Document:

<PAGE>

                                                                   EXHIBIT 10.56

                                December 5, 2000

Mr. Scott C. Verges
President
Burnham Pacific Properties, Inc.
100 Bush Street, 24th Floor
San Francisco, CA  94104

Dear Scott:

Pursuant to our recent discussions, the purpose of this letter is to memorialize
certain agreements between Burnham Pacific Properties, Inc. ("BPP"), Developers
Diversified Realty Corp. ("DDRC"), DDR Real Estate Services, Inc. ("DDR") and
Coventry Real Estate Partners ("Coventry").

In return for the agreement made by DDRC, Coventry and Prudential Real Estate
Investors ("PREI") (collectively referred to as the "Purchaser") to accelerate
the closing of the San Diego Factory Outlet Center and Meridian Village (the
"Properties"), BPP agrees to the following:

(i)      to delete the event of default set forth in Section 8.2(g) of the
         Liquidation Services Agreement ("LSA") which provides that DDR is in
         default under the LSA if DDR does not timely purchase 10% of BPP's
         common stock before January 31, 2001, and BPP confirms that DDR shall
         have no obligation to purchase any BPP stock; and

(ii)     to pay the Purchaser an incremental $39,000 to compensate the Purchaser
         for the excess legal and administrative costs associated with the early
         closing of the Properties and the closing of additional properties in
         an additional closing tranche, which amount shall be payable upon the
         execution of this letter and close of escrow of the Properties on or
         before December 5, 2000.

In addition to the foregoing, the parties hereby confirm that the fee structure
agreed to in the LSA will remain in place with DDR/Coventry receiving, on a
monthly basis, 4% of gross revenues and 2% of gross revenues for property
management and asset management services,

<PAGE>

respectively, which fees shall be payable in accordance with the terms of the
LSA following approval by BPP's shareholders of the plan of liquidation (such
approval expected to be granted at the annual shareholder meeting on December
15, 2000). DDR would not be responsible for payment of existing third party
managers and would not credit BPP for any personnel costs. BPP shall remain
liable for the payment of all fees under all existing third party property
management contracts until such property management contracts are terminated;
provided, however, that Purchaser shall be liable for any on going obligations
under property management contracts for properties acquired by Purchaser to the
extent Purchaser elects not to terminate such property management contracts or
engages such third party property manager beyond closing.

In addition to the foregoing, in order to allow BPP to deliver termination
notices to all its third party property managers on December 1, 2000, if BPP
does not obtain shareholder approval of its plan of liquidation, DDR hereby
agrees to manage all of BPP's remaining properties in accordance with the terms
of the LSA and under the economic terms of the existing third party management
contracts upon termination of such contracts; provided, however, that DDR and
BPP shall have no right to terminate such management obligation except by
delivery of 180 days notice to the other party. In consideration for BPP's
ability to terminate early the third party property management agreements and
DDR's agreement to assume such management obligations, BPP agrees to pay
DDR/Coventry $150,000, payable upon execution of this letter and close of escrow
of the Properties on or before December 5, 2000.

All parties agree that any resulting amendments required to the LSA to reflect
the deletion of Section 8.2(g) will be made subsequent to the execution of this
letter but in accordance with its terms.

If you are in agreement with the terms of this letter, please execute where
indicated.

Thank you.

Sincerely,

/s/ Peter F. Henkel

Peter F. Henkel
Managing Principal

/s/ Scott Verges

Scott Verges
President
Burnham Pacific Properties, Inc.<PAGE>

                                                                 EXHIBIT 10.1

                        AMENDMENT TO EMPLOYMENT AGREEMENT

         THIS AMENDMENT TO EMPLOYMENT AGREEMENT ("Amendment") is made and
entered into as of this 6th day of March 2001 by and between Strouds, Inc.
("Employer") and Thomas S. Paccioretti ("Employee").

         WHEREAS, on September 7, 2000, the Employer filed a voluntary
petition for relief under chapter 11 of the United States Bankruptcy Code
(the "Bankruptcy Case").

         WHEREAS, Employer and Employee entered into that certain employment
agreement, dated January 5, 2001 (the "Employment Agreement"), pursuant to
which the Employer agreed to employ Employee as its President and Chief
Executive Officer upon the terms and conditions set forth in the Employment
Agreement;

         WHEREAS, on February 13, 2001, the Official Committee of Unsecured
Creditors (the "Committee") appointed in the Bankruptcy Case filed an
objection to certain terms and conditions of the Employment Agreement;

         WHEREAS, the Employer, Employee and Committee desire to resolve the
Objection and amend the Employment Agreement on the terms and conditions set
forth herein; and

         NOW THEREFORE, in consideration of the foregoing, the parties hereby
agree that paragraph 4 of the Employment Agreement is revised and restated as
follows:

         INCENTIVE BONUS. Employer shall pay to Employee a Ninety Thousand
         Dollar ($90,000.00) Incentive Bonus if: (a) during the term of this
         Agreement (including any extensions thereof), (i) an agreement is
         executed for the sale of all or substantially all of Employer's assets
         under a sale pursuant to Section 363 of the Bankruptcy Code with one or
         more buyers or (ii) the Company files a plan of reorganization with the
         bankruptcy court that provides for emergence of an on-going business
         from chapter 11 (hereinafter, the occurrence of (i) or (ii) will be
         referred to as an "Incentive Event"); and (b) at any time the
         bankruptcy court approves and/or confirms the Incentive Event.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
to the Employment Agreement as of the day and year first above written.

STROUDS, INC.                          THOMAS S. PACCIORETTI

By:    /s/ Larry Bemis                 By: /s/ Thomas S. Paccioretti
       ----------------------------        --------------------------------
Title: Director                        Date: 3/5/01
Date:   3/6/01                              -------------------------------
       ----------------------------

NO OBJECTION BY:

THE OFFICIAL COMMITTEE OF
UNSECURED CREDITORS

By:   /s/ Scott Hazan
      -----------------------------
Name: Scott Hazan
      Otterbourg, Steindler, Houston & Rosen, P.C.
      Attorneys for the Official Committee of Unsecured
      Creditors
Date: March 9, 2001
      -----------------------------

                                       2<PAGE>

                                                                  EXHIBIT 10.57

                               FIRST AMENDMENT TO

                          LOAN AND SECURITY AGREEMENT

         This FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
"Agreement") is entered into as of the 30th day of March 2001, by and between
HAMBRECHT & QUIST GUARANTY FINANCE, LLC, a California limited liability
company (the "Secured Lender"), and Interactive Telesis Inc. (the
"Borrower"), a Delaware corporation.

         Investor and Borrower are the parties to that certain LOAN AND
SECURITY AGREEMENT ("LSA") entered into as of the 21st day of November 2000.
Due to the occurrence of a Material Adverse Event ("MAE") as defined in
Section 1.17 therein, resulting in the failure to meet conditions set forth
in Sections 4.3, 5.3, 6.7and 8 (j), the parties agree to amend the LSA, as
follows:

1.   SECTION 1.20 SHALL BE STRUCK IN ITS ENTIRETY, REMOVING MENTION OF THE
     REICHMANNS, AND THE FOLLOWING, INSERTED THEREFOR:

         SECTION 1.20 "PERMITTED INDEBTEDNESS" shall mean (a) Obligations, (b)
         Indebtedness existing on the date of this Agreement and disclosed in
         writing to Secured Lender (c) Indebtedness to trade creditors and with
         respect to surety bonds and similar obligations incurred in the
         ordinary course of business, (d) capital leases and indebtedness
         incurred solely to purchase capital assets which is secured in
         accordance with clause (c) of "Permitted Liens" below and is not in
         excess of the lesser of the purchase price of such equipment or the
         fair market value of such equipment on the date of acquisition and not
         to exceed Five Million Dollars ($5,000,000) outstanding in the
         aggregate at any one time; (e) extensions, refinancings, modifications,
         amendments and restatements of any of items of Permitted Indebtedness
         (a) through (c) above, provided that the principal amount thereof is
         not increased or the terms thereof are not modified to impose more
         burdensome terms upon Borrower or its Subsidiary, as the case may be;
         (f) Indebtedness incurred to finance the premiums on insurance
         policies.

2.   SECTION 1.25 SHALL BE STRUCK IN ITS ENTIRETY AND THE FOLLOWING INSERTED
     THEREFOR:

         SECTION 1.25: "REICHMANN TRANSACTION" shall mean that transaction among
         BH Capital Investment L.P. and Excalibur Limited Partnership (together,
         "Reichmann") and the Borrower, pursuant to an agreement among the
         aforementioned parties dated June 12, 2000, for which prospectus Form
         SB-2 numbered Z63592A2 was filed with the SEC and dated October 6,
         2000, and by which $2.5 million of the Borrower's Common Stock was
         purchased; and an amendment of the second tranche equity purchase
         thereof whereby Equity Investors shall purchase $500,000 of the
         Borrower's Series B Preferred Stock as detailed in that Letter of
         Understanding between the Company, Reichmann, and Secured Lender dated
         March 1.

<PAGE>

3.   SECTION 2.1 SHALL BE STRUCK IN ITS ENTIRETY AND THE FOLLOWING INSERTED
     THEREFOR:

         SECTION 2.1 LOANS. Secured Lender shall make Loans to the Borrower in
         accordance with the Schedule and amendments thereto.

4.   SECTION 5.2 SHALL BE STRUCK IN ITS ENTIRETY AND THE FOLLOWING INSERTED
     THEREFOR:

     SECTION 5.2 FORWARD COMMITMENT TO PROVIDE ADDITIONAL FINANCING. Subject
to the terms of this Agreement, Secured Lender will make an additional Loan
within (5) days following Borrower's request, in the amount of Five Hundred
Thousand Dollars ($500,000). In no event shall Secured Lender be obligated to
make such additional Loan unless the following conditions have been satisfied:

         (a) Borrower shall execute and deliver to Secured Lender this
             Agreement and all Related Documents and amendments thereto and
             substitutions thereof contemplated hereby; and,
         (b) Borrower shall deliver to Secured Lender proof of an effective
             Registration Statement as defined herein and in compliance with
             Related Documents; and,
         (c) An Event of Default shall not have occurred since January 31, 2001,
             and be continuing; and,
         (d) Reichmann Transaction shall be drafted, documented, executed, and
             performed in form acceptable to Secured Lender.

5.   SECTION 6.1 (G) SHALL BE STRUCK IN ITS ENTIRETY AND THE FOLLOWING INSERTED
     THEREFOR:

         SECTION 6.1
         (G) For so long as Borrower is a company the stock of which is traded
         on a nationally recognized public stock exchange, unless otherwise
         requested by Secured Lender, Borrower's obligations under Section 6.1
         (a), (b) and (c) shall be satisfied by Borrower providing Secured
         Lender with all financial information filed with the Securities and
         Exchange commission within five (5) days after each filing is made or
         required to be made, and providing Secured Lender with copies of all
         press releases as soon as reasonably practical after they are
         published.

         IN WITNESS WHEREOF, the parties have caused the Agreement to be
executed by their respective duly authorized officers as of the date set forth
above.

SECURED LENDER:                             COMPANY:
HAMBRECHT & QUIST GUARANTY FINANCE, LLC     INTERACTIVE TELESIS INC.

By:     /s/ Donald M. Campbell              By:
    -----------------------------------          ------------------------------

Printed Name:  DONALD M. CAMPBELL           Printed Name:
             --------------------------                  ----------------------

Title:    CHIEF EXECUTIVE OFFICER           Title:
         ------------------------------           -----------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]