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                                                                  Exhibit 10.346

                                  TOWSON CIRCLE

                             CONTRIBUTION AGREEMENT

       THIS CONTRIBUTION AGREEMENT (this "AGREEMENT"), dated as of
July__________, 2004 is made by and between, CORDISH TOWSON CIRCLE, LLC, a
Maryland limited liability company ("HOLDING COMPANY") AND INLAND TOWSON HC,
L.L.C., a Delaware limited liability company ("INLAND AFFILIATE").

                                    RECITALS

       A. Holding Company owns a fifty percent (50%) equity interest in Towson
Circle Joint Venture, a Maryland limited liability partnership ("SUBSIDIARY").
Subsidiary is the owner of the following (collectively, the "PROPERTY"):
(a)Towson Circle, a retail shopping center containing approximately 108,116
square feet of gross leasable area on approximately 10 acres of land located at
the intersection of Dulaney Valley and Joppa Roads, Towson, Baltimore County,
State of Maryland, (b) all of the right, title and interest in and to the
"landlord's interest" in and to all Leases (as defined in Section 4.9.2 below);
(c) all improvements located upon the Property (excluding improvements owned by
tenants or providers of utilities); (d) all personal property, if any, used in
connection with the operation of the Property (excluding personal property owned
by tenants or providers of utilities); (e) all shrubs, trees, plants and other
landscaping located upon the Property; (f) all easements, rights of way, and
other rights appurtenant to the Property; and (g) all of the right, title and
interest, if any, in and to the name "Towson Circle." A legal description of the
parcel of land that is included in the Property (the "LAND") is set forth on
EXHIBIT "A" hereto. The Property serves as collateral for the loan described on
EXHIBIT "B" (the "EXISTING LOAN"). The balance of the equity interest in
Subsidiary is owned by Heritage Towson Circle, LLC, a Maryland limited liability
company ("WITHDRAWING MEMBER").

       B. Simultaneously with the execution of this Agreement, Holding Company
and Withdrawing Member have executed and delivered each other an Agreement to
Reorganize and Retire (the "WITHDRAWING MEMBER AGREEMENT") that is substantially
in the form attached hereto as EXHIBIT "6.1.5".

       C. Inland Affiliate is wholly owned by Inland Western Retail Real Estate
Trust, Inc., a Maryland corporation ("INLAND"). On the CLOSING DATE (as that
term is defined in Section 1.7), simultaneously with the Closing, Inland
Affiliate and a Maryland limited liability company to be formed on the Closing
Date by the existing members of Holding Company and to be named Cordish TC, LLC
("CORDISH AFFILIATE") shall enter into a certain Amended and Restated Limited
Liability Company Agreement attached hereto as EXHIBIT "C" (the "OPERATING
AGREEMENT") concerning Holding Company. Pursuant to and subject to the terms and
conditions of this Agreement, Inland Affiliate will pay and make the CAPITAL
CONTRIBUTION (as that term is defined in Section 1.1 hereof)

HCDA\INLAND TC CONTRIBUTION AGR (CFJ 7-15)
CFJ JULY 15, 2004

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and pay the AGGREGATE EARNOUT AMOUNT (as that term is defined in Section 1.4
hereof) in exchange for which Inland Affiliate will become a MEMBER (as defined
in the Operating

Agreement) in Holding Company and will receive the Percentage Interest in
Holding Company specified in SCHEDULE A of the Operating Agreement.

       NOW THEREFORE, in consideration of the foregoing and the mutual
representations, warranties, covenants, and agreements herein contained, and for
Ten and 00/100 Dollars ($10.00) and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, Holding Company and
Inland Affiliate agree as follows:

                                    ARTICLE I
                        CAPITAL CONTRIBUTION AND EARNOUT

       1.1.   CAPITAL CONTRIBUTION. In consideration for its admission to
Holding Company, Inland Affiliate: (a) shall pay the sum of Twenty Eight Million
Four Hundred Fifty Thousand and 00/100 Dollars ($28,450,000.00), as increased or
decreased by the adjustments provided for in Section 1.2 hereof (the "CAPITAL
CONTRIBUTION") in accordance with the provisions of this Section 1.1 and Section
1.5 hereof; and (b) shall deposit and pay the AGGREGATE EARNOUT AMOUNT (as that
term is defined in Section 1.4 hereof) in accordance with the provisions of
Section 1.4 hereof. The Capital Contribution shall be paid as follows:

              1.1.1. EARNEST MONEY DEPOSIT; PAYMENT AT CLOSING. Upon execution
of this Agreement, Inland Affiliate shall: (a) by wire transfer of immediately
available funds, deposit with Chicago Title Insurance Company, a New York
corporation ("ESCROWEE"), attention Nancy Castro, the sum of Zero and 00/100
Dollars ($0.00) (the "EARNEST MONEY"); and (b) deliver a promissory note (the
"EARNEST MONEY NOTE") to Escrowee, made by Inland to the order of Holding
Company in the amount of Zero and 00/100 Dollars ($0.00). The Earnest Money Note
shall be in the form attached hereto as EXHIBIT "1.1.1." The Earnest Money and
the Earnest Money Note shall be held in escrow by Escrowee for the mutual
benefit of the parties hereto. The disposition of the Earnest Money and the
Earnest Money Note shall be governed by the terms of this Section 1.1.1 from and
after the date hereof. The Earnest Money shall be held by Escrowee in an
interest bearing account (any interest earned thereon shall be paid to Inland
Affiliate). At CLOSING (as that term is defined in Section 1.7): (i) the Earnest
Money and the Earnest Money Note, shall be disbursed by Escrowee in accordance
with Section 1.5 hereof; and (ii) any interest earned on the Earnest Money shall
be paid by Escrowee to Inland Affiliate. Escrowee shall be reimbursed equally by
the parties hereto for all of its out-of-pocket expenses. If Closing does not
occur, the Earnest Money Deposit shall be paid over in accordance with the
balance of this Section 1.1.1., all interest thereon shall be paid to Inland
Affiliate and the Earnest Money Note shall be delivered in accordance with the
balance of this Section 1.1.1. At Closing, immediately after the closing of all
of the transactions contemplated by this Agreement, Escrowee shall deliver the
Earnest Money Note to Inland Affiliate, which will have the right to cancel
same. The terms of the Earnest Money Note shall govern the Earnest Money Note.

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                     1.1.1.1. INLAND AFFILIATE'S DEFAULT; LIQUIDATED DAMAGES.
Holding Company and Inland Affiliate each acknowledge that it would be difficult
to ascertain the actual damages which would be suffered by Holding Company if
Inland Affiliate defaults in consummating the transactions contemplated by this
Agreement. Accordingly, if all conditions to Inland Affiliate's obligation to
consummate the transactions contemplated by this Agreement as set forth in
Section 6.2 of this Agreement have been satisfied or waived, but Inland
Affiliate fails, refuses or is unable to consummate the transactions
contemplated by this Agreement, then Holding Company's exclusive remedy shall be
to give Escrowee and Inland Affiliate written notice of Inland Affiliate's
default, receive and retain the release of the Escrow Money and the Escrow Money
Note and collect and retain all amounts due under the Earnest Money Note. Unless
Inland Affiliate gives notice to Holding Company and Escrowee disputing such
request for payment and disbursement, which notice is received by Escrowee
within ten (10) BUSINESS DAYS (as that term is defined in Section 8.21 hereof)
following receipt by Escrowee of Holding Company's request for such payment and
distribution, such payment and distribution shall be made on the fifteenth
(15th) Business Day following the date that Escrowee received such request. Upon
payment of the Earnest Money to Holding Company, the distribution of the Earnest
Money Note to Holding Company and the full payment by Inland to Holding Company
of the full amount of the Earnest Money Note, no party to this Agreement shall
have any further liability to any other party, and this Agreement shall be and
become null and void and of no further force and effect, either at law or in
equity.

                     1.1.1.2. HOLDING COMPANY'S DEFAULT. If all conditions to
Holding Company's obligations to consummate the transactions contemplated by
this Agreement as set forth in Section 6.1 have been satisfied or waived, but
Holding Company fails, refuses or is unable to consummate the transactions
contemplated by this Agreement, then Inland Affiliate shall have the right to
either: (i) give Escrowee and Holding Company written notice of Holding
Company's default, in which event fifteen (15) Business Days after Escrowee
receives such notice Escrowee shall pay the Earnest Money to Inland Affiliate
and deliver the Earnest Money Note to Inland Affiliate (unless Holding Company
gives notice to Inland Affiliate and Escrowee disputing such request for
payment, which notice is received by Escrowee within ten (10) Business Days
following receipt by Escrowee of Inland Affiliate's request for a distribution)
and no party to this Agreement shall have any further liability to any other
party and this Agreement shall be and become null and void and of no further
force and effect, either at law or in equity; or (ii) seek specific performance
of the obligations of Holding Company hereunder, together with an action for the
costs and expenses of such specific performance action, (including reasonable
attorney's fees).

                     1.1.1.3. RIGHTS OF ESCROWEE. In the event of any dispute as
to who is entitled to receive the Earnest Money and the Earnest Money Note,
Escrowee shall have the right to retain the funds the Earnest Money Note and
disburse them in accordance with the final order of a court of competent
jurisdiction, or to deposit the Earnest Money and the Earnest Money Note with
the Court, pending a final decision of the controversy. The provisions of this
Agreement concerning jury trial waiver, applicable law, attorney fees and venue
shall apply to such litigation. The parties hereto further agree that the
Escrowee shall not be liable for failure of the depository. The provisions of
Section 8.7

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hereof shall not apply to a dispute as to who is entitled to receive the Earnest
Money and the Earnest Money Note.

                    1.1.1.4. Disputes concerning who is entitled to receive the
Earnest Money shall not be subject to arbitration.

              1.1.3 Notwithstanding any provision or inference herein to the
contrary, each party hereto hereby acknowledges and agrees that Inland Affiliate
intends to fund a portion of the Capital Contribution by causing the Subsidiary,
simultaneously with the CLOSING (as defined below), to borrow funds from an
unrelated third party lender. The proceeds of any such loan shall be deemed to
constitute a portion of the "CAPITAL CONTRIBUTION" for all purposes of this
Agreement and the proceeds of any such loan shall be aggregated with the
proceeds of the Capital Contribution directly paid by Inland Affiliate for all
purposes of this Agreement (including, but not limited to, the provisions of
Section 1.5 hereof and EXHIBIT "1.5" attached hereto). Such borrowing, however,
shall not be a condition to the Closing.

