Document:

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                                                                   Exhibit 10.27

                    SETTLEMENT AGREEMENT AND GENERAL RELEASE

     This Settlement Agreement and General Release (the "Agreement") is made by
and between Devasis Ghose ("Executive") and Health Care Property Investors, Inc.
("HCPI" or the "Company") as of the Execution Date (as hereinafter defined). The
parties to this Agreement are collectively referred to as the "Parties" and
singularly as a "Party."

                                    RECITALS

     WHEREAS, Executive is currently employed by HCPI as a Senior Vice
President, Finance and Treasurer; and

     WHEREAS, HCPI and Executive desire to establish the terms and conditions of
Executive's employment during the period from January 25, 2003 through February
28, 2003 and provide severance benefits; and

     WHEREAS, Executive and HCPI desire to resolve fully and finally any
disagreements between them, and any claims which Executive has made or could
have made against HCPI, its agents, employees, predecessors, successors,
parents, affiliates, divisions, subsidiaries, or any of them, in accordance with
the terms and conditions set forth herein.

                                    AGREEMENT

     NOW THEREFORE, in consideration of the recitals set forth above and the
obligations assumed by each Party under this Agreement, the Parties hereby agree
as follows:

     1.   Executive's Employment

     Executive shall continue to be employed by HCPI in his current position
Senior Vice President, Finance and Treasurer until February 15, 2003, and shall
continue to be an employee through February 28, 2003, at which time his
employment shall terminate. During the period between January 25, 2003 and
February 28, 2003, Executive shall be available as and if needed to perform such
duties as directed by Kenneth B. Roath, Chairman and Chief Executive of HCPI

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("Roath"). Executive shall not perform any duties not specifically directed by
Roath. During the remainder of Executive's employment, he shall continue to be
covered under the Company's medical, dental, vision, life and disability
insurance plans, and shall continue to participate in the Company's 401(k) plan.
Executive shall accrue no vacation time after January 24, 2003. Executive's
compensation for any work performed during said period shall be paid as part of
the Severance Payment set forth in Section 5, below.

     2.   Return of Company Property

     Executive shall vacate and return all keys to the office located at 4675
MacArthur Court, Suite 900, Newport Beach, California 92660, on or before
February 15, 2003.

     3.   Payment of Wages

     Executive acknowledges that he has received all wages due and owing to him
through January 24, 2003, including without limitation, any accrued, unused
vacation pay.

     4.   2002 Bonus

     Executive shall receive a bonus for 2002 in the amount of $109,000. Such
Bonus shall be paid to Executive as part of the Severance Payment set forth in
Section 5, below.

     5.   Severance Payment and Benefits

     A.   Executive shall be paid severance pay in the gross amount of $401,035
(the "Severance Payment"). The Severance Payment includes payment for services
rendered to the company from January 25, 2003 through February 28, 2003 as set
forth in Section 1 above, the 2002 bonus set forth in Section 4 above, and
payment for any dividends on unvested stock. The Severance Payment shall be
subject to withholding in accordance with applicable law. This payment shall be
made in full in one installment on the eighth (8th) day following Executive's
execution and delivery to HCPI of an executed copy of this Agreement, provided
that Executive does not revoke the Agreement.

     B.   Health Care Coverage under COBRA. Executive's health care coverage

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under the Company's benefit plans will expire as of February 28, 2003.
Thereafter, if Executive timely elects to continue his health care coverage in
accordance with COBRA, forms for which will be separately provided, and
Executive executes and does not revoke this Agreement, HCPI will pay that
percentage of Executive's and his eligible dependents' COBRA payments equal to
the percentage of Executive's and his eligible dependents' health care insurance
paid by the Company as of January 24, 2003, for the period beginning March 1,
2003 and ending on the earlier of January 31, 2004, or such time as Executive is
ineligible for COBRA coverage. In the event Executive does not execute this
Agreement and/or the revocation period has not expired before the date on which
one or more payments is due for such coverage, but timely executes and does not
revoke this Agreement thereafter, Executive shall make any such payments, but
shall be timely reimbursed by the Company. For purposes of this Agreement,
Executive's health care coverage includes medical, dental and vision coverage
for Executive and his eligible dependents.

     C.   Outplacement

     The Company has arranged for Lee Hecht Harrison and Challenger, Gray &
Christmas to provide outplacement services to Executive. Executive may choose
which of these providers he will use. The Company will pay up to $20,000.00
towards such services. In the event Executive desires additional services, such
service shall be at his own expense. Any amount of the $20,000 that remains
unused will be paid to the Executive as an additional severance payment.

     D.   Restricted Stock Grants and Stock Options

     Executive received grants of stock options pursuant to agreements dated
January 27, 1994, January 18, 1995, January 24, 1997, January 28, 1998, February
3, 1999, January 4, 2000, January 18, 2001, and January 2, 2002, and grants of
restricted stock pursuant to agreements dated January 28, 1998, February 3,
1999, January 27, 2000, January 18, 2001, and January 2, 2002 (the "Stock
Agreements"). The Parties agree that Executive shall retain grants of restricted
stock and stock options awarded under the Stock Agreements, as follows:

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          (i)  Stock Options. Stock options awarded to Executive under the Stock
Agreements shall continue to vest until and including February 6, 2003. All
vested stock options may be exercised by Executive in accordance with the terms
and conditions set forth in the applicable Stock Agreements. For purposes of the
Stock Agreements, Executive's separation from the Company shall be considered a
termination without cause. The stock options that will vest on or before
February 6, 2003, are summarized in the table attached hereto as Attachment A.
Executive understands and agrees that he has no further rights under the Stock
Agreements to any stock options that will not vest on or before February 6,
2003. Notwithstanding any contrary provisions of the Stock Agreements, the
exercise dates for 15,000 stock options at $36.625 per share granted pursuant to
the January 24, 1997 Stock Agreement and 28,000 stock options at $38.625 per
share granted pursuant to the January 28, 1998 Stock Agreement, are hereby
extended to and including January 23, 2007 and January 27, 2008, respectively.

          (ii) Grants of Restricted Stock. The Company hereby waives any option
to repurchase all shares of restricted stock granted to Executive under the
Stock Agreements, for which the Company's option to repurchase would expire on
or before February 6, 2003 (the "Executive's Shares"). The Executive's Shares
are summarized in the table attached hereto as Attachment A. The Executive's
Shares shall be delivered to Executive on the eighth (8th) day following
Executive's execution of this Agreement, provided that Executive does not revoke
the Agreement. Executive understands and agrees that the Company shall be deemed
to have exercised its option to repurchase all shares of restricted stock for
which the Company's option to repurchase will not have expired on or before
February 6, 2003.

          6.   Sole Financial Obligation

          The compensation and benefits provided for under paragraphs 1, 4 and 5
shall constitute the sole and exclusive financial obligation of HCPI to
Executive under this Agreement.

