Document:

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                          PURCHASE AND SALE AGREEMENT

                                    between

                        Burnham Pacific Properties, Inc.

                                   ("Seller")

                                      and

                  The Prudential Insurance Company of America

                                   ("Buyer")

                          Dated as of September 5, 2000

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                                TABLE OF CONTENTS

ARTICLE I             DEFINITIONS
         1.1          Agreement
         1.2          Assets
         1.3          Assumed Indebtedness
         1.4          Business Day
         1.5          Buyer
         1.6          Cash
         1.7          Closing or Closings
         1.8          Closing Date
         1.9          Construction Contracts
         1.10         Earnest Money Deposit
         1.11         Effective Date
         1.12         Encumbrances
         1.13         Equipment Leases
         1.14         Escrow Agent
         1.15         Improvements
         1.16         Knowledge
         1.17         Management Agreements
         1.18         Material Adverse Effect
         1.19         Material Contract
         1.20         Material Lease
         1.21         Material Tenant
         1.22         New Title Matters
         1.23         OP Unit Holders
         1.24         Permits and Licenses
         1.25         Permitted Exceptions
         1.26         Personal Property
         1.27         Preliminary Title Reports
         1.28         Property and Properties
         1.29         Property Restrictions
         1.30         Purchase Price
         1.31         Rent Rolls
         1.32         Required Consents
         1.33         Sales Transaction
         1.34         Seller
         1.35         SELLER DISCLOSURE SCHEDULE
         1.36         Seller Subsidiary or Seller Subsidiaries
         1.37         Service Contracts
         1.38         Surveys
         1.39         Tax Protection Agreements
         1.40         Tax Protection Properties
         1.41         Tenant Deposits
         1.42         Tenant Leases
         1.43         Tenants

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         1.44         Termination Date
         1.45         Title Policy
         1.46         Trademarks

ARTICLE II            AGREEMENT FOR PURCHASE AND SALE

ARTICLE III           REPRESENTATIONS AND WARRANTIES OF SELLER
         3.1          Existence; Good Standing; Authority; Compliance with Law
         3.2          Authorization, Validity and Effect of Agreements
         3.3          No Violation; Consents
         3.4          Litigation
         3.5          Real Property Matters
         3.6          Intellectual Property
         3.7          Environmental Matters
         3.8          No Brokers
         3.9          Non-Foreign Person
         3.10         SELLER DISCLOSURE SCHEDULE

ARTICLE IV            REPRESENTATIONS AND WARRANTIES OF BUYER
         4.1          Existence; Good Standing; Authority; Compliance with Law
         4.2          Authorization, Validity and Effect of Agreements
         4.3          Brokers

ARTICLE V             CONDITIONS TO CLOSING
         5.1          Condition to the Obligations of Each Party to Effect
                        the Closings
         5.2          Conditions to Obligations of Buyer
         5.3          Conditions to Obligations of Seller

ARTICLE VI            CLOSING
         6.1          Assignment
         6.2          Time and Place
         6.3          Seller's Closing Deliveries
         6.4          Buyer's Closing Deliveries
         6.5          Escrow Agent's Duties
         6.6          Prorations; Deposits; Delinquent Rents
         6.7          Closing Costs/Transfer Expenses
         6.8          Possession

ARTICLE VII           COVENANTS
          7.1         Conduct by the Seller
          7.2         No Solicitations
          7.3         Required Filings and Consents
          7.4         Estoppels
          7.5         Title Matters
          7.6         Risk of Loss
          7.7         Management Agreements

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         7.8          Construction
         7.9          Stockholder Meeting
         7.10         Tenant Improvements and Leasing Commissions for
                        Interim Leases

ARTICLE VIII          TERMINATION, AMENDMENT, WAIVER AND LIMITATION
         8.1          Termination
         8.2          Effect of Termination
         8.3          Amendment
         8.4          Extension; Waiver
         8.5          Limitation of Claims
         8.6          Specific Property Terminations

ARTICLE IX            INDEMNITY
         9.1          Seller's Indemnity
         9.2          Buyer's Indemnity

ARTICLE X             SELLER'S DISCLAIMER

ARTICLE XI            GENERAL PROVISIONS
         11.1         Attorneys' Fees
         11.2         Notices
         11.3         Additional Acts
         11.4         Time of Essence
         11.5         Waiver
         11.6         Construction
         11.7         Interpretation
         11.8         Headings
         11.9         No Third Party Beneficiary
         11.10        Survival of Representations, Warranties, Covenants and
                        Agreements
         11.11        Injunction
         11.12        Miscellaneous
         11.13        Assignment
         11.14        Severability
         11.15        Choice of Law/Consent to Jurisdiction
         11.16        Incorporation
         11.17        Natural Hazard Areas
         11.18        ERISA
         11.19        Olympiad Plaza Loan
         11.20        Liquidated Amount, Topping Amount and Liability Cap
                        Adjustments

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                                    EXHIBITS
                                    --------

1.28                       Legal Descriptions

1.31                       Form of Rent Roll

5.2.2                      Oregon Properties

6.3.1                      Form of Special Warranty Deed

6.3.3                      Form of Assignment of Leases

6.3.4                      Form of Assignment of Service Contracts

6.3.5                      Form of Bill of Sale

6.3.6                      Form of Assignment of Guaranties and Warranties

6.3.7                      Form of Assignment of Permits and Licenses

6.3.8                      Form of Assignment of Leases (Equipment Leases)

6.3.9                      Form of Assignment of Declarant's Rights

6.3.10                     Form of Assignment of Trade Name and Trademark Rights

6.3.11                     Form of I.R.C. Section 1445 Affidavit

11.18                      Plans (ERISA)

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                                    SCHEDULES
                                    ---------

1.3               Schedule of Assumed Indebtedness

1.9               Schedule of Construction Contracts

1.10              Earnest Money Allocations

1.17              Schedule of Management Agreements

1.27              Schedule of Preliminary Title Reports

1.28              Schedule of Properties

1.30              Schedule of Purchase Price Allocation

1.35              Seller Disclosure Schedule

1.36              Schedule of Seller Subsidiaries

1.39              Tax Protection Agreements

1.40              Tax Protection Properties

3.5.6             Pleasant Hill DDA

5.2.7(a)          Kmart Property

5.2.7(b)          OP Unit Property

5.2.8             Pleasant Hill Property

7.5               Title Matters

8.6               Hilltop/Village East Properties

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                           PURCHASE AND SALE AGREEMENT
                           ---------------------------

         THIS PURCHASE AND SALE AGREEMENT is entered into and to be effective as
of the 5th of September, 2000 (the "Effective Date"), by and between Burnham
Pacific Properties, Inc., a Maryland corporation (the "Seller") and The
Prudential Insurance Company of America, a New Jersey corporation ("Buyer").

                                 R E C I T A L S

         A. Seller, through various subsidiary companies identified on SCHEDULE
1.36 attached, is the owner of certain neighborhood and community shopping
center properties described on SCHEDULE 1.28 attached; and

         B. Buyer desires to purchase from the Seller and the Seller
Subsidiaries and Seller desires to sell and cause the Seller Subsidiaries to
sell to Buyer all of the Assets, upon the terms and conditions set forth in this
Agreement.

         NOW, THEREFORE, in consideration of the promises, representations and
warranties hereinafter set forth, and for other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
set forth below.

                                    ARTICLE I

                                   DEFINITIONS

         1.       DEFINITIONS.  The following terms shall have the following
meanings when used in this Agreement:

                  1.1 "AGREEMENT" This Purchase and Sale Agreement, including
all Exhibits and Schedules attached hereto, as the same may be amended in
accordance with the terms of this Agreement and the SELLER DISCLOSURE SCHEDULE;

                  1.2 "ASSETS" The Properties and all Tenant Leases, Equipment
Leases, Service Contracts, Improvements and Personal Property associated with
all of the Properties or one or more of the Properties and the Tenant Leases,
Equipment Leases, Service Contracts, Improvements and Personal Property
associated with such Properties, as the context may require;

                  1.3 "ASSUMED INDEBTEDNESS" The indebtedness described on
SCHEDULE 1.3, attached hereto, applicable to all of the Properties or one or
more of the Properties, as the context may require;

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                  1.4 "BUSINESS DAY" A day other than a Saturday, Sunday or day
on which banking institutions in the City of New York, New York are authorized
or required by law or executive order to be closed;

                  1.5 "BUYER" As defined in the Introductory Paragraph;

                  1.6 "CASH" United States currency represented by cash in hand,
certified or cashier's check, wire transfer or other immediately available
funds;

                  1.7 "CLOSING" OR "CLOSINGS" The consummation of a Sales
Transaction for one or more of the Properties or the consummation of all of the
Sales Transactions for all of the Properties, as the context may require, as
evidenced by the delivery of all required funds and documents to Escrow Agent
for each of the Sales Transactions;

                  1.8 "CLOSING DATE"  As defined in PARAGRAPH 6.2;

                  1.9 "CONSTRUCTION CONTRACTS" The contracts and agreements
listed on SCHEDULE 1.9 entered into by Seller and Seller Subsidiaries for the
construction work being completed at the Pleasant Hill and Cameron Park
Properties;

                  1.10 "EARNEST MONEY DEPOSIT" $5,000,000, in Cash, to be
deposited by Buyer with Escrow Agent within 1 Business Day after delivery to
Escrow Agent of a fully-executed original of this Agreement, together with all
interest accrued thereon. Seller and Buyer hereby instruct Escrow Agent to hold
the Earnest Money Deposit in a federally-insured interest-bearing account with
no penalty for early withdrawal. The Earnest Money Deposit shall be allocated
among the Properties as set forth on SCHEDULE 1.10. The Earnest Money Deposit
shall be applied and paid as provided in PARAGRAPHS 1.30, 8.2.2, 8.2.3 AND
8.2.4, as applicable;

                  1.11 "EFFECTIVE DATE"  As defined in the Introductory
Paragraph;

                  1.12 "ENCUMBRANCES"  As defined in PARAGRAPH 3.5.2;

                  1.13 "EQUIPMENT LEASES" Those certain leases, if any, between
the Seller or Seller Subsidiaries, as lessee, and third parties, as lessor,
covering equipment and other personal property used by the Seller or any of the
Seller Subsidiaries at or in connection with one or more of the Properties;

                  1.14     "ESCROW  AGENT"  Chicago Title Insurance Company,
Attention: Shelva Molm, telephone 619-544-6250;

                  1.15 "IMPROVEMENTS" All: (i) buildings, structures, walkways,
parking areas, driveways, signs, fixtures and other improvements comprising a
part of a Property as of the Effective Date or acquired by Seller or any Seller
Subsidiary prior to the Closing Date, subject to the terms of PARAGRAPH 7.1; and
(ii) all other rights, benefits and privileges appurtenant thereto as of the
Effective Date or acquired by the Seller or any Seller Subsidiary prior to the
Closing Date, subject to the terms of PARAGRAPH 7.1;

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                  1.16 "KNOWLEDGE" The knowledge of Karen Polivy, Courtney
Trujillo, Allison Lynch, Jeanne Wilson, Kim Campbell, Tom Rau, Colleen Dolan,
Tom Ohlsen, Lisa Cortese (who are the asset managers of one or more of the
Properties), Scott Verges, John Waters and Daniel Platt. Seller represents and
warrants to Buyer that these individuals are all of the individuals employed by
Seller that have primary management, or maintenance responsibility for the
Assets so that no individual likely to have material and specialized knowledge
as to the Assets has been omitted from this list.

                  1.17 "MANAGEMENT AGREEMENTS" The separate management
agreements between the Seller and Seller Subsidiaries and various managers
with respect to each of the Properties more fully described on SCHEDULE 1.17
attached;

                  1.18 "MATERIAL ADVERSE EFFECT" A material adverse effect on
the use, operation, occupancy, condition or value of a Property. A material
adverse effect shall be presumed to exist if the failures, actions,
determinations, noncompliance, situations, conditions, facts or circumstances
giving rise to the adverse effect are likely to result in losses, costs,
damages, expenses, fines, penalties, violations or liabilities in excess of
$250,000.00; provided, however, for purposes of the representation and
warranty set forth in Section 3.5.4, Material Adverse Effect shall be
presumed to exist if the situations, conditions, facts or circumstances
giving rise to the adverse effect are likely to result in losses, costs,
damages, expenses, fines, penalties or liabilities in excess of $500,000.00;

                  1.19 "MATERIAL   CONTRACTS" As defined in PARAGRAPH 3.5.12
and  listed  in  the  SELLER DISCLOSURE SCHEDULE;

                  1.20 "MATERIAL LEASE" AND "MATERIAL LEASES" A lease or
other occupancy agreement with any Major Tenant or leases or other occupancy
agreements with any Major Tenants, as the context may require, listed in the
SELLER DISCLOSURE SCHEDULE;

                  1.21 "MATERIAL TENANT" AND "MAJOR TENANTS" Any Tenant and
Tenants, as the context may require, occupying more than 7,500 square feet in
any of the Properties or ground leasing any real property at any of the
Properties listed in the SELLER DISCLOSURE SCHEDULE;

                  1.22 "NEW TITLE MATTERS" Any title matters revealed in
updates to the Preliminary Title Reports and Surveys which either: (i) are
not materially adverse to the title of any Property; (ii) cannot be removed
despite Seller's reasonable efforts pursuant to PARAGRAPH 7.5 and are waived
by Buyer; or (iii) are permitted pursuant to PARAGRAPH 7.1.

                  1.23 "OP  UNIT   HOLDERS" The holders of operating
partnership units in the Seller Subsidiaries.

                  1.24 "PERMITS AND LICENSES"  As defined in PARAGRAPH 1.26;

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                  1.25  "PERMITTED  EXCEPTIONS"  All: (i) taxes against each
Property not due and payable as of Closing;  (ii) all other matters affecting
title to a Property set forth on the Preliminary Title Reports or shown on
the Surveys; and (iii) New Title Matters;

                  1.26  "PERSONAL PROPERTY" All of Seller's and Seller
Subsidiaries' right, title and interest in and to all personal property of
every kind and nature now or hereafter installed, located, situated or used
in, on or about, or in connection with the operation, use or enjoyment of
each Property and the Improvements located thereon, including but not limited
to:

                        (i)    all transferable licenses, permits,
certificates of occupancy and other approvals issued by any governmental or
quasi-governmental authority pertaining to the use, management, operation or
maintenance of a Property ("PERMITS AND LICENSES");

                        (ii)   all plans, drawings, engineering and other
reports, surveys, studies and specifications pertaining to a Property;

                        (iii)  all keys and combinations to all doors,
cabinets, safes, enclosures and other locking items or areas on or about a
Property;

                        (iv)   all trademarks, trade names, service marks and
goodwill associated with the business conducted on a Property ("TRADEMARKS"),
but Trademarks do not include the names or words "Burnham", "BPP" or similar
words (the "BURNHAM TRADEMARKS");

                        (v)    all furniture, appliances, fixtures, equipment,
supplies and materials located upon or used in the operation of a Property;

                        (vi)   all warranties and guaranties relating to the
Personal Property or the Improvements on each Property;

                        (vii)  all books, records, reports or other documents
pertaining to the Assets; and

                        (viii) all refundable Tenant security and other
deposits (the "TENANT  DEPOSITS") and all prepaid rents pertaining to the
Tenant Leases;

                  1.27 "PRELIMINARY TITLE REPORTS" The Preliminary Title
Reports for the Properties issued by Chicago Title Company more fully
described on SCHEDULE 1.27 attached;

                  1.28 "PROPERTY" AND "PROPERTIES" The parcels of real property,
or any one or more of them, as the context may require, referred to in Recital A
and legally described on EXHIBIT 1.28 attached hereto, together with all
Improvements thereon, and including to the extent of Seller's interest therein,
all easements, rights of way, water rights, mineral rights, roads, streets and
ways, rights of parking, ingress and egress and appurtenances running with or
pertaining thereto;

                  1.29 "PROPERTY RESTRICTIONS"  As defined in PARAGRAPH 3.5.2;

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                  1.30 "PURCHASE PRICE" The aggregate purchase price payable by
Buyer to Seller for all of the Properties shall be $355,610,637.00 (U.S.)
payable as provided in this PARAGRAPH 1.30. The Purchase Price is allocated
among the Assets as set forth on SCHEDULE 1.30. At each Closing, the Purchase
Price to be paid by Buyer to Seller for the Assets, that are the subject of the
Closing, shall be the sum of the amounts allocated to such Assets on SCHEDULE
1.30, payable as follows:

                           (i)   The portion of the Earnest Money Deposit
allocated to such Assets on SCHEDULE 1.10 shall be applied towards the
Purchase Price and paid to Seller;

                           (ii)  Buyer shall assume the Assumed Indebtedness
applicable to such Assets, for which Buyer shall receive a credit towards the
Purchase Price in the amount of the principal balance and all accrued, but
unpaid interest, on such Assumed Indebtedness outstanding as of the Closing
Date; and

                           (iii) the balance of the Purchase Price, subject
to adjustments, credits and reductions as provided in this Agreement, is to
be paid in Cash, to be deposited with Escrow Agent and paid to Seller at the
Closing;

Whenever the term "Purchase Price" is used in this Agreement, it shall mean the
Purchase Price payable for the Assets that are the subject of the Closing.

                  1.31 "RENT ROLLS"  The rent roll for each Property in the
form attached as EXHIBIT 1.31;

                  1.32 "REQUIRED CONSENTS"  As defined in PARAGRAPH 5.2.4;

                  1.33 "SALES TRANSACTION" or "SALES TRANSACTIONS" The purchase
and sale of the Assets associated with one or more of the Properties by and
between Buyer and Seller or the purchase and sale of all of the Assets, as the
context may require, each as contemplated by this Agreement;

                  1.34 "SELLER"  As defined in the Introductory Paragraph;

                  1.35 "SELLER  DISCLOSURE  SCHEDULE" The SELLER  DISCLOSURE
SCHEDULE  delivered by Seller and attached hereto as SCHEDULE 1.35;

                  1.36 "SELLER SUBSIDIARY" or "SELLER SUBSIDIARIES" The
partnerships, corporations and limited liability companies affiliated with
Seller which own the Properties as described on SCHEDULE 1.36 attached;

                  1.37 "SERVICE CONTRACTS" All service, repair, maintenance,
tenant improvement construction, operating and property management contracts
(excluding the Management Agreements which are to be cancelled as of the
Closing) in effect on the Effective Date and other

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agreements entered into by Seller and Seller Subsidiaries with regard to the
Properties, pursuant to the terms of PARAGRAPH 7.1 of this Agreement;

                  1.38 "SURVEYS"  As defined in PARAGRAPH 3.5.2;

                  1.39 "TAX PROTECTION AGREEMENTS" Those agreements listed on
SCHEDULE 1.39, attached hereto;

                  1.40 "TAX PROTECTION PROPERTIES" Those Properties listed on
SCHEDULE 1.40, attached hereto, that are the subject of the Tax Protection
Agreements;

                  1.41 "TENANT DEPOSITS"  As defined in PARAGRAPH 1.26;

                  1.42 "TENANT LEASES" All written leases or occupancy
agreements with respect to the Properties between the Seller and Seller
Subsidiaries, or any prior owner of each of the Properties, as landlord, and
the Tenants in effect on the Effective Date, and those Leases entered into by
the Seller and Seller Subsidiaries pursuant to the terms of PARAGRAPH 7.1 of
this Agreement;

                  1.43 "TENANTS" The  individuals or entities who are the named
tenants under the respective Tenant Leases;

                  1.44 "TERMINATION DATE"  The day that is 180 days after the
Effective Date;

                  1.45 "TITLE POLICY" An ALTA extended coverage Owner's Policy
of Title Insurance issued by Chicago Title Insurance Company for each Property
insuring the fee simple estate in an amount equal to the allocated portion of
the Purchase Price for each Property, naming Buyer or its nominee as the
insured, subject only to the Permitted Exceptions. The Title Policy shall
include such endorsements that are available for a particular Property as Buyer
may reasonably require, at Buyer's sole cost and expense. Buyer shall receive
fully executed facultative reinsurance agreements with direct access from other
title insurers for all amounts of liability under the Title Policy in excess of
such amount as Buyer may reasonably determine prior to Closing; and

                  1.46     "TRADEMARKS"  As defined in PARAGRAPH 1.26.

                                   ARTICLE II

                         AGREEMENT FOR PURCHASE AND SALE

         Upon execution and delivery by Seller and Buyer, this Agreement shall
be the binding agreement between Buyer and Seller for the purchase and sale of
the Assets on the terms and conditions set forth in this Agreement. This
Agreement supersedes all other written or verbal agreements between Buyer and
Seller concerning the Sales Transactions.

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                                   ARTICLE III

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller, as of the Effective Date for all of the Assets and each
Closing Date for the Assets that are the subject of the Closing, represents
and warrants to Buyer as follows (provided, however, that each representation
and warranty shall be deemed expressly qualified by any information expressly
set forth in any document, instrument or agreement listed on the SELLER
DISCLOSURE SCHEDULE and such information shall be deemed an exception to each
representation and warranty set forth herein) and shall be deemed expressly
qualified by any information actually known by Buyer as of the Closing Date
as to those Properties acquired on such Closing Date. On each Closing Date,
the representations and warranties shall only be remade for the Assets that
are the subject of the Closing:

         3.1      EXISTENCE; GOOD STANDING; AUTHORITY; COMPLIANCE WITH LAW.

                  3.1.1 Seller and Seller Subsidiaries are entities duly
organized, validly existing and in good standing under the laws of the states of
their formation. Seller and Seller Subsidiaries have all requisite corporate
power and authority to own, operate, lease and encumber their properties and
carry on their business as now conducted.

                  3.1.2 Neither the Seller, any of the Seller Subsidiaries, nor
any of the Properties is in violation of any order of any judgment, decree or
court order, governmental authority or arbitration board or tribunal, or any
statute, law, ordinance, governmental rule or regulation to which the Seller,
any Seller Subsidiary or any of the Assets is subject, where such violation,
singly or in the aggregate with such other failures, as to a single Property,
would have a Material Adverse Effect. The Seller and the Seller Subsidiaries
have obtained all licenses, permits and other authorizations (other than
stockholder and OP Unit Holders approval) and have taken all actions required by
applicable law or governmental regulations in connection with their respective
Assets and their businesses as now conducted, except where the failure to obtain
any such license, permit or authorization or to take any such action, singly or
in the aggregate with such other failures, as to a single Property, would have a
Material Adverse Effect.

         3.2      AUTHORIZATION, VALIDITY AND EFFECT OF AGREEMENTS. Subject
to Seller obtaining stockholder and OP Unit Holders approval, Seller has the
requisite power and authority to consummate the Sales Transactions and to
execute and deliver this Agreement. The execution by the Seller of this
Agreement and the consummation of the Sales Transactions has been duly
authorized, or prior to Closing will be duly authorized, by all requisite
corporate action on the part of the Seller and Seller Subsidiaries. This
Agreement, assuming due and valid authorization, execution and delivery
thereof by the Buyer, constitutes a valid and legally binding obligation of
the Seller enforceable in accordance with its terms. Subject to Seller
obtaining stockholder and OP Unit Holders approval, Seller has the requisite
power and authority to cause the Seller Subsidiaries to perform the
obligations necessary to consummate the Sales Transactions in accordance with
this Agreement.

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         3.3 NO VIOLATION; CONSENTS. Subject to Seller obtaining stockholder
and OP Unit Holders approval, neither the execution and delivery by Seller of
this Agreement, nor consummation by the Seller and Seller Subsidiaries of the
Sales Transactions in accordance with the terms hereof will conflict with or
result in a breach of any provisions of the operating agreements, preferred
stockholder agreements, tax protection agreements, partnership agreements,
articles of incorporation, charters or bylaws of the Seller or Seller
Subsidiaries. The consummation of the Sales Transactions in accordance with
the terms hereof will not violate, or conflict with, or result in a breach of
any provision of, or constitute a default (or an event which, with notice or
lapse of time or both, would constitute a default) under, or result in the
termination or in a right of termination or cancellation of, or accelerate
the performance required by, or result in the creation of any lien, security
interest, charge or encumbrance upon any of the Assets under, or result in
being declared void, voidable or without further binding effect, any of the
terms, conditions or provisions of: (i) any note, bond, mortgage, indenture
or deed of trust (other than the prohibition against transfers without
lender's consent as set forth in mortgages or deeds of trust encumbering the
Properties); or (ii) any license, franchise, permit, lease (other than the
lease with Kmart (as defined below in PARAGRAPH 5.2.7)), contract, agreement
(other than the Tax Protection Agreements), commitment or other instrument,
encumbering or binding upon any of the Assets, except as otherwise would not
have a Material Adverse Effect. The execution and delivery of this Agreement
and the consummation of the Sales Transactions will not violate any federal,
state or local law, ordinance, statute, rule, regulation, decree or order.

         3.4     LITIGATION. Except as set forth in the SELLER DISCLOSURE
SCHEDULE, there is no litigation, suit, action or proceeding pending nor has
Seller or any Seller Subsidiary received written notice of any threatened
litigation, suit, action or proceeding against the Seller or any of the
Seller Subsidiaries or between or among Seller and Seller Subsidiaries, as to
which there is a reasonable likelihood of an adverse determination and which,
if adversely determined, would, singly or in the aggregate with such other
actions as to any single Property: (i) have a Material Adverse Effect; (ii)
adversely affect the Seller's ability to perform its obligations under this
Agreement; or (iii) prevent the consummation of any of the Sales
Transaction(s).

         3.5      REAL PROPERTY MATTERS .

                  3.5.1 The Seller or one of the Seller Subsidiaries owns fee
simple title to each of the Properties. Neither the Seller nor any of the
Seller Subsidiaries has executed or entered into any agreement to sell,
exchange, transfer, convey or otherwise dispose of all or any portion of the
Assets other than a purchase and sale agreement to sell the Plaza at Puente
Hills Property (the "PUENTE HILLS AGREEMENT"). Seller shall terminate the
Puente Hills Agreement on or before September 5, 2000.

                  3.5.2 The Properties are not subject to any liens, security
interests or other encumbrances on title or options, rights of first refusal,
rights of first offer or other rights to purchase the Properties
(collectively, the "ENCUMBRANCES") and are not subject to any rights of way,
reciprocal easement agreements, development agreements, or written agreements
affecting building use or occupancy or reservations of an interest in title
(collectively, the "PROPERTY RESTRICTIONS"), except for the Tenant Leases,
Encumbrances and Property Restrictions disclosed on the Preliminary Title
Reports or existing title insurance policies or surveys listed on the SELLER

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DISCLOSURE SCHEDULE (the "SURVEYS") and except for New Title Matters. None of
the Properties is encumbered by any document, instrument or agreement that
includes any restriction on the sale or other disposition thereof or on the
financing of or release of any financing thereon, except for certain
restrictions relating to tax protection covenants contained in the Tax
Protection Agreements, due-on-sale and due-on-encumbrance clauses contained
in mortgages and deeds of trust or other financing documents for the Assumed
Indebtedness and the rights of first refusal in the Properties listed on
SCHEDULES 5.2.7(a) and 5.2.7(b), all as set forth in the SELLER DISCLOSURE
SCHEDULE or SCHEDULE 1.39.

                  3.5.3 Except as disclosed in the SELLER DISCLOSURE
SCHEDULE, the Seller and Seller Subsidiaries are not in, and have not
received any written notice of any, violation of: (i) any federal, state or
municipal law, ordinance, order, rule, regulation or requirement affecting
any of the Assets issued by any governmental authorities; or (ii) any
Encumbrances or Property Restrictions, which singly or in the aggregate with
all other such violations as to a single Property would have a Material
Adverse Effect.