              1.1.2. CAPITAL CONTRIBUTION AT CLOSING. On the CLOSING DATE (as
that term is defined in Section 1.7), Inland Affiliate shall deposit the balance
of the Capital Contribution (less the Earnest Money) with Escrowee pursuant to
Sections 1.3 and 1.5 hereof.

       1.2.   ADJUSTMENTS TO CAPITAL CONTRIBUTION. The following items shall be
prorated and adjusted between Holding Company and Inland Affiliate as of the
Closing Date and shall constitute either additions to or reductions of the
Capital Contribution:

              1.2.1. RESERVED

              1.2.2. REAL PROPERTY TAXES.

                     1.2.2.1. Real estate property taxes and assessments due and
payable prior to the Closing Date have been paid in full. As a result of such
payment, a portion of the real estate property taxes and assessments accrued,
assessed, and billed against the Property for the fiscal year July 1, 2004
through June 30, 2005 have been paid in advance by Subsidiary (the "TAXES PAID
IN ADVANCE"). At the Closing, the Capital Contribution shall be increased by an
amount calculated as follows: (i) divide the Taxes Paid in Advance by 365, and
(ii) multiply the quotient obtained thereby by the number of days from and
including the Closing Date through June 30, 2005 (the "POST CONTRIBUTION TAX
PERIOD"), and (iii) from the product obtained thereby, subtract all payments
made to Subsidiary by tenants under Leases (and any other party) attributable to
the Post Contribution Tax Period. After the Closing Date, if Subsidiary or
Holding Company receives payments from tenants under Leases (or any other party)
attributable to pre-Closing Date real estate tax contributions, such amounts
shall be remitted to Holding Company. The Holding Company shall immediately
deposit one-half of such amounts in the "OPERATIONS RESERVE" (as that term is
defined in Section 6.4 of the Operating Agreement) and pay one-half of such
amount to Withdrawing Member pursuant to the

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wire instructions for the Withdrawing Member contained in the ESCROW AGREEMENT
(as that term is defined in Section 1.3 hereof.)

                     1.2.2.2. If any general or special assessments (as
contrasted to ad valorem taxes) are payable in installments, Inland Affiliate
shall cause Subsidiary to continue to pay all such future installments and
Holding Company's only obligation shall be as to installments due prior to the
Closing Date with no obligation to prepay such gross amount and without any
reduction in the Capital Contribution.

              1.2.3. RENT. Rent, percentage rent and reimbursements for common
area maintenance charges, insurance premiums and other lease charges (other than
real estate taxes and assessments, which shall be accounted for and prorated as
provided in Section 1.2.2)(collectively, "RENTS") shall be accounted for and
prorated as follows: except as otherwise provided in this Agreement, Inland
Affiliate shall be entitled to all Rents accruing from (including) and after the
Closing Date, regardless of when paid or collected, and all such items, if any,
accruing prior to the Closing Date, regardless of when paid or collected, shall
be deposited and paid as follows: one-half of such amount shall be deposited to
the Operations Reserve and the balance shall be paid to Withdrawing Member
pursuant to the wire instructions for the Withdrawing Member contained in the
Escrow Agreement. Thus if the Closing Date is September 15, 2004, one-half of
the minimum rent collected for the month of September, 2004 will be credited to
Inland Affiliate and the balance shall be deposited into the Operations Reserve
and paid to the Withdrawing Member as provided above.. The parties further agree
that percentage rent for each tenant shall be prorated post closing based upon
the pre-and post Closing allocations described above. There shall be no credit
with respect to any unpaid accrued Rents owing from tenants of the Property as
of the Closing Date. Holding Company shall not retain in the Operations Reserve
any security deposits or prepaid rent to offset any unpaid accrued rent or other
unpaid amounts. With respect to any such unpaid amounts (x) Subsidiary, acting
exclusively by and through Cordish Affiliate shall retain the right to sue the
applicable tenant for collection of any such unpaid amounts (provided the costs
of suit are funded exclusively from the Operations Reserve) and, to the extent
the applicable lease permits, collection costs and interest (and, in such
regard, Inland Affiliate agrees to cooperate reasonably with any efforts to
collect the aforesaid unpaid amounts; provided, however, Cordish Affiliate shall
not be entitled to sue for possession or terminate any Lease), and provided
further that Inland Affiliate shall be reimbursed for any reasonable cost or
expense incurred by Inland Affiliate in connection with such cooperation, and
Subsidiary, acting exclusively by and through Cordish Affiliate, shall have the
right and power to prosecute and settle such suits, and (y) if any such unpaid
amounts are collected, such amounts shall be promptly deposited into the
Operations Reserve (and in such regard, if any amount is received from a tenant
as to which such tenant specifically informs its landlord in writing to which
lease obligation such payment is to be applied, such payment shall be so
applied; if such tenant does not so inform Subsidiary as to how a particular
payment is to be applied, such payment shall be applied first, on account of
amounts owed subsequent to the Closing Date; second, on account of past due
amounts owed prior to the Closing Date. Any balance remaining in any tenant's
common area maintenance escrow account shall be part of the reconciliation and
adjustments between the parties as of the Closing Date. Holding Company and
Subsidiary shall promptly deliver

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to Inland Affiliate all Rents received from tenants under Leases, which are
attributable to ownership periods beginning on (and including) and after the
Closing Date, except to the extent already included as a credit.

              1.2.4. UTILITIES. Except insofar as the same constitute expenses
pro ratable elsewhere under this Section 1.2, utility charges and deposits,
fuels and all other items of expense customarily prorated on the transfer of
properties similar to the Property shall be prorated on an accrual basis as of
the Closing Date on the basis of the most recent ascertainable bills or on other
reliable information with respect to each item of expense.

              1.2.5. OTHER. All other income and expenses of the Property.

              1.2.6. CLOSING COSTS. Inland Affiliate shall pay for, and the
Capital Contribution shall not be reduced by, the costs of title search and
insurance and surveys of the Property.

              1.2.7. For purposes of calculating pro rations and adjustments,
Inland Affiliate shall be deemed to be in title to the Property, and therefore
entitled to income therefrom and responsible for the expenses thereof, for the
entire day on which the Closing Date occurs. Except as otherwise described, all
pro rations and adjustments shall be final, except that, in the event of any
computational mistake or error is discovered on or before the first anniversary
of the Closing Date, the parties shall make an appropriate adjustment(s) in cash
between them to correct such mistake or error promptly after the discovery
thereof.

              1.2.8. The obligations set forth in Subsection 1.2.3 shall survive
the Closing for three (3) years following the Closing Date and the balance of
the obligations set forth in this Section 1.2 shall survive the closing
hereunder for one (1) year following the Closing Date.

       1.3.   ESCROW AMOUNT AND LIQUIDITY AMOUNT.

              1.3.1. (a) On the Closing Date, Subsidiary (acting by and through
Holding Company), Cordish Affiliate and Escrowee shall each execute and deliver
to each other that certain Escrow Agreement (the "ESCROW AGREEMENT") that is in
the form attached hereto as EXHIBIT "1.3 (a)". At the Closing, the Holding
Company, subject to the approval of Inland Affiliate, which approval shall not
be unreasonably withhold, shall complete the blanks in the Escrow Agreement in
accordance with the provisions of this Section 1.3.

                     (b) On the Closing Date, Subsidiary (acting by and through
Holding Company), Cordish Affiliate and Escrowee shall each execute and deliver
to each other that certain Liquidity Amount Escrow Agreement (the "LIQUIDITY
AMOUNT ESCROW AGREEMENT") that is in the form attached hereto as EXHIBIT
"1.3 (b)". At the Closing, the Holding Company, subject to the approval of
Inland Affiliate, which approval shall not be unreasonably withhold, shall
complete the blanks in the Liquidity Amount Escrow Agreement in accordance with
the provisions of this Section 1.3.

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              1.3.2. On the Closing Date Inland Affiliate shall, by wire
transfer of immediately available funds to the account designated by Escrowee,
deposit with Escrowee a portion of the Capital Contribution equal to the ESCROW
AMOUNT (as that term is defined in Section 1.3.3 (a) hereof) and a portion of
the Capital Contribution equal to the LIQUIDITY AMOUNT (as that term is defined
in Section 1.3.3 (b) hereof.) Escrowee shall invest, hold and disburse the
Escrow Amount in accordance with the terms of the Escrow Agreement and shall
invest, hold and disburse the Liquidity Amount in accordance with the terms of
the Liquidity Amount Escrow Agreement.

              1.3.3 (a) The term "ESCROW AMOUNT" means an amount equal to the
sum of: (i) all unpaid tenant improvement allowances due under any Lease signed
as of the Closing Date which shall be described on EXHIBIT "A" of the Escrow
Agreement; and (ii) all unpaid broker commissions or consultant fees due by
reason of any Lease signed as of the Closing Date, which shall be described on
EXHIBIT "A" of the Escrow Agreement; and (iii) a sum equal to six (6) months of
rent and reimbursable expenses under any Lease signed as of the Closing Date for
which the TENANT CONDITIONS are not then fulfilled, which shall be described on
EXHIBIT "A" of the Escrow Agreement; and (iv) a sum equal to the amount of rent
that would have been payable by a tenant after the Closing Date under a Lease
for which the Tenant Conditions have been fulfilled had an applicable "free rent
period" contained therein not apply, which shall be listed on EXHIBIT "A" of the
Escrow Agreement; and (v) for all tenant spaces vacant and not subject to a
Lease as of the Closing Date, an amount equal the sum of: (A) $6.00 per square
foot of Project Vacant Space as and for leasing commissions, which shall be
described on Exhibit "A" of the Escrow Agreement; (B) $41.96 per square foot of
Project Vacant Space as and for tenant improvement allowances, which amount
shall be described on Exhibit "A" of the Escrow Agreement; (C) the rental rate
provided on the Rent Roll for each tenant space that is a part of Project Vacant
Space as of the Closing Date for 6-months, which amount shall be described on
Exhibit "A" of the Escrow Agreement; and (D) for 6-months of reimbursable
expenses, which shall be described on EXHIBIT "A" of the Escrow Agreement.
Attached hereto as EXHIBIT "1.3.3" is an example of what EXHIBIT "A" of the
Escrow Agreement would consist of and contain in the event that the Closing Date
was the date hereof.

