIVE DATE:

                                JANUARY 1, 2001

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            FLIR SYSTEMS, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

     This FLIR Systems, Inc. Supplemental Executive Retirement Plan is adopted
effective January 1, 2001. The Plan is intended to promote the best interests of
the Company by enabling the Company to retain in its employ those key employees
who have materially contributed to the success of the business through their
outstanding efforts, and to attract persons of outstanding ability to its key
management positions. Throughout the Plan, the term "Company" shall mean FLIR
Systems, Inc., but shall also include wherever applicable (with such
applicability determined solely in the discretion of the Committee) any entity
that is directly or indirectly controlled by the Company.

                                   ARTICLE I
                                  DEFINITIONS

     Whenever used herein, the masculine pronoun shall be deemed to include the
feminine, and the singular to include the plural, unless the context clearly
indicates otherwise. The following definitions shall govern the Plan:

     1.1 "Account" means the account established under the Plan for each
Employee to which the benefit amounts determined under Article III and Account
Earnings under Article IV shall be separately credited.

     1.2 "Account Earnings" means the earnings which shall be credited to
Employee Accounts pursuant to Article IV.

     1.3 "Board of Directors" or "Board" means the Board of Directors of FLIR
Systems, Inc.

     1.4 "Cause" means Employee's:

          (a) Willful engagement in any misconduct in the performance of his
     duties that materially harms the Company, monetarily or otherwise;

          (b) Performance of any act which, if known to the Company's customers,
     clients or stockholders would materially and adversely affect the Company's
     business; or

          (c) Willful and substantial nonperformance of assigned duties (other
     than any such failure resulting from Employee's incapacity due to physical
     or mental illness) which has continued after the Board has given written
     notice of such nonperformance to Employee, which notice specifically
     identifies the manner in which the Board believes that Employee has not
     substantially performed his duties and which indicates the Board's
     intention to terminate Employee's employment because of such
     nonperformance. For purposes of (a) and (c) above, no act or omission on
     Employee's part shall be deemed "willful" if committed or omitted in good
     faith and with a reasonable belief that his action was in the best interest
     of the Company.

     1.5 "Change of Control" means a merger or consolidation to which the
Company is a party if the individuals and entities who were stockholders of
Company immediately prior to the effective date of such merger or consolidation
have beneficial ownership (as defined in Rule 13d-3 under the Securities
Exchange

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Act of 1934) of less than fifty percent (50%) of the total combined voting
power for election of directors of the surviving corporation immediately
following the effective date of such merger or consolidation.

     1.6 "Committee" means the administration committee appointed by the CEO to
administer the Plan. The Committee shall consist of not less than two persons
and shall be responsible for administration of the Plan.

     1.7 "Compensation" means the salary, bonus (including the value on the date
of grant of any Company stock received in lieu of bonus) and commissions payable
to an Employee during the Plan Year and considered to be "wages" for purposes of
federal income tax withholding, before reduction for salary reduction
contributions under IRC Section 401(k), or amounts deferred under any other
deferral arrangements. Compensation does not include expense reimbursements,
severance pay, any form of noncash compensation or benefits, group life
insurance premiums, income from the exercise of stock options or other receipt
of company stock (other than stock received in lieu of bonus), payments
triggered by a change of control under employment agreements or other agreements
between an Employee and the Company, or any other payments or benefits other
than normal salary, bonus, or commissions.

     1.8 "Disability" means the Employee qualifies for a disability benefit
under the Company's Long Term Disability Plan.

     1.9 "Early Retirement" means termination of employment with the Company at
or after age 55 with at least 5 full years of prior service with the Company.

     1.10 "Earnings Rate" means the interest rate to be applied to Employee
Accounts. The Earnings Rate shall be used to determine Account Earnings which
will be compounded quarterly. The Earnings Rate shall equal the prime lending
rate plus 200 basis points and shall be established at the end of each quarter
for the following quarter. The Earnings Rate shall be communicated to Employees
after it is established each quarter. After a Change in Control, the Earnings
Rate may not be reduced below the Earnings Rate in effect on the date of the
Change in Control.

     1.11 "Effective Date" means January 1, 2001.

     1.12 "Employee" means a highly compensated or key management employee who
has been designated by the CEO as eligible to participate in this Plan.

     1.13 "Plan" shall mean this FLIR Systems, Inc. Supplemental Executive
Retirement Plan, as it may be amended from time to time.

     1.14 "Plan Year" means the 12-month period commencing on January 1 and
ending on December 31.

     1.15 "Normal Retirement" means termination of employment with the Company
at or after age 60.

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                                   ARTICLE II
                                  ELIGIBILITY

     2.1 Eligible Persons. Eligibility for participation in the Plan shall be
limited to employees of the Company on its U.S. payroll who report directly to
the Chief Executive Officer (CEO) of the Company and who are designated as
eligible to participate by the CEO, in his sole discretion. Individuals who are
eligible shall be notified by the Company as to their eligibility to participate
in the Plan.

     2.2 Commencement of Participation. The initial group of eligible Employees
shall begin participation on the Effective Date. Employee's who become eligible
after the initial group shall begin participation in the Plan on the date chosen
by the CEO.

     2.3 Termination of Participation. Active participation in the Plan shall
end when an Employee's employment terminates for any reason. Upon termination of
employment, an Employee shall remain an inactive participant in the Plan until
all of the benefits to which he or she is entitled hereunder have been paid in
full.

                                  ARTICLE III
                                 PLAN ACCOUNTS

     3.1 Retirement Account

          (a) A separate account shall be established for each eligible
     Employee. All Accounts will be maintained on the books of the Company and
     the Company is under no obligation to segregate any assets to provide for
     the Accounts established under the Plan.

          (b) After the effective date of the Plan, on the last day of the Plan
     Year, Accounts of active Employees shall be credited with an amount equal
     to 10% of the Employee's Compensation paid to the Employee during the Plan
     Year.

          (c) At the end of each calendar quarter, Employee Accounts will be
     credited with Account Earnings which shall be compounded quarterly. Account
     Earnings shall continue to be credited to the Account as long as an
     Employee has a positive Account balance.

          (d) Each Employee's Account as of the end of each quarter shall
     consist of the amounts credited under Section 3.1(b) plus Account Earnings
     under Section 3.1(c) minus the amount of any distributions made during the
     quarter.

     3.2 Account Vesting.

          (a) Accounts of Employees who are younger than 50 years old as of the
     effective date of the Plan shall vest at the rate of ten percent (10%) for
     each full year of participation in the Plan. Vesting increases shall occur
     on the first day of the Plan Year following the year in which the vesting
     increase is earned.

          (b) Accounts of Employees who are age 50 or older as of the effective
     date of the Plan, or who are age 50 or older upon initially becoming a Plan
     participant, shall vest ratably over the number of years between the
     Employees age upon entering the Plan and age 60. Partial years shall be
     counted as a full year in determining the amount of vesting to be achieved
     each year. (Example: An Employee is age 55 and 1/2 on the effective date of
     the Plan. Such Employee will vest in the Plan benefit over 5 years, with
     1/5 of such vesting occurring upon completion of each year of participation
     in the plan). Such ratable vesting shall

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     take into account any additional service credits received under paragraph
     3.2(c) or (d) below. (Example: The same Employee receives 5 years of prior
     service credits under Section 3.2(c) which results in an initial vesting
     percentage of 25% Such Employee will achieve the remaining 75% vesting in
     equal increments over the following five years of participation in the
     Plan). Vesting increases shall occur on the first day of the Plan Year
     following the year in which the vesting increase is earned.

          (c) Employees with prior years of service with the Company shall be
     receive vesting credits of 5% for each full year of prior service with the
     Company, to a maximum additional vesting of twenty five percent (25%).