                  3.5.4 Except as disclosed in the SELLER DISCLOSURE
SCHEDULE, there are no structural defects relating to any one Property or
Improvements thereon which singly or in the aggregate with all other defects
pertaining to such Property would have a Material Adverse Effect.

                  3.5.5 Except as disclosed in the SELLER DISCLOSURE
SCHEDULE, neither the Seller nor any Seller Subsidiary has received any
written notice to the effect that any condemnation or rezoning proceedings
are pending or threatened with respect to any of the Properties.

                  3.5.6 Except as disclosed in the SELLER DISCLOSURE
SCHEDULE, and SCHEDULE 3.5.6 attached hereto, all work to be performed,
payments to be made and actions to be taken by the Seller or a Seller
Subsidiary prior to the date hereof pursuant to any agreement entered into
with a governmental body or authority in connection with a site plan,
approval, zoning reclassification or similar action relating to any of the
Properties, has been performed, paid or taken, as the case may be, except
where the failure to so perform, pay or take action would not singly or in
the aggregate with all other such failures have a Material Adverse Effect and
to the knowledge of the Seller, there is not any planned or proposed work,
payment or action that may be required after the date hereof pursuant to any
such agreement, which, if not completed, paid or taken, would have a Material
Adverse Effect.

                  3.5.7 Other than ongoing tenant improvement work, and
grading work being conducted at the Hilltop Plaza Property, the Pleasant Hill
Property and the Cameron Park Property are the only Properties under
development or construction by the Seller or any Seller Subsidiary as of the
Effective Date. The development and construction activity as to these two
Properties is described in the SELLER DISCLOSURE SCHEDULE. The Construction
Contracts constitute all of the executory agreements entered into by the
Seller or any of the Seller Subsidiaries relating to the development or
construction of or on such Properties. Seller is not in default, and no event
or circumstances which will result in a default with the giving of notice,
passage of time or both, exists under the Construction Contracts.

                                       9
<PAGE>

                  3.5.8 Except as set forth in the SELLER DISCLOSURE SCHEDULE
or entered into pursuant to the terms of this Agreement, there are no Service
Contracts (excluding the Management Agreements) which are not 30 days
cancelable or Management Agreements or other agreements, instruments or
encumbrances which will be in force or effect as of the Closing Date that
grant any person or entity, any right, title or interest or benefit in or to
all or any part of the Properties or any relating to the operation,
maintenance, repair or management of all or any part of the Properties or
otherwise affect the Properties.

                  3.5.9 The Seller and Seller Subsidiaries have obtained all
federal, state, county and local permits, licenses, waivers, consents,
approvals and authorizations and have made all material registrations,
qualifications, designations, declarations and filings required to own,
operate, lease and manage each of the Properties, except where the failure to
obtain any of the foregoing would not result in a Material Adverse Effect.

                  3.5.10 Except as set forth in the SELLER DISCLOSURE
SCHEDULE: (i) the Rent Rolls attached to the SELLER DISCLOSURE SCHEDULE list
all of the Tenant Leases in effect as of the Effective Date and are complete,
true, correct and accurate in all material respects; (ii) all Tenant Leases
in effect as of the Effective Date are listed on the SELLER DISCLOSURE
SCHEDULE; (iii) each Material Lease is listed on the SELLER DISCLOSURE
SCHEDULE and is in full force and effect, and has not been cancelled,
terminated or surrendered and no notice of cancellation, termination or
surrender has been received or given; (iv) there are no uncured material
monetary defaults under any Material Lease and no offset or payment is
presently available to, or has been asserted in writing by, any Material
Tenant under any Material Lease and to the knowledge of the Seller or Seller
Subsidiaries, there are no uncured material non-monetary defaults under any
Material Lease, and no defense or claim is presently available to, or has
been asserted in writing by, any Material Tenant under any Material Lease,
nor do any state of facts exist which with the passage of time or giving of
notice or both, would constitute a material non-monetary default or breach
under any Material Lease or permit events or claims by any Material Tenant
under any Material Lease; (v) no Material Tenant is entitled to any rent
concession, rent free occupancy or reduction or abatement of rent for any
reason whatsoever, including, without limitation, for any work not yet
performed) or other consideration not yet given in connection with such
Material Tenant's occupancy; (vi) to the extent each Material Tenant space is
completed and ready for occupancy, each Material Tenant has accepted
possession of the space leased to it thereunder; (vii) all tenant
improvements which the Seller or any Seller Subsidiary is obligated to
perform on or before the Closing have been or will be performed prior to
Closing; (viii) all costs required to be paid by landlord to each Material
Tenant pursuant to a Material Lease in connection with leasing, moving,
preparation of space, allowances or assumption of tenant liabilities under
leases for space not located at the Properties have been fully paid and
satisfied to the extent due and payable prior to Closing; and (ix) all
commissions due and payable with respect to any Material Lease executed prior
to September 1, 2000 have been paid or shall otherwise be satisfied by Seller
or Seller Subsidiaries. To Seller's Knowledge, the SELLER DISCLOSURE SCHEDULE
sets forth all tenant improvement allowances and leasing commissions to be
paid under all Tenant Leases in effect as of September 1, 2000.

                  3.5.11 Except as set forth in the SELLER DISCLOSURE
SCHEDULE, there are no suits, actions, proceedings, claims or causes of
action involving any of the Properties threatened in

                                       10
<PAGE>

writing or pending against the Seller or Seller Subsidiaries that are not
adequately covered by insurance. There are no unsatisfied judgments for which
the holder may file a lien against any of the Properties that are not
adequately covered by insurance.

                  3.5.12 Neither the Seller nor any Seller Subsidiary: (i) is
in violation of or in default under any Service Contract, permit, concession,
franchise, license or any other contract, agreement, arrangement or
understanding to which it is a party or by which it or any of the Assets is
bound that requires the payment of more than $10,000.00 annually and is not
terminable on 30 days' notice without penalty ("MATERIAL CONTRACTS"); nor
(ii) have Seller or any Seller Subsidiaries received written notice that such
a violation or default exists, except to the extent that such violation or
default referred to in clauses (i) or (ii), singly or in the aggregate with
all other such violations and defaults, would not have a Material Adverse
Effect. Each Material Contract has been previously made available to Buyer
prior to the Effective Date, and a list of all Material Contracts is set
forth in the SELLER DISCLOSURE SCHEDULE. Neither the Seller nor any of the
Seller Subsidiaries is in default in any respect in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any of the Material Contracts to which it is a party which,
singly or in the aggregate with all other such defaults, would reasonably be
expected to have a Material Adverse Effect.

                  3.5.13 SCHEDULE 1.3 sets forth a list as of the Effective
Date of each loan or credit agreement, note, bond, mortgage, deed of trust,
indenture and any other agreement and instrument evidencing, securing and
relating to the Assumed Indebtedness (the "ASSUMED INDEBTEDNESS DOCUMENTS").
Except as set forth on SCHEDULE 1.3, the Assumed Indebtedness Documents have
not been amended, modified, altered or changed. Neither the Seller nor any of
the Seller Subsidiaries, as applicable, is in default and no event or
circumstance exists with respect to any matter or event which will, with the
lapse of time or giving notice or both, become a default, under any of the
Assumed Indebtedness Documents.

                  3.5.14 Neither the Seller nor any of the Seller
Subsidiaries is a party to any agreement relating to the management of any of
the Properties by any Person other than the Management Agreements.

         3.6 INTELLECTUAL PROPERTY. Neither the Seller nor the Seller
Subsidiaries are owners of, licensees under or holders of any licenses,
registrations or other rights in or to any intangible property which are
material to the business of the Seller and the Seller Subsidiaries at the
Properties as currently conducted, taken as a whole, including, without
limitation, trade names, trademarks and service marks, brand names, software,
patents and copyrights; provided, however, Seller has rights in the Burnham
Trademarks, which Burnham Trademarks are not Trademarks subject to this
Agreement.

         3.7 ENVIRONMENTAL MATTERS. Except as disclosed in the SELLER
DISCLOSURE SCHEDULE, the Properties are in compliance with all Environmental
Laws (as defined below) other than non-compliance with respect to a
particular Property that does not create a Material Adverse Effect. As used
in this Agreement, "ENVIRONMENTAL LAWS" shall mean all federal, state and
local laws, rules, regulations, ordinances, guidelines, codes, decrees,
judgments, orders, permits, authorizations or other legally enforceable
requirements of any governmental entity that purport

                                       11
<PAGE>

to regulate the release of hazardous substances or other materials into the
environment, or impose requirements relating to environmental protection. As
used in this Agreement, "HAZARDOUS MATERIALS" means any hazardous substances,
hazardous materials, toxic substances or waste materials, pollutants,
contaminants, and materials regulated or defined or designated as hazardous,
extremely or imminently hazardous, dangerous or toxic pursuant to any local,
county, state, territorial or federal governmental authority or with respect
to which such a governmental authority otherwise requires environmental
investigation, monitoring, reporting or remediation. Except as disclosed in
the SELLER DISCLOSURE SCHEDULE, there is no administrative or judicial
enforcement proceeding or investigation pending, or to the knowledge of the
Seller or Seller Subsidiaries, threatened against the Seller or any Seller
Subsidiary under any Environmental Law. Except as disclosed in the SELLER
DISCLOSURE SCHEDULE, neither the Seller nor any Seller Subsidiary or, to the
knowledge of the Seller, any legal predecessor of the Seller or any Seller
Subsidiary, has received any written notice that it is potentially
responsible under any Environmental Law for response costs, remediation costs
or natural resource damages, as those terms are defined under the
Environmental Laws, at any of the Properties which could create a Material
Adverse Effect. Except as disclosed in the SELLER DISCLOSURE SCHEDULE,
neither the Seller nor the Seller Subsidiaries has knowledge of any release
on any of the Properties or adjacent properties of Hazardous Materials in any
manner that would, singly or in the aggregate with all other such releases at
such Property, have a Material Adverse Effect.

         3.8  NO BROKERS. Neither the Seller nor the Seller Subsidiaries has
entered into any contract, arrangement or understanding with any person or
firm which may result in the obligation of such entity or Buyer to pay any
finder's fees, brokerage or agent's commissions or other like payments in
connection with the negotiations leading to this Agreement or consummation of
the Sales Transactions, except that the Seller previously retained Goldman,
Sachs & Co., Inc. as its financial advisor in connection with the sale of the
Seller as a company. Seller shall pay all fees and costs payable to Goldman,
Sachs & Co., Inc., if any. Other than the foregoing arrangements, Seller is
not aware of any claim for payment of any finder's fees, brokerage or agent's
commissions or other like payments in connection with the negotiations
leading to this Agreement or consummation of the Sales Transactions. Seller
shall indemnify, defend and hold Buyer harmless for, from and against any
claims by any brokers or agents retained by or associated with Seller in
connection with the Sales Transactions for payments in connection with the
negotiations leading to this Agreement or consummation of the Sales
Transactions.

         3.9  NON-FOREIGN PERSON. Neither the Seller nor any Seller
Subsidiary is a foreign person within the meaning of Sections 1445 and 7701
of the Internal Revenue Code of 1986, as amended.

         3.10 SELLER DISCLOSURE SCHEDULE. The SELLER DISCLOSURE SCHEDULE is
true, correct, accurate and complete in all material respects. All documents,
instruments and agreements referenced in the SELLER DISCLOSURE SCHEDULE are
true, correct, accurate and complete in all material respects and have not been
amended, modified, altered or changed except as set forth in the SELLER
DISCLOSURE SCHEDULE.

                                       12
<PAGE>

Seller, immediately upon obtaining knowledge that any of the representations and
warranties set forth in this ARTICLE III shall be false, untrue or inaccurate,
shall provide written notice to Buyer of the facts or circumstances resulting in
the representation or warranty being false, untrue or inaccurate. If any of the
representations or warranties set forth in this ARTICLE III shall be false,
untrue or inaccurate, then, prior to Closing, Buyer's sole rights shall be as
set forth in ARTICLES VII AND VIII of this Agreement. The representations or
warranties contained in this ARTICLE III shall survive the Closing for the
Assets that are the subject of each Closing for a period of 12 months from the
Closing. All claims for any false, untrue or inaccurate representation or
warranty shall be made, in writing, prior to 11:59 p.m., San Francisco time, on
the first anniversary of the Closing Date for such Assets. All claims made, in
writing, within such 12-month period shall survive the expiration of such
12-month period until resolved. Any recovery by Buyer with respect to such
claims is expressly subject to the Liability Cap as defined in PARAGRAPH 8.5 of
this Agreement.

                                   ARTICLE IV

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller as follows:

         4.1 EXISTENCE; GOOD STANDING; AUTHORITY; COMPLIANCE WITH LAW. Buyer is
a corporation duly organized, validly existing and in good standing under the
laws of the State of New Jersey.

         4.2 AUTHORIZATION, VALIDITY AND EFFECT OF AGREEMENTS. Buyer has the
requisite power and authority to consummate the Sales Transactions and to
execute and deliver this Agreement. Buyer's applicable investment committee has
approved this Agreement and the Sales Transactions. This Agreement, assuming due
and valid authorization, execution and delivery thereof by Seller, constitutes a
valid and legally binding obligation of Buyer, enforceable against Buyer in
accordance with its terms.

         4.3 BROKERS. Buyer has not entered into any contract, arrangement or
understanding with any person or firm which may result in the obligation of such
entity or Seller to pay any finder's fees, brokerage or agent's commissions or
other like payments in connection with this Agreement or the consummation of the
Sales Transactions, except that the Cooperating Entities as defined in PARAGRAPH
6.1 previously retained Bank of America Securities as financial advisor with
respect to the merger with, and acquisition of assets of, Seller as a company.
Buyer shall indemnify, defend and hold Seller harmless for, from and against any
claims by brokers or agents retained by or associated with Buyer in connection
with the Sales Transactions for payments in connection with the negotiations
leading to this Agreement or the consummation of the Sales Transactions.

                                       13
<PAGE>

                                    ARTICLE V

                           CONDITIONS TO EACH CLOSING

         5.1 CONDITION TO THE OBLIGATIONS OF EACH PARTY TO EFFECT THE CLOSINGS.
The respective obligations of Buyer and Seller to effect each Closing for each
of the Assets are subject to the fulfillment or waiver of the following
conditions at or prior to the applicable date:

                  5.1.1 NO PROHIBITION. No statute, rule, regulation, executive
order, decree, ruling or permanent injunction shall have been enacted, entered,
promulgated or enforced by any governmental entity or court which prohibits the
consummation of the Sales Transaction for such Assets substantially on the terms
contemplated by this Agreement.

                  5.1.2 TAX PROTECTION. Prior to the Termination Date, Buyer and
Seller shall attempt to structure the acquisition of the Tax Protection
Properties in a manner that will not trigger payment of any sums due under the
Tax Protection Agreement by Seller. If despite such attempts, Buyer, in its
commercially reasonable judgment, acting in good faith, does not approve of such
restructuring, timely, then Seller shall proceed with a Sales Transaction on the
Tax Protection Properties, subject to all the terms and conditions of this
Agreement, except those in this PARAGRAPH 5.1.2 and Seller shall be responsible
for all obligations under the Tax Protection Agreements. Notwithstanding the
foregoing, if Seller, in good faith, determines that its liability under any Tax
Protection Agreement may exceed $500,000, then Seller shall have the right to
extend the Termination Date with respect to such Tax Protection Property for up
to one hundred eighty (180) days after the Termination Date in order to continue
negotiating such structure or to continue negotiating with the applicable
contributors. If, despite, reasonable, good faith efforts consistent with the
foregoing, Buyer and Seller are still unable to reach an agreement as to the
structure of the acquisition of a Tax Protection Property on or before the
Termination Date as so extended, then Seller and Buyer shall proceed with a Sale
Transaction with respect to such Tax Protection Property, subject to all the
terms and conditions of this Agreement except those set forth in this PARAGRAPH
5.1.2, and Seller shall be responsible for all obligations under the applicable
Tax Protection Agreement.

         5.2 CONDITIONS TO OBLIGATIONS OF BUYER. The obligation of Buyer to
effect each Closing is subject to the fulfillment or waiver of the following
conditions on or prior to the applicable date:

                  5.2.1 REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Seller set forth in this Agreement for the Assets that are the
subject of the Closing shall be true and correct as of the Effective Date and as
of the Closing Date as though made on and as of the Closing Date (except to the
extent such representations and warranties expressly relate to a specific date
or as of the Effective Date, solely, in which case such representations and
warranties shall be true and correct as of such date).

                  5.2.2 ASSETS ALLOCATION. The first Closing shall not occur
until all other conditions precedent have been satisfied, waived or terminated
for a set of Assets having a Purchase Price allocation pursuant to SCHEDULE 1.30
equal to or greater than $100,000,000.00 in

                                       14
<PAGE>

the aggregate. Notwithstanding the foregoing, the Assets described on EXHIBIT
5.2.2 must be acquired by Buyer in the same Closing. In no event shall Buyer be
required to purchase the Hilltop/Village East Properties described on SCHEDULE
8.6 until Buyer has waived, in writing, or failed to timely exercise, its
termination rights pursuant to PARAGRAPH 8.6.

                  5.2.3    INTENTIONALLY OMITTED.

                  5.2.4 CONSENTS, APPROVALS, ETC. Prior to the Termination Date,
all consents, authorizations, orders and approvals of (or filings or
registrations with) any governmental commission, board, authority, other
regulatory body or third parties (including, without limitation, the parties to
the Material Contracts and Assumed Indebtedness as listed on SCHEDULES 1.3 and
as listed in the SELLER DISCLOSURE SCHEDULE, attached hereto) required to be
made or obtained by the Seller and the Seller Subsidiaries and affiliated
entities in connection with the execution, delivery and performance of this
Agreement and the consummation of the Sales Transaction shall have been obtained
or made (the "REQUIRED CONSENTS"). The Required Consents shall include the
release of all cross default and cross collateralization clauses contained in
any of the Assumed Indebtedness Documents cross defaulting and cross
collateralizing any of the Assumed Indebtedness with indebtedness not
encumbering any of the Properties. All Required Consents, including, without
limitation, the assignment and assumption agreements for the Assumed
Indebtedness, shall be pursuant to forms and in substance reasonably
satisfactory to Buyer. If any of the Assumed Indebtedness Documents contemplate
a release from liability of Seller or any Seller Subsidiary upon an approved
transfer of the applicable Property and assumption of the applicable loan, Buyer
agrees to reasonably cooperate with Seller or such Seller Subsidiary, at no cost
to Buyer and without requiring Buyer or any of its members or partners to incur
any additional liability in connection with such loan, in causing the applicable
lender to release Seller or such Seller Subsidiary from its obligations under
the applicable Assumed Loan Documents.

                  5.2.5 LITIGATION. On the Termination Date and each Closing
Date, there shall be no litigation, suit, action or proceeding pending or
threatened against Seller or any Seller Subsidiaries which, in the commercially
reasonable judgment of Buyer, may, if adversely determined, have a Material
Adverse Effect on the Assets that are the subject of the Closing or result in a
claim against Buyer.

                  5.2.6 CONSTRUCTION WORK. On or before the Termination Date,
all construction work to be completed pursuant to and in accordance with the
Construction Contracts (the "CONSTRUCTION WORK") shall have been completed.

                  5.2.7 WAIVER OF RIGHTS. On or before the Termination Date,
Seller shall have obtained from: (i) KMART Corporation ("KMART"), the tenant of
the Property listed on SCHEDULE 5.2.7(a), a written waiver of Kmart's right of
first refusal to purchase any portion of such Property pursuant to the right of
first refusal contained in Kmart's lease of such Property; and (ii) the OP Unit
Holders having an interest in the Seller Subsidiary owning the Property listed
on SCHEDULE 5.2.7(b), a written waiver of such OP Unit Holders' right of first
refusal to acquire such Property.

                                       15
<PAGE>

                  5.2.8 PLEASANT HILL. On or before the Termination Date, the
tenants described on SCHEDULE 5.2.8 attached hereto shall have occupied their
respective premises in the Pleasant Hill Property pursuant to the Tenant Leases
described on SCHEDULE 5.2.8.

                  5.2.9 NEW TITLE MATTERS. As of each Closing Date, there shall
not exist any title matters not disclosed on the Preliminary Title Report and
Surveys that would have a Material Adverse Effect on title to any one Property
that is the subject of the Closing.

         5.3 CONDITIONS TO OBLIGATIONS OF SELLER. The obligation of Seller to
effect each Closing is subject to the fulfillment or waiver of the following
conditions on or prior to the applicable Closing Date or Termination Date, as
applicable:

                  5.3.1 SHAREHOLDER AND OP UNIT HOLDER APPROVAL. Prior to the
Termination Date, the dissolution of Seller permitting the Sales Transactions to
occur shall have been approved by the requisite vote of the stockholders of the
Seller and OP Unit Holders, as applicable.

                  5.3.2 PERFORMANCE OF OBLIGATIONS OF THE BUYER. The Buyer shall
have performed all obligations required to be performed by Buyer under this
Agreement and shall have delivered a certificate to the effect that the
condition set forth in this PARAGRAPH 5.3.2 has been satisfied.

In the event any of the foregoing conditions (other than the condition set forth
in PARAGRAPH 5.1.2) are not satisfied, timely, then the parties shall have the
rights set forth in ARTICLE VIII and PARAGRAPH 11.11 of this Agreement.

                                   ARTICLE VI

                                     CLOSING

         6.1 ASSIGNMENT. Buyer shall have the right or authority to assign
this Agreement, or any of Buyer's rights hereunder, prior to Closing to one or
more limited liability companies, partnerships, corporations or other entity
without the prior written consent of Seller provided, however, that: (i) Buyer
shall do so within sufficient time as to timely close the Sales Transaction in
accordance herewith; and (ii) the assignee corporation, limited liability
company, joint venture, or general or limited partnership shall be comprised of
Buyer, Developers Diversified Realty Corporation and/or Coventry Partners (the
"COOPERATING ENTITIES"), or their affiliates; provided, however, Buyer shall
have the right to assign the right to purchase the Mountaingate Property
pursuant to this Agreement without Seller's consent to any party, including
assignees not affiliated with the Cooperating Entities.

         6.2 TIME AND PLACE. Once all of the conditions precedent set forth in
PARAGRAPHS 5.1.2, 5.2.2, 5.2.4, 5.2.6-5.2.9 AND 5.3 have been satisfied, waived
(in writing) or terminated (in the case of PARAGRAPH 5.1.2) with respect to at
least 2 Properties (or less in the case of the final Closing) and their related
Assets, then Buyer and Seller shall set a date for Closing that is no more than
10 Business Days after the satisfaction, waiver or termination of the last of

                                       16
<PAGE>

such conditions precedent (each a "CLOSING DATE"). Once a Closing Date has been
established for any Assets and all the conditions precedent set forth in ARTICLE
V have been satisfied for such Assets, Buyer and Seller shall proceed with a
Closing for those Assets. The Closing shall take place in the offices of MBV
Law, commencing at 9:00 a.m. on the Closing Date.

         6.3 SELLER'S CLOSING DELIVERIES. At each Closing, Seller shall deliver,
and cause each Seller Subsidiary to deliver, as applicable, to Escrow Agent with
respect to the Assets owned by the Seller and each Seller Subsidiary that are
the subject of such Closing:

             6.3.1 DEED. A deed in the form of EXHIBITS 6.3.1(a) AND 6.3.1(b)
fully executed and properly acknowledged by the Seller or appropriate Seller
Subsidiary, as applicable, conveying to Buyer (or Buyer's nominee) the
applicable Property subject to the Permitted Exceptions (the "Deeds");

             6.3.2 CONSENTS AND WAIVERS. All Required Consents and Waivers
required pursuant to PARAGRAPHS 5.2.4 AND 5.2.7, including, without limitation,
the Required Consents and assignment and assumption documents for the assumption
of the Assumed Indebtedness;

             6.3.3 LEASES. An Assignment and Assumption of Leases for each
Property, in the form of EXHIBIT 6.3.3, fully executed by the Seller or
appropriate Seller Subsidiary, as applicable, conveying to Buyer all of Seller's
or applicable Seller Subsidiary's right, title and interest in, to and under the
Tenant Leases relating to such Property;

             6.3.4 CONTRACTS. An Assignment and Assumption of Contracts for
each Property in the form of EXHIBIT 6.3.4, fully executed by the Seller or
appropriate Seller Subsidiary, as applicable, assigning and transferring to
Buyer all of Seller's or appropriate Seller Subsidiary's rights, benefits and
privileges under the Service Contracts;

             6.3.5 BILL OF SALE. A Bill of Sale for each Property, in the
form of EXHIBIT 6.3.5, fully executed by the Seller or appropriate Seller
Subsidiary, as applicable, assigning and conveying to Buyer the Personal
Property (except the Service Contracts) relating to such Property;

             6.3.6 WARRANTIES. An Assignment of Guaranties and Warranties,
for each Property, in the form of EXHIBIT 6.3.6, fully executed by the Seller or
the appropriate Seller Subsidiary, assigning and transferring to Buyer all of
the Seller's or applicable Seller Subsidiary's rights to or under any warranties
and guaranties relating to the Personal Property or the Improvements for each
Property (with the joinder by each warrantor as to any warranties and guaranties
that are not assignable without such warrantor's consent);

              6.3.7 PERMITS. An Assignment of Permits and Licenses in the
form of EXHIBIT 6.3.7, fully executed by the Seller or appropriate Seller
Subsidiary, assigning and transferring to Buyer all rights and interest in, to
and under all permits, licenses and certificates of occupancy held by the Seller
or appropriate Seller Subsidiary in connection with the ownership, use,
operation or maintenance of the Assets for each Property;

                                       17
<PAGE>

              6.3.8   EQUIPMENT LEASES. An Assignment and Assumption of
Equipment Leases, in the form of EXHIBIT 6.3.8 attached, fully executed by
the Seller or appropriate Seller Subsidiary, assigning and transferring to
Buyer all of the Seller's or Seller Subsidiary's interest under the Equipment
Leases, if any;

              6.3.9   DECLARANT'S RIGHTS. As applicable, one or more
Assignment of Declarant's Rights, in the form of EXHIBIT 6.3.9 attached, from
the Seller or Seller Subsidiary which is a declarant under covenants,
conditions or restrictions encumbering a Property;

              6.3.10  TRADE NAMES. An Assignment of Trade Name and Trade Mark
Rights substantially in the form of EXHIBIT 6.3.10, attached, fully executed
by the Seller or appropriate Seller Subsidiary, assigning and transferring
the Trademarks for each Property;

              6.3.11  AFFIDAVIT. An Affidavit in the form and having the
substance of that attached hereto as EXHIBIT 6.3.11, fully executed and
properly acknowledged by the Seller and each Seller Subsidiary, as required
by Internal Revenue Code of 1986, Section 1445 and California state law;

              6.3.12  AUTHORIZATION. A certificate of authority from Seller
and each Seller Subsidiary authorizing the Sales Transaction and designating
the person or persons authorized to sign documents on behalf of the Seller
and each Seller Subsidiary in connection therewith;

              6.3.13  NOTICE LETTER. A form letter, in a mutually agreeable
form, to be prepared by Buyer, for each of the Properties, from the Seller
and Seller Subsidiaries to the Tenants of their respective Properties
advising the Tenants of the sale of the respective Properties to Buyer,
copies of which letters may be distributed by Buyer to the Tenants and other
parties;

              6.3.14  MANAGEMENT  AGREEMENTS.  Evidence reasonably
satisfactory to Seller that the Management Agreements for such Assets have
been duly terminated effective on or before the Closing Date;

              6.3.15  FILES AND RECORDS. All originals and copies of all
documents, instruments, agreements and contracts, including, without
limitation, Tenant Leases, Service Contracts, Construction Contracts, loan
documents for the Assumed Indebtedness, Property Restrictions and
Encumbrances, relating to such Properties, all of such Properties' books,
records and files (including electronic files and records) and all permits,
licenses and certificates of occupancy for each of the Properties to the
extent in Seller's, any Seller Subsidiaries' and their agents', managers' and
employees' possession or control; and

              6.3.16  PLEASANT HILL BONDS. An assignment of all of the
applicable Seller Subsidiary's right, title and interest relating to the City
of Pleasant Hill, Pleasant Hill Downtown Communities Facilities District No.
1, $7,470,000 Special Tax Bonds Series 1998A and $6,615,000 Special Tax Notes
Subordinated Series 1998B, together with any right to receive the Agency
Reimbursement from the Net Tax Increments as those terms are defined in, and
pursuant to, that certain Amended and Restated Disposition and Development
Agreement, dated

                                       18
<PAGE>

December 15, 1997, between the Pleasant Hill Redevelopment Agency and
BPP/Pleasant Hill, L.P., such assignment to be in a form reasonably
acceptable to Seller, Buyer and the Agency;

              6.3.17  OTHER MATTERS. Such other instruments or documents
consistent with the terms of this Agreement as may be reasonably requested by
Buyer or Escrow Agent or reasonably necessary to effect or carry out the
purposes of this Agreement.