                    (b) The term "LIQUIDITY AMOUNT" means an amount equal to ten
percent (10%) of the Capital Contribution made by Inland Affiliate on the
Closing Date.

              1.3.4. The term "PROJECT VACANT SPACE" means any gross leasable
area of the Property, that, as of the Closing Date, has not satisfied the Tenant
Conditions. The term "TENANT CONDITIONS" shall have the meaning ascribed to it
in the Escrow Agreement.

       1.4.   AGGREGATE EARNOUT AMOUNT.

              1.4.1. On the Closing Date, certain space at the Property is
vacant and the parties agree such space does not constitute Project Vacant
Space. Such vacant space is identified on EXHIBIT "1.4.1." hereof and is called
herein "EARNOUT SPACE." Pursuant to the provisions of this

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Section 1.4, Inland Affiliate may be obligated to make an additional Capital
Contribution to Holding Company, which shall then deposit such sum fifty percent
(50%) to the Operations Reserve and pay one-half of such amount to Withdrawing
Member pursuant to the wire instructions for the Withdrawing Member contained in
the Escrow Agreement, in the aggregate, up to up to the AGGREGATE EARNOUT AMOUNT
(as that term is hereinafter defined.) From time to time during the twenty-four
(24) month period (I.E. two full years) commencing on the Closing Date Inland
Affiliate shall be obligated to deposit and pay each EARNOUT SPACE AMOUNT (I.E.,
the portion of the Aggregate Earnout Amount allocable to an Earnout Space) to
Holding Company at an "EARNOUT CLOSING" (on a Earnout Tenant by Earnout Tenant
basis); PROVIDED: (a) PROJECT COMPLETION OF THE EARNOUT SPACE (as that term is
defined in Section 1.4.6 hereof) shall have been achieved for such Earnout
Space; and (b) the Tenant Conditions shall have been satisfied with regard to
the Earnout Tenant for such Earnout Space (collectively, the "EARNOUT
CONDITIONS"). If the Earnout Conditions for a particular Earnout Space have not
been satisfied prior to the expiration of such twenty-four (24) month period,
Inland Affiliate shall not be obligated to distribute and pay the Earnout Space
Amount for such Earnout Space and Cordish Affiliate and Withdrawing Member shall
be deemed to have waived their right to the Earnout Space Amount for such
Earnout Space. Notwithstanding the provisions of this Section 1.4.1, in the
event that on the expiration of such twenty-four (24) month period, a Lease has
been executed for an Earnout Space and the tenant under such Lease is in
occupancy of the Earnout Space and constructing improvements therein, but the
Earnout Conditions for such Earnout Tenant have not been satisfied, such
twenty-four (24) month period shall be automatically extended to twenty-seven
(27) months. The term "AGGREGATE EARNOUT AMOUNT" means for each Earnout Space
(I.E., the portion of two currently vacant spaces leased to an EARNOUT TENANT
(as that term is hereinafter defined) pursuant to an EARNOUT LEASE (as that term
is hereinafter defined)), an amount equal to the first full twelve (12) months
base rent following the satisfaction of the Earnout Conditions multiplied by
11.4396, as same may be adjusted in accordance with the provisions of Section
1.4.2 hereof.

              1.4.2. Cordish Affiliate shall have the right, during the
twenty-four (24) months following the Closing Date, to attempt to lease the
Earnout Space and cause the Earnout Conditions for the Earnout Space to occur.
In the event that Cordish Affiliate is able to successfully lease any such
space, such lease or leases and tenant or tenants shall be deemed an EARNOUT
LEASE or LEASES and EARNOUT TENANT or TENANTS for purposes of this Section 1.4.
When doing so, Cordish Affiliate shall comply with the provisions of the Leasing
Agreement. The Earnout Amount for each such space is an amount equal to the
first full twelve (12) months of base rent following the satisfaction of the
Earnout Conditions multiplied by 11.4396. However, in the event that the Earnout
Conditions for an Earnout Space has not been satisfied by the first day of the
seventeenth full calendar month following the Closing Date, but such Earnout
Conditions are satisfied prior to the expiration of the twenty-four (24) month
period referred to above, as same may be extended as provided above, the Earnout
Space Amount allocated to such space shall be adjusted pursuant to the formula
attached hereto as EXHIBIT "1.4.2".

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              1.4.3. Each Earnout Closing shall occur upon satisfaction of the
Earnout Conditions for an Earnout Space upon ten (10) business Days prior
written notice by Cordish Affiliate to Inland Affiliate. The Earnout Closing
shall occur on a date, time and place set forth in such notice to Inland
Affiliate by Cordish Affiliate. At the Earnout Closing, Inland Affiliate shall:
first deposit an amount equal to the Earnout Space Costs for such Earnout Space
to the Operations Reserve; second, shall deposit fifty percent (50%) of the
remaining balance of the Earnout Space Amount allocated to such Earnout Space
after payment of the applicable Earnout Space Costs to the Operations Reserve;
and third pay the remaining balance of the Earnout Space Amount allocable to
such Earnout Space after payment of the applicable Earnout Space Costs to
Withdrawing Member pursuant to the wire instructions for the Withdrawing Member
contained in the Escrow Agreement.

              1.4.4. The EARNOUT SPACE COSTS (as that term is hereinafter
defined) shall be paid from the Operations Reserve. On or before Closing, all
construction contracts with respect to the Earnout Space (which construction
contracts are attached hereto as EXHIBIT "1.4.4") in existence prior to Closing
shall be assigned by Subsidiary to Cordish Affiliate and assumed, performed and
discharged thereafter by Cordish Affiliate, in accordance with the provisions of
the LEASING AGREEMENT (as that term is defined in Section 3.4 hereof). In
addition, notwithstanding anything to the contrary contained herein, Inland
Affiliate shall pay each installment of tenant allowance due and owing an
Earnout Tenant (which amount shall reduce the Earnout Space Amount for such
Earnout Tenant) within ten (10) Business Days of the date that Cordish Affiliate
requests Inland Affiliate to pay such installment and provides Inland Affiliate
with evidence that such Earnout Tenant has satisfied the conditions in its Lease
for such payment. The term "EARNOUT SPACE COST" means the costs incurred by
Cordish Affiliate in satisfying the Earnout Conditions for an Earnout Space,
such as fulfillment of the initial construction obligations of Subsidiary under
an Earnout Lease and tenant improvement costs, tenant allowance costs and
leasing commissions incurred in connection with an Earnout Space. Cordish
Affiliate shall provide Inland Affiliate with a certification by Cordish
Affiliate of the Earnout Space Cost for each Earnout Space.

              1.4.5. With regard to each Earnout Space, prior to the
contribution and payment of the Earnout Space Amount for such Earnout Space,
Inland Affiliate shall: (a) cause Subsidiary to comply with all of the terms and
provisions of the Leasing Agreement and the Earnout Lease for such Earnout
Space; (b) promptly forward all notices it receives from the Earnout Tenant
under such Earnout Lease to Cordish Affiliate; (c) fully cooperate, and cause
Subsidiary to fully cooperate, with the efforts of Cordish Affiliate to satisfy
the Earnout Conditions for such Earnout Space; and (d) not permit Subsidiary to
enter into any amendments or any modifications of such Earnout Leases without
first obtaining the consent of Cordish Affiliate, which consent Cordish
Affiliate may withhold in its commercially reasonable discretion.

              1.4.6. "PROJECT COMPLETION OF THE EARNOUT SPACE" for each Earnout
Tenant means the satisfaction of the following described requirements: (1)
certificates of substantial completion (subject only to an attached punch list)
as to Subsidiary's work (as delegated to Cordish Affiliate) for construction of
the applicable Earnout Space shall have been issued and signed by an architect
selected by Cordish Affiliate stating that: (A) the "landlord's work" under the
applicable Earnout

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Lease has been substantially completed in accordance with the terms, conditions
and provisions of the applicable Earnout Lease, and (B) all material applicable
governmental rules, regulations and requirements have been satisfied in
connection with the work performed by Cordish Affiliate in connection with the
applicable Earnout Space; (2) the applicable Earnout Tenant shall not have filed
for bankruptcy, insolvency, or reorganization protection pursuant to any statute
either of the United States or any state after the date of Closing and prior to
the date of the applicable Earnout Closing and such filing has not been
dismissed or withdrawn or the Earnout Tenant has not been reorganized; (3)
Cordish Affiliate shall have caused the survey to be later-dated to show the "as
built" Property and related improvements (to the extent EXHIBIT "1.4" indicates
that this is a requirement for such Earnout Tenant); (4) Cordish Affiliate shall
have delivered to the Title Company lien waivers for work performed by or on
behalf of Cordish Affiliate in connection with the applicable Earnout Space (or
Cordish Affiliate has provided the Title Company with an indemnity acceptable to
the Title Company in lieu of such lien waivers) (to the extent EXHIBIT "1.4"
indicates that this is a requirement for such Earnout Tenant); and (5) the Title
Company shall have performed a bring-to-date title search confirming that no new
liens have attached to the Property between the Closing and the completion of
the Earnout Space (to the extent EXHIBIT "1.4" indicates that this is a
requirement for such Earnout Tenant.) Inland Affiliate shall cause the Title
Company and the surveyor who prepared the survey referred to above to fully
cooperate with the efforts of Cordish Affiliate to satisfy the provisions of
this Subsection concerning title insurance and surveys.

              1.4.7. Notwithstanding anything to the contrary contained in this
Section 1.4, on the date that a tenant of an Earnout Space has commenced payment
of rent and/or expenses prior to the satisfaction of the Earnout Conditions,
Inland Affiliate shall thereafter, until the Earnout Conditions for such Earnout
Space has been satisfied, within five (5) Business Days of receipt by of any
such amount, deposit, fifty percent (50%) of such amount to the Operations
Reserve and and pay one-half of such amount to Withdrawing Member pursuant to
the wire instructions for the Withdrawing Member contained in the Escrow
Agreement.

              1.4.8. The provisions of this Section 1.4 shall survive Closing.

       1.5.   METHOD OF CONTRIBUTION AND DISTRIBUTION. On the Closing Date,
Inland Affiliate shall: (a) deposit the Capital Contribution (exclusive of the
Escrow Amount, the Liquidity Amount and the Earnest Money, to the extent the
Earnest Money is being held by Escrowee), adjusted pursuant to Section 1.2, with
Escrowee by wire transfer of immediately available funds; (b) deposit the Escrow
Amount with Escrowee by wire transfer of immediately available funds; and (c)
deposit the Liquidity Amount with Escrowee by wire transfer of immediately
available funds. Escrowee shall cause the Capital Contribution (including the
Earnest Money, the Escrow Amount and the Liquidity Amount) to be distributed or
retained in accordance with EXHIBIT "1.5".

