[Form of Supplemental Agreement with Stock Option Plan Participants (ISO)]
     [Letterhead of Urstadt Biddle Properties Inc.]

     THIS DOCUMENT  CONSTITUTES  PART OF A PROSPECTUS  COVERING  SECURITIES THAT
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

                                                                       [ ], 1998

[Name and Address of
 Plan Participant]

Dear             :

     Reference  is hereby  made to (i) the Stock  Option  Plan (the  "Plan")  of
Hubbard Real Estate  Investments  (the  "Trust"),  as predecessor in interest to
Urstadt Biddle  Properties Inc. (the "Company"),  adopted by the trustees of the
Trust on November  30, 1981 and  approved  by the  shareholders  of the Trust on
March  9,  1982  and (ii)  those  certain  Statutory  Option  Certificates  (the
"Certificates"),  issued in your favor by the  Trust,  evidencing  all  Existing
Options (as defined below) awarded to you under the Plan.

     On June 16, 1998,  the Board of  Directors of the Company,  as successor in
interest to the Trust,  declared a special stock dividend (the "Stock Dividend")
on the Company's  common stock,  par value $.01 per share (the "Common  Stock"),
consisting of one share of a newly  created  class of Class A Common Stock,  par
value  $.01  per  share  (the  "Class A Common  Stock"),  for each  share of the
Company's  Common  Stock  outstanding  at the close of business on July 31, 1998
(the "Record  Date").  The Stock Dividend was paid on August 14, 1998 to holders
of record of the Common Stock as of the close of business on the Record Date.

     In  connection  with the  Stock  Dividend,  your  Certificates  are  hereby
modified,  effective  as of August 14,  1998,  such that each option to purchase
shares of Common Stock (each, an "Existing  Option") awarded to you prior to the
Stock Dividend shall be deemed to be an option (each, a "Combination Option") to
purchase  such  number of shares  of Common  Stock and such  number of shares of
Class A Common  Stock as shall be equal to the number of shares of Common  Stock
issuable pursuant to the related Existing Option.

     The exercise price for the purchase of one share of Common Stock and/or one
share of Class A Common  Stock  pursuant to the  Combination  Option will be set
according to the proportional  allocation of the exercise price for the purchase
of one share of Common  Stock  pursuant to the  related  Existing  Option,  such
proportional allocation to be determined according to the Fair Market Values (as
defined below) of the underlying shares of Common Stock (ex-Stock  Dividend) and
Class A Common Stock.

     "Fair  Market  Value"  shall mean the  average of the high and low  trading
prices of the Common Stock and the Class A Common Stock,  as the case may be, on
the New York Stock Exchange, Inc. during the period beginning on August 17, 1998
and ending on August 28, 1998 Accordingly, the Fair Market Value of one share of
Common Stock is $8.756; and of one share of Class A Common Stock, $8.816.

     [Additionally,  your  Certificates  are hereby  modified,  effective  as of
August 14, 1998,  such that each Existing  Option in  connection  with which you
have been awarded stock appreciation rights ("SARs") under the Plan prior to the
Stock  Dividend  ("Existing  SARs")  shall be deemed to  include  new SARs ("New
SARs"),  in lieu of the Existing SARs,  covering the shares issuable pursuant to
the related Combination Option. The baseline price for the Existing SARs will be
allocated  proportionately  between the New SARs covering shares of Common Stock
and the New SARs covering  shares of Class A Common Stock  according to the Fair
Market Values of the underlying  shares of Common Stock (ex-Stock  Dividend) and
Class A Common Stock.]

     In all other  respects,  the terms of the Plan and your  Certificates  will
remain the same.

     Please  execute  the  enclosed  copy of this  letter  and  return it to the
Company to acknowledge  your receipt and  understanding  of the terms  contained
herein.

                                                 Very truly yours,
                                                 URSTADT BIDDLE PROPERTIES INC.

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

ACCEPTED AND AGREED:

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