          7.   Executive's General Release of Known and Unknown Claims

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          A.   For valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Executive and (as the case may be) his estate, descendants,
spouse, dependents, heirs, executors, administrators, successors, and assigns
(the "Executive Releasors"), do hereby release and forever discharge HCPI and
(as the case may be) its affiliates, parent companies, subsidiaries, and each of
their respective divisions, groups, business units, associates, owners,
stockholders, predecessors, successors, heirs, assigns, agents, trustees,
directors, officers, partners, employees, representatives, lawyers, and all
persons acting by, through, under or in concert with them, or any of them (the
"HCPI Releasees"), of and from any and all action or actions, cause or causes of
action, in law or in equity, suits, debts, liens, contracts, agreements,
promises, liability, claims, demands, damages, loss, cost or expense, of any
nature whatsoever, known or unknown, fixed or contingent ("Executive Claims"),
which the Executive Releasors now have or at any time heretofore have had
against the HCPI Releasees, or any of them, by reason of any act, cause, matter
or thing whatsoever from the beginning of time to the Effective Date (as
hereinafter defined), provided, however, that this release shall not affect (a)
any right of indemnity that Executive may have for actions taken in the course
of his employment, (b) Executive's right to disposition of the assets of his
401k account in accordance with plan rules, (c) Executive's right to exercise
vested stock options and retain grants of restricted stock under the Stock
Agreements in accordance with paragraph 5(D), above, or (d) Executive's right to
obtain Unemployment Insurance Compensation.

          Executive acknowledges that he is aware of the Older Workers Benefit
Protection Act, under which he has the following rights:

          (A)  EXECUTIVE HAS BEEN ADVISED TO CONSULT AN ATTORNEY BEFORE SIGNING
THIS AGREEMENT;

          (B)  THE CONSIDERATION PROVIDED TO EXECUTIVE UNDER THIS AGREEMENT IS
IN ADDITION TO ANYTHING OF VALUE TO WHICH HE WAS ALREADY ENTITLED;

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          (C)  THIS AGREEMENT IS WRITTEN IN A MANNER CALCULATED TO BE UNDERSTOOD
BY EXECUTIVE, AND HE UNDERSTANDS ITS TERMS;

          (D)  EXECUTIVE HAS TWENTY ONE (21) DAYS FROM THE DATE OF HIS RECEIPT
OF THIS AGREEMENT TO CONSIDER THIS AGREEMENT BEFORE SIGNING IT; AND

          (E)  EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS AGREEMENT TO
REVOKE IT; AND THIS AGREEMENT WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THE
REVOCATION PERIOD.

          If Executive does not execute and deliver an executed copy of this
Agreement to HCPI on or before 5:00 p.m. on the twenty-first day after his
receipt of this Agreement, the offer made herein is revoked. If, after executing
this Agreement, Executive wishes to revoke this Agreement he shall deliver
written notice of such revocation to Ed Henning, Senior Vice President, General
Counsel and Corporate Secretary of HCPI on or before 5:00 p.m. on the seventh
(7/th/) day after his execution of this Agreement.

          B.   Except as expressly provided in this Agreement, the Executive
Claims released herein include, without limiting the generality of the
foregoing, any claims in any way arising out of, based upon, or related to the
facts which have been or could have been alleged against HCPI, or any matters
arising out of, based upon, or related to Executive's employment or remuneration
at, or his hire by or termination from HCPI, including without limitation any
claims arising out of any other written instrument, agreement or plan purporting
to award, transfer, convey, confer or grant Executive any stock or stock options
in the Company of any type or character whatsoever; any alleged breach of any
express or implied employment agreement between Executive and HCPI; any alleged
breach of any covenant of good faith and fair dealing, express or implied; any
alleged torts or other alleged legal restrictions on HCPI's right to terminate
Executive's employment; and any alleged violation of any federal, state or local
statute, regulation

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or ordinance including, without limitation, Title VII of the Civil Rights Act of
1964, as amended; the Civil Rights Act of 1866, as amended; the Civil Rights Act
of 1991, as amended; the Equal Pay Act, as amended; the Fair Labor Standards
Act, as amended; the Labor Management Relations Act, as amended; the National
Labor Relations Act, as amended; the Consolidated Omnibus Budget Reconciliation
Act of 1986, as amended; the Employee Retirement Income Security Act, as
amended; the Age Discrimination in Employment Act, as amended; the Americans
with Disabilities Act, as amended; the Family Medical Leave Act, as amended; the
Federal False Claims Act, as amended; the Fair Credit Reporting Act, as amended;
any applicable collective bargaining agreements; the California Fair Employment
and Housing Act, as amended; the California Family Rights Act, as amended; the
California Labor Code; and/or any other local, state or federal law, regulation
or ordinance governing or relating to the employment relationship.

          C.   Executive acknowledges that he has been advised by legal counsel
about and is familiar with the provisions of California Civil Code Section 1542,
which provides as follows:

          A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
          NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
          RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
          SETTLEMENT WITH THE DEBTOR

          Executive, being aware of said code section, hereby expressly waives
any rights he may have thereunder, as well as under any other statutes or common
law principles of similar effect. Executive acknowledges that he understands the
significance and consequence of his release and specific waiver of Section 1542.
Executive affirms that this waiver of Section 1542 is not a mere recital.
Rather, it is a specifically bargained-for provision of this Agreement.
Executive affirms that he is aware that HCPI would not have entered into this
Agreement but for his agreement to a full waiver of all claims of any type and
description, including unknown claims. The Parties have

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included this waiver of Section 1542 in this Agreement in order to procure
certainty in their affairs.

          D.   Executive represents and warrants that there has been no
assignment or other transfer of any interest in any Executive Claim which he may
have against the HCPI Releasees, or any of them, and Executive agrees to
indemnify and hold the HCPI Releasees, and each of them, harmless from any
liability, Executive Claims, demands, damages, costs, expenses and attorneys'
fees incurred by HCPI Releasees, or any of them, as a result of any person
asserting any such assignment or transfer. It is the intention of the Parties
that this indemnity does not require payment as a condition precedent to
recovery by the HCPI Releasees against Executive under this indemnity.

          E.   Executive agrees that if he hereafter commences, joins in, or in
any manner seeks relief through any suit arising out of, based upon, or relating
to any of the Executive Claims released hereunder, or in any manner asserts
against the HCPI Releasees, or any of them, any of the Executive Claims released
hereunder, then Executive shall pay to the HCPI Releasees, and each of them, in
addition to any other damages caused to the HCPI Releasees thereby, all
attorneys' fees incurred by the HCPI Releasees in defending or otherwise
responding to said suit or Executive Claim. Provided, however, that this
Paragraph E shall not apply to any claim or action to the extent such claim or
action is to challenge the validity of the waiver or release with respect to
claims under the Age and Discrimination in Employment Act, as amended.

          8.   HCPI's Release of Known and Unknown Claims

          A.   For valuable consideration, the receipt and adequacy of which are
hereby acknowledged, HCPI and its affiliates, parent companies, subsidiaries,
and, to the extent HCPI has the authority to do so, each of their respective
divisions, groups, business units, associates, owners, stockholders,
predecessors, successors, heirs, assigns, agents, trustees, directors, officers,
partners, employees, representatives, lawyers, and all persons acting by,
through, under or in concert with them, or any of them (the "HCPI Releasors"),
do hereby release and forever discharge Executive of and from any and all action
or actions, cause or causes of action, in law or in equity, suits, debts,

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liens, contracts, agreements, promises, liability, claims, demands, damages,
loss, cost or expense, of any nature whatsoever, known or unknown, fixed or
contingent ("HCPI Claims"), which the HCPI Releasors now have or heretofore have
had against Executive, by reason of any act, cause matter or thing whatsoever
from the beginning of time to the Effective Date (as hereinafter defined).

