Document:

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                                                                  EXHIBIT 10.50

BURNHAM PACIFIC

August 28, 2000

Mr. James W. Gaube
18340 River Edge Lane
Lake Oswego, OR  97034

RE:  SEPARATION AGREEMENT

Dear Jim:

         This document, upon your signature, will constitute the agreement
between you, James W. Gaube ("Gaube") and Burnham Pacific Operating Partnership,
L.P., BPP Services, Inc. and Burnham Pacific Properties, Inc. (collective, the
"Company"), on the terms of your separation from employment with the Company. It
is understood that both parties want to preclude any dispute between them
arising from your employment, your separation or any other matter with the
Company.

1.       It is understood and agreed that:

         a.       September 30, 2000 will be your last day of employment with
                  the Company (the "Effective Termination Date"). You will be
                  paid all unused accrued vacation as of September 30, 2000.

         b.       You will be compensated at your current salary and continue to
                  receive all of your current benefits (including, medical
                  insurance, dental insurance, 401(k) and other current
                  benefits) through the Effective Termination Date. COBRA and
                  insurance conversion information are attached to this letter.
                  If you are a participant in our 401(k) Plan, Wells Fargo Bank
                  our Plan Administrator, will provide you under separate cover
                  the distribution options regarding your personal account.

         c.       As of the Effective Termination Date, you will cease to have
                  any signing authority on behalf of the Company or its
                  subsidiaries. In addition, you shall no longer carry the title
                  of Executive Vice President or Chief Investment Officer.

         d.       Effective October 1, 2000, you will have no further rights
                  under that certain Senior Executive Severance Agreement dated
                  as of June 30, 1999, as amended

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                  (the "Severance Agreement"), and such Severance Agreement
                  shall be deemed terminated as of August 19, 2000.

         e.       Effective October 1, 2000, you will have no further rights
                  under that certain Phantom Shares Agreement dated as of August
                  1, 1999, as amended (the "Phantom Agreement"), and such
                  Phantom Agreement shall be deemed terminated as of October 1,
                  2000.

         f.       Effective October 1, 2000, you will have no further rights as
                  a member or otherwise under that certain Limited Liability
                  Company Agreement of Burnham Pacific Employees LLC, dated as
                  of June 1, 1999, as amended (the "LLC Agreement"), and,
                  pursuant to Section 7.02 of such LLC Agreement, the Units held
                  by you shall automatically cease to be issued and outstanding
                  as of June 1, 2000.

         g.       Effective October 1, 2000, you will cooperate with Scott C.
                  Verges to accommodate the transfer of your share in BPP
                  Services, Inc. to Mr. Verges pursuant to the terms of the
                  applicable documents of BPP Services, Inc. In consideration
                  for the terms of this Separation Agreement, the transfer price
                  for all of such shares pursuant to Section 11.03 of the
                  applicable documents shall be stipulated to be $100.00.

2.       In order to assist you in making this transition, and in consideration
         of your acceptance of this Separation Agreement by your signing and
         returning this Agreement within the stated time period, and
         relinquishing your rights under the agreements recited in Paragraph 1
         above, the Company will provide the following:

         a.       Commencing on the Effective Termination Date and continuing
                  until September 30, 2001, the Company will pay your monthly
                  COBRA premium.

         b.       At the Company's election, the Company will issue a press
                  release subject to approval by both parties.

         c.       Except to the extent arising out of Gaube's gross negligence
                  or intentional misconduct, the Company shall indemnify, defend
                  and hold Gaube harmless from any and all loss, cost, damage or
                  expense arising out of, or related to the ownership,
                  management or development of any of the Company's properties.

         d.       Following the full execution of this Separation Agreement, the
                  parties shall each fully cooperate with the other to answer
                  questions, participate in meetings, provide testimony and
                  provide information relating to activities of Gaube or the
                  Company during the term of Gaube's employment at no expense to
                  Gaube.

         e.       As a severance payment, the Company shall pay to you, in the
                  manner described below, the sum of Two Hundred Fifty Thousand
                  Dollars ($250,000), less deductions authorized and required by
                  law (the "Severance Payment"). The Severance Payment shall be
                  paid in 24 equal installments, commencing on October 1, 2000
                  and on the fifteenth day and last day of the month thereafter
                  until

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                  and including September 30, 2001 (the "Severance Period");
                  provided, however, that within 30 days after the occurrence of
                  a Change in Control (as defined in the Severance Agreement),
                  the full amount of any unpaid portion of the Severance Payment
                  shall be paid to Gaube, the Severance Period shall end, and
                  the Company shall have no further obligation to pay the
                  Severance Payment to Gaube.

         f.       In addition, the Company will assign its interest in office
                  space located at 10135 SE Sunnyside Road, Suite 250,
                  Clackamas, Oregon (the "Assignment Premises") to a new entity
                  that is to be formed by Gaube, effective upon consent of the
                  lessor. Any such assignment shall be subject to landlord
                  entering into a Modification Agreement with the new entity
                  that modifies certain terms and conditions of the office
                  lease. If the lessor consents to the assignment and the lease
                  is modified as referenced above, the new entity will assume
                  the Company's obligations as to the Assignment Premises. The
                  Company further agrees to sell the furniture, fixtures and
                  equipment in the Assignment Premises to the new entity for
                  their fair market value pursuant to a liquidator's appraisal
                  on or before October 1, 2000. The Company will cooperate with
                  Gaube in the transition period regarding the use of the
                  Assignment Premises, furniture, fixture and equipment.

