Document:

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                                                                  Exhibit 10.316

TITLE OF DOCUMENT:            DEED OF TRUST, SECURITY AGREEMENT AND ASSIGNMENT
                              OF RENTS

DATE OF DOCUMENT:             AUGUST 24, 2004

*GRANTOR(S):                  INLAND WESTERN TOWN AND COUNTRY MANCHESTER,
                              L.L.C., A DELAWARE LIMITED LIABILITY COMPANY

*GRANTEE(S):                  PRINCIPAL LIFE INSURANCE COMPANY, AN IOWA
                              CORPORATION

GRANTEE(S) MAILING ADDRESS:   C/O PRINCIPAL REAL ESTATE INVESTORS, LLC AT
                              801 GRAND AVENUE, DES MOINES, IOWA 50392-1450

LEGAL DESCRIPTION:            SEE EXHIBIT A ATTACHED HERETO

REFERENCE BOOK AND PAGE(S)    NOT APPLICABLE

                           *FOR INDEXING PURPOSES ONLY

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                        DEED OF TRUST, SECURITY AGREEMENT
                             AND ASSIGNMENT OF RENTS
                                 LOAN NO. 754044

        THIS INSTRUMENT SECURES, AMONG OTHER THINGS, FUTURE ADVANCES AND
          FUTURE OBLIGATIONS PURSUANT TO, AND IS TO BE GOVERNED BY THE
     PROVISIONS OF, SECTION 443.055 OF THE REVISED STATUTES OF MISSOURI. THE
            TOTAL PRINCIPAL AMOUNT OF THE FUTURE ADVANCES AND FUTURE
             OBLIGATIONS THAT MAY BE SECURED HEREBY IS $62,000,000.

A.   THIS DEED OF TRUST (as the same may from time to time hereafter be
modified, supplemented or amended, this "DEED OF TRUST") is made as of August
________, 2004, by and between INLAND WESTERN TOWN AND COUNTRY MANCHESTER,
L.L.C., a Delaware limited liability company, having its principal place of
business and post office address at 2901 Butterfield Road, Oak Brook, Illinois
60523, as "BORROWER" ("Borrower" to be construed as "Borrowers" if the context
so requires), BRIAN D. HABERT, whose address is Lewis, Rice & Fingersh, L.C.,
1010 Walnut, Suite 500, Kansas City, Missouri 64106, as "TRUSTEE", and PRINCIPAL
LIFE INSURANCE COMPANY, an Iowa corporation, having a principal place of
business and post office address c/o Principal Real Estate Investors, LLC at 801
Grand Avenue, Des Moines, Iowa 50392-1450, as "LENDER".

                                   WITNESSETH:

B.   Borrower is justly indebted to Lender for money borrowed (the "LOAN") in
the original principal sum of Thirty One Million Sixty Four Thousand Five
Hundred Fifty and No/100 Dollars ($31,064,550.00) (the "LOAN AMOUNT") evidenced
by Borrower's secured promissory note of even date herewith, made payable and
delivered to Lender, (as may be modified, amended, supplemented, extended or
consolidated in writing and any note(s) issued in exchange therefor or
replacement thereof) (the "NOTE") in which Note Borrower promises to pay to
Lender the Loan Amount, together with all accrued and unpaid interest thereon,
interest accrued at the Default Rate (if any), Late Charges (if any), the Make
Whole Premium (if any), and all other obligations and liabilities due or to
become due to Lender pursuant to the Loan Documents and all other amounts, sums
and expenses paid by or payable to Lender pursuant to the Loan Documents and the
Environmental Indemnity (collectively the "INDEBTEDNESS") until the Indebtedness
has been paid, but in any event, the unpaid balance (if any) remaining due on
the Note shall be due and payable on September 1, 2007 or such earlier date
resulting from the acceleration of the Indebtedness by Lender (the "MATURITY
DATE"). Capitalized terms used herein and not otherwise defined shall have those
meanings given to them in the other Loan Documents.

C.   NOW, THEREFORE, to secure the payment of the Indebtedness in accordance
with the terms and conditions of the Loan Documents, and all extensions,
modifications, and renewals

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thereof and the performance of the covenants and agreements contained therein,
and also to secure the payment of any and all other Indebtedness, direct or
contingent, that may now or hereafter become owing from Borrower to Lender in
connection with the Loan Documents, and in consideration of the Loan Amount in
hand paid, receipt of which is hereby acknowledged, Borrower does by these
presents GRANT, BARGAIN AND SELL, CONVEY, CONFIRM AND WARRANT, IN TRUST WITH
POWER OF SALE unto Trustee, its successors and assigns forever, that certain
real estate and all of Borrower's estate, right, title and interest therein,
located in the county of St. Louis, state of Missouri, more particularly
described in EXHIBIT A attached hereto and made a part hereof (the "LAND"),
which Land, together with the following described property, rights and
interests, is collectively referred to herein as the "PREMISES".

D.   Together with Borrower's interest as lessor in and to all Leases and all
Rents, which are pledged primarily and on a parity with the Land and not
secondarily.

E.   Together with all and singular the tenements, hereditaments, easements,
appurtenances, passages, waters, water courses, riparian rights, sewer rights,
rights in trade names, licenses, permits and contracts and all other rights,
liberties and privileges of any kind or character in any way now or hereafter
appertaining to the Land, including but not limited to, homestead and any other
claim at law or in equity as well as any after-acquired title, franchise or
license and the reversion and reversions and remainder and remainders thereof.

F.   Together with the right in the case of foreclosure hereunder of the
encumbered property for Lender to take and use the name by which the buildings
and all other improvements situated on the Premises are commonly known and the
right to manage and operate the said buildings under any such name and variants
thereof.

G.   Together with all right, title and interest of Borrower in any and all
buildings and improvements of every kind and description now or hereafter
erected or placed on the said Land and all materials intended for construction,
reconstruction, alteration and repairs of such buildings and improvements now or
hereafter erected thereon, all of which materials shall be deemed to be included
within the Premises immediately upon the delivery thereof to the Premises, and
all fixtures now or hereafter owned by Borrower and attached to or contained in
and used in connection with the Premises including, but not limited to, all
machinery, motors, elevators, fittings, radiators, awnings, shades, screens, and
all plumbing, heating, lighting, ventilating, refrigerating, incinerating,
air-conditioning and sprinkler equipment and fixtures and appurtenances thereto;
and all items of furniture, furnishings, equipment and personal property owned
by Borrower used or useful in the operation of the Premises; and all renewals or
replacements of all of the aforesaid property owned by Borrower or articles in
substitution therefor, whether or not the same are or shall be attached to said
buildings or improvements in any manner (collectively, the "IMPROVEMENTS"); it
being mutually agreed, intended and declared that all the aforesaid property
owned by Borrower and placed by it on the Land or used in connection with the
operation or maintenance of the Premises shall, so far as permitted by law, be
deemed to form a part and parcel of the Land and for the purpose of this Deed of
Trust to be Land and covered by this Deed of Trust, and as to any of the
property aforesaid which does not

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form a part and parcel of the Land or does not constitute a "fixture" (as such
term is defined in the Uniform Commercial Code) this Deed of Trust is hereby
deemed to be, as well, a security agreement under the Uniform Commercial Code
for the purpose of creating hereby a security interest in such property which
Borrower hereby grants to Lender as secured party. Borrower authorizes Lender at
any time until the Indebtedness is paid in full, to prepare and file any and all
Uniform Commercial Code financing statements, amendments, assignments,
terminations and the like, necessary to create and/or maintain a prior security
interest in such property all without Borrower's execution of the same.

H.   Together with all right, title and interest of Borrower, now or hereafter
acquired, in and to any and all strips and gores of land adjacent to and used in
connection with the Premises and all right, title and interest of Borrower, now
owned or hereafter acquired, in, to, over and under the ways, streets, sidewalks
and alleys adjoining the Premises.

I.   Together with all funds now or hereafter held by Lender under any escrow
security agreement or under any of the terms hereof, including but not limited
to funds held under the provisions of paragraph 5 hereof, insurance proceeds
from all insurance policies required to be maintained by Borrower under the Loan
Documents (subject to the balance of the terms contained in this Deed of Trust)
and all awards, decrees, proceeds, settlements or claims for damage now or
hereafter made to or for the benefit of Borrower by reason of any damage to,
destruction of or taking of the Premises or any part thereof, whether the same
shall be made by reason of the exercise of the right of eminent domain or by
condemnation or otherwise (a "TAKING").

J.   TO HAVE AND TO HOLD the same unto Trustee, Trustee's successors and
assigns, upon the trusts, covenants and agreements herein expressed.

K.   Borrower represents that it is the absolute owner in fee simple of the
Premises described in Exhibit A, which Premises are free and clear of any liens
or encumbrances except as set out in Exhibit B attached hereto, and except for
taxes which are not yet due or delinquent. Borrower shall forever warrant and
defend the title to the Premises against all claims and demands of all persons
whomsoever and will on demand execute any additional instrument which may be
required to give Trustee a valid first lien on all of the Premises, subject to
the "PERMITTED ENCUMBRANCES" set forth in Exhibit B.

L.   Borrower further represents that (i) the Premises is not subject to any
casualty damage; (ii) Borrower has not received any written notice of any
eminent domain or condemnation proceeding affecting the Premises; and (iii) to
the best of Borrower's knowledge following due and diligent inquiry, there are
no actions, suits or proceedings pending, completed or threatened against or
affecting Borrower or any person or entity owning an interest (directly or
indirectly) in Borrower ("INTEREST OWNER(S)") or any property of Borrower or any
Interest Owner in any court or before any arbitrator of any kind or before or by
any governmental authority (whether local, state, federal or foreign) that,
individually or in the aggregate, could reasonably be expected by Lender to be
material to the transaction contemplated hereby.

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M.   Borrower further represents and warrants that as of the date hereof and
until the Indebtedness is paid in full: (i) Borrower is not and will not be an
"employee benefit plan" as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), which is subject to Title I
of ERISA; (ii) the assets of Borrower do not and will not constitute "plan
assets" of one or more such plans for purposes of Title I of ERISA; (iii)
Borrower is not and will not be a "governmental plan" within the meaning of
Section 3(32) of ERISA; (iv) transactions by or with Borrower are not and will
not be subject to state statutes applicable to Borrower regulating investments
of and fiduciary obligations with respect to governmental plans; (v) Borrower
has made and will continue to make all required contributions to all employee
benefit plans, if any, established for or on behalf of Borrower or to which
Borrower is required to contribute; (vi) Borrower has and will continue to
administer each such plan, if any, in accordance with its terms and the
applicable provisions of ERISA and any other federal or state law; and (vii)
Borrower has not and will not permit any liability under Sections 4201, 4243,
4062 or 4069 of Title of ERISA or taxes or penalties relating to any employee
benefit plan or multi-employer plan to become delinquent or assessed,
respectively, which would have a material adverse effect upon (i) the business
or the financial position or results of operation of Borrower, (ii) the ability
of Borrower to perform, or of Lender to enforce, any of the Loan Documents or
Environmental Indemnity or (iii) the value of the Premises.

     BORROWER COVENANTS AND AGREES AS FOLLOWS:

     1.   Borrower shall

          (a)    pay each item of Indebtedness secured by this Deed of Trust
                 when due according to the terms of the Loan Documents;

          (b)    pay a Late Charge on any payment of principal, interest, Make
                 Whole Premium or Indebtedness which is not paid on or before
                 the due date thereof to cover the expense involved in handling
                 such late payment;

          (c)    pay on or before the due date thereof any indebtedness
                 permitted to be incurred by Borrower pursuant to the Loan
                 Documents and any other claims which could become a lien on the
                 Premises (unless otherwise specifically addressed in paragraph
                 1(e) hereof), and upon request of Lender exhibit satisfactory
                 evidence of the discharge thereof;

          (d)    complete within a reasonable time, the construction of any
                 Improvements now or at any time in process of construction upon
                 the Land which are required to be performed by Borrower;

          (e)    manage, operate and maintain the Premises and keep the
                 Premises, including but not limited to, the Improvements, in
                 good condition and repair and free from mechanics' liens or
                 other liens or claims for liens,

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                 provided however, that Borrower may in good faith, with
                 reasonable diligence and upon written Notice to Lender within
                 twenty (20) days after Borrower has knowledge of such lien or
                 claim, contest the validity or amount of any such lien or claim
                 and defer payment and discharge thereof during the pendency of
                 such contest in the manner provided by law, provided that (i)
                 such contest may be made without the payment thereof; (ii) such
                 contest shall prevent the sale or forfeiture of the Premises or
                 any part thereof, or any interest therein, to satisfy such lien
                 or claim; (iii) Borrower shall have obtained a bond over such
                 lien or claim from a bonding company acceptable to Lender which
                 has the effect of removing such lien or collection of the claim
                 or lien so contested; and (iv) Borrower shall pay all costs and
                 expenses incidental to such contest; and further provided, that
                 in the event of a final, non-appealable ruling or adjudication
                 adverse to Borrower and provided the court of jurisdiction has
                 not granted a stay of the enforcement of the ruling or
                 judgment, Borrower shall promptly pay such claim or lien, shall
                 indemnify and hold Lender and the Premises harmless from any
                 loss for damage arising from such contest and shall take
                 whatever action necessary to prevent sale, forfeiture or any
                 other loss or damage to the Premises or to the Lender;
                 provided, however, Lender acknowledges and agrees that
                 performance of the obligations set forth in this Paragraph 1(e)
                 by a Major Tenant (as defined in Paragraph 4(c) hereof) shall
                 be deemed compliance with such provisions by Borrower;

          (f)    comply, and cause each lessee or other user of the Premises to
                 comply, with all requirements of law and ordinance, and all
                 rules and regulations, now or hereafter enacted, by authorities
                 having jurisdiction of the Premises and the use thereof,
                 including but not limited to all covenants, conditions and
                 restrictions of record pertaining to the Premises, the
                 Improvements, and the use thereof (collectively, "LEGAL
                 REQUIREMENTS");

          (g)    subject to the provisions of paragraph 6 hereof, promptly
                 repair, restore or rebuild any Improvements now or hereafter a
                 part of the Premises which may become damaged or be destroyed
                 by any cause whatsoever, so that upon completion of the repair,
                 restoration and rebuilding of such Improvements, there will be
                 no liens of any nature arising out of the construction and the
                 Premises will be of substantially the same character and
                 quality as it was prior to the damage or destruction;

          (h)    if other than a natural person, do all things necessary to
                 preserve and keep in full force and effect its existence,
                 franchises, rights and privileges under the laws of the state
                 of its formation and, if other than its state of formation, the
                 state where the Premises is located. Borrower shall notify
                 Lender at least thirty (30) days prior to (i) any relocation of
                 Borrower's

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                 principal place of business to a different state or any change
                 in Borrower's state of formation, and/or (ii) if Borrower is an
                 individual, any relocation of Borrower's principal residence to
                 a different state;

          (i)    do all things necessary to preserve and keep in full force and
                 effect Lender's title insurance coverage insuring the lien of
                 this Deed of Trust as a first and prior lien, subject only to
                 the Permitted Encumbrances stated in Exhibit B and any other
                 exceptions after the date of this Deed of Trust approved in
                 writing by Lender, including without limitation, delivering to
                 Lender not less than 30 days prior to the effective date of any
                 rate adjustment, modification or extension of the Note or any
                 other Loan Document, any new policy or endorsement which may be
                 reasonably required to assure Lender of such continuing
                 coverage;

          (j)    execute any and all documents which may be required to perfect
                 the security interest granted by this Deed of Trust;

          (k)    remain a Single-Purpose Entity; and

          (l)    It is understood and agreed that this Deed of Trust secures
                 future advances and future obligations. The total amount of
                 obligations and advances secured hereby may decrease or
                 increase from time to time, but at no time shall the total
                 principal amount of obligations and advances secured hereby,
                 not including sums expended or incurred for the reasonable
                 protection of the security interest created in the Premises or
                 for other purposes specified in Section 443.055(3) of the
                 Missouri Revised Statutes, exceed the principal amount of
                 $62,000,000.00. This Deed of Trust is governed by Section
                 443.055 of the Missouri Revised Statutes.