          B.   HCPI acknowledges that it has been advised by legal counsel about
and is familiar with the provisions of California Civil Code Section 1542, which
provides as follows:

          A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
          NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
          RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
          SETTLEMENT WITH THE DEBTOR

          HCPI, being aware of said code section, hereby expressly waives any
rights it may have thereunder, as well as under any other statutes or common law
principles of similar effect. HCPI acknowledges that it understands the
significance and consequence of its release and specific waiver of Section 1542.
HCPI affirms that this waiver of Section 1542 is not a mere recital. Rather, it
is a specifically bargained-for provision of this Agreement. HCPI affirms that
it is aware that Executive would not have entered into this Agreement but for
its agreement to a full waiver of all claims of any type and description,
including unknown claims. The Parties have included this waiver of Section 1542
in this Agreement in order to procure certainty in their affairs.

          D.   HCPI represents and warrants that there has been no assignment or
other transfer of any interest in any HCPI Claim which it may have against
Executive, and HCPI agrees to indemnify and hold Executive harmless from any
liability, HCPI Claims, demands, damages, costs, expenses and attorneys' fees
incurred by Executive as a result of any person asserting any such assignment or
transfer. It is the intention of the Parties that this indemnity does not
require

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payment as a condition precedent to recovery by Executive against HCPI under
this indemnity.

          E.   HCPI agrees that if it hereafter commences, joins in, or in any
manner seeks relief through any suit arising out of, based upon or relating to
any of the HCPI Claims released hereunder, or in any manner asserts against
Executive any of the HCPI Claims released hereunder, then HCPI shall pay to
Executive, in addition to any other damages caused to Executive thereby, all
attorneys' fees incurred by Executive in defending or otherwise responding to
said suit or HCPI Claim.

          9.   References

          All requests for references regarding Executive shall be directed to
HCPI human resources department and HCPI shall respond to any such requests with
Executive's dates of employment and job title(s). No other information shall be
provided. Executive shall have the right to review and comment upon any press
release issued by HCPI regarding Executive's departure from HCPI.

          10.  No Admission of Liability

          It is understood and agreed that this Agreement is the compromise of
doubtful and disputed claims, and that HCPI contends that Executive has suffered
no injury and incurred no damages as a result of the alleged acts or omissions
of HCPI, and denies liability in any fashion to Executive. Executive and HCPI
enter into this Agreement solely to settle the doubtful and disputed claims
between them and to avoid further costs and litigation. Neither the execution of
this Agreement, nor the performance of any term hereof, including payment of any
sum of money, shall constitute, be construed as or be deemed an admission of any
liability, wrongdoing or culpability whatsoever by HCPI or by Executive,
including without limitation any violation of federal, state or local law,
ordinance or regulation, or any violation of HCPI's policies or procedures.

          11.  Assumption of Risk

          Each of the Parties fully understands that if any fact with respect to
any matter

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covered by this Agreement is found hereafter to be other than, or different
from, the facts now believed by any of the Parties to be true, each of the
Parties expressly accepts and assumes the risk of such possible difference in
fact and agrees that the release provisions hereof shall be and remain effective
notwithstanding any such difference in fact. This Agreement shall not be subject
to attack on the ground that any or all of the legal theories or factual
assumptions used for negotiating purposes are for any reason inaccurate or
inappropriate.

          12.  Indemnification of Executive

          Nothing in this Agreement shall affect Executive's right to
indemnification for actions taken in the scope of his employment, as required by
Labor Code Section 2802 and applicable provisions of the California Corporations
Code. To this end, HCPI will to the fullest extent permitted by applicable law,
indemnify Executive and hold Executive harmless for any acts, omissions, or
decisions made in good faith while performing services for HCPI or any affiliate
of HCPI, and shall for a period of five (5) years following his termination from
employment, provide Executive with coverage under any liability insurance policy
or policies that cover directors and/or officers of the Company. To the same
extent, HCPI will pay all expenses, including reasonable attorneys' fees and
cost of court approved settlements, actually and necessarily incurred by
Executive in connection with the defense of any action, suit or proceeding and
in connection with any appeal thereon, which are brought against Executive by
reason of his service as an officer or agent of HCPI or any affiliate of HCPI.
Executive shall notify the general counsel of HCPI of any claim as to which he
claims any right to indemnification as soon as practicable after becoming aware
of such claim. Executive shall not enter into any settlement or make any
settlement offer with respect to any claim as to which he claims any right to
indemnification without the prior authorization of HCPI.

          13.  Arbitration

          The Parties hereby agree to submit any claim or dispute arising out of
or relating to

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the terms of this Agreement as to Executive's employment or the termination
thereof or to private and confidential arbitration by a single neutral
arbitrator selected and agreed jointly by counsel for the Company and Executive.
Subject to the terms of this paragraph, the arbitration proceedings shall be
governed by the rules of the American Arbitration Association applicable to
employment disputes as they may be in effect from time to time, and shall take
place in Orange County California. The arbitrator shall be appointed by
agreement of the Parties hereto or, if no agreement can be reached, by the
American Arbitration Association pursuant to its rules. The decision of the
arbitrator shall be rendered in writing and be final and binding on all Parties
to this Agreement, and judgment thereon may be entered in any court having
jurisdiction. All costs of the arbitration proceeding, including attorneys' fees
and witness expenses, shall be paid by the Party against whom the arbitrator
rules. This arbitration procedure is intended to be the sole and exclusive
method of resolving any claim for breach of this Agreement.

          14.  Construction of Agreement

          This Agreement shall be construed as a whole in accordance with its
fair meaning and in accordance with the laws of the State of California. The
language of this Agreement shall not be construed for or against any particular
Party. Each and every covenant, term, provision and agreement herein contained
shall be binding upon and inure to the benefit of the successors and assigns of
the Parties. The headings used herein are for reference only and shall not
affect the construction of this Agreement.

          15.  Sole Agreement

          This Agreement constitutes and contains the sole and entire agreement
between the Parties and supersedes all prior agreements, negotiations and
discussions between the Parties and/or their respective counsel with respect to
the subject matters covered hereby. No other agreements, covenants,
representations or warranties, express or implied, oral or written, have been
made by any of the Parties concerning the subject matter hereof. This is an
integrated agreement. Although the

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termination of employment provided for in this Agreement may affect the Parties'
rights thereunder, this Agreement shall not be deemed to modify or supersede any
of the terms of the Stock Option or Restricted Stock Grant agreements governing
stock options or restricted stock granted on: January 27, 1994, January 18,
1995, January 27, 1997, January 28, 1998, February 3, 1999, January 4, 2000,
January 27, 2000, January 18, 2001, and January 2, 2002, except as specifically
discussed in Section 5D. Moreover, this Agreement shall not be deemed to
supersede or modify Executive's obligations under the Company's Statement of
Policies and Procedures Governing the Disclosure of Confidential Information and
the Prevention of Insider Trading that were acknowledged by Executive on April
30, 2002, and shall continue after termination of her employment.

          16.  Severability

          In the event that any one or more of the provisions contained in this
Agreement shall, for any reason, be held to be invalid, void, illegal or
unenforceable in any respect, such invalidity, voidness, illegality or
unenforceability shall not affect any other provision of this Agreement, and the
remaining portions shall remain in full force.

          17.  Amendment to Agreement

          Any amendment to this Agreement must be in a writing signed by duly
authorized representatives of the Parties and stating the intent of the Parties
to amend this Agreement. No breach of any provision of this Agreement shall be
deemed waived unless the waiver is in writing signed by a duly authorized
representative of the waiving Party. Waiver of any one breach shall not be
deemed a waiver of any other breach of the same or any other provision of this
Agreement.