         g.       The Company has acknowledged that Gaube upon terminating
                  employment with the Company will be hiring certain Company
                  employees. Gaube's assumption of the CalPERS relationship
                  requires that the new Gaube entity possibly requires the
                  continued use of office space at the Company's current
                  locations in both San Diego and San Francisco for the Company
                  employees to be hired. To aid in preventing any disruption in
                  the management of CalPERS assets, the Company agrees to permit
                  the new Gaube entity that eight to continue to use office
                  space at both locations for a period of time not to exceed
                  December 31, 2000.* The employees at the Gaube entity shall
                  have reasonable use of conference rooms, lunchrooms, restrooms
                  and other common areas just as if they continued as employees
                  of the Company. The Gaube entity is agreeable to the
                  reasonable relocation of the employees' office/workstation
                  locations within the leased premises a an accommodation to the
                  Company to assist with any logistic issues.

                  The Company additionally agrees that the employees of the
                  Gaube entity shall have continued use of all systems and
                  information necessary for the continued operation of the
                  CalPERS assets up to December 31, 2000.

                  The Company agrees to reasonably work with the Gaube entity in
                  the transition of the CalPERS assets from the Company to the
                  Gaube entity.

                  The Company further agrees to sell to the Gaube entity
                  furniture, fixtures and equipment from the San Diego and San
                  Francisco offices, that the Company no

--------
*     (or such shorter time if the San Francisco office lease is terminated).

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                  longer has a need, at the fair market value pursuant to a
                  liquidator's appraisal, on or before December 31, 2000.

                  As consideration for the above, the Gaube entity agrees to pay
                  to the Company rent based upon the space in which the new
                  Gaube entity occupies. Such rental rate shall be reasonably
                  negotiated between the Company an the Gaube entity and shall
                  be based upon the current rent paid by the Company.

3.       The parties agree not to disclose the terms of this Separation
         Agreement, the benefits being paid under it o the facts of these
         payments, except that the parties may disclose this information to
         those individuals that have a need to know in order for them to render
         professional or financial services or as may be required by law, rule
         or regulation.

4.       Except as set fort in Section 2(g), you also agree to preserve as
         confidential and not use or disclose any of the Company's trade
         secrets, confidential knowledge, data or other proprietary information
         relation to technology, customers, products, business plans, financial
         or organizational information or other subject matter pertaining to any
         business of the Company or any of its clients, customers, or licensees
         from this day forward.

5.       You agree to unconditionally and forever release and discharge the
         Company and all of its subsidiaries, officers, directors, and
         employees, and each of them, of an from any and all debts, claims,
         liabilities, demands and cause of action of every kind, nature and
         description, including but not limited to any claim under federal,
         state or local law, including the Age Discrimination in Employment Act,
         the Family Medical Leave Act and any other laws pertaining to
         employment or employment discrimination which you have or may have or
         could assert against the Company as of the date of the Agreement. In
         addition, the Company unconditionally and forever releases, and
         discharges you of and from any and all debts, claims, liabilities,
         demands and cause of action of every kind, nature and description,
         which the Company has or may have or could assert against you as of the
         date of the Agreement, except to the extent arising out of your gross
         negligence or intentional misconduct. Notwithstanding the above, the
         Company shall continue to provide to Gaube the indemnity protections
         provided to Gaube in the Indemnity Agreement previously executed by the
         parties. (Attached hereto as Exhibit "A")

6.       It is further understood and agreed that as part of the consideration
         and inducement for the execution of this Agreement, you and the Company
         specifically waive the provisions of Section 1542 of the California
         Civil Code, and any equivalent law of any state, which reads 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."

7.       You represent that no promise, inducement or other agreement not
         expressly contained or referenced in this Separation Agreement has been
         made conferring any benefit upon you; that this Separation Agreement
         and the Indemnity Agreement contain the entire agreement between us
         with respect to any benefit conferred upon you; and that all prior

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         agreements; understandings, oral agreements and writings are expressly
         superseded by this Separation Agreement and are of no further force and
         effect.

8.       This Separation Agreement is entered into governed by the laws of the
         State of California.

9.       You will have until 9:00 A.M. on September 15, 2000, to accept the
         terms of this Separation Agreement. Should you have any questions
         regarding the release terms and conditions contained in this Agreement,
         you are advised to consult with your own personal legal/tax advisor.

10.      To accept this Agreement, please date and return it to Donna D. Godbout
         in the enclosed confidential envelope.

Very truly yours,

/s/ DONNA D. GODBOUT
--------------------
Donna D. Godbout
Vice President

By signing this letter, I acknowledge that I have had an opportunity to review
this Separation Agreement carefully, consult with advisors of my choice, that I
understanding the terms of the Separation Agreement, and I voluntarily agree to
them.

        /s/ J. W. GAUBE                                   9/8/00
-------------------------------------      ------------------------------------
James W. Gaube                                             Date<PAGE>

                                                                   EXHIBIT 10.51

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement (the "Agreement") is entered into as of
the ___ day of ____________, 2000, ("Agreement") by and among BURNHAM PACIFIC
PROPERTIES, Inc., a Maryland corporation (the "Corporation"), BURNHAM PACIFIC
OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (the "Operating
Partnership") and _________________ (the "Indemnitee").