         6.4  BUYER'S CLOSING DELIVERIES.  At each Closing, Buyer shall
deliver to Escrow Agent:

              6.4.1 The funds necessary for payment of the Cash portion of
the Purchase Price payable for the Assets that are the subject of the Closing
pursuant to PARAGRAPH 1.30;

              6.4.2 The assignments and assumptions referred to in PARAGRAPHS
6.3.2, 6.3.3, 6.3.4 AND 6.3.8 evidencing Buyer's agreement to the terms
thereof and assumption of the duties and obligations as more particularly
provided therein;

              6.4.3 Evidence reasonably satisfactory to Seller and Escrow
Agent that Buyer has duly authorized the Sales Transaction, and that the
person or persons executing all documents to be executed by Buyer in
connection with the Sales Transaction on behalf of the Buyer is authorized to
do so; and

              6.4.4 Such other instruments or documents consistent with the
terms of this Agreement as may be reasonably requested by Seller or Escrow
Agent, or necessary, to effect or carry out the purposes of this Agreement.

         6.5  ESCROW AGENT'S DUTIES. At each Closing, Seller and Buyer agree
to instruct Escrow Agent to: (i) record each of the Deeds in the applicable
public recording offices; (ii) deliver to Buyer and Seller counterpart copies
of the documents referenced in PARAGRAPHS 6.3.3 THROUGH 6.3.11; (iii)
disburse the Purchase Price in accordance with the terms of this Agreement
and a settlement statement approved by Buyer and Seller; (iv) issue a Title
Policy for each of the Properties that is the subject of the Closing; and (v)
pursue such other actions as Buyer and Seller may request consistent with the
terms of this Agreement.

         6.6  PRORATIONS; DEPOSITS; DELINQUENT RENTS. The following items
shall be prorated, allocated and/or adjusted (as appropriate) as of each
Closing for the Assets that are the subject of the Closing:

              6.6.1 TAXES. Real and personal property taxes and assessments
for the current year pertaining to the Assets based on the latest available
tax and assessment information--to the end that Seller shall be responsible
for all taxes and assessments that are allocable to any period prior to the
Closing Date and Buyer shall be responsible for all taxes and assessments
that are allocable to any period from and after the Closing Date. To the
extent any real or personal property taxes and assessments subject to
apportionment in accordance with the foregoing are, as of the Closing Date,
the subject of any appeal filed by or on behalf of Seller or any Seller
Subsidiaries, then notwithstanding anything to the contrary contained in this
paragraph: (i) no

                                       19
<PAGE>

apportionment of the taxes or assessment being appealed shall occur at the
Closing, but instead such apportionment shall be deferred until the outcome of
the appeal is final and the amount of taxes owing becomes fixed at which time
Seller shall be responsible for all such taxes that allocable to any period
prior to the Closing Date and Buyer shall be responsible for all such taxes and
assessments that are allocable to any period from and after the Closing Date;
and (ii) Seller shall provide Buyer with adequate security, either in the form
of a bond or by escrowing the amounts being appealed, to assure Buyer that
Seller's portion of such tax and assessment liability, including any penalty,
will be available. To the extent any taxes and assessments which are the subject
of an appeal have been paid by Seller or any Seller Subsidiary under protest and
the appeal results in Buyer receiving a credit toward future tax liability or a
refund, then Buyer shall, within thirty (30) days following receipt of such
refund or notice of such credit, pay to Seller the full amount of such refund or
credit allocable to the period prior to the Closing Date, excluding, however,
any portion of such refund or credit that is required to be passed through to
the tenants pursuant to any Tenant Leases or to other parties by existing
contract.

                  6.6.2 UTILITIES. All charges for fuel, water, sewer,
electricity and other utility services furnished to the Properties which are not
metered to Tenants occupying the Improvements. Seller and Seller Subsidiaries,
to the extent the same is obtainable, shall arrange for the utility companies to
perform and furnish meter readings for such utilities through the close of
business on the day prior to the Closing Date. If any such meter readings are
not so obtainable, then Seller and Seller Subsidiaries shall provide meter
readings as of a date not more than 30 days prior to the Closing Date, and the
proration of utility charges shall initially be based upon such prior reading.
Upon the taking of actual meter readings first after Closing, such proration
shall be readjusted, outside of escrow and after Closing, and Seller or Buyer,
as the case may be, shall promptly pay to the other the amount determined to be
so due upon such readjustment.

                  6.6.3 SERVICE CONTRACTS. All amounts prepaid and all
outstanding accounts receivable and payable under any of the Service Contracts
(except as to any Service Contract that is terminated on or before Closing and
such termination is effective before Closing in accordance with the provisions
of this Agreement) for the applicable Assets shall be prorated as of the Closing
Date.

                  6.6.4 TENANT LEASES. All base rents and other fixed sums due
under the Tenant Leases for the applicable Assets shall be prorated between
Buyer and Seller. All refundable Tenant Deposits held by Seller and Seller
Subsidiaries under such Tenant Leases shall be paid to Buyer at Closing in the
form of a credit against the Cash due from Buyer at Closing. Seller and Seller
Subsidiaries shall transfer their entire interests in any letters of credit or
certificates of deposit held by them under such Tenant Leases as deposits and
shall diligently cooperate with Buyer in obtaining any reissuance or
confirmation of the effect of the transfer of such instruments. Buyer shall not
be entitled to any credit or reimbursement for rent concessions granted by
Seller and Seller Subsidiaries to any Tenants. All prepaid base rents and other
fixed charges under the applicable Tenant Leases attributable to the period
after Closing shall be credited to Buyer. Delinquent rents and other charges due
Seller and Seller Subsidiaries under the Tenant Leases as of the date of Closing
shall not be prorated. Buyer shall be credited in escrow with: (i) any leasing
commissions, tenant improvement allowances or other allowances to

                                       20
<PAGE>

be paid by Buyer on or after the Closing Date with respect to the current term
of any Tenant Lease or Tenant Lease modification executed, or any extension term
or expansion of premises exercised, in each case, on or before September 1, 2000
excluding the two Tenant Leases with Century Theatres, Inc. (the "Theatre
Tenant"), one dated December 17, 1999 for the Hilltop Property, and the other
dated June 2000 for the Pleasant Hill Property (the "Theatre Leases"); and (ii)
any leasing commissions, tenant improvement allowances or other allowances to be
paid by Buyer for Tenant Leases included by Seller to satisfy the threshold
condition precedent set forth in PARAGRAPH 5.2.8; and Seller shall pay on or
before the Closing Date all such items due and payable prior to the Closing
Date.

         At the Closings for the Hilltop Plaza Property and the Pleasant Hill
Property, as applicable (as to clauses (i) and (ii) hereinbelow), and as to any
Closing (as to clause (iii) hereinbelow), Seller shall receive a credit for the
following: (i) payments of the amount of the Building Allowance paid by Seller
as of such Closing to the Theatre Tenant pursuant to the Theatre Lease for the
Hilltop Plaza Property and the costs and expenses incurred by Seller as of the
Closing Date in connection with the preparation of the pad for the Theatre
Tenant in accordance with and pursuant to that lease; (ii) all sums paid by
Seller to the Theatre Tenant with respect to the 9,000 square foot "Retail
Space" contiguous to the Theatre Tenant's premises pursuant to Section 5 of the
Work Letter to the Theatre Lease for the Pleasant Hill Property (and Buyer shall
affirmatively assume the payment of that obligation at Closing); and (iii) any
leasing commissions, tenant improvement allowances or other allowances paid by
Seller with respect to any Tenant Lease or Tenant Lease modification executed,
or any extension, term or expansion of premises exercised, in each case, on or
after September 1, 2000. Upon the Closing of Buyer's acquisition of the Hilltop
Plaza Property, Buyer shall assume all tenant improvement obligations under the
Theatre Lease for Hilltop Plaza. Seller shall only be entitled to a credit with
respect to the costs and expenses described in clause (i) hereinabove relating
to the pad preparation as to those costs and expenses that have actually been
paid by Seller or the applicable Seller Subsidiary and are evidenced by invoices
and evidence of payment of the contractors and suppliers reasonably satisfactory
to Buyer. All other payments described above for which Seller is to receive a
credit shall require reasonable proof of actual payment, such as canceled
checks.

         Any percentage rent, real estate taxes, parking charges, operating and
maintenance expenses, escalation rents or charges, electricity charges, cost of
living increases or any other charges of a similar nature other than fixed or
base rent under the applicable Tenant Leases (collectively, the "ADDITIONAL
RENTS") collected by Seller prior to the Closing Date shall be prorated as of
the Closing Date between Buyer and Seller. With respect to any percentage rent
which has not yet been reported and/or paid by tenants under the Leases but
which is attributable to any period prior to the Closing Date, Buyer shall pay
to Seller at closing a reasonable estimated amount of such percentage rent
applicable to such period based upon gross sales reported by such tenant for the
current calendar year, which estimated payment shall be subject to
Reconciliation described below. Prior to the end of the calendar year in which
the Closing occurs, Seller shall provide Buyer with information regarding
Additional Rents which were received by Seller and Seller Subsidiaries prior to
Closing and the amount of reimbursable expenses paid by Seller prior to Closing.
On or before the date which is sixty (60) days following the end of the calendar
year in which the Closing occurs, Buyer shall deliver to Seller a reconciliation
of all expenses reimbursable under the Tenant Leases, and the amount of

                                       21
<PAGE>

Additional Rents received by Seller, Seller Subsidiaries and Buyer relating
thereto (the "RECONCILIATION"). Upon reasonable notice and during normal
business hours, each party shall make available to the other all information
reasonably required to confirm the Reconciliation. In the event of any
overpayment of Additional Rents by the tenants to Seller and Seller Subsidiaries
Seller shall promptly, but in no event later than twenty (20) days after receipt
of the Reconciliation, pay to Buyer the amount of such overpayment and Buyer, as
the landlord under the particular Tenant Leases, shall pay or credit to each
applicable tenant the amount of such overpayment. In the event of an
underpayment of Additional Rents by the tenants to Seller and Seller
Subsidiaries, Buyer shall pay to Seller the amount of such underpayment within
twenty (20) days following Buyer's receipt of any such amounts from the tenants.

         Any rents or other sums that are due and payable under any Tenant
Leases on or prior to the Closing Date, but which have not been collected by
Seller or Seller Subsidiaries on or prior to the Closing Date, or payment of
which has been deferred until after the Closing Date (the "ARREARS"), to the
extent applicable to any period of time on or prior to the Closing Date, and
which are paid after the Closing Date shall, subject to the terms below, be paid
to Seller and if the Arrears are received by the Buyer, the Buyer shall pay the
Arrears to the Seller after collection by the Buyer. Buyer shall use reasonable
efforts (but shall not be required to commence legal action or terminate or
evict a tenant) to collect or cause to be collected such Arrears following the
Closing Date. Any and all rents so collected by Buyer following the Closing
(less a deduction for all reasonable collection costs and expenses incurred by
Buyer) shall be successively applied (after deduction for Buyer's reasonable
collection costs and expenses) to the payment of (x) delinquent amounts due
Buyer and (y) delinquent amounts due Seller. If all or part of any rents or
other charges received by Buyer following the Closing are allocable to Seller
pursuant to the foregoing sentence, then such sums shall be promptly paid to
Seller. Seller reserves the right to pursue any damages remedy Seller may have
against any tenant with respect to such Arrears, but shall have no right to
exercise any other remedy under the Lease (including, without limitation,
termination or eviction).

         6.6.5 IMPOUND ACCOUNT. All impound, reserve, escrow or similar accounts
held by any lenders under the Assumed Indebtedness at each Closing shall be
retained by and be returned to Seller and/or Seller Subsidiaries. Buyer shall
have no duty or obligation to cause the lenders to return such amounts to Seller
and/or Seller Subsidiaries.

         6.6.6 DEPOSITS. All utility deposits paid by Seller or Seller
Subsidiaries, as applicable, shall be refunded to Seller or Seller Subsidiaries,
as applicable, at or as of each Closing.

         6.6.7 PREPAID EXPENSES. Buyer shall be charged for those prepaid
expenses paid by Seller or any Seller Subsidiaries allocable to any period from
and after the Closing Date, including, without limitation, annual permit and
confirmation fees, fees for licenses and all security or other deposits paid by
Seller to third parties which Buyer elects to assume and to which Buyer then
shall be entitled to the benefits and refund following the Closing Date Prepaid
expenses shall not include any loan extension or renewal fees.

                                       22
<PAGE>

                  6.6.8  GENERAL CREDITS. At each Closing, except the Closing
of the Mountaingate Property, Buyer shall receive a credit towards the
Purchase Price allocated to the Properties that are the subject of the
Closing in an amount equal to the product of $1,000,000.00 times a fraction
the numerator of which is the aggregate Purchase Price for such Properties
and the denominator of which is the aggregate Purchase Price for all of the
Properties excluding the Purchase Price for the Mountaingate Property.

                  6.6.9  OTHER MATTERS. With respect to each Property, such
other matters as are customarily prorated by the Escrow Agent in transactions
of a similar nature in county in which each respective Property is located.

                  6.6.10 COOPERATION. Seller and Buyer shall duly cooperate with
each other and the Escrow Agent in making prorations, adjustments and credits
pursuant to the foregoing and shall, as requested by the Escrow Agent, furnish
to the Escrow Agent such information in the possession of, or reasonably
obtainable by them to assist in making such prorations, adjustments or credits.
In the event, for any reason beyond the reasonable control of the parties
hereto, information necessary to calculate any proration, adjustment or credit
for any item required to be prorated, adjusted or credited under this Paragraph
is not available prior to Closing, then such item shall be prorated, adjusted or
credited outside of escrow after Closing as soon as such information is
available, and Seller and Buyer shall duly cooperate with each other in regard
thereto and shall pay, one to the other, any amounts which may be owing as a
result of any such subsequent proration, adjustment or credit. In the event, at
any time after Closing, errors shall be discovered in any prorations,
adjustments or credits made pursuant to this Paragraph, Seller and Buyer shall
correct such errors and shall pay, one to the other, any sums owing as a result
of such corrections.

         6.7  CLOSING COSTS/TRANSFER EXPENSES. Except as otherwise set forth
in this Agreement, each party shall bear its own costs (including attorneys'
fees) in connection with its negotiation of this Agreement, due diligence
investigation and conduct of the Sales Transactions. Seller and Seller
Subsidiaries shall pay all transfer, stamp or similar taxes payable as a
result of the Sales Transactions, premiums for the Title Policies (but not
the premiums for any endorsements to the Title Policies required by Buyer),
transfer and assumption fees and costs for any of the Assumed Indebtedness
and any consent, request or review fees. Escrow fees of Escrow Agent and
recording fees (except stamp taxes, if any, which shall be paid by Seller or
Seller) shall be divided equally between the Buyer and the Seller. All other
costs associated with the closing of the Sales Transactions shall be borne by
the parties in accordance with custom in the county of the Property which
generated the cost is located, as determined by Escrow Agent, unless
otherwise specified in this Agreement.

         6.8  POSSESSION. Immediately after each Closing Buyer shall be
entitled to possession of the Assets that are the subject of the Closing in
place on the date of such Closing subject to the rights of the Tenants.

                                       23
<PAGE>

                                   ARTICLE VII

                                    COVENANTS

         7.1 CONDUCT BY THE SELLER. Seller shall conduct, and shall cause each
of the Seller Subsidiaries to conduct, the operations of each of the Properties
in the ordinary course of its business and shall, and shall cause each of the
Seller Subsidiaries to, operate, maintain and repair the Properties in
accordance with the practices and procedures employed by Seller and Seller
Subsidiaries in the ordinary course of business. Seller shall, and shall cause
the Seller Subsidiaries to, continue to perform all of the duties and
obligations of Seller and Seller's Subsidiaries, as applicable, under the
Assumed Indebtedness, Construction Contracts, Material Contracts, Service
Contracts, Management Agreements and Material Leases in the time and manner
required by such agreements. Without limiting the generality of the foregoing,
and except as set forth on the SELLER DISCLOSURE SCHEDULE, neither Seller nor
any Seller Subsidiary shall do any of the following (except as expressly
consented to by Buyer, in writing, which consent shall not be unreasonably
withheld, delayed or conditioned):

                  7.1.1 acquire, sell, encumber, transfer or dispose of any
Assets outside the ordinary course of business (whether by asset acquisition,
stock acquisition or otherwise), except pursuant to obligations in effect on the
date hereof or as set forth in the SELLER DISCLOSURE SCHEDULE,

                  7.1.2 lease any space to any tenant in any of the Properties,
grant any lease concessions or credits or reimbursements under any Tenant Leases
or terminate, amend, alter or accept of the surrender of any Tenant Leases,
including, without limitation, the Material Leases;

                  7.1.3 enter into, amend or terminate any contract that is not
terminable on 30 days' notice involving the payment of more than $2,500 per
annum;

                  7.1.4 create, permit, suffer or place any charge, lien or
encumbrance on any of the Properties;

                  7.1.5 alter, modify or amend any of the Assumed Indebtedness,
Construction Contracts, Material Contracts, Encumbrances or Property
Restrictions;

                  7.1.6 prepay any of the Assumed Indebtedness;

                  7.1.7 terminate or allow to lapse any insurance policies
maintained by the Seller and Seller Subsidiaries for any of the Properties on
the Effective Date; or

                  7.1.8 enter into an agreement to take any of the foregoing
actions.

Buyer shall be deemed to have consented to the foregoing if Buyer does not
object to any of the foregoing within 5 Business Days after receipt of written
request for consent.

                                       24
<PAGE>

         7.2 NO SOLICITATIONS. Seller and Seller Subsidiaries shall immediately
terminate any discussions or negotiations with respect to any proposal to sell
any or all of the Assets. Neither Seller nor any Seller Subsidiaries shall, and
shall not authorize or permit any of its officers, directors, or employees or
any investment banker, financial advisor, attorney, accountant or other
representative retained by Seller or any Seller Subsidiary or otherwise acting
on Seller's or any Seller Subsidiaries' behalf to, directly or indirectly: (i)
take any action for the primary purpose of soliciting, initiating or encouraging
any inquiries or making any proposal to sell any or all of the Assets; or (ii)
participate in any discussions or negotiations for the sale of any or all of the
Assets. Neither the Seller nor any of the Seller Subsidiaries shall enter into
any agreements for the sale, conveyance, exchange, disposition or transfer of
all or any of the Assets. Notwithstanding the foregoing to the contrary, if
Seller or any Seller Subsidiary receives an unsolicited proposal to purchase all
of the Assets prior to the approval by the Seller's stockholders of dissolution
of Seller permitting the Sales Transactions to occur (an "ACQUISITION
PROPOSAL"), Seller may furnish information with respect to the Assets to the
person who made the Acquisition Proposal. Seller may participate in negotiations
regarding such Acquisition Proposal if the Board of Directors of the Seller has
determined, after consultation with legal and financial advisors, that such
Acquisition Proposal may reasonably be expected to lead to a Superior Proposal
(as defined below). Seller shall notify Buyer immediately after receipt by
Seller of any Acquisition Proposal. The term "Superior Proposal" means an
Acquisition Proposal that the Board of Directors of the Seller determines in
good faith (after consultation with its financial and legal advisors) is more
favorable to the stockholders of the Seller from a financial point of view than
the Sales Transactions (taking into account all of the terms and conditions of
the Acquisition Proposal, including any conditions to consummation and their
likelihood that such Acquisition Proposal will be consummated). Subject to the
terms of PARAGRAPH 8.2.4 hereof, at any time prior to the approval of this
Agreement by the stockholders of the Seller: (a) Seller's Board of Directors may
withdraw or modify in any manner its approval or recommendation of this
Agreement; (b) Seller's Board of Directors may approve or recommend the
Acquisition Proposal to Seller's stockholders; or (c) Seller may enter into a
definitive acquisition agreement with respect to an Acquisition Proposal, if the
Board of Directors of the Seller determines after consultation with its
financial and legal advisors that such Acquisition Proposal constitutes a
Superior Proposal.

         7.3 REQUIRED FILINGS AND CONSENTS. Seller and Seller Subsidiaries agree
to use reasonable efforts to take, or cause to be taken, all actions and to do,
or cause to be done, all things necessary, proper or advisable to: (i)
consummate and make effective as promptly as practical the Sales Transactions,
including the taking of such actions as are necessary to obtain any necessary
consents, approvals, orders, exemptions and authorizations by or from any public
or private third party, including, without limitation, the approval required
from the Seller's stockholders, any that are required to be obtained under any
federal, state or local law or regulation and all Required Consents; (ii) defend
all lawsuits or other legal proceedings challenging this Agreement or to
consummation of the Sales Transactions; (iii) cause to be lifted or rescinded
any injunction or restraining order or other order adversely affecting the
ability of the Buyer and Seller to consummate the Sales Transactions; and (iv)
effect all necessary registrations and submissions of information requested by
governmental authorities. For purposes of the foregoing sentences, the
obligation of Seller and Seller Subsidiaries to use their "reasonable efforts"
to obtain the Required Consents and any other waivers, consents and

                                       25
<PAGE>

approvals to loan agreements, leases and other contracts shall not include any
obligations to agree to an adverse modification of the terms of such document or
to prepay or incur an additional obligation not contemplated by such documents
to such other parties, except for commercially reasonable fees and costs charged
by the party from whom the waiver, consent or approval is sought, which Seller
shall agree to pay, unless: (a) Buyer agrees to such modification or payment at
Closing; or (b) any such payments or modifications are required by the terms of
the agreements, leases or other contracts as a result of the Sales Transactions,
in which event the Seller shall agree to such modification and make such
payments. If, at any time after the Effective Date, any further action is
necessary or desirable to carry out the purposes of this Agreement, the proper
officers and directors of the Buyer and Seller shall take all action.

         7.4 ESTOPPELS. Seller and Seller Subsidiaries shall use reasonable
efforts to obtain estoppel certificates in a reasonable form prepared by Buyer
from each Material Tenant, obligor under the Material Contracts, if any, and
other parties under the Property Restrictions. Buyer will prepare the actual
estoppel certificates to be presented to each such Material Tenant, obligor and
other parties under the Property Restrictions once the general form for each
type of estoppel certificate is agreed upon by Seller and Buyer. For purposes of
this PARAGRAPH 7.4, the obligations of Seller and Seller Subsidiaries to use
their "reasonable efforts" to obtain the estoppel certificates shall not include
any obligation to agree to an adverse modification of the terms of such
documents for which the estoppel is sought or to incur additional obligations
not contemplated by such documents to such other parties unless Buyer agrees to
such modification or obligation at Closing. Seller also agrees to allow Buyer to
submit tenant estoppel certificates to all Tenants, but its obligation to use
reasonable efforts to obtain such estoppel certificates is limited to Material
Tenants as set forth hereinabove.

         7.5 TITLE MATTERS. Seller shall use reasonable efforts to resolve: (i)
the title matters addressed on SCHEDULE 7.5; and (ii) any adverse title matters
revealed on any updates to the Preliminary Title Reports or Surveys that may be
obtained by Buyer after the Effective Date which were not disclosed in the
Preliminary Title Reports or Surveys, in each case to the reasonable
satisfaction of Buyer. On or before each Closing, Seller shall eliminate any
deeds of trust, mortgages, judgment liens, mechanics' liens, materialmen's liens
and any other monetary liens encumbering the Assets that are the subject of the
Closing, except the liens securing the Assumed Indebtedness or monetary liens
not arising from the acts or omissions of Seller or any Seller subsidiary or any
of their respective employees, agents, contractors, or affiliates. Seller shall
satisfy all of the requirements of the Escrow Agent required for the issuance of
each Title Policy (excluding any requirements relating to the issuance of
endorsements). For the purposes of this PARAGRAPH 7.5, "reasonable efforts" to
resolve title matters shall not include any obligation to agree to take any
action that will have an adverse effect on any of the Properties or obligation
to pay an unreasonable amount to resolve the matter.

         7.6 RISK OF LOSS. Subject to the provisions of this PARAGRAPH 7.6, the
risk of loss as to all of the Properties shall be upon Seller until Closing. In
the event of any material (as defined below) loss or damage to, material
threatened or actual condemnation or other eminent domain proceeding affecting
any of or a material transfer in lieu of condemnation approved by Buyer pursuant
to PARAGRAPH 7.1 of any of the Properties prior to the Closing, Buyer may
terminate this Agreement as to the affected Property within ten (10) days after
the later of the Effective Date or

                                       26
<PAGE>

the date Buyer is notified in writing by Seller of such casualty event or
condemnation. Upon such termination, the Purchase Price for the Assets shall be
reduced by the amount of the Purchase Price allocated for the Property that has
incurred the casualty damage or is the subject of a condemnation or transfer in
lieu of condemnation proceeding as set forth in SCHEDULE 1.30. If Buyer does not
so terminate this Agreement as to the affected Property, Buyer shall be deemed
to have waived the material loss or damage, condemnation or transfer in lieu of
condemnation and shall proceed to close, as provided hereinbelow. If Buyer
waives any material loss or damage to, condemnation or transfer in lieu of
condemnation of any Property and proceeds to consummate the Purchase and Sale
Transaction, or in the event of immaterial loss, damage or condemnation as to
any Property and Seller has not repaired, replaced or otherwise restored the
damaged aspects of the affected Property prior to the applicable Closing, the
parties shall close on the applicable Closing Date, and, at Seller's election,
either: (i) there shall be a reduction of the Purchase Price in an amount equal
to the proceeds payable to Seller as a result of such material loss or damage,
condemnation or transfer in lieu of condemnation; or (ii) Seller shall pay to
Buyer at the Closing the amount of (i) any insurance or condemnation proceeds
payable as a result of such material loss or damage, condemnation or transfer in
lieu of condemnation and assign to Buyer in a manner reasonably acceptable to
Buyer as of the Closing all rights or claims to proceeds payable thereafter, and
(ii) the insurance deductible. A material loss, damage, taking or transfer in
lieu of condemnation is any loss, damage, taking or transfer in lieu of
condemnation to any one Property the cost of which to replace or repair exceeds
$750,000 or a taking of any portion of any Property that impairs the continued
use or operation of such portion of that Property substantially as used or
operated prior to the taking.

         7.7 MANAGEMENT AGREEMENTS. Seller shall terminate all Management
Agreements applicable to the Assets that are the subject of a Closing effective
on or before the Closing Date; provided, however, Seller shall have the right to
extend the Closing Date for up to ten (10) days as to any Property subject to a
Management Agreement that cannot be terminated as of a scheduled Closing Date.

         7.8 CONSTRUCTION. Seller shall use reasonable efforts to cause all work
to be performed under the Construction Contracts to be substantially completed
on or before the Termination Date. All work shall be completed in a good and
workmanlike manner and in accordance with the terms of applicable Tenant Leases.
Seller shall provide the Escrow Agent with such documents and indemnities
necessary for the issuance of each Title Policy without exception for mechanics'
or materialmen's liens.

         7.9 STOCKHOLDER MEETING. Following execution of this Agreement,
Seller shall take all action necessary in accordance with applicable law,
Seller's charter, bylaws and other applicable corporate governance documents
applicable to Seller to convene a meeting of its stockholders as promptly as
practicable to consider and vote upon the approval of the dissolution of the
Seller, which approval will permit Sales Transactions to occur. The Proxy
Statement (as herein defined) relating to such stockholders meeting shall
contain the recommendation of the Board of Directors of Seller that its
stockholders approve the dissolution of the Seller, which approval will
permit Sales Transactions to occur. Subject to and in accordance with
applicable law, Seller shall use its reasonable efforts to obtain such
approval; provided, however, that the obligation to hold such meeting, make
such recommendation and use such reasonable efforts to

                                       27
<PAGE>

obtain such approval shall be subject to any action taken by, or upon authority
of, the Board of Directors of Seller or any committee thereof in the exercise of
their duties under applicable law. Seller also agrees to prepare and file with
the Securities and Exchange Commission under the Securities Exchange Act of 1934
a proxy statement and form of proxy (such proxy statement, together with any
amendments or supplements thereto, the "Proxy Statement") relating to the vote
of the stockholders of Seller with respect to the dissolution and other matters
Seller deems appropriate.

         7.10 TENANT IMPROVEMENTS AND LEASING COMMISSIONS FOR INTERIM LEASES. As
to proposed leases presented to Buyer by Seller for Buyer's approval pursuant to
Section 7.1.2 that would require any Tenant improvement work or the payment of
any leasing commissions from and after September 1, 2000, if Seller has
insufficient funds available to it to pay the cost of the tenant improvements
and leasing commissions in its good faith reasonable judgment, taking into
account the routine needs of and any credit facilities available to Seller,
Seller shall have the right to request Buyer, such request to be made in writing
at the same time that Seller formally requests approval of any proposed lease,
to pay the cost of such tenant improvements and leasing commissions. Upon
receiving such request, Buyer shall have the option to: (i) approve the proposed
lease, in which case Buyer will advance funds to pay such tenant improvements
and leasing commissions when due and payable (upon receipt of proper invoices
and other adequate documentation); or (ii) not approve the proposed lease, in
which event Seller shall not be deemed to have breached its obligations under
Section 7.1 by not entering into that lease. If Buyer does not reject the
proposed lease on that basis, and instead elects to approve the proposed lease
and to fund the tenant improvements and leasing commissions required in
connection with such proposed lease, and such Property is not acquired by Buyer,
then Seller shall reimburse Buyer in the amount of the tenant improvements and
leasing commissions so funded by Buyer upon Buyer's written demand, such
reimbursement to be without interest. If the reimbursement is not made within
ten (10) days after Buyer's demand therefore, the amount of the claim for the
Tenant improvements and leasing commissions so funded shall accrue interest at
the lesser of 18% or the highest lawful rate from and after the date of such
written demand.

                                  ARTICLE VIII

                  TERMINATION, AMENDMENT, WAIVER AND LIMITATION

         8.1 TERMINATION. This Agreement may be terminated and abandoned at any
time after the Effective Date as to any Assets for which a Closing has not yet
occurred:

                  8.1.1 by the mutual written consent of Seller and Buyer;

                  8.1.2 by either Seller or Buyer if the condition set forth in
PARAGRAPH 5.1.1 is not satisfied as of the applicable Closing Date;

                  8.1.3 by Buyer if the conditions set forth in PARAGRAPH 5.2
are not satisfied on or before the Termination Date and each Closing Date, as
applicable;

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<PAGE>

                  8.1.4    by Seller if the  conditions  set forth in PARAGRAPH
5.3 are not satisfied on or before the Termination Date;

                  8.1.5 by either Buyer or Seller (the "NON-DEFAULTING PARTY")
if the other party fails to perform any term or covenant to be performed by such
party (the "DEFAULTING PARTY") under this Agreement and such failure continues
for a period of 10 Business Days after the Defaulting Party's receipt of written
notice from the Non-Defaulting Party;

                  8.1.6 by Seller in connection with entering into a definitive
agreement to effect an Acquisition Proposal for a Superior Proposal pursuant to
PARAGRAPH 7.2; or

                  8.1.7 by Buyer if: (i) Seller's Board of Directors withdraws
or modifies in a manner material and adverse to Buyer its approval or
recommendation of the plan of dissolution which permits the Sales Transactions;
(ii) Seller enters into a definitive agreement with respect to an Acquisition
Proposal pursuant to PARAGRAPH 7.2; (iii) Seller's Board of Directors fails to
include a recommendation of the plan of dissolution which permits the Sales
Transaction in the Proxy Statement pursuant to PARAGRAPH 7.9; or (iv) Seller
makes a public announcement of its intention to take any of the foregoing
actions.

         8.2      EFFECT OF TERMINATION.

                  8.2.1 In the event of the termination of this Agreement
pursuant to PARAGRAPH 8.1 hereof, this Agreement, as to the Assets for which a
Closing has not occurred, shall forthwith become null and void and have no
effect, without any liability on the part of any party hereto or its affiliates,
trustees, directors, officers or stockholders and all rights and obligations of
any party hereto shall cease, except for the agreements and rights contained in
PARAGRAPHS 11.11, 11.15, 9.1(VIII) and this PARAGRAPH 8.2. Nothing contained in
this PARAGRAPH 8.2 shall relieve any party from liability, obligation, duty or
indemnity arising under this Agreement relating to Assets for which a Closing
has occurred.

                  8.2.2    If this Agreement is terminated by:

                           (i)    Buyer as a result of: (a) the failure of any
conditions contained in PARAGRAPH 5.2.1 to be satisfied, timely, as a result of
an untrue, inaccurate or false representation and warranty of which Seller has
Knowledge as of the Effective Date, pursuant to PARAGRAPH 8.1.3; or (b) the
breach of any term or covenant of this Agreement by the Seller, pursuant to
PARAGRAPH 8.1.5;

                           (ii)   Seller as a result of the  failure of the
condition  contained  in  PARAGRAPH 5.3.1 to be satisfied, timely; or

                           (iii)  Buyer or Seller pursuant to PARAGRAPH 8.1.2,

then, in any such case, Seller, within 3 Business Days after the termination,
shall pay to Buyer an amount, in Cash, equal to the product of $5,000,000.00
multiplied by a fraction the numerator of which is the Purchase Price allocated
to all Properties that have not been the subject of a Closing

                                       29
<PAGE>

and the denominator of which is the aggregate Purchase Price (the "LIQUIDATED
AMOUNT") payable by Seller to Buyer by wire transfer to an account designated by
Buyer.

                  8.2.3 If this Agreement is terminated by Seller as a result of
the breach of any term or covenant of this Agreement by Buyer pursuant to
PARAGRAPH 8.1.5, then Escrow Agent shall pay the Earnest Money Deposit then on
deposit with Escrow Agent to Seller as liquidated damages and Seller's sole
remedy for such breach.

                  8.2.4 If this Agreement is terminated by either Buyer or
Seller pursuant to PARAGRAPHS 8.1.6 OR 8.1.7, as applicable, then Seller, within
3 Business Days after the termination, shall pay to Buyer an amount, in Cash,
equal to the product of $15,000,000.00 multiplied by a fraction the numerator of
which is the Purchase Price allocated to all Properties that have not been the
subject of a Closing and the denominator of which is the aggregate Purchase
Price (the "TOPPING AMOUNT") payable by Buyer to Seller by wire transfer to an
account designated by Buyer and Escrow Agent shall return the Earnest Money
Deposit to Buyer.

                  8.2.5 If this Agreement is terminated by Buyer or Seller for
any reason pursuant to this Agreement except for a termination by Seller as a
result of a Buyer's breach pursuant to PARAGRAPH 8.1.5, then Escrow Agent shall
return the Earnest Money Deposit then on deposit with Escrow Agent to Buyer.

                  8.2.6 NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, BUYER AND SELLER EXPRESSLY ACKNOWLEDGE AND AGREE THAT THE PAYMENT OF
THE LIQUIDATED AMOUNT OR TOPPING AMOUNT TO BUYER OR EARNEST MONEY TO SELLER, AS
APPLICABLE, PURSUANT TO PARAGRAPHS 8.2.2, 8.2.3 OR 8.2.4, SHALL CONSTITUTE
LIQUIDATED DAMAGES WITH RESPECT TO ANY CLAIM FOR DAMAGES OR ANY OTHER CLAIM
WHICH BUYER OR SELLER WOULD OTHERWISE BE ENTITLED TO ASSERT AGAINST THE OTHER OR
ANY OF ITS RESPECTIVE ASSETS, OR AGAINST ANY OF THEIR RESPECTIVE DIRECTORS,
OFFICERS, EMPLOYEES, PARTNERS, MANAGERS, MEMBERS OR SHAREHOLDERS, WITH RESPECT
TO THIS AGREEMENT AND THE SALES TRANSACTIONS AND SHALL CONSTITUTE THE SOLE AND
EXCLUSIVE REMEDY AVAILABLE TO BUYER OR SELLER, AS APPLICABLE. THE PARTIES HERETO
EXPRESSLY ACKNOWLEDGE AND AGREE THAT IN LIGHT OF THE DIFFICULTY OF ACCURATELY
DETERMINING ACTUAL DAMAGES WITH RESPECT TO A TERMINATION OF THIS AGREEMENT AS A
RESULT OF THE FOREGOING, THE RIGHT TO PAYMENT OF THE LIQUIDATED AMOUNT, TOPPING
AMOUNT OR EARNEST MONEY DEPOSIT, AS APPLICABLE: (I) CONSTITUTES A REASONABLE
ESTIMATE OF THE DAMAGES THAT WILL BE SUFFERED AS A RESULT OF ANY SUCH PROPOSED
OR ACTUAL TERMINATION OF THIS AGREEMENT; AND (II) SHALL BE IN FULL AND COMPLETE
SATISFACTION OF ANY AND ALL DAMAGES ARISING AS A RESULT OF THE FOREGOING, AND
NONE OF THE PARTIES HERETO SHALL CHALLENGE, IN COURT OR OTHERWISE, THE
REASONABLENESS OF SUCH ESTIMATE.

                                       30
<PAGE>

             -----------------------            ----------------------
             Seller                             Buyer

         8.3 AMENDMENT. This Agreement may be amended by the parties hereto by
an instrument in writing signed by each of the parties hereto.

         8.4 EXTENSION; WAIVER. At any time prior to the Closing, the parties
hereto may, to the extent legally allowed, (i) extend the time for the
performance of any of the obligations or other acts of the other parties hereto;
(ii) waive any inaccuracies in the representations and warranties contained
herein or in any document delivered pursuant hereto; and (ii) waive compliance
with any of the agreements or conditions contained herein. Any agreement on the
part of a party hereto to any such extension or waiver shall be valid only if
set forth in a written instrument signed by such party.

         8.5 LIMITATION OF CLAIMS. Notwithstanding anything herein to the
contrary, Seller's post-closing liability for all suits, actions, proceedings,
demands, claims, liabilities, liens, judgments, losses, injuries, damages,
expenses and costs, including reasonable attorneys' and experts fees, and costs
and investigation and remediation costs with respect to or arising as a result
of: (i) any of Seller's representations or warranties contained in this
Agreement being false, untrue or inaccurate; or (ii) any claims of any of the
Buyer Parties (as defined in PARAGRAPH 9.1), shall not exceed, in the aggregate,
an amount equal to the product of $5,000,000.00 multiplied by a fraction the
numerator of which is the Purchase Price allocated to all Properties that were
the subject of the Closings and the denominator of which is the aggregate
Purchase Price (the "Liability Cap"); provided, however, that such limitation
shall not apply in the event of fraud or intentional misrepresentation by
Seller.

         8.6 HILLTOP/VILLAGE EAST. At any time prior to 5:00 p.m., San Francisco
time, on October 31, 2000, Buyer, in its sole and absolute discretion, by
written notice to Seller may terminate this Agreement (a "TERMINATION") as to
the Properties listed on SCHEDULE 8.6, attached hereto (the "HILLTOP/VILLAGE
EAST Properties"). If Buyer does not exercise the Termination, timely, then
Buyer shall be deemed to have waived the right to terminate this Agreement as to
the Hilltop/Village East Properties and upon satisfaction of all the conditions
precedent applicable to the Hilltop/Village East Properties proceed with a Sales
Transaction for such Properties. If Buyer elects to terminate this Agreement as
to the Hilltop/Village East Properties, timely, then: (i) the aggregate Purchase
Price shall be reduced by the amount allocated to such Properties on SCHEDULE
1.30; (ii) the Earnest Money Deposit allocated to the Hilltop/Village East
Properties on SCHEDULE 1.10 shall be paid by Escrow Agent to Buyer; and (iii)
the Hilltop/Village East Properties shall no longer be part of the Sales
Transactions.

                                   ARTICLE IX

                                   INDEMNITY

         9.1 SELLER'S INDEMNITY. Seller shall and does protect, defend,
indemnify and save Buyer, its officers, directors, employees, partners, members
and shareholders (collectively, the

                                       31
<PAGE>

"BUYER PARTIES") harmless for, from and against all liabilities, obligations,
claims, suits, damages, penalties, causes of action, costs and expenses
(including, without limitation, reasonable attorneys' fees and expenses) imposed
upon or asserted against Buyer by reason of: (i) any occupancy, use or non-use
of the Assets arising or occurring on or before the Closing or in any way
related to or arising out of any act, omission, contract or commitment of Seller
or Seller Subsidiaries, or their agents, employees or contractors, at any time
before or after the Closing including, without limitation, any liability, loss,
cost or expense associated with the claims made by Omnitech International
against Seller or Seller Subsidiary; (ii) any accident, injury to or death of
person (including workmen) or loss or damage to property occurring on or about
the Properties arising or accruing on or before the Closing; (iii) any loss or
damage to Buyer resulting from any inaccuracy in or breach of any representation
or warranty of which Seller has knowledge or agreement of Seller contained in
this Agreement or resulting from any breach or default by Seller of any
obligation or covenant of Seller under this Agreement or under any document,
instrument or agreement delivered by Seller pursuant to this Agreement; (iv) any
breach or default by Seller under any of the Tenant Leases, Management
Agreements, Assumed Indebtedness, Construction Contracts or Service Contracts
arising or accruing on or before the Closing; (v) any violation of any
applicable federal, state or local laws, ordinances, statutes, rules and
regulations, orders or decrees, including, without limitation, Environmental
Laws, relating to the Assets arising prior to the Closing; (vi) the existence of
any Hazardous Materials on any of the Properties in violation of applicable
Environmental Laws which occurred prior to the Closing; (vii) any liens filed
against and at the Properties in connection with any construction thereon; and
(viii) any litigation, suit, action, claim or proceeding threatened or filed
against any Buyer Parties as a result of Seller executing and delivering this
Agreement or Seller's consummation of the Sales Transactions.

         In the event any Buyer Parties shall be made a defendant in any
litigation, action, suit or proceeding brought by reason of any such occurrence,
Seller, at Seller's own expense, shall defend such action, suit, or proceeding
or cause the same to be resisted and defended by counsel designated by Seller
and reasonably approved by the applicable Buyer Parties. If any such action,
suit or proceedings should result in final judgment against any Buyer Parties,
Seller shall promptly satisfy and discharge such judgment or cause such judgment
to be promptly satisfied and discharged. The obligations of Seller under this
ARTICLE IX shall survive each Closing for the Assets that are the subject of
each Closing for a period of one year from the Closing. All claims for indemnity
shall be made in writing during such one-year period. If a claim for indemnity
is made timely, then the claim shall survive the one-year period until resolved.
Nothing herein shall be deemed to require Seller to hold Buyer harmless for,
from and against any damage, loss or injury where such damage, loss or injury
results directly from the intentional or grossly negligent act of any Buyer
Parties or Buyer Parties' agents, employees, invitees, licensees or contractors.

         9.2 BUYER'S INDEMNITY. Buyer shall and does protect, defend, indemnify
and save Seller, Seller Subsidiaries and their officers, directors, partners,
members and employees (collectively, the "SELLER PARTIES") harmless for, from
and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable
attorneys' fees and expenses) imposed upon or asserted against Seller by reason
of: (i) any occupancy, use, non-use or condition of the Properties arising after
the

                                       32
<PAGE>

applicable Closing; (ii) any act, omission, contract or commitment of Buyer
at any time before or after the applicable Closing; (iii) any accident, injury
or death of person (including workmen) or loss or damage to property occurring
on or about the Properties after the Closing; (iv) any violation of any
applicable federal, state or local laws, ordinances, statutes, rules and
regulations, orders or decrees, including, without limitation, Environmental
Laws, relating to the Assets arising after the applicable Closing; (v) the
existence of any Hazardous Materials on any of the Properties in violation of
applicable Environmental Laws which occurred after the applicable Closing; and
(vi) any breach or default by Buyer under any of the Tenant Leases, Assumed
Indebtedness or Service Contracts arising after the applicable Closing.

         In the event any Seller Parties shall be made a defendant in any
action, suit or proceeding brought by reason of any such occurrence, Buyer, at
Buyer's own expense, shall defend such action, suit, or proceeding or cause the
same to be resisted and defended by counsel designated by Buyer and reasonably
approved by the applicable Seller Parties. If any such action, suit or
proceedings should result in final judgment against Seller Parties, Buyer shall
promptly satisfy and discharge such judgment or cause such judgment to be
promptly satisfied and discharged. The obligations of Buyer under this PARAGRAPH
9.2 shall survive the Closings. Nothing herein shall be deemed to require Buyer
to hold Seller Parties harmless from and against any damage, loss or injury
where such damage, loss or injury results directly from the intentional or
grossly negligent act of Seller Parties or their agents, employees, invitees,
licensees or contractors.

                                    ARTICLE X

                               SELLER'S DISCLAIMER

         Buyer acknowledges that Seller has afforded and shall afford Buyer and
its agents and representatives an opportunity to conduct such appraisals and
investigations of the Properties including, without limitation, investigations
with respect to the physical, environmental, economic and legal condition of the
Properties, prior to the Effective Date and each Closing Date. Buyer
acknowledges: (i) that, except for the representations, warranties and
indemnities expressly contained in this Agreement, Buyer has entered into this
Agreement with the intention of making and relying upon its own investigation of
the physical, environmental, economic and legal condition of the Properties;
(ii) that, except for the representations, warranties and indemnities contained
in this Agreement, Seller is not making and has not at any time made any
warranty or representation of any kind, expressed or implied, with respect to
the Properties, including, without limitation, warranties or representations as
to habitability, merchantability, fitness for a particular purpose, title (other
than Seller's limited warranty of title set forth in the deeds), zoning, tax
consequences, latent or patent physical or environmental condition, utilities,
operating history or projections, valuation, projections or compliance with law;
(iii) that, except for the representations, warranties and indemnities contained
in this Agreement, Buyer is not relying upon and is not entitled to rely upon
any representations and warranties made by Seller or anyone acting or claiming
to act on any of Seller's behalf, and (iv) that the SELLER DISCLOSURE SCHEDULE
may include economic projections which reflect assumptions as to future market
status and future income and expense with respect to the Properties which are
inherently uncertain and as to which Seller has not made any guaranty or
representation whatsoever. Buyer further

                                       33
<PAGE>

acknowledges that it has not received from Seller any accounting, tax, legal,
architectural, engineering, property management or other advice with respect to
this transaction and is relying solely upon the advice of its own accounting,
tax, legal, architectural, engineering, property management or other advisors.
Except for the representations, warranties and indemnities contained in this
Agreement, based upon the order of Buyer's familiarity with and due diligence
relating to the Properties and pertinent knowledge as to the markets in which
the Properties are situated and in direct consideration of Seller's and Seller
Subsidiaries' decision to sell the Properties to Buyer and not to pursue
available disposition alternatives, Buyer shall purchase the Properties in an
"as is, where is and with all faults" condition on the Closing Date and assumes
fully the risk that adverse latent or patent physical, environmental, economic
or legal conditions may not have been revealed by its investigations. Seller and
Buyer agree that the provisions of this ARTICLE X shall survive closing.

                                   ARTICLE XI

                               GENERAL PROVISIONS

         11.1 ATTORNEYS' FEES. If there is any litigation between Seller and
Buyer to enforce or interpret any provisions hereof or rights arising hereunder,
the unsuccessful party in such litigation, as determined by the court, shall pay
to the successful party, as determined by the court, all costs and expenses,
including but not limited to reasonable attorneys' fees incurred by the
successful party, such fees to be determined by the court sitting without a
jury.

         11.2 NOTICES. Except as otherwise required by law, any notice given in
connection with the Sales Transaction shall be in writing and shall be given by
personal delivery, telecopy transmission or overnight courier service, postage
prepaid, addressed to Seller or Buyer at the following addresses (or at such
other address as Seller or Buyer or the person receiving copies may designate in
writing in accordance with this Paragraph):

              Buyer:             Prudential Real Estate Investors
                                 8 Campus Drive, 4th Floor
                                 Arbor Circle South
                                 Parsippany, New Jersey  07054
                                 Attention:  Gary Kauffman
                                 Telecopier No. 973-683-1752

              With a
              Copy To:           Kenneth Van Winkle, Esq.
                                 Lewis and Roca LLP
                                 40 North Central Avenue
                                 Phoenix, Arizona 85004
                                 Telecopier No. 602-734-3763

                                       34
<PAGE>

                 Seller:            Burnham Pacific Properties
                                    100 Bush Street, #2400
                                    San Francisco, California  94104
                                    Attention:  Scott Verges
                                    Telecopier No. 415-352-1711

                 With a
                 Copy To:           Burnham Pacific Properties
                                    110 West A Street, Suite 900
                                    San Diego, California  92101
                                    Attention:  John A. Waters
                                    Telecopier No. 619-652-4710

                  With a
                  Copy To:          MBV Law LLP
                                    101 Vallejo Street
                                    San Francisco, California  94111
                                    Attention:  Danna Kozerski
                                    Telecopier No. 415-433-6563

                  Escrow
                  Agent:            Chicago Title Company
                                    925 "B" Street
                                    San Diego, California 92101
                                    Attention:  Shelva Molm
                                    Telecopier No. 619-544-6229

Notice shall be deemed to have been given and received on the date on which
notice is delivered, if notice is given by personal delivery or telecopy or, on
the Business Day following the date of delivery to the overnight courier
service, if such a service is used. Copies of all notices given to Seller or
Buyer shall be given to Escrow Agent.

         11.3 ADDITIONAL ACTS. The parties agree to execute promptly such other
documents and perform such other acts as may be reasonably necessary to carry
out the purpose and intent of this Agreement.

         11.4 TIME OF ESSENCE. Time is of the essence of this Agreement. Time
within which an act must be accomplished shall be computed by excluding the
first day and including the last day. If, however, this Agreement requires any
act to be done or action to be taken on a date which is not a Business Day, such
act or action shall be deemed to have been validly done or taken if done or
taken on the next succeeding Business Day.

         11.5 WAIVER. The waiver by any party hereto of any right granted to it
hereunder shall not be deemed to be a waiver of any other right granted
hereunder, nor shall the same be deemed to be a waiver of a subsequent right
obtained by reason of the continuation of any matter previously waived.

                                       35
<PAGE>

         11.6  CONSTRUCTION. This Agreement is the result of negotiations
between the parties, neither of whom has acted under any duress or
compulsion, whether legal, economic or otherwise. Accordingly, the terms and
provisions hereof shall be construed in accordance with their usual and
customary meanings. Seller and Buyer hereby waive the application of any rule
of law which otherwise would be applicable in connection with the
construction of this Agreement that ambiguous or conflicting terms or
provisions should be construed against the party who (or whose attorney)
prepared the executed Agreement or any earlier draft of the same.

         11.7  INTERPRETATION. If there is any specific and direct conflict
between, or any ambiguity resulting from, the terms and provisions of this
Agreement and the terms and provisions of any document, instrument or other
agreement executed in connection herewith or in furtherance hereof, including
any exhibits hereto, the same shall be consistently interpreted in such
manner as to give effect to the general purposes and intention as expressed
in this Agreement but if such consistency cannot be achieved, the provisions
of such other document instrument or other agreement shall control and shall
be deemed to be an amendment to this Agreement provided such other document
so provides.

         11.8  HEADINGS. The headings in this Agreement are for reference
only and shall not limit or define the meaning of any provision of this
Agreement.

         11.9  NO THIRD PARTY BENEFICIARY. No term or provision of this
Agreement or the Exhibits hereto is intended to be, nor shall any such term
or provision be construed to be, for the benefit of any person, firm,
corporation or other entity not a party hereto (including, without
limitation, any broker), and no such other person, firm, corporation or
entity shall have any right or cause of action hereunder.

         11.10 SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS AND
AGREEMENTS. The representations, warranties, covenants and agreements
contained in this Agreement or in any instrument delivered pursuant to this
Agreement, shall survive each Closing for the Assets that are the subject of
each Closing for a period of 12 months, and thereafter there shall be no
liability on the part of Seller or any of its respective officers, directors
or stockholders in respect thereof. All claims must be made in writing during
such 12-month period. Except as expressly set forth in this Agreement, there
are no representations or warranties of any party hereto, express or implied.

         11.11 INJUNCTION. The parties hereto agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions hereof in the California Courts
(as hereinafter defined), this being in addition to any other remedy to which
they are entitled under this Agreement, at law or in equity.

         11.12 MISCELLANEOUS. This Agreement (i) constitutes the entire
agreement and supersedes all of the other prior agreements and
understandings, both written and oral, among the

                                       36
<PAGE>

parties, or any of them, with respect to the subject matter hereof; (ii) shall
be binding upon and inure to the benefits of the parties hereto and their
respective successors and assigns and is not intended to confer upon any other
person (except as expressly set forth herein) any rights or remedies hereunder;
and (iii) may be executed in two or more counterparts which together shall
constitute a single agreement.

         11.13 ASSIGNMENT. Except as expressly permitted in PARAGRAPH 6.1 and
by the other terms hereof, neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either party hereto
without the prior written consent of the other party.

         11.14 SEVERABILITY. If any provision of this Agreement, or the
application thereof to any person or circumstance is held invalid or
unenforceable, the remainder of this Agreement, and the application of such
provision to other persons or circumstances, shall not be affected thereby,
and to such end, the provisions of this Agreement are agreed to be severable.