          (d) In its sole discretion, the Committee may grant an Employee
     additional vesting credits for service at a company acquired by the
     Company. Such prior service credits shall be granted upon entry into the
     Plan and shall be communicated to the Employee at that time. Additional
     vesting credits under this section and section 3.2(d) shall not exceed
     twenty five percent (25%) in total.

          (e) If an Employee terminates employment for any reason prior to
     Normal Retirement, death, or Disability, the Employee will forfeit the
     non-vested portion of his Account. Amounts forfeited under the Plan shall
     not be credited to Accounts of other Employees, but shall reduce the
     liability of the Company under the Plan.

          (f) In the event an Employee terminates employment with the Company at
     Normal Retirement or on account of death or Disability, the Employee shall
     be fully vested in their Account and no part of the Account may be
     thereafter forfeited under Section 3.2(e).

          (g) In the event of a Change in Control, all Employees shall be fully
     vested in the Account, and no amounts shall thereafter be forfeited under
     Section 3.2(e).

     3.3 No Withdrawal. Amounts credited to Employee Accounts may not be
withdrawn or borrowed by Employee and shall be paid to Employee only in
accordance with the provisions of this Plan.

                                   ARTICLE IV
                         DISTRIBUTION OF PLAN BENEFITS

     4.1 Normal Retirement Benefit. An Employee who terminates employment with
the Company as a result of Early Retirement, Normal Retirement, or within 2
years after a Change of Control, shall be entitled to receive payment of their
Account balance in substantially equal annual installments, including principal
and interest, over 20 years, with the first such payment due within 60 days of
termination.

     4.2 Minimum Retirement Benefit.

          (a) Employees who terminate employment with the Company as a result of
     Early Retirement, Normal Retirement, death, or Disability shall be entitled
     to receive a minimum annual retirement benefit equal to the greater of the
     annual amount determined under Section 4.1 or under Section 4.2(b). In the
     event that the amount determined under Section 4.1 is determined to be less
     than the amount determined under Section 4.2(b) the Employee shall be
     entitled to receive an annual benefit equal to the amount

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     determined under Section 4.2(b). Such benefit shall be paid annually for 20
     years with the first such payment due within 60 days after retirement. Such
     benefit shall be in lieu of the benefit determined under Section 4.1.

          (b) The minimum annual retirement benefit under the plan shall equal
     to 15% of the Employee's Compensation received during the Employee's final
     12 full months of employment. For Employees who terminate as a result of
     Early Retirement, the benefit determined under this Section 4.2(b) shall be
     reduced by 6% for each full or partial year prior to age 60 in which the
     termination occurs.

          (c) If an Employee terminates within two (2) years after a Change of
     Control, the six percent (6%) benefit reduction shall not be applied and
     the benefit determined under this paragraph 4.2(b) shall be increased by 5%
     for each year, or partial year, that the Employee's age at termination is
     less than age 60. The maximum increase under this paragraph shall be fifty
     percent (50%). (Example: Employee, age 55 1/2, terminates employment one
     year after change of control. Minimum benefit under this section will be
     increased by 25%.).

     4.3 Pre-retirement Termination.

          (a) Death.

               (i) If an Employee dies while employed by the Company or before
          distributions have commenced, the Employee's benefit shall be payable
          to the beneficiary or beneficiaries selected by the Employee. The
          benefit shall be paid in substantially equal annual installments,
          including principal and interest, over 20 years with the first such
          payment due within 60 days of Employee's death. In the event the
          Employee has not designated a beneficiary at the date of Employee's
          death, the benefit will be payable to the Employee's estate.

               (ii) If an Employee dies after benefit payments have commenced
          under the Plan, the beneficiary or beneficiaries selected by the
          Employee shall continue to receive the remaining payments due to the
          Employee as the Employee would have received them. In the event the
          Employee has not designated a beneficiary at the date of Employee's
          death, the remaining payments will be payable to the Employee's
          estate.

          (b) Disability. In the event the Employee terminates employment as a
     result of a Disability such Employee shall be entitled to receive payment
     of his Account balance in substantially equal annual installments,
     including principal and interest, over 20 years with the first such
     installment due within 60 days of termination.

          (c) Termination for Cause. In the event the Employee terminates
     employment for Cause, the Employee's benefit shall be equal to their vested
     Account balance on the date of termination. Such Employee shall not be
     entitled to the minimum benefit provided under Section 4.2. The Employee's
     Account balance shall be paid in a lump sum within 60 days after
     termination. This provision shall not apply after a Change in Control.

          (d) Other Termination. Prior to a Change in Control, in the event the
     Employee terminates employment for reasons other than Early Retirement,
     Normal Retirement, Death, or Disability, the Employee's benefit shall be
     equal to their vested Account balance. Such Employee shall not be entitled
     to the minimum benefit provided under Section 4.2. This amount shall be
     paid in a lump sum within 60 days after termination.

                                       -5-

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     4.4 Annuitization of Benefit.

          (a) Prior to Change of Control. After an Employee becomes entitled to
     payments under the Plan the Company may choose, at any time during the
     period that payments are due, to transfer to the Employee an insurance
     company's immediate annuity in satisfaction of its obligations under the
     Plan. The amount of the payment provided under the annuity shall be
     calculated to provide an after-tax benefit equal to the after tax benefit
     that would have otherwise been received under the Plan. For purposes of
     calculating after-tax amounts under the Plan the Employer shall assume a
     marginal tax rate equal to the highest marginal federal tax rate in effect
     at the date of annuitization. In addition to the annuity, the Company shall
     provide a gross-up bonus to each Employee. Such gross-up bonus shall be in
     the amount necessary to pay both the income tax on the receipt of the
     annuity and the income tax on the bonus, using the Employee's marginal
     federal and state income tax rates on the date of annuitization.

          (b) After Change of Control. Within 30 days after a Change of Control
     the Company shall annuitize the benefits due under the Plan. The annuity
     premium shall be calculated to provide an after tax benefit equal to the
     after tax benefit the Employee would be entitled to under the Plan assuming
     that the such benefit is payable at age 60. For purposes of calculating
     after tax amounts under the Plan the Employer shall assume a marginal tax
     rate equal to the highest marginal federal tax rate in effect at the date
     of annuitization. In addition to the annuity, the Company shall provide a
     gross-up bonus to each Employee. Such gross-up bonus shall be in the amount
     necessary to cover both the income tax on the receipt of the annuity and
     the income tax on the bonus, using the Employee's marginal federal and
     state income tax rates on the date of annuitization. In the event that
     Employees earn additional benefits under the Plan after the benefit is
     annuitized hereunder, such additional benefits shall be annuitized within
     30 days after the end of each calendar year under the same terms as the
     initial annuitization.

     4.5 Tax Withholding. All payments under this Plan shall be subject to all
applicable withholding for state and federal income tax and to any other
federal, state or local tax which may be applicable thereto.

     4.6 Payment to Guardian. If a Plan benefit is payable to a minor or a
person declared incompetent or to a person incapable of handling the disposition
of the benefit, the Committee may direct payment of such benefit to the
guardian, legal representative or person having the care and custody of such
minor, incompetent or person. The Committee may require proof of incompetency,
minority, incapacity or guardianship as it may deem appropriate prior to
distribution of the benefit . Such distribution shall completely discharge the
Company and Committee with respect to such benefits.

                                   ARTICLE V
                                 ADMINISTRATION

     5.1 Administration of the Plan. The Plan shall be administered by a
Committee of not less than two persons, appointed by the CEO. The Committee
shall have the authority to make, amend, interpret, and enforce all appropriate
rules and regulations for the administration of the Plan and decide or resolve
any and all questions including interpretations of the Plan, as may arise in
connection with the Plan. A majority vote of the Committee members shall control
any decision.

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     5.2 Delegation of Administration. The Committee may from time to time,
employ other agents and delegate to them such administrative duties as it sees
fit, and may from time to time consult with counsel who may be counsel to the
Company.