         WHEREAS, the interpretations of statutes, regulations, charter and
bylaws regarding indemnification of directors and officers and limitation of
liability of directors and officers are too uncertain to provide them with
adequate, reliable knowledge of risks to which they may be exposed by virtue of
serving as directors and officers of a corporation, and

         WHEREAS, damages sought by class action plaintiffs in some cases amount
to substantial dollar amounts and, whether or not the case is meritorious, the
cost of defending these suits is enormous with few individual directors and
officers having the resources to sustain such legal costs or a judgment in favor
of the plaintiffs even in cases where the defendant was neither culpable nor
profited personally to the detriment of the corporation; and

         WHEREAS, it is generally recognized that the issues in controversy in
such litigation are usually related to the knowledge, motives and intent of the
director or officer and that he is usually the only witness with firsthand
knowledge of the essential facts or of exculpating circumstances who is
qualified to testify in his defense regarding matters of such subjective nature,
and that the long period of time which normally and usually elapses before such
suits can be disposed of can extend beyond the normal time for retirement for a
director or officer, with the result that he, after retirement, or in the event
of his death, his spouse, heirs, executors, administrators, as the case may be,
may be faced with limited ability, undue hardship and an intolerable burden in
launching and maintaining a proper and adequate defense of such party or his
estate against claims for damages; and

         WHEREAS, the charter and bylaws of the Corporation and the rules and
regulations governing the Corporation allow it to indemnify and hold harmless
their management personnel and their affiliates and each of their respective
officers, directors, partners and employees for losses, claims, damages,
expenses or liabilities incurred by such persons by reason of any action,
omission to act or decision made by any such persons in connection with the
business of the Corporation; and

         WHEREAS, the Board of Directors (as defined in Article I hereto) has
concluded that it is reasonable, prudent and necessary for the Corporation
contractually to obligate itself to indemnify the Indemnitees in reasonable and
adequate manner to the fullest extent permitted by applicable law, to assume for
itself maximum liability for expenses and damages in connection with claims
lodged against them for their decisions and actions and to provide for the
advancement of expenses incurred by the Indemnitees; and

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         WHEREAS, as set forth in Section VIII hereof, it is in the interests of
the parties hereto that the Operating Partnership have the same indemnification
obligations to the Indemnitee as the indemnification obligations of the
Corporation to the Indemnitee; and

         WHEREAS, the Indemnitees are willing to serve, for or on behalf of the
Corporation on the condition that they be so indemnified.

         NOW, THEREFORE, in consideration of the mutual promises made herein and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

                                   WITNESSETH

                                       I.
                                   DEFINITIONS

         For purposes of this Agreement, the following terms shall have the
meanings set forth below:

         A.       "BOARD OF DIRECTORS" shall mean the board of directors of the
Corporation.

         B.       "CHANGE IN CONTROL" shall mean:

         (i) the acquisition by an individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) (a "Person") of beneficial ownership of the
Corporation if, after such acquisition, such Person beneficially owns (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of
either (x) the then-outstanding Common Shares of the Corporation (the
"Outstanding Corporation Common Shares") or (y) the combined voting power of the
then-outstanding securities of the Corporation entitled to vote generally in the
election of directors (the "Outstanding Corporation Voting Securities");
PROVIDED, HOWEVER, that for purposes of this subsection (i), the following
acquisitions shall not constitute a Change in Control: (A) any acquisition
directly from the Corporation (excluding an acquisition pursuant to the
exercise, conversion or exchange of any security exercisable for, convertible
into or exchangeable for Common Shares or voting securities of the Corporation,
unless the Person exercising, converting or exchanging such security acquired
such security directly from the Corporation or an underwriter or agent of the
Corporation), (B) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Corporation or any company controlled by
the Corporation, or (C) any acquisition by any company pursuant to a Business
Combination (as defined below) which complies with clauses (x) and (y) of
subsection (ii) of this definition; or

         (ii) the consummation of an amalgamation, merger, consolidation,
reorganization, recapitalization or statutory share exchange involving the
Corporation or a sale or other disposition of all or substantially all of the
assets of the Corporation (a "Business Combination"), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (x) all or substantially all of the individuals and entities who were
the beneficial owners of the Outstanding Corporation Common Shares and
Outstanding Corporation Voting

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<PAGE>

Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the then-outstanding shares of Common
Shares and the combined voting power of the then-outstanding securities entitled
to vote generally in the election of directors, respectively, of the resulting
or acquiring company in such Business Combination (which shall include, without
limitation, a company which as a result of such transaction owns the Corporation
or substantially all of the Corporation's assets either directly or through one
or more subsidiaries) (such resulting or acquiring company is referred to herein
as the "Acquiring Corporation") in substantially the same proportions as their
ownership of the Outstanding Corporation Common Shares and Outstanding
Corporation Voting Securities, respectively, immediately prior to such Business
Combination and (y) no Person (excluding the Acquiring Corporation, any Exempt
Persons or any employee benefit plan (or related trust) maintained or sponsored
by the Corporation or by the Acquiring Corporation) beneficially owns, directly
or indirectly, 50% or more of the then-outstanding Common Shares of the
Acquiring Corporation, or of the combined voting power of the then-outstanding
securities of such company entitled to vote generally in the election of
directors (except to the extent that such ownership existed prior to the
Business Combination).