         11.15 CHOICE OF LAW/CONSENT TO JURISDICTION. All disputes, claims or
controversies arising out of this Agreement, or the negotiation, validity or
performance of this Agreement, or the Sale Transaction shall be governed by
and construed in accordance with the laws of the State of California without
regard to its rules or conflict of laws. Each party hereby irrevocably and
unconditionally consents to submit to the sole and exclusive jurisdiction of
the courts of the State of California and of the United States of America
located in the State of California (the "California Courts") for any
litigation arising out of or relating to this Agreement, or the negotiation,
validity or performance of this Agreement, or the Sale Transaction (and
agrees not to commence any litigation relating thereto except in such
courts), waives any objection to the laying of venue of any such litigation
in the California Courts and agrees not to plead or claim in any California
Court that such litigation brought therein has been brought in any
inconvenient forum. Each of the parties hereto agrees: (i) to the extent such
party is not otherwise subject to service of process in the State of
California, to appoint and maintain an agent in the State of California as
such party's agent for acceptance of legal process; and (ii) that service of
process may also be made on such party by prepaid certified mail with a proof
of mailing receipt validated by the United States Postal Service constituting
evidence of valid service. Service made pursuant to (i) or (ii) above shall
have the same legal force and effect as if served upon such party personally
within the State of California.

         11.16 INCORPORATION. The SELLER DISCLOSURE SCHEDULE and all Exhibits
and Schedules attached hereto and thereto are referred to herein and therein
respectively, are hereby incorporated herein and made a part hereof for all
purposes as if fully set forth herein.

         11.17 NATURAL HAZARD AREAS. Buyer and Sellers acknowledge that
Sellers are required to disclose if the Property lies within the following
natural hazard areas or zones: (1) a special flood hazard area designated by
the Federal Emergency Management Agency (Cal. Civ. Code? ss.1102.17); (2) an
area of potential flooding (Cal. Gov. Code? ss.8589.4); (3) a very high fire
hazard severity zone (Cal. Gov. Code ss.51183.5); (4) a wild land area that
may contain substantial forest fire risks and hazards (Pub. Resources Code
ss.4136); (5) an earthquake fault zone (Pub. Resources Code ss.2621.9); or
(6) a seismic hazard zone (Pub. Resources Code ss.2694). Buyer and Sellers
acknowledge that they have employed the services of either Vista

                                       37
<PAGE>

Information Solutions, Inc. or Environmental Data Resources, Inc. (which, in
such capacity is herein called "Natural Hazard Expert") to examine the maps
and other information specifically made available to the public by government
agencies for the purpose of enabling each of Sellers to fulfill its
disclosure obligations with respect to the natural hazards referred to in
California Civil Code Section 1102.6c(a) and to report the result of its
examination to Buyer and Seller in writing. The written report prepared by
the Natural Hazard Expert regarding the results of its examination fully and
completely discharges Seller and Broker from their disclosure obligations
referred to herein, and, for the purpose of this Agreement, the provisions of
Civil Code Section 1102.4 regarding the non-liability of each of Sellers for
errors or omissions not within its personal knowledge shall be deemed to
apply and the Natural Hazard Expert shall be deemed to be an expert, dealing
with matters within the scope of its expertise with respect to the
examination and written report regarding the natural hazards referred to
above. In no event shall Seller have any responsibility for matters of which
Seller does not have Knowledge.

         11.18 ERISA. Seller hereby acknowledges that Buyer has informed
Seller of the following:

               (a) The funds being used by Buyer for this Sales Transactions
(the "FUNDS") are allocated entirely to a pooled separate account of Buyer (a
"SEPARATE ACCOUNT"). Employee benefit plans (as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended ("ERISA"))
invest in the Separate Account (the "PLANS").

               (b) The assets of the Separate Account are deemed plan assets
under ERISA. Each of the Plans whose interest in the Separate Account exceeds
10% of the total assets of the Separate Account is identified on EXHIBIT
11.18, attached hereto.

               (c) The Funds are subject to the prohibited transaction
restrictions of ERISA and the Internal Revenue Code, prohibiting certain
transactions between a plan and a "party in interest" (or "disqualified
person") as those terms are defined in Section 3(14) of ERISA, or Section
4975(e)(2) of the Internal Revenue Code, respectively.

Seller represents and warrants to Buyer that:

               (i)   Seller is not an "employee benefit plan" (as that term
is defined in Section 3(3) of ERISA).

               (ii)  The assets of Seller do not constitute "plan assets" of
one or more employee benefit plans within the meaning of 29 C.F.R. 2510.3-101.

               (iii) Seller is not The Prudential Insurance Company of
America, a separate account of Prudential, or an "affiliate" of Prudential as
defined in Section IV(b) of PTE90-1.

               (iv)  Seller is not a "party in interest" (as that term is
defined in Section 3(14) of ERISA) with respect to any of the Plans listed on
EXHIBIT 11.18.

                                       38
<PAGE>

Seller hereby agrees (at no cost, expense or liability to Seller) to execute
such documents or provide such information as Buyer may require in connection
with the Sales Transactions or to otherwise assure that: (1) the Sales
Transactions are not prohibited transactions under ERISA, (2) that the Sales
Transactions are otherwise in full compliance with ERISA, and (iii) Buyer is
not in violation of ERISA by compliance with this Agreement and by closing
the Sales Transactions. Buyer shall not be obligated to consummate the Sales
Transactions (in which event Seller shall be entitled to the Earnest Money
Deposit) unless and until the Sales Transactions comply with ERISA and Buyer
is satisfied that the Sales Transactions comply in all respects with ERISA.
The obligations of Seller under this Paragraph shall survive the Closings and
shall not be merged therein.

         11.19 OLYMPIAD PLAZA LOAN. The Olympiad Plaza Property is encumbered
by certain indebtedness set forth on SCHEDULE 1.3 (and as more particularly
described in the Assumed Indebtedness Documents listed in SCHEDULE 1.3
relating to that loan) (the "Olympiad Plaza Loan"). Buyer shall have the
right, at its option, to cause Seller to prepay the Olympiad Plaza Loan at
least 48 hours prior to the Closing of its acquisition of the Olympiad Plaza
Property. Buyer may exercise this right upon written notice delivered to
Seller at least twenty (20) days prior to the Closing of its acquisition of
the Olympiad Plaza Property. If Buyer elects to cause Seller to so prepay the
Olympiad Plaza Loan, the Purchase Price allocated to the Olympiad Plaza
Property shall be increased by the net amount of the prepayment penalty
incurred by Seller in prepaying the Olympiad Plaza Loan. If Buyer elects to
cause Seller to prepay the Olympiad Plaza Loan, the Olympiad Plaza Loan shall
not be considered part of the Assumed Indebtedness and the Purchase Price
allocated to the Olympiad Plaza Property, as increased as set forth
hereinabove, shall be paid in accordance with clauses (i) and (iii) of
Section 1.30. If Buyer exercises its right to cause the Olympiad Plaza Loan
to be prepaid, Buyer agrees to extend the scheduled Closing Date for up to
twenty (20) days to allow Seller to obtain funds for the prepayment.

         11.20 LIQUIDATED AMOUNT, TOPPING AMOUNT AND LIABILITY CAP
ADJUSTMENTS. The Liquidated Amount, the Topping Amount and the Liability Cap
shall be calculated taking into account the adjustments to the Purchase Price
resulting from certain casualty or condemnation events pursuant to Section
7.6 and/or any Termination as to the Hilltop/Village East Property pursuant
to Section 8.6 of this Agreement.

                            [Signature pages follow]

                                       39
<PAGE>

                           Counterpart Signature Page

                                       to

                          Purchase and Sale Agreement

                                    between

                        Burnham Pacific Properties, Inc.

                                      and

                  The Prudential Insurance Company of America

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

                                    Seller

                                    BURNHAM PACIFIC PROPERTIES INC.

                                    By: /s/ Scott C. Verges
                                        ----------------------------
                                    Name: Scott C. Verges
                                          --------------------------
                                    Title: President
                                          --------------------------

<PAGE>

                           Counterpart Signature Page

                                       to

                          Purchase and Sale Agreement

                                    between

                        Burnham Pacific Properties, Inc.

                                      and

                  The Prudential Insurance Company of America

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

                                    THE PRUDENTIAL INSURANCE
                                    COMPANY OF AMERICA

                                    By: /s/ Gary L. Kauffman
                                       ----------------------------
                                    Name: Gary L. Kauffman
                                         --------------------------
                                    Title: Vice President
                                          -------------------------<PAGE>

                        AGREEMENT FOR PURCHASE AND SALE

                               SEPTEMBER 18, 2000

<PAGE>

<TABLE>
<CAPTION>

                               TABLE OF CONTENTS

ARTICLE                                                                                                        PAGE
<S>               <C>                                                                                          <C>

ARTICLE 1         BASIC DEFINITIONS...............................................................................1

ARTICLE 2         PURCHASE........................................................................................4

ARTICLE 3         CONDITIONS PRECEDENT...........................................................................10

ARTICLE 4         COVENANTS, WARRANTIES AND REPRESENTATIONS......................................................12

ARTICLE 5         DEPOSIT; DEFAULT...............................................................................19

ARTICLE 6         CLOSING........................................................................................20

ARTICLE 7         MISCELLANEOUS..................................................................................28
</TABLE>

<PAGE>

                                List of Exhibits

         *  Exhibit A-         Properties
         *  Exhibit B --       Disclosure Materials List & Statement
         *  Exhibit C --       Rent Rolls and Security Deposits
         *  Exhibit D --       Transfer Documents
         *  Exhibit E          Litigation
         *  Exhibit F --       INTENTIONALLY DELETED
         *  Exhibit G --       Closing Cost Customs
         *  Exhibit H--        INTENTIONALLY DELETED
         *  Exhibit I--        Excluded Claims

<PAGE>

                        AGREEMENT FOR PURCHASE AND SALE

         THIS AGREEMENT FOR PURCHASE AND SALE is made and entered into as of
September 18, 2000, by and among BPP/GOLDEN STATE ACQUISITIONS, L.L.C., a
Delaware limited liability company ("Seller"), and GMS REALTY, LLC, a Delaware
limited liability company ("Buyer"). This Agreement shall be effective on the
"Effective Date", which is the date on which the last person signing this
Agreement shall have signed this Agreement.

                                    RECITALS

         A. The Seller holds ownership of a portfolio of properties listed on
EXHIBIT A to this Agreement and defined below with greater specificity as the
"Properties."

         B. Buyer desires to acquire and Seller desires to convey, assign and
transfer, subject to the terms and conditions contained in this Agreement, the
entirety of its right, title and interest in the Properties.

                                   AGREEMENT

         NOW, THEREFORE, Buyer and Seller do hereby agree as follows:

                                   ARTICLE 1
                               BASIC DEFINITIONS

         "Closing" shall mean the consummation of the transaction contemplated
hereunder, as evidenced by the delivery of all required funds and documents to
the Escrow Agent.

         "Closing Date" shall mean the date which is thirty (30) days after the
Due Diligence Expiration Date, as the same may be extended, as set forth in this
Agreement.

         "Contract Period" shall mean the period from the Effective Date through
and including the Closing Date (or any earlier termination of this Agreement).

         "Contracts" shall mean all maintenance, service and other operating
contracts, equipment leases and other arrangements or agreements to which Seller
is a party affecting the ownership, repair, maintenance, management, leasing or
operation of the Properties.

         "Disclosure Materials" shall mean those materials described in EXHIBIT
B, the Disclosure Materials List & Statement, to which Buyer shall be afforded
access and review rights pursuant to this Agreement.

         "Disclosure Materials List & Statement" shall mean the statement set
forth as EXHIBIT B to this Agreement.

         "Due Diligence Expiration Date" shall mean the date which is forty (40)
days after the Effective Date.

                                       1
<PAGE>

         "Hazardous Materials" means any chemical, compound, pollutant material,
substance or other matter that: (a) is defined as a hazardous substance,
hazardous material, hazardous waste or toxic substance under any Hazardous
Materials Law, (b) is controlled or governed by any Hazardous Materials Law, (c)
actually or potentially gives rise to any remediation, permitting, licensing,
reporting, notice or publication requirement on the part of any party hereto,
(d) actually or potentially gives rise to any liability, responsibility or duty
on the part of any party hereto with respect to any third person or governmental
agency, (c) is asbestos or an asbestos-containing material, or (d) is flammable
or explosive material, oil, petroleum product, urea formaldehyde, radioactive
material, or nuclear medicine material.

         "Hazardous Materials Laws" means any and all federal, state or local
laws, ordinances, rules, decrees, orders, regulations or court decisions
(including the so-called "common law") relating to Hazardous Materials,
environmental conditions on, under or about the Property, soil and ground water
conditions or other similar substances or conditions, including without
limitation the Comprehensive Environmental Response Compensation and Liability
Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the
Federal Clean Air Act, the Federal Water Pollution Control Act, the Resource
Conservation and Recovery Act, the Hazardous Materials Transportation Act, The
Clean Water Act, the Toxic Substance Control Act, California Health and Public
Safety Code Section 25117, Sections 6680 through 6685 of Title 22 of the
California Administrative Code, Division 4, Chapter 30, any amendments to any of
the foregoing, and all rules and regulations promulgated under any of the
foregoing, and any similar federal, state or local laws, ordinances, rules,
decrees, orders or regulations.

         "Improvements" shall mean, as to each of the properties listed on
EXHIBIT A, the right, title and interest of the Seller in ownership of such
property in any and all structures, buildings, facilities, parking areas or
other improvements situated on such property's Land and all related fixtures,
improvements, building systems and equipment (including, without limitation,
HVAC, security and life safety systems).

         "Intangible Property" shall mean, as to each Real Property, the right,
title and interest of the Seller in ownership of such Real Property in: (a) any
and all permits, entitlements, filings, building plans, specifications and
working drawings, certificates of occupancy, operating permits, sign permits,
development rights and approvals, certificates, licenses, warranties and
guarantees, engineering, soils, pest control, survey, environmental, appraisal,
market and other reports relating to such Real Property and associated Personal
Property; (b) all trade names, service marks, tenant lists, advertising
materials and telephone exchange numbers identified with such Real Property; (c)
the Contracts and the Leases; (d) except as set forth on EXHIBIT I attached
hereto (the "Excluded Claims"), claims, awards, actions, remedial rights and
judgments, and escrow accounts relating to environmental remediation, to the
extent relating to such Real Property and associated Personal Property; (e) all
books, records, files and correspondence relating to such Real Property and
associated Personal Property; and (f) all other transferable intangible
property, miscellaneous rights, benefits or privileges of any kind or character
with respect to such Real Property and associated Personal Property, including,
without limitation, under any REAs, provided that the Intangible Property shall
not include any Seller's name or any right to the reference "BPP," "Burnham
Pacific," or "Burnham".

                                       2
<PAGE>

         "Land" shall mean, as to each of the properties listed on EXHIBIT A,
the land component of the property as described with precision in the Title
Policies.

         "Leases" shall mean, as to each Real Property, all leases, concession
agreements, rental agreements or other agreements (including all amendments or
modifications thereto) which entitle any person other than Seller to the
occupancy or use of any portion of the Real Property.

         "Lender" shall mean Nomura Asset Capital Corporation, a Delaware
corporation.

         "Loan" shall mean collectively that certain loan in the original
principal amount of One Hundred Thirty Five Million Thirty Nine Thousand Nine
Hundred Fifty and 82/100 ($135,039, 950.82) and that certain interest rate
buy-up premium in the original amount of Fourteen Million Nine Hundred Sixty
Thousand Forty Nine and 34/100 Dollars ($14,960,049.34), from Lender to Seller,
as evidenced by the Loan Documents. "Loan Documents" shall mean the Note, that
certain Loan Agreement dated December 31, 1997 between Lender and Seller, that
certain letter agreement regarding the loan amount dated December 31, 1997,
those certain Fee and Leasehold Deeds of Trust, Assignments of Rents, Security
Agreements and Fixture Filings from Seller for the benefit of Lender, those
certain Assignments of Leases and Rents from Seller for the benefit of Lender
dated December 31, 1997 and such other loan documents securing the Note.

         "Note" shall mean that certain Promissory Note dated December 31, 1997
made by Seller in favor of Lender in the original principal amount of One
Hundred Thirty Five Million Thirty Nine Thousand Nine Hundred Fifty and 82/100
($135,039,950.82).

         "Permitted Exceptions" shall mean the various matters affecting title
to the Properties that are approved or deemed approved by Buyer pursuant to
Section 2.5 below.

         "Personal Property" shall mean, as to each Real Property, all
furniture, furnishings, trade fixtures and other tangible personal property
directly or indirectly owned by the Seller in ownership of such Real Property
that is located at and used exclusively in connection with the operation of any
Real Property.

         "Property" shall mean, with respect to each of the properties described
on EXHIBIT A, the Real Property, the Personal Property and the Intangible
Property. Collectively, such properties shall be referred to as the
"Properties."

         "Purchase Price" shall mean Three Hundred Five Million and 00/100
Dollars ($305,000,000.00), payable as set forth in Section 2.2 below.

         "Real Property" shall mean, as to each property listed on EXHIBIT A,
the Land, the Improvements and all of Seller's right, title and interest in and
to the rights, privileges, easements, and appurtenances to the Land or the
Improvements, including, without limitation, any air, development, water,
hydrocarbon or mineral rights held by Seller, all licenses, easements,
rights-of-way, claims, rights or benefits, covenants, conditions and servitude
and other appurtenances used or connected with the beneficial use or enjoyment
of the Land or the

                                       3
<PAGE>

Improvements and all rights or interests relating to any roads, alleys or
parking areas adjacent to or servicing the Land or the Improvements.

         "REAs" shall have the meaning set forth in Section 2.6(b) below.

         "Rent Rolls" shall refer to the information schedules attached as
EXHIBIT C-1 to this Agreement pertaining to the Leases.

         "Title Company" shall mean Chicago Title Company; Attn: Chris Ghio
(Telephone: (619) 899-5322.

         "Title Policies" shall refer to Seller's existing title insurance
policies with respect to the Properties, complete copies of which have been or
will be made available by Seller to Buyer.

                                 ARTICLE 2
                                 PURCHASE

         SECTION 2.1 PURCHASE AND TRANSFER. Seller agrees to sell the Properties
to Buyer and Buyer agrees to purchase or cause to be purchased by an affiliate
of Buyer the Properties upon all of the terms, covenants and conditions set
forth in this Agreement.

         SECTION 2.2 TERMS OF PAYMENT. Buyer shall pay the Purchase Price to
Seller as follows:

                  (a) On or before September 22, 2000, and as a condition
precedent to the effectiveness of this Agreement, Buyer shall deliver to Title
Company a cashier's check in the amount of Five Million and 00/100 Dollars
($5,000,000.00) (the "Initial Deposit"), as an earnest money deposit on account
of the Purchase Price. On the Due Diligence Expiration Date should Buyer elect
to proceed with the transaction contemplated under this Agreement, Buyer shall
deliver to Title Company an additional deposit ("Additional Deposit") in the
amount of Five Million and 00/100 Dollars ($5,000,000.00) . As used in this
Agreement, the term "Deposit" means the Initial Deposit, the Additional Deposit
and all amounts which, at the time in question, shall have been deposited into
escrow by Buyer.

                  (b) The balance of the Purchase Price shall be payable as
follows: (i) assumption by Buyer of the Loan, and (ii) the remainder (namely,
the Purchase Price minus the Deposit and all unpaid amounts under the Note and
the other Loan Documents as of the Closing; provided, however, that the unpaid
amounts under the Note and other Loan Documents shall be deemed to be One
Hundred Thirty Eight Million and 00/100 Dollars ($138,000,000.00)), in cash, at
Closing. For all purposes of this Agreement, the amount assumed by Buyer at
Closing under the Note shall be deemed to be One Hundred Thirty Eight Million
and 00/100 Dollars ($138,000,000.00).

                                       4
<PAGE>

         SECTION 2.3       DEPOSIT.

                  (a) Title Company shall deposit the Deposit in an
interest-bearing account, and the term "Deposit" as used in this Agreement shall
include any interest earned thereon. The Deposit shall be invested by Escrow
Agent in an interest-bearing account or accounts as directed by Buyer.

         SECTION 2.4 BUYER'S REVIEW AND INSPECTION AND SELLER'S DISCLAIMER.

                  (a) Within five (5) days following the Effective Date, Seller
shall have delivered copies, or otherwise made available to Buyer for Buyer's
review at Seller's offices in San Diego, California, and Buyer shall have
reviewed and approved, on or before the Due Diligence Expiration Date, all of
the Disclosure Materials. Buyer shall assume fully the obligation to completely
and adequately review and consider any or all of such materials. The Disclosure
Materials shall be made continuously available to Buyer at such location
throughout the Contract Period.

                  (b) Following the execution and delivery of this Agreement and
until the Due Diligence Expiration Date, and subject to the restrictions,
limitations and other provisions of this Section 2.4, Seller shall allow Buyer
(and its authorized representatives and agents) reasonable access to the
Properties, during business hours, for the purpose of making examinations,
tests, analyses, investigations, surveys, inquiries and other inspections in
connection with Buyer's efforts to bring about satisfaction of the condition
precedent set forth in Section 3.1(a)(ii). Buyer's exercise of such right of
access shall be subject to the following limitations: (i) any entry onto any
Property by Buyer, its agents or representatives, shall be during normal
business hours, following not less than 24 hours' prior notice to Seller (which
notice may be by telephone, facsimile or email) and, at Seller's discretion,
accompanied by a representative of Seller; (ii) Buyer shall not conduct any
invasive or destructive physical diligence or inspections of the Properties
including, without limitation, drilling, test borings or other disturbance of
any Property for review of soils, compaction, environmental, structural or other
conditions, without Seller's prior written consent (which may be withheld in
Seller's sole and absolute discretion) provided that Seller shall respond in
writing to Buyer's request for permission to conduct any such diligence or
inspections within two (2) business days after Buyer's request; (iii) any
discussions or interviews with any third party, any partner of Seller, any
tenants of a Property or their respective personnel, at Seller's election, shall
be conducted in the presence of Seller or its representatives; (iv) any
discussions or interviews with employees at any Property shall be limited to
designated senior employees and, at Seller's election, shall be conducted in the
presence of Seller or its representatives; (v) Buyer not disturb the use or
occupancy or the conduct of business at any Property; (vi) prior to any entry
upon the Property by Buyer or any of its agents, representatives, Buyer shall
deliver to Seller a certificate of insurance evidencing that Buyer carries a
liability insurance policy in an amount not less than $5,000,000, which
liability insurance policy names Seller as an additional insured; and (vii)
Buyer shall indemnify, defend and hold Seller harmless from all loss, cost, and
expense relating to personal injury or property damage resulting from any entry
by Buyer, its agents or representatives; provided however that Buyer's indemnity
shall not include liability for the mere discovery of any condition already

                                       5
<PAGE>

existing on the Properties and not the result of Buyer's activities. Following
the Due Diligence Expiration Date and for the remainder of the Contract Period,
but subject to the provisions of this Section 2.4, Seller shall permit Buyer,
and Buyer's representatives, continued access to the Properties, and to tenants,
parties to REAs, parties to options and rights of first refusal, and parties to
management agreements and Contracts, for Buyer's further investigation of the
Properties; provided, however that such continued access and investigation shall
have no effect on the waiver or satisfaction of Buyer's conditions as of the Due
Diligence Expiration Date.

                  (c) Buyer acknowledges that Seller will have afforded Buyer
and its agents and representatives an opportunity to conduct such appraisals and
investigations of the Properties including, without limitation, investigations
with respect to the physical, environmental, economic and legal condition of the
Properties, prior to the Due Diligence Expiration Date and, subject to the
express terms of this Agreement, the Buyer shall have completed all such
investigations to its satisfaction. Except in the case of fraud by Seller, Buyer
assumes the full risk that Buyer has failed completely and adequately to cause
such inspections and consider any and all results of such inspections. Buyer
acknowledges (i) that Buyer has entered into this Agreement with the intention
of making and relying upon its own investigation of the physical, environmental,
economic and legal condition of the Properties, (ii) that, other than those
specifically set forth in Article 4 below or in any document to be delivered
pursuant to Section 6.1, Seller is not making and have not at any time made any
warranty or representation of any kind, expressed or implied, with respect to
the Properties, including, without limitation, warranties or representations as
to habitability, merchantability, fitness for a particular purpose, title (other
than Seller's limited warranty of title set forth in the Deeds), zoning, tax
consequences, latent or patent physical or environmental condition, utilities,
operating history or projections, valuation, projections, compliance with law or
the truth, accuracy or completeness of the Disclosure Materials, (iii) that
other than those specifically set forth in Article 4 below or in any document to
be delivered pursuant to Section 6.1, Buyer is not relying upon and is not
entitled to rely upon any representations and warranties made by Seller or
anyone acting or claiming to act on Seller's behalf, (iv) that the Disclosure
Materials include soils, environmental and/or physical reports prepared for
Seller by third parties as to which Buyer has no right of reliance (provided,
however, that nothing herein shall be deemed to limit Buyer's right to seek to
obtain from the third parties which prepared such reports the right to rely on
such reports at no cost to Seller or to conduct Buyer's own independent
evaluation of the Properties with respect to the matters covered in such
reports), and (v) that the Disclosure Materials may include economic projections
which reflect assumptions as to future market status and future Property income
and expense with respect to the Properties which are inherently uncertain and as
to which Seller has not made any guaranty or representation whatsoever. With
respect to the soils, environmental and/or physical reports prepared for Seller
by third parties, Buyer acknowledges that Seller has made no representation
whatsoever as to accuracy, completeness or adequacy thereof. Buyer further
acknowledges that it has not received from Seller any accounting, tax, legal,
architectural, engineering, property management or other advice with respect to
this transaction and is relying solely upon the advice of its own accounting,
tax, legal, architectural, engineering, property management and other advisors.
Except as provided in the representations and warranties of Seller set forth in
Article 4 below and except as otherwise expressly set forth in this Agreement or
in any document to be delivered pursuant to Section 6.1, based upon Buyer's
familiarity with

                                       6
<PAGE>

and due diligence to be conducted by Buyer relating to the
Properties and pertinent knowledge as to the markets in which the Properties are
situated and in direct consideration of Seller's decision to sell the Properties
to Buyer for the Purchase Price, and not to pursue available disposition
alternatives, Buyer shall purchase the Properties in an "as is, where is and
with all faults" condition on the Closing Date and (except in the case of fraud
by Seller ) assumes fully the risk that adverse latent or patent physical,
environmental, economic or legal conditions may not have been revealed by its
investigations. Seller and Buyer acknowledge that the compensation to be paid to
Seller for the Properties has taken into account that the Properties are being
sold subject to the provisions of this Section 2.4. Seller and Buyer agree that
the provisions of this Section 2.4 shall survive Closing.

                  (d) Consistent with the foregoing and subject solely to the
express covenants and indemnities set forth in this Agreement and the
representations set forth in Section 4.1 or in any document to be delivered
pursuant to Section 6.1 below (as such covenants, indemnities and
representations are limited pursuant to Section 4.4 hereof) and except for
rights, claims, demands and liabilities arising out of or based upon any fraud
by any of the Releasees (as defined below), effective as of the Closing Date,
Buyer, for itself and its agents, affiliates, successors and assigns, hereby
releases and forever discharges Seller, and its members and beneficial owners
and Burnham Pacific Properties, Inc., a Maryland corporation ("BPPI"), and its
shareholders, officers and directors (collectively, the "Releasees") from any
and all rights, claims and demands at law or in equity, whether known or unknown
at the time of this agreement, which Buyer has or may have in the future,
arising out of the physical, environmental, economic or legal condition of the
Properties, including, without limitation, all claims in tort or contract and
any claim for indemnification or contribution arising under the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. Section 9601,
et. seq.) or any similar federal, state or local statute, rule or ordinance
relating to liability of property owners for environmental matters. Without
limiting the foregoing, Buyer, upon Closing, shall be deemed to have waived,
relinquished and released Seller and all other Releasees from and against any
and all matters arising out of latent or patent defects or physical conditions,
violations of applicable laws and any and all other acts, omissions, events,
circumstances or matters affecting the Properties, except for breach of the
express covenants and indemnities set forth in this Agreement and the
representations and warranties set forth in Section 4.1 or in any document to be
delivered pursuant to Section 6.1 (as such covenants, indemnities and
representations are limited pursuant to Section 4.4 hereof) and except for
rights, claims, demands and liabilities arising out of or based upon any fraud
by any of the Releasees. For the foregoing purposes, Buyer hereby specifically
waives the provisions of Section 1542 of the California Civil Code and any
similar law of any other state, territory or jurisdiction. Section 1542
provides:

         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
<PAGE>

Buyer hereby specifically acknowledges that Buyer has carefully reviewed this
subsection and discussed its import with legal counsel and that the provisions
of this subsection are a material part of this Agreement.