     5.3 Administration Procedures. The Committee may from time to time
establish rules and regulations for the administration of the Plan and adopt
standard forms for such matters as beneficiary designations, elections and
applications for benefits, provided such rules and forms are not inconsistent
with the provisions of the Plan.

     5.4 Binding Effect of Committee Decisions. All determinations of the
Committee shall be binding on all parties. In construing or applying the
provisions of the Plan, the Company shall have the right to rely upon a written
opinion of legal counsel, which may be independent legal counsel or legal
counsel regularly employed by the Company, whether or not any question or
dispute has arisen as to any distribution from the Plan.

     5.5 Books and Records. The Committee shall be responsible for maintaining
the books and records for the Plan. Each Employee or his or her beneficiary
shall be notified quarterly of the amount in his or her Account.

     5.6 Indemnification. The Company shall indemnify and hold harmless the
members of the Committee against any and all claims, loss, damage, expense or
liability arising from any action or failure to act with respect to this Plan,
except in the case of gross negligence or willful misconduct.

                                   ARTICLE VI

                                CLAIMS PROCEDURE

     6.1 Claim Denial Procedure. If a claim for benefits under the Plan is
denied in whole or in part, the claimant will be notified by the Committee
within 60 days of the date the claim is delivered to the Committee. A claim that
is not acted upon within 60 days may be deemed by the claimant to have been
denied. The notification will be written in understandable language and will
state

          (a) Specific reasons for denial of the claim,

          (b) Specific references to Plan provisions on which the denial is
     based,

          (c) A description (if appropriate) of any additional material or
     information necessary for the claimant to perfect the claim and which such
     material or information is necessary, and

          (d) An explanation of the Plan's review procedure.

     6.2 Time Limit for Claim Submission. No claim shall be valid unless it is
submitted within 60 days following the receipt of the disputed Plan benefit or
the denial of a Plan benefit.

     6.3 Review of Claims Denials. Within 60 days after a claim has been denied,
or deemed denied, the claimant or his or her authorized representative may make
a request for a review by submitting to the Committee a written statement
requesting a review of the denial of the claim, setting forth all of the grounds
upon which the request for review is based and any facts in the support thereof,
and setting forth any issues

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or comments which the claimant deems relevant to the claim. The claimant may
review pertinent documents relating to the denial. The Committee shall make a
decision of review within 60 days after the receipt of the claimant's request
for review or receipt of all additional materials reasonably requested by the
Committee from the claimant, unless an extension of time for processing a review
is required, in which case the claimant will be notified and a decision will be
made within 120 days of receipt of the request for review. The decision will be
in writing, and in understandable language. It will give specific references to
the Plan provisions on which the decision is based. The decision of the
Committee on review shall be final and conclusive upon all persons if supported
by substantial evidence.

                                  ARTICLE VII
                                 MISCELLANEOUS

     7.1 Nontransferability. The right of Employee or any other person to the
payment of any benefits under this Plan shall not be assigned, transferred,
pledged or encumbered.

     7.2 Unfunded Plan. This Plan is intended to be an unfunded plan maintained
primarily to provide deferred compensation for a select group of management or
highly compensated employees within the meaning of Sections 201, 301, and 401 of
the Employee Retirement Income Security Act of 1974, as amended (ERISA), and
therefore to be exempt from the provisions of Parts 2, 3, and 4 of Title I of
ERISA. No Employee or any other person shall have any interest in any fund or in
any specific asset or assets of the Company by reason of this Plan, or for any
other reason, or have any right to receive any distributions under the Plan
except as and to the extent expressly provided under the Plan. Employees are
general creditors of the Company with regard to the amounts owed pursuant to the
Plan.

     7.3 Binding Effect. This Plan shall be binding upon and inure to the
benefit of the Company, its successors and assigns and Employee and his heirs,
executors, administrators and legal representatives.

     7.4 No Rights as Employee. Nothing contained herein shall be construed as
conferring upon any Employee the right to continue in the employ of the Company
as an employee.

     7.5 Reimbursement of Costs. If the Company, Employee or a successor in
interest to either of the foregoing, brings legal action to enforce any of the
provisions of this Plan, the prevailing party in such legal action shall be
reimbursed by the other party, the prevailing party's costs of such legal action
including, without limitation, reasonable fees of attorneys, accountants and
similar advisors and expert witnesses.

     7.6 Applicable Law. This Plan shall be construed in accordance with and
governed by the laws of the State of Oregon.

     7.7 Entire Agreement. This Plan and any applicable enrollment forms
constitute the entire understanding and agreement with respect to the Plan, and
there are no agreements, understandings, restrictions, representations or
warranties among Employee and the Company other than those as set forth or
provided for therein.

     7.8 Trusts. At its discretion, the Company may establish one or more
trusts, with such trustees as the Board may approve, for the purpose of
providing for the payment of Plan benefits. Such trust or trusts may be
irrevocable, but the assets thereof shall be subject to the claims of the
Company's creditors. To the extent any benefits provided under the Plan are
actually paid from any such trust, the Employer shall have no

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further obligation with respect thereto, but to the extent not so paid, such
benefits shall remain the obligation of, and shall be paid by, the Employer.

     7.9 Termination or Amendment of Plan.

          (a) Prior to a Change in Control, this Plan may be amended by the
     Company at any time in its sole discretion by resolution by its Board;
     provided however that no amendment may reduce the amount credited to an
     Employee's Account on the date of such amendment or delay the time at which
     benefits shall be paid to an Employee or beneficiary pursuant to the Plan.

          (b) Prior to a Change in Control, the Company reserves the right to
     terminate the Plan in its entirety at any time. If the Plan is terminated,
     all accounts shall be paid to the Employee's in a lump sum, within 60 days
     of the termination. Provided however, that Employees who, based on their
     current compensation, would have been entitled to the minimum benefit
     provided under Section 4.2, shall be paid a lump sum based on the value of
     the minimum benefit where such amount would be greater than the Account
     balance on the date the Plan is terminated.

          (c) After a Change in Control the plan may not be amended or
     terminated without the prior written consent of a majority of plan
     participants.

                                       -9-EXHIBIT 10.13
                                                                   -------------

                             SUBSCRIPTION AGREEMENT

Equity One, Inc.
1696 N.E. Miami Gardens Drive
North Miami Beach, Florida 33179

Ladies and Gentlemen:

         Alony Hetz Properties & Investments, Ltd. or a wholly owned entity (the
"Investor") hereby tenders this Subscription Agreement ("Agreement") as of
October 4, 2000 in accordance with and subject to the terms and conditions set
forth herein.

1.       SUBSCRIPTION.
         ------------

         1.1. The Investor hereby subscribes for and agrees to purchase the
number of shares of common stock, $.01 par value (the "Common Stock"), of Equity
One, Inc., a Maryland corporation (the "Corporation"), indicated in Sections 1.2
and 1.3 hereof (the "Shares") at the purchase price per Share set forth in such
Sections. In addition, the Corporation shall issue to the Investor warrants to
purchase such number of shares of the Common Stock as are set forth in Section
1.4 hereof for the price and pursuant to the terms and conditions set forth
herein (the "Warrants").

         1.2. The Investor shall purchase 1,000,000 Shares at a price of $10.875
per share at the initial closing (the "Initial Closing"). The payment to be
delivered at the time of the Initial Closing shall be made by the Investor by
wire transfer of $10,875,000 in accordance with instructions that are provided
by the Corporation not later than 24 hours before the Initial Closing (the
"Initial Funding").

         1.3. The Investor shall purchase and the Corporation shall sell an
additional 925,000 Shares within 9 months after the Initial Closing. The
Corporation shall determine the time at which each additional closing shall take
place and the number of Shares to be sold; provided, however, that there shall
be no more than three additional closings, with each additional closing covering
no fewer than 200,000 Shares (each, an "Additional Closing"). The Corporation
shall give not less than thirty (30) days prior written notice of each
Additional Closing. Each Additional Closing shall take place not earlier than
thirty (30) days and not later than fifty (50) days after the commencement of a
calendar quarter and may not take place prior to the second Business Day
following the Corporation's release of its quarterly or annual financial results
covering the immediately prior quarter. The price to be paid by the Investor for
each Share sold at each Additional Closing shall be $10.875 per share, subject
to adjustments set forth below.