          As used herein, the term "SINGLE PURPOSE ENTITY" means: a corporation,
          limited or general partnership, limited liability company, or business
          trust which, at all times until the Indebtedness is paid in full (i)
          will be organized solely for the purpose of owning the Premises, (ii)
          will not engage in any business unrelated to the ownership of the
          Premises, (iii) will not have any assets other than those related to
          the Premises, (iv) will not engage in, seek or consent to any
          dissolution, winding up, liquidation, consolidation or merger, and,
          except as otherwise expressly permitted by the Loan Documents, will
          not engage in, seek or consent to any asset sale, transfer of
          partnership, membership, shareholder, beneficial interests, or
          amendment of its limited partnership agreement, articles of
          incorporation, articles of organization, certificate of formation,
          operating agreement, trust agreement, or trust certificate (as
          applicable), (v) will not fail to correct any known misunderstanding
          regarding the separate identity of such entity, (vi) without the
          unanimous consent of all of the partners, directors, members,
          beneficial owners and trustees, as applicable, will not with respect
          to itself or to

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          any other entity in which it has a direct or indirect legal or
          beneficial ownership interest (a) file a bankruptcy, insolvency or
          reorganization petition or otherwise institute insolvency proceedings
          or otherwise seek any relief under any laws relating to the relief
          from debts or the protection of debtors generally; (b) seek or consent
          to the appointment of a receiver, liquidator, assignee, trustee,
          sequestrator, custodian or any similar official for such entity or all
          or any portion of such entity's properties; (c) make any assignment
          for the benefit of such entity's creditors; or (d) take any action
          that might cause such entity to become insolvent, (vii) will maintain
          its accounts, books and records separate from any other person or
          entity, (viii) will maintain its books, records, resolutions and
          agreements as official records, (ix) has not commingled and will not
          commingle its funds or assets with those of any other person or
          entity, (x) has held and will hold its assets in its own name, (xi)
          will conduct its business in its name, (xii) will maintain its
          financial statements, accounting records and other entity documents
          separate from any other person or entity, (xiii) will pay its own
          liabilities out of its own funds and assets, (xiv) will observe all
          corporate, limited liability company and partnership formalities, as
          applicable, including any regarding the maintenance of minimum capital
          to the extent required by the laws of the jurisdiction in which the
          entity is organized; (xv) has maintained and will maintain an
          arms-length relationship with its affiliates, (xvi) if such entity
          owns the Premises, will have no indebtedness other than the
          Indebtedness and commercially reasonable unsecured trade payables in
          the ordinary course of business relating to the ownership and
          operation of the Premises which are paid within sixty (60) days of the
          date incurred, (xvii) will not assume or guarantee or become obligated
          for the debts of any other person or entity or hold out its credit as
          being available to satisfy the obligations of any other person or
          entity, except for the Indebtedness, (xviii) will not acquire
          obligations or securities of its partners, members, trustees,
          beneficial owners or shareholders, (xix) will allocate fairly and
          reasonably shared expenses, including, without limitation, shared
          office space and uses separate stationery, invoices and checks, (xx)
          will not pledge its assets for the benefit of any other person or
          entity, (xxi) will hold itself out and identify itself as a separate
          and distinct entity under its own name and not as a division or part
          of any other person or entity, (xxii) will not make loans to any
          person or entity, (xxiii) will not identify its partners, members,
          shareholders, trustees, beneficiaries or any affiliates of any of them
          as a division or part of it, (xxiv) will not enter into or be a party
          to, any transaction with its partners, members, shareholders,
          beneficiaries, trustees or its affiliates except in the ordinary
          course of its business and on terms which are intrinsically fair and
          are no less favorable to it than would be obtained in a comparable
          arms-length transaction with an unrelated third party, (xxv) will pay
          the salaries of its own employees from its own funds, and (xxvi) if
          such entity is a limited liability company, limited partnership, or
          business trust then such entity shall continue and not dissolve
          whether as a consequence of bankruptcy or insolvency of one or more of
          the members, general partners, or trustees, as applicable, or
          otherwise, for so

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          long as a solvent managing member, general partner, or trustee, as
          applicable, exists and, subject to applicable law, dissolution of the
          entity shall not occur so long as the entity remains owner of the
          Premises subject to the Deed of Trust. Such entity's organizational
          documents shall contain such provision.

     2.   Borrower shall not:

          (a)    except as required by applicable Legal Requirements, construct
                 any building or structure nor make any alteration or addition
                 (other than normal repair and maintenance) to (i) the roof or
                 any structural component of any Improvements on the Premises,
                 or (ii) the building operating systems, including but not
                 limited to, the mechanical, electrical, heating, cooling, or
                 ventilation systems (other than replacement with equal or
                 better quality and capacity), without the prior written consent
                 of Lender not to be unreasonably withheld;

          (b)    remove or demolish any material Improvements, or any portion
                 thereof, which at any time constitutes a part of the Premises.

                 Notwithstanding anything hereinabove to the contrary, Borrower
                 may construct, remove or demolish tenant improvements within
                 the then existing building(s) or other structures to the extent
                 such work is required solely under the terms of any Leases
                 approved by Lender provided (i) no Event of Default exists
                 under the Loan Documents; (ii) the work is completed on a
                 timely basis, in a good, workmanlike, lien-free manner and in
                 accordance with all Legal Requirements, and (iii) such work
                 does not negatively affect the structural integrity of the
                 Improvements or the value of the Premises;

          (c)    cause or permit any change to be made in the general use of the
                 Premises without Lender's prior written consent;

          (d)    initiate any or acquiesce to a zoning reclassification or
                 material change in zoning without Lender's prior written
                 consent. Borrower shall use all reasonable efforts to contest
                 any such zoning reclassification or change;

          (e)    make or permit any use of the Premises that could with the
                 passage of time result in the creation of any right of use, or
                 any claim of adverse possession or easement on, to or against
                 any part of the Premises in favor of any person or entity or
                 the public;

          (f)    allow any of the following to occur (unless a Permitted
                 Transfer):

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                 (i)   a Transfer of all or any portion of the Premises or any
                       interest in the Premises;

                 (ii)  a Transfer of any ownership interest in Borrower or any
                       entity which owns, directly or indirectly, an interest in
                       Borrower at any level of the ownership structure; or

                 (iii) in addition to (i) and (ii) above, if the Borrower is a
                       trust, or if a trust owns an interest, directly or
                       indirectly, in any entity which owns an interest in
                       Borrower at any level of the ownership structure, the
                       addition, deletion or substitution of a trustee of such
                       trust.

                 If any of such events occur, it shall be null and void and
                 shall constitute an Event of Default under the Loan Documents.

                 It is understood and agreed that the Indebtedness evidenced by
                 the Note is personal to Borrower and in accepting the same
                 Lender has relied upon what it perceived as the willingness and
                 ability of Borrower to perform its obligations under the Loan
                 Documents and the Environmental Indemnity and as lessor under
                 the Leases of the Premises. Furthermore, Lender may consent to
                 a Transfer and expressly waive Borrower's covenants contained
                 in this paragraph 2(f), in writing to Borrower; however any
                 such consent and waiver shall not constitute any consent or
                 waiver of such covenants as to any Transfer other than that for
                 which the consent and waiver was expressly granted.
                 Furthermore, Lender's willingness to consent to any Transfer
                 and waive Borrower's covenants contained in this paragraph
                 2(f), implies no standard of reasonableness in determining
                 whether or not such consent shall be granted and the same may
                 be based upon what Lender solely deems to be in its best
                 interest.

                 For purposes of the Loan Documents, the following terms shall
                 have the respective meanings set forth below:

                 "TRANSFER" or "TRANSFERRED" shall mean with respect to the
                 Premises, an interest in the Premises, or an ownership interest
                 or interest therein:

                 (i)   a sale, assignment, transfer, conveyance or other
                       disposition (whether voluntary, involuntary or by
                       operation of law);
                 (ii)  the creation, sufferance or granting of any lien,
                       encumbrance, security interest or collateral assignment
                       (whether voluntarily, involuntarily or by operation of
                       law), other than the lien hereof, the leases of the
                       Premises assigned to Lender, the Permitted Encumbrances,
                       the granting of a lien on a tenant's interest under

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                       any Lease in accordance with the terms specifically set
                       forth therein, and those liens which Borrower is
                       contesting in accordance with the provisions of paragraph
                       1(e);
                 (iii) the issuance or other creation of ownership interests in
                       an entity;
                 (iv)  the reconstitution or conversion from one entity to
                       another type of entity;
                 (v)   a merger, consolidation, reorganization or any other
                       business combination; or
                 (vi)  a conversion to or operation of all or any portion of the
                       Premises as a cooperative or condominium form of
                       ownership.

                 "PERMITTED TRANSFER" shall mean:

                 (i)   a minor (as determined by Lender) conveyance of an
                       interest in the Premises by Borrower, such as a utility
                       easement, and for which Lender has given its prior
                       written consent and imposed such conditions as Lender
                       deems advisable and appropriate;
                 (ii)  a sale, assignment, transfer or conveyance of all or any
                       portion of the Premises or an interest in the Premises
                       for which Borrower has complied with all of the Property
                       Transfer Requirements; or
                 (iii) any of the following Transfers for which Borrower has
                       complied with all of the Ownership Transfer Requirements
                       as applicable and Lender has given its prior written
                       consent (and in connection with such consent, Lender may
                       impose any conditions it wishes in its sole discretion);
                       (A)  a sale, assignment, transfer, or conveyance of an
                            ownership interest or interest therein;
                       (B)  the issuance or other creation of ownership
                            interests in an entity;
                       (C)  a reconstitution or conversion from one entity to
                            another type of entity;
                       (D)  a merger, consolidation, reorganization or any other
                            business combination;

                 (iv)  with at least thirty (30) days advance written notice,
                       transfers of ownership interests in Borrower and entities
                       owning interests in Borrower between Inland Western
                       Retail Real Estate Trust, Inc., a Maryland corporation
                       ("IWRRET"), and its wholly owned affiliates for which
                       Borrower has complied with all of the Specific Transfer
                       Requirements - 1;
                 (v)   with at least thirty (30) days advance written notice,
                       transfers of ownership interests in Borrower and/or
                       shares in entities owning interests in Borrower to
                       Qualified New Members (hereinafter defined), for which
                       Borrower has complied with all of the Specific

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                       Transfer Requirements - 2 (for purposes of this Permitted
                       Transfer, a "Qualified New Member" shall be defined as an
                       institutional investor or fund managed by an
                       institutional investor having assets of $100,000,000 or
                       more;
                 (vi)  with at least thirty (30) days advance written notice,
                       transfers of direct or indirect ownership interests in
                       Borrower and entities owning interests in Borrower and
                       IWRRET, and its wholly owned affiliates to a Qualified
                       Successor) (hereinafter defined) and/or its wholly owned
                       affiliates for which Borrower has complied with all of
                       the Specific Transfer Requirements - 3 (for purposes of
                       this Permitted Transfer, a "Qualified Successor" shall be
                       defined as an entity with a tangible net worth of
                       $200,000,000 or more); a debt to equity ratio of 1.5 or
                       less; and management personnel experienced in the
                       ownership and management of retail properties similar to
                       the Premises; or
                 (vii) transfers of ownership interests in IWRRET.

                 "PROPERTY TRANSFER REQUIREMENTS" are all of the following:

                 1.    Prior review and approval of the proposed purchaser or
                       other transferee and the subject transaction by Lender,
                       at Lender's sole discretion. Review of the proposed
                       purchaser or other transferee and the subject transaction
                       shall encompass various factors, including, but not
                       limited to, the proposed purchaser's or other
                       transferee's creditworthiness, financial strength, and
                       real estate management and leasing expertise as well as
                       the proposed transaction's effect on the Premises, the
                       Borrower, and other security for the Loan;

                 2.    Payment to Lender of an assumption fee equal to the
                       greater of: (a) one half of one percent (0.5%) of the
                       principal balance of the Note; or (b) $15,000.00;
                       provided, however, that Lender will require $15,000.00 of
                       such fee to be paid at the beginning of Lender's review
                       process, and such sum shall be nonrefundable and earned
                       upon receipt by Lender whether or not the transaction is
                       ultimately completed or Lender ultimately approves the
                       proposed purchaser or other transferee;

                 3.    Receipt, at Borrower's expense, of either (at Lender's
                       discretion) a new ALTA standard loan policy or an
                       endorsement updating the Lender's existing loan policy in
                       the full amount of the Loan, in form and by an issuer
                       satisfactory to Lender, and which insures this Deed of
                       Trust to be a first and prior lien subject only to those

                                       11
<Page>

                       exceptions which were previously approved by Lender and
                       provides coverage against usury and mechanic's liens;

                 4.    Receipt by Lender of copies of all relevant information
                       and documentation relating to or required by Lender in
                       connection with the proposed transfer including but not
                       limited to (a) the organizational documents of the
                       proposed transferee and an opinion of counsel
                       satisfactory to Lender as to its due formation, valid
                       existence and authority to enter into and carry out the
                       proposed transaction as well as the proposed transferee's
                       compliance with its status as a Single Purpose Entity;
                       (b) the deeds or other instruments of transfer and
                       documents relating to the assignment and assumption of
                       Leases; (c) evidence of compliance with the insurance
                       requirements contained in the Loan Documents; and (d)
                       compliance with such other closing requirements as are
                       customarily imposed by Lender in connection with such
                       transactions;

                 5.    Execution, delivery, acknowledgment and recordation, as
                       applicable, of new, revised and/or replacement assumption
                       agreements, loan modification agreements, indemnification
                       agreements, escrow security or property reserves
                       agreements, security instruments, financing statements,
                       UCCs, new or revised letters of credit and/or guarantees
                       in form and substance satisfactory to Lender;

                 6.    Payment of outside counsel fees and costs, other
                       applicable professional's fees and costs, taxes,
                       recording fees and the like, and any other fees and costs
                       incurred;

                 7.    Receipt by Lender of 60 days advance written notice of
                       the proposed Transfer in question;

                 8.    Receipt by Lender of a waiver from any tenant having a
                       right or option to purchase the Premises or any portion
                       thereof, waiving such right or option in form and
                       substance acceptable to Lender; and

                 9.    At Lender's option, and if required by the procedures
                       promulgated by any rating agency(ies) associated with a
                       securitization transaction with respect to the Loan,
                       receipt by Lender of written evidence from such
                       agency(ies) to the effect that the proposed transfer will
                       not result in a re-qualification, reduction or

                                       12
<Page>

                       withdrawal of any rating in effect immediately prior to
                       such transfer issued in connection with the
                       securitization transaction.