         C.       "DISINTERESTED DIRECTOR" shall mean a director of the
Corporation who neither is nor was a party to the Proceeding in respect of which
indemnification or advance of expenses is being sought by an Indemnitee.

         D.       "EXPENSES" shall mean, without limitation, expenses of
Proceedings including all attorneys' fees, retainers, court costs, transcript
costs, fees of experts, accounting and witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating or being or preparing to be a witness or
party in a Proceeding.

         E.       "BAD FAITH" shall mean with respect to a particular
Indemnitee, such Indemnitee not having acted in a manner the Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Corporation, and, with respect to any criminal Proceeding, such Indemnitee
having acted in a certain manner without reasonable cause to believe his conduct
was lawful.

         F.       "LIABILITIES" shall mean liabilities of any type whatsoever,
including without limitation, any judgments, fines, ERISA excise taxes and
penalties, penalties and amounts paid in settlement (including all interest,
assessments and other charges paid or payable in connection with or in respect
of such judgments, fines, penalties, or amounts paid in settlement) in
connection with the investigation, defense, settlement or appeal of any
Proceeding or any claim, issue or matter therein.

         G.       "OFFICIAL STATUS" describes the status of a person who is or
was a director or officer of the Corporation, or a member of any committee of
the Board of Directors, and the status of a person who, while a director or
officer of the Corporation, is or was serving at the request of the Corporation
as a director, officer, partner, member, trustee, employee or agent of another
foreign or domestic corporation, partnership, limited liability company or
partnership, joint venture, trust, employee benefit plan, or other entity.

                                      -3-
<PAGE>

         H.       "PROCEEDING" includes any threatened, pending or completed
action, suit, arbitration, alternative dispute resolution mechanism,
investigation, administrative hearing or any other actual, threatened or
completed proceeding whether civil, criminal, administrative or investigative,
including, without limitation, any Proceeding arising out of or relating to acts
or omissions with respect to any and all related transactions, filings and other
actions, whether or not such acts or omissions occurred prior or subsequent to
the formation of the Corporation and/or Operating Partnership prior to or
subsequent to the date of this Agreement (including, without limitation, matters
relating to the proxy filed by the corporation with the securities and exchange
commission on September 28, 2000, and any amendment thereto and suit by an
Indemnitee seeking to enforce the Indemnitee's rights under this Agreement);
PROVIDED, HOWEVER, that the term Proceeding shall not include a Proceeding
initiated by any of the Indemnitees against the Corporation or any director,
officer, employee or agent of the Corporation and/or Operating Partnership
unless (i) the Corporation has joined in or the Board of Directors has consented
to the initiation of such Proceeding or (ii) the Proceeding is instituted after
a Change in Control.

         I.       "VOTING SECURITIES" shall mean any securities of an entity
whose holder or holders are entitled to vote generally in the election of the
Board of Directors.

                                       II.
                                TERM OF AGREEMENT

         This Agreement shall continue until and terminate with respect to any
Indemnitee upon the later of:

                     1. 10 years after the date that such Indemnitee shall have
                ceased to serve as a director, officer, partner, member,
                trustee, employee, or agent of the Corporation or of any other
                corporation, partnership, limited liability company or
                partnership, joint venture, trust, employee benefit plan or
                other entity which such Indemnitee served at the request of the
                Corporation, or

                     2. The final termination of any Proceeding then pending in
                respect of which such Indemnitee is granted rights of
                indemnification of Liabilities or advancement of Expenses
                hereunder and of any Proceeding commenced by such Indemnitee
                pursuant to Section IV.F of this Agreement relating thereto.

This Agreement shall be binding upon the Corporation and its successors and
assigns and shall inure to the benefit of the Indemnitees and their heirs,
executors and administrators.

                                      -4-
<PAGE>

                                      III.
                  SERVICES BY INDEMNITEE, NOTICE OF PROCEEDINGS
                              AND DEFENSE OF CLAIM

         A.       AGREEMENT TO SERVE. Each Indemnitee shall serve and/or
continue to serve, at the will of the Corporation or under separate contract, if
such exists, as a director or officer of the Corporation. This Agreement does
not create any additional right for any of the Indemnitees to serve as directors
or officers other than at the will of the Corporation or as otherwise provided
by separate contract. Indemnitee's resignation as a director shall not
constitute a breach of this Agreement.

         B.       NOTICE OF PROCEEDINGS. Each Indemnitee shall notify the
Corporation promptly in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any
Proceeding or matter which may be subject to indemnification of Liabilities or
advancement of Expenses covered hereunder, but the Indemnitee's omission to so
notify the Corporation shall not relieve the Corporation from any liability
which it may have to the Indemnitees under this Agreement unless such omission
materially prejudices the rights of the Corporation (including, without
limitation, the Corporation having lost any significant substantive or
procedural rights with respect to the defense of any Proceeding). If such
omission does materially prejudice the rights of the Corporation, the
Corporation shall be relieved from liability under this Agreement to the extent
of such prejudice; but such omission will not relieve the Corporation from any
liability which it may owe to an Indemnitee otherwise than under this Agreement.