          18.  Representation by Counsel

          Each Party acknowledges representation by counsel (or the opportunity
to be so represented) throughout all negotiations which preceded the execution
of this Agreement. Each Party acknowledges that no person or entity, including
but not limited to a Party or agent or attorney

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of any other Party, has made any promise, representation, or warranty, express
or implied, not contained in this Agreement, to induce the other Party to
execute this Agreement. Each Party has read the foregoing Agreement, accepts and
agrees to the provisions it contains, and hereby executes it voluntarily with
full understanding of its consequences.

          19.  Party Cooperation

          The Parties agree to cooperate fully and to execute any and all
supplementary documents and to take any and all additional actions that may be
necessary or appropriate to give full force to the basic terms and intent of
this Agreement.

          20.  Execution Date

          The Execution Date of this Agreement shall be the date of the last
signature placed hereon. This Agreement may be executed in counterparts, all of
which, when taken together, shall constitute one agreement, with the same force
and effect as if all signatures had been entered on one document.

          IN WITNESS WHEREOF, the Parties have executed this Agreement on the
dates indicated below.

____________________________                HEALTH CARE PROPERTY INVESTORS, INC.

  /s/ Devasis Ghose                         By: /s/ Edward J. Henning
-----------------------                        ----------------------------
Devasis Ghose                                     Edward J. Henning

Date: February 10, 2003                     Its:  Senior Vice President,
                                                  General Counsel and
                                                  Corporate Secretary

                                            Date: February 10, 2003

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                                  Attachment A
                  Options vested on or before February 3, 2003

   Grant date            # of options          Strike Price
   ----------            ------------          ------------
        1/27/1994                   800                  29.13
        1/18/1995                 1,080                 28.375

        1/24/1997                15,000                 36.625

        1/28/1998                28,000                 38.625
         2/3/1999                 9,200                  27.75
         1/4/2000                15,000                 23.875
        1/18/2001                11,000                 32.062
         1/2/2002                20,000                  35.85
                        ---------------
                                100,080
                        ===============

Grants vesting between January 25, 2003 and February 3, 2003

   Grant date            Vesting Date          # of grants
   ----------            ------------          -----------
        1/27/2000             1/27/2003               1,400
        1/28/1998             1/28/2003                 460
         2/3/1999              2/3/2003                 800

                                       15Exhibit 4.1

                                Equity One, Inc.

                                  Successor to

                              IRT PROPERTY COMPANY,
                                     Issuer

                                       and

                                       the

                                   Guarantors
                SET FORTH ON THE SIGNATURE PAGES ATTACHED HERETO

                                       to

                                  SUNTRUST BANK

                                     Trustee

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

                          Supplemental Indenture No. 5

                          Dated as of february 12, 2003

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

                                 ASSUMPTION AND
                       GUARANTEE OF SENIOR DEBT SECURITIES

<PAGE>

     SUPPLEMENTAL  INDENTURE  NO.  5,  dated  as  of  February  12,  2003  (this
"Supplemental Indenture"),  among Equity One, Inc., a corporation duly organized
and  existing  under  the laws of the State of  Maryland  (the  "Company"),  IRT
Property  Company,  a corporation  duly organized and existing under the laws of
the State of Georgia ("IRT"),  each of the Guarantors set forth on the signature
pages attached hereto (the  "Guarantors"),  and SunTrust Bank (formerly known as
SunTrust  Bank,  Atlanta),  a Georgia  banking  corporation  duly  organized and
existing under the laws of the State of Georgia, as Trustee (the "Trustee").

                                 R E C I T A L S
                                 ---------------

     WHEREAS,  IRT and the Trustee  have  heretofore  entered  into an Indenture
dated as of November 9, 1995 (as amended,  supplemented  or  otherwise  modified
through the date hereof,  the "Indenture"),  a form of which has been filed with
the  Securities  and Exchange  Commission  under the  Securities Act of 1933, as
amended, as an exhibit to IRT's Registration Statement on Form S-3 (Registration
No.  33-63523),  providing  for the  issuance  from time to time of senior  debt
securities of IRT (the "Securities");

     WHEREAS,  on or about the date hereof IRT shall be merged with and into the
Company with the Company  surviving  such merger  pursuant to the  Agreement and
Plan of Merger  dated as of October  28,  2002  between the Company and IRT (the
"Merger Agreement");

     WHEREAS,  Section 801 of the  Indenture  permits IRT to merge with and into
another  Person  if  the  successor   entity  shall  expressly   assume  certain
obligations  of IRT under the Indenture and the Company  desires to so expressly
assume such obligations;

     WHEREAS,  the  Guarantors  will provide the guaranty  herein set forth (the
"Guaranty") of the Obligations (as defined herein);

     WHEREAS,  Sections  901(1) and 901(9) of the Indenture  permits the Company
and the  Trustee to enter  into  indentures  supplemental  thereto  without  the
consent of any Holder of Securities to evidence the succession of the Company to
IRT and the assumption herein set forth and to make any change to the Indenture,
provided that such change does not adversely affect the interests of the Holders
of Securities of any series or any related coupons in any material respect;

     WHEREAS,  each  Guarantor has determined  that its execution,  delivery and
performance of this Supplemental  Indenture directly benefit, and are within the
purposes and best interests of, the Guarantor;

     WHEREAS,  the Board of  Directors  of IRT and the Board of Directors of the
Company has each duly adopted resolutions authorizing the Company to execute and
deliver this  Supplemental  Indenture and the Board of Directors (or  equivalent
governing body) of each Guarantor has duly adopted resolutions  authorizing such
Guarantor to execute and deliver this Supplemental Indenture; and

     WHEREAS,  all other  conditions  and  requirements  necessary  to make this
Supplemental  Indenture,  when duly executed and delivered,  a valid and binding
agreement in accordance  with its terms and for the purposes  herein  expressed,
have been performed and fulfilled.
<PAGE>

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     Upon the  effectiveness  of the  merger  of IRT  with and into the  Company
pursuant  to  the  Merger   Agreement  (the  "Effective   Time"),   for  and  in
consideration  of the premises and other good and  valuable  consideration,  the
receipt and  sufficiency of which is hereby  acknowledged,  the Company and each
Guarantor agrees as follows:

                                   ARTICLE ONE
                                   DEFINITIONS

     SECTION 1.1. Definitions.  For all purposes of this Supplemental Indenture,
except as  otherwise  expressly  provided  for or unless the  context  otherwise
requires:

          (a)  capitalized  terms  used but not  defined  herein  shall have the
respective meanings assigned to them in the Indenture; and

          (b) all  references  herein  to  Articles  and  Sections  refer to the
corresponding Articles and Sections of this Supplemental Indenture.

          (c)  as  used  herein,   "Obligations"   means  (x)  all  payment  and
performance  obligations  of IRT (i) under the  Indenture  with  respect  to the
Securities,  (ii) under the  Securities and (iii) as a result of the issuance of
the  Securities  and (y) the  obligation to pay an amount equal to the amount of
any and all  damages  which the  Trustee and the  Holders,  or any of them,  may
suffer  by  reason  of a  breach  by  either  IRT or any  other  obligor  of any
obligation,  covenant or undertaking under (i) the Indenture with respect to the
Securities or (ii) the Securities.

                                   ARTICLE TWO
                            ASSUMPTION OF OBLIGATIONS

     SECTION 2.1.  Express  Assumption.  From and after the Effective  Time, the
Company hereby  expressly  assumes the due and punctual payment of the principal
of (and premium or Make-Whole  Amount,  if any) and any interest  (including all
Additional  Amounts,  if any, payable pursuant to Section 1011 of the Indenture)
on all of the  Securities,  according to their  tenor,  and the due and punctual
performance  and  observance  of all  of the  covenants  and  conditions  of the
Indenture to be performed by the Company.  Upon such assumption,  all references
to "the Company" in the  Indenture and in any Security  shall be deemed to refer
to Equity One, Inc., a Maryland corporation, as successor by merger to IRT.