                                ---------------
                                     Buyer

                  (e) Subject to the express covenants and indemnities set forth
in this Agreement and the representations of Seller set forth in Section 4.1 or
in any document to be delivered pursuant to Section 6.1 (as such covenants,
indemnities and representations are limited pursuant to Section 4.4 hereof),
Buyer shall indemnify, defend, protect and hold Seller harmless from and against
any and all claims, actions, causes of action, demands, liabilities, damages,
costs and expenses (including attorneys' fees), whether direct or indirect,
known or unknown, foreseeable or unforeseeable, which may be asserted against or
suffered by Seller at any time after the Closing due to acts or omissions
occurring and first arising after Closing, on account of or in any way arising
out of or connected with the Property, including: (i) the physical condition,
nature or quality of the Property (including the soils and groundwater on and
under the Real Property); (ii) the presence or release in, under, on or about
the Property (including the soils and groundwater on and under the Real
Property) of any Hazardous Materials; and (iii) the ownership, management or
operation of the Property, including any claim or demand by any tenant for the
refund or return of any security deposit or other deposit. At the Closing, upon
the request of Seller, Buyer shall deliver to Seller a certificate reaffirming
the foregoing..

                  SECTION 2.5       TITLE EXCEPTIONS.

                  (a) Title to the Real Property shall be conveyed from Seller
to Buyer by grant deed (the "Deed"), subject to: (i) liens to secure payment of
real estate taxes and assessments not delinquent; (ii) applicable zoning and use
laws, ordinances, rules and regulations of any municipality, township, county,
state or other governmental agency or authority; (iii) all matters that would be
disclosed by a physical inspection or survey of the Real Property or that are
actually known to Buyer; (iv) the Loan Documents; (v) any exceptions or matters
created by Buyer, its agents, employees or representatives; (vi) all Leases,
(vii) Contracts accepted by Buyer pursuant hereto; and (viii) such other
exceptions as Buyer may approve in writing pursuant to Section 2.5(b). The
foregoing exceptions to title are referred to as the "Permitted Exceptions."

                  (b) Within five (5) days after the Effective Date, Seller
shall cause the Title Company to issue preliminary title reports for the Real
Property. On or before the Due Diligence Expiration Date, Buyer shall notify
Seller of any exceptions to title for such report which are objectionable to
Buyer or setting forth such changes or endorsements required to satisfy Buyer's
objections ("Buyer's Objection Notice"). If Seller does not intend to effect
such changes or endorsements, Seller shall advise Buyer in writing within five
(5) days after receipt of Buyer's Objection Notice (the "Response Notice"). If
Seller timely delivers a Response Notice to Buyer, then at Buyer's sole
election, to be made within five (5) days after receipt of the Response Notice,
either (i) this Agreement shall automatically terminate, or (ii) Buyer shall
agree to purchase the Property subject to the matters described in the Response
Notice. On or before the Closing, Seller shall eliminate any deeds of trust,
mortgages, judgment liens, mechanics' liens,

                                       8
<PAGE>

and materialmen's liens encumbering the Properties, except the lien securing the
Loan, monetary liens not arising from the acts or omissions of Seller or any of
its employees, agents, contractors, or affiliates, or mechanic' liens or
material liens pertaining to work in progress as of the Closing, the completion
of which Buyer has agreed to undertake. If Seller does not remove or provide to
the satisfaction of Buyer for removal of the objectionable exceptions to title
(excluding the items set forth in any Response Notice) before Closing, Buyer
shall have the right (i) to terminate this Agreement and receive a refund of the
Deposit, or (ii) to proceed with consummation of this transaction
notwithstanding such objectionable items.

                  (c) Seller shall have no obligation to execute any affidavits
or indemnifications in connection with the issuance of Buyer's title insurance
excepting only the such customary affidavits as to authority, the rights of
tenants in occupancy, the status of mechanics' liens and other affidavits or
indemnifications reasonably necessary to address matters of title which Seller
has agreed to or is required to remove or cure pursuant to this Section 2.5.

                  SECTION 2.6       ESTOPPELS

                  (a) As of the Due Diligence Expiration Date, Buyer shall have
received and reasonably approved estoppel certificates ("Estoppels") from
tenants occupying the Properties and from the ground lessor of the Property
commonly known as Discovery Plaza. Seller shall use reasonable efforts to obtain
Estoppels in a reasonable form prepared by Buyer. Seller will prepare the actual
Estoppels to be presented to each tenant and the ground lessor of Discovery
Plaza once the general form for each type of Estoppel is agreed upon by Seller
and Buyer. For purposes of this Section 2.6(a), the obligation of Seller to use
"reasonable efforts" to obtain the Estoppels shall not include any obligation to
agree to an adverse modification of the terms of such lease for which the
Estoppel is sought or to incur additional obligations not contemplated by such
lease to such other parties unless Buyer agrees to such modification or
obligation at Closing. Seller shall provide to Buyer all Estoppels received by
Seller and all other responses to Seller's request for the Estoppels. Buyer
shall be entitled to object to any Estoppel if such Estoppel is not consistent
with any of the Disclosure Materials or with the representations and warranties
of Seller set forth herein.

                  (b) As of the Due Diligence Expiration Date, Buyer shall have
received estoppel certificates ("REA Estoppels") from all parties (other than
Seller) to any declaration of covenants, conditions and restrictions and/or
reciprocal easement agreements affecting any of the Properties ("REAs"). Seller
shall use reasonable efforts to obtain each such REA Estoppel in a reasonable
form prepared by Buyer after review of the applicable documents, and addressing,
among other things, the status of payment of common area expenses, the existence
or nonexistence of defaults or unperformed obligations, the status of any
amendments or modifications to such agreement. . For purposes of this Section
2.6(b), the obligation of Seller to use "reasonable efforts" to obtain the REA
Estoppels shall not include any obligation to agree to an adverse modification
of the terms of such REA for which the REA Estoppel is sought or to incur
additional obligations not contemplated by such REA to such other parties unless
Buyer agrees to such modification or obligation at Closing.

                                       9
<PAGE>

                                   ARTICLE 3
                              CONDITIONS PRECEDENT

         SECTION 3.1       CONDITIONS.

                  (a) Notwithstanding anything in this Agreement to the
contrary, Buyer's obligation to purchase the Properties shall be subject to and
contingent upon the satisfaction or waiver of the following conditions precedent
with respect to each Property:

                  (i)      The willingness, upon the sole condition of the
                           payment of any regularly scheduled premium, of the
                           Title Company to issue an ALTA owner's policy of
                           title insurance with respect to each Property (or
                           such other form(s) as may be reasonably satisfactory
                           to Buyer), insuring Buyer (or Buyer's permitted
                           assignee or nominee) that title to the applicable
                           Real Property is vested of record in Buyer (or
                           Buyer's permitted assignee or nominee) on the Closing
                           Date subject only to the printed conditions and
                           exceptions of such policies (but deleting (by
                           endorsement or otherwise), where permitted under
                           applicable laws or regulations and at Buyer's
                           expense, any co-insurance, creditors rights and
                           so-called "standard" exceptions) and the Permitted
                           Exceptions applicable to such Real Property and
                           containing CLTA endorsements 100, 100.20, 101.4,
                           103.3, 103.1A, 103.7, 116, 116.1, 116.4, 116.7, and
                           123.2 (the "Buyer's Title Policies");

                  (ii)     On or before the Due Diligence Expiration Date, Buyer
                           shall have reviewed and approved all Disclosure
                           Materials provided to Buyer by Seller pursuant to
                           Section 2.4(a), shall have completed and approved its
                           inspection of the Properties pursuant to Section
                           2.4(b), shall have reviewed and approved the Loan
                           Documents and shall have reviewed and approved the
                           economic feasibility of the Properties; and

                  (ii)     Seller's performance or tender of performance of all
                           material obligations under this Agreement with
                           respect to the applicable Property, including
                           Seller's covenants under Section 4.2 with respect to
                           such Property.

         (b) Notwithstanding anything in this Agreement to the contrary,
Seller's obligation to sell the Properties shall be subject to and contingent
upon the satisfaction or waiver of the following conditions precedent:

                  (i)      Buyer's performance or tender of performance of all
                           material obligations under this Agreement;

                                       10
<PAGE>

                  (ii)     Within forty five (45) days after the Effective Date,
                           Seller and Buyer shall have obtained the written
                           approval of Buyer's purchase of the Properties, and
                           the assumption by Buyer (or Buyer's affiliated
                           designee) of the Note and the Loan Documents, from
                           the Lender, and the release of Seller and its
                           affiliates from all obligations under the Note and
                           Loan Documents, upon terms reasonably acceptable to
                           Seller and Buyer;

                  (iii)    On or before the Closing Date, this Agreement and the
                           transaction contemplated herein shall have been
                           approved by the board of directors and by the
                           requisite vote of the shareholders of BPPI; provided,
                           however, that if the meeting of the shareholders of
                           BPPI currently scheduled for October 18, 2000 is
                           delayed in connection with the review of BPPI's proxy
                           statement ("BPPI's Proxy Statement") to be filed with
                           the Securities and Exchange Commission under the
                           Securities Exchange Act of 1934, Seller shall have
                           the right to extend the Closing Date to a date which
                           is ten (10) days after the shareholders' meeting as
                           it may be rescheduled from time to time but in no
                           event later than January 10, 2001;

                  (iv)     On or before Closing Date, this Agreement and the
                           transaction contemplated herein shall have been
                           approved by the holders of operating partnership
                           units in the Seller ("OP Unit Holders"); provided
                           however that if Seller after good faith efforts is
                           not able to obtain the approval of the OP Unit
                           Holders on or before the Closing Date, Seller shall
                           have the right to extend the Closing to January 2,
                           2001; and

                  (v)      On or before Closing Date, the consent of the ground
                           lessor of the Property commonly known as Discovery
                           Plaza shall have been obtained (to the extent
                           required under the terms of the ground lease relating
                           to such Property).

         SECTION 3.2       FAILURE OR WAIVER OF CONDITIONS PRECEDENT.

               (a) If any of the conditions set forth in Section 3.1(a) is not
fulfilled or waived by Buyer, Buyer may, by written notice to Seller, terminate
this Agreement. If any of the conditions set forth in Section 3.1(b) is not
fulfilled or waived by Seller, Seller may, by written notice to Buyer, terminate
this Agreement. Either party may, at its election, at any time or times on or
before the date specified for the satisfaction of the condition, waive in
writing the benefit of any of the conditions set forth in Sections 3.1(a) and
3.1(b) above. In any event, Buyer's consent to the close of escrow with respect
to the Properties pursuant to this Agreement shall

                                       11
<PAGE>

waive any remaining unfulfilled conditions for the benefit of Buyer with respect
to the Properties.

                  (b) Notwithstanding the foregoing, if Buyer desires to
terminate this Agreement based upon a failure of the condition set forth in
Sections 3.1(a)(i), (iii) or (iv) above, Seller shall have the right, but not
the obligation, for a period of 30 days within which to cure such failure. If
Seller has not cured such failure within such cure period then Buyer may elect
to terminate this Agreement.

         SECTION 3.3       BREAKUP FEE.

                  If Seller fails to obtain the requisite vote of the
shareholders of BPPI as provided in Sections 3.1 (b)(iii) and Seller
consequently terminates this Agreement, then as compensation to Buyer for
entering into this Agreement and the other matters described below, Seller shall
pay to Buyer, by cashier's check or wire transfer within ten (10) business days
after the failure of such condition and consequent termination, the sum of Three
Million Dollars ($3,000,000) (the "Breakup Fee"). Seller acknowledges and agrees
that the Breakup Fee is fully earned by Buyer upon execution of this Agreement
(subject only to satisfaction of such conditions). Seller further acknowledges
and agrees that (i) Buyer would not enter into this Agreement absent Seller's
agreement to pay the Breakup Fee, and (ii) the Breakup Fee is intended to
compensate Buyer for, among other things, its time, effort and expenses incurred
in pursuing the transaction contemplated hereby and investigating the
Properties, its foregoing other opportunities to pursue other properties for
acquisition, and to compensate Buyer for the lost advantages that the
consummation of this transaction would provide to Buyer.

                                   ARTICLE 4
                   COVENANTS, WARRANTIES AND REPRESENTATIONS

         SECTION 4.1 SELLER'S WARRANTIES AND REPRESENTATIONS. Seller expresses
to Buyer the representations and warranties set forth below as of the date of
this Agreement and as of the Closing Date, provided that each of such
representations and warranties shall be deemed expressly qualified by any
information set forth on the Disclosure Materials List & Statement or contained
in the Disclosure Materials, and any information set forth on the Disclosure
Materials List & Statement or contained in the Disclosure Materials shall be
deemed an exception to each and all of Seller's representations and warranties
set forth herein. Seller hereby represents and warrants with respect to itself
as follows:

                  (a) The Seller is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization and the Seller is
qualified to do business in the California. The Seller has full power and lawful
authority to enter into and carry out the terms and provisions of this Agreement
and to execute and deliver all documents which are contemplated by this
Agreement, and all actions of the Seller necessary to confer such power and
authority upon the persons executing this Agreement (and all documents which are
contemplated by this Agreement) on behalf of the Seller have been taken;

                                       12
<PAGE>

                  (b) Except with respect to the third party consents expressly
described in or contemplated under this Agreement or expressly required under
any agreements included in Intangible Property, the Seller's execution and
delivery of this Agreement, the consummation of the transactions contemplated
hereby and the performance of the Seller's obligations under the instruments
required to be delivered by the Seller at the Closing, do not and will not
require the consent, approval or other authorization of, or registration,
declaration or filing with, (collectively, "Consents") any governmental
authority (excepting the recordation of Closing documents contemplated in this
Agreement and any filings required under applicable state or federal securities
or tax laws) or any other person or entity, except such Consents as will be
obtained on or before Closing or as to which the failure to obtain would not
have a material and adverse effect on Seller's performance of its obligations
under this Agreement, and do not and will not result in any material violation
of, or material default under, any term or provision of any agreement,
instrument, mortgage, loan agreement or similar document to which the Seller is
a party or by which the Seller is bound;

                  (c) Except as set forth in EXHIBIT E, there is no litigation,
investigation or proceeding pending or, to the best of the Seller's knowledge,
contemplated or threatened which would impair or adversely affect the Seller's
ability to perform its obligations under this Agreement;

                  (d) The Seller is not a "foreign person" as defined in
Internal Revenue Code 1445(f)(3);

                  (e) Except as set forth in the Disclosure Materials, as of the
date of this Agreement, Seller has no knowledge that, and has received no
written notice from any governmental authorities that, eminent domain
proceedings for the condemnation of any Property or any part of a Property are
pending;

                  (f) Except as set forth in EXHIBIT E, as of the date of this
Agreement, Seller has no knowledge of, and has received no written notice of,
any threatened or pending litigation against Seller other than routine matters
covered by Seller's insurance or other matters which would not materially and
adversely affect any Property;

                  (g) Except as set forth in the Disclosure Materials, as of the
date of this Agreement, Seller has received no written notice from any
governmental authority that the improvements constituting any Property are
presently in material violation of any applicable building codes where such
violation has not been cured in all material respects;

                  (h) Except as set forth in the Disclosure Materials, as of the
date of this Agreement, Seller has received no written notice from any
governmental authority that any Property is presently in material violation of
any applicable zoning, land use or other law, order, ordinance, rule or
regulation affecting the Property which violation has not been cured, that any
investigation has been commenced or is contemplated with respect to any such
possible failure of compliance and Seller has not received written notice from
any insurance company or Board of Fire Underwriters any written notice of any
defect or inadequacy in connection with a Property or its operation where such
defect or inadequacy has not been cured in all material respects;

                                       13
<PAGE>

                  (i) Except as set forth in the Disclosure Materials, as of the
date of this Agreement, no Contracts involving payment in excess of $5,000 per
annum with respect to any Property will be binding upon Buyer after the Closing,
other than such Contracts that are cancelable by the owner of the Property
within 30 days after written notice from such owner without penalty or premium;

                  (j) As of the date of this Agreement, except as set forth in
the environmental reports included within the Disclosure Materials and any
reports or studies prepared by or for Buyer, Seller has received no written
notice of the presence or release of any Hazardous Materials presently
deposited, stored, or otherwise located on, under, in or about any Property
which require reporting or potentially require reporting to any governmental
authority, monitoring, clean up or remediation or are otherwise not in material
compliance with environmental laws, regulations and orders;

                  (k) The Rent Rolls constituting EXHIBIT C-1 to this Agreement
accurately identify as to each Lease as of September 15, 2000; the date of
occupancy, the date of the rent start, the expiration date of the current term
of the Lease; ; the current base rental payable under such Lease and future rent
escalations; the amount of additional rent (i.e., cost recovery) currently
billed to the tenant under the Lease; and the approximate rentable area of the
premises and the list of security deposits attached hereto as EXHIBIT C-2
accurately identify as to each Lease the amount of any security deposit held by
Seller. As of September 15, 2000, Seller had not received written notice of any
material default by Seller under any Leases, which default had not been cured in
all material respects, and Seller has not delivered any default notice to a
tenant under any Lease and, to Seller's knowledge and except as set forth in the
delinquency reports provided by Seller to Buyer, Seller was not aware of any
other material default by a tenant under a Lease, which defaults have not been
cured in all material respects; and

                  (l) With respect to the matters contained in the Disclosure
Materials List & Statement and the Disclosure Materials, to Seller's knowledge,
Seller has not willfully and intentionally or as a result of gross negligence
omitted to state any material facts required to be stated therein or willfully
and intentionally or as a result of gross negligence made any untrue statement
of a material fact, which would render the Disclosure Materials List & Statement
or the Disclosure Materials materially misleading.

         Subject to the provisions of Section 4.4, Seller shall be liable for
the breach of any representation and warranty of Seller set forth in this
Section 4.1.

                                   * * * * *

         For the foregoing purposes, the terms "Seller's knowledge" or words of
similar effect shall mean the current actual, subjective knowledge of Allison
Lynch, Karen Polivy, Courtney Trujillo, Jeanne Wilson, Colleen Dolan, Pat
Toomey, Lisa Cortese (who are the asset managers of one or more of the
Properties), Scott Verges, Dan Platt, and James Gaube (collectively, the
"Knowledge Persons"), in each case without independent investigation or inquiry.
Seller represents and warrants to Buyer that these individuals are the
individuals employed by Seller that have primary management, or maintenance
responsibility for the

                                       14
<PAGE>

Properties so that no individual likely to have material and specialized
knowledge as to the Properties has been omitted from this list. Such
individuals' knowledge shall not include information or material which may be in
the possession of Seller or the named individuals, but of which the named
individuals are not actually aware. None of the named individuals whose sole
knowledge is imputed to a Seller under this Section nor any party other than the
Seller affording a representation shall bear responsibility for any breach of
such representation.

         SECTION 4.2  SELLER'S COVENANTS. Seller hereby covenants and agrees as
follows:

                  (a) During the Contract Period, Seller will exercise
reasonable and good faith efforts (i) to operate and maintain the Properties in
a manner consistent with current practices and (ii) to comply, where such
compliance is the obligation of Seller (and not of a tenant or other party) in
all material respects with all material laws and regulations applicable to the
Properties;

                  (b) During the Contract Period, Seller will not sell or
otherwise dispose of any significant items of Personal Property unless replaced
with an item of like value, quality and utility;

                  (c) Following the Due Diligence Expiration Date and until the
end of the Contract Period, Seller shall not enter into or modify any Contracts
relating to the operation or maintenance of a Property, except for (i) those
entered into in the ordinary course of business with parties which are not
affiliates of Seller and (A) which are cancelable upon not more than thirty (30)
days prior notice without penalty or premium or (B) which require payments to
the applicable vendor of $2,000 or less per year , or (ii) those otherwise
approved by Buyer, which approval shall not be unreasonably withheld and shall
be deemed given if Buyer should fail to approve or disapprove proposed Contract
matters in writing within three (3) business days following Seller's written
request (which shall include all material information necessary to allow Buyer
to make an informed decision). At Buyer's written request provided at least
three (3) business days prior to the Closing Date, Seller shall deliver notice
of termination on the Closing Date as to any and all Contracts that Buyer
desires to terminate, provided that such termination shall be effective
following any notice or waiting period for such termination described in the
Contract and that Seller shall not be required to bear any termination or
cancellation fee or charge that may be assessed under such Contract based upon
an early termination. Notwithstanding the foregoing, Seller shall terminate all
property management agreements and exclusive leasing agreements applicable to
the Properties as of the Closing Date, at Seller's expense;

                  (d) Following the Due Diligence Expiration Date and until the
end of the Contract Period, Seller will not execute or modify in any material
fashion any Leases or any ground lease, other than with Buyer's prior consent,
which shall be deemed given if Buyer (in the person of William W. Gerrity, the
President of Buyer, or Matthew L. Golden, a Vice President of Buyer) should fail
to approve or disapprove proposed lease matters in writing within five (5)
business days following Seller's written request (which shall include all
material information necessary to allow Buyer to make an informed decision).
Buyer shall exercise its rights of approval of leasing matters reasonably and in
good faith. Seller shall use reasonable efforts to continue to seek leases for
the Properties in a manner consistent with present practice;

                                       15
<PAGE>

                  (e) During the Contract Period, Seller shall not voluntarily
create, consent to or acquiesce in the creation of liens or exceptions to title
without Buyer's prior written consent, provided that Buyer shall not
unreasonably withhold or delay consent to any proposed matters affecting title
necessary to maintain or enhance the value of the pertinent Property;

                  (f) During the Contract Period, Seller shall maintain its
currently effective policies of property insurance and rental loss insurance for
the Improvements;

                  (g) During the Contract Period, Seller shall use commercially
reasonable efforts (but at no material cost to Seller except as may otherwise be
expressly provided in this Agreement) to obtain all third party and governmental
approvals and consents necessary to consummate the transactions contemplated
hereby;

                  (h) During the Contract Period, Seller shall maintain its
books accounts and records in a manner consistent with past practice;

                  (i) During the Contract Period, Seller shall observe and
comply with the material terms and conditions of all Contracts, Leases, Property
licenses, and Property approvals;

                  (j) During the Contract Period, Seller shall not knowingly and
intentionally take any action which would cause the representations and
warranties contained in Section 4.1 (other than as permitted in this Agreement)
to cease to be true and correct in all material respects as of the Closing Date
as though then made and shall promptly notify Buyer of any event, circumstances
or discovery inconsistent therewith;

                  (k) During the Contract Period, Seller shall comply in all
material respects with the Leases and all existing easements, covenants,
conditions, restrictions and other encumbrances affecting any Property;

                  (l) During the Contract Period, Seller shall reasonably
cooperate with Buyer, but at no cost to Seller, to assist Buyer in obtaining
environmental insurance coverage for the Properties (provided, that in no event
shall Buyer have the right to perform any environmental testing in connection
with obtaining such insurance except as otherwise permitted hereunder);

                  (m) During the Contract Period, Seller shall use reasonable
efforts to provide Buyer with copies of any written notices received by Seller
during the Contract Period, which notices relate to matters described in Section
4.1; and

                  (n) During the Contract Period, Seller shall notify Buyer of
any litigation filed against Seller or concerning any of the Properties during
the Contract Period within a reasonable period of time after Seller is made
aware of such litigation and EXHIBIT E shall be revised to include such
litigation.

                  SECTION 4.3       Buyer's Warranties and Representations.

                  Buyer hereby represents and warrants to Seller that the
following are true as of the date of this Agreement:

                                       16
<PAGE>

                  (a) Buyer is a duly formed and validly existing limited
liability company under the law of the state of its formation and is (or on the
Closing Date will be) in good standing under the laws of the states where each
Property is located and Buyer has the full right, authority and power to enter
into this Agreement, to consummate the transactions contemplated herein and to
perform its obligations hereunder and under those documents and instruments to
be executed by it at the Closing, and each of the individuals executing this
Agreement on behalf of Buyer is authorized to do so, and this Agreement
constitutes a valid and legally binding obligation of Buyer enforceable against
Buyer in accordance with its terms.

                  (b) Buyer's execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and the performance of
Buyer's obligations under the instruments required to be delivered by Buyer at
the Closing, do not and will not result in any material violation of, or
material default under, any term or provision of any agreement, instrument,
mortgage, loan agreement or similar document to which Buyer is a party or by
which Buyer is bound.

                  (c) There is no litigation, investigation or proceeding
pending or, to the best knowledge of Buyer's President and Vice Presidents,
contemplated or threatened against Buyer which would impair or adversely affect
Buyer's ability to perform its obligations under this Agreement or any other
instrument or document related hereto.

         SECTION 4.4       SURVIVAL/LIMITATIONS.

                  (a) Subject to subsection (b) below, the parties agree that
Seller's warranties and representations contained in Sections 4.1 of this
Agreement shall survive Buyer's purchase of the Properties and the Closing Date
for a period ending one year following the Closing Date (the "Limitation
Period"). Such termination as of the close of the Limitation Period shall apply
to known as well as unknown breaches of such warranties or representations.
Subject to subsection (b) below, Buyer's waiver and release set forth in Section
2.4 shall apply fully to liabilities under such representations and warranties
not set forth in a Claim Notice as described below. Buyer specifically
acknowledges that such termination of liability represents a material element of
the consideration to Seller.

                  (b) Any claim of Buyer based upon a breach of any
representation or warranty or covenant or a claim under any indemnity contained
in this Agreement or any representation, warranty, covenant or indemnity
contained in any other document or instrument delivered by Seller to Buyer at
Closing (collectively a "Breach") shall be expressed, if at all, in writing
setting forth in reasonable detail the basis and character of the claim (a
"Claim Notice"), and must be delivered to Seller prior to the expiration of the
applicable Limitation Period. Notwithstanding the foregoing, Buyer's right to
make and recover any claim pursuant to a Claim Notice shall be subject to the
following: (i) with respect to a Breach of Seller's representations and
warranties contained in this Agreement or a Breach under an indemnity contained
in the Assignment of Intangibles or the Assignment of Leases (as such terms are
defined in Section 6.1(a) below), Buyer shall not make any claim on account of
such Breach unless and until the aggregate measure of such claims with respect
to the Property exceeds $250,000, in which event Buyer's claims shall be limited
to an amount equal to the amount by which such aggregate claims exceed

                                       17
<PAGE>

such $250,000 threshold, (ii) Seller's aggregate liability for claims arising
out of all Breaches (i.e., those described in clause (i) above as well as all
other Breaches) shall not, in the aggregate, exceed $5,000,000 exclusive of the
amounts of any insurance proceeds actually received by Seller which are to be
applied to Breaches, and (iii) Buyer shall have no right to deliver a Claim
Notice with respect to a Breach of a representation and warranty of Seller
contained in this Agreement to the extent that Buyer had knowledge of such
Breach as of the Closing Date. Notwithstanding anything to the contrary provided
in this Agreement, in no event shall Seller be liable to Buyer for any
consequential or punitive damages based upon any breach of this Agreement,
including breaches of representation or warranty. Subject to applicable
principles of fraudulent conveyance, in no event shall Buyer seek satisfaction
for any obligation from any shareholders, officers, directors, employees,
agents, legal representatives, successors or assigns of such trustees or
beneficiaries, nor shall any such person or entity have any personal liability
for any such obligations of Seller. Provided, however, that the limitations set
forth in this Section 4.6(b) shall not apply in the event of fraud.

                  (c) Seller shall have a period of 30 days within which to cure
a Breach for which a Claim Notice has been received, or, if such Breach cannot
reasonably be cured within 30 days, an additional reasonable time period of up
to an additional 60 days (for a total of 90 days), so long as such cure has been
commenced within such 30 days and is at all times diligently pursued. If the
Breach is not cured after actual written notice and within such cure period,
Buyer's sole remedy shall be an action at law for damages against Seller, which
must be commenced with respect to a Breach of a representation or warranty
contained in this Agreement or a Breach of a covenant contained in Section 4.2
hereof, if at all, within fifteen (15) months after the Closing Date. The
existence or pendency of such cure rights shall not delay the Closing Date. The
provisions of this Section 4.4 shall survive the Closing or any termination of
this Agreement.

         SECTION 4.5 OPERATING RECORDS

         Each party agrees to make available to the other party from time to
time, but not more frequently than quarterly, upon reasonable notice, for a
period of two years following the Closing Date, such party's operating records
for the Properties, to the extent such party has operating records, in order to
permit the requesting party to prepare such historical financial statements for
the Properties as such party requires to satisfy legal or contractual
obligations. The party making its operating records available shall have no
obligation to prepare any operating statements or incur any expense in
connection with the provisions of this Section. Seller shall not be obligated to
retain operating records or make such operating records available to Buyer to
the extent such records have been delivered to Buyer.

         SECTION 4.6 SELLER'S EMPLOYEES.

         During the Contract Period, Buyer shall have the right to discuss with
any officer, director, employee or agent of Seller or any of Seller's affiliates
the possibility of becoming an officer, director, employee or agent of Buyer or
an affiliate of Buyer prior to or after the Closing.

                                       18
<PAGE>

                                   ARTICLE 5
                                DEPOSIT; DEFAULT

         SECTION 5.1 BUYER'S DEFAULT & DEPOSIT. Buyer shall deliver the Deposit
as required under Section 2.2. In the event that this transaction is consummated
as contemplated by this Agreement, then the entire amount of the Deposit,
together with any interest accrued thereon, shall be credited against the
Purchase Price. The entire amount of the Deposit (or the portion of the Deposit
allocable to Properties with respect to which Seller refuses to perform their
material Closing obligations), together with any interest accrued thereon, shall
be returned immediately to Buyer in the event that the transaction fails to
close due to termination of this Agreement pursuant to Section 5.2. BUYER
ACKNOWLEDGES THAT THE CLOSING OF THE SALE OF THE PROPERTIES TO BUYER, ON THE
TERMS AND CONDITIONS AND WITHIN THE TIME PERIOD SET FORTH IN THIS AGREEMENT, IS
MATERIAL TO SELLER. BUYER ALSO ACKNOWLEDGES THAT SUBSTANTIAL DAMAGES WILL BE
SUFFERED BY SELLER IF SUCH TRANSACTION IS NOT SO CONSUMMATED DUE TO BUYER'S
DEFAULT UNDER THIS AGREEMENT. BUYER FURTHER ACKNOWLEDGES THAT, AS OF THE DATE OF
THIS AGREEMENT, SELLER'S DAMAGES WOULD BE EXTREMELY DIFFICULT OR IMPOSSIBLE TO
COMPUTE IN LIGHT OF THE UNPREDICTABLE STATE OF THE ECONOMY AND OF GOVERNMENTAL
REGULATIONS, THE FLUCTUATING MARKET FOR REAL ESTATE AND REAL ESTATE LOANS OF ALL
TYPES, AND OTHER FACTORS WHICH DIRECTLY AFFECT THE VALUE AND MARKETABILITY OF
THE PROPERTIES. IN LIGHT OF THE FOREGOING AND ALL OF THE OTHER FACTS AND
CIRCUMSTANCES SURROUNDING THIS TRANSACTION, AND FOLLOWING NEGOTIATIONS BETWEEN
THE PARTIES, BUYER AND SELLER AGREE THAT THE AMOUNT OF THE DEPOSIT REPRESENTS A
REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER WOULD SUFFER BY REASON OF
BUYER'S DEFAULT HEREUNDER. ACCORDINGLY, BUYER AND SELLER HEREBY AGREE THAT, IN
THE EVENT OF SUCH DEFAULT BY BUYER UNDER THIS AGREEMENT, SELLER MAY TERMINATE
THIS AGREEMENT BY GIVING NOTICE TO BUYER AND TITLE COMPANY. IN THE EVENT OF SUCH
TERMINATION, SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES IN LIEU OF
ANY OTHER CLAIM SELLER MAY HAVE AT LAW OR IN EQUITY (INCLUDING, WITHOUT
LIMITATION, SPECIFIC PERFORMANCE) ARISING BY REASON OF BUYER'S DEFAULT. THE
PARTIES HAVE INITIALED THIS SECTION 5.1 TO ESTABLISH THEIR INTENT SO TO
LIQUIDATE DAMAGES.

Seller's                            Buyer's
Initials: _________________         Initials: ___________________

This Section 5.1 is intended only to liquidate and limit Seller's rights to
damages arising due to Buyer's failure to purchase the Properties and shall not
limit the indemnification or other obligations of Buyer pursuant to (A) any
other documents delivered pursuant to this Agreement or (B) Sections 2.4(b),
2.4(e), 7.2, and 7.8 of this Agreement.

                                       19
<PAGE>

         SECTION 5.2 SELLER'S DEFAULT. If (a) the conditions precedent set forth
in Section 3.1(b) shall have been satisfied or waived and (b) Seller shall
refuse to perform its material closing obligations under this Agreement (e.g.,
by refusing to convey the Properties to Buyer at Closing), then Buyer's sole and
exclusive remedy shall be either (i) to receive (a) a return of the Deposit in
the event Seller refuses to perform its material closing obligations with
respect to the Properties plus all accrued interest and (b) reimbursement of
Buyer's out-of-pocket expenses incurred from and after September 1, 2000 in
connection with this transaction in an amount not to exceed One Million Five
Hundred Thousand and 00/100 Dollars ($1,500,000.00) or (ii) to pursue an action
for specific performance, provided, that notwithstanding anything to the
contrary contained herein, Buyer's right to pursue an action for specific
performance is expressly conditioned on Buyer not being in default hereunder.
Nothing contained in this Section 5.2 is intended to limit Buyer's rights under
Sections 3.3, 7.2, and 7.8 of this Agreement.

                                   ARTICLE 6
                                    CLOSING

         SECTION 6.1 ESCROW ARRANGEMENTS. Escrow for the purchase and sale
contemplated by this Agreement shall be opened by Buyer and Seller with Title
Company. At least one business day prior to the Closing Date, Seller and Buyer
shall each deliver escrow instructions to Title Company consistent with this
Article 6, and designating Title Company as the "Reporting Person" for the
transaction pursuant to Section 6045(e) of the Code. By signing below, Title
Company agrees to act as the "Reporting Person" for the transaction pursuant to
Section 6045(e) of the Code and to complete and file with the IRS Forms 1099-S
(and furnish Buyer and Seller with copies thereof) on or before the due date
therefor. In addition, the parties shall deposit in escrow, at least one
business day prior to the Closing Date (unless otherwise provided below in this
Section 6.1) the funds and documents described below:

                  (a)      Seller shall deposit (or cause to be deposited):

                           (i)      a duly executed and acknowledged deed
                                    pertaining to the Real Property portion of
                                    each of the Properties, each in the form
                                    attached to this Agreement as EXHIBIT D-1
                                    (collectively, the "Deeds");

                           (ii)     a duly executed bill of sale pertaining to
                                    the Personal Property portion of each of the
                                    Properties, each in the form attached to
                                    this Agreement as EXHIBIT D-2 (collectively,
                                    the "Bills of Sale");

                           (iii)    a duly executed counterpart assignment and
                                    assumption pertaining to the Intangible
                                    Property portion of each of the Properties,
                                    each in the form attached to this Agreement
                                    as EXHIBIT D-3 (collectively, the
                                    "Assignments of Intangibles");

                           (iv)     a duly executed counterpart assignment and
                                    assumption pertaining to the Leases, each in
                                    the form attached to this Agreement as
                                    EXHIBIT D-4 (collectively, the "Assignments
                                    of Leases");

                                       20
<PAGE>

                           (v)      a certificate from Seller certifying the
                                    information required by any of the states in
                                    which any of the Properties are located to
                                    establish that the transaction contemplated
                                    by this Agreement is exempt from the tax
                                    withholding requirements of such states (the
                                    "State Certificates");

                           (vi)     a certificate from Seller certifying the
                                    information required by 1445 of the Code to
                                    establish, for the purposes of avoiding
                                    Buyer's tax withholding obligations, that
                                    Seller is not a "foreign person" as defined
                                    in 1445(f)(3) of the Code (the "FIRPTA
                                    Certificate");

                           (vii)    a letter executed by Seller and, if
                                    applicable, its management agent and the
                                    Buyer, in form and substance satisfactory to
                                    Buyer, addressed to all tenants of each
                                    respective Property, notifying all such
                                    tenants of the transfer of ownership of the
                                    Property and directing payment of all rents
                                    accruing after the Closing Date to be made
                                    to Buyer or such other party as Buyer
                                    directs (the "Tenant Notices");

                           (viii)   to the extent not previously delivered to
                                    Buyer and in Buyer's possession or under its
                                    control, originals of any of the Contracts,
                                    Leases, licenses, approvals, plans,
                                    specifications, warranties, other Intangible
                                    Property and other books and records
                                    relating to the ownership and operation of
                                    the Property (or if the original is not in
                                    the Seller's possession or control, copies
                                    thereof to the extent in Seller's possession
                                    or control);

                           (ix)     an updated Rent Roll for each Property in
                                    the same format as was used for the Rent
                                    Rolls attached hereto as EXHIBIT C-1 or in
                                    such other format as is reasonably
                                    acceptable to Buyer dated no later than five
                                    (5) days prior to Closing;

                           (x)      subject to the provisions of Section 2.5,
                                    such affidavits as may be reasonably and
                                    customarily required by the Title Company to
                                    issue the Buyer's Title Policies in the form
                                    required hereby (including, without
                                    limitation, without exception for
                                    parties-in-possession (other than tenants
                                    under the Leases) or mechanics' or
                                    materialmen's liens which are to be
                                    satisfied by Seller pursuant to Section 2.5)
                                    together with such other documents
                                    reasonably required by the Title Company for
                                    Seller to comply with the obligations under
                                    Section 2.5;

                           (xi)     evidence reasonably satisfactory to the
                                    Title Company as to the legal existence and
                                    authority of the Seller and the authority
                                    and incumbency of the persons signing
                                    documents on behalf of the Seller;

                                       21
<PAGE>

                           (xii)    duly executed documentation required by the
                                    Lender and acceptable to Seller evidencing
                                    the assignment and assumption by the Buyer
                                    of the Note and other Loan Documents and the
                                    release of Seller and its affiliates from
                                    all obligations under the Note and Loan
                                    Documents (the "Loan Assignment and Release
                                    Documents"); and

                           (xiii)   such other documents and instruments as may
                                    be required by any other provision of this
                                    Agreement or as may reasonably be required
                                    by Title Company or otherwise to carry out
                                    the terms and intent of this Agreement.

In addition, Seller shall deliver to Buyer on the Closing Date, outside of
escrow, to the extent in Seller's possession or control, the originals of all
Leases, Contracts and tenant files and all keys to the Properties.

                  (b)      Buyer shall deposit:

                           (i)      on the Closing Date, immediately available
                                    funds sufficient to pay the balance of the
                                    Consideration, plus sufficient additional
                                    cash to pay Buyer's share of all escrow
                                    costs and closing expenses;

                           (ii)     a duly executed counterpart for each of the
                                    Assignments of Intangibles, the Loan
                                    Assignment and Release Documents,
                                    Assignments of Leases (and Tenant Notices
                                    where required);

                           (iii)    a certificate duly executed by Buyer in
                                    favor of Seller confirming the waivers and
                                    acknowledgments set forth in Sections 2.5
                                    and 4.4 above;

                           (iv)     evidence reasonably satisfactory to Title
                                    Company as to the legal existence and
                                    authority of the Buyer and the authority and
                                    incumbency of the persons signing documents
                                    on behalf of the Buyer; and.

                           (v)      Such other documents and instruments as may
                                    be required by any other provision of this
                                    Agreement or as may reasonably be required
                                    by Title Company or otherwise to carry out
                                    the terms and intent of this Agreement.

         SECTION 6.2       TITLE.  Title Company shall close escrow on the
Closing Date by:

                  (a)      recording the Deeds;

                  (b) issuing the Buyer's Title Policies to Buyer pursuant to
Section 3.1(a)(i) above;

                                       22
<PAGE>

                  (c) delivering to Buyer originals of the Bills of Sale, the
FIRPTA Certificate, the State Certificates, executed counterparts of each of the
Assignments of Intangibles, Assignments of Leases, the Loan Assignment and
Release Documents, and all of the other documents in escrow under Section
6.1(a);

                  (d) delivering to Seller (i) a counterpart for each of the
Assignments of Intangibles, the Assignments of Leases and the Loan Assignment
and Release Documents executed by Buyer, (ii) the certificate described in
Section 6.1(b)(iii) above, and (iii) funds in the amount of the Purchase Price,
less the deemed amount for the assumption of the Loan equal to One Hundred
Thirty Eight Million Dollars ($138,000,000.00), as adjusted for credits,
adjustments, prorations and closing costs in accordance with this Article 6 and
as allocated pursuant to the direction of the Seller (upon which allocation
Buyer and Title Company shall have the right to conclusively rely); and

                  (e) if directed by the parties, delivering the Tenant Notices
to the tenants by certified mail, return receipt requested.

         SECTION 6.3       PRORATIONS.

                  (a) Taxes. Real estate taxes, personal property taxes and any
general or special assessments with respect to the Properties which are not the
direct payment obligation of tenants pursuant to the Leases (as opposed to a
reimbursement obligation) shall be prorated as of the Closing Date -- to the end
that Seller shall be responsible for all taxes and assessments that are
allocable to any period prior to the Closing Date and Buyer shall be responsible
for all taxes and assessments that are allocable to any period from and after
the Closing Date. To the extent any real or personal property taxes subject to
apportionment in accordance with the foregoing are, as of the Closing Date, the
subject of any appeal filed by or on behalf of Seller, then notwithstanding
anything to the contrary contained in this subparagraph, (i) no apportionment of
the taxes being appealed shall occur at the closing, but instead such
apportionment shall be deferred until the outcome of the appeal is final and the
amount of taxes owing becomes fixed at which time Seller shall be responsible
for all such taxes that are allocable to any period prior to the Closing Date
and Buyer shall be responsible for all such taxes that are allocable to any
period from and after the Closing Date, and (ii) Seller shall provide Buyer with
adequate security, either in the form of a bond or by escrowing the amounts
being appealed, to assure Buyer that Seller's portion of such tax liability,
including any penalty, will be available. To the extent any taxes which are the
subject of an appeal have been paid by Seller under protest and the appeal
results in Buyer receiving a credit toward future tax liability or a refund,
then Buyer shall, within thirty (30) days following receipt of such refund or
notice of such credit, pay to Seller the full amount of such refund or credit
allocable to the period prior to the Closing Date, excluding, however, any
portion of such refund or credit that is required to be passed through to the
tenants pursuant to any Leases or to other parties by contract (existing on the
Closing Date).

                  (b) Prepaid Expenses. Buyer shall be charged for those prepaid
expenses paid by Seller allocable to any period from and after the Closing Date,
including, without limitation, annual permit and confirmation fees, fees for
licenses and all security or other deposits paid by

                                       23
<PAGE>

Seller to third parties which Buyer elects to assume and to which Buyer then
shall be entitled to the benefits and refund following the Closing Date.

                  (c) Property Income and Expense. The following prorations and
adjustments shall occur as of the Closing. Prior to the Closing Date, Seller
shall provide all information to Buyer required to calculate such prorations and
adjustments and representatives of Buyer and Seller shall together make such
calculations:

                       (i) General. Subject to the specific provisions of
                           clauses (ii), (iii) and (iv) below, income and
                           expense shall be prorated on the basis of a 30-day
                           month and on a cash basis (except for items of income
                           and expense that are payable less frequently than
                           monthly, which shall be prorated on an accrual
                           basis). All such items attributable to the period
                           prior to the Closing Date shall be allocated to
                           Seller; all such items attributable to the period on
                           and following the Closing Date shall be allocated to
                           Buyer. Buyer shall be credited in escrow with (a) any
                           portion of rental agreement or lease deposits which
                           are refundable to the tenants and have not been
                           applied to outstanding tenant obligations in
                           accordance with the terms of the applicable Lease and
                           (b) rent prepaid beyond the Closing Date. Seller
                           shall transfer Seller's entire interest in any
                           letters of credit or certificates of deposit held by
                           Seller as the deposits described in clause (a) above
                           and shall diligently cooperate with Buyer in
                           obtaining any reissuance or confirmation of the
                           effect of the transfer of such instruments. Buyer
                           shall not be entitled to any interest on rental
                           agreement or lease deposits or prepaid rent accrued
                           on or before the Closing Date, except to the extent
                           any such amount of interest is refundable or payable
                           to any tenant under a Lease or applicable law. Seller
                           shall be credited in escrow with any refundable
                           deposits or bonds held by any utility, governmental
                           agency or service contractor, to the extent such
                           deposits or bonds are assigned to Buyer on the
                           Closing Date.

                      (ii) Leasing Costs. Buyer shall be credited in escrow
                           with any leasing commissions, tenant improvements or
                           other allowances to be paid by Buyer on or after the
                           Closing Date with respect to the current term of any
                           Lease or Lease modification executed, or any
                           extension term or expansion of premises exercised, in
                           each case, shown on the Rent Rolls attached hereto as
                           EXHIBIT C-1, and Seller shall pay on or before the
                           Closing Date all such items payable prior to the
                           Closing Date. Seller shall be credited in escrow with
                           an amount equal to (A) the amount of any leasing
                           commissions, tenant improvements and other allowances
                           paid by Seller after the Effective Date to the extent
                           such items relate to new Leases or Lease
                           modifications executed or extensions of terms or
                           expansions of premises that are not shown on the Rent
                           Rolls attached hereto as

                                       24
<PAGE>

                           EXHIBIT C-1 and permitted under the terms of this
                           Agreement, multiplied by (B) a fraction in which the
                           numerator is the number of months or partial months
                           of the stabilized term (i.e., the term following the
                           tenant's entry into occupancy and commencement of
                           unabated rental obligations) of any such Lease
                           following the Closing Date and the denominator is the
                           number of months or partial months in the stabilized
                           term of such Lease. Buyer shall assume all
                           obligations for any leasing commissions, tenant
                           improvement or other allowances payable following the
                           Closing Date with respect to Leases or Lease
                           modifications executed or extensions of terms or
                           expansions of premises that are not shown on the Rent
                           Rolls attached hereto as EXHIBIT C-1 and which are
                           permitted under the terms of this Agreement. Any
                           expenditures or commitments to expenditures relating
                           to Leases or modifications or extensions of terms or
                           expansions of premises, in excess of the amounts
                           budgeted and approved as part of Buyer's approval of
                           the Lease (where such approval is required) shall be
                           subject to Buyer's specific approval, which shall not
                           be unreasonably withheld and shall be deemed given if
                           Buyer should fail to approve or disapprove such
                           excess expenditure within five (5) business days
                           following Seller's written request and delivery of
                           material information reasonably necessary to allow
                           Buyer to make an informed decision.

                     (iii) Rents. Rents payable by tenants under the
                           Leases, shall be prorated as and when collected
                           (whether such collection occurs prior to, on, or
                           after the Closing Date). Buyer shall receive a credit
                           for the amounts actually received before the Closing
                           Date and which pertain to any period after the
                           Closing Date. Buyer shall not receive a credit at the
                           Closing for any rents for the month in which the
                           Closing occurs which are in arrears and have not then
                           been received. As to any tenants who are delinquent
                           in the payment of rent on the Closing Date, Buyer
                           shall use reasonable efforts (but shall not be
                           required to commence legal action or terminate or
                           evict a tenant) to collect or cause to be collected
                           such delinquent rents following the Closing Date. Any
                           and all rents so collected by either party following
                           the Closing (less a deduction for all reasonable
                           collection costs and expenses incurred by the
                           collecting party) shall be successively applied
                           (after deduction for Buyer's reasonable collection
                           costs) to the payment of (x) rent due and payable in
                           the month in which the Closing occurs, (y) rent due
                           and payable in the months succeeding the month in
                           which the Closing occurs (through and including the
                           month in which payment is made) and (z) rent due and
                           payable in the months preceding the month in which
                           the Closing occurs. If all or part of any rents or

                                       25
<PAGE>

                           other charges received by Buyer following the Closing
                           are allocable to Seller pursuant to the foregoing
                           sentence, then such sums shall be promptly paid to
                           Seller; if all or part of any rents or other charges
                           received by Seller following the Closing are
                           allocable to Buyer pursuant to the foregoing
                           sentence, then such sums shall be promptly paid to
                           Buyer. Seller reserves the right to pursue any
                           damages remedy Seller may have against any tenant
                           with respect to such delinquent rents, but shall have
                           no right to exercise any other remedy under the Lease
                           (including, without limitation, termination or
                           eviction).

                      (iv) Additional Rents. Any percentage rent,
                           escalation charges for real estate taxes, parking
                           charges, operating and maintenance expenses,
                           escalation rents or charges, electricity charges,
                           cost of living increases or any other charges of a
                           similar nature other than fixed or base rent under
                           the Leases (collectively, the "Additional Rents")
                           shall be prorated as of the Closing Date between
                           Buyer and Seller on or before the date which is
                           ninety (90) days following the end of the calendar
                           year in which the Closing occurs based on the actual
                           number of days of the year and month which shall have
                           elapsed as of the Closing Date. Prior to Closing
                           occurs, Seller shall provide Buyer on an estimated
                           basis with information regarding Additional Rents
                           which were received by Seller prior to Closing and
                           the amount of reimbursable expenses paid by Seller
                           prior to Closing. If Seller's collections of such
                           amounts is in excess of the amounts actually paid by
                           Seller for such items for the period prior to
                           Closing, then Buyer shall receive a credit at Closing
                           for the excess amounts collected. Buyer shall apply
                           all such excess amounts to the charges owed by Buyer
                           for such items for the period after the Closing and,
                           if required by the Leases, shall rebate or credit the
                           tenants with any remainder. If it is determined that
                           the amount collected during Seller's ownership period
                           was less than the amounts actually paid by Seller for
                           such items for the period prior to the Closing, then
                           the collection and remitting of such amounts shall be
                           governed by the provisions of subsection (iii) above
                           regarding the post-closing application of rents. On
                           or before the date which is sixty (60) days following
                           the end of the calendar year in which the Closing
                           occurs, Buyer shall deliver to Seller a
                           reconciliation of all expenses reimbursable by
                           tenants under the Leases, and the amount of
                           Additional Rents received by Seller and Buyer
                           relating thereto (the "Reconciliation"). Upon
                           reasonable notice and during normal business hours,
                           each party shall make available to the other all
                           information reasonably required to confirm the
                           Reconciliation. In the event of any overpayment of
                           Additional Rents by the tenants to Seller, Seller
                           shall promptly, but

                                       26
<PAGE>

                           in no event later than fifteen (15) days after
                           receipt of the Reconciliation, pay to Buyer the
                           amount of such overpayment and Buyer, as the landlord
                           under the particular Leases, shall pay or credit to
                           each applicable tenant the amount of such
                           overpayment. In the event of an underpayment of
                           Additional Rents by the tenants to Seller, Buyer
                           shall pay to Seller the amount of such underpayment
                           within fifteen (15) days following Buyer's receipt of
                           any such amounts from the tenants.

                  (d) Adjustments to Prorations. Subject to Section 6.3(a) and
6.3(c)(iv) above, after the Closing, the parties shall from time to time, as
soon as is practicable after accurate information becomes available and in any
event within one (1) year following the Closing Date, recalculate and
reapportion any of the items subject to proration or apportionment (i) which
were not prorated and apportioned at the Closing because of the unavailability
of the information necessary to compute such proration, or (ii) which were
prorated or apportioned at the Closing based upon estimated or incomplete
information, or (iii) for which any errors or omissions in computing prorations
at the Closing are discovered subsequent thereto, and thereafter the proper
party shall be reimbursed based on the results of such recalculation and
reapportionment. Unless otherwise specified herein, all such reimbursements
shall be made on or before thirty (30) days after receipt of notice of the
amount due. Any such reimbursements not timely paid shall bear interest at a per
annum rate equal to ten percent (10%) from the due date until all such unpaid
sums together with all interest accrued thereon is paid if payment is not made
within ten (10) days after receipt of a bill therefor.

                  (e) Prior Year's Reconciliation. If the Closing occurs before
Seller has performed the annual reconciliation of Additional Rent for the
calendar year immediately preceding the calendar year in which the Closing
occurs, then Seller shall, as soon as practicable after Closing, perform such
reconciliation at its sole cost and expense. Upon completion of such annual
reconciliation, Seller shall immediately deliver to Buyer a detailed description
of any Additional Rent which are payable by or reimbursable to any present
tenant (the "Prior Year Reconciliation"). The Prior Year Reconciliation shall be
accompanied by all applicable back-up documentation, together with Seller's
check for such Additional Rent which is reimbursable to a tenant. Based upon
Seller's calculations, Buyer shall send customary statements for reimbursement
of Additional Rent to tenants under the Leases based on the Prior Year
Reconciliation, and shall remit to Seller within thirty (30) days of receipt,
all sums so collected. If Seller's calculations show that Additional Rent has
been overpaid by any present tenant and Seller has submitted its check to Buyer
for such amounts, Buyer shall refund such Additional Rent to such tenant.

                  (f) Survival. The provisions of this Section 6.3 shall survive
the Closing.

         SECTION 6.4       OTHER CLOSING COSTS.

                  (a) Payment of the premium for the issuance of the Buyer's
Title Policies (other than that portion of the premium for obtaining an ALTA,
rather than a CLTA, owner's policy of title insurance and the premium for any
endorsements to Buyer's Title Pollicies) in the

                                       27
<PAGE>

amount of the Purchase Price shall be paid by Buyer or Seller according to
custom as set forth in EXHIBIT G. Buyer shall pay the additional premium for
obtain an ALTA , rather than a CLTA, owner's policy of title insurance and the
premium for the issuance of any endorsements to Buyer's Title Policies. Seller
shall pay all county documentary transfer or transaction taxes or fees due on
the transfer of the Properties. All other Closing costs, except as otherwise
provided below, shall be paid by Seller and Buyer according to custom in the
county in which the applicable Property is located as set forth on EXHIBIT G
attached hereto.

                  (b) Seller shall pay 50% of any escrow or other costs charged
by or reimbursable to the Title Company.

                  (c) Buyer shall pay 50% of any escrow or other costs charged
by or reimbursable to the Title Company.

         SECTION 6.5 FURTHER DOCUMENTATION. At or following the close of escrow,
Buyer and Seller shall execute any certificate, memoranda, assignment or other
instruments required by this Agreement, law or local custom or otherwise
reasonably requested by the other party to effect the transactions contemplated
by this Agreement and shall take such other actions (but at no material cost or
expense) as are reasonably requested by the other party to effect the
transactions contemplated by this Agreement.

                                   ARTICLE 7
                                 MISCELLANEOUS

         SECTION 7.1 DAMAGE OR DESTRUCTION. If at any time prior to the Closing,
Seller determines that any of the Properties has been destroyed or damaged by
earthquake, flood or other casualty and that such damage will require more than
$750,000 for any one Property or more than $2,000,000 in the aggregate for all
Properties, (a "Casualty"), or if a proceeding is instituted for the taking of
all or any material portion of any of the Properties under the power of eminent
domain (a "Taking"), then Buyer shall have the right by giving written notice to
Seller and Title Company within fifteen (15) days after the date of receipt of
written notice of any such Casualty or Taking, either to: (i) consummate the
purchase of all of the Properties in accordance with this Agreement, in which
event Seller shall assign to Buyer at the Closing (A) any insurance proceeds
payable to Seller on account of such Casualty (excluding rental income insurance
proceeds allocable to the period prior to Closing) or (B) any award payable to
Seller by reason of the Taking (excluding any award for a temporary taking to
the extent allocable to the period prior to Closing), as the case may be; or
(ii) terminate this Agreement effective as of the date such notice of
termination is given. If Buyer fails to give such notice within such 15-day
period, then Buyer shall be deemed to have elected to terminate this Agreement
pursuant to this Section 7.1. The Closing Date shall be deferred, if necessary,
to permit Buyer to have the 15-day period following receipt of notice of a
Casualty or a Taking to make the election specified hereinabove. If Buyer
terminates this Agreement pursuant to this Section 7.1, then the Deposit shall
be returned to Buyer, and neither Seller nor Buyer shall have any further
obligations under this Agreement, except Buyer's obligation to perform those
obligations set forth in Sections 2.4(b),

                                       28
<PAGE>

2.4(e), 7.2, and 7.8 of this Agreement. Nothing herein shall be deemed to
constitute an obligation on the part of Seller to carry or maintain any
insurance of any kind whatsoever pertaining to the Property.

         SECTION 7.2 FEES & COMMISSIONS. Each party to this Agreement warrants
to the other that no person or entity can properly claim a right to a real
estate or investment banker's commission, finder's fee, acquisition fee or other
brokerage-type compensation (collectively, "Real Estate Compensation") based
upon the acts of that party with respect to the transaction contemplated by this
Agreement. Each party hereby agrees to indemnify and defend the other against
and to hold the other harmless from any and all loss, cost, liability or expense
(including but not limited to attorneys' fees and returned commissions)
resulting from any claim for Real Estate Compensation by any person or entity
based upon such acts.

         SECTION 7.3 SUCCESSORS AND ASSIGNS. Buyer may not assign any of Buyer's
rights or duties hereunder without the prior written consent of Seller, which
may be withheld in Seller's sole discretion; provided, however, that Buyer shall
have the right to assign all or a portion of its rights hereunder to an entity
which is at least majority owned, directly or indirectly, by Buyer, without the
prior consent of Seller, except that any such assignment to such an affiliate of
Buyer shall not relieve Buyer of any of its obligations under this Agreement.

         SECTION 7.4 NOTICES. Any notice, consent or approval (or request for
consent or approval) required or permitted to be given under this Agreement
shall be in writing and shall be given or requested by (i) hand delivery, (ii)
Federal Express or another reliable overnight courier service, (iii) facsimile
telecopy, or (iv) United States mail, registered or certified mail, postage
prepaid, return receipt required, and addressed as follows:

To Seller:

         Burnham Pacific Properties, Inc.
         100 Bush Street, Suite 2400
         San Francisco, California 94104
         Attn: Scott C. Verges
         Fax No.:  (415) 352-1711

With a copy at the same time to:

         Burnham Pacific Properties
         110 West A Street, Suite 900
         San Diego, California  92101
         Attn:  John A. Waters
         Fax No.: (619) 652-4710

                                       29
<PAGE>

With a copy at the same time to:

         MBV Law LLP
         101 Vallejo Street
         San Francisco, California  94111
         Attention:  Danna Kozerski
         Fax No.:  (415) 433-6563

To Buyer:

         GMS Realty, LLC
         5973 Avenida Encinas, Suite 300
         Carlsbad, California 92008
         Attn: Matthew L. Golden
         Fax No:  (760) 804-8602

With a copy at the same time to:

         Stipanov & Mebane, A Professional Law Corporation
         501 West Broadway, Suite 520
         San Diego, California 92101
         Attn:    Kenneth J. Stipanov, Esq.
         Fax No.:  (619) 235-2692

Any such notice, consent or approval (or request for consent or approval) shall
be deemed given or requested (i) if given by hand delivery, upon such hand
delivery, (ii) one (1) business day after being deposited with Federal Express
or another reliable overnight courier service, (iii) if sent by facsimile, the
day the facsimile is successfully transmitted, or (iv) if sent by registered or
certified mail, three (3) business days after being deposited in the United
States mail. Any address or name specified above may be changed by notice given
to the addressee by the other party in accordance with this Section 7.4. The
inability to deliver because of a changed address of which no notice was given,
or rejection or other refusal to accept any notice, shall be deemed to be the
receipt of the notice as of the date of such inability to deliver or rejection
or refusal to accept. Any notice to be given by any party hereto may be given by
the counsel for such party.

         SECTION 7.5 ENTIRE AGREEMENT. Excepting this Agreement and the attached
exhibits, which are by this reference incorporated herein, and all documents in
the nature of such exhibits, when executed, contain the entire understanding of
the parties and supersede any and all other written or oral understanding.

         SECTION 7.6 TIME. Time is of the essence of every provision contained
in this Agreement.

                                       30
<PAGE>

         SECTION 7.7 INCORPORATION BY REFERENCE. All of the exhibits attached to
this Agreement or referred to herein and all documents in the nature of such
exhibits, when executed, are by this reference incorporated in and made a part
of this Agreement.

         SECTION 7.8 ATTORNEYS' FEES. In the event any dispute between Buyer and
should result in litigation, the prevailing party shall be reimbursed for all
reasonable costs incurred in connection with such litigation or arbitration,
including, without limitation, reasonable attorneys' fees and costs, and the
cost of experts. For purposes of this Agreement, the terms "attorneys' fees" and
"attorneys' costs" shall include the fees and expenses of counsel to the
prevailing party, which may include printing, photocopying, duplicating and
other expenses, air freight charges and fees billed for law clerks, paralegals
and other persons not admitted to the bar but performing services under the
supervision of an attorney

         SECTION 7.9 CONSTRUCTION. The parties acknowledge that each party and
its counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
any amendments or exhibits hereto.

         SECTION 7.10 GOVERNING LAW. This Agreement shall be construed and
interpreted in accordance with and shall be governed and enforced in all
respects according to the laws of the State of California (without giving effect
to conflicts of laws principles).

         SECTION 7.11 CONFIDENTIALITY. Following the full execution of this
Agreement and Buyer's delivery of the Deposit to Title Company, the parties
shall issue a joint press release with respect to this transaction, which press
release shall be in a form approved by Seller and Buyer. Buyer also consents to
the disclosure of the terms and conditions set forth in this Agreement in BPPI's
Proxy Statement.

         SECTION 7.12 COUNTERPARTS. This Agreement may be executed in one or
more counterparts. All counterparts so executed shall constitute one contract,
binding on all parties, even though all parties are not signatory to the same
counterpart.

         SECTION 7.13 REPRESENTATIVE. Buyer shall be entitled to rely upon any
notice, approval or decision expressed by Scott C. Verges or Daniel Platt acting
alone on behalf Seller. Seller shall be entitled to rely upon any notice,
approval or decision expressed by William W. Gerrity or Matthew L. Golden acting
alone or on behalf of Buyer.

         SECTION 7.14      STATE SPECIFIC PROVISIONS.

                  (a) Buyer is hereby apprised of and shall determine whether
any Real Property is located within the coastal zone under the California
Coastal Act.

                  (b) Buyer is hereby apprised of and shall determine whether
any Real Property is located within a special studies zone under the
Alquist-Priolo Geologic Hazard Act.

                  (c) To the extent required by law, Seller and Buyer agree to
provide a Real Estate Transfer Disclosure Statement.

                                       31
<PAGE>

                  (d) Seller shall provide Buyer with a form California 590-RE.

                  (e) Buyer and Seller acknowledge that Seller is required to
disclose if the Property lies within the following natural hazard areas or
zones: (1) a special flood hazard area designated by the Federal Emergency
Management Agency (Cal. Civ. Code ? 1102.17); (2) an area of potential flooding
(Cal. Gov. Code ? 8589.4); (3) a very high fire hazard severity zone (Cal. Gov.
Code ? 51183.5); (4) a wild land area that may contain substantial forest fire
risks and hazards (Pub. Resources Code ? 4136); (5) an earthquake fault zone
(Pub. Resources Code ? 2621.9); or (6) a seismic hazard zone (Pub. Resources
Code ? 2694). Buyer and Seller acknowledge that they have employed the services
of either Vista Information Solutions, Inc. or Environmental Data Resources,
Inc. (which, in such capacity is herein called "Natural Hazard Expert") to
examine the maps and other information specifically made available to the public
by government agencies for the purpose of enabling each of Seller to fulfill its
disclosure obligations with respect to the natural hazards referred to in
California Civil Code Section 1102.6c(a) and to report the result of its
examination to Buyer and Seller in writing. The written report prepared by the
Natural Hazard Expert regarding the results of its examination fully and
completely discharges Seller from their disclosure obligations referred to
herein, and, for the purpose of this Agreement, the provisions of Civil Code
Section 1102.4 regarding the non-liability of Seller for errors or omissions not
within its personal knowledge shall be deemed to apply and the Natural Hazard
Expert shall be deemed to be an expert, dealing with matters within the scope of
its expertise with respect to the examination and written report regarding the
natural hazards referred to above. In no event shall Seller have any
responsibility for matters not actually known to Seller.

         SECTION 7.15      CALCULATION OF TIME PERIODS.

         The term "business days" when used in this Agreement means all days
excluding Saturdays, Sundays, and any state or national holidays (including the
optional bank holidays listed in California Civil Code Section 7.1). All periods
of time referred to in this Agreement shall include all Saturdays, Sundays and
state and national holidays unless the period of time specifies business days.
In the computation of any period of time provided for in this Agreement or by
law, the day of the actor event from which said period of time runs shall be
excluded, and the last day of such period shall be included, unless it is not a
business day, in which case the period shall be deemed to run until the end of
the next business day.

[NO FURTHER TEXT ON THIS PAGE; SIGNATURES FOLLOW ON NEXT PAGE]

                                       32
<PAGE>

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

SELLER:

BPP/GOLDEN STATE ACQUISITIONS, L.L.C.,
a Delaware limited liability company

By:      Burnham Pacific Operating Partnership, L.P.,
         a Delaware limited partnership
Its:     Managing Member

         By:      Burnham Pacific Properties, Inc.,
                  a Maryland corporation
                  Its:  General Partner

                  By:   /s/ Scott C. Verges
                       -------------------------
                  Its:  President
                       -------------------------

BUYER:

GMS REALTY, LLC,
a Delaware limited liability company

By:   /s/ Karen A. Sztraicher
     -------------------------
Its:  Chief Financial Officer
     -------------------------

The undersigned party is joining this Agreement solely for the purpose of
acknowledging and agreeing to the provisions of Article V hereof and any other
provisions of this Agreement expressly applicable to Title Company.

CHICAGO TITLE COMPANY

By:  ____________________________
Name:  __________________________
Title:  ___________________________

                                       33

<PAGE>

                                   EXHIBIT A

                                   PROPERTIES

580 Marketplace
Castro Valley, CA

Arcade Square
Sacramento, CA

Buena Vista Marketplace
Duarte, CA

Centerwood Plaza
Bellflower, CA

Creekside Shopping Center
Vacaville, CA

Discovery Plaza
Sacramento, CA

Fremont Gateway Plaza
Fremont, CA

Hallmark Town Center
Madera, CA

Menifee Town Center
Menifee, CA

Prospector's Plaza
Placerville, CA

Ralph's Center
Redondo Beach, CA

San Marcos Lucky Plaza
San Marcos, CA

Shasta Crossroads
Redding, CA

Silver Creek Plaza
San Jose, CA

Southampton Center
Benecia, CA

<PAGE>

Stony Pont Plaza
Santa Rosa, CA

Summerhills Shopping Center
Sacramento, CA

Sunset Center
Suisun City, CA

Westminster Center
Westminster, CA

<PAGE>

                                   EXHIBIT B

                     DISCLOSURE MATERIALS LIST & STATEMENT

<PAGE>

                                   EXHIBIT C

                                   RENT ROLLS

<PAGE>

                                   EXHIBIT D

                            TRANSFER DOCUMENT FORMS

<PAGE>

                                  EXHIBIT D-1

                                   GRANT DEED

Recorded at the Request of and
When Recorded, Return and
Mail Tax Statements to:

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

                                   GRANT DEED

         For valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, ____________________ ("Grantor") hereby grants to
___________________________________ ("Grantee") that certain real property
located in _________________, California, more particularly described in Exhibit
A attached hereto and incorporated herein by this reference ("Property").

         The conveyance by Grantor to Grantee pursuant to this Grant Deed is
subject to: (i) a lien securing payment of real estate taxes and assessments;
(ii) applicable zoning and use laws, ordinances, rules and regulations of any
municipality, township, county, state or other governmental agency or authority;
(iii) all matters that would be disclosed by a physical inspection or survey of
the Property or that are actually known to Grantee; and (iv) all covenants,
conditions, easements, restrictions, liens, encumbrances and other exceptions of
record.

         IN WITNESS WHEREOF, Grantor has executed this Grant Deed this _____ day
of ____, 200___.

                                          "Grantor"

                                          By:  ______________________________
                                            Its:  ___________________________

<PAGE>

                                  EXHIBIT D-2

                                  BILL OF SALE

For good and valuable consideration, the receipt of which is hereby
acknowledged, _________________________ a ____________________________
("Seller") does hereby sell, transfer, and convey to __________________________,
a ______________ ("Buyer"), any and all Personal Property (as defined in that
certain Purchase and Sale Agreement (the "Agreement") dated ______, 2000 between
Seller and certain other persons and Buyer) directly or indirectly owned by
Seller and relating to that certain property identified on EXHIBIT A attached
hereto (including, without limitation, the personal property more particularly
described in the attached SCHEDULE 1).

BUYER ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THE
AGREEMENT, SELLER IS CONVEYING AND BUYER IS PURCHASING SUCH PERSONAL PROPERTY ON
AN "AS IS WITH ALL FAULTS" BASIS AND THAT BUYER IS NOT RELYING ON ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM
SELLER, ITS AGENTS, OR BROKERS AS TO ANY MATTERS CONCERNING SUCH PERSONAL
PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES AS TO TITLE OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NOTHING
CONTAINED HEREIN SHALL LIMIT ANY REPRESENTATIONS, WARRANTIES OR COVENANTS
CONTAINED IN THE AGREEMENT.

This Bill of Sale may be executed in two or more counterparts, each of which
shall be deemed an original but all of which taken together shall constitute one
and the same instrument.

                  Dated this ____ day of __________, 2000.

                          SELLER:
                                    -----------------------------
                                    a
                                     ----------------------------

                                    By:
                                       --------------------------

                                    Its:
                                        -------------------------

                          BUYER:
                                    -----------------------------
                                    a
                                     ----------------------------

                                    By:
                                       --------------------------

                                    Its:
                                        -------------------------

<PAGE>

                              EXHIBIT D-3

               ASSIGNMENT AND ASSUMPTION OF CONTRACTS,
                       WARRANTIES AND GUARANTIES
                    AND OTHER INTANGIBLE PROPERTY

THIS ASSIGNMENT AND ASSUMPTION (the "Assignment") dated as of ______________,
2000, is between ________________________., a _____________________________
("Assignor"), and _____________________________, a ________________________
("Assignee").

         A. Assignor owns certain real property and certain improvements thereon
located in the City of _________, County of ____________, State of
__________________, and more particularly described in attached EXHIBIT A (the
"Property").

         B. Assignor has entered into certain contracts which affect the
Property, which contracts are described on EXHIBIT B attached hereto (the
"Contracts").

         C. Assignor, together with certain other parties, and Assignee have
entered into an Agreement for Purchase and Sale dated as of ____________, 2000
(the "Agreement"), pursuant to which Assignee agreed to purchase the Property
from Assignor and Assignor agreed to sell the Property to Assignee, on the terms
and conditions contained therein.

         D. Assignor desires to assign to Assignee its interest in the Contracts
and in certain warranties, guaranties, and intangible personal property with
respect to the Property, and Assignee desires to accept the assignment thereof,
on the terms and conditions below.

         ACCORDINGLY, the parties hereby agree as follows:

         1. As of the date on which the Property is conveyed to Assignee
pursuant to the Agreement (the "Conveyance Date"), Assignor hereby assigns
without recourse or warranty of enforceability (except as otherwise set forth
herein or in the Agreement) all of its right, title and interest in and to the
following:

         (a)      all of the Contracts listed on EXHIBIT B;

         (b) any warranties and guaranties ("Warranties and Guaranties") made by
or received from any third party with respect to any improvements owned by
Assignor on the Property;

         (c) except as otherwise set forth in the Agreement, any Intangible
Property (as defined in the Agreement) now owned by Assignor in connection with
the Property other than (i) Excluded Claims (as defined in the Agreement) and
(ii) Contracts (as defined in the Agreement) other than those listed on Exhibit
B; and

         (d) any indemnifications or covenants from third parties relating to
the environmental condition of the Property (but Seller reserves solely Seller's
rights to the benefit of such

<PAGE>

indemnifications and covenants protecting Seller with respect to Seller's
ownership of the Property).

         2. Concurrently with the conveyance of Assignor's interest in the
Property to Assignee, Assignee hereby assumes all of Assignor's obligations
under the Contracts listed on Exhibit B and agrees to indemnify Assignor against
and hold Assignor harmless from any and all liabilities, losses, damages,
claims, costs or expenses, including, without limitation, reasonable attorneys'
fees and costs, to the extent occurring or arising out of acts or events in
connection with the Contracts originating on or subsequent to the Conveyance
Date .

         3. Assignor shall indemnify Assignee against the hold Assignee harmless
from any and all liabilities, costs, damages, claims, costs or expenses,
including, without limitation, reasonable attorneys' fees and costs, to the
extent occurring or arising out of acts or events in connection with the
Contracts originating prior to the Conveyance Date and arising out of Assignor's
obligations under the Contracts.

         4. In the event of any dispute between Assignor and Assignee arising
out of the obligations of Assignor under this Assignment or concerning the
meaning or interpretation of any provision contained herein, the losing party
shall pay the prevailing party's costs and expenses of such dispute, including,
without limitation, reasonable attorneys' fees and costs.

         5. This Assignment shall be binding on and inure to the benefit of the
parties hereto and their respective successors and assigns.

         6. This Assignment may be executed in any number of counterparts, each
of which shall be deemed an original but all of which taken together shall
constitute one and the same instrument.

         7. This Assignment shall be governed by and conferred in accordance
with the laws of the State of California.

<PAGE>

                                    ASSIGNOR:

                                    -----------------------------
                                    a
                                     ----------------------------
                                    By:
                                       --------------------------

                                    Its:
                                        -------------------------

                                    ASSIGNEE:

                                    -----------------------------
                                    a
                                     ----------------------------
                                    By:
                                       --------------------------

                                    Its:
                                        -------------------------
<PAGE>

                                Exhibit A to
                     Assignment and Assumption of Contracts

                           REAL PROPERTY DESCRIPTION

<PAGE>

                            Exhibit B to Assignment
                          and Assumption of Contracts

                               LIST OF CONTRACTS

<PAGE>

                                  EXHIBIT D-4

                      ASSIGNMENT AND ASSUMPTION OF LEASES

THIS ASSIGNMENT AND ASSUMPTION OF LEASES (the "Assignment") dated as of
__________________, 2000, is between ___________________________,
_______________________________ ("Assignor"), and _______________________, a
_________________________ ("Assignee").

         A.       Assignor is the lessor under certain Leases (as defined in the
Agreement) executed with respect to that certain real property and improvements
thereon located in the City of __________, County of ____________,
______________, and more particularly described in EXHIBIT A attached hereto
(the "Property"), including, without limitation, the leases are described in
SCHEDULE 1 attached hereto and all guarantees and similar agreements including,
without limitation, the agreements described in SCHEDULE 2 attached hereto with
respect to such leases (collectively, the "Leases").

         B.       Assignor, together with certain other parties, and Assignee
have entered into an Agreement for Purchase and Sale dated as of _____________,
2000 (the "Agreement"), pursuant to which Assignee agreed to purchase the
Property from Assignor and Assignor agreed to sell the Property to Assignee, on
the terms and conditions contained therein.

         C.       Assignor desires to assign its interest as Lessor in the
Leases to Assignee, and Assignee desires to accept the assignment thereof, on
the terms and conditions below.

         ACCORDINGLY, the parties hereby agree as follows:

         1. As of the date on which the Property is conveyed to Assignee
pursuant to the Agreement (the "Conveyance Date"), Assignor hereby assigns to
Assignee all of its right, title and interest in and to the Leases; provided,
that Assignor reserves its right to sue a tenant (but without instituting an
involuntary bankruptcy action) under a Lease for damages suffered by Assignor as
a result of such tenant's failure to have paid any rents to Assignor which were
payable prior to the Conveyance Date so long as any such suit does not seek a
termination of such tenant's Lease and Assignee reserves its rights with respect
to the Excluded Claims (as defined in the Agreement).

         2. As of the Conveyance Date, Assignee hereby assumes all of Assignor's
obligations under the Leases (other than any financial obligations of the
landlord not otherwise assumed under the Agreement by Assignee and which were to
have been satisfied prior to the Conveyance Date) and agrees to indemnify
Assignor against and hold Assignor harmless from any and all liabilities,
losses, claims, damages, costs or expenses, including, without limitation,
reasonable attorneys' fees and costs to the extent occurring or arising out of
acts or events originating on or subsequent to the Conveyance Date and arising
out of the landlord's obligations under the Leases.

         3. Assignor shall indemnify Assignee against and hold Assignee harmless
from any and all liabilities, costs, claims, damages, costs or expenses
including, without limitation,

<PAGE>

reasonable attorneys' fees and costs to the extent occurring or arising out of
acts or events originating prior to the Conveyance Date and arising out of the
landlord's obligations under the Leases, except to the extent such obligations
are expressly assumed by Assignee pursuant to the Agreement or this Assignment;
provided, however, that notwithstanding anything to the contrary contained in
this paragraph 3, Assignor's indemnity shall not extend to any obligation of the
landlord to correct, repair, maintain or replace any aspect of the physical or
environmental condition of the Property, including, without limitation, the roof
or mechanical or structural systems of any building or remediating any
environmental contamination at the Property, subject, however, to any liability
of Assignor pursuant to representations and warranties set forth in the
Agreement, as limited by Section 4.4 thereof.

         4. In the event of any dispute between Assignor and Assignee arising
out of the obligations of the parties under this Assignment or concerning the
meaning or interpretation of any provision contained herein, the losing party
shall pay the prevailing party's costs and expenses of such dispute, including,
without limitation, reasonable attorneys' fees and costs.

         5. This Assignment shall be binding on and inure to the benefit of the
parties hereto and their respective successors and assigns.

         6. This Assignment may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.

         7. This Assignment shall be governed by and construed in accordance
with the laws of the State of California.

Assignor and Assignee have executed this Agreement the day and year first above
written.

                                    ASSIGNOR:

                                    ------------------------------------,
                                    a
                                     -----------------------------------

                                    By:
                                       ---------------------------------

                                    Its:
                                        --------------------------------

                                    ASSIGNEE:

                                    ------------------------------------,
                                    a
                                     -----------------------------------

                                    By:
                                       ---------------------------------

                                    Its:
                                        --------------------------------

<PAGE>

                                  Exhibit A to
                      Assignment and Assumption of Leases

                           REAL PROPERTY DESCRIPTION

<PAGE>

                            Schedule 1 to Assignment
                            and Assumption of Leases

                                 LIST OF LEASES

<PAGE>

                                   EXHIBIT E

                                   LITIGATION

<PAGE>

                                   EXHIBIT F

                             INTENTIONALLY DELETED

<PAGE>

                                                       EXHIBIT G

                                                 CLOSING COST CUSTOMS

<TABLE>
<CAPTION>

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

        PROPERTY                   LOCATION              TITLE POLICY            TRANSFER TAX              RECORDING FEES
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
<S>                       <C>                          <C>              <C>                           <C>

580 Marketplace           Castro Valley, CA               Buyer                     Seller                     Split
                          Alameda County                                    County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Arcade Square             Sacramento, CA                  Seller                    Seller                     Buyer
                          Sacramento County                                 County: $1.10/thousand
                                                                             City: $2.75/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Buena Vista Marketplace   Duarte, CA                      Seller                    Seller                     Buyer
                          Los Angeles County                                County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Centerwood Plaza          Bellflower, CA                  Seller                    Seller                     Buyer
                          Los Angeles County                                County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Creekside Shopping        Vacaville, CA                   Buyer                     Seller                     Buyer
Center                    Solano County                                     County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Discovery Plaza           Sacramento, CA                  Seller                    Seller                     Buyer
                          Sacramento County                                 County: $1.10/thousand

                                                                             City: $2.75/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Fremont Gateway Plaza     Fremont, CA                     Buyer                     Seller                     Split
                          Alameda                                           County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Hallmark Town Center      Madera, CA                      Seller                    Seller                     Buyer
                          Madera County                                     County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------
Menifee Town Center       Menifee, CA                     Seller                    Seller                     Buyer
                          Riverside County                                  County: $1.10/thousand
------------------------- ---------------------------- ---------------- ----------------------------- -------------------------

</TABLE>

<PAGE>

<TABLE>

<S>                       <C>                          <C>           <C>                           <C>
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Prospector's Plaza        Placerville, CA                  Split                Seller                      Buyer
                          El Dorado County                              County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Ralph's Center            Redondo Beach, CA                Seller               Seller                      Buyer
                          Los Angeles County                            County: $1.10/thousand

                                                                         City: $2.20/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
San Marcos Lucky Plaza    San Marcos, CA                   Seller               Seller                      Buyer
                          San Diego County                              County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Shasta Crossroads         Redding, CA                      Split                Seller                      Buyer
                          Shasta County                                 County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Silver Creek Plaza        San Jose, CA                     Seller               Seller                      Buyer
                          Santa Clara County                            County: $1.10/thousand
                                                                     City: Seller $3.30/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Southampton Center        Benecia, CA                      Buyer                Seller                      Buyer
                          Solano County                                 County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Stony Point Plaza         Santa Rosa, CA                   Buyer                Seller                      Buyer
                          Sonoma County                                 County: $1.10/thousand
                                                                         City: $2.00/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Summerhills Shopping      Sacramento, CA                   Seller               Seller                      Buyer
Center                    Sacramento County                             County: $1.10/thousand
                                                                         City: $2.75/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Sunset Center             Suisun City, CA                  Buyer                Seller                      Buyer
                          Solano County                                 County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
------------------------- ---------------------------- ------------- ----------------------------- -------------------------
Westminster Center        Westminster, CA                  Seller               Seller                      Buyer
                          Orange County                                 County: $1.10/thousand
------------------------- ---------------------------- ------------- ----------------------------- -------------------------

</TABLE>

<PAGE>

                                   EXHIBIT H

                             INTENTIONALLY DELETED

<PAGE>

                                   EXHIBIT I

                                EXCLUDED CLAIMS

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