         C.       DEFENSE OF CLAIMS. The Corporation will be entitled to
participate at its own expense in any Proceeding of which it has notice. The
Corporation, jointly with any other indemnifying party similarly notified of any
Proceeding, will be entitled to assume the defense of any Indemnitee therein,
with counsel reasonably satisfactory to such Indemnitee; PROVIDED, HOWEVER, that
the prior written consent of the Indemnitee shall be required for the
Corporation to assume the defense of an Indemnitee in a Proceeding (i) if there
has been a Change in Control in the Corporation, or (ii) if the Indemnitee has
reasonably concluded that there may be a conflict of interest between the
Corporation and such Indemnitee, or between one Indemnitee and another, with
respect to any Proceeding and has provided written notice thereof to the
Corporation. After receipt of written notice from the Corporation to an
Indemnitee of the Corporation's election to assume the defense of such
Indemnitee in any Proceeding, the Corporation will not be liable to such
Indemnitee under this Agreement for any Expenses subsequently incurred by such
Indemnitee in connection with the defense thereof, other than reasonable costs
of investigation or as otherwise provided below. An Indemnitee shall have the
right to employ his own counsel in any such Proceeding, but the fees and
expenses of such counsel incurred after receipt of written notice from the
Corporation of its assumption of the defense thereof shall be at the expense of
such Indemnitee unless:

                     1. The employment of counsel by such Indemnitee has been
                authorized by the Corporation;

                                      -5-
<PAGE>

                     2. Such Indemnitee shall have reasonably concluded that
                counsel employed by the Corporation has not adequately
                represented such Indemnitee or that there is a conflict of
                interest between the Corporation and such Indemnitee with
                respect to such Proceeding; or

                     3. The Corporation shall not in fact have employed counsel
                to assume the defense of such Indemnitee in such Proceeding or
                such counsel has not in fact assumed such defense or such
                counsel is not acting in connection therewith with reasonable
                diligence; and in each such case the fees and expenses of such
                Indemnitee's counsel shall be advanced by the Corporation
                pursuant to Article V.

         D.       SETTLEMENT OF CLAIMS. The Corporation shall not settle any
Proceeding in any manner which would impose any liability, penalty or limitation
on any of the Indemnitees without the written consent of such Indemnitee;
PROVIDED, HOWEVER, that such Indemnitee shall not unreasonably withhold, delay
or condition consent to any proposed settlement. Unless there has been a Change
in Control, the Corporation shall not be liable to indemnify any of the
Indemnitees under this Agreement or otherwise for any amounts paid in settlement
of any Proceeding effected by such Indemnitee without the Corporation's written
consent. The Corporation shall not unreasonably withhold, delay or condition its
consent to any proposed settlement.

                                       IV.
                                 INDEMNIFICATION

         A.       IN GENERAL. The Corporation shall indemnify any Indemnitees
against any and all Expenses and Liabilities: (i) as provided in this Agreement,
(ii) to the fullest extent consistent with applicable law in effect on the date
hereof and to such greater extent as applicable law may hereafter from time to
time permit, (iii) for any acts or omissions which occurred prior to each
Indemnitee becoming a director of the Corporation, or establishing any formal
relationship with the Corporation. The rights of the Indemnitees provided under
the preceding sentence shall include, but shall not be limited to, the rights
set forth in this Article IV. It is expressly agreed and understood that the
Corporation's indemnification to Indemnitee shall be absolute, total and
unconditional with respect to any activity or event, including without
limitation the preparation or distribution of any proxy statement, which occurs
prior to the date of commencement of Indemnitee's service as a director of the
Corporation and no process or procedure shall be needed to establish or confirm
such indemnification, except as may be required by applicable law (provided
Indemnitee is notified appropriately by the Corporation). If any Proceeding
arising from any such action or event is brought against Indemnitee, Indemnitee
shall be entitled to separate independent counsel selected by Indemnitee, with
the Expenses thereof paid by the Corporation.

         B.       INDEMNIFICATION OF A PARTY TO A PROCEEDING. An Indemnitee
shall be entitled to the rights of indemnification provided in this Section IV.B
if, by reason of his Official Status, he is, or is threatened to be made, a
party to any Proceeding. In accordance with this Section IV.B, an Indemnitee
shall be indemnified against all Expenses and Liabilities actually incurred by
him or on his behalf in connection with such Proceeding or any claim, issue or
matter therein, unless

                                      -6-
<PAGE>

the acts or omissions of such Indemnitee are material to the matter giving rise
to the Proceeding, and (a) were committed in bad faith (as determined pursuant
to either Section IV.D.2 or Section IV.E below), or (b) were the result of
active and deliberate dishonesty, or (c) for which the Indemnitee actually
received an improper personal benefit in money, property or services, or (d) in
the case of any criminal Proceeding, for which the Indemnitee had reasonable
cause to believe that the act or omission was unlawful; PROVIDED, HOWEVER, that,
if applicable law so provides, no indemnification against such Expenses and
Liabilities shall be made in respect of any claim, issue or matter in a
Proceeding brought by or in the right of the Corporation as to which a final,
nonappealable judgment has been issued by a court of competent jurisdiction that
the Indemnitee is liable to the Corporation, unless and to the extent that such
court shall determine that such indemnification may be made.

         C.       INDEMNIFICATION FOR EXPENSES OF WITNESS. Notwithstanding any
other provision of this Agreement, to the extent that an Indemnitee, by reason
of such Indemnitee's Official Status, has prepared to serve or has served as a
witness in any Proceeding, such Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by or for him in connection therewith
and that are not otherwise reimbursed.