     SECTION 2.2. No Default.  The Company and IRT hereby  represent and warrant
that at the  Effective  Time no Events of  Default,  and no event  which,  after
notice or the lapse of time or both, would become an Event of Default, under the
Indenture has occurred and is continuing.

                                  ARTICLE THREE
                                    GUARANTY

     SECTION 3.1. Guaranty. Each Guarantor hereby unconditionally  guarantees to
the Trustee and the Holders full and prompt  payment and  performance  when due,
whether at

                                       2
<PAGE>

maturity,  by acceleration  or otherwise,  of all  Obligations.  Each Obligation
shall rank pari passu with each other Obligation.

     SECTION  3.2.  Obligations  Several.  Regardless  of whether  any  proposed
Guarantor  or any other  Person or Persons is, are or shall  become in any other
way  responsible  to the  Trustee  and the  Holders,  or any of them,  for or in
respect of the Obligations or any part thereof, and regardless of whether or not
any  Person or Persons  now or  hereafter  responsible  to the  Trustee  and the
Holders, or any of them, for the Obligations or any part thereof,  whether under
the Guaranty or otherwise,  shall cease to be so liable,  each Guarantor  hereby
declares and agrees that the Guaranty  provided thereby is and shall continue to
be a several obligation (as well as a joint one), shall be a continuing guaranty
and shall be operative  and binding on such  Guarantor.  Each  Guarantor  hereby
agrees  that it will not  exercise  any  rights  which it may  acquire by way of
subrogation  under the  Guaranty,  by any payment made  hereunder or  otherwise,
unless and until all of the  Obligations  shall  have been paid in full.  If any
amount shall be paid to any Guarantor on account of such  subrogation  rights at
any time when all of the  Obligations  shall  not have  been paid in full,  such
amount shall be held in trust for the benefit of the Trustee and the Holders and
shall  forthwith  be paid to the  Trustee to be credited  and  applied  upon the
Obligations,  whether matured or unmatured,  in accordance with the terms of the
Indenture, but subject to the provisions of Section 3.8 hereof.

     SECTION  3.3.  Guaranty  Final.  Upon the  execution  and  delivery of this
Supplemental Indenture by the parties hereto and the occurrence of the Effective
Time, this  Supplemental  Indenture  shall be deemed to be finally  executed and
delivered  by the parties  hereto and shall not be subject to or affected by any
promise or condition  affecting or limiting any  Guarantor's  liability,  and no
statement, representation,  agreement or promise on the part of the Trustee, the
Holders,  the Company,  IRT, or any of them,  or any officer,  employee or agent
thereof,  unless contained herein forms any part of this Supplemental  Indenture
or has  induced  the  making  hereof or shall be deemed in any way to affect any
Guarantor's  liability hereunder.  The Guarantors'  obligations  hereunder shall
remain in full force and effect  until all  Obligations  shall have been paid in
full.

     SECTION 3.4. Amendment and Waiver. This Supplemental Indenture shall not be
amended unless such amendment (i) complies with the terms of the Indenture, (ii)
is in writing and (iii) is executed by each of the parties hereto. No alteration
or waiver of this Supplemental  Indenture or of any of its terms,  provisions or
conditions  shall be binding upon the parties against whom enforcement is sought
unless made in writing and signed by an authorized  officer of such party or its
general partner, as applicable.

     SECTION 3.5.  Dealings With the Company.  The Company,  the Trustee and the
Holders,  or any of  them,  may,  from  time to  time,  without  exonerating  or
releasing any Guarantor in any way under the Guaranty,  (i) take such further or
other  security or  securities  for the  Obligations  or any part thereof as the
Trustee and the Holders,  or any of them, may deem proper,  consistent  with the
Indenture, or (ii) release, discharge, abandon or otherwise deal with or fail to
deal  with any  Guarantor  of the  Obligations  or any  security  or  securities
therefor  or any part  thereof  now or  hereafter  held by the  Trustee  and the
Holders,  or any of them,  as the Trustee and the Holders,  or any of them,  may
deem  proper,  consistent  with  the  Indenture,  or (iii)  consistent  with the
Indenture,  amend, modify, extend,  accelerate or waive in any manner any of the

                                       3
<PAGE>

provisions, terms, or conditions of the Indenture and the Securities, all as the
Company,  the Trustee and the Holders, or any of them, may consider expedient or
appropriate  in their sole  discretion.  Without  limiting the generality of the
foregoing,  or of Section 3.6 hereof,  it is  understood  that the Company,  the
Trustee and the Holders,  or any of them, may, without  exonerating or releasing
any Guarantor, give up, or modify or abstain from perfecting or taking advantage
of any  security  for the  Obligations  and accept or make any  compositions  or
arrangements,  and realize upon any security for the  Obligations  when,  and in
such manner, as the Trustee and the Holders, or any of them, may deem expedient,
consistent with the Indenture, all without notice to any Guarantor.

     SECTION 3.6. Guaranty Unconditional. Each Guarantor acknowledges and agrees
that no change in the nature or terms of the  Obligations,  the Indenture or the
Securities, or other agreements, instruments or contracts evidencing, related to
or  attendant  with  the   Obligations   (including   any  novation),   nor  any
determination of lack of enforceability thereof, shall discharge all or any part
of the liabilities  and obligations of such Guarantor  pursuant to the Guaranty;
it being the purpose and intent of the Guarantors,  the Company, the Trustee and
the Holders that the covenants,  agreements and all  liabilities and obligations
of the Guarantors  hereunder are absolute,  unconditional  and irrevocable under
any and all  circumstances.  Without  limiting the  generality of the foregoing,
each  Guarantor  agrees  that  until  each and  every one of the  covenants  and
agreements of this Supplemental  Indenture is fully performed,  such Guarantor's
undertakings hereunder shall not be released, in whole or in part, by any action
or thing which  might,  but for this Section 3.6, be deemed a legal or equitable
discharge  of a surety or  guarantor,  or by reason of any waiver or omission of
the Company,  the Trustee and the Holders,  or any of them,  or their failure to
proceed  promptly or  otherwise,  or by reason of any action taken or omitted by
the Company,  the Trustee and the Holders,  or any of them,  whether or not such
action or failure to act varies or increases  the risk of, or affects the rights
or remedies of, such  Guarantor or by reason of any further  dealings  among the
Company,  the Trustee and the Holders, or any of them, or any other guarantor or
surety, and each Guarantor hereby expressly waives and surrenders any defense to
its liability hereunder, or any right of counterclaim or offset of any nature or
description which it may have or which may exist based upon, and shall be deemed
to have consented to, any of the foregoing acts, omissions,  things,  agreements
or waivers.