                 "OWNERSHIP TRANSFER REQUIREMENTS" are all of the Property
                 Transfer Requirements which Lender deems appropriate in its
                 discretion, as well as a reasonable processing fee to be
                 determined by Lender; provided, however, that (i) with respect
                 to item 2 of the Property Transfer Requirements, the 0.5%
                 component of the fee shall be prorated (subject, however, to
                 the $15,000 minimum) based on Lender's calculation of the
                 effective percentage interest in Borrower transferred, and (ii)
                 item 3 of the Property Transfer Requirements shall be required,
                 at Lender's discretion, only in the event of (A) a merger,
                 consolidation, reorganization or any other business
                 combination, or (B) a reconstitution on or conversion from one
                 entity to another type of entity.

          "SPECIFIC TRANSFER REQUIREMENTS -1" are all of the following which
          Borrower agrees to provide to Lender prior to each proposed transfer:
          (i) a transfer fee of $2,000.00; (ii) all relevant documentation and
          information related to the organization, authority, and validity of
          the proposed ownership interest purchaser, transferee and the
          transaction in general; (iii) all documents and instruments of
          conveyance, transfer and assignment; (iv) at Lender's discretion, a
          reaffirmation of the obligations of the Guarantor(s) under the
          Guaranty; and (v) evidence of payment of all outside counsel fees,
          professional fees, title insurance fees, if any, and any and all other
          fees, costs and expenses related to the proposed transfer (provided
          that no assumption or transfer fee other than the $2,000 fee stated in
          (i) above shall be required).

          "SPECIFIC TRANSFER REQUIREMENTS - 2" are all of the following which
          Borrower agrees to provide to Lender prior to each proposed transfer:
          IWRRET or a wholly owned affiliate thereof (i) (a) retains 51% or more
          of the ownership interest in the Borrower, or (b) retains ownership of
          20% to 50% of the ownership interest in the Borrower subject to
          Lender's review and approval in each instance of the proposed
          transferee and the subject transaction; Lender's review of the
          proposed transferee and the subject transaction shall encompass
          various factors, including but not limited to, transferee's
          creditworthiness, financial strength, and real estate management
          expertise, as well as the proposed transaction's effect on the
          Premises, Borrower and the other security for the Loan, and (ii)
          otherwise retains operational and management control of Borrower as
          determined by Lender, and further provided Borrower provides Lender
          each of the following items prior to each proposed transfer: (a) a
          transfer fee equal to the greater of $5,000.00 or the product of the
          percentage ownership interest in Borrower to be transferred multiplied
          by one percent (1%) of the outstanding principal balance of the Loan;
          (b) all relevant documentation and information related to the
          organization, authority, and validity of the proposed ownership
          interest purchaser, transferee

                                       13
<Page>

          and the transaction in general; (c) all documents and instruments of
          conveyance, transfer and assignment; (d) a reaffirmation of the
          obligations of the Guarantor(s) under the Guaranty; and (e) evidence
          of payment of all outside counsel fees, professional fees, title
          insurance fees and any and all other fees, costs and expenses related
          to the proposed transfer (provided that no assumption or transfer fee
          other than the $5,000.00 fee stated in (a) above shall be required).

          "SPECIFIC TRANSFER REQUIREMENTS - 3" are all of the following which
          Borrower agrees to provide to Lender prior to each proposed transfer:
          (i) said transfers are made to accommodate either the merger of IWRRET
          with the Qualified Successor or the sale of a majority of IWRRET's
          assets to the Qualified Successor; and (ii) the Qualified Successor
          retains direct or indirect ownership of 51% or more of the ownership
          interests in the Borrower and (iv) the Qualified Successor otherwise
          retains operational and management control of Borrower as determined
          by Lender, and further provided, Borrower provides Lender with each of
          the following items prior to the proposed transfer: (a) a transfer fee
          of $10,000.00; (b) all relevant documentation and information related
          to the organization, authority, and validity of the proposed ownership
          interest purchaser, transferee and the transaction in general; (c) all
          documents and instruments of conveyance, transfer and assignment; (d)
          a reaffirmation of the obligations of the Guarantor(s) under the
          Guaranty or assumption thereof by an individual(s) or entity(ies)
          acceptable to Lender in its sole discretion; and (e) evidence of
          payment of all outside counsel fees, professional fees, title
          insurance fees and any and all other fees, costs and expenses related
          to the proposed transfer (provided that no assumption or transfer fee
          other than the $10,000.00 fee stated in (a) above shall be required).

     3.   (a)    Borrower shall pay or cause to be paid when due and before any
                 penalty attaches or interest accrues all general taxes, special
                 taxes, assessments (including assessments for benefits from
                 public works or improvements whenever begun or completed),
                 utility charges, water charges, sewer service charges, common
                 area maintenance charges, if any, vault or space charges and
                 all other like charges against or affecting the Premises or
                 against any property or equipment located on the Premises, or
                 which might become a lien on the Premises, and shall, within 10
                 days following Lender's request, furnish to Lender a duplicate
                 receipt of such payment. If any such tax, assessment or charge
                 may legally be paid in installments, Borrower may, at its
                 option, pay such tax, assessment or charge in installments.
                 Lender acknowledges and agrees that performance of the
                 obligations set forth in this Paragraph 3(a) by a Major Tenant
                 under its lease for a portion of the Premises shall be deemed
                 compliance with such provisions by Borrower with respect to
                 such portion of the Premises.

                                       14
<Page>

          (b)    If Borrower desires to contest any tax, assessment or charge
                 relating to the Premises, Borrower may do so by paying the same
                 in full, under protest, in the manner provided by law;
                 provided, however, that

                 (i)   if contest of any tax, assessment or charge may be made
                       without the payment thereof, and

                 (ii)  such contest shall have the effect of preventing the
                       collection of the tax, assessment or charge so contested
                       and the sale or forfeiture of the Premises or any part
                       thereof or any interest therein to satisfy the same,

                 then Borrower may in its discretion and upon the giving of
                 written notice to Lender of its intended action and upon the
                 furnishing to Lender of such security or bond as Lender may
                 require, contest any such tax, assessment or charge in good
                 faith and in the manner provided by law. All costs and expenses
                 incidental to such contest shall be paid by Borrower. In the
                 event of a ruling or adjudication adverse to Borrower, Borrower
                 shall promptly pay such tax, assessment or charge. Borrower
                 shall indemnify and save harmless the Lender and the Premises
                 from any loss or damage arising from any such contest and
                 shall, if necessary to prevent sale, forfeiture or any other
                 loss or damage to the Premises or to Lender, pay such tax,
                 assessment or charge or take whatever action is necessary to
                 prevent any sale, forfeiture or loss. Lender acknowledges and
                 agrees that upon compliance with the foregoing requirements, to
                 the extent permitted under its lease of a portion of the
                 Premises, a Major Tenant shall have all rights of contest as
                 set forth in this Paragraph 3(b).

     4.   (a)    Borrower shall at all times keep or cause to be kept in force
                 (i) property insurance insuring all Improvements which now are
                 or hereafter become a part of the Premises for perils covered
                 by a causes of loss-special form insurance policy, including
                 coverage against terrorism containing both replacement cost and
                 agreed amount endorsements or equivalent coverage; (ii)
                 commercial general liability insurance naming Lender as an
                 additional insured protecting Borrower and Lender against
                 liability for bodily injury or property damage occurring in, on
                 or adjacent to the Premises in commercially reasonable amounts;
                 (iii) boiler and machinery insurance if the property has a
                 boiler or is an office building; (iv) rental value insurance
                 for the perils specified herein for one hundred percent (100%)
                 of the Rents (including operating expenses, real estate taxes,
                 assessments and insurance costs which are lessee's liability)
                 for a period of twelve (12) months; (v) builders risk insurance
                 during all periods of construction; and (vi) insurance against
                 all other hazards as may be reasonably required by Lender,
                 including, without limitation, insurance against loss or damage
                 by

                                       15
<Page>

                 flood. Notwithstanding anything herein above to the contrary,
                 if neither: (i) property insurance without an exclusion for
                 terrorism, terrorist acts or similar perils ("Terrorism") nor;
                 (ii) a separate policy insuring specifically against Terrorism
                 is available at a cost which is in Lender's opinion is
                 commercially reasonable, taking into consideration, among other
                 things: (a) how properties similar in type, size, quality and
                 location are insured with respect to Terrorism; and (b) the
                 amount of coverage, premium and deductible applicable to such
                 insurance, then Lender agrees to waive the requirement to
                 provide insurance covering Terrorism until such coverage again
                 becomes available at a cost, which in Lender's opinion is
                 commercially reasonable.

          (b)    All insurance (including deductibles and exclusions) shall be
                 in form, content and amounts approved by Lender and written by
                 an insurance company or companies approved by Lender and rated
                 A-, class size VIII or better in the most current issue of
                 Best's Insurance Reports and which is licensed to do business
                 in the state in which the Premises are located or a
                 governmental agency or instrumentality approved by Lender. The
                 policies for such insurance shall have attached thereto
                 standard mortgagee clauses in favor of and permitting Lender to
                 collect any and all proceeds payable thereunder and shall
                 include a 30 day (except for nonpayment of premium, in which
                 case, a 10 day) notice of cancellation clause in favor of
                 Lender. All certificates of insurance (or policies if requested
                 by Lender) shall be delivered to and held by Lender as further
                 security for the payment of the Note and any other obligations
                 arising under the Loan Documents, with evidence of renewal
                 coverage delivered to Lender at least 30 days before the
                 expiration date of any policy. Borrower shall not carry or
                 permit to be carried separate insurance, concurrent in kind or
                 form and contributing in the event of loss, with any insurance
                 required in the Loan Documents.

          (c)    Unless Borrower provides evidence of the insurance coverage
                 required by this Deed of Trust, Lender may purchase insurance
                 at Borrower's expense to protect Lender's interests in
                 Borrower's collateral. This insurance may, but need not,
                 protect Borrower's interests. The coverage that Lender
                 purchases may not pay any claim that Borrower makes or any
                 claim that is made against Borrower in connection with the
                 collateral. Borrower may later cancel any insurance purchased
                 by Lender, but only after providing evidence that Borrower has
                 obtained insurance as required by this Deed of Trust. If Lender
                 purchases insurance for the collateral, Borrower will be
                 responsible for the costs of that insurance, including the
                 insurance premium, interest and any other charges Lender may
                 impose in connection with the placement of the insurance, until
                 the effective date of the cancellation or expiration of the
                 insurance. The costs of the insurance may be added to
                 Borrower's total outstanding balance or obligation. The costs

                                       16
<Page>

                 of the insurance may be more than the cost of insurance
                 Borrower may be able to obtain on its own.

          (d)    To the contrary notwithstanding, so long as there is no Event
                 of Default hereunder and so long as (i) the lease between
                 Borrower and Wal-Mart, Inc., a Delaware corporation
                 ("Wal-Mart") dated June 25, 1993, as amended, (ii) the lease
                 between Borrower and Home Depot U.S.A., Inc. ("Home Depot")
                 dated August 17,1993, as amended, (iii) the lease between
                 Borrower and The Sports Authority, Inc. ("TSA") dated August
                 23, 1993, as amended, or (iv) the lease between Borrower and
                 Boston Chicken, Inc. ("Boston Chicken") dated January 20, 1995,
                 as amended, or any lease to any replacement tenant under any of
                 such leases approved by Lender, remains in full force and
                 effect and there are no material breaches thereof beyond the
                 expiration of any applicable notice and cure periods, Lender
                 will allow Wal-Mart, Home Depot, TSA and Boston Chicken (each a
                 "Major Tenant") or any said replacement tenant approved by
                 Lender (a "Replacement Tenant") to keep in force the insurance
                 required herein with respect to their respective leased
                 premises, except with respect to coverage for rental insurance,
                 and such performance by such Major Tenant shall be deemed
                 performance by Borrower with respect to such required insurance
                 hereunder. All insurance coverages and requirements that are
                 not maintained by a Major Tenant or a Replacement Tenant in
                 accordance with the Lender's insurance requirements herein
                 shall at all times during the Loan be maintained by Borrower.

          (e)    To the contrary notwithstanding, so long as there is no Event
                 of Default hereunder and so long as (i) the lease between
                 Borrower and a Major Tenant remains in full force and effect
                 and there are no material breaches thereof beyond the
                 expiration of any applicable notice and cure periods, Lender
                 agrees to accept self-insurance by a Major Tenant for its
                 respective leased premises. Lender will only accept
                 self-insurance by a Major Tenant under the terms of its lease
                 if such Major Tenant maintains a minimum tangible net worth of
                 $100,000,000.00. All insurance coverages and requirements that
                 are not self insured by a Major Tenant in accordance with the
                 Lender's insurance requirements herein shall at all times
                 during the Loan be maintained by such Major Tenant or Borrower
                 (with the exception of coverage for rental insurance, which
                 shall be provided by Borrower).

     5.   (a)    Upon the occurrence of an Event of Default and upon request
                 of Lender, Borrower shall deposit with, and pay to Lender, on
                 each payment date specified in the Note, sums calculated by
                 Lender for payment of the following as they become due and
                 payable: (i) the estimated taxes and assessments assessed or
                 levied against the Premises, and (ii) the estimated

                                       17
<Page>

                 premiums for insurance required by the Loan Documents,
                 excluding commercial general liability insurance. Lender shall
                 use such deposits to pay the taxes, assessments and premiums
                 when the same become due. Borrower shall procure and deliver to
                 Lender, in advance, statements for such charges. If the total
                 payments made by Borrower under this paragraph exceed the
                 amount of payments actually made by Lender for taxes,
                 assessments and insurance premiums, such excess shall be
                 credited by Lender on subsequent deposits to be made by
                 Borrower. If, however, the deposits are insufficient to pay the
                 taxes, assessments and insurance premiums when the same shall
                 be due and payable, Borrower will pay to Lender any amount
                 necessary to make up the deficiency, five (5) business days
                 before the date when payment of such taxes, assessments and
                 insurance premiums shall be due. If at any time Borrower shall
                 tender to Lender, in accordance with the provisions of the Note
                 secured by this Deed of Trust, full payment of the entire
                 Indebtedness represented thereby, Lender shall, in computing
                 the amount of such Indebtedness, credit to the account of
                 Borrower any balance remaining in the funds accumulated and
                 held by Lender under the provisions of this paragraph. If there
                 is an Event of Default resulting in a public sale of the
                 Premises, or if Lender otherwise acquires the Premises after an
                 Event of Default, Lender shall apply, at the time of
                 commencement of such proceedings, or at the time the Premises
                 is otherwise acquired, the balance then remaining in the funds
                 accumulated under this paragraph as a credit toward any
                 delinquent or accrued taxes and then in such priority as Lender
                 elects to the other Indebtedness.

          (b)    Any funds held under this paragraph shall not constitute any
                 deposit or account of the Borrower or moneys to which the
                 Borrower is entitled upon demand, or upon the mere passage of
                 time, or sums to which Borrower is entitled to any interest or
                 crediting of interest by virtue of Lender's mere possession of
                 such deposits. Lender shall not be required to segregate such
                 deposits and may hold such deposits in its general account or
                 any other account and may commingle such deposits with any
                 other moneys of Lender or moneys which Lender is holding on
                 behalf of any other person or entity.

     6.   In the event of any damage to or destruction of the Premises, or any
          part thereof:

          (a)    Borrower will immediately notify Lender thereof in the manner
                 provided in this Deed of Trust for the giving of notices.
                 Lender shall have the right (which may be waived by Lender in
                 writing) to settle and adjust any claim under such insurance
                 policies required to be maintained by Borrower. In all
                 circumstances, the proceeds thereof shall be paid to Lender and
                 Lender is authorized to collect and to give receipts therefor.
                 Borrower agrees and acknowledges that such proceeds shall be
                 held by Lender without any

                                       18
<Page>

                 allowance of interest and that in any bankruptcy proceeding of
                 Borrower, all such proceeds shall be deemed to be "Cash
                 Collateral" as that term is defined in Section 363 of the
                 Bankruptcy Code. Provided that no Event of Default exists,
                 Borrower shall have the right to participate in any settlement
                 or adjustment; provided, however, that any settlement or
                 adjustment shall be subject to the written approval of Lender,
                 not to be unreasonably withheld.

          (b)    Such proceeds, after deducting therefrom any reasonable
                 expenses incurred by Lender in the collection thereof
                 (including but not limited to reasonable attorneys' fees and
                 costs), shall be applied by Lender to pay the Indebtedness
                 secured hereby including, but not limited to the Make Whole
                 Premium, whether or not then due and payable, provided,
                 however, that if no Event of Default exists at the time of such
                 application, no Make Whole Premium shall be due.

                 Notwithstanding anything hereinabove to the contrary,

                 (i)   in the event the casualty occurs more than six (6) months
                       prior to the Maturity Date and no Event of Default
                       exists, Lender shall apply such proceeds as outlined
                       below; provided, further, that Lender's rights in this
                       subparagraph are subject to Borrower's rights to use such
                       proceeds for rebuilding and restoring the buildings and
                       improvements as may be required or permitted by law in
                       effect at the time of the loss.

                       (A)  If the aggregate amount of such proceeds is less
                            than $250,000, Lender shall pay such proceeds
                            directly to Borrower, to be held in trust for Lender
                            and applied to the cost of rebuilding and restoring
                            the Premises.

                       (B)  If the aggregate amount of such proceeds equals or
                            exceeds $250,000 Lender shall disburse such amounts
                            of the proceeds as Lender reasonably deems necessary
                            for the repair or replacement of the Premises,
                            subject to the conditions set forth in paragraph
                            6(c) below.

                 (ii)  in the event (x) an Event of Default exists, or (y) the
                       casualty occurs during the last six (6) months prior to
                       the Maturity Date and Lender determines that the repair
                       and restoration of such casualty cannot be completed
                       prior to the Maturity Date, or (z) the conditions set
                       forth in paragraph 6(c) are not met, then Lender, in its
                       sole and absolute discretion may either:

                                       19
<Page>

                       (A)  declare the entire Indebtedness to be immediately
                            due and payable, provided, however, that if no Event
                            of Default exists, no Make Whole Premium shall be
                            due. All proceeds shall be applied toward payment of
                            the Indebtedness in such priority as Lender elects;
                            or

                       (B)  disburse such proceeds as Lender reasonably deems
                            necessary for the repair or replacement of the
                            Premises subject to those conditions set forth in
                            paragraph 6(c) which Lender in its sole and absolute
                            discretion may require.

          (c)    (i)   In the event that Borrower is to be reimbursed out of the
                       insurance proceeds or out of any award or payment
                       received with respect to a Taking, Lender shall from time
                       to time make available such proceeds, subject to the
                       following conditions: (a) there continues to exist no
                       Event of Default; (b) the delivery to Lender of
                       satisfactory evidence of the estimated cost of completion
                       of such repair and restoration work and any architect's
                       certificates, waivers of lien, contractor's sworn
                       statements, and other evidence of cost and of payment and
                       of the continued priority of the lien hereof over any
                       potential liens of mechanics and materialmen (including,
                       without limitation, title policy endorsements) as Lender
                       may reasonably require and approve; (c) the time required
                       to complete the repair and restoration work and for the
                       income from the Premises to return to the level it was
                       prior to the loss will not exceed the coverage period of
                       the rental value insurance required hereunder; (d) the
                       annual net cash flow (annual net operating income after
                       deduction for tenant improvements, leasing commissions,
                       annual replacement reserves, and a management fee) shall
                       equal or exceed 1.5 times the annual debt service on the
                       Note. Only net operating income from approved executed
                       Leases in effect on the Premises, having at least three
                       (3) years remaining prior to the expiration of their
                       term, with no uncured defaults, shall be used in Lender's
                       determination of the annual net cash flow; (e) Lender
                       approves the plans and specifications of such work before
                       such work is commenced if the estimated cost of
                       rebuilding and restoration exceeds 25% of the
                       Indebtedness or involves any structural changes or
                       modifications. If said plans and specifications
                       substantially comply with those previously approved by
                       Lender, Lender's approval shall not be unreasonably
                       withheld; (f) if the amount of any insurance proceeds,
                       award or other payment is insufficient to cover the cost
                       of restoring and rebuilding the Premises, Borrower shall
                       pay such cost in excess of such proceeds, award or other
                       payment before being entitled to reimbursement out

                                       20
<Page>

                       of such funds; (g) Borrower pays to Lender a
                       non-refundable processing fee equal to the greater of
                       $5,000.00 or .25% of the amount of such proceeds within
                       sixty (60) days of the occurrence of any such damage or
                       destruction and before Lender disburses any proceeds; and
                       (h) such other conditions to such disbursements, in
                       Lender's reasonable discretion, as would be customarily
                       required by a construction lender doing business in the
                       area where the Premises is located or which are otherwise
                       required by any rating agency rating a securitization
                       transaction with respect to the Loan.

                 (ii)  No payment made by Lender prior to the final completion
                       of the repair or restoration work shall, together with
                       all payments theretofore made, exceed 90% of the cost of
                       such work performed to the time of payment, and at all
                       times the undisbursed balance of said proceeds shall be
                       at least sufficient to pay for the cost of completion of
                       such work free and clear of all liens. Any proceeds
                       remaining after payment of the cost of rebuilding and
                       restoration shall, at the option of Lender, either be (a)
                       applied in reduction of the Indebtedness secured hereby,
                       provided, however, that if no Event of Default exists at
                       the time of such application, no Make Whole Premium shall
                       be due, or (b) paid to Borrower.

                 (iii) Repair and restoration of the Premises shall be commenced
                       promptly after the occurrence of the loss and shall be
                       prosecuted to completion diligently, and the Premises
                       shall be so restored and rebuilt to substantially the
                       same character and quality as prior to such damage and
                       destruction and shall comply with all Legal Requirements.

          (d)    Should such damage or destruction occur after foreclosure or
                 sale proceedings have been instituted, the proceeds of any such
                 insurance policy or policies, if not applied in rebuilding or
                 restoration of the Improvements, shall be used to pay (i) the
                 Indebtedness then due and owing in the event of a non-judicial
                 sale in such priority as Lender elects, or (ii) the amount due
                 in accordance with any decree of foreclosure or deficiency
                 judgment that may be entered in connection with such
                 proceedings, and the balance, if any, shall be paid to the
                 owner of the equity of redemption if it shall then be entitled
                 to the same, or otherwise as any court having jurisdiction may
                 direct.

          (e)    To the contrary notwithstanding, so long as there is no Event
                 of Default hereunder and so long as the lease with a Major
                 Tenant remains in full force and effect, Lender agrees that the
                 provisions of the lease with such Major Tenant governing the
                 application of insurance proceeds and

                                       21
<Page>

                 restoration shall apply with respect to that portion of the
                 Premises subject to such lease.

     7.   In the event of the commencement of a Taking affecting the Premises:

          (a)    Borrower shall notify Lender thereof in the manner provided in
                 this Deed of Trust for the giving of notices. Lender may
                 participate in such proceeding, and Borrower shall deliver to
                 Lender all documents requested by it to permit such
                 participation.

          (b)    Borrower shall cause the proceeds of any award or other payment
                 made relating to a Taking, to be paid directly to Lender.
                 Lender, in its sole and absolute discretion: (i) may apply all
                 such proceeds to pay the Indebtedness in such priority as
                 Lender elects, provided however, that if no Event of Default
                 exists at the time of such application no Make Whole Premium
                 shall be due; or (ii) subject to and in accordance with the
                 provisions set forth in paragraph 6(c) above, may disburse such
                 amounts of the proceeds as Lender reasonably deems necessary
                 for the repair or replacement of the Premises.

          (c)    Notwithstanding anything herein above to the contrary, provided
                 no Event of Default exists, Lender agrees to disburse the
                 proceeds received from any Inconsequential Taking, as
                 hereinafter defined, to Borrower for the repair and/or
                 replacement of the Premises. An Inconsequential Taking shall be
                 a Taking which (i) results in less than $250,000 in proceeds;
                 (ii) does not, in Lender's determination, materially or
                 adversely affect the Improvements, parking, access, ingress,
                 egress or use of the Premises; and (iii) does not trigger any
                 rights or options of tenants under the Leases.

          (d)    To the contrary notwithstanding, so long as there is no Event
                 of Default hereunder and so long as the lease with a Major
                 Tenant remains in full force and effect, Lender agrees that the
                 provisions of the lease with such Major Tenant governing the
                 application of the proceeds of a Taking shall apply with
                 respect to that portion of the Premises subject to such lease.

     8.   If by the laws of the United States of America or of any state or
          governmental subdivision having jurisdiction over Borrower or of the
          Premises or of the Loan evidenced by the Loan Documents or any
          amendments or modifications thereof, any tax or fee is due or becomes
          due or is imposed upon Lender in respect of the issuance of the Note
          hereby secured or the making, recording and registration of this Deed
          of Trust or otherwise in connection with the Loan Documents, the
          Environmental Indemnity or the Loan, except for Lender's income or
          franchise tax, Borrower covenants and agrees to pay such tax or fee in
          the manner required by such law and to hold harmless and indemnify
          Trustee and Lender, their

                                       22
<Page>

          successors and assigns, against any liability incurred by reason of
          the imposition of any such tax or fee.

     9.   (a)    Upon the occurrence of any Event of Default, Lender may, but
                 need not, make any payment or perform any act herein required
                 of Borrower, in any form and manner deemed expedient and may,
                 but need not, make full or partial payments of principal or
                 interest on prior encumbrances, if any, and purchase,
                 discharge, compromise or settle any tax lien or other prior
                 lien or title or claim thereof, or redeem from any tax sale or
                 forfeiture affecting said Premises, or contest any tax or
                 assessment. All moneys paid for any of the purposes herein
                 authorized and all reasonable expenses paid or incurred in
                 connection therewith, including but not limited to, reasonable
                 attorneys' fees and costs and reasonable attorneys' fees and
                 costs on appeal, and any other money advanced by Lender to
                 protect the Premises and the lien hereof, shall be so much
                 additional Indebtedness secured hereby and shall become
                 immediately due and payable without notice and with interest
                 thereon at the Default Rate from the date of expenditure or
                 advance until paid.

          (b)    In making any payment hereby authorized relating to taxes or
                 assessments or for the purchase, discharge, compromise or
                 settlement of any prior lien, Lender may make such payment
                 according to any bill, statement or estimate secured from the
                 appropriate public office without inquiry into the accuracy
                 thereof or into the validity of any tax, assessment, sale,
                 forfeiture, tax lien or title or claim thereof or without
                 inquiry as to the validity or amount of any claim for lien
                 which may be asserted.

     10.  If one or more of the following events (herein called an "EVENT OF
          DEFAULT" or "EVENTS OF DEFAULT" as the context so requires) shall have
          occurred:

          (a)    failure to pay when due any principal, interest, Make Whole
                 Premium or other Indebtedness, utilities, taxes or assessments
                 or insurance premiums required pursuant to the Loan Documents
                 or the Environmental Indemnity, and such failure shall have
                 continued for 5 days as to payment of any principal, interest
                 or taxes or assessments, or insurance premiums or for 5 days
                 after written notice specifying such default is given by Lender
                 to Borrower as to payment of any Make Whole Premium; or

          (b)    Borrower, Interest Owner or any guarantor voluntarily brings or
                 acquiesces to any of the following: (A) any action for
                 dissolution, act of dissolution or dissolution or the like of
                 Borrower, Interest Owner or any guarantor under the Federal
                 Bankruptcy Code as now or hereafter constituted; (B) the filing
                 of a petition or answer proposing the adjudication of Borrower,
                 Interest Owner or any guarantor as a bankrupt or its
                 reorganization or

                                       23
<Page>

                 arrangement, or any composition, readjustment, liquidation,
                 dissolution or similar relief with respect to it pursuant to
                 any present or future federal or state bankruptcy or similar
                 law; or (C) the appointment by order of a court of competent
                 jurisdiction of a receiver, trustee or liquidator of the
                 Premises or any part thereof or of Borrower, Interest Owner or
                 any guarantor or of substantially all of the assets of
                 Borrower, Interest Owner or any guarantor; or

          (c)    one or more of the items set forth in paragraph 10(b) above
                 occur which were either not (i) voluntarily brought by
                 Borrower, Interest Owner or any guarantor or (ii) acquiesced in
                 by Borrower, Interest Owner or any guarantor, and which are not
                 discharged or dismissed within 90 days after the action, filing
                 or appointment, as the case may be; or

                 With respect to the matters in (b) and (c) above for an
                 Interest Owner only, no Event of Default shall occur until an
                 interested party or Interest Owner asserts a claim or right
                 against Borrower or the Premises which delays or otherwise
                 affects Lender's rights, remedies, or interests granted under
                 the Loan Documents (whether or not such assertion is
                 successful).

          (d)    with respect to the matters not described in the other
                 subparagraphs of this paragraph 10, failure to duly observe or
                 perform any covenant, condition or agreement of the Borrower or
                 any guarantor contained in this Deed of Trust, the Guaranty,
                 the Note or the Assignment of Leases from Borrower to Lender or
                 in any other instrument or agreement which evidences or secures
                 the Loan (the "LOAN DOCUMENTS"), or in the Environmental
                 Indemnity and such failure shall have continued for 30 days
                 after Notice specifying such failure is given by Lender to
                 Borrower; or

                 If any failure to observe or perform under (d) above shall be
                 of such nature that it cannot be cured or remedied within 30
                 days, Borrower shall be entitled to a reasonable period of time
                 to cure or remedy such failure (not to exceed 90 days following
                 the giving of Notice), provided Borrower commences the cure or
                 remedy thereof within the 30 day period following the giving of
                 Notice and thereafter proceeds with diligence, as determined by
                 Lender, to complete such cure or remedy.

          (e)    the failure of Borrower to duly observe or perform any of the
                 covenants, conditions and agreements of the Borrower contained
                 in paragraph 2(f) of this Deed of Trust; or

          (f)    any representation when made by or on behalf of Borrower,
                 Interest Owner or any guarantor regarding the Premises, the
                 making or delivery of any of the Loan Documents or the
                 Environmental Indemnity or in any material

                                       24
<Page>

                 written information provided by or on behalf of Borrower,
                 Interest Owner or any guarantor in connection with the Loan
                 shall prove to be untrue or inaccurate in any material respect;
                 or

          (g)    the failure of Borrower to give Notice to Lender within 90 days
                 after the death of any individual who is personally liable for
                 any obligation under the Loan Documents or the Environmental
                 Indemnity, as Borrower, indemnitor or guarantor, whether or not
                 such individual had executed the Note or this Deed of Trust; or

          (h)    subject to the provisions of paragraph 2(f), the failure of
                 Borrower to provide Lender with an assumption agreement in form
                 and substance and executed by a person(s) or entity(ies)
                 acceptable to Lender in its sole discretion to assume the
                 obligations of any deceased individual who is personally liable
                 for any obligation under the Loan Documents or the
                 Environmental Indemnity, as Borrower, indemnitor or guarantor,
                 whether or not such individual had executed the Note or this
                 Deed of Trust, and such failure shall have continued for 90
                 days after the death of such individual; or

          (i)    the failure of Borrower to remain a Single-Purpose Entity; or

          (j)    notification of Lender by Borrower of Borrower's election
                 pursuant to Mo. Rev. Stat. Section 443.055 to terminate the
                 operation of this Deed of Trust as security for future advances
                 or future obligations;

          then, in each and every such case, the whole of said principal sum
          hereby secured shall, at the option of the Lender and without further
          notice to Borrower, become immediately due and payable together with
          accrued interest thereon, a Make Whole Premium calculated in
          accordance with the provisions of the Loan Documents and all other
          Indebtedness, and whether or not Lender has exercised said option,
          interest shall accrue on the entire principal balance and any interest
          or Make Whole Premium or other Indebtedness then due, at the Default
          Rate until fully paid or if Lender has not exercised said option, for
          the duration of any Event of Default.

     11.  Borrower agrees that if Lender accelerates the whole or any part of
          the principal sum hereby secured after the occurrence of an Event of
          Default, or applies any proceeds pursuant to the provisions hereof,
          Borrower waives any right to prepay the principal sum hereby secured
          in whole or in part without premium and agrees to pay, as yield
          maintenance protection and not as a penalty, a "MAKE WHOLE PREMIUM".
          However, in the event any proceeds from a casualty or Taking of the
          Premises are applied to reduce the principal balance under the Note,
          no Make Whole Premium shall be due so long as no Event of Default
          exists at the time of

                                       25
<Page>

          such application. The Make Whole Premium shall be the greater of one
          percent (1%) of the principal amount to be prepaid or a premium
          calculated as follows:

          (a)    Determine the "REINVESTMENT YIELD." The Reinvestment Yield will
                 be equal to the yield on the U.S. Treasury Issue ("PRIMARY
                 ISSUE")* published one week prior to the date of prepayment and
                 converted to an equivalent monthly compounded nominal yield.

          *At this time there is not a U.S. Treasury Issue for this prepayment
          period. At the time of prepayment, Lender shall select in its sole and
          absolute discretion a U.S. Treasury Issue with similar remaining time
          to the Maturity Date.

          (b)    Calculate the "PRESENT VALUE OF THE LOAN." The Present Value of
                 the Loan is the present value of the payments to be made in
                 accordance with the Note (all installment payments and any
                 remaining payment due on the Maturity Date) discounted at the
                 Reinvestment Yield for the number of months remaining from the
                 date of prepayment to the Maturity Date. In the event of a
                 partial prepayment as a result of the aforementioned
                 application of proceeds, the Present Value of the Loan shall be
                 calculated in accordance with the preceding sentence multiplied
                 by the fraction which results from dividing the amount of the
                 prepaid proceeds by the principal balance immediately prior to
                 prepayment.

          (c)    Subtract the amount of the prepaid proceeds from the Present
                 Value of the Loan as of the date of prepayment. Any resulting
                 positive differential shall be the premium.

          Notwithstanding anything herein to the contrary, during the last 90
          days prior to the Maturity Date, the Make Whole Premium shall not be
          subject to the one percent (1%) minimum and shall be calculated only
          as provided in (a) through (c) above.

     12.  Upon the occurrence of any Event of Default, in addition to any other
          rights or remedies granted or available to Lender hereunder or under
          the other Loan Documents, at law, in equity or otherwise, Lender may
          declare all sums secured hereby immediately due and payable by
          delivery to Trustee of written declaration of default and demand for
          sale and this Deed of Trust shall remain in force; and said Trustee or
          its successor or successors as hereinafter provided for, at the
          request of the legal holder of the aforesaid Note, may proceed to sell
          the Premises hereinbefore conveyed, or any part thereof, at public
          vendue or outcry at the place then customarily employed for that
          purpose in the county where the Premises are located (or, if located
          in the City of St. Louis, then the said City) to the highest bidder
          for cash, first giving the public notice as required by law of the
          time, terms and place of sale and description of the property to be
          sold, by advertisement

                                       26
<Page>

          published as is provided by the laws of the State of Missouri then in
          effect, and on such sale Trustee shall receive the proceeds thereof
          and shall execute a deed or deeds, in fee simple to the property sold,
          to the purchaser or purchasers thereof, and any deed made by Trustee
          in pursuance of the power herein granted and all recitals therein
          contained shall be conclusive proof of the facts therein set forth. At
          such sale, Lender shall be entitled to bid for or purchase the
          mortgaged Premises, the same as any third person might do. Trustee
          shall pay out the proceeds of such sale, first, the cost and expense
          of executing this trust, including attorneys fees of the Trustee and
          lawful compensation to the Trustee for its services as provided by
          statute, next, it shall repay any money advanced for taxes, insurance
          or other advances or charges with interest thereon, as above provided,
          next, the amount unpaid on said Note together with the interest
          accrued thereon and all overdue payments and charges provided for
          herein and all other sums or amounts due under the terms of any of the
          Loan Documents, and, the remainder, if any, shall be paid to such
          parties as may legally be entitled thereto.

     13.  Notwithstanding anything to the contrary in paragraph 12 or any other
          provision hereof, all rights of the Lender or any other legal holder
          of the Note, including without limitation, to commence a lawsuit for
          payment of the Note, to foreclose this Deed of Trust by judicial
          action or to take any other legal action to enforce this Deed of Trust
          by judicial action or to take any other legal action to enforce
          payment of said Indebtedness, by court proceedings for legal or
          equitable relief, or otherwise, shall remain intact and may be pursued
          by Lender or such other legal holder at its option and in its sole
          discretion.

     14.  (a)    In the event of such a sale of the Premises or any part thereof
                 and the execution of a deed or deeds therefor under these
                 trusts, any recital therein of the occurrence of an Event of
                 Default or of the giving or recording of any notice or demand
                 by Trustee or Lender regarding such sale shall be conclusive
                 proof thereof, and the receipt of the purchase money recited
                 therein shall fully discharge the purchaser from any obligation
                 for the proper application of the proceeds of sale in
                 accordance with these trusts.

          (b)    No Trustee shall be disqualified from acting as Trustee
                 hereunder, or from performing any of the duties as Trustee or
                 from exercising the rights, powers, and remedies herein granted
                 by reason of the fact such Trustee is an officer, employer or
                 stockholder of the Lender, or is interested, directly or
                 indirectly, as the holder of the Note hereby secured, Borrower
                 hereby expressly consenting to Trustee acting as such Trustee
                 irrespective of the fact that Trustee might otherwise be
                 disqualified for any of the foregoing reasons, and that any
                 interest which such Trustee or any successor shall have or may
                 acquire in the debt hereby secured, or the Premises hereby
                 conveyed, shall neither interfere with nor prevent their acting
                 as Trustee or from purchasing the Premises at the sale, and all
                 parties waive any

                                       27
<Page>

                 objection to Trustee or from purchasing the Premises at the
                 sale, and all parties waive any objection to Trustee having
                 acquiring any such interest in the debt or property aforesaid
                 and continuing to act as such Trustee.

     15.  Following the occurrence of an Event of Default, unless the same has
          been specifically waived in writing, Borrower shall forthwith upon
          demand of Trustee or Lender surrender to Lender possession of the
          Premises, and Lender shall be entitled to take actual possession of
          the Premises or any part thereof personally or by its agents or
          attorneys, and Lender in its discretion may, with or without force and
          with or without process of law, enter upon and take and maintain
          possession of all or any part of the Premises together with all
          documents, books, records, papers and accounts of the Borrower or the
          then owner of the Premises relating thereto, and may exclude Borrower,
          its agents or assigns wholly therefrom, and may as attorney-in-fact or
          agent of the Borrower, or in its own name as Lender and under the
          powers herein granted:

          (a)    hold, operate, maintain, repair, rebuild, replace, alter,
                 improve, manage or control the Premises as it deems judicious,
                 insure and reinsure the same and any risks related to Lender's
                 possession, operation and management thereof and receive all
                 Rents, either personally or by its agents, and with full power
                 to use such measures, legal or equitable, as in its discretion
                 it deems proper or necessary to enforce the payment or security
                 of the Rents, including actions for the recovery of Rent,
                 actions in forcible detainer and actions in distress for Rents,
                 hereby granting full power and authority to exercise each and
                 every of the rights, privileges and powers herein granted at
                 any and all times hereafter, without notice to Borrower; and

          (b)    conduct leasing activity pursuant to the provisions of the
                 Assignment of Leases.

          Neither Trustee nor Lender shall be obligated to perform or discharge,
          nor does either hereby undertake to perform or discharge, any
          obligation, duty or liability under any Lease. Except to the extent
          that the same is caused solely by Lender's gross negligence or willful
          misconduct, should Trustee or Lender incur any liability, loss or
          damage under any Leases, or under or by reason of the Assignment of
          Leases, or in the defense of any claims or demands whatsoever which
          may be asserted against Lender or Trustee by reason of any alleged
          obligations or undertakings on its part to perform or discharge any of
          the terms, covenants or agreements in any Lease, the amount thereof,
          including costs, expenses and reasonable attorneys' fees and costs,
          including reasonable attorneys' fees and costs on appeal, shall be
          added to the Indebtedness and secured hereby.

     16.  Upon the occurrence of an Event of Default, Trustee and Lender in the
          exercise of the rights and powers conferred upon them shall have the
          full power to use and

                                       28
<Page>

          apply the Rents, less costs and expenses of collection to the payment
          of or on account of the items listed in (a) - (c) below, at the
          election of Lender and in such order as Lender may determine as
          follows:

          (a)    to the payment of (i) the expenses of operating and maintaining
                 the Premises, including, but not limited to the cost of
                 management, leasing (which shall include reasonable
                 compensation to Trustee, Lender and their respective agent or
                 agents if management and/or leasing is delegated to an agent or
                 agents), repairing, rebuilding, replacing, altering and
                 improving the Premises, (ii) premiums on insurance as
                 hereinabove authorized, (iii) taxes and special assessments now
                 due or which may hereafter become due on the Premises, and (iv)
                 expenses of placing the Premises in such condition as will, in
                 the sole judgment of Lender, make it readily rentable;

          (b)    to the payment of any principal, interest or any other
                 Indebtedness secured hereby or any deficiency which may result
                 from any foreclosure sale;

          (c)    to the payment of established claims for damages, if any,
                 reasonable attorneys' fees and costs and reasonable attorneys'
                 fees and costs on appeal.

          The manner of the application of Rents, the reasonableness of the
          costs and charges to which such Rents are applied and the item or
          items which shall be credited thereby shall be within the sole and
          unlimited discretion of Lender. To the extent that the costs and
          expenses in (a) and (c) above exceed the amounts collected, the excess
          shall be added to the Indebtedness and secured hereby.

     17.  Upon the occurrence of any Event of Default, unless the same has been
          as specifically waived in writing, Lender may apply to any court
          having jurisdiction for the appointment of a receiver of the Premises.
          Such appointment may be made either before or after sale, without
          notice, without regard to the solvency or insolvency of Borrower at
          the time of application for such receiver and without regard to the
          then value of the Premises or the adequacy of Lender's security.
          Lender may be appointed as such receiver. The receiver shall have
          power to collect the Rents during the pendency of any foreclosure
          proceedings and, in case of a sale, during the full statutory period
          of redemption, if any, as well as during any further times when
          Borrower, except for the intervention of such receiver, would be
          entitled to collect such Rents. In addition, the receiver shall have
          all other powers which shall be necessary or are usual in such cases
          for the protection, possession, control, management and operation of
          the Premises during the whole of said period. The court from time to
          time may authorize the receiver to apply the net income in its
          possession at Lender's election and in such order Lender may determine
          in payment in full or in part of those items listed in paragraph 16.

                                       29
<Page>

     18.  (a)    Borrower agrees that all reasonable costs, charges and
                 expenses, including but not limited to, reasonable attorneys'
                 fees and costs, incurred or expended by Trustee or Lender
                 arising out of or in connection with any action, proceeding or
                 hearing, legal, equitable or quasi-legal, including the
                 preparation therefor and any appeal therefrom, in any way
                 affecting or pertaining to the Loan Documents, the
                 Environmental Indemnity, or the Premises, shall be promptly
                 paid by Borrower. All such sums not promptly paid by Borrower
                 shall be added to the Indebtedness secured hereby and shall
                 bear interest at the Default Rate from the date of such advance
                 and shall be due and payable on demand.

          (b)    Borrower hereby agrees that upon the occurrence of an Event of
                 Default and the acceleration of the principal sum secured
                 hereby pursuant to this Deed of Trust, to the full extent that
                 such rights can be lawfully waived, Borrower hereby waives and
                 agrees not to insist upon, plead, or in any manner take
                 advantage of, any notice of acceleration, any stay, extension,
                 exemption, homestead, marshaling or moratorium law or any law
                 providing for the valuation or appraisement of all or any part
                 of the Premises prior to any sale or sales thereof under any
                 provision of this Deed of Trust or before or after any decree,
                 judgment or order of any court or confirmation thereof, or
                 claim or exercise any right to redeem all or any part of the
                 Premises so sold and hereby expressly waives to the full extent
                 permitted by applicable law on behalf of itself and each and
                 every person or entity acquiring any right, title or interest
                 in or to all or any part of the Premises, all benefit and
                 advantage of any such laws which would otherwise be available
                 to Borrower or any such person or entity, and agrees that
                 neither Borrower nor any such person or entity will invoke or
                 utilize any such law to otherwise hinder, delay or impede the
                 exercise of any remedy granted or delegated to Lender herein
                 but will permit the exercise of such remedy as though any such
                 laws had not been enacted. Borrower hereby further expressly
                 waives to the full extent permitted by applicable law on behalf
                 of itself and each and every person or entity acquiring any
                 right, title or interest in or to all or any part of the
                 Premises any and all rights of redemption from any sale or any
                 order or decree of foreclosure obtained pursuant to provisions
                 of this Deed of Trust.

     19.  In accordance with and subject to the terms and conditions of the
          Assignment of Leases, Borrower hereby assigns to Lender directly and
          absolutely, and not merely collaterally, the interest of Borrower as
          lessor under the Leases of the Premises and the Rents payable under
          any Lease and/or with respect to the use of the Premises, or portion
          thereof, including any oil, gas or mineral lease, or any installments
          of money payable pursuant to any agreement or any sale of the Premises
          or any part thereof, subject only to a license, if any, granted by
          Lender to

                                       30
<Page>

          Borrower with respect thereto prior to the occurrence of an Event of
          Default. Borrower has executed and delivered the Assignment of Leases
          which grants to Lender specific rights and remedies in respect of said
          Leases and governs the collection of Rents thereunder and from the use
          of the Premises, and such rights and remedies so granted shall be
          cumulative of those granted herein.

          The collection of such Rents and the application thereof as aforesaid
          shall not cure or waive any Event of Default or notice of default
          hereunder or invalidate any act done pursuant to such notice, except
          to the extent any such Event of Default is fully cured. Failure or
          discontinuance of Lender at any time, or from time to time, to collect
          any such moneys shall not impair in any manner the subsequent
          enforcement by Lender of the right, power and authority herein
          conferred on Lender. Nothing contained herein, including the exercise
          of any right, power or authority herein granted to Lender, shall be,
          or be construed to be, an affirmation by Lender of any tenancy, Lease
          or option, or an assumption of liability under, or the subordination
          of the lien or charge of this Deed of Trust to any such tenancy, Lease
          or option. Borrower hereby agrees that, in the event Lender exercises
          its rights as provided for in this paragraph or in the Assignment of
          Leases, Borrower waives any right to compensation for the use of
          Borrower's furniture, furnishings or equipment in the Premises for the
          period such assignment of rents or receivership is in effect, it being
          understood that the Rents derived from the use of any such items shall
          be applied to Borrower's obligations hereunder as above provided.

     20.  All rights and remedies granted to Trustee or Lender in the Loan
          Documents shall be in addition to and not in limitation of any rights
          and remedies to which it is entitled in equity, at law or by statute,
          and the invalidity of any right or remedy herein provided by reason of
          its conflict with applicable law or statute shall not affect any other
          valid right or remedy afforded to Trustee or Lender. No waiver of any
          default or Event of Default under any of the Loan Documents shall at
          any time thereafter be held to be a waiver of any rights of the
          Trustee or Lender hereunder, nor shall any waiver of a prior Event of
          Default or default operate to waive any subsequent Event of Default or
          default. All remedies provided for in the Loan Documents are
          cumulative and may, at the election of Lender, be exercised
          alternatively, successively or concurrently. No act of Trustee or
          Lender shall be construed as an election to proceed under any one
          provision herein to the exclusion of any other provision or to proceed
          against one portion of the Premises to the exclusion of any other
          portion. Time is of the essence under this Deed of Trust and the Loan
          Documents.

     21.  By accepting payment of any sum secured hereby after its due date,
          Lender does not waive its right either to require prompt payment when
          due of all other sums or installments so secured or to declare a
          default for failure to pay such other sums or installments.

                                       31
<Page>

     22.  The usury provisions of paragraph 6 of the Note and the limitation of
          recourse liability provisions of paragraph 9 of the Note are fully
          incorporated herein by reference as if the same were specifically
          stated here.

     23.  In the event one or more provisions of the Loan Documents shall be
          held to be invalid, illegal or unenforceable in any respect, such
          invalidity, illegality or unenforceability shall not affect any other
          provision hereof, and the Loan Documents shall be construed as if any
          such provision had never been contained herein.

     24.  If the payment of the Indebtedness secured hereby or of any part
          thereof shall be extended or varied, or if any part of the security be
          released, all persons now or at any time hereafter liable therefor, or
          interested in said Premises, shall be held to assent to such
          extension, variation or release, and their liability and the lien and
          all provisions hereof shall continue in full force, the right of
          recourse against all such persons being expressly reserved by Lender
          notwithstanding such variation or release.

     25.  Upon payment in full of the principal sum, interest and other
          Indebtedness secured by the Loan Documents, these presents shall be
          null and void, and Trustee shall release this Deed of Trust and the
          lien hereof by proper instrument executed in recordable form.

     26.  (a)    Borrower hereby grants to Lender and its respective agents,
                 attorneys, employees, consultants, contractors and assigns an
                 irrevocable license and authorization to enter upon and inspect
                 the Premises and all facilities located thereon at reasonable
                 times, subject to the inspection rights provisions afforded to
                 Borrower under the Leases. Lender shall make reasonable efforts
                 to ensure that the operations of the tenants are not disrupted.

          (b)    In connection with any sale or conveyance of this Deed of
                 Trust, Borrower grants to Lender and its respective agents,
                 attorneys, employees, consultants, contractors and assigns an
                 irrevocable license and authorization to conduct, at Lender's
                 expense, a Phase I environmental audit of the Premises, subject
                 to the inspection rights provisions afforded to Borrower under
                 the Leases.

          (c)    In the event there has been an Event of Default or in the event
                 Lender has formed a reasonable belief, based on its inspection
                 of the Premises or other factors known to it, that Hazardous
                 Materials may be present on the Premises, then Borrower grants
                 to Lender and its respective agents, attorneys, employees,
                 consultants, contractors and assigns an irrevocable

                                       32
<Page>

                 license and authorization to conduct, at Borrower's expense
                 using Trileaf or the firm of Borrower's choice, subject to
                 Lender's reasonable approval, environmental tests of the
                 Premises, including without limitation, a Phase I environmental
                 audit, subsurface testing, soil and ground water testing, and
                 other tests which may physically invade the Premises or
                 facilities (the "TESTS"). The scope of the Tests shall be such
                 as Lender, in its sole discretion, determines is necessary to
                 (i) investigate the condition of the Premises, (ii) protect the
                 security interests created under this Deed of Trust, or (iii)
                 determine compliance with Environmental Laws, the provisions of
                 the Loan Documents and the Environmental Indemnity and other
                 matters relating thereto. Lender shall make reasonable efforts
                 to ensure that the operations of the tenants are not disrupted.

          (d)    Provided no Event of Default has occurred, Lender will provide
                 Borrower with reasonable notice of Lender's intent to enter,
                 inspect and conduct the Tests provided for in this paragraph.
                 In addition, Lender shall conduct such inspections and Tests
                 during normal business hours and use reasonable efforts to
                 minimize disruption of the lessees' business operations.

                 The foregoing licenses and authorizations are intended to be a
                 means of protection of Lender's security interest in the
                 Premises and not as participation in the management of the
                 Premises.

     27.  Within 15 days after any written request by any party to this Deed of
          Trust, the requested party shall certify, by a written statement duly
          acknowledged, the amount of principal, interest and other Indebtedness
          then owing on the Note, the terms of payment, Maturity Date and the
          date to which interest has been paid. Borrower shall further certify
          whether any defaults, offsets or defenses exist against the
          Indebtedness secured hereby. Borrower shall also furnish to Lender,
          within 30 days of its request therefor, tenant estoppel letters from
          such tenants of the Premises as Lender may reasonably require; which
          Lender shall not request more than one (1) time per annum.

     28.  (a)    Borrower shall furnish to Lender within 90 days after the end
                 of each fiscal year of Borrower, a detailed and analytical
                 financial report prepared in accordance with generally accepted
                 accounting principles consistently applied, certified in a
                 manner and otherwise in form acceptable to Lender covering the
                 full and complete operation of the Premises, including without
                 limitation: (i) income and expense statements, and (ii) a
                 report of the leasing status of the Premises as of the end of
                 such period, identifying the lessee, square footage leased,
                 rental amount, base rental increases, rental concessions and/or
                 rental deferments, if any, and commencement and expiration
                 dates under each Lease of the Premises and a listing of sales
                 volumes attained by lessees of the Premises under

                                       33
<Page>

                 percentage leases for the immediately preceding year, and (iii)
                 within 15 days after written request by Lender, an aged
                 accounts receivable report and an annual budget. Such reports
                 shall be prepared by an accountant who may be an employee of
                 Borrower, or of an affiliate of Borrower, acceptable to Lender.
                 In addition to the reports referred to herein, Borrower shall
                 promptly supply any additional information or records relating
                 to the Premises or its operation as Lender may from time to
                 time reasonably request.

          (b)    Within 15 days after any written request by Lender, Borrower
                 shall furnish to Lender, for the most recently completed fiscal
                 quarter of Borrower, the reports specified in (i) and (ii)
                 above.

          (c)    Within 15 days after any written request by Lender, Borrower
                 shall furnish to Lender, for the most recently completed fiscal
                 year, a combined or consolidated federal income tax return
                 filed by IWRRET. Said information shall be subject to Lender's
                 review.

     29.  Each notice, consent, request, report or other communication under
          this Deed of Trust or any other Loan Document (each, a "NOTICE"),
          which any party hereto may desire or be required to give to the other
          shall be deemed to be an adequate and sufficient notice if given in
          writing and service is made by either (i) registered or certified
          mail, postage prepaid, in which case notice shall be deemed to have
          beer received three (3) business days following deposit to U.S. mail;
          or (ii) nationally recognized overnight air courier, next day
          delivery, prepaid, in which case such notice shall be deemed to have
          been received one (1) business day following delivery to such
          nationally recognized overnight air courier. All Notices shall be
          addressed to Borrower at its address given on the first page hereof,
          or to Lender at c/o Principal Real Estate Investors, LLC, 801 Grand
          Avenue, Des Moines, Iowa 50392-1450, Attn: Commercial Real Estate
          Servicing, Loan No. 754044, or to such other place as any party may by
          written notice to the other parties designate as a place for service
          of notice, Borrower shall not be permitted to designate more than one
          place for service of Notice concurrently.

     30.  Lender, from time to time, may substitute another Trustee in place of
          the Trustee named herein, to execute the trusts hereby created; and
          upon such appointment, and without conveyance to the successor
          trustee, the successor trustee shall be vested with all the title,
          interest, powers, duties and trusts in the Premises hereby vested in
          or conferred upon Trustee herein named. Each such appointment and
          substitution shall be made by written instrument executed by the
          Lender containing reference to this Deed of Trust sufficient to
          identify it, which instrument, when recorded in the office of the
          County Recorder of the county or counties (or, in the case of the City
          of St. Louis, the Recorder of Deeds for such city) in which the
          Premises is situated, shall be conclusive proof of proper appointment
          of the successor trustee. The recital or statement, in any instrument

                                       34
<Page>

          executed by Trustee in pursuance of any of said trusts, of the due
          authorization of any agent of the Trustee executing the same shall for
          all purposes be conclusive proof of such authorization. In the event
          any foreclosure advertisement is running or has run at the time of an
          appointment of a substitute Trustee, the substitute Trustee may to the
          extent permitted by applicable law, consummate the advertised sale
          without the necessity of republishing such advertisement.

     31.  Trustee at any time, at Trustee's option, may commence and maintain
          suit in any court of competent jurisdiction and obtain the aid and
          direction of said court in the execution by it of the trusts or any of
          them, herein expressed or contained, and, in such suit, may obtain the
          orders or decrees, interlocutory or final of said court directing the
          execution of said trusts, and confirming and approving Trustee's acts,
          or any of them, or any sales or conveyances made by Trustee, and
          adjudging the validity thereof, and directing that the purchasers of
          the property sold and conveyed be let into immediate possession
          thereof, and providing for orders of court or other process requiring
          the Sheriff of the county in which said property is situated to place
          and maintain said purchasers in quiet and peaceable possession of the
          property so purchased by them, and the whole thereof.

     32.  Borrower has had the opportunity to fully negotiate the terms hereof
          and modify the draftsmanship of the Loan Documents and the
          Environmental Indemnity. Therefore, the terms of the Loan Documents
          and the Environmental Indemnity shall be construed and interpreted
          without any presumption, inference, or rule requiring construction or
          interpretation of any provision of the Loan Documents and the
          Environmental Indemnity against the interest of the party causing the
          Loan Documents and the Environmental Indemnity or any portion of it to
          be drafted. Borrower is entering into the Loan Documents and the
          Environmental Indemnity freely and voluntarily without any duress,
          economic or otherwise.

     33.  Borrower, forthwith upon request, at any and all times hereafter, at
          the expense of Borrower, will cause to be made, executed, acknowledged
          and delivered to Trustee, any and every deed or assurance in law which
          Trustee or counsel of Trustee shall reasonably advise or require for
          the more sure, effectual and satisfactory granting and confirming of
          said Premises unto Trustee.

     34.  The Trustee may resign at any time upon giving written notice to
          Borrower and Lender. Trustee shall not be liable or responsible for
          its acts or omissions hereunder, except for Trustee's own gross
          negligence or willful default, or be liable or responsible for any
          acts or omissions of any agent, attorneys or employee by him employed
          hereunder, if selected with reasonable care.

     35.  Trustee accepts this trust, when this Deed of Trust executed and
          acknowledged is made a public record as provided by law. Trustee is
          not obligated to notify any party hereto of pending sale under any
          other deed of trust or of any action or

                                       35
<Page>

          proceeding in which Borrower, Lender, or Trustee shall be a party
          unless brought by Trustee.

          Trustee hereby lets the Premises to Borrower and assigns until this
          Deed of Trust is released and satisfied or until default is made under
          the covenants and agreements hereof, on the following terms: Borrower
          and all persons claiming or possessing the Premises or any part
          thereof shall pay rent therefore during the term at one cent (1 CENTS)
          per month payable upon demand, and shall and will surrender peaceful
          possession of the Premises, and every part thereof, to Trustee
          immediately on such default and without notice or demand therefore,
          and thereupon Trustee shall be entitled to the Rents, revenues,
          incomes and profits therefrom as hereinabove provided; provided
          nothing in this Deed of Trust shall be construed to prevent Lender
          from having and taking every legal means to enforce payment of the
          Note, and each installment thereof, without having first enforced this
          Deed of Trust.

     36.  This Deed of Trust and all provisions hereof shall inure to the
          benefit of the heirs, successors and assigns of Lender and shall bind
          the heirs and permitted successors and assigns of Borrower.

     37.  This Deed of Trust shall be governed by, and construed in accordance
          with, the laws of the state of Missouri, without regard to its
          conflicts of law principles.

     38.  As used herein, the term "DEFAULT RATE" means a rate equal to the
          lesser of (i) four percent (4%) per annum above the then applicable
          interest rate payable under the Note or (ii) the maximum rate allowed
          by applicable law.

     39.  BORROWER AND LENDER EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
          WAIVE, TO THE EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY ACTIONS
          BROUGHT BY BORROWER, TRUSTEE OR LENDER IN CONNECTION WITH THIS DEED OF
          TRUST, ANY OF THE LOAN DOCUMENTS, THE INDEBTEDNESS SECURED HEREBY, OR
          ANY OTHER STATEMENTS OR ACTIONS OF LENDER.

     40.  This Deed of Trust and the Indebtedness secured hereby is for the sole
          purpose of conducting or acquiring a lawful business, professional or
          commercial activity or for the acquisition or management of real or
          personal property as a commercial investment, and all proceeds of such
          Indebtedness shall be used for said business or commercial investment
          purpose. Such proceeds will not be used for the purchase of any
          security within the meaning of the Securities Exchange Act of 1934, as
          amended, or any regulation issued pursuant thereto, including without
          limitation, Regulations U, T and X of the Board of Governors of the
          Federal Reserve System. This is not a purchase money deed of trust
          where a seller is providing financing to a buyer for the payment of
          all or any portion of the

                                       36
<Page>

          purchase price and the Premises secured hereby is not a residence or
          homestead or used for mining, grazing, agriculture, timber or farming
          purposes.

     41.  Unless Lender shall otherwise direct in writing, Borrower shall appear
          in and defend all actions or proceedings purporting to affect the
          security hereunder, or any right or power of the Lender, excluding any
          Federal regulatory proceedings against Lender that are not instituted
          because of any act or omission by Borrower, any Interest Owner or
          which result from the Premises. The Lender shall have the right to
          appear in such actions or proceedings. Borrower shall save Lender
          harmless from all reasonable costs and expenses, including but not
          limited to, reasonable attorneys' fees and costs and costs of a title
          search, continuation of abstract and preparation of survey incurred by
          reason of any action, suit, proceeding, hearing, motion or application
          before any court or administrative body in and to which Lender may be
          or become a party by reason hereof, excluding any Federal regulatory
          proceedings against Lender that are not instituted because of any act
          or omission by Borrower, any Interest Owner or which result from the
          Premises. Such proceedings shall include but not be limited to
          condemnation, bankruptcy, probate and administration proceedings, as
          well as any other action, suit, proceeding, right, motion or
          application wherein proof of claim is by law required to be filed or
          in which it becomes necessary to defend or uphold the terms of this
          Deed of Trust or the Loan Documents or otherwise purporting to affect
          the security hereof or the rights or powers of Lender. All money paid
          or expended by Lender in that regard, together with interest thereon
          from date of such payment at the Default Rate shall be additional
          Indebtedness secured hereby and shall be immediately due and payable
          by Borrower without notice.

     42.  Upon the occurrence of an Event of Default, unless the same has been
          specifically waived in writing, all Rents collected or received by
          Borrower shall be accepted and held for Lender in trust and shall not
          be commingled with the funds and property of Borrower, but shall be
          promptly paid over to Lender.

     43.  If more than one, all obligations and agreements of Borrower are joint
          and several.

     44.  This Deed of Trust may be executed in counterparts, each of which
          shall be deemed an original; and such counterparts when taken together
          shall constitute but one agreement.

                                       37
<Page>

     45.  THE FOLLOWING NOTICE IS INCLUDED IN COMPLIANCE WITH MO. REV. STAT.
          SECTION 432.045: ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND
          CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING
          PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT
          BORROWER AND LENDER FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY
          AGREEMENTS REACHED BY SUCH PARTIES COVERING SUCH MATTERS ARE CONTAINED
          IN THE LOAN DOCUMENTS, WHICH COLLECTIVELY ARE THE COMPLETE AND
          EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES HERETO,
          EXCEPT AS THEY MAY LATER AGREE IN WRITING TO MODIFY SUCH DOCUMENTS.

                      REMAINDER OF PAGE INTENTIONALLY BLANK
                            (Signatures on next page)

                                       38
<Page>

     IN WITNESS WHEREOF, Borrower has caused this Deed of Trust, Security
Agreement and Assignment of Rents to be duly executed and delivered as of the
date first hereinabove written.

                                          INLAND WESTERN TOWN AND COUNTRY
                                          MANCHESTER, L.L.C., a Delaware limited
                                          liability company

                                          By: INLAND WESTERN RETAIL REAL
                                              ESTATE TRUST, INC., a Maryland
                                              corporation, Member

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

STATE OF ILLINOIS      )
                       )
COUNTY OF ________     )

     On this ________ day of __________, in the year 2004, before me,
________________, a Notary Public in and for said state, personally appeared
_____________________, ___________________ of Inland Western Retail Real Estate
Trust, Inc., a Maryland corporation, Member of Inland Western Town And Country
Manchester, L.L.C., a Delaware limited liability company, known to me to be the
person who executed the within Deed of Trust on behalf of said corporation as
Member of Inland Western Town and Country Manchester, L.L.C., and acknowledged
to me that he/she executed the same for the purposes therein stated.

                               ----------------------------------------------
                               Notary Public in and for said County and State
My Commission Expires:
                               ----------------------------------------------
------------------------       Typed or Printed Name of Notary Public

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

THOMPSON & KNIGHT L.L.P.
1700 PACIFIC AVENUE, SUITE 3300
DALLAS, TEXAS 75201
ATTENTION: JEANNE M. BURTON

                                       39
<Page>

                                    EXHIBIT A

                               (Legal Description)

Address: 13861 and 13961 Manchester Road, Town and Country, Missouri

Tax Parcel (Locator) No. 22P-14-0064:

TRACT I:

Adjusted Parcel One (1) of Boundary Adjustment Plat of Tracts of Land in U.S.
Survey 128 and Fractional Section 32, Township 45 North, Range 5 East, City of
Town and Country, St. Louis County, Missouri, according to the plat thereof
recorded in Plat Book 346, Pages 563 and 564 of the St. Louis County Records.

TRACT II:

Easement estate appurtenant to Tract I for the purpose of effecting repair and
maintenance work with respect to that portion of the west bank of the creek,
stream or drainway created by Warranty Deed recorded in Book 10666, Page 1902,
Records of St. Louis County, Missouri, covering and affecting the real property
more particularly described therein.

TRACT III:

Easement estate appurtenant to Tract I created in Amended and Restated
Declaration of Covenants, Conditions, Easements and Restrictions for Manchester
Meadows dated March 31, 1995, recorded in Book 10462, Page 1004, in the
Recorder's Office for the County of St. Louis, Missouri, covering and affecting
the real property more particularly described therein.

                                        1
<Page>

                                    EXHIBIT B

                             Permitted Encumbrances

1.   Taxes for the year 2004 and subsequent years.

2.   Rights of tenants, as tenants only, under recorded tenant leases more
     particularly described in Exhibit B to the Assignment of Leases and Rents
     of even date herewith executed by Borrower in favor of Lender.

3.   Unrecorded Lease to The Sports Authority, Inc., for a term of 20 years,
     commencing upon the "date of occupancy", upon the terms and at the rentals
     as more fully set forth in said Lease, a notice of which is given by the
     Memorandum of Lease dated April 7, 1994 and filed June 14, 1994 in Book
     10228 at Page 2406. Contains options to renew.

4.   Memorandum of Lease executed by Manchester Meadows Limited Partnership,
     Landlord, to Boston Chicken, Inc., Tenant, filed April 4, 1995 in Book
     10464 at Page 459. Assignment of Lease executed by Boston Chicken, Inc., a
     Delaware corporation, to Golden Restaurant Operations, Inc., a Delaware
     corporation, filed in Book 12639 at page 359.

5.   Memorandum of Lease executed by Manchester Meadows Limited Partnership,
     Landlord, to Cybertel Cellular Telephone Company, Tenant, filed April 13,
     1995 in Book 10472 at Page 666.

6.   Notice of Lease to Payless Shoesource, Inc., according to Memorandum of
     Lease dated June 26, 1995 and filed in Book 10774 at Page 784, for a term
     of 10 years commencing as provided in said Lease, with one additional
     option of 5 years to extend the original terms thereof, upon the terms and
     conditions, and rental as more particularly described in said instrument.

7.   Lease executed by Manchester-Mason Limited Partnership, Lessor, to United
     States Postal Service, Lessee, filed in Book 11173 at Page 1348, for a term
     beginning May 1, 1997 and ending April 30, 2002, for a total of 5 years
     with renewal options for 2 additional periods of 5 years each, upon the
     terms and conditions, and rental as more particularly described in said
     instrument.

8.   Notice of Lease executed by Manchester Meadows Limited Partnership, a
     Missouri partnership, Lessor, to Builders Square, Inc., a Delaware
     corporation, Lessee, dated August 17, 1993 and filed in Book 11648 at Page
     1748, for a term of 25 years upon the terms and conditions, and rental as
     more fully set forth in said Lease.

     By the instrument filed in Book 11648 at Page 1759, the above Lease was
     assigned to Kmart Corporation.

                                        1
<Page>

     By the instrument filed in Book 11648 at Page 1767, the above Lease was
     assigned to Home Depot U.S.A.

9.   Notice of Lease executed by Manchester Meadows Limited Partnership, a
     Missouri limited partnership, Lessor, to PetsMart, Inc., a Delaware
     corporation, Lessee, dated August 29, 2003 and filed in Book 15633 at Page
     567, for a term of 15 years with 5 renewal options of 5 years each, upon
     the terms and conditions, and rental as more particularly described in said
     instrument.

10.  Maintenance Agreement with The Metropolitan St. Louis Sewer District,
     according to the instrument filed in Book 10229 at Page 550.

11.  Easement(s) according to the plat filed in Plat Book 336 at Page 16, as
     shown on plat of survey prepared by The Clayton Engineering Company, dated
     June 16, 1995, Project No. 92057 (last revised October 13, 1995).

12.  Easement(s) granted to State of Missouri for maintenance of drainage
     ditches and channels by instruments filed in Book 1296 at Page 121 and Book
     4623 at Page 20.

13.  Sewer Dedication to The Metropolitan St. Louis Sewer District, according to
     the instrument filed in Book 10983 at Page 1383.

14.  Building lines, easements, and restrictions according to the plat filed in
     Plat Book 346 at Pages 563 and 564.

15.  Building lines, easements, covenants, conditions, and restrictions
     according to the instrument(s) filed in Book 11751 at Page 1075.

16.  Easement Agreement with Lea Clayton and wife, according to the instrument
     filed in Book 11751 at Page 1086.

17.  Easement Agreement with Mark P. Thompson and wife, according to the
     instrument filed in Book 11751 at Page 1101.

18.  Easement Agreement with Gene Schwach and wife, according to the instrument
     filed in Book 11751 at Page 1116.

19.  Easement Agreement with Lee Hanley and wife, according to the instrument
     filed in Book 11751 at Page 1132.

20.  Easement Agreement with Dale E. Thebeau, Trustee, according to the
     instrument filed in Book 11751 at Page 1148.

21.  Building lines, easements, covenants, conditions, restrictions, terms, and
     provisions of Final Site Development Plan filed in Plat Book 324 at Pages
     11 through 15, Resource

                                        2
<Page>

     Protection Plan filed in Plat Book 324 at Page 16, and Amended Final Site
     Development Plan filed in Plat Book 330 at Pages 55 through 59.

22.  Amended and restated Declaration of Covenants, Conditions, Easements and
     Restrictions for Manchester Meadows, dated and filed March 31, 1995 in Book
     10462 at Page 1004, as assigned by Assignment of Declarant's rights between
     Manchester Meadows Limited Partnership, as assignor and Manchester-Mason
     Limited Partnership, as assignee, recorded in the Records of St. Louis
     County, Missouri, and as further assigned by Assignment of Declarant's
     Rights between Manchester-Mason Limited Partnership, as assignor, and
     Inland Western Town and Country Manchester, L.L.C., as assignee, recorded
     in the records of St. Louis County, Missouri.

23.  Agreement as to sewer easements between McGraw-Hill and Fee Fee Trunk Sewer
     Inc. by instrument recorded in Deed Book 6620, Page 2347.

24.  Easement granted to Fee Fee Trunk Sewer Inc., by instrument recorded in
     Deed Book 6620, Page 2364.

25.  Easement for highway traffic control purposes and traffic signal agreement
     by instrument recorded in Deed Book 6440, Page 484.

26.  Easement to the Metropolitan St. Louis Sewer District by instrument
     recorded in Deed Book 9692, Page 1311.

                                        3
<Page>

     IN WITNESS WHEREOF, Borrower has caused this Deed of Trust, Security
Agreement and Assignment of Rents to be duly executed and delivered as of the
date first hereinabove written.

                                          INLAND WESTERN TOWN AND COUNTRY
                                          MANCHESTER, L.L.C., a Delaware limited
                                          liability company

                                          By: INLAND WESTERN RETAIL REAL
                                              ESTATE TRUST, INC., a Maryland
                                              corporation, Member

                                              By:  /s/ Debra A. Palmer
                                                  -----------------------------
                                                  Name:  Debra A. Palmer
                                                  Title: Assistant Secretary

STATE OF ILLINOIS      )
                       )
COUNTY OF DUPAGE       )

     On this 20th day of August, in the year 2004, before me, Mary V. Cooper, a
Notary Public in and for said state, personally appeared Debra A. Palmer,
Assistant Secretary of Inland Western Retail Real Estate Trust, Inc., a Maryland
corporation, Member of Inland Western Town And Country Manchester, L.L.C., a
Delaware limited liability company, known to me to be the person who executed
the within Deed of Trust on behalf of said corporation as Member of Inland
Western Town and Country Manchester, L.L.C., and acknowledged to me that he/she
executed the same for the purposes therein stated.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial
seal at my office in Oak Brook, Illinois, the date and year last written above.

                               /s/ Mary V. Cooper
                               ----------------------------------------------
                               Notary Public in and for said County and State

My Commission Expires:             MARY V. COOPER
     10/18/07                  ----------------------------------------------
----------------------------   Typed or Printed Name of Notary Public

RECORDING REQUESTED BY AND                              OFFICAL SEAL
WHEN RECORDED RETURN TO:                               MARY V COOPER
                                              NOTARY PUBLIC - STATE OF ILLINOIS
THOMPSON & KNIGHT L.L.P.                       MY COMMISSION EXPIRES: 10/18/07
1700 PACIFIC AVENUE, SUITE 3300
DALLAS, TEXAS 75201
ATTENTION: JEANNE M. BURTON

                                       39<Page>

                                                                  Exhibit 10.317

                                    GUARANTY
                                 LOAN NO. 754044

     THIS GUARANTY (as the same may from time to time hereafter be modified,
supplemented or amended, the "GUARANTY") is made as of August 24, 2004 by INLAND
WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, having an office
at 2901 Butterfield Road, Oak Brook, Illinois 60523 ("GUARANTOR"), in favor of
PRINCIPAL LIFE INSURANCE COMPANY, an Iowa corporation, having a principal place
of business and post office address at c/o Principal Real Estate Investors, LLC,
801 Grand Avenue, Des Moines, Iowa 50392-1450 ("LENDER").

                                    RECITALS:

     Lender has agreed to make a loan (the "LOAN") in the original principal sum
of Thirty One Million Sixty Four Thousand Five Hundred Fifty and No/100 Dollars
($31,064,550.00) (the "LOAN AMOUNT") to INLAND WESTERN TOWN AND COUNTRY
MANCHESTER, L.L.C., a Delaware limited liability company ("Borrower"); and

     The Loan is evidenced by Borrower's secured promissory note made payable
and delivered to Lender (as the same may from time to time hereafter be
modified, amended, supplemented, extended or consolidated in writing, and any
note(s) issued in exchange therefor or replacement thereof, the "NOTE") and
further evidenced and secured by a "MORTGAGE" (it being agreed that "Mortgage"
as hereinafter used shall be construed to mean "mortgage" or "deed of trust" or
"trust deed" or "deed to secure debt" as the context so requires) on certain
real estate located in St. Louis County, Missouri, together with all existing
improvements constructed thereon, said Premises being more particularly
described in said Mortgage, and an Assignment of Leases ("ASSIGNMENT OF
LEASES"); and

     In connection with the Loan, the Borrower has also executed that certain
Environmental Indemnity ("ENVIRONMENTAL INDEMNITY") for the benefit of Lender
(the Note, Environmental Indemnity, Mortgage and Assignment of Leases and all
other instruments or agreements by which the Loan is evidenced or secured are
hereinafter collectively referred to as the "UNDERLYING INSTRUMENTS"); and

     It is a condition of Lender's agreement to make the Loan that Guarantor be
unconditionally liable for and personally guarantee the payment and performance
of certain liabilities and obligations of the Borrower under the Underlying
Instruments upon the terms and conditions as are hereinafter set forth; and

     WHEREAS, Guarantor is financially interested in Borrower and is materially
benefited by the consummation of the Loan and has agreed to unconditionally and
personally guarantee the payment and performance of certain liabilities and
obligations of Borrower under the Underlying Instruments upon the terms and
conditions as are hereinafter set forth.

                                        1
<Page>

     NOW, THEREFORE, in order to induce Lender to make the Loan to Borrower,
Guarantor intending to be legally bound, hereby makes the following
representations and warranties to the Lender and hereby covenants and agrees
with the Lender as follows:

1.   Guarantor absolutely, irrevocably and unconditionally guarantees to the
     Lender payment and the full, faithful and timely performance of any and all
     liabilities and obligations of Borrower whether now existing or hereafter
     incurred under the Environmental Indemnity and paragraph 9 of the Note, but
     excluding, specifically, subparagraphs (d) through (j) thereof (all of
     which payments, liabilities and obligations are hereinafter collectively
     referred to as the "Guaranteed Obligations").

2.   Guarantor absolutely, irrevocably and unconditionally waives notice of
     acceptance of this Guaranty and notice of any payment, liability or
     obligation to which it may apply, and waives presentment, demand of
     payment, protest, notice of dishonor or nonpayment of such liabilities
     under this Guaranty or any of the Underlying Instruments creating the
     Guaranteed Obligations and any suit or taking other action by the Lender
     against, and any other notice to, any party liable thereon or any property
     which may be security therefor.

3.   The Lender may at any time and from time to time without the consent of, or
     notice to, Guarantor, without incurring any responsibility to Guarantor and
     without impairing or releasing any of the obligations of Guarantor
     hereunder, upon or without any terms or conditions and in whole or in part:

     (a)  renew, alter or change the interest rate, manner, time, place or terms
          of payment or performance of any of the Guaranteed Obligations, or any
          liability incurred directly or indirectly in respect thereof,
          whereupon the guaranty herein made shall apply to the Guaranteed
          Obligations as so changed, extended, renewed or altered;

     (b)  sell, exchange, release, surrender, and in any manner and in any order
          realize upon or otherwise deal with any property at any time directly
          and absolutely assigned or pledged or mortgaged to secure the
          Guaranteed Obligations or any liabilities (including any of those
          hereunder) incurred directly or indirectly in respect thereof;

     (c)  exercise or refrain from exercising any rights against Borrower or any
          other person (including Guarantor) or otherwise act or refrain from
          acting with regard to the Underlying Instruments, Guaranteed
          Obligations or this Guaranty;

     (d)  settle or compromise any of the Guaranteed Obligations, any security
          therefor or any liability (including any of those hereunder) incurred
          directly or indirectly in respect thereof or hereof, and/or
          subordinate the payment of all or any part thereof to the payment of
          any liability of Borrower (whether or not then due) to creditors of
          Borrower other than the Lender and Guarantor;

                                        2
<Page>

     (e)  apply any sums in whatever manner paid or realized to any liability or
          liabilities of Borrower to the Lender regardless of what liability or
          liabilities of Borrower remain unpaid;

     (f)  consent to or waive any breach of or any act, omission or default
          under the Underlying Instruments or otherwise amend, modify or
          supplement any of such instruments or agreements; and/or

     (g)  sell, convey or assign, whether into a securitized transaction or
          otherwise, all or any part of Lender's interest in this Guaranty and
          the Underlying Instruments.

4.   (a)  No invalidity, irregularity or unenforceability of all or any part
          of the Underlying Instruments, the Guaranteed Obligations or this
          Guaranty, or of any security therefor, shall affect, impair or
          constitute a defense to this Guaranty. This Guaranty is a direct and
          primary obligation of Guarantor, and Guarantor's obligations hereunder
          are not as a surety. This is a guaranty of payment and performance,
          and not merely a guaranty of collection.

     (b)  Guarantor acknowledges and agrees that this Guaranty and Guarantor's
          obligations with respect to payments and performance under the
          Environmental Indemnity shall remain in full force and effect,
          notwithstanding the fact that the Note and payments due under the
          other Underlying Instruments have been paid in full.

5.   (a)  Notwithstanding any payment or payments made by Guarantor hereunder,
          Guarantor will not assert or exercise any right of the Lender or of
          such Guarantor against Borrower to recover the amount of any payment
          made by such Guarantor to the Lender by way of subrogation,
          reimbursement, contribution, indemnity or otherwise arising by
          contract or operation of law, and Guarantor shall not have any right
          of recourse to or any claim against assets or property of Borrower,
          whether or not the obligations of Borrower have been satisfied, all of
          such rights being herein expressly waived by Guarantor. The provisions
          of this paragraph shall survive the termination of this Guaranty, and
          any satisfaction and discharge of Borrower by virtue of any payment,
          court order or any applicable law.

     (b)  Notwithstanding the provisions of Section 5(a), Guarantor shall have
          and be entitled to all rights of subrogation otherwise provided by
          applicable law in respect of any payment Guarantor may make or be
          obligated to make under this Guaranty, and to assert and enforce the
          same, in each case on and after, but at no time prior to, the date
          (the "SUBROGATION TRIGGER DATE") which is 91 days after the date on
          which all obligations under the Underlying Instruments shall have been
          paid or performed in full, if and only if the existence of Guarantor's
          rights under this Section 5(b) would not make Guarantor a creditor (as
          defined in the

                                        3
<Page>

          Bankruptcy Reform Act of 1978, an amended, 11 U.S.C. Sections 101 et
          seq., and the regulations adopted and promulgated pursuant thereto) of
          Borrower in any insolvency bankruptcy, reorganization or similar
          proceeding commenced on or prior to the Subrogation Trigger Date.

     (c)  In the event that Guarantor shall advance or become obligated to pay
          any sums with respect to any obligation hereby guaranteed or in the
          event that for any reason whatsoever the Borrower or any subsequent
          owner of the collateral securing the Loan is now, or shall hereafter
          become, indebted to Guarantor, Guarantor agrees that the amount of
          such sums and of such Indebtedness together with all interest thereon,
          shall at all times be subordinate as to the lien, time of payment and
          in all other respects, to all sums, including principal, interest and
          other Indebtedness, at any time owing to the Lender under any of the
          Underlying Instruments. Nothing herein contained is intended or shall
          be construed to give to Guarantor any right to participate in any way
          in the right, title or interest of the Lender in or to the collateral
          securing the Loan, notwithstanding any payments made by Guarantor
          under this Guaranty, all such rights of participation being hereby
          expressly waived and released.

6.   Guarantor agrees that to the extent that Borrower makes a payment or
     payments to Lender, which payment or payments or any part thereof are
     subsequently invalidated, declared to be fraudulent or preferential, set
     aside or required, for any of the foregoing reasons or for any other
     reasons, to be repaid or paid over to a custodian, trustee, receiver or any
     other party under any bankruptcy act, state or federal law, common law or
     equitable cause, then to the extent of such payment or repayment, the
     obligation or part thereof intended to be satisfied shall be revived and
     continued in full force and effect as if such payment had not been made.

7.   Guarantor makes the following representations and warranties which shall
     survive the execution and delivery of this Guaranty:

     (a)  Guarantor is and, until the Indebtedness is paid in full, will
          continue to (i) be a duly organized and validly existing entity in
          good standing under the laws of the state of its formation, (ii) be
          duly qualified as a foreign entity in each jurisdiction in which the
          nature of its business makes such qualification necessary or
          desirable, (iii) have the requisite power and authority to carry on
          its business as now being conducted, (iv) have the requisite power to
          execute, deliver and perform its obligations under this Guaranty, and
          (v) comply with the provisions of all of its organizational documents,
          and the Legal Requirements of the state of its formation.

     (b)  The execution, delivery and performance of this Guaranty (i) are
          within the applicable powers of Guarantor; (ii) have been authorized
          by all requisite action; (iii) have received all necessary approvals
          and consents, corporate, governmental

                                        4
<Page>

          or otherwise; (iv) does not and will not violate, conflict with,
          result in a breach of or constitute (with notice or lapse of time, or
          both) a default under any provision of law, any order or judgment of
          any court or governmental authority, the articles of incorporation,
          by-laws, partnership, operating or trust agreement, or other governing
          instrument of Guarantor, or any indenture, agreement or other
          instrument to which Guarantor is a party or by which Guarantor or any
          of Guarantor's assets is or may be bound or affected; (v) does not and
          will not result in the creation or imposition of any lien, charge or
          encumbrance whatsoever upon any of Guarantor's assets; and (vi) does
          not and will not require any authorization or license from, or any
          filing with, any governmental authority or other body.

     (c)  This Guaranty constitutes the legal, valid and binding obligations of
          Guarantor, enforceable against Guarantor in accordance with its terms,
          except as may be limited by (i) bankruptcy, insolvency, reorganization
          or other similar laws affecting the rights of creditors generally, and
          (ii) general principles of equity (regardless of whether considered in
          a proceeding in equity or at law).

8.   Guarantor and Borrower are separate and distinct entities with no identity
     of interest with respect to any Indebtedness which may become owed or any
     payments which may be made hereunder. Borrower is not contractually bound
     to Guarantor with respect to any payments hereafter made under this
     Guaranty in any manner which would have the effect of imputing the
     liability of Guarantor hereunder to Borrower.

9.   Guarantor is related and/or affiliated with Borrower, has personal
     knowledge of and is familiar with Borrower's business affairs, books and
     records and has the ability to influence Borrower's financial decisions.
     Guarantor represents that Borrower is in sound financial condition as of
     the date of this Guaranty.

10.  Nothing herein contained shall in any manner affect the lien or priority of
     the Mortgage, and upon the occurrence of an Event of a Default, the Lender
     may invoke any remedies it may have under the Underlying Instruments, or
     this Guaranty, either concurrently or successively and the exercise of any
     one or more of such remedies shall not be deemed an exhaustion of such
     remedy or remedies or a waiver of any other remedy or remedies and shall
     not be deemed an election of remedies. Guarantor hereby specifically waives
     any defense to its performance under this Guaranty based upon an election
     of remedies by Lender, including but not limited to an election to
     foreclose by nonjudicial sale under any deed of trust, or security
     agreement and pursue any other remedy which destroys, lessens or otherwise
     affects Guarantor's subrogation rights and/or its rights to reimbursement
     from or to proceed against Borrower or any other person, when resulting
     from the judicial or nonjudicial foreclosure (under any deed of trust, or
     security agreement) or the selling or otherwise disposing of or collecting
     or applying any property, real or personal, securing the Note, or
     otherwise. The exercise by the Lender of any such remedies shall not
     release or discharge Guarantor from its obligations hereunder unless and
     until the full amount of the Indebtedness evidenced by the Note and secured
     as aforesaid has been fully paid and

                                        5
<Page>

     satisfied, and any such release or discharge shall be subject to the
     provisions of paragraph 4(b) hereof.

11.  This Guaranty shall remain in full force and effect until all obligations
     of the Borrower under the Underlying Instruments have been satisfied in
     full and are no longer subject to disgorgement under any applicable state
     or federal creditor rights or bankruptcy laws. No delay on the part of the
     Lender in exercising any options, powers or rights, or the partial or
     single exercise thereof, shall constitute a waiver thereof. No waiver of
     any rights hereunder, and no modification or amendment of this Guaranty,
     shall be deemed to be made by the Lender unless the same shall be in
     writing, duly signed on behalf of the Lender, and each such waiver (if any)
     shall apply only with respect to the specific instance involved and shall
     in no way impair the rights of the Lender or the obligations of Guarantor
     to the Lender in any other respect at any other time. This Guaranty and the
     rights and obligations of the Lender and of Guarantor hereunder shall be
     governed and construed in accordance with the laws of the state of
     Missouri, without regard to its conflicts of law principles and this
     Guaranty is binding upon Guarantor, Guarantor's heirs, personal
     representatives and permitted successors or assigns, and shall inure to the
     benefit of the Lender and its successors or assigns.

12.  Guarantor acknowledges that copies of the Underlying Instruments have been
     made available to Guarantor and that Guarantor is familiar with their
     contents. Guarantor affirmatively agrees that upon any Permitted Transfer
     effected in accordance with the provisions of the Underlying Instruments,
     it shall not be necessary for Guarantor to reaffirm its continuing
     obligations under this Guaranty, but Guarantor will do so upon request by
     Lender; provided, however, in the event a Permitted Transfer under items
     (ii) or (vi) of the Permitted Transfers occurs in compliance with the terms
     and conditions stated in the Mortgage, then Borrower may provide a
     substitute guarantor, acceptable to Lender in Lender's sole discretion, to
     assume the obligations of Guarantor under terms and conditions acceptable
     to Lender. Lender's approval of the substitute guarantor shall be deemed
     granted so long as such substitute guarantor is a Qualified Successor.

13.  GUARANTOR AND LENDER EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE,
     TO THE EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY ACTIONS BROUGHT BY
     GUARANTOR OR LENDER IN CONNECTION WITH THIS GUARANTY, ANY OF THE LOAN
     DOCUMENTS, THE INDEBTEDNESS SECURED HEREBY, OR ANY OTHER STATEMENTS OR
     ACTIONS OF LENDER.

14.  Each notice, consent, request or other communication under this Guaranty
     (each a "Notice") which any party hereto may desire or be required to give
     to the other shall be deemed to be adequate and sufficient notice if given
     in writing and service is made by either (i) registered or certified mail,
     postage prepaid, in which case such notice shall be deemed to have been
     received three (3) business days following deposit to U.S. mail; or (ii)
     nationally recognized overnight air courier, next day delivery, prepaid, in
     which case

                                        6
<Page>

     such notice shall be deemed to have been received one (1) business day
     following delivery to such nationally recognized overnight air courier. All
     Notices shall be addressed to Guarantor at its address given on the first
     page hereof, or to Lender at c/o Principal Real Estate Investors, LLC, 801
     Grand Avenue, Des Moines, Iowa 50392-1450, Attn: Commercial Real Estate
     Servicing, Loan No. 754044, or to such other place as any party may by
     notice in writing to the other parties designate as a place for service of
     notice.

15.  Each Guarantor (if more than one) whose signature appears below shall be
     deemed to be bound by the provisions of this Guaranty and the Guaranteed
     Obligations, whether each signature was affixed at the same or different
     times, and the term "Guarantor" as used herein shall be deemed to refer to
     each individually, as well as collectively, and each of the undersigned
     shall be jointly and severally liable for the Guaranteed Obligations
     hereunder, both personally and with recourse, irrespective of the recourse
     or non-recourse nature of the Underlying Instruments. Guarantor agrees that
     if this Guaranty is placed in the hands of an attorney for enforcement,
     Guarantor will reimburse Lender all expenses incurred, including attorney's
     fees.

16.  This Guaranty may be executed in counterparts, each of which shall be
     deemed an original; and such counterparts when taken together shall
     constitute but one agreement.

17.  Capitalized terms used herein and not otherwise defined shall have the
     meanings given to them in the Underlying Instruments.

     IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed
and delivered as of the date first set forth above.

                     (REMAINDER OF PAGE INTENTIONALLY BLANK
                            SIGNATURES ON NEXT PAGE)

                                        7
<Page>

                           SIGNATURE PAGE OF GUARANTOR
                                   TO GUARANTY

42-1579325
(Guarantor's Identification Number)

                                         INLAND WESTERN RETAIL REAL ESTATE
                                         TRUST, INC., a Maryland corporation

                                         By:    /s/ Valerie Medina
                                              ------------------------------
                                              Name:   Valerie Medina
                                                   -------------------------
                                              Title: Asst. Secretary
                                                    ------------------------

                                        8

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