         D.       SPECIFIC LIMITATIONS ON INDEMNIFICATION. Notwithstanding
anything in this Agreement to the contrary, the Corporation shall not be
obligated under this Agreement to make any payment to any Indemnitee for
indemnification with respect to any Proceeding:

                       1. To the extent that payment is actually made to such
              Indemnitee under any insurance policy or is made to such
              Indemnitee by the Corporation otherwise than pursuant to this
              Agreement.

                       2. If a court in such Proceeding has entered a judgment
              or other adjudication which is final and has become nonappealable
              and established that a claim of such Indemnitee for such
              indemnification arose from acts or omissions of such Indemnitee
              which are material to the matter giving rise to the Proceeding and
              which (a) were committed in bad faith, or (b) which were the
              result of active and deliberate dishonesty, or (c) for which the
              Indemnitee actually received an improper personal benefit in
              money, property or services, or (d) in the case of any criminal
              Proceeding, for which the Indemnitee had reasonable cause to
              believe that the act or omission was unlawful.

                        3. If there has been no Change in Control, for
               Liabilities in connection with Proceedings settled without the
               consent of the Corporation (unless such consent was unreasonably
               withheld, delayed or conditioned), PROVIDED, HOWEVER, that the
               consent of an Indemnitee will not be required with respect to any
               Liability for which such Indemnitee is not entitled to
               indemnification. If there has been a Change in Control, the
               Corporation shall be liable for Liabilities in connection with
               Proceedings settled without the consent of the Corporation.

                        4. For an accounting of profits made from the purchase
               or sale by such Indemnitee of securities of the Corporation
               within the meaning of Section 16(b) of

                                      -7-
<PAGE>

               the Securities Exchange Act of 1934 or similar provisions of
               any federal, state or local statute or regulation.

                        5. For any liability of an Indemnitee in connection with
               insider trading, as defined under the United States securities
               laws or similar provisions of any state or local statute or
               regulation.

         E.       DETERMINATION OF BAD FAITH.

               1. An Indemnitee will be deemed to have acted in Bad Faith if
         such is proven by clear and convincing evidence by the Corporation in
         one of the forums listed below. Such Indemnitee subject to a claim by
         the Corporation that he acted in Bad Faith shall be entitled to select
         from among the following forums in which the validity of the
         Corporation's claim will be heard:

                         (a) The Disinterested Directors, which shall make such
                    determination by majority vote;

                         (b) The shareholders of the Corporation, which shall
                    make such determination by majority vote;

                         (c) Legal counsel selected by such Indemnitee, and
                    reasonably approved by the Board of Directors, which counsel
                    shall make such determination in a written opinion; or

                         (d) A panel of three arbitrators, one of whom is
                    selected by the Corporation, another of whom is selected by
                    such Indemnitee and the last of whom is selected by the
                    first two arbitrators so selected.

               2. As soon as practicable, and in no event later than thirty (30)
         days after written notice of such Indemnitee's choice of forum pursuant
         to this Section IV.E, the Corporation shall, at its own expense, submit
         to the selected forum in such manner as such Indemnitee or such
         Indemnitee's counsel may reasonably request, its claim that such
         Indemnitee is not entitled to indemnification, and the Corporation
         shall act in the utmost good faith to assure such Indemnitee a complete
         opportunity to defend against such claim. The fees and expenses of the
         selected forum in connection with making the determination contemplated
         hereunder shall be paid by the Corporation. If the Corporation shall
         fail to submit the matter to the selected forum within thirty (30) days
         after such Indemnitee's written notice or if the forum so empowered to
         make the determination shall have failed to make the requested
         determination within thirty (30) days after the matter has been
         submitted to it by the Corporation, the requisite determination that
         such Indemnitee has the right to indemnification shall be deemed to
         have been made.

               3. For purposes of any determination of Bad Faith, an Indemnitee
         shall be deemed to have acted in Bad Faith if such Indemnitee's action
         is not based on the records

                                      -8-
<PAGE>

         or books or accounts of the Corporation, including financial
         statements, or on information supplied to such Indemnitee by the
         directors or officers of the Corporation in the course of their duties,
         or on the advice of legal counsel for the Corporation or on information
         or records given or reports made to the Corporation by an independent
         certified public accountant or by an appraiser or other expert selected
         with reasonable care by the Corporation. The provisions of this Section
         IV.E shall not be deemed to be exclusive or to limit in any way the
         other circumstances in which an Indemnitee may be deemed to have met
         the standard of conduct set forth in this Agreement.

         F.       RIGHT TO APPEAL. Notwithstanding a determination by any forum
listed in Section IV.E above that an Indemnitee is not entitled to
indemnification with respect to a specific Proceeding, such Indemnitee shall
have the right to apply to the court in which that Proceeding is or was pending,
or to any other court of competent jurisdiction, for the purpose of enforcing
such Indemnitee's right to indemnification pursuant to this Agreement. The
Corporation shall be precluded from asserting that the procedures and
presumptions of this Agreement are not valid, binding and enforceable. The
Corporation further agrees to stipulate in any such judicial proceeding that it
is bound by all the provisions of this Agreement and is precluded from making
any assertion to the contrary.