     SECTION 3.7. Bankruptcy.  Each Guarantor agrees that upon the bankruptcy or
winding up or other  distribution  of assets of the Company or any Subsidiary of
the Company (other than such  Guarantor) or of any other  Guarantor or surety or
guarantor for the Obligations, the rights of the Trustee and the Holders, or any
of them,  against  such  Guarantor  shall not be  affected  or  impaired  by the
omission of the Trustee or the  Holders,  or any of them,  to prove its or their
claim, as appropriate, or to prove its or their full claim, as appropriate,  and
the  Trustee  and the  Holders  may  prove  such  claims as they see fit and may
refrain from proving any claim and in their respective discretion they may value
as they see fit or refrain from valuing any security held by the Trustee and the
Holders,  or any of them,  without in any way  releasing,  reducing or otherwise
affecting  the  liability to the Trustee and the Holders of such  Guarantor.  If
acceleration  of the time for payment of any amount payable by the Company under
the  Indenture or the  Securities  of any series is stayed upon the  insolvency,
bankruptcy or reorganization of the Company,  all such amounts otherwise subject
to  acceleration  under the terms of the  Indenture  or the  Securities  of that
series shall  nonetheless  be payable by each Guarantor  hereunder  forthwith on
demand by the  Trustee  made at the  written  request of the Holders of not less
than 25% in

                                       4
<PAGE>

principal  amount of the outstanding  Securities of that series.  If at any time
any payment of the  principal of or interest on any Security or any other amount
payable by the Company  under the  Indenture  is  rescinded or must be otherwise
restored or returned upon the insolvency,  bankruptcy or  reorganization  of the
Company, any other Guarantor or otherwise, the Guarantors' obligations hereunder
with respect to such payment shall be reinstated as though such payment had been
due but not made at such time.

     SECTION 3.8.  Application of Payments.  The Trustee hereby acknowledges and
agrees, and each Holder shall be deemed to hereby acknowledge and agree, that to
the extent any of the Existing Senior  Obligations (as defined below) is then in
default, any funds, payments,  claims or distributions (the "Guaranty Proceeds")
actually received hereunder shall be made available for distribution equally and
ratably (based on the principal amounts then outstanding)  among (a) the holders
of the Obligations and (b) the holders of the Existing Senior  Obligations.  For
purposes  hereof,  "Existing  Senior  Obligations"  shall mean Debt for borrowed
money owed or guaranteed in connection  with any unsecured and  non-subordinated
Debt for borrowed money of the Company or the Guarantor (aa) issued in offerings
registered under the Securities Act of 1933, as amended or in placements  exempt
from  registration  pursuant to Rule 144A or  Regulation S  thereunder,  or (bb)
otherwise incurred,  which is, in either case, outstanding on the date hereof or
incurred  hereafter  in  accordance  with  the  Indenture  (including,   without
limitation,  the Debt of the  Company  incurred  in  connection  with the Credit
Agreement dated as of February 7, 2003, as amended or supplemented  from time to
time,  among  the  Company,   Wells  Fargo  Bank,   National   Association,   as
Administrative Agent under the Credit Agreement,  and the lenders named therein,
and certain other  lenders  party  thereto from time to time).  This Section 3.8
shall not apply to any payments,  funds, claims or distributions received by the
Trustee or any  Holder  directly  or  indirectly  from the  Company or any other
Person other than from the Guarantors hereunder. Each Guarantor acknowledges and
agrees with the Trustee and each Holder as follows:

          (a) to the extent any Guaranty Proceeds are distributed to the holders
of the Existing Senior Obligations,  the Obligations shall not be deemed reduced
by any such  distribution  (other  than a  distribution  made in  respect of the
Securities),  and the Guarantors will continue to make payments  pursuant to the
Guaranty until such time as the Obligations  have been paid in full after taking
into effect any  distributions  of Guaranty  Proceeds to the holders of Existing
Senior Obligations;

          (b) nothing contained herein shall be deemed to limit, modify or alter
the  rights of the  Trustee  and the  Holders  or be deemed to  subordinate  the
Obligations  to the  Existing  Senior  Obligations,  nor give to any  holder  of
Existing Senior Obligations any rights of subrogation;

          (c) nothing  contained  herein  shall be deemed for the benefit of any
holders of Existing Senior Obligations nor shall anything be construed to impose
on  the   Trustee  or  any  Holder  any   fiduciary   duties,   obligations   or
responsibilities to the holders of the Existing Senior Obligations; and

          (d) the  Guaranty  is for the  sole  benefit  of the  Trustee  and the
Holders and their respective successors and assigns, and any amounts received by
the Trustee and the

                                       5
<PAGE>

Holders,  or any of them, from whatever source and applied toward the payment of
the Obligations shall be applied in such order of application as is set forth in
the Indenture, if any.

     SECTION 3.9. Waivers by Guarantors. Each Guarantor hereby expressly waives:
(a)  notice of  acceptance  of the  Guaranty,  (b)  notice of the  existence  or
creation of all or any of the Obligations,  (c) presentment,  demand,  notice of
dishonor,  protest,  and all other  notices  whatsoever,  (d) all  diligence  in
collection or  protection of or  realization  upon the  Obligations  or any part
thereof, any obligation hereunder,  or any security for any of the foregoing and
(e) all rights of subrogation,  indemnification,  contribution and reimbursement
against  the  Company,  all rights to enforce  any  remedy the  Trustee  and the
Holders,  or any of them,  may have against the Company,  and any benefit of, or
right to participate  in, any collateral or security now or hereinafter  held by
the Trustee and the Holders, or any of them, in respect of the Obligations, even
upon payment in full of the Obligations.  Any money received by any Guarantor in
violation of this Section 3.9 shall be held in trust by such  Guarantor  for the
benefit of the Trustee and the Holders. If a claim is ever made upon the Trustee
and the Holders,  or any of them, for the repayment or recovery of any amount or
amounts  received  by any of them in payment of any of the  Obligations  and the
Trustee or the  Holders  repays all or part of such  amount by reason of (a) any
judgment,   decree,  or  order  of  any  court  or  administrative  body  having
jurisdiction over the Trustee or the Holders or any of its or their property, or
(b) any good faith  settlement or  compromise of any such claim  effected by the
Trustee or the Holders with any such  claimant,  including the Company,  then in
such  event  each  Guarantor  agrees  that any  such  judgment,  decree,  order,
settlement, or compromise shall be binding upon such Guarantor,  notwithstanding
any  revocation  hereof  or the  cancellation  of any  promissory  note or other
instrument  evidencing any of the  Obligations,  and such Guarantor shall be and
remain  obligated  to the Trustee and the  Holders  hereunder  for the amount so
repaid or  recovered  to the same extent as if such amount had never  originally
been received thereby.

     SECTION 3.10. Remedies Cumulative. No delay by the Trustee and the Holders,
or any of them, in the exercise of any right or remedy shall operate as a waiver
thereof,  and no single or partial  exercise by the Trustee and the Holders,  or
any of them,  of any right or remedy shall  preclude  other or further  exercise
thereof or the  exercise of any other right or remedy.  No action by the Trustee
and the Holders, or any of them,  permitted hereunder shall in any way impair or
affect the Guaranty.  For the purpose of the  Guaranty,  the  Obligations  shall
include,  without limitation,  all Obligations of the Company to the Trustee and
the Holders, notwithstanding any right or power of any third party, individually
or in the name of the  Company  or any  other  Person,  to  assert  any claim or
defense as to the invalidity or unenforceability of any such Obligation,  and no
such claim or defense  shall impair or affect the  obligations  of any Guarantor
hereunder.

     SECTION 3.11. Miscellaneous.  The Guaranty is a guaranty of payment and not
of collection.  In the event of a demand upon any Guarantor  under the Guaranty,
such Guarantor  shall be held and bound to the Trustee and the Holders  directly
as debtor in  respect of the  payment  of the  amounts  hereby  guaranteed.  All
reasonable costs and expenses,  including attorneys' fees and expenses, incurred
by the Trustee and the Holders,  or any of them, in obtaining  performance of or
collecting  payments  due  under  the  Guaranty  shall  be  deemed  part  of the
Obligations  guaranteed  hereby.  The  provisions  of the  Guaranty  are for the
benefit of the Trustee and the Holders and may not be relied upon or enforced by
any other Person and, as to

                                       6
<PAGE>

enforcement, may only be enforced in accordance with this Supplemental Indenture
and the Indenture.