       1.6.   POST CLOSING DATE ADJUSTMENTS AND RELEASE OF LETTERS OF CREDIT.

              1.6.1. On the Closing Date, Holding Company shall cause the
Existing Loan to be paid in full or fully defeased, pursuant to EXHIBIT "1.6".
All funds paid to Subsidiary on and after

                                       10
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the Closing Date in connection with the Existing Loan, such as the release of
any escrows for real estate taxes and insurance, capital improvements and
leasing expenses shall be paid to Cordish Affiliate. In addition, Holding
Company, exclusively acting by and through Cordish Affiliate shall have the
right to cause Subsidiary to close all bank accounts and checking accounts of
Subsidiary and/or Holding Company that exist prior to the Closing Date and
retain such amounts. By execution of this Agreement, Inland Affiliate and
Holding Company agree and acknowledge and confirm that all such accounts have
been and are irrevocably assigned to the exclusive control of Cordish Affiliate.

              1.6.2. Attached hereto as EXHIBIT "1.6.2." hereof contains a list
of letters of credit that were posted by Subsidiary with various governmental
authorities concerning the Property. If, when and as each such letter of credit
is released to Subsidiary, Subsidiary shall promptly deliver same to Cordish
Affiliate and Cordish Affiliate shall have the right to cause same to be
surrendered to the issuing bank and any collateral posted in connection
therewith delivered to Cordish Affiliate or the affiliate of Cordish Affiliate
(other than Subsidiary or Holding Company) that posted same. Inland Affiliate
shall cause the Subsidiary to reasonably cooperate with the efforts of Cordish
Affiliate to obtain the release of such letters of credit.

              1.6.3. The provisions of this Section 1.6 shall survive Closing.

       1.7.   CLOSING; CLOSING DATE. Upon the terms and subject to the
conditions of this Agreement, the transactions contemplated by this Agreement
shall take place at a closing (the "CLOSING") to be held at the offices of The
Cordish Company, 601 East Pratt Street, 6th Floor, Baltimore, Maryland, at 10:00
a.m., Baltimore time, or at such other location in Baltimore, Maryland selected
by Holding Company, on the second Business Day following the satisfaction or
waiver of all of the conditions to the obligations of the parties set forth in
ARTICLE VI. The day on which the Closing takes place is referred to herein as
the "CLOSING DATE."

                                   ARTICLE II
                         EVENTS OCCURRING AT THE CLOSING

       2.1.   DELIVERIES BY INLAND AFFILIATE. At the Closing, Inland Affiliate
will unconditionally deliver to Cordish Affiliate the following:

              2.1.1. A copy of resolutions of Inland Affiliate and Inland,
certified by its Secretary, in the case of Inland, or the Secretary of its sole
member, in the case of Inland Affiliate, authorizing or ratifying its execution
and delivery of this Agreement and the Other Agreements, and the consummation of
the transactions contemplated hereby and thereby.

              2.1.2. The Other Agreements, which shall be duly executed by
Subsidiary, Inland Affiliate and/or Inland, as appropriate.

                                       11
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              2.1.3. A copy of the organizational documents of Inland Affiliate
and Inland, certified as of a date within five (5) days of the Closing Date by
the Secretary of State of the state of organization.

              2.1.4. A certificate of its Secretary, in the case of Inland, and
the Secretary of its sole member, in the case of Inland Affiliate, attaching
thereto a true and complete copy of its Bylaws (in the case of Inland) and
Operating Agreement (in the case of Inland Affiliate) as in effect on the
Closing Date for Inland Affiliate and Inland.

              2.1.5. A certificate of the Secretary of its sole member stating
that, to the best of his information and belief, the representations and
warranties contained herein of Inland Affiliate are true, complete, and accurate
in all material respects at and as of the Closing Date.

              2.1.6. The opinion of counsel for Subsidiary, Inland Affiliate and
Inland in form and substance similar to EXHIBIT "2.1.6", dated the Closing Date.

              2.1.7. A copy of the owner's title insurance policy, with all
instruments, documents and plats referenced to therein, for the Property and the
survey of the Property prepared for Inland Affiliate or the Subsidiary in
connection with this Agreement.

              2.1.8. Such other documents and instruments as reasonably may be
required by Holding Company, exclusively acting by and through Cordish
Affiliate, and the title company issuing the new owner's policy for Subsidiary
on the Closing Date (the "TITLE COMPANY") and which may be necessary to
consummate this transaction and otherwise to effect the agreements of the
parties hereto.

              2.1.9. The mutual waiver and release in the form attached hereto
as EXHIBIT "2.2.9" executed by Inland Affiliate pertaining to Inland Affiliate's
alleged breach of that certain Confidentiality Agreement between Inland Real
Estate Acquisition, Inc. and The Cordish Company, dated as February 27, 2004 to
the extent that such alleged breach concerned the Property and Subsidiary. (Such
release shall also contain a standstill agreement by The Cordish Company not to
pursue any claims under any similar agreements concerning any other property
owned by an entity that is partially owned by any affiliate of The Cordish
Company as long as such property is subject to a valid and binding contribution
agreement that is similar to this agreement between such affiliate of The
Cordish Company and an affiliate of Inland Affiliate.)

       2.2.   DELIVERIES BY HOLDING COMPANY. At the Closing, Holding Company,
acting by and through Cordish Affiliate, will deliver to Inland Affiliate the
following:

              2.2.1. A copy of the authorization of its managing member
authorizing or ratifying its execution and delivery of this Agreement and the
Other Agreements, and the consummation of the transactions contemplated hereby
and thereby by Holding Company and Cordish Affiliate, respectively.

                                       12
<Page>

              2.2.2. The Other Agreements, which shall be duly executed by
Cordish Affiliate or its affiliates as appropriate.

              2.2.3. A copy of its Articles of Organization (and a copy of the
Articles of Organization of Subsidiary) certified as of a date within five (5)
days of the Closing Date by the Secretary of State (or equivalent official) of
its state (or jurisdiction) of organization.

              2.2.4. A certificate from the Secretary of State (or equivalent
official) of the state (or jurisdiction) of organization as to its good standing
in such state (or jurisdiction), certified as of a date within five (5) days of
the Closing Date (and such a certificate for Subsidiary).

              2.2.5. A certificate from Cordish Affiliate stating that, to the
best of its information and belief, the representations and warranties contained
in ARTICLE IV are true, complete, and accurate in all material respects at and
as of the Closing Date.

              2.2.6. The opinion of counsel for Holding Company, Cordish
Affiliate and Subsidiary in form and substance similar to EXHIBIT "2.2.6", dated
the Closing Date.

              2.2.7. The affidavits for the Title Company in the form attached
hereto as EXHIBIT "2.2.7" from the persons or entities identified on such
exhibit.

              2.2.8. A letter to each tenant of the Property in the form
attached hereto as EXHIBIT "2.2.8" notifying each tenant of the change of notice
address of Subsidiary.

              2.2.9. The mutual waiver and release in the form attached hereto
as EXHIBIT "2.2.9" executed by The Cordish Company and Cordish Affiliate,
pertaining to Inland Affiliate's alleged breach of that certain Confidentiality
Agreement between Inland Real Estate Acquisition, Inc. and The Cordish Company,
dated as February 27, 2004 to the extent that such alleged breach concerned the
Property and Subsidiary. (Such release shall also contain a standstill agreement
by The Cordish Company not to pursue any claims under any similar agreements
concerning any other property owned by an entity that is partially owned by any
affiliate of The Cordish Company as long as such property is subject to a valid
and binding contribution agreement that is similar to this agreement between
such affiliate of The Cordish Company and an affiliate of Inland Affiliate.)

              2.2.10. The books and records of Subsidiary relating to the
operation of the Property, then in the possession of Subsidiary or Cordish
Affiliate, to the extent requested by Inland Affiliate.

              2.2.11. An amount equal to the SECURITY DEPOSITS (as that term is
defined in Section 4.9.6 hereof). Such delivery shall be accomplished by wire
transfer of immediately available funds to an account designated by Inland
Affiliate at Closing.

                                       13
<Page>

              2.2.12. Such other documents and instruments as reasonably may be
required by Inland Affiliate and the Title Company (exclusive of affidavits) and
which may be necessary to consummate this transaction and otherwise to effect
the agreements of the parties hereto.

       2.3.  EFFECT OF CONTRIBUTIONS. In exchange for the Capital Contribution:
(i) Inland Affiliate and Cordish Affiliate shall execute, seal and deliver to
the other the Operating Agreement, (ii) Inland Affiliate will become a member of
Holding Company pursuant to the terms of the Operating Agreement, (iii) Inland
Affiliate will receive the Percentage Interest set forth beside its name on
SCHEDULE A of the Operating Agreement, and (iv) the Capital Account of Inland
Affiliate will be credited with such amount set forth beside its name on
SCHEDULE A of the Operating Agreement. Such Capital Account shall be adjusted
hereafter with respect to any adjustments to the Capital Contribution as set
forth in Article I of this Agreement that occur after the Closing.

                                   ARTICLE III
                              RELATED TRANSACTIONS

       At the Closing, Inland, Cordish Affiliate, Subsidiary, Inland Affiliate,
and/or David S. Cordish shall enter into the following agreements (collectively,
the "OTHER AGREEMENTS"):

       3.1.  ESCROW AGREEMENT. Inland Affiliate shall cause Escrowee to execute
and deliver the Escrow Agreement to Subsidiary and Cordish Affiliate. The Escrow
Agreement shall also be executed and delivered by Cordish Affiliate and
Subsidiary to each other and Escrowee at the Closing.

       3.2.   OPERATING AGREEMENT. The Operating Agreement in the form attached
hereto as EXHIBIT "C." The Operating Agreement shall be executed by Inland
Affiliate and Cordish Affiliate and delivered to each other at the Closing.