         G.       DIRECTORS' AND OFFICERS' LIABILITY INSURANCE. In addition to
the indemnification protection provided to the Indemnitee by the other sections
of this Agreement, the Corporation shall also purchase and maintain Directors'
and Officers' Liability Insurance, at its expense and in amounts that are
subject to such terms as shall be determined by the Board of Directors of the
Corporation, to protect the Indemnitee against any expense, liability or loss
incurred by it or him in any such capacity, or arising out of his status as
such.

                                       V.
                             ADVANCEMENT OF EXPENSES

         A.       ADVANCEMENT OF EXPENSES. The Corporation shall advance to an
Indemnitee all Expenses incurred or to be incurred by or for him in connection
with (i) any Proceeding for which such Indemnitee is entitled to indemnification
pursuant to Article IV above, including any Proceeding under Section IV.E or
Section IV.F involving such Indemnitee and (ii) any other action between the
Corporation and such Indemnitee involving the interpretation or enforcement of
the rights of such Indemnitee under this Agreement, in advance of the final
disposition of such Proceeding or other action, provided that such Indemnitee
executes and submits an undertaking to repay Expenses advanced in the form of
Exhibit A attached hereto (the "Undertaking").

         B.       PROCEDURE FOR ADVANCEMENT. The Corporation shall advance
Expenses pursuant to subsection A above within ten (10) business days after the
receipt by the Corporation of an Undertaking. Each Indemnitee hereby agrees to
repay any Expenses advanced hereunder if it shall ultimately be determined by a
court of competent jurisdiction that such Indemnitee is not entitled to be
indemnified against such Expenses. Any advances and the undertaking to repay
pursuant to this Article V shall be unsecured and interest free.

                                      -9-
<PAGE>

                                       VI.
                 PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS

         A.       BURDEN OF PROOF. In making a determination with respect to
entitlement to indemnification of Liabilities and advancement of Expenses
hereunder, including a determination pursuant to Section IV.F, the person or
persons or entity making such determination shall consider the Indemnitee's
right to such entitlement de novo and such Indemnitee shall not be prejudiced by
reason of a prior determination that such Indemnitee is not entitled to
indemnification. The person or persons making such determination shall also
presume that the Indemnitee is entitled to indemnification and advancement of
Expenses under this Agreement, which presumption the Corporation shall have the
burden of proof to overcome.

         B.       EFFECT OF OTHER PROCEEDINGS. The termination of any Proceeding
or of any claim, issue or matter therein, by judgment, order, settlement or
conviction, or upon a plea of nolo contendere or its equivalent, shall not of
itself affect the right of an Indemnitee to indemnification or create a
presumption that such Indemnitee acted in Bad Faith.

         C.       ACTIONS OF OTHERS. The knowledge and/or actions, or failure to
act, of any director, officer, agent or employee of the Corporation shall not be
imputed to the Indemnitees for purposes of determining the right to
indemnification under this Agreement.

                                      VII.
                 NON-EXCLUSIVITY, SUBROGATION AND MISCELLANEOUS

         A.       NON-EXCLUSIVITY. The rights of each Indemnitee hereunder shall
not be deemed exclusive of any other rights to which such Indemnitee may at any
time be entitled under any provision of law, regulation, the Corporation's
charter, bylaws, vote of shareholders, resolution of directors or otherwise, and
to the extent that during the term of this Agreement the rights of the then
existing directors and officers are more favorable to such directors and
officers than the rights currently provided to the Indemnitees under this
agreement, the Indemnitees shall be entitled to the full benefits of such more
favorable rights.

         B.       SUBROGATION. In the event of any payment under thus Agreement,
the Corporation shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee to whom such payment is made. Such
Indemnitee shall execute all documents required and take all action necessary to
secure such rights, including execution of such documents as are necessary to
enable the Corporation to bring suit to enforce such rights.

         C.       NOTICES. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand and receipted for by the party to whom said
notice or other communication shall have been directed, when received, or (ii)
mailed by certified or registered mail with postage prepaid, on the third
business day after the date on which it is so mailed:

                                      -10-
<PAGE>

                  If to an Indemnitee, addressed to the Indemnitee at the
                  following addresses:

                  With a copy to:

                  If to the Corporation, addressed to the Corporation at the
                  following address:

                  Burnham Pacific Properties, Inc.
                  110 West A Street
                  Suite 900
                  San Diego, California 92101
                  Attn:  Corporate Secretary
                  (619) 652-4711 (fax)

                  If to the Operating Partnership, addressed to the Operating
                  Partnership at the following address:

                  Burnham Pacific Operating Partnership, L.P.
                  110 West A Street
                  Suite 900
                  San Diego, California 92101
                  Attn:  Corporate Secretary
                  (619) 652-4711 (fax)

or to such other address as may have been furnished to an Indemnitee by the
Corporation or to the Corporation by an Indemnitee, as the case may be.

         D.       GOVERNING LAW. THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE SUBSTANTIVE LAWS
OF THE STATE OF MARYLAND WITHOUT REGARD TO ITS CHOICE OF LAW RULES.

         E.       ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement and understanding between the parties hereto in reference to the
subject matter hereof; PROVIDED, HOWEVER, that the parties acknowledge and agree
that the charter and bylaws of the Corporation may contain provisions on the
subject matter hereof and that this Agreement is not intended to, and does not,
limit the rights or obligations of the parties hereto pursuant to such
instruments.

                                      -11-
<PAGE>

         F.       SUCCESSORS AND ASSIGNS. The rights, benefits, responsibilities
and obligations arising hereunder shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, assigns,
successors, affiliates, agents, and representatives.

         G.       AMENDMENT OF AGREEMENT AND SCHEDULES. No amendment,
alteration, rescission or replacement of this Agreement or any provision hereof
shall (i) be effective as to any Indemnitee or the Corporation unless executed
in writing by the Indemnitee(s) affected thereby and the Corporation if affected
thereby or (ii) be effective as to any Indemnitee with respect to any action or
inaction by such Indemnitee in the Indemnitee's Official Status prior to such
amendment, alteration, rescission or replacement.

         H.       TITLES. The titles to the articles and sections of this
Agreement are inserted for convenience or reference only and should not be
deemed a part hereof or affect the construction or interpretation of any
provisions hereof.

         I.       INVALIDITY OF PROVISIONS. Every provision of this Agreement is
severable, and the invalidity or unenforceability of any term or provision shall
not effect the validity or enforceability of the remainder of this Agreement.

         J.       PRONOUNS AND PLURALS. Whenever the context may require, any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and VICE VERSA.

         K.       SEVERABILITY. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever:

               1. the validity, legality and enforceability of the remaining
         provisions of this Agreement (including, without limitation, each
         portion of any Article of this Agreement containing any such provision
         held to be invalid, illegal or unenforceable, that is not itself
         invalid, illegal or unenforceable) shall not in any way be affected or
         impaired thereby; and

               2. to the fullest extent possible, the provisions of this
         Agreement (including, without limitation, each portion of any Article
         of this Agreement containing any such provision held to be invalid,
         illegal or unenforceable, that is not itself invalid, illegal or
         unenforceable) shall be construed so as to give effect to the intent
         manifested thereby.

                                      -12-
<PAGE>

         L.       COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together constitute one agreement binding on all the parties hereto.

                                      VIII.
                      OBLIGATIONS OF OPERATING PARTNERSHIP

                  The Operating Partnership shall have the same obligations to
the Indemnitee as the obligations of the Corporation hereunder, the Operating
Partnership hereby acknowledging and confirming to the Indemnitee (a) that the
services of the Indemnitee as a director and/or an officer of the Corporation
are important and valuable to the Operating Partnership because of the
Corporation's status as general partner of the Operating Partnership, and (b)
that the business and affairs of the Corporation are conducted primarily
through, and the assets of the Corporation are owned primarily by, the Operating
Partnership. Without limiting the other provisions of this Agreement, the
Indemnitee shall be entitled to indemnification and to his other rights
hereunder with respect to matters arising in the conduct of the affairs of the
Operating Partnership to the same extent as with respect to matters arising in
the conduct of the affairs of the Corporation.

                                      -13-
<PAGE>

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

                              BURNHAM PACIFIC PROPERTIES, Inc.
                              a Maryland corporation

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

                              BURNHAM PACIFIC OPERATING
                              PARTNERSHIP, L.P.,
                              a Delaware limited partnership

                              By:   BURNHAM PACIFIC PROPERTIES, Inc.
                                    a Maryland corporation, its General Partner

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

                              -----------------------------------
                              (Indemnitee)

                                      -14-
<PAGE>

                                    EXHIBIT A
                 FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

         Re:      Undertaking to Repay Expenses Advanced

Ladies and Gentlemen:

         Pursuant to the Indemnification Agreement dated as of the _____ day of
_______________, 2000 by and among the Corporation and the Indemnitees, the
undersigned is an Indemnitee and is thereby entitled to advancement of expenses
in connection with [DESCRIPTION OF PROCEEDING] (the "Proceeding"). Terms used
herein and not otherwise defined shall have the meanings specified in the
Indemnification Agreement.

         I am subject to the Proceeding by reason of my Official Status or by
reason of actions allegedly taken or omitted by me in such capacity. During the
period of time to which the Proceeding relates I was [(NAME OF POSITION HELD)]
of Burnham Pacific Properties, Inc. (the "Corporation"). Pursuant to Section V
of the Indemnification Agreement, the Corporation is obligated to advance to me
Expenses that are reasonably incurred by or for me in connection with the
Proceeding, provided that I execute and submit to the Corporation an Undertaking
in which I (i) undertake to repay the Corporation for any Expenses paid by it on
my behalf if it shall be ultimately determined that I am not entitled to be
indemnified by the Corporation against such Expenses, (ii) affirm my good faith
belief that I have met the standard of conduct necessary for indemnification by
the Corporation, and (iii) reasonably evidence the Expenses incurred by or for
me.

         [DESCRIPTION OF EXPENSES INCURRED OR TO BE INCURRED BY OR FOR
INDEMNITEE]

         This letter shall constitute my undertaking to repay to the Corporation
any Expenses paid by it on my behalf in connection with the Proceeding if it is
ultimately determined that I am not entitled to be indemnified by the
Corporation with respect to such Expenses as set forth above. I hereby affirm my
good faith belief that I have met the standard of conduct necessary for
indemnification by the Corporation and that I am entitled to such
indemnification.

                                               ---------------------------------
                                               Signature

                                               ---------------------------------
                                               Name

                                               ---------------------------------
                                               Date

                                       A-1

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