     SECTION 3.12. Benefit to Guarantor. Each Guarantor expressly represents and
acknowledges  that the issuance and sale of the  Securities  under the Indenture
has  been,  and will be, of  direct  interest,  benefit  and  advantage  to such
Guarantor.

     SECTION 3.13.  Solvency.  Each Guarantor expressly  represents and warrants
that  as of the  date  hereof  and  after  giving  effect  to  the  transactions
contemplated  by the  Indenture  (a) the capital of such  Guarantor  will not be
unreasonably  small to conduct its business;  (b) such  Guarantor  will not have
incurred debts, or have intended to incur debts,  beyond its ability to pay such
debts as they mature;  and (c) the present  fair salable  value of the assets of
such  Guarantor  is greater  than the amount  that will be  required  to pay its
probable liabilities  (including debts) as they become absolute and matured. For
purposes of this  Section  3.13,  "debt"  means any  liability  on a claim,  and
"claim" means (x) the right to payment,  whether or not such right is reduced to
judgment,  liquidated,  unliquidated,  fixed,  contingent,  matured,  unmatured,
undisputed,  legal,  equitable,  secured  or  unsecured,  or (y) the right to an
equitable  remedy for breach of performance if such breach gives rise to a right
to  payment,  whether  or not such  right to an  equitable  remedy is reduced to
judgment,  fixed,  contingent,   matured,  unmatured,   undisputed,  secured  or
unsecured.

     SECTION 3.14. Additional Guarantors;  Release of Guarantors. Any Subsidiary
of the  Company  or any other  entity  may  become a party to this  Guaranty  by
executing and  delivering a Supplemental  Indenture  providing for a guaranty of
the  Obligations  under  the terms of this  Article  Three,  provided  that such
Supplemental  Indenture  conforms  to the  requirements  of Article  Nine of the
Indenture.  Under  certain  circumstances  consistent  with  the  terms  of  the
Indenture,  a  Guarantor  may be  released  by the  Trustee  as to any series of
Securities  (with the  written  consent  of the  Holders of not less than 25% in
principal  amount  of  the  outstanding   Securities  of  that  series)  of  its
obligations under this Guaranty. Each other Guarantor consents and agrees to any
such  releases  and agrees that no such  release  shall  affect its  obligations
hereunder, except as to the Guarantor so released.

     SECTION  3.15.  Contribution  Agreement.  To the extent that any  Guarantor
shall, under the Guaranty,  make a payment (a "Guarantor  Payment") of a portion
of the Obligations, then, without limiting its rights of subrogation against the
Company,  such Guarantor shall be entitled to contribution  and  indemnification
from, and be reimbursed  by, each of the other  Guarantors and the Company (each
of the foregoing referred to herein  individually as a "Contributing  Party" and
collectively  as  the  "Contributing  Parties")  in an  amount,  for  each  such
Contributing Party, equal to a fraction of such Guarantor Payment, the numerator
of which  fraction is such  Contributing  Party's  Allocable  Amount (as defined
below) and the  denominator of which is the sum of the Allocable  Amounts of all
of the Contributing Parties.

     As  of  any  date  of  determination,   the  "Allocable   Amount"  of  each
Contributing Party shall be equal to the maximum amount of liability which could
be asserted  against  such  Contributing  Party  hereunder  with  respect to the
applicable  Guarantor  Payment  without (i) rendering  such  Contributing  Party
"insolvent" within the meaning of Section 101(31) of the Federal Bankruptcy Code
(the "Bankruptcy Code") or Section 2 of either the Uniform  Fraudulent  Transfer
Act (the

                                       7
<PAGE>

"UFTA") or the Uniform Fraudulent Conveyance Act (the "UFCA"), (ii) leaving such
Contributing  Party with  unreasonably  small  capital,  within  the  meaning of
Section 548 of the Bankruptcy  Code or Section 4 of the UFTA or Section 5 of the
UFCA, or (iii) leaving such  Contributing  Party unable to pay its debts as they
become due within the meaning of Section 548 of the Bankruptcy Code or Section 4
of the  UFTA or  Section  6 of the UFCA or in any  case,  any  successor  to the
Bankruptcy  Code or any such section thereof or any successor to the UFTA or the
UFCA or any such sections thereof.

     This  Section 3.15 is intended  only to define the  relative  rights of the
Contributing  Parties, and nothing set forth in this Agreement is intended to or
shall impair the  obligations of the Guarantors,  jointly and severally,  to pay
any  amounts,  as and when the same shall  become due and payable in  accordance
with the terms of the Guaranty.

     The  parties  hereto  acknowledge  that  the  rights  of  contribution  and
indemnification  hereunder shall constitute assets in favor of each Guarantor to
which such contribution and indemnification is owing.

     This  Section  3.15 shall  continue in full force and effect and may not be
terminated  or  otherwise  revoked by any  Contributing  Party  until all of the
Guaranteed  Obligations  shall  have been  indefeasibly  paid in full (in lawful
money of the United  States of America) and  discharged  and the  Indenture  and
Securities shall have been terminated.

     SECTION  3.16.  NO  NOVATION.  THE PARTIES DO NOT INTEND THIS  SUPPLEMENTAL
INDENTURE,   NOR  THE  TRANSACTIONS   CONTEMPLATED   HEREBY,  TO  BE,  AND  THIS
SUPPLEMENTAL  INDENTURE AND THE  TRANSACTIONS  CONTEMPLATED  HEREBY SHALL NOT BE
CONSTRUED  TO BE, A NOVATION  OR WAIVER OF ANY OF THE  OBLIGATIONS  OWING BY ANY
EXISTING  GUARANTOR OF THE OBLIGATIONS  UNDER OR IN CONNECTION WITH ANY GUARANTY
IN EXISTENCE AT THE EFFECTIVE TIME.

                                  ARTICLE FOUR
                            MISCELLANEOUS PROVISIONS

     SECTION 4.1.  Ratification  of Indenture.  Except as expressly  modified or
amended hereby,  the Indenture  continues in full force and effect and is in all
respects confirmed and preserved.

     SECTION 4.2.  Governing Law. This Supplemental  Indenture shall be governed
by and  construed  in  accordance  with the laws of the State of  Georgia.  This
Supplemental  Indenture is subject to the provisions of the Trust  Indenture Act
of 1939,  as amended and shall,  to the extent  applicable,  be governed by such
provisions.

     SECTION 4.3.  Counterparts.  This Supplemental Indenture may be executed in
any number of  counterparts,  each of which so executed shall be deemed to be an
original,  but all such counterparts  shall together  constitute but one and the
same instrument.

     SECTION 4.4. Notices.  Any notice required or permitted  hereunder or under
the  Indenture to be given or made to the Company or a Guarantor  shall be given
or made in writing

                                       8
<PAGE>

and mailed,  first  class  postage  prepaid,  (i) to the Company or (ii) to such
Guarantor care of the Company, at the address of the Company set forth below its
signature hereon, or at any other address previously furnished in writing to the
Trustee and the Company by such  Guarantor,  with a copy to the Company given or
made in accordance with Section 105 of the Indenture.

     SECTION 4.5. Successors and Assigns.  This Supplemental  Indenture shall be
binding upon the Company and each Guarantor, and their respective successors and
assigns and inure to the benefit of the respective successors and assigns of the
Trustee and the Holders.