       3.3.   INDEMNIFICATION AND GUARANTY AGREEMENT. The Indemnification and
Guaranty Agreement attached hereto as EXHIBIT "3.3", which: (i) Cordish
Affiliate and Inland Affiliate shall execute and deliver to each other at the
Closing; (ii) Cordish Affiliate shall cause David S. Cordish to execute and
deliver to Inland Affiliate at the Closing; and (iii) Inland Affiliate shall
cause Inland to execute and deliver to Cordish Affiliate at the Closing (the
"INDEMNITY AGREEMENT").

       3.4.   LEASING AND CONSTRUCTION SERVICE AGREEMENT. The Leasing and
Construction Service Agreement attached hereto as EXHIBIT "3.4", which
Subsidiary and Cordish Affiliate shall execute and deliver to each other at the
Closing (the "LEASING AGREEMENT").

       3.5.   AUDIT LETTER. Within ten (10) Business Days after receipt of a
written request from the Subsidiary's independent auditor, Cordish Affiliate
shall cause the representation letter attached hereto as EXHIBIT "3.5" to be
executed and delivered to such auditor. This covenant shall survive the Closing.

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<Page>

       3.6.   LIQUIDITY AMOUNT ESCROW AGREEMENT. Inland Affiliate shall cause
Escrowee to execute and deliver the Liquidity Amount Escrow Agreement to
Subsidiary and Cordish Affiliate. The Liquidity Amount Escrow Agreement shall
also be executed and delivered by Cordish Affiliate and Subsidiary to each other
and Escrowee at the Closing.

       3.7.   RESERVED PARCEL. The Property includes the parcel of land depicted
on EXHIBIT "3.7" attached hereto (the "RESERVED PARCEL"). For the period that
begins on the date hereof and that terminates on the tenth (10th) anniversary of
the date hereof, Inland Affiliate shall only have the right to utilize the
Reserve Parcel as a surface parking lot. At a future date it is contemplated
that an affiliate of Cordish Affiliate and/or Withdrawing Member (the "RESERVED
PARCEL DEVELOPER") and Subsidiary may enter into an agreement concerning the
development of the Reserved Parcel and adjacent land owned or controlled by the
Reserved Parcel Developer. Subsidiary agrees to reasonably cooperate with
Reserve Parcel Developer in its attempt to develop the Reserved Parcel on such
terms as are acceptable to Subsidiary and Subsidiary's lender, provided, after
the construction of any development on the Reserved Parcel, replacement parking
spaces, equal to the parking spaces contained on the Reserved Parcel on the date
hereof, are provided to Subsidiary in such development. Inland Affiliate shall
cause Subsidiary to comply with the provisions of this Section 3.7.

                                   ARTICLE IV
                REPRESENTATIONS AND WARRANTIES OF HOLDING COMPANY

       Holding Company hereby represents and warrants to Inland Affiliate as
follows:

       4.1.   OWNERSHIP OF HOLDING COMPANY AND SUBSIDIARY.

              4.1.1  From the date of its organization until the date that
Subsidiary was converted into a Maryland limited liability company, the sole
general partners of Subsidiary were Holding Company and Withdrawing Member. From
the date of the conversion of Subsidiary into a Maryland limited liability
company until the date hereof, the sole members of Subsidiary have been Holding
Company, holding a 50% equity interest in Subsidiary, and Withdrawing Member,
holding a 50% equity interest in Subsidiary. All of the outstanding equity
interests in Subsidiary have been duly authorized and are validly issued.
Holding Company has good and marketable title to its interest in, and after
consummating the transactions contemplated herein will be the sole equity owner
of, Subsidiary.

              4.1.2  From the date of its formation until the date hereof, the
sole members of Holding Company were David S. Cordish or Cordish Family I, LLC,
Cordish Enterprises Limited Partnership or Cordish Enterprises, LLLP,
Charles F. Jacobs or Jacobs Family Investments, LLC, Glenn L. Weinberg and
Joseph S. Weinberg All of the outstanding equity interests in Holding Company
have been duly authorized and are validly issued. Simultaneously with the
consummation

                                       15
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of the transactions contemplated herein, Cordish Affiliate shall have good and
marketable title to its interest in Holding Company.

              4.1.3  Holding Company's ownership interest in Subsidiary has not
been changed and with the exception of changes made for estate planning
purposes, there has been no change in the ownership structure of Holding
Company.

              4.1.4  There are no outstanding (i) options, warrants or other
rights to acquire any of the equity interests in Subsidiary or Holding Company,
(ii) securities convertible into or exchangeable for limited liability company
membership interests in Subsidiary or Holding Company or any other interests in
Subsidiary or Holding Company, or (iii) other commitments of any kind for the
issuance of additional equity interests, options, warrants or other securities
in Subsidiary or Holding Company.

       4.2.   ORGANIZATION.

              4.2.1. On the Closing Date, each of Holding Company, Subsidiary
and, Cordish Affiliate, will be a limited liability company that is duly
organized, validly existing, and in good standing under the laws of its
respective state of organization, with the limited liability company power and
authority to own, lease, and operate its properties and to carry on its business
as now being conducted. Prior to the reorganization of Subsidiary, Subsidiary
had been a general partnership, duly organized, validly existing, and in good
standing under the laws of the state of Maryland, with the power and authority
to own, lease, and operate its properties and to carry on its business as now
being conducted. On the date hereof Cordish Affiliate does not exist. Cordish
Affiliate will be created on the Closing Date.

              4.2.2. The copies of the organizational documents and all
amendments thereto of Holding Company, Cordish Affiliate and Subsidiary, as
delivered to Inland Affiliate, are true, complete, and correct copies of the
organizational documents, as amended and presently in effect, of Holding
Company, Cordish Affiliate and Subsidiary.

       4.3.   QUALIFICATION. On the Closing Date, Holding Company, Subsidiary
and Cordish Affiliate will each be licensed or qualified to do business as
foreign entities and will be in good standing in the jurisdictions in which they
conduct business.

       4.4.   AUTHORITY. Holding Company has the limited liability company power
and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery by Holding Company
of this Agreement has been duly authorized as of the date hereof. No other
proceedings on the part of Holding Company or any other person or entity are
necessary to authorize Holding Company to enter into this Agreement or to
consummate the transactions contemplated hereby; and this Agreement is he legal,
valid, and binding obligations of the Holding Company.

                                       16
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       4.5.   NO VIOLATIONS. To Cordish Affiliate's Knowledge, except as set
forth in EXHIBIT "4.5", neither the execution nor delivery of this Agreement,
nor the consummation of the transactions contemplated hereby or thereby:

              4.5.1. Requires any filing or registration with, or consent,
authorization, approval, or Permit of, any governmental or regulatory authority
on the part of Holding Company,;

              4.5.2. Violates or will violate (i) any order, writ, injunction,
judgment, decree, or award of any court or governmental or regulatory authority
or (ii) any "LAW," as defined in Section 4.7 of this Agreement, of any
governmental or regulatory authority to which Holding Company, or any of their
respective properties or assets are subject; or

              4.5.3. (i) violates or breaches or constitutes a default (or an
event which, with notice or lapse of time or both, would constitute a default)
under, or gives rise to a right to terminate, any mortgage, contract, agreement,
partnership agreement, limited liability company operating agreement (or
like-agreement), deed of trust, license, lease, or other instrument,
arrangement, commitment, obligation, understanding, or restriction of any kind
to which Holding Company or Subsidiary is a party or by which its properties
(including the Property) may be bound, or (ii) will cause, or give any person
grounds to cause, to be accelerated (with notice or lapse of time or both) the
maturity of, or will increase, any liability or obligation of Holding Company or
Subsidiary which violation, breach, default, liability, or obligation,
individually or in the aggregate, is or would negatively impact the business or
financial condition of Holding Company, or Subsidiary.

       4.6.   LITIGATION. From the date that is three (3) years prior to the
date hereof until the date hereof, except as set forth in EXHIBIT "4.6", there
have been and are no claims, actions, suits, arbitration's, proceedings or
investigations pending before any governmental authority or otherwise, or, to
the Knowledge of Cordish Affiliate, threatened against Cordish, Holding Company
and/or Subsidiary that have not been resolved and any judgments against any such
entities paid in full. Cordish Affiliate, Holding Company and Subsidiary are not
subject to any order, writ, judgment, injunction, decree, determination or
award. From the date that is three (3) years prior to the date hereof until the
date hereof, to Cordish Affiliate's Knowledge there have been no unresolved
disputes or disagreement between any Cordish Affiliate entity or Affiliate and
any other member (or partner) of Subsidiary.

       4.7.   COMPLIANCE WITH APPLICABLE LAW; ADVERSE RESTRICTIONS. As used
herein, all laws (statutory or otherwise), ordinances, rules, regulations,
bylaws, and codes of all governmental and regulatory authorities, whether
federal, state, or local are referred to singularly as a "LAW" and collectively,
as the "LAWS." Except as and to the extent set forth in EXHIBIT "4.7", neither
Holding Company nor Subsidiary nor Cordish Affiliate has received any written
notification during the last three (3) years of any asserted failure to comply
with any Law.

                                       17
<Page>

       4.8.   ASSETS.

              4.8.1. From the time of its formation and organization until the
date hereof, Holding Company has not owned or leased any asset other than its
interest in Subsidiary, and cash distributed from Subsidiary. Holding Company
has not engaged in any business other than the ownership of its interest in
Subsidiary. From the time of its formation and organization until the date
hereof, Holding Company has not held an interest in any entity other than
Subsidiary.

              4.8.2. Subsidiary has not owned or leased any material asset other
than the Property (and assets necessary to the operation of the Property) and
has not engaged in any business other than the ownership, development, and
operation of the Property.

       4.9.   THE PROPERTY.

              4.9.1. Except as set forth on EXHIBIT "4.9.1", neither Cordish
Affiliate nor Subsidiary has received during the last three (3) years: (i)
building code violation notices (other than notices of violations which have
been removed or corrected); and (ii) notices of any action or governmental
proceeding in eminent domain, or for a zoning change, or affecting the
environmental (including wetlands) condition of the Property.

              4.9.2. There are no leases or rental agreements affecting the
Property other than the leases described on EXHIBIT "4.9.2", copies of which
have been supplied to Inland Affiliate (the "LEASES"). EXHIBIT "4.9.2" also
contains, as of the date of the rent roll, a complete, correct and current rent
roll for the Property. Except for matters disclosed in tenant estoppel
certificates delivered to Inland Affiliate or an affiliate of Inland Affiliate
or the counsel of Inland Affiliate in connection with this transaction and/or
routine tenants matters which have been settled, dismissed, or as set forth in
EXHIBIT "4.9.2", neither Holding Company nor Subsidiary has received any claim
during the last three (3) years from any tenant under the Leases alleging any
type of default by the landlord under the Leases or demanding any work or
payment from landlord that has not been resolved. All leasing commissions, and
tenant improvement allowances, and post-Closing rental abatements arising in
connection with any Lease entered into prior to the Closing Date shall be
fully-paid, discharged or credited to Inland Affiliate at Closing.