         1.4. The Corporation agrees to issue to the Investor Warrants
exercisable, as set forth herein, for 1,025,000 Shares, pursuant to a Warrant
Agreement of even date herewith. Subject to the restrictions set forth herein
relating to the times of exercise, Warrants for 375,000 Shares shall be
exercisable through December 31, 2001 and Warrants for 650,000 Shares shall be

                              Submission Agreement

                                     Page 1

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exercisable through December 31, 2002. The exercise price shall be $10.875 per
Share, subject to adjustments set forth below. The Warrants may be exercised,
upon giving ten (10) Business Days advance written notice to the Corporation, in
whole or in part and from time to time, but only within a 30-50 day period
following the end of each calendar quarter, provided that such exercise date is
on or after the second Business Day following the Corporation's release of its
quarterly or annual financial results. A "Business Day" as used herein shall
mean any day on which banks are open for business in the city of New York.

         1.5. Upon receipt by the Corporation of the requisite payment for all
Shares to be purchased by the Investor at the Initial Closing or any Additional
Closing or upon Investor's exercise of any Warrants, as applicable, and subject
to the satisfaction of the conditions set forth herein, the Shares so purchased
will be issued in the name of the Investor, and the name of the Investor will be
registered on the stock transfer books of the Corporation as the record owner of
such Shares. The Corporation will issue to the Investor a stock certificate for
the Shares purchased as of the date of the Initial Closing and any Additional
Closing.

         1.6. Subject to the terms and conditions hereof, the Investor hereby
agrees to be bound hereby upon (i) execution and delivery to the Corporation of
the signature page to this Subscription Agreement and (ii) acceptance on the
Initial Closing Date (as hereafter defined) or an Additional Closing Date (as
hereafter defined), as the case may be, by the Corporation of the Investor's
subscription (the "Subscription").

         1.7. If the Corporation shall issue or enter into any agreement to
issue any shares of Common Stock (excluding shares issued in connection with a
downREIT or UPREIT transaction, a Dividend Reinvestment Plan, or any existing or
future incentive compensation programs, whether in the form of shares or
options) for a net per share purchase price less than $10.625, then, as of the
date of such subsequent sale (the "Subsequent Issuance"), the purchase price for
any unpurchased Shares and the exercise price for any unexercised Warrants shall
be reduced (but not increased) by an amount (calculated to the nearest cent)
determined by multiplying (a) the amount by which the net consideration per
share for the Subsequent Issuance is less than $10.625 by (b) a fraction, the
numerator of which is the number of new shares issued by the Corporation in the
Subsequent Issuance and the denominator of which is the number of unpurchased
Shares plus the number of unexercised warrants (the "Subsequent Issuance Price
Adjustment"). To the extent that the Corporation makes, from time to time,
capital gain distributions, then, the purchase price of any unpurchased Shares
and/or the exercise price of any unexercised Warrants, as of the date of the
distribution, will also be adjusted downward by an amount, per share, on a fully
diluted basis, so that the Investor will receive the benefit of such
distribution as though it had purchased the Shares or exercised the Warrants,
but only to the extent that it does purchase the Shares and exercise the
Warrants.

         1.8. ADJUSTMENT FOR RECAPITALIZATION. In case (i) the outstanding
shares of the Common Stock shall be subdivided into a greater number of shares,
(ii) a dividend or other distribution in Common Stock shall be paid in respect
of Common Stock, (iii) the outstanding shares of

                              Submission Agreement

                                     Page 2

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Common Stock shall be combined into a smaller number of shares thereof, or (iv)
any shares of the Corporation's capital stock are issued by reclassification of
the Common Stock (including any reclassification upon a consolidation or merger
in which the Corporation is the continuing corporation), the purchase price in
effect immediately prior to such subdivision, combination or reclassification or
at the record date of such dividend or distribution shall simultaneously with
the effectiveness of such subdivision, combination or reclassification or
immediately after the record date of such dividend or distribution shall be
proportionately adjusted to equal the product obtained by multiplying the
purchase price by a fraction, the numerator of which is the number of
outstanding shares of Common Stock (on a fully diluted basis) prior to giving
effect to such combination, subdivision, reclassification or dividend and the
denominator of which is the number of outstanding shares of Common Stock (on a
fully diluted basis) after giving effect to such combination, subdivision,
reclassification or dividend. For purposes hereof, "on a fully diluted basis"
means that all outstanding options, rights or warrants to subscribe for shares
of common stock and all securities convertible into or exchangeable for shares
of Common Stock (such options, rights, warrants and securities are collectively
referred to herein as "Convertible Securities") and all options or rights to
acquire Convertible Securities have been exercised, converted or exchanged, and
shall be calculated using the treasury stock method basis, whereby options and
warrants will be included in the calculation of the number of outstanding shares
of common stock only to the extent the average market price of the common stock
over the preceding period of ten (10) Business Days exceeds the price of the
options or warrants.

                  Whenever the per share is adjusted as provided in this Section
1.8, the number of Shares remaining to be purchased hereunder immediately prior
to such purchase price adjustment shall be adjusted, effective simultaneous with
the purchase price adjustment, either up or down, to equal the product obtained
(calculated to the nearest full share) by multiplying such number of Shares by a
fraction, the numerator of which is the purchase price per share in effect
immediately prior to such purchase price adjustment and the denominator of which
is the purchase price per share in effect upon such purchase price adjustment.
The adjusted number of shares of Common Stock shall thereupon be the number of
shares of Common Stock purchasable hereunder until further adjusted as provided
herein.

         2. OFFERING MATERIAL. The Investor represents and warrants that it is
in receipt of and that it has carefully read and understands the following
items:

                  (a) Definitive Proxy Statement filed by the Corporation with
         the Securities and Exchange Commission (the "SEC") on Form 14A on May
         11, 2000 (the "Proxy Statement");

                  (b) Annual Report to the SEC on Form 10-K filed by the
         Corporation for its fiscal year ended December 31, 1999, as amended by
         that certain Form 10K-A filed on April 14, 2000 (the "Form 10-K");

                  (c) Quarterly Reports to the SEC on Form 10-Q filed by the
         Corporation for the quarters ended March 31 and June 30, 2000 (the
         "Forms 10-Q"); and

                              Submission Agreement

                                     Page 3

<PAGE>

                  (d) Registration Statement on Form S-3D filed with the SEC on
         February 22, 2000 ("DRIP Registration Statement").

         Collectively, the Proxy Statement, Forms 10-K, the Forms 10-Q and the
DRIP Registration Statement are referred to herein as the "Public Reports."

3.       CONDITIONS TO INVESTOR'S OBLIGATIONS.

         3.1. The obligation of the Investor to close the transactions
contemplated by this Agreement (the "Transaction") is subject to the
satisfaction on or prior to the date of the applicable Closing of the following
conditions set forth in Sections 3.2 through 3.3 hereof.

         3.2. The representations and warranties made by the Corporation herein
shall be true in all material respects on and as of each Additional Closing Date
with the same effect as if they had been made on and as of the applicable
Additional Closing Date.

         3.3. All necessary proceedings to be taken in connection with the
transaction (including having obtained approval of the board of directors of
Investor and Corporation) are to be consummated at or prior to each Closing, and
all documents incident thereto shall be reasonably satisfactory in form and
substance to the Investor and its counsel, and the Investor and its counsel
shall have received copies of all documents and information which it may have
reasonably requested in connection with the Transaction and of all corporate
proceedings in connection therewith, in form and substance reasonably
satisfactory to Investor and its counsel.

4.       CORPORATION REPRESENTATIONS, WARRANTIES AND COVENANTS. The Corporation
represents and warrants that, as of the date of this Agreement:

                  (i) The Corporation is a corporation duly organized and
          validly existing and in good standing under the laws of the State of
          Maryland, entitled to own its property of a material nature and to
          carry on its business of a material nature as and in places where such
          property is now owned or operated and such business is conducted;

                  (ii) Each of the subsidiaries of the Corporation (the
          "Subsidiaries") is a corporation duly organized and validly existing
          and in good standing under the laws of the jurisdiction of their
          respective incorporation, entitled to own their respective properties
          of a material nature and to carry on their respective businesses of a
          material nature in places where such properties are now owned or
          operated and such businesses are conducted, and, except as disclosed
          in the Public Reports, there is no action or proceeding pending or, to
          the Corporation's best knowledge threatened, brought by or before any
          federal or state agency having jurisdiction over the operations of a
          material nature of the Corporation which threatens in any material
          respect the continued operation of any material phase of the
          Corporation's business now conducted by it or its Subsidiaries;

                              Submission Agreement

                                     Page 4

<PAGE>

                  (iii) The Corporation's certified consolidated financial
         statements as of December 31, 1999, contained in the Form 10-K, and its
         unaudited financial statements as of March 31, 2000 and as of June 30,
         2000, contained in the Forms 10-Q, including the notes contained
         therein, fairly present the consolidated financial position of the
         Corporation at the respective dates thereof and the results of its
         consolidated operations for the periods purported to be covered
         thereby. Such financial statements have been prepared in conformity
         with generally accepted accounting principles consistently applied with
         prior periods subject to any comments and notes contained therein.
         Since June 30, 2000, there has been no material adverse change in the
         financial condition of the Corporation from the financial condition
         stated in such financial statements subject to changes occurring in the
         ordinary course of its business or to changes reflected in the Forms
         10-Q;

                  (iv) The Corporation, by appropriate and required corporate
         action, has, or will have prior to the Initial Closing Date, duly
         authorized the execution of this Agreement, and the issuance and
         delivery of the Common Stock and Warrants pursuant to the terms hereof.
         The Shares are not subject to preemptive or other rights of any
         stockholders and when issued in accordance with the terms of this
         Agreement, the Shares will be validly issued, fully paid and
         nonassessable; and this Agreement constitutes a valid and binding
         obligation of the Corporation enforceable against the Corporation in
         accordance with its terms, except as such enforceability may be limited
         by applicable bankruptcy, insolvency, reorganization, fraudulent
         transfer, moratorium or similar laws affecting creditors' rights
         generally and by general principles of equity; and

                  (v) Performance of this Agreement and compliance with the
         provisions hereof will not violate any provision of any applicable law
         or of the Charter or Bylaws of the Corporation, or of any of its
         subsidiaries, and will not conflict with or result in any breach of any
         of the terms, conditions or provisions of, or constitute a default
         under, or result in the creation or imposition of any lien, charge or
         encumbrance upon, any of the properties or assets of a material nature
         of the Corporation, or of any of its subsidiaries, pursuant to the
         terms of any indenture, mortgage, deed of trust or other agreement or
         instrument binding upon the Corporation, or any of its subsidiaries,
         other than such breaches, defaults or liens which would not have a
         material adverse effect on the Corporation and its subsidiaries taken
         as a whole.

                  (vi) The Corporation agrees to use commercially reasonable
         efforts to operate in a manner which will not cause it to be classified
         other than as a "real estate investment trust" (a "REIT") under Section
         856 of the Internal Revenue Code of 1986, as amended (after giving
         effect to the investment contemplated by this Agreement).

                  (vii) There has been no event or occurrence, since the date of
         the Corporation's most recent Quarterly Report on Form 10-Q filed with
         the SEC which would reasonably be expected to have a material adverse
         affect on the Corporation and its Subsidiaries, taken as a whole.

                              Submission Agreement

                                     Page 5

<PAGE>

                  (viii) As of the Initial Closing Date, the authorized capital
         stock of the Corporation, immediately prior to the Closing, will
         consist of a total of 45,000,000 shares of capital stock, comprised of
         40,000,000 shares of Common Stock, par value one cent ($0.01) per
         share, 11,873,301 of which are issued and outstanding, and 5,000,000
         shares of preferred stock, par value one cent ($0.01) per share, none
         of which are outstanding. All issued and outstanding shares of Common
         Stock (a) have been duly authorized and validly issued, (b) are fully
         paid and nonassessable, and (c) were issued in compliance with all
         applicable state and federal laws concerning the issuance of
         securities. Except as discussed in the Public Reports, there are no
         outstanding options, warrants, rights (including conversion or
         preemptive rights and rights of refusal), proxy or stockholder
         agreements, or agreements of any kind for the purchase or acquisition
         from the Corporation of any of its securities. When issued in
         compliance with the provisions of this Agreement and the Charter, the
         Shares will be duly and validly issued, fully paid and nonassessable,
         and will be free of any liens or encumbrances; provided, however, that
         the Shares may be subject to restrictions on transfer under state
         and/or federal securities laws as set forth herein or as otherwise
         required by such laws at the time a transfer is proposed.

5.       RESTRICTIONS ON TRANSFER; REGISTRATION RIGHTS

         5.1. Investor represents and warrants that it is acquiring the Shares
and Warrants for its own account and for the purpose of investment and not with
a view to any distribution or resale thereof within the meaning of the Act, and
any applicable state or other securities laws ("State Acts"). The Investor
further agrees that it will not sell, assign or transfer any of the Shares or
the Warrants, or shares of Common Stock issuable upon the exercise of the
Warrants, in violation of the Act or State Acts and acknowledges that, in taking
unregistered securities, it must continue to bear the economic risk of its
investment for an indefinite period of time because of the fact that such Shares
and Warrants, and shares of Common Stock issuable upon the exercise of such
Warrants, have not been registered under the Act or State Acts and further
realizes that such Shares or Warrants, or shares of Common Stock issuable upon
the exercise of such Warrants, cannot be sold unless subsequently registered
under the Act and State Acts or an exemption from such registration is
available. The Investor further recognizes that the Corporation is not assuming
any obligation to register such Shares or the Warrants, or shares of Common
Stock issuable upon the exercise of such Warrants, except as expressly set forth
herein. The Investor also acknowledges that appropriate legends reflecting the
status of the Shares and the Common Stock underlying the Warrants under the Act
and State Acts may be placed on the face of the certificates for such Common
Stock at the time of their transfer and delivery to the holder thereof.

         5.2. The Shares and Warrants issued pursuant to this Agreement, and
shares of Common Stock issuable upon the exercise of such Warrants, may not be
transferred except in a transaction which is in compliance with the Act and
State Acts. Except as provided hereafter with respect to registration of the
Shares and shares of Common Stock issuable upon the exercise of the Warrants, it
shall be a condition to any such transfer that the Corporation shall be
furnished with an opinion of counsel to the holder thereof, reasonably
satisfactory to the

                              Submission Agreement

                                     Page 6
<PAGE>

Corporation, to the effect that the proposed transfer would be in compliance
with the Act and State Acts.

         5.3. After the passage of 24 months after the Initial Closing Date, and
upon receiving a demand therefor from the Investor, the Corporation shall use
its best efforts to prepare and file with the SEC, on up to three occasions, a
registration statement and such other documents as may be necessary in the
opinion of both counsel for the Corporation and counsel for the Investor, in
order to comply with the provisions of the Act so as to permit the registered
resale of the Shares, and Shares issuable upon the exercise of the Warrants, for
18 consecutive months (each a "Demand Registration"). The Corporation may
postpone for up to six months the filing or the effectiveness of a registration
statement pursuant to a Demand Registration if the Corporation notifies the
Investor that such Demand Registration would reasonably be expected to have an
adverse effect on any business plan of the Corporation or any of its
subsidiaries; provided that in such event, the Investor will be entitled to
withdraw such request and, if such request is withdrawn, such Demand
Registration will not count as one of the permitted Demand Registrations
hereunder and the Corporation shall pay all registration expenses in connection
with such registration. In the event circumstances change and Demand
Registration would no longer have an adverse effect on any business plan of the
Corporation or any of its subsidiaries, the Corporation shall within 30 days
file with the SEC a registration statement and such other documents as may be
necessary in the opinion of both counsel for the Corporation and counsel for the
Investor, in order to comply with the provisions of the Act so as to permit the
registered resale of the Shares, and Shares issuable upon the exercise of the
Warrants.

         5.4. (a) Additionally, if at any time after 24 months after the Initial
Closing Date, the Corporation proposes to register any of its common stock under
the Act for sale to the public, whether for its own account or for the account
of other security holders or both (except with respect to registration
statements on Form S-4, S-8 or another form not available for registering the
Shares of Common Stock for sale to the public), each such time the Corporation
will give written notice to the Investor of its intention to do so. Upon the
written request of the Investor to register any of its Shares, and shares of
Common Stock issuable upon the exercise of the Warrants, which notice must be
received by the Corporation within 15 Business Days after the Corporation has
given notice of the proposed registration to the Investor, the Corporation will
use its best efforts to cause the Common Stock as to which registration shall
have been so requested to be included in the securities to be covered by the
registration statement proposed to be filed by the Corporation, all to the
extent required to permit the sale or other disposition by the Investor (in
accordance with such written request) of such shares of Common Stock so
registered (a "PIGGY-BACK REGISTRATION"). Notwithstanding anything to the
contrary contained herein, the Corporation may elect, at any time, to register
the Shares or the Common Stock underlying the Warrants, in which event the
Investor agrees to reasonably cooperate to facilitate such registration.

         (b) Notwithstanding anything to the contrary contained in this Section
5.4, the Corporation may withdraw any registration statement referred to in
Section 5.4 without thereby incurring any liability to the Investor; provided,
however, that to the extent such registration

                              Submission Agreement

                                     Page 7
<PAGE>

statement withdrawn by the Corporation without a bona fide business reason, the
Corporation shall reimburse the reasonable expenses incurred by the Investor
with respect to such registration statement.

         (c) In the event that any registration pursuant to this Section 5.4
shall be, in whole or in part, an underwritten public offering, the number of
shares of Common Stock of the Investor and the other holders of the securities
of the Corporation requested to be included in such underwritten offering (the
"REQUESTING HOLDERS") may be reduced (pro-rata among the Investor and the
Requesting Holders based upon the number of securities held by the Investor and
the Requesting Holders) if and to the extent that the managing underwriter
believes that such inclusion would adversely affect the marketing of the
securities to be sold by the Corporation therein. The Investor agrees to execute
and deliver a customary lock-up agreement as may be requested by the managing
underwriter; provided, however, that all Requesting Holders of similar
securities in an amount equal to or greater than that held by Investor shall
have agreed to execute such agreements.

         5.5. The obligations of the Corporation identified in this Section 5
shall be suspended and tolled for such period of time (the "REGISTRATION
SUSPENSION PERIOD") as is necessary so that under no circumstances shall the
registered resale of the Shares, and shares of Common Stock issuable upon the
exercise of the Warrants, by the holders thereof commence within ninety days
after the commencement of an underwritten primary public offering of the
Corporation's equity securities (a "PUBLIC OFFERING"). The Investor acknowledges
and agrees that during the Registration Suspension Period it shall not resell
the Shares, or shares of Common Stock issuable upon the exercise of the
Warrants. The Investor further agrees that it shall, upon request, enter into an
agreement with the underwriter of a Public Offering, pursuant to which the
Investor shall agree not to resell the Shares, or shares of Common Stock
issuable upon the exercise of the Warrants, during the Registration Suspension
Period.

         5.6. If and whenever the Corporation is required by the provisions of
this Agreement to use its best efforts to effect the registration of the Shares,
and shares of Common Stock issuable upon the exercise of the Warrants, under the
Act for the account of an the Investor, the Corporation will, as promptly as
possible:

                  (i) prepare and file with the SEC a registration statement
         with respect to such securities and use its best efforts to cause such
         registration statement to become and remain effective;

                  (ii) prepare and file with the SEC such amendments and
         supplements to such registration statement and the prospectus used in
         connection therewith as may be necessary to keep such registration
         statement effective and to comply with the requirements of the Act and
         the rules and regulations promulgated by the SEC thereunder relating to
         the sale or other disposition of the securities covered by such
         registration statement;

                              Submission Agreement

                                     Page 8
<PAGE>

                  (iii) furnish to the Investor such numbers of copies of a
         prospectus, including a preliminary prospectus, complying with the
         requirements of the Act, and such other documents as the Investor may
         reasonably request in order to facilitate the public sale or other
         disposition of the Shares owned by the Investor, and shares of Common
         Stock issuable upon the exercise of the Warrants, but the Investor
         shall not be entitled to use any selling materials other than a
         prospectus and such other materials as may be approved by the
         Corporation, which approval will not be unreasonably withheld; and

                  (iv) use its best efforts to register or qualify the
         securities covered by such registration statement under the State Acts
         as the Investor shall reasonably request, and do any and all such other
         acts and things as may be necessary or advisable to enable the Investor
         to consummate the public sale or other disposition of the Shares owned
         by the Investor, and shares of Common Stock issuable upon the exercise
         of the Warrants, in such states; PROVIDED, HOWEVER, that the
         Corporation shall not be obligated to register or qualify such
         securities in any jurisdiction in which such registration or
         qualification would require the Corporation to qualify as a foreign
         corporation or file any general consent to service of process where it
         is not then so qualified or has not theretofore so consented.

         5.7. Except as provided below in this Section 5, the expenses incurred
by the Corporation in connection with action taken by the Corporation to comply
with this Section 5, including, without limitation, all registration and filing
fees, printing and delivery expenses, accounting fees, fees and disbursements of
counsel to the Corporation, consultant and expert fees, premiums for liability
insurance, if the Corporation chooses to obtain such insurance, obtained in
connection with a registration statement filed to effect such compliance and all
expenses, including counsel fees, of complying with State Acts, shall be paid by
the Corporation. All fees and disbursements of any counsel, experts, or
consultants employed by the Investor shall be borne by the Investor. The
Corporation shall not be obligated in any way in connection with any
registration pursuant to this Section 5 for any selling commissions or discounts
payable by the Investor to any underwriter or broker of securities to be sold by
the Investor. It shall be a condition precedent to the obligation of the
Corporation to take any action pursuant to this Section 5 that the Corporation
shall have received an undertaking satisfactory to it from the Investor to pay
all expenses required to be borne by the Investor and to furnish or cause to be
furnished to the Corporation specifically for use in the preparation of the
registration statement and prospectus written information concerning the
securities held by the Investor and also concerning any underwriter of such
securities and the intended method of disposition thereof and any additional
information or documentation as the Corporation shall reasonably request and as
may be required by administrators of the Act or State Acts in connection with
the action to be taken by the Corporation hereunder pursuant to such
registration.

         5.8. In the event of any registration under the Act pursuant to this
Section 5, the Corporation will indemnify and hold harmless the Investor, its
officers, directors and each underwriter of such securities, and any person who
controls the Investor or underwriter within the meaning of Section 15 of the
Act, against all claims, actions, losses, damages, liabilities and

                              Submission Agreement

                                     Page 9
<PAGE>

expenses, joint or several, to which any of such persons may become subject
under the Act or otherwise, insofar as such losses, claims, damages, liabilities
or actions arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any registration statement under
which such securities were registered under the Act, any preliminary prospectus
or final prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Investor, its
officers, directors and each underwriter of such securities, and each such
controlling person or entity for any legal and any other expenses reasonably
incurred by the Investor, such underwriter, or such controlling person or entity
in connection with investigating or defending any such loss, action, claim,
damage, liability, or action; PROVIDED, HOWEVER, that the Corporation will not
be liable in any such case to the extent that any such loss, claim, damage,
liability or action arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in said
registration statement, said preliminary prospectus or said prospectus, or said
amendment of supplement in reliance upon and in conformity with written
information furnished to the Corporation by the Investor or such underwriter
specifically for use in the preparation thereof, and PROVIDED FURTHER HOWEVER,
that the Corporation will not be liable in any such case to the extent that any
such loss, claim, damage or liability or action arises out of or is based upon
an untrue or alleged untrue statement or omission or an alleged omission made in
any preliminary prospectus or final prospectus if (i) the Investor failed to
send or deliver a copy of the final prospectus or prospectus supplement with or
prior to the delivery of written confirmation of the sale of the Common Stock,
and (ii) the final prospectus or prospectus supplement would have corrected such
untrue statement or omission.

         5.9. In the event of any registration of any securities under the Act
pursuant to this Section 5, the Investor will, or will furnish the written
undertaking of such other person or entity as shall be acceptable to the
Corporation to, indemnify and hold harmless the Corporation, its officers,
directors and any person who controls such Corporation within the meaning of
Section 15 of the Act, against any losses, claims, damages, liabilities, or
actions, joint or several, to which the Corporation, its officers, directors, or
such controlling person or entity may become subject under the Act or otherwise,
insofar as such losses, claims, damages, liabilities, or actions arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in any registration statement under which such securities were
registered under the Act, any preliminary prospectus or final prospectus
contained therein, or any amendment or supplement thereto, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent and only to the extent that any such
loss, claim, damage, liability, or action arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission
made in said registration statement, said preliminary prospectus or said
prospectus or said amendment or supplement in reliance upon and in conformity
with written information furnished to the Corporation by the Investor or any
underwriter of the Investor's securities specifically for use in the preparation
thereof.

                              Submission Agreement

                                    Page 10
<PAGE>

6.       CLOSING.

         6.1. The Initial Closing shall take place at the offices of the
Corporation, on or before November 17, 2000 (the "Initial Closing Date"), at
such time as the Corporation and Investor shall mutually agree. The Corporation
and the Investor may extend the Initial Closing Date to a date not later than
November 17, 2000.

7.       INVESTOR REPRESENTATIONS, WARRANTIES AND COVENANTS. The Investor
hereby represents, warrants and acknowledges and agrees with the Corporation as
follows:

         7.1. The Investor has carefully read and understands the Public
Reports. With respect to individual or partnership tax and other economic
considerations involved in this investment, the Investor is not relying on the
Corporation (or any agent or representative of it). The Investor has carefully
considered and has, to the extent the Investor believes such discussion
necessary, discussed with the Investor's professional legal, tax, accounting and
financial advisers the suitability of an investment in the Common Stock for the
Investor's particular tax and financial situation and has determined that the
Shares and Warrants being subscribed for by the Investor are a suitable
investment for the Investor.

         7.2. The Investor acknowledges that all documents, records and books
pertaining to this investment which the Investor has requested have been made
available for inspection by the Investor and the Investor's attorney, accountant
or other adviser(s).

         7.3. The Investor and/or the Investor's advisor(s) has/have had a
reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Corporation concerning the Offering and all such
questions have been answered to the full satisfaction of the Investor.

         7.4. The Investor is not subscribing for Shares of Common Stock as a
result of or subsequent to any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or meeting.

         7.5. The Investor is an "accredited investor," within the meaning of
Rule 501(a) of Regulation D under the Act. The Investor, by reason of the
Investor's business or financial experience or the business or financial
experience of the Investor's professional advisers who are unaffiliated with and
who are not compensated by the Corporation or any affiliate of it, directly or
indirectly, can be reasonably assumed to have the capacity to protect its
interests in connection with an investment in the Common Stock.

         7.6. The Investor is able to bear the substantial economic risks of an
investment in the Common Stock for an indefinite period of time, has no need for
liquidity in such investment and, at the present time, could afford a complete
loss of such investment.

                              Submission Agreement

                                    Page 11
<PAGE>

         7.7. The Investor or the Investor's purchaser representative, as the
case may be, has such knowledge and experience in financial, tax and business
matters so as to enable the Investor to utilize the information made available
to the Investor in connection with the Offering to evaluate the merits and risks
of an investment in the Common Stock and to make an informed investment decision
with respect thereto.

         7.8. The Investor acknowledges that neither the Shares herein
subscribed for nor the Warrants have been registered under the Act and under the
securities laws of any state. The Investor will not sell, transfer or otherwise
dispose of the Shares or Warrants (or the Common Stock underlying the Warrants)
unless they are registered under the Act and any applicable state securities
laws or pursuant to available exemptions from such registration, provided that
the Investor delivers to the Corporation an opinion of counsel satisfactory to
the Corporation confirming the availability of such exemption. The Investor
represents that the Investor is purchasing the Common Stock for the Investor's
own account, for investment and not with a view to resale or distribution except
in compliance with the Act and the restrictions contained in the immediately
preceding sentence. The Investor has not offered or sold any portion of the
Shares or Warrants being acquired nor does the Investor have any present
intention of selling, distributing or otherwise disposing of the Shares, the
Warrants or the Common Stock underlying the Warrants, either currently or after
the passage of a fixed or determinable period of time or upon the occurrence or
nonoccurrence of any predetermined event or circumstance in violation of the
Act. The Investor acknowledges that, except as specifically set forth herein,
the Corporation has no obligation to register the resale of the Shares.

         7.9. The Investor recognizes that investment in the Common Stock
involves substantial risks, including loss of the entire amount of such
investment. Further, the Investor has carefully read and considered the matters
set forth under "Risk Factors" in the Public Reports, and has taken full
cognizance of and understands all of the risks related to a purchase of the
Common Stock.

         7.10. The Investor acknowledges that each certificate representing the
Shares or the Common Stock underlying the Warrants, until such shares are
registered under the Act, shall be stamped or otherwise imprinted with a legend
substantially in the following form:

                  THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
                  OF 1933 (THE "SECURITIES ACT") OR UNDER APPLICABLE STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND ANY
                  APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AVAILABLE
                  EXEMPTIONS FROM SUCH REGISTRATION, PROVIDED THAT THE SELLER
                  DELIVERS TO THE COMPANY AN OPINION OF COUNSEL SATISFACTORY TO
                  THE COMPANY CONFIRMING THE AVAILABILITY OF SUCH

                              Submission Agreement

                                    Page 12
<PAGE>

                  EXEMPTION. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED
                  TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
                  INDEFINITE PERIOD OF TIME.

         7.11. If this Subscription Agreement is executed and delivered on
behalf of a partnership, corporation, trust or estate: (i) such partnership,
corporation, trust or estate has the full legal right and power and all
authority and approval required (a) to execute and deliver, or authorize
execution and delivery of, this Subscription Agreement and all other instruments
executed and delivered by or on behalf of such partnership, corporation, trust
or estate in connection with the purchase of the Shares, (b) to delegate
authority pursuant to a power of attorney and (c) to purchase and hold such
Shares; (ii) the signature of the party signing on behalf of such partnership,
corporation, trust or estate is binding upon such partnership, corporation,
trust or estate; and (iii) such partnership, corporation or trust has not been
formed for the specific purpose of acquiring the Shares, unless each beneficial
owner of such entity is qualified as an "accredited investor" within the meaning
of Rule 501(a) of Regulation D under the Act ("Regulation "D") and has submitted
information substantiating such individual qualification.

         7.12. The Investor shall indemnify and hold harmless the Corporation
and each officer, director or control person of any such entity, who is or may
be a party or is or may be threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of or arising from any actual or
alleged misrepresentations or misstatement of facts or omission to represent or
state facts made or alleged to have been made by the Investor to the Corporation
(or any agent or representative of either of them) or omitted or alleged to have
been omitted by the Investor, concerning the Investor or the Investor's
authority to invest or financial position in connection with the Transactions,
including, without limitation, any such misrepresentation, misstatement or
omission contained in the Questionnaire or any other document submitted by the
Investor, against losses, liabilities and expenses actually and reasonably
incurred by the Corporation or any officer, director or control person in
connection with such action, suit or proceeding for which the Corporation or
such officer, director or control person has not otherwise been reimbursed
(including attorneys' fees, judgments, fines and amounts paid in settlement).

         7.13. Investor agrees to use commercially reasonable efforts to take
such actions as may be reasonably necessary to allow the Corporation to maintain
its status as a REIT and to reasonably refrain from taking such actions as shall
cause the Corporation to lose its status as a REIT.

8.       UNDERSTANDINGS.

         The Investor understands, acknowledges and agrees with the Corporation
as follows:

                              Submission Agreement

                                    Page 13
<PAGE>

         8.1. The Investor will be entitled to participate in the Corporation's
Dividend Reinvestment Plan to the full extent of its purchased Shares, Shares
that it has a right to purchase hereunder but has not yet purchased (the
"Unfunded Shares") and unexercised Warrants, to the extent they have not
expired. With respect to the amounts that would have been paid with respect to
the Unfunded Shares and unexercised Warrants, had the Shares been acquired, the
Investor will remit to the Corporation sufficient funds to purchase the
associated number of shares. The Investor acknowledges and agrees that the
Corporation may, at any time and in its sole discretion, suspend its Dividend
Reinvestment Plan and that the Dividend Reinvestment Plan has been so suspended
by the Corporation as of September 1, 2000.

         8.2. The Investor and Corporation acknowledge that they are
concurrently entering into a Stockholders Agreement with certain other
Corporation stockholders addressing, among other things, representation of
Investor on the board of directors of the Corporation.

         8.3. Except as otherwise specifically set forth herein, the Investor
hereby acknowledges and agrees that the Subscription hereunder is irrevocable by
the Investor, that, except as required by law, the Investor is not entitled to
cancel, terminate or revoke this Subscription Agreement.

         8.4. The offering is intended to be exempt from registration under the
Act by virtue of Section 4(2) of the Act and the provisions of Regulation D
thereunder, which is in part dependent upon the truth, completeness and accuracy
of the statements made by the Investor herein.

         8.5. The Investor acknowledges that, to the extent it has received
information that is not publicly available, if any, from or on behalf of the
Corporation in connection with this offering, such information shall be treated
as confidential and nonpublic by Investor and shall be used by Investor solely
for the purpose of evaluating its investment in the Corporation. Investor
acknowledges that any other use of such information by the Investor may be in
violation of the securities laws.

         8.6. The representations, warranties and agreements of the Investor and
the Corporation contained herein and in any other writing delivered in
connection with the transactions contemplated hereby shall be true and correct
in all respects on and as of the date of the sale of the Shares and the exercise
of any Warrants as if made on and as of such date and shall survive the
execution and delivery of this Subscription Agreement and the purchase of the
Shares.

         8.7. IN MAKING AN INVESTMENT DECISION, THE INVESTOR MUST RELY ON ITS
OWN EXAMINATION OF THE CORPORATION AND THE TERMS OF THE OFFERING, INCLUDING THE
MERITS AND RISKS INVOLVED AND THE INFORMATION SET FORTH IN THE PUBLIC REPORTS.
THE SHARES AND WARRANTS HAVE NOT BEEN RECOMMENDED, NOR HAS THERE BEEN ANY
FINDING AS TO THE FAIRNESS OF THE TERMS OF THIS OFFERING, BY ANY FEDERAL OR
STATE SECURITIES COMMISSION ON REGULATORY AUTHORITY.

                              Submission Agreement

                                    Page 14
<PAGE>

9.       MISCELLANEOUS.

9.1. Except as set forth elsewhere herein, any notice or demand to be given or
served in connection herewith shall be deemed to be sufficiently given or served
for all purposes by being sent as registered or certified mail, return receipt
requested, postage prepaid, in the case of the Corporation, addressed to it at
the address set forth below;

                    Attention:       Howard M. Sipzner
                                     Chief Financial Officer and Treasurer
                                     Equity One, Inc.
                                     1696 NE Miami Gardens Drive
                                     North Miami Beach, Florida 33179

and in the case of Investor to the address set forth below Investor's signature
on the signature page hereof.

         9.2. This Subscription Agreement shall be enforced, governed and
construed in all respects in accordance with the laws of the State of Florida,
as such laws are applied by Florida courts to agreements entered into and to be
performed in Florida by and between residents of Florida, and shall be binding
upon the Investor, the Investor's heirs, estate, legal representatives,
successors and assigns and shall inure to the benefit of the Corporation and its
respective successors and permitted assigns. If any provision of this
Subscription Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent
that it may conflict therewith and shall be deemed to be modified to conform
with such statute or rule of law. Any provision hereof that may prove invalid or
unenforceable under any law shall not affect the validity or enforceability of
any other provision hereof.

         9.3. Except with respect to sales pursuant to registration statements
that have been declared effective or sales made pursuant to Rule 144, this
Agreement and the rights granted hereunder may not be assigned, sold,
transferred, pledged, hypothecated or otherwise disposed. Notwithstanding any
other provision contained herein, the Shares may not be sold, transferred,
pledged, hypothecated or otherwise disposed of except as follows: (a) to a
person who, in the opinion of counsel to the Corporation, is a person to whom
the Shares may legally be transferred without registration and without the
delivery of a current prospectus under the Securities Act with respect thereto
and then only against receipt of an agreement of such person to comply with the
provisions of this Agreement with respect to any resale or other disposition of
such securities; or (b) to any person upon delivery of a prospectus then meeting
the requirements of the Securities Act relating to such securities and the
offering thereof for such sale or disposition, and thereafter to all successive
assignees. The rights provided under Section 5 relating to the Shares are not
assignable except to a party who is a lawful purchaser of the Shares. This
Agreement shall be binding upon and inure to the benefit of the Corporation, the
Investor and their successors and permitted assigns.

                              Submission Agreement

                                    Page 15
<PAGE>

         9.4. In any action, proceeding or counterclaim brought to enforce any
of the provisions of this Agreement or to recover damages, costs and expenses in
connection with any breach of the Agreement, the prevailing party shall be
entitled to be reimbursed by the opposing party for all of the prevailing
party's attorneys' fees, costs and other out-of-pocket expenses incurred in
connection with such action, proceeding or counterclaim.

         9.5. All references to "dollars" or "$" in this Agreement shall be
deemed to be to the lawful currency of the United States of America.

         9.6. The parties hereto shall be entitled to enforce their rights under
this Subscription Agreement specifically, to recover damages by reason of any
breach of any provision of this Subscription Agreement and to exercise all other
rights existing in their favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Subscription Agreement and that the Corporation and the Investor may in
their sole discretion apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive relief (without posting
a bond or other security) in order to enforce or prevent any violation of the
provisions of this Subscription Agreement.

         10. Each party hereto shall bear its own fees and expenses relating to
the transactions contemplated herein, except as otherwise specifically set
forth.

                                Equity One, Inc.

                                By: /s/ CHAIM KATZMAN
                                    ---------------------------------------
                                Name:  CHAIM KATZMAN
                                Title: PRESIDENT

                                Alony Hetz Properties & Investments, Ltd.

                                By: /s/ NATHAN HETZ
                                    ----------------------------------------
                                Name:  NATHAN HETZ
                                Title: CHIEF EXECUTIVE OFFICER
                                Address:

                                --------------------------------------------

                                --------------------------------------------

                              Submission Agreement

                                    Page 16

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