     SECTION 4.6. Time of the Essence. Time is of the essence with regard to the
Company's  and the  Guarantors'  performance  of  their  respective  obligations
hereunder.

     SECTION 4.7. Rights of Holders Limited.  Notwithstanding anything herein to
the contrary,  the rights of Holders with respect to this Supplemental Indenture
and the Guaranty  shall be limited in the manner and to the extent the rights of
Holders are limited  under the  Indenture  with respect to the Indenture and the
Securities.

                            [Signatures on Next Page]

                                       9
<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto  have  caused  this  Supplemental
Indenture  to be duly  executed  by  their  respective  officers  hereunto  duly
authorized, all as of the day and year first written above.

                                    IRT PROPERTY COMPANY, as Issuer

                                    By: /s/ Thomas H. McAuley
                                        ---------------------
                                    Name:
                                    Title:

                                    EQUITY ONE, INC., as successor to Issuer

                                    By: /s/ Chaim Katzman
                                        ---------------------
                                    Name:  Chaim Katzman
                                    Title:  Chief Executive Officer

                                         Address:
                                         1696 N.E. Miami Gardens Drive
                                         Miami, Florida  33179
                                         Attention:  Chief Financial Officer

                                    GUARANTORS

                                    Bandera Festival GP, LLC
                                    Beechnut Centre Corp.
                                    Benbrook Centre Corp.
                                    Bend Shopping Centre Corp.
                                    Cashmere Developments, Inc.
                                    Centerfund (US) LLC
                                    Centrefund Acquisition (Texas) Corp.
                                    Centrefund Acquisition Corp.
                                    Centrefund Development (Gainesville), LLC
                                    Centrefund Realty (U.S.) Corporation
                                    Colony GP, LLC
                                    Copperfield Crossing, Inc.
                                    Eastbelt Centre Corp.
                                    East Townsend Square, Inc.

                                    By:  /s/ Chaim Katzman
                                        ---------------------
                                        Chaim Katzman
                                        President

                                       10
<PAGE>

                                    Equity (Landing) Inc.
                                    Equity One (147) Inc.
                                    Equity One (Alpha) Corp.
                                    Equity One (Atlantic Village) Inc.
                                    Equity One (Beauclerc) Inc.
                                    Equity One (Beta) Inc.
                                    Equity One (Commonwealth) Inc.
                                    Equity One Construction Inc.
                                    Equity One (Coral Way) Inc.
                                    Equity One (Delta) Inc.
                                    Equity One (El Novillo) Inc.
                                    Equity One (Eustis Square) Inc.
                                    Equity One (Forest Edge) Inc.
                                    Equity One (Forest Village Phase II) Inc.
                                    Equity One (Gamma) Inc.
                                    Equity One (Lantana) Inc.
                                    Equity One (Losco) Inc.
                                    Equity One (Mandarin) Inc.
                                    Equity One (Monument) Inc.
                                    Equity One (North Port) Inc.
                                    Equity One (Oak Hill) Inc.
                                    Equity One (Olive) Inc.
                                    Equity One (Point Royale) Inc.
                                    Equity One (Sky Lake) Inc.
                                    Equity One (Summerlin) Inc.
                                    Equity One (Walden Woods) Inc.
                                    Equity One (West Lake) Inc.
                                    Equity One Acquisition Corp.
                                    Equity One (Clematis) LLC
                                    Equity One Properties, Inc.
                                    Equity One Realty & Management Texas, Inc.
                                    Equity One Realty & Management, Inc.
                                    Equity Texas Properties, LLC
                                    FC Market GP, LLC
                                    Florida Del Rey Holdings II, Inc.
                                    Forrestwood Equity Partners GP, LLC
                                    Garland & Barns, LLC
                                    Garland & Jupiter, LLC
                                    Gazit Meridian, Inc.
                                    Grogan Centre Corp.

                                    By:  /s/ Chaim Katzman
                                        ---------------------
                                        Chaim Katzman
                                        President

                                       11
<PAGE>

                                    Harbor Barker Cypress GP, LLC
                                    Hedwig GP, LLC
                                    Homestead Market Center, Inc.
                                    KirkBiss GP, LLC
                                    Leesburg DrugStore, LLC
                                    Mariner Outparcel, Inc.
                                    Mason Park GP, LLC
                                    McMinn Holdings, Inc.
                                    North American Acquisition Corp.
                                    North Kingwood Centre Corp.
                                    Oakbrook Square Shopping Center Corp.
                                    Parcel F, LLC
                                    Plymouth South Acquisition Corp.
                                    Prosperity Shopping Center Corp.
                                    PSL Developments, Inc.
                                    Ryanwood Shopping Center, L.L.C.
                                    SA Blanco Village Partners GP, LLC
                                    Salerno Village Shopping Center, LLC
                                    Shoppes at Jonathan's Landing, Inc.
                                    Shoppes at Westbury Shopping Center, Inc.
                                    South Kingwood Centre Corp.
                                    Spring Shadows GP, LLC
                                    St. Charles Outparcel, Inc.
                                    Steeplechase Centre Corp.
                                    Southwest 19 Northern, Inc.
                                    Texas Equity Holdings, LLC
                                    The Harbour Center, Inc.
                                    The Meadows Shopping Center, LLC
                                    The Shoppes of Eastwood, LLC
                                    UIRT GP, L.L.C.
                                    UIRT I - Centennial, Inc.
                                    UIRT LP, L.L.C.
                                    UIRT-Northwest Crossing, Inc.
                                    Wickham DrugStore, LLC
                                    Wimbledon Center Corp.
                                    Wurzbach Centre, LLC

                                    By:  /s/ Chaim Katzman
                                        ---------------------
                                        Chaim Katzman
                                        President

                                       12
<PAGE>

                                 Bandera Festival Partners, LP

                                   By: Bandera Festival GP, LLC

                                        By: /s/ Chaim Katzman
                                        ---------------------
                                                Chaim Katzman
                                                President

                                 BC Centre Partners, LP

                                   By: Harbour Barker Cypress GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Beechnut Centre I L.P.

                                   By:  Beechnut Centre Corp.

                                         By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Bend Shopping Centre I L.P.

                                   By:  Bend Shopping Centre Corp.

                                         By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Eastbelt Centre I L.P.

                                   By:  Eastbelt Centre Corp.

                                         By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                       13
<PAGE>

                                 FC Market Partners, LP

                                   By:  FC Market GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Grogan Centre I L.P.

                                   By:  Grogan Centre Corp.

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Hedwig Partners, LP

                                   By:  Hedwig GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Kirkwood - Bissonnet Partners, LP

                                   By:  KirkBiss GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Mason Park Partners, LP

                                   By:  Mason Park GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                       14
<PAGE>

                                 Park Northern/Centennial Partners, L.P.

                                    By:  UIRT I - Centennial, Inc.

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 SA Blanco Village Partners, LP

                                   By: SA Blanco Village Partners GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Steeplechase Centre I L.P.

                                   By:  Steeplechase Centre Corp.

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Texas CP Land, LP

                                   By:  Colony GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                 Texas Spring Shadows Partners, LP

                                   By:  Spring Shadows GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                       15
<PAGE>

                                 UIRT, Ltd.

                                   By:  UIRT GP, LLC

                                        By:  /s/ Chaim Katzman
                                        ---------------------
                                                 Chaim Katzman
                                                 President

                                    SUNTRUST BANK, as Trustee

                                    By:  /s/ George Hogan
                                        ---------------------
                                    Name:  George Hogan
                                    Title:  Vice President

                                       16

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