              4.9.3. Except as set forth on EXHIBIT "4.9.3", (a) there are no
management, leasing services or employment contracts affecting the Property that
will be in effect on the Closing Date unless such are terminable without
penalty; (b) there are no persons employed by Holding Company or Subsidiary or
Cordish Affiliate in connection with the operation of the Property, and (c) to
Cordish Affiliate's Knowledge there are no maintenance, advertising or service
contracts affecting the Property that will be in effect on the Closing Date
unless such are terminable without penalty.

              4.9.4. Except as set forth in the Leases or EXHIBIT "4.9.4": (a)
Subsidiary owns fee simple title to the Property, (b) no third party has any
right to purchase all or any part of the Property, and (c) Subsidiary has no
rights or options to purchase or lease real property.

                                       18
<Page>

              4.9.5. Except as set forth in EXHIBIT "4.9.5", there exists no
obligation on the part of Holding Company or Subsidiary for any leasing and/or
broker commissions or like payments for any period subsequent to the Closing
Date, in connection with any Lease executed prior to the Closing Date, except
for those arising out of renewal, expansion or other similar options exercised
by tenants under any Lease.

              4.9.6. EXHIBIT "4.9.6" contains a true, accurate and complete list
of each Lease under which a tenant has paid Subsidiary a security deposit, and
the amount of such security deposit, which security deposit Subsidiary may have
an obligation to return upon the expiration of such Lease (each a "SECURITY
DEPOSIT").

              4.9.7. Except as set forth in the Leases or in an instrument or
agreement that is recorded among the appropriate land records, Subsidiary has
not granted a tenant or occupant of the Property an exclusive right to use the
Property for any particular purposes.

       4.10.  TAXES.

              4.10.1. All returns, declarations, reports, claims for refunds, or
information returns or statements or other forms relating to all fees (including
without limitation documentation, recording, license, and registration fees),
taxes (including without limitation net income, alternative, unitary,
alternative minimum, minimum franchise, value added, ad valorem, income,
receipts, capital, excise, sales, use, leasing, fuel, excess profits, turnover,
occupational, property (personal and real, tangible and intangible), transfer,
recording and stamp taxes, levies, imposts, duties, charges, fees assessments,
or withholdings of any nature whatsoever, general or special, ordinary or
extraordinary, and any transaction privilege or similar taxes) imposed by or on
behalf of a governmental authority, together with any and all penalties, fines,
additions to tax and interest thereon (the "TAXES"), including any schedule or
attachment thereto, and including any amendment thereof (the "TAX RETURNS")
required to be filed by Holding Company and Subsidiary have, to Cordish
Affiliates' Knowledge, been accurately prepared in all material respects and
timely filed.

              4.10.2. All Taxes for which Holding Company or Subsidiary may be
held liable (whether or not appearing on such Tax Returns and other than the
Taxes referred to in the next sentence), have been paid or accrued within the
prescribed period or any extension thereof. All Taxes required to be withheld by
Holding Company or Subsidiary, including, but not limited to, Taxes arising as a
result of payments or distributions (or amounts allocable) to foreign partners
or foreign persons or to employees of Holding Company or Subsidiary, have been
collected and withheld, and have been either paid to the respective governmental
agencies, set aside in accounts for such purpose, or accrued, reserved against,
and entered upon the books and records of the employer.

              4.10.3. To Cordish Affiliate's Knowledge, there are no Tax liens
upon the Property, except for liens for current Taxes not yet due and payable.

                                       19
<Page>

              4.10.4. Both Holding Company and Subsidiary qualify and, giving
effect to the terms of the Operating Agreement, will qualify immediately after
the Closing Date, to be treated as a partnership or disregarded entity for
federal income tax purposes. No taxing authority has taken a position
inconsistent with such treatment. Neither Cordish Affiliate nor any other member
of Holding Company or Subsidiary has taken any action, or failed to take any
action, that would cause Holding Company or Subsidiary to be treated as an
association taxable as a corporation for income tax purposes.

              4.10.5 Neither Subsidiary, Holding Company, nor Cordish Affiliate
has received from any governmental authority any written notice of proposed
adjustment, deficiency or underpayment of any Taxes pertaining to the ownership
or operation of the Property, which notice has not been satisfied by payment or
been withdrawn, and to Cordish Affiliate's Knowledge, there are no claims with
respect thereto that have been asserted or threatened against Subsidiary,
Holding Company or Cordish Affiliate.

              4.10.6 There are no agreements for the extension of time for the
assessment of any Taxes of Holding Company or Subsidiary.

              4.10.7 Except as set forth on EXHIBIT "4.10.7", there are no
pending appeals of any Taxes of Holding Company or Subsidiary.

       4.11.  INSURANCE. To Cordish Affiliate's Knowledge insurance policies or
binders of insurance in the types and amounts set forth on EXHIBIT 4.11 are
valid and currently in effect. Subsidiary has paid, or caused to be paid, all
premiums due under such policies, and to Cordish Affiliate's Knowledge
Subsidiary is not in default with respect to its obligations under any such
policies.

       4.12.  CONTRACTS.

              4.12.1. EXHIBIT 4.12.1 lists each material contract and agreement
of Subsidiary with respect to the Property, other than those set forth on
EXHIBIT 4.9.3 (the "CONTRACTS "). To Cordish Affiliate's Knowledge, there are no
material contracts or agreements of Subsidiary that will be in effect after the
Closing Date except for the Contracts and the Leases.

              4.12.2. A true and complete copy of each material Contract has
been made available to Inland Affiliate. Except as disclosed in EXHIBIT 4.12.2:

                     4.12.2.1. To the Knowledge of Cordish Affiliate, each
Contract and Lease is valid and binding on the respective parties thereto and is
in full force and effect.

                     4.12.2.2. To the Knowledge of Cordish Affiliate, after the
Closing, each Contract and Lease shall continue in full force and effect
throughout its effective term, except in the event that a party thereto has
breached such Contract and Lease and as result of such breach, the

                                       20
<Page>

Contract or Lease is terminated, or unless an event has occurred that is
described therein that gives rise to a right of termination, which is
effectuated or in the event a party thereto seeks bankruptcy or reorganization
protection and has the right, as a result thereof, to terminate the Contract or
Lease and does so. Notwithstanding the preceding sentence, it is agreed by all
of the parties that all existing management arrangements or contracts (whether
oral or written) will be terminated as of the Closing.

                     4.12.2.3. To the Knowledge of Cordish Affiliate, Subsidiary
has neither received nor delivered a written notice of default with respect to
any Contract or Lease within the past three years that is presently unresolved.

                     4.12.2.4. To the Knowledge of Cordish Affiliate, Subsidiary
has not delivered a written notice of default to any other party to a Contract
or Lease that is presently unresolved.

                     4.12.2.5 To the Knowledge of Holding Company there are no
material defaults existing with respect to any Lease or material Contract that
has or is likely to have a material adverse effect on Subsidiary or the
Property.

       4.13.  "KNOWLEDGE." For purposes of this Agreement, "KNOWLEDGE" means the
actual knowledge of the individuals whose names are set forth on EXHIBIT "4.13",
without any obligation of investigation or inquiry by such individuals. For the
avoidance of doubt, the parties agree that the term "KNOWLEDGE" as used in this
Agreement with an initial lower case "k" shall have the same meaning as the
defined term, "KNOWLEDGE" with an initial uppercase "K".

       4.14.  BROKERS' FEES. With the exception of the TRANSACTION FEE (as that
term is defined in the Withdrawing Member Agreement), neither Holding Company,
Subsidiary nor Cordish Affiliate has incurred any liability or obligation to pay
any fees or commissions to any broker, finder or agent with respect to the
transactions contemplated by this Agreement.

       4.15   INSOLVENCY. Neither Holding Company nor Subsidiary have (i) made a
general assignment for the benefit of its creditors, (ii) instituted, or been
the subject of, any proceeding to be adjudicated bankrupt or insolvent or
consented to the institution of bankruptcy or insolvency proceedings against it,
(iii) filed a petition, answer or consent seeking reorganization or relief under
any applicable federal or state bankruptcy law or consented to the filing of any
such petition or to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator or other similar official of it or of any part of its
property, or (iv) admitted in writing its inability to pay its debts generally
as they become due.

                                    ARTICLE V
               REPRESENTATIONS AND WARRANTIES OF INLAND AFFILIATE

       Inland Affiliate hereby represents and warrants to Holding Company as
follows:

                                       21
<Page>

       5.1.   ORGANIZATION, QUALIFICATION AND CORPORATE POWER. Inland Affiliate
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware and is duly qualified to
conduct business and is in corporate and tax good standing under the laws of
each jurisdiction in which the nature of its businesses or the ownership or
leasing of its properties requires such qualification. Inland Affiliate has all
requisite power and authority to carry on the businesses in which it is engaged
and to own and use the properties owned and used by it.

       5.2.   AUTHORIZATION OF TRANSACTION. Inland Affiliate has all requisite
power and authority to execute and deliver this Agreement and the Other
Agreements, and to perform its obligations hereunder and thereunder. The
execution and delivery by Inland Affiliate of this Agreement and the Other
Agreements, and the consummation by Inland Affiliate of the transactions
contemplated hereby and thereby, have been duly and validly authorized by all
necessary action on the part of Inland Affiliate. This Agreement has been duly
and validly executed and delivered by Inland Affiliate and constitutes a valid
and binding obligation of Inland Affiliate, enforceable against it in accordance
with its terms.

         5.3. NONCONTRAVENTION. Neither the execution and delivery by Inland
Affiliate of this Agreement or the Other Agreements, nor the consummation by
Inland Affiliate of the transactions contemplated hereby and thereby, will (a)
conflict with or violate any provision of the organizational documents of Inland
Affiliate, (b) require on the part of Inland Affiliate any filing with, or
permit, authorization, consent or approval of, any third party, (c) conflict
with, result in breach of, constitute (with or without due notice or lapse of
time or both) a default under, result in the acceleration of obligations under,
create in any party any right to terminate, modify or cancel, or require any
notice, consent or waiver under, any contract or instrument to which Inland
Affiliate is a party or by which it is bound or to which its assets are subject,
or (d) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Inland Affiliate or any of its properties or assets.

       5.4.   SECURITIES LAW COMPLIANCE. Inland Affiliate acknowledges that the
offering and issuance to it of an equity interest in Holding Company (the
"INTEREST") is intended to be exempted from registration under the Securities
Act of 1933, as amended (the "SECURITIES ACT"). Inland Affiliate understands and
agrees that it will sell or otherwise transfer the Interest (or any portion
thereof) only in accordance with the provisions of the Securities Act, pursuant
to registration under the Securities Act or pursuant to an available exemption
from registration thereunder and otherwise in a manner that does not violate the
securities laws of any state of the United States. Inland Affiliate understands
that Holding Company is under no obligation to register the Interest on behalf
of Inland Affiliate or to assist Inland Affiliate in complying with any
exemption from registration under the Securities Act or under any other
applicable securities laws. Inland Affiliate also understands that sales or
transfers of the Interest are further restricted by the provisions of the
Operating Agreement and the securities laws of the states of the United States.

       5.5.   PURCHASE FOR INLAND. Inland Affiliate is acquiring the Interest
for its own account as principal, for investment and not with a view to, or for
the resale, distribution, or fractionalization

                                       22
<Page>

thereof, in whole or in part, and no other person has any direct or indirect
beneficial interest in the Interest.

       5.6.   ACCREDITED INVESTOR, ETC. Inland Affiliate is an "accredited
investor" within the meaning of Regulation D promulgated under the Securities
Act. Inland Affiliate has such knowledge and experience in financial, tax, and
business matters that it is capable of evaluating the merits and risks of its
acquisition of the Interest.

       5.7.   DUE DILIGENCE. Inland Affiliate acknowledges that, except for the
matters that are expressly covered by the provisions of this Agreement, the
Indemnity Agreement or the Operating Agreement, Inland Affiliate is relying on
its own investigation and analysis in entering into the transactions
contemplated by this Agreement. Inland Affiliate acknowledges that it is
acquiring its membership rights in and to Holding Company without any
representation or warranty, express or implied, by Cordish Affiliate, Holding
Company or Subsidiary, except as expressly set forth herein. With respect to any
projection or forecast delivered by or on behalf of Holding Company to Inland
Affiliate, Inland Affiliate acknowledges that (i) there are uncertainties
inherent in attempting to make such projections and forecasts, (ii) the accuracy
and correctness of such projections and forecasts may be affected by information
which may become available after the date of such projections and forecasts, and
(iii) Inland Affiliate is familiar with each of the foregoing. Inland Affiliate
has no knowledge of any facts and/or circumstances that would make any of the
representations and warranties contained in Article IV untrue or misleading.

       5.8.   BROKERS' FEES. Neither Inland Affiliate nor any affiliate thereof
has any liability or obligation to pay any fees or commissions to any broker,
finder or agent with respect to the transactions contemplated by this Agreement.

       5.9.   COOPERATION ON TAX MATTERS. Inland Affiliate will cooperate fully,
as and to the extent reasonably requested by Holding Company or Cordish
Affiliate, in connection with any audit, litigation or other proceeding with
respect to Taxes. Such cooperation shall include the retention and (upon the
other party's request) the provision of records and information that are
reasonably relevant to any such audit, litigation, or other proceeding and
making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. Holding Company
and Inland Affiliate agree (a) to retain all books and records that are relevant
to the determination of the Tax liabilities pertinent to Holding Company and
Subsidiary relating to any prior Tax period until the expiration of the
applicable statute of limitations and to abide by all record retention
agreements entered into with any Taxing Authority and (b) to give the other
party reasonable written notice prior to destroying or discarding any such books
and records and, if the other party so requests, Holding Company or Inland
Affiliate, as the case may be, shall allow the other party to take possession of
such books and records.

       5.10.  ASSIGNMENT OF RIGHTS. Attached hereto as EXHIBIT 5.10 are
Assignment and Assumption Agreements whereby Subsidiary assigns certain rights
to lease and/or purchase real

                                       23
<Page>

property adjoining the Property. Inland Affiliate represents that it consents to
such assignments, has requested same, and is aware that Subsidiary will have no
further interest in and to the rights assigned.

                                   ARTICLE VI
                              CONDITIONS TO CLOSING

       6.1.   CONDITIONS TO OBLIGATIONS OF HOLDING COMPANY. The obligation of
Holding Company to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment, at or prior to the Closing Date, of each of
the following conditions, unless waived in writing by Holding Company:

              6.1.1. REPRESENTATIONS AND WARRANTIES. Each representation and
warranty of Inland Affiliate contained in this Agreement shall be true and
correct in all material respects on and as of the Closing Date.

              6.1.2. PERFORMANCE OF AGREEMENTS. Inland Affiliate shall have
performed or complied in all material respects with all agreements and covenants
required by this Agreement to be performed or complied with by it on or prior to
the Closing Date.

              6.1.3. NO PROCEEDING OR LITIGATION. (i) No action shall have been
commenced by any governmental authority against Cordish Affiliate, Subsidiary,
Holding Company or Inland Affiliate seeking to restrain or materially and
adversely alter the transactions contemplated by this Agreement and (ii) no
injunction or order of any governmental authority or any Law shall be in effect
which, in the case of each of (i) and (ii), in the reasonable, good faith
determination of Holding Company, is likely to render it impossible or unlawful
to consummate such transactions.

              6.1.4. INLAND AFFILIATE'S DELIVERIES. Inland Affiliate shall have
delivered to Holding Company and Escrowee at or before the Closing the items
specified in Section 2.1.

              6.1.5. REORGANIZATIONS. Withdrawing Member shall have executed and
delivered to Holding Company an Agreement to Reorganize and Retire that is
substantially in the form attached hereto as EXHIBIT "6.1.5", (or that
substantively, with regard to Inland Affiliate, accomplishes the retirement of
Withdrawing Member from Subsidiary)and the transactions contemplated therein
(other than the retirement of Withdrawing Member) shall have been consummated.

              6.1.6. OTHER TRANSACTIONS. Inland Affiliate shall have consummated
the transactions contemplated by the Contribution Agreements it has entered into
of even date with respect to the limited liability companies set forth on
EXHIBIT "6.1.6".

       6.2.   CONDITIONS TO OBLIGATIONS OF INLAND AFFILIATE. The obligation of
Inland Affiliate to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment, at or

                                       24
<Page>

prior to the Closing Date, of each of the following conditions, unless waived in
writing by Inland Affiliate:

              6.2.1. REPRESENTATIONS AND WARRANTIES. Each representation and
warranty of Holding Company and Cordish Affiliate contained in this Agreement
shall be true and correct in all material respects on and as of the Closing
Date.

              6.2.2. PERFORMANCE OF AGREEMENTS. Holding Company shall have
performed or complied in all material respects with all agreements and covenants
required by this Agreement to be performed or complied with by it on or prior to
the Closing Date.

              6.2.3. NO PROCEEDING OR LITIGATION. (i) No action shall have been
commenced by any governmental authority against Cordish Affiliate, Subsidiary,
Holding Company or Inland Affiliate seeking to restrain or materially and
adversely alter the transactions contemplated hereby and (ii) no injunction or
order of any governmental authority or Law shall be in effect, which, in the
case of each of (i) and (ii), in the reasonable, good faith determination of
Inland Affiliate is likely to render it impossible or unlawful to consummate the
transactions contemplated by this Agreement.

              6.2.4. HOLDING COMPANY'S DELIVERIES. Holding Company shall have
delivered to Inland Affiliate and Escrowee at the Closing the items specified in
Section 2.2.

              6.2.5. REORGANIZATIONS. Withdrawing Member shall have executed,
sealed; and delivered to Cordish Affiliate the Agreement to Reorganize and
Retire attached hereto as EXHIBIT "6.1.5"., and the transactions contemplated
therein (other then the retirement of Withdrawing Member) shall have been
consummated.

              6.2.6. LEASES. There shall not be a material default under: (a)
any Lease at the Property described on EXHIBIT "6.2.6" hereof (the "ANCHOR
LEASES"); or (b) Leases, exclusive of the Anchor Leases, representing more than
five (5%) percent of the gross leasable area of the Property.

              6.2.7. ESTOPPEL CERTIFICATES. Inland Affiliate shall have received
the estoppel certificates from those tenants under Leases and others forth on
EXHIBIT "6.2.7".

              6.2.8. CASUALTY OR CONDEMNATION. If prior to the Closing all or
any part of the Property is destroyed or damaged or is taken by condemnation,
eminent domain or other governmental acquisition provisions, then the following
procedures shall apply:

                     6.2.8.1. (a) If the reasonable estimated cost of repair or
replacement to be incurred by Subsidiary or the value of the governmental taking
is Ten Million and no/100 Dollars ($10,000,000.00) or less (the "THRESHOLD"),
AND, (b) if as a result of such damage or taking Leases for at least ninety
percent (90%) of the gross leasable area of the Property are: (i) not terminable
on account thereof (assuming any necessary repairs, replacements or alterations
required under the Leases are diligently pursued by the landlord thereunder),
and/or (ii) if so terminable, the tenant or

                                       25
<Page>

tenants under such Lease or Leases has or have waived its or their termination
rights AND, (c) to the extent abatement of rent occurs as a result of the
damage, destruction or condemnation that continues after the Closing Date with
regard to Leases for ten percent (10%) or more of the gross leasable area of the
Property, such abatement of rent is covered and paid for by insurance coverage
of Subsidiary which payments continue after the Closing Date (or other
alternative payment arrangements are implemented by Cordish Affiliate at no cost
and expense to Subsidiary which are reasonably acceptable by Inland Affiliate),
THEN this condition to the Closing shall be deemed waived by Inland Affiliate,
and Inland Affiliate shall proceed to the Closing, with the exception of a
credit thereto for any applicable deductible, the Capital Contribution shall not
be reduced, and Inland Affiliate shall retain the sole benefit, through
Subsidiary, of all casualty insurance and condemnation proceeds due with respect
to such destruction, damage or taking, as well as the proceeds and benefits
under any rent loss or business interruption policies attributable to the period
following the Closing.

                     6.2.8.2. (a) If any material point of ingress or egress to
or from the Property is either taken (or threatened to be taken) and cannot be
replaced or relocated with a suitable alternative, OR (b) if five percent (5%)
or more of any parking located upon the Property is either taken (or threatened
to be taken), OR (c) if the cost of reasonable cost of repair or replacement to
be incurred by Subsidiary or the value of the casualty or governmental taking is
greater than the Threshold, OR (d) Leases representing more than ten percent
(10%) of the gross leasable area of the Property are terminable on account
thereof (notwithstanding any necessary repairs, replacements or alterations
required under the Leases are diligently pursued by the landlord thereunder) and
the tenant or tenants under such Leases have not waived their termination rights
OR, (e) to the extent abatement of rent occurs as a result of the damage,
destruction or condemnation that continues after the Closing Date with regard to
Leases and such abatement of rent for Leases representing ten percent (10%) or
more of the gross leasable area of the Property is not covered and paid for by
insurance coverage of Subsidiary which payments continue after the Closing Date
(or other alternative payment arrangements are not implemented by Cordish
Affiliate at no cost and expense to Subsidiary which are reasonably acceptable
by Inland Affiliate), THEN Inland Affiliate, at its sole option, may elect
either to (x) terminate this Agreement by written notice to Holding Company and
receive an immediate return of the Earnest Money and neither party shall have
any further liability to the other hereunder; or (y) accept Subsidiary's rights
to all casualty insurance and condemnation proceeds with respect thereto with no
reduction in the Capital Contribution (except for the amount of any deductible
under existing insurance policies), it being understood and agreed that, in such
event, Cordish Affiliate shall cooperate with Inland Affiliate in the adjustment
and settlement of the insurance or condemnation claim.

                     6.2.8.3. If there is a dispute between Inland Affiliate and
Holding Company with respect to the cost of repair, restoration or replacement
with respect to the matters set forth in this Section 6.2.8, an engineer
designated by Holding Company and an engineer designated by Inland Affiliate
shall select an independent engineer licensed to practice in the jurisdiction
where the Property is located who shall resolve such dispute. All fees, costs
and expenses of this third engineer shall be shared equally by Inland Affiliate
and Holding Company.

                                       26
<Page>

              6.2.9. The Title Company, which has delivered to Inland Affiliate
the commitment to issue an owner's title insurance policy attached hereto as
EXHIBIT "6.2.9" (the "TITLE COMMITMENT"), upon compliance by the parties hereto
of their respective obligations hereunder, is prepared to issue a title
insurance policy in form and substance materially similar to the Title
Commitment.

                                   ARTICLE VII
                             TERMINATION AND WAIVER

       7.1.   TERMINATION. This Agreement may be terminated at any time prior to
the Closing only as follows:

              7.1.1. By Inland Affiliate if, on or prior to the Closing Date:
(i) any representation or warranty of Holding Company or Cordish Affiliate set
forth in this Agreement shall not have been true and correct in all material
respects when made or ceases to be true and correct in all material respects at
any time subsequent to the date hereof and Holding Company shall have failed to
cure any material misstatement or omission subsequent to the date hereof
promptly after notice by Inland Affiliate; (ii) Holding Company shall not have
complied in all material respects with each covenant or agreement imposed by
this Agreement to be complied with or performed on or prior to the Closing Date
and Holding Company shall have failed to cure any material breach of a covenant
or agreement promptly after notice by Inland Affiliate; or (iii) either Holding
Company or Subsidiary makes a general assignment for the benefit of creditors,
or any proceeding shall be instituted by or against either Holding Company or
Subsidiary seeking to adjudicate either bankrupt or insolvent, or seeking
liquidation, winding up or reorganization, arrangement, adjustment, protection,
relief or composition of its debts under any Law relating to bankruptcy,
insolvency or reorganization.

              7.1.2. By Holding Company or Inland Affiliate if the Closing shall
not have occurred on or prior to the first anniversary of the date hereof.

              7.1.3. By Inland Affiliate or Holding Company if any governmental
authority shall have issued an order, decree or ruling or taken any other action
restraining, enjoining or otherwise prohibiting the transactions contemplated by
this Agreement and such order, decree, ruling or other action shall have become
final and nonappealable. This provision shall not apply to any governmental
authority that is acting in its capacity as "landlord" under any ground lease
between such governmental authority and Subsidiary.

              7.1.4. By the mutual written consent of Holding Company and Inland
Affiliate.

              7.1.5. By Holding Company if, between the date hereof and the time
scheduled for the Closing: (i) any representation or warranty of Inland
Affiliate set forth in this Agreement shall not have been true and correct in
all material respects when made or ceases to be true and correct in all material
respects at any time subsequent to the date hereof and Inland Affiliate shall
have failed to

                                       27
<Page>

cure any material misstatement or omission subsequent to the date hereof
promptly after notice by Holding Company; (ii) Inland Affiliate shall not have
complied in all material respects with each covenant or agreement imposed by
this Agreement to be complied with or performed on or prior to the Closing Date
and Inland Affiliate shall have failed to cure any material breach of a covenant
or agreement promptly after notice by Holding Company or (iii) Inland Affiliate
makes a general assignment for the benefit of creditors, or any proceeding shall
be instituted by or against Inland Affiliate seeking to adjudicate it bankrupt
or insolvent, or seeking liquidation, winding up or reorganization, arrangement,
adjustment, protection, relief or composition of its debts under any Law
relating to bankruptcy, insolvency or reorganization.

       7.2.   EFFECT OF TERMINATION. If this Agreement is terminated as provided
in Section 7.1, this Agreement shall forthwith be canceled and rendered null and
void in its entirety, except that no such termination shall serve to relieve any
breaching party of any liability under this Agreement (except as otherwise
provided in Section 1.1). This Section 7.2 is not intended to modify the
provisions of Section 1.1. In the event this Agreement is terminated by Inland
Affiliate pursuant to the provisions of Section 7.1, the provisions of that
certain letter agreement dated April 24, 2004, between an affiliate of Inland
Affiliate and The Cordish Company shall apply concerning the reimbursement of
certain costs incurred by Inland Affiliate in connection with this Agreement.

       7.3.   WAIVER. Holding Company (and after the Closing Date, Holding
Company acting exclusively by and through Cordish Affiliate) on the one hand and
Inland Affiliate on the other hand may (a) extend the time for the performance
of any of the obligations or other acts of the other party, (b) waive any
inaccuracies in the representations and warranties of the other party contained
herein or in any document delivered by such other party pursuant hereto, or (c)
waive compliance with any of the agreements or conditions of the other party
contained herein. Any such extension or waiver shall be valid only if set forth
in an instrument in writing signed by the party to be bound thereby. Any waiver
of any term or condition shall not be construed as a waiver of any subsequent
breach or a subsequent waiver of the same term or condition, or a waiver of any
other term or condition, of this Agreement. The failure of any party to assert
any of its rights hereunder shall not constitute a waiver of any of such rights.

                                  ARTICLE VIII
                            MISCELLANEOUS PROVISIONS

       8.1.   AMENDMENT AND MODIFICATION. This Agreement may be amended,
modified or supplemented only by written agreement of the parties hereto.

       8.2.   FURTHER ASSURANCES. From time to time, at the request of Inland
Affiliate or Holding Company (exclusively acting by and through Cordish
Affiliate on and after the Closing Date) and without further consideration, each
party, at its own expense, will execute and deliver such other documents, and
take such other action, as Inland Affiliate or Holding Company (exclusively
acting by and through Cordish Affiliate on and after the Closing Date) may
reasonably request in order to

                                       28
<Page>

consummate more effectively the transactions contemplated hereby and to vest in
Holding Company good and marketable title to Subsidiary.

       8.3.   GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Maryland (without regard to its
conflicts of law doctrines).

       8.4.   COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument and shall become a binding
Agreement when one or more of the counterparts have been signed by each of the
parties and delivered to the other party.

       8.5.   PUBLICITY. Neither of the parties will make any disclosure of the
transactions contemplated by this Agreement, or any discussions in connection
therewith or issue a press release concerning the closing of any such
transaction, or make any public announcement concerning the closing of any such
transaction, without the prior written consent of each of the other parties. The
preceding sentence shall not apply to: (a) any disclosure required to be made by
Law or the regulations of any stock exchange(s), or the Securities and Exchange
Commission, or Blue Sky Laws, as reasonably determined by counsel to the party
determining that such disclosure is required; or (b) a disclosure following
Closing made in the ordinary course of operations of Inland or Cordish
Affiliate; provided any such disclosure made pursuant to clause (a) or (b) of
this sentence is not inconsistent with the form of the transactions as described
in this Agreement. This provision shall survive Closing.

       8.6.   NOTICES. All notices, demands, consents, approvals, requests or
other communications which any of the parties to this Agreement may desire or be
required to give hereunder (collectively, "NOTICES") shall be in writing and
shall be given by personal delivery, nationally recognized next day delivery
service (delivery charges prepaid, return receipt requested) or United States
registered or certified mail (postage prepaid, return receipt requested)
addressed as hereinafter provided. Except as otherwise specified herein, the
effective date of any Notice (I.E., the date a party shall be deemed to have
received such Notice), shall be the earliest to occur of: (a) if by personal
delivery, the date of receipt, or attempted delivery, if such communication is
refused; (b) if by nationally recognized next day delivery service (as
aforesaid), the next Business Day after delivery to such service; and (c) if
sent by mail (as aforesaid), three (3) Business Days after posting. Until
further notice, notices and other communications under this Agreement shall be
addressed to the parties listed below as follows:

       If to Inland Affiliate: c/o Inland Western Retail Real Estate Trust, Inc.
                               2901 Butterfield Road
                               Oak Brook, Illinois 60523
                               Attention: Chief Financial Officer

                                       29
<Page>

       with a copy to:         c/o The Inland Real Estate Group, Inc.
                               2901 Butterfield Road
                               Oak Brook, Illinois 60523
                               Attention: General Counsel

       with a copy to:         John J. Ghingher III, Esquire
                               Saul Ewing, LLP
                               100 South Charles Street
                               Baltimore, Maryland 21201

       If to Holding:          c/o The Cordish Company
                               601 East Pratt Street, Sixth Floor
                               Baltimore, Maryland 21202
                               Attention: President

       With a copy to:         c/o The Cordish Company
                               601 East Pratt Street, Sixth Floor
                               Baltimore, Maryland 21202
                               Attention: General Counsel

Any party hereