Document:

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                                                                   EXHIBIT 10.20

                              SENIOR SUBORDINATED
                           REVOLVING PROMISSORY NOTE

February 16, 2000                                                 $15,000,000.00

     FOR VALUE RECEIVED, the undersigned, Novistar, Inc., a Delaware corporation
(herein called "Maker" whether one or more), jointly and severally, promises to
pay on demand to the order of Torch Energy Advisors Incorporated, a Delaware
corporation (herein called "Payee," which term herein in every instance shall
refer to any owner or holder of this note) the sum of FIFTEEN MILLION AND NO/100
DOLLARS ($15,000,000.00), or so much thereof as may be advanced from time to
time hereunder by Payee, together with interest on the principal hereof from
time to time outstanding from the date of advancement until maturity, at the per
annum rate hereinafter stated (computed on the basis of a year of 360 days and
paid for the actual number of days elapsed), said principal and interest being
payable in lawful money of the United States of America at the offices of Maker,
1221 Lamar, Suite 1600, Houston, Harris County, Texas 77010, or at such other
place as Payee may designate hereafter in writing.

     The principal balance hereof advanced and from time to time remaining
unpaid shall bear interest during each day of the loan evidenced hereby at the
rate equal to the lessor of (A) nine percent (9%) per annum (the "Agreed Rate"),
or (B) the Maximum Rate (hereinafter defined). Notwithstanding the foregoing,
if at any time the Agreed Rate shall exceed the Maximum Rate and thereafter the
Agreed Rate shall become less than the Maximum Rate, the rate of interest
payable hereunder shall be the Maximum Rate until the Payee shall have received
the amount of interest it would have received otherwise if the interest payable
hereunder had not been limited by the Maximum Rate during the period of time the
Agreed Rate exceeded the Maximum Rate.

     All past due principal and interest of this note, whether due as the result
of acceleration of maturity or otherwise, shall bear interest at the lesser of
(1) a rate that is five (5) percentage points above the Agreed Rate or (2) the
maximum lawful rate of interest permitted by the applicable usury laws, now or
hereafter enacted, which interest rate (herein called the "Maximum Rate") shall
change when and as said laws shall change to the extent permitted by said laws,
effective on the day such change in said laws becomes effective, from the date
the payment thereof shall have become due until the same have been fully
discharged by payment.

     The principal and interest of this note are due and payable at the offices
of said Payee in Houston, Harris County, Texas as follows:

        (a) Accrued, but unpaid interest hereon shall be due and payable monthly
in arrears on the last day of each month; and

        (b) The principal amount hereof then outstanding shall be due and
payable on demand.

     Until demand, the undersigned may, at the sole discretion of Payee, borrow,
pay, prepay in whole or in part and reborrow hereunder, so long as not more than
$15,000,000.00 of principal is outstanding at any one time, it being understood
that this note is a master revolving credit note; it being expressly
contemplated that, by reason of prepayments hereon, there may be times when no
indebtedness is owing hereunder, but, notwithstanding such occurrences, this
note shall remain valid and shall be in full force and effect as to loans or
advances made subsequent to such occurrences; and it being understood and agreed
that advances and repayments of principal under this note are not limited to the
face amount of principal, but to a maximum of the face amount of principal at
any one time outstanding. Payee may advance funds pursuant to this note from
time to time, and from time to time the undersigned will make repayments on the
principal of this note, so that no more than the face amount of principal shall
be outstanding at any one time. Each advance and each payment of principal
hereunder shall be reflected by a notation made by Payee in its business
records. The aggregate unpaid principal amount of advances reflected by the
notations made in Payee's business records shall be conclusive evidence of the
principal

                               Page 1 of 4 Pages
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amount owing under this note, which amount the undersigned unconditionally
promises to pay to the order of Payee under the term hereof.

Senior Indebtedness

        a. "Senior Indebtedness" means (i) all present and future indebtedness,
obligations, and liabilities of every kind and character of the Maker which may
be from time to time directly or indirectly incurred by the Maker to commercial
banks or other financial institutions under secured or unsecured credit
facilities (including, without limitation, interest accrued subsequent to the
filing of any petition under any bankruptcy, insolvency or similar law and
interest that would have accrued and been payable but for the commencement of an
insolvency proceeding), whether due and owing or to become due and owing,
howsoever created or arising or evidenced, whether joint or several, whether
absolute or contingent, and all renewals, extensions, increases, and
rearrangements of such indebtedness, obligations or liabilities, including,
without limitation, any and all amounts of principal, interest, attorneys' fees,
costs of collection and other amounts thereunder, and (ii) all present and
future advances, accounts payable and other amounts owed by the Maker to clients
of the Maker pursuant to written agreements under which the Maker provides
services to such clients.

        b. The Maker agrees and the holder of the Note, by acceptance thereof,
agrees, expressly for the benefit of the present and future holders of Senior
Indebtedness, that, except as otherwise provided herein, upon (i) maturity of
any Senior Indebtedness by lapse of time acceleration or otherwise, (ii) an
event of default under any Senior Indebtedness, or (iii) any dissolution,
winding up, or liquidation of the Maker, whether or not in bankruptcy,
insolvency or receivership proceedings, the Maker shall not pay, and the holder
of the Note shall not be entitled to receive, any amount in respect of the
principal and interest of the Note unless and until the Senior Indebtedness
shall have been fully paid in cash and any all obligations of the holders of
Senior Indebtedness to extend credit or other financing arrangements (including,
without limitation, any obligation to make advances under lines of credit or to
honor drawings under letters of credit) to or on behalf of the Maker shall have
been terminated. Upon (1) an event of default under any Senior Indebtedness, or
(2) any dissolution, winding up or liquidation of the Maker, any payment or
distribution (whether in cash, securities or other property or assets of the
Maker), which the holder of this Note would be entitled to receive but for the
provisions hereof, shall be paid by the liquidating trustee or agent or other
person making such payment or distribution directly to the holders of Senior
Indebtedness ratably according to the aggregate amounts remaining unpaid on
Senior Indebtedness after giving effect to any concurrent payment or
distribution to the holders of Senior Indebtedness. Subject to the payment in
full of the Senior Indebtedness in cash and the termination of any and all
obligations of the holders of Senior Indebtedness to extend credit or other
financing arrangements (including, without limitation, any obligation to make
advances under lines of credit or to honor drawings under letters of credit) to
or on behalf of the Maker, until this Note is paid in full, the holder of this
Note shall be subrogated to the rights of the holders of the Senior Indebtedness
(to the extent of payments or distributions previously made to the holders of
Senior Indebtedness pursuant to this Section b) to receive payments or
distributions of assets of the Maker applicable to the Senior Indebtedness.

        c. This Section is not intended to impair, as between the Maker, its
creditors (other than the holders of Senior Indebtedness) and the holder of this
Note, the unconditional and absolute obligation of the Maker under this Note or
affect the relative rights of the holder of this Note and the other creditors of
the Maker, other than the holders of Senior Indebtedness. Nothing in this Note
shall prevent the holder of this Note from exercising all remedies otherwise
permitted by applicable law after the occurrence and during the continuation of
an event of default under this Note, subject to the rights, if any, of the
holders of Senior Indebtedness in respect to cash, property or securities of the
Maker received upon the exercise of any such remedy. In furtherance of the
provisions of this Section, in the event that, notwithstanding the foregoing
provisions of this Section, any payment with respect to this Note shall be made
by or on behalf of the Maker, and received by the holder of this Note, at a time
when such payment was prohibited by the provisions of this Section, then, unless
and until such payment is no longer prohibited by this Section, such payment
shall be received and held in trust by such holder for

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the benefit of and shall be immediately paid over to the holders of Senior
Indebtedness, ratably according to the aggregate amounts remaining unpaid on
account of the Senior Indebtedness, for application to the payment of Senior
Indebtedness in accordance with its terms.

        d.  This Note shall be pari passu with any other debt of the Maker which
is subordinate to Senior Indebtedness.

        Maker may prepay this note in whole or in part at any time without being
required to pay any penalty or premium for such privilege.  All prepayments
hereunder, whether designated as payments of principal or interest, shall be
applied to the principal or interest of this note or to expenses provided for
herein, or any combination of the foregoing, as directed by Payee at its option.

        If Maker shall file a voluntary petition in bankruptcy, or shall be
adjudicated a bankrupt or insolvent, or shall file any petition or answer
seeking for Maker any arrangement, composition, readjustment, or similar relief
under any present or future statute, law or regulation, or shall file any answer
admitting the material allegations of a petition filed against Maker any
such proceeding, or shall seek or consent to or acquiesce in the appointment of
any trustee or receiver, on all or any substantial part of the properties of
Maker, or if a decree or order by a court having jurisdiction in the premises
shall have been entered adjudging Maker to be bankrupt or insolvent under the
federal bankruptcy laws or any applicable law of the United States of America or
any state law, or appointing a receiver or trustee or assignee in bankruptcy or
insolvency of Maker or any of Maker's properties, and such decree or order shall
have continued undischarged or unstayed for a period of 30 days, or if Maker
shall make an assignment for the benefit of creditors, or if Maker shall fail to
pay this note or any installment hereof, whether principal or interest, when
due, then Payee shall have the option, to the extent permitted by applicable
law, to declare this note due and payable, whereupon the entire unpaid principal
balance of this note and all accrued unpaid interest hereon thereupon at once
shall mature and become due and payable without presentment, demand, protest or
notice of any kind (including, but not limited to, notice of intention to
accelerate or notice of acceleration), all of which hereby are expressly waived
by Maker. The time of payment of this note also is subject to acceleration in
the same manner provided in this paragraph in the event Maker defaults or
otherwise fails to discharge its obligations under any of the instruments
securing payment hereof or relating hereto.

        Maker and any and all sureties, guarantors and endorsers of this note
and all other parties now or hereafter liable hereon, severally waive grace,
demand, presentment for payment, protest, notice of any kind (including, but not
limited to, notice of dishonor, notice of protest, notice of intention to
accelerate and notice of acceleration) and diligence in collecting and bringing
suit against any party hereto, and agree (i) to all extensions and partial
payments, with or without notice, before or after maturity, (ii) to any
substitution, exchange or release of any security now or hereafter given for
this note, (iii) to the release of any party primarily or secondarily liable
hereon, and (iv) that it will not be necessary for Payee, in order to enforce
payment of this note, to first institute or exhaust Payee's remedies against
Maker or any other party liable therefor or against any security for this note.

        In the event of default hereunder or under any of the instruments
securing payment hereof and this note is placed in the hands of an attorney for
collection (whether or not suite is filed), or if this note is collected by
suite or legal proceedings or through the probate court or bankruptcy
proceedings, Maker agrees to pay all reasonable attorneys' fees and all expenses
of collection and costs of court.

        It is the intention of the parties hereto to comply with applicable
usury laws; accordingly, notwithstanding any provision to the contrary in this
note, or in any of the documents securing payment hereof or otherwise relating
hereto, in no event shall this note or such documents require the payment or
permit the collection of interest in excess of the maximum amount permitted by
such laws. If any such excess of interest is contracted for, charged, taken,
reserved or received under this note or under the terms of any of the documents
securing payment hereof or otherwise relating hereto, or in the event the
maturity of the indebtedness evidenced by this

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note is accelerated in whole or in part, or in the event that all or part of the
principal or interest of this note shall be prepaid, so that under any of such
circumstances the amount of interest contracted for, charged or received under
this note or under any of the instruments securing payment hereof or otherwise
relating hereto, on the amount of principal actually outstanding from time to
time under this note shall exceed the maximum amount of interest permitted by
applicable usury laws, then in any such event (x) the provisions of this
paragraph shall govern and control, (y) any such excess which may have been
collected at final maturity of said indebtedness either shall be applied as a
credit against the then unpaid principal amount of hereof or refunded to Maker,
at Payee's option, and (z) upon such final maturity, the effective rate of
interest shall be automatically reduced to the maximum lawful rate allowed under
applicable usury laws as now or hereafter construed by the courts having
jurisdiction thereof. Without limiting the foregoing, all calculations of the
rate of interest contracted for, charged, taken, reserved or received under this
note or under such other documents which are made for the purpose of determining
whether such rate exceeds the maximum lawful rate, shall be made, to the extent
permitted by law, by amortizing, prorating, allocating and spreading in equal
parts during the period of the full stated term of the loan evidenced hereby,
all interest at any time contracted for, charged, taken, reserved or received
from Maker or otherwise by Payee in connection with such indebtedness.

     Except to the extent required by federal law, this note shall be governed
by and construed under the laws of the State of Texas.

     Any check, draft, money order or other instrument given in payment of all
or any portion hereof may be accepted by Payee and handled in collection in the
customary manner, but the same shall not constitute payment hereunder or
diminish any rights of Payee except to the extent that actual cash proceeds of
such instrument are unconditionally received by Payee.

     Maker and Payee agree that Chapter 346 of the Texas Finance Code (which
regulates certain revolving loan accounts and revolving tri-party accounts)
shall not apply to any revolving loan accounts created under this note or
maintained in connection therewith.

     To the extent that the interest rate laws of the State of Texas are
applicable to this note, for purposes of Texas Finance Code (S)303.001, as it
may be amended, the "applicable ceiling" shall be the "weekly ceiling" from time
to time in effect as limited by Texas Finance Code (S)303.009, provided,
however, the Payee retains the right to modify the interest rate in accordance
with applicable law.

     Maker represents and warrants to Payee and to all other owners and holders
of any indebtedness evidenced hereby that all loans evidenced by this note are
for business, commercial, investment or other similar purpose and not primarily
for personal, family, household or agricultural use, as such terms are used or
defined in Texas Revised Civil Statutes, Article 5069-1.04, Texas Credit Code
and Regulation Z promulgated by the Board of Governors of the Federal Reserve
System and under Titles I and V of the Consumer Credit Protection Act.

                                   Novistar, Inc.

                                   By:    /s/ Thomas M. Ray III
                                      -------------------------------
                                   Name:  Thomas M. Ray  III
                                          ---------------------------
                                   Title: President & CEO
                                          ---------------------------

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                                                                  EXHIBIT 10.1

                     AGREEMENT (this "Agreement"), dated as of September 11,
2000, by and among Burnham Pacific Properties, Inc., (the "Company") Burnham
Pacific Operating Partnership, L.L.P. ("BPOP"), Jay L. Schottenstein ("JLS")
Schottenstein Stores Corporation, ("SSC"), Jubilee Limited Partnership ("JLP"),
Jubilee Limited Partnership III ("JLPIII"), Schottenstein Professional Asset
Management Corp. ("SPAMC"), Michael L. Ashner ("MLA") and Susan Ashner ("SA"
and, together with SSC, JS, JLP, JLPIII, SPAMC and MLA, the "SA Group").

                                 R E C I T A L S

                     WHEREAS, the SA Group beneficially owns, in the aggregate,
shares (the "Shares") constituting approximately 9.78% of the outstanding shares
of common stock, par value $.01 per share, of the Company (the "Common Stock");

                     WHEREAS, members of the SA Group or their Affiliates (as
hereinafter defined) have extensive real estate property and asset management
expertise; and

                     WHEREAS, the Company and the SA Group wish to set forth
their understanding and agreement with respect to (i) the nomination of certain
representatives of the SA Group to serve as members of the Board of Directors of
the Company (the "Board"), (ii) the voting of shares of Common Stock
beneficially owned by the SA Group, (iii) the ability of the SA Group to acquire
additional shares of Common Stock, and (iv) the dismissal, with prejudice, of
certain legal proceedings instituted by certain members of the SA Group against
the Company and certain of its directors and the execution and delivery of
mutual releases by the Company, on the one hand, and the SA Group, on the other,
of any claims that such parties now have or may have against the other;

                     NOW, THEREFORE, in consideration of the premises and the
mutual covenants and agreements set forth herein, the parties hereto, intending
to be legally bound, hereby agree as follows:

SECTION 1. Governance.

           (a) Until the termination of this Agreement, the entire Board shall
consist of not more than eleven directors.

           (b) Until the termination of this Agreement, the Company shall
nominate for election as directors, and use all reasonable best efforts to cause
to be elected or appointed as directors, JLS and MLA (the "SA Group Nominees");
provided, however, that the SA Group may designate a person or persons,
reasonably acceptable to a majority of the members of the Board other than the
SA Group Nominees (the "Independent Directors"), for nomination as director(s)
in place of either or both of JLS and MLA. The Company represents to the SA
Group that JLS and MLA are being appointed to the Board contemporaneously with
the execution and delivery of this Agreement. The Company represents to the SA
Group that the holders of the Series 2000-C Convertible Preferred Stock have
approved the nomination and election of JLS and MLA to the Board and have agreed
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to vote in favor of the Board's nominees (including JLS and MLA) at the next
annual meeting of the Company's shareholders as and to extent provided in the
Exchange Agreement pursuant to which such Preferred Stock was issued. The
Company agrees not to enter into any agreement, arrangement or understanding
with any shareholder pursuant to which such shareholder agrees to vote in favor
of any nominees for election to the Board unless such nominees shall include the
SA Group Nominees.

           (c) In furtherance of the obligations of the Company set forth in
Section 2(b), at each annual meeting of stockholders of the Company or any
special meeting called for the purpose of electing directors of the Company (or
by consent of stockholders in lieu of any such meeting) or at such other time or
times as shall be required, the Company shall nominate the SA Group Nominees and
shall include such SA Group Nominees in any Company proxy solicitation materials
with respect to the election of directors.

           (d) The Company shall cause JLS to be appointed as a Co-Chairman of
the Board with an Independent Director who is not employed by the Company
serving as the other Co-Chairman. The Company represents to the SA Group that
such appointment is being made contemporaneously with the execution and delivery
of this Agreement.

           (e) The SA Group acknowledges that the Company is hiring Developers
Diversified Realty Corp. or an affiliate thereof to perform property management,
asset management and other services in connection with the liquidation of the
Company.

SECTION 2. Permitted Ownership

           (a) Within three business days after the date hereof, the Company
shall amend the Company's Shareholder Rights Agreement, dated as of June 19,
1999 between the Company and First Chicago Trust Company of New York, as Rights
Agent (the "Rights Agreement"), or take such other action with respect thereto,
such amendment or other action to be in form and substance reasonably acceptable
to the SA Group and its legal counsel, in order to permit the SA Group to
beneficially own, in the aggregate, up to (and including) 19.9% of the
outstanding Common Stock (the "Permitted Ownership"), which may include, without
limitation, shares convertible into Common Stock, without triggering any adverse
consequences to any member of the SA Group under the provisions of the Rights
Agreement.

           (b) Within three business days after the date hereof, the Company
shall take such action as is necessary to exempt the Permitted Ownership from
the provisions of Article VII, Section 7.2 of the Company's Articles of
Amendment and Restatement (the "Charter"), and the SA Group shall cooperate with
the Company and take such action as may be reasonably requested by the Company
so that the requirements thereof shall be complied with; provided, however, that
purchases of shares of Common Stock by the SA Group may be prohibited if such
purchases would result in the Company becoming "closely held" within the meaning
of Section 856(h) of the Internal Revenue Code of 1986, as amended (the "Code"),
or otherwise would cause the Company to fail to qualify as a Real Estate
Investment Trust under the Code and the rules relating thereto.

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           (c) Each member of the SA Group agrees to support and vote (or cause
to be voted) all of his, her or its shares of stock of the Company (including,
without limitation, the Shares) in favor of (i) the Board's plan of liquidation,
(ii) the election of all directors nominated by the Board for election at any
and all annual or special meetings of shareholders and (iii) the adoption of
such amendments to the Rights Agreement and the Charter or the taking of such
other action with respect thereto as the Independent Directors may determine to
be necessary or appropriate to permit any other shareholder to acquire the
levels of Permitted Ownership that the SA Group is permitted to acquire.

           (d) The Company represents and warrants to the SA Group that, (i)
except for any actions to be taken by the Company pursuant to this Section 3, no
acts are required to be taken by the Company in order to cause the Permitted
Ownership to be exempt from any restriction or limitation under the Rights
Agreement, the Charter, the Company's by-laws or any other agreement or
instrument to which the Company is a party or by which it is bound and (ii) the
execution, delivery and performance of this Agreement by the Company will not:
(A) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge or other restriction of any governmental authority
or court to which the Company is subject or any provision of the Charter or
by-laws of the Company; or (B) conflict with, result in a breach of, constitute
a default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, result in the creation of any
encumbrance upon or require any notice under any agreement to which the Company
is a party or by which it is bound.

           (e) The Company hereby confirms and acknowledges that the Company has
adopted appropriate resolutions to exempt itself from the provisions of Section
3-602 of the Maryland General Corporation Law with respect to the acquisition by
any person of the capital stock of the Company, and the Company further confirms
and acknowledges that such resolutions exempt the Permitted Ownership from such
provisions.

           (f) The Company has furnished to the SA Group a true, correct and
complete copy of its by-laws as amended to date.

           (g) Each member of the SA Group severally represents and warrants to
the Company that the execution, delivery and performance of this Agreement by
the members of the SA Group will not: (A) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge or other
restriction of any governmental authority or court to which such member is
subject or, if such member is not a natural person, any provision of such
member's organizational documents; or (B) conflict with, result in a breach of,
constitute a default under, result in the acceleration of, create in any party
the right to accelerate, terminate, modify, or cancel, result in the creation of
any encumbrance upon or require any notice under any agreement to which such
member is a party or by which it is bound.

SECTION 3. Standstill Arrangements. Until the termination of this Agreement (or
thereafter if this Agreement terminates as a result of the SA Group's breach of
this Agreement), and for so long as the SA Group Nominees serve as directors and
JLS serves as Co-Chairman of the Board (other than the failure of any such
person to serve by reason of death, disability, resignation or declining to be

                                       3
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nominated or elected), each member of the SA Group hereby agrees that, except as
otherwise permitted hereby or actions taken by the SA Nominees solely in their
capacities as directors, neither it nor any of its members or any of their
Affiliates, acting alone or as part of a group with any other person, will,
directly or indirectly:

           (a) acquire or agree, or cause to be acquired, ownership (including,
but not limited to, beneficial ownership) of any of the assets or businesses of
the Company or any of its subsidiaries or of any securities or debt obligations
of the Company or any of its subsidiaries, or any rights or options to acquire
any such ownership (including from a third party) except in any bankruptcy
proceeding, or

           (b) commence or support a stockholder proposal (including the
election of directors) not supported by the Board or make, or in any way
participate in, any "solicitation" of "proxies" (as such terms are used in the
proxy rules of the Securities Exchange Commission) to vote or seek to advise or
influence in any manner whatsoever any person or entity with respect to the
voting of any securities of the Company or any of its subsidiaries, or

           (c) otherwise act, whether alone or in concert with others, to seek
to propose to the Company or any of its subsidiaries, or any of their respective
stockholders or other equity holders any merger, tender or exchange offer,
business combination, restructuring, recapitalization or similar transaction to
or with the Company or any of its subsidiaries or otherwise act, whether alone
or in concert with others, to seek to control, change or influence the
management, the Board or policies of the Company or any of its subsidiaries, or
nominate any person as a director of the Company who is not nominated by the
then incumbent directors, or propose any matter to be voted upon by the
stockholders of the Company or the equity holders of any of its subsidiaries, or

           (d) solicit, negotiate with, or provide any information to, any
person with respect to a merger with, tender or exchange offer for, or
liquidation of the Company or any of its subsidiaries or any other acquisition
of the Company or any of its subsidiaries, or any other similar transaction, or

           (e) announce an intention to, or enter into any discussion,
negotiations, arrangements or understandings with any third party with respect
to, any of the foregoing, or

           (f) disclose any intention, plan or arrangement inconsistent with the
foregoing, or

           (g) advise, assist or encourage any other person in connection with
any of the foregoing, or

           (h) enter into any agreement with respect to the actions described in
subsections (a) through (g), inclusive, above or ask for a waiver of any such
provisions.

Notwithstanding anything to the contrary contained in this Section 3, (i) in the
event that the Company receives an unsolicited offer of a third party to acquire
the Company by means of merger, tender or exchange offer or other business

                                       4
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combination which the Board has determined to accept or not to oppose, the SA
Group may make a competing offer for an acquisition of the Company by any such
means, and (ii) members of the SA Group shall be permitted to bid for any
properties that are then being offered for sale by the Company.

SECTION 4. Termination of Litigation/Mutual Releases.

           (a) The SA Group concurrently herewith is causing a Stipulation of
Dismissal with Prejudice, in the form attached as Exhibit A hereto, to be
executed and delivered to the Company on behalf of the plaintiffs and the
Company is causing the same to be executed and delivered to the SA Group on
behalf of the defendants. The parties shall promptly file such Stipulation with
the appropriate court. The Company and BPOP, on the one hand, and each member of
the SA Group, on the other, do hereby release and forever discharge each other
and all of the other's predecessors, successors, assigns, beneficiaries, heirs,
executors, and administrators, and all of the other's present and/or former
representatives, principals, trustees, parents, subsidiaries, affiliates,
partners, shareholders general partners, limited partners, preferred equity
holders (including the affiliates, partners, stockholders and employees
thereof), co-venturers, officers (including, in the case of the Company, J.
David Martin, Scott C. Verges, Daniel B. Platt, Joseph W. Byrne, James W. Gaube,
and Michael L. Rubin), directors (including, in the case of the Company, Malin
Burnham, James D. Harper, Jr., James D. Klingbell, Jr., J. David Martin, Nina B.
Matis, Donne P. Moen, Philip S. Schlein and Robin Wolander), employees,
auditors, accountants, attorneys, advisors, agents, insurers and reinsurers from
any and all actions, causes of action, suits, claims, demands or controversies
whatsoever (including but not limited to all claims for subrogation,
contribution or indemnification, however denominated, and all claims arising
under the federal securities laws or state law including those based in tort,
contract or statute), whether known or unknown, direct or indirect, suspected or
unsuspected, asserted or unasserted, contingent on non-contingent, individual or
derivative, which such persons now have, every may have had, or may have in the
future arising out of or based in whole or in part upon any transactions,
events, occurrences, acts and omissions prior to the date of the execution and
delivery of this Agreement. In addition, the Company, on the one hand, and the
SA Group, on the other, hereby expressly waive and relinquish any rights or
benefits which they had, now have or may ever have in the future under Section
1542 of the Civil Code of the State of California, or any similar provision of
statutory or non-statutory law, to the fullest extent that they may lawfully
waive any such right and benefit arising out of or based in whole or in part
upon any transactions, events, occurrences, acts and omissions, prior to the
date of the execution and delivery of this Agreement. Notwithstanding the
foregoing, this release shall not serve to release or discharge, and shall have
no effect whatsoever upon, any claims arising under this Agreement.

           (b) The Company agrees to pay the SA Group the amount of $2,500,000
(the "Settlement Amount") to reimburse it for expenses incurred in connection
with the litigation referred to in Exhibit A and in connection with the SA
Group's agreement to dismiss such litigation with prejudice and to provide the
Company with the general release as set forth herein. The Settlement Amount

                                       5
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shall be payable as follows: (i) $1,000,000 shall be paid upon the execution and
delivery of this Agreement by all parties hereto by check made payable to (or
wire transfer to the account of) Weil, Gotshal & Manges LLP, which is serving as
agent for the SA Group, and (ii) $1,500,000 shall be paid immediately following
the redemption in full (including payment of any applicable premium) of the
Series 2000-C Convertible Preferred Stock pursuant to the Article Supplementary
with respect thereto by check made payable to (or wire transfer to the account
of) Weil, Gotshal & Manges LLP or as otherwise directed in writing by the SA
Group.

SECTION 5. Termination. The Company, on the one hand, or the SA Group, on the
other, may terminate this Agreement by written notice to the other upon a
material breach by the other of this Agreement that remains uncured for a period
of 20 days after written notice of such breach.

SECTION 6. Publicity. The Company and the SA Group shall agree upon a press
release concerning this Agreement.

SECTION 7. Director Indemnification. The Company shall enter into an agreement
(an "Indemnity Agreement") with each of the SA Group Nominees elected to the
Board whereby the Company shall (i) agree to provide such director with
director's liability insurance substantially similar in all respects to such
insurance provided to the other members of the Board and (ii) indemnify such
director to the same extent that the other members of the Board are indemnified
by the Company. Each Indemnity Agreement shall provide that such directors shall
receive the benefit of any increase in the scope or amount of insurance or
indemnification provided to the other members of the Board. In no event shall
the Company at any time reduce the scope or amount of the insurance (unless such
reduction is made with respect to all members of the Board) or indemnity
provided under an Indemnity Agreement, even if the indemnification provided by
the Company is reduced with respect to the other members of the Board. Unless
the Board (including the SA Group Nominees serving as directors) shall
unanimously determine otherwise, the Company shall retain counsel satisfactory
to the Board to advise the members of the Board in their capacity as directors
of the Company, and the Company shall pay for the reasonable fees and expenses
of such counsel.

SECTION 8. Further Assurances. Each of the parties shall, at any time and from
time to time after the date hereof, fairly and in good faith, do, execute,
acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered, all such further acts, deeds, assignments, transfers, conveyances,
powers of attorney, receipts, acknowledgements, acceptances and assurances as
may be reasonably required to procure for each of the parties and their
respective successors and assigns, the consideration to be delivered to them as
provided for herein or otherwise to carry out the intent and purposes of this
Agreement or to consummate any of the transactions contemplated hereby.

SECTION 9. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the

                                       6
<PAGE>
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

SECTION 10. GOVERNING LAW. THIS AGREEMENT IS MADE UNDER AND SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF MARYLAND
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN THE STATE. EACH
PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF MARYLAND LOCATED WITHIN THE CITY OF
BALTIMORE AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND
(NORTHERN DIVISION) FOR ANY ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY (AND EACH
PARTY HERETO AGREES NOT TO COMMENCE ANY ACTION, SUIT OR PROCEEDING RELATING
THERETO EXCEPT IN SUCH COURTS, AND FURTHER AGREES THAT SERVICE OF ANY PROCESS,
SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY'S ADDRESS SET
FORTH BELOW SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR
PROCEEDING BROUGHT AGAIN SUCH PARTY IN ANY SUCH COURT). FOR THE PURPOSES HEREOF,
THE ADDRESS OF THE SA GROUP SHALL BE c/o THE MANAGER AT THE ADDRESS SET FORTH OR
REFERRED TO IN THE MANAGEMENT AGREEMENT AND THE ADDRESS OF THE COMPANY SHALL BE
ITS ADDRESS SET FORTH OR REFERRED TO IN THE MANAGEMENT AGREEMENT. EACH PARTY
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING
OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY IN SUCH COURTS, AND HEREBY FURTHER IRREVOCABLY
AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN ANY INCONVENIENT FORUM.

SECTION 11. Specific Performance. The parties hereto agree that irreparable
damage would occur in the event any provision of this Agreement was not
performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, including, without
limitation, specific performance to enforce this Agreement, in addition to any
other remedy at law or in equity. The parties further agree to waive any
requirement for the posting of any bond in connection with any such remedy.

SECTION 12. Miscellaneous Provisions.

           (a) This Agreement may not be amended or modified, nor may the rights
of any party hereunder be waived, except by a written document that is executed
by each party hereto. No waiver of any provision of this Agreement shall be
deemed to constitute a waiver of any other provision hereof, nor shall any
waiver constitute a continuing waiver.

                                       7
<PAGE>
           (b) This Agreement may be executed in any number of counterparts,
each of which when executed and delivered shall be an original, but all of which
together shall constitute one and the same instrument.

           (c) When the context in which words are used in this Agreement
indicates that such is the intent, singular words shall include the plural and
vice versa and masculine words shall include the feminine and the neuter genders
and vice versa. References to Articles, Sections, Exhibits, Schedules or other
subdivisions are to appropriate subdivisions of this Agreement unless the
context otherwise requires. The words "herein", "hereof", "hereunder" and other
words of similar import refer to this Agreement as a whole and not to any
particular Section, Annex or other subdivision.

           (d) Captions and headings are employed herein for convenience of
reference only and shall not affect the construction or interpretation of any
provision hereof.

           (e) For purposes of this Agreement, the term "Affiliate" shall have
the meaning set forth in Rule 12b-2 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended.

           (f) Any action taken or approved, and any agreement or document
signed, by MLA and either JLS or SSC on behalf of the SA Group shall be deemed
to be binding on each member of the SA Group.

                         [SIGNATURES BEGIN ON NEXT PAGE]

                                       8
<PAGE>
           IN WITNESS WHEREOF, the parties have executed or caused this
Agreement to be executed as of the date first written above.

                             BURNHAM PACIFIC PROPERTIES, INC.

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

                             BURNHAM PACIFIC OPERATING PARTNERSHIP, L.L.P.

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

                             /s/ Jay L. Schottenstein
                             ---------------------------------------------------
                             JAY L. SCHOTTENSTEIN

                             /s/ Michael L. Ashner
                             ---------------------------------------------------
                             MICHAEL L. ASHNER

                             /s/ Susan Ashner
                             ---------------------------------------------------
                             SUSAN ASHNER

                             SCHOTTENSTEIN STORES CORPORATION

                             By: /s/ Benton E. Kramer
                                 -----------------------------------------------
                                 Name: Benton E. Kramer
                                 Title: Vice President

                                       9
<PAGE>
                             JUBILEE LIMITED PARTNERSHIP

                             By: SCHOTTENSTEIN PROFESSIONAL ASSET
                                 MANAGEMENT CORP., as sole general partner

                             By: /s/ Benton E. Kramer
                                 -----------------------------------------------
                                 Name: Benton E. Kramer
                                 Title: Vice President

                             JUBILEE LIMITED PARTNERSHIP III

                             By: SCHOTTENSTEIN PROFESSIONAL ASSET
                                 MANAGEMENT CORP., as sole general partner

                             By: /s/ Benton E. Kramer
                                 -----------------------------------------------
                                 Name: Benton E. Kramer
                                 Title: Vice President

                             SCHOTTENSTEIN PROFESSIONAL ASSET MANAGEMENT CORP.

                             By: /s/ Benton E. Kramer
                                 -----------------------------------------------
                                 Name: Benton E. Kramer
                                 Title: Vice President

                                       10
<PAGE>
                                                                    EXHIBIT A

                       IN THE UNITED STATES DISTRICT COURT
                          FOR THE DISTRICT OF MARYLAND

---------------------------------------------x
JUBILEE LIMITED PARTNERSHIP, et al.,            :
                                                :
                         Plaintiffs,            :  CIVIL ACTION NO.: L-00-1774
                                                :
           v.                                   :
                                                :
BURNHAM PACIFIC PROPERTIES, INC., et al.,       :
                                                :
                         Defendants.            :
---------------------------------------------x

                     STIPULATION OF DISMISSAL WITH PREJUDICE
                     ---------------------------------------

           PLEASE TAKE NOTICE that pursuant to Fed. R. Civ. Pro. 41(a)(1)(ii),

the parties, by their undersigned counsel, hereby stipulate and agree that the

above-entitled action is dismissed with prejudice and without costs.

<PAGE>

------------------------------------     ---------------------------------------
David Clarke, Jr. (#02177)               Arthur F. Fergenson
James D. Mathias (#06311)                BALLARD SPAHR ANDREWS & INGERSOLL, LLP
PIPER MARBURY RUDNICK                    300 East Lombard Street, 19th Floor
  & WOLFE LLP                            Baltimore, Maryland 21202-3268
6225 Smith Avenue                        (410) 528-5856
Baltimore, Maryland 21209-3600
(410) 580-4208

Attorneys for Plaintiffs
                                         ---------------------------------------
                                         R. Todd Cronan, P.C. (#542466)
                                         GOODWIN, PROCTER & HOAR LLP
                                         Exchange Place
                                         Boston, MA 02109
                                         (617) 570-1000

                                         Attorneys for Defendants

Of Counsel:

--------------------------------
Irwin H. Warren (IW-1168)
Greg A. Danilow (GD-1621)
Timothy E. Hoeffner (TH-4195)
WEIL, GOTSHAL & MANGES LLP
767 Fifth Avenue
New York, New York 10153
(212) 310-8000

Dated:  September __, 2000

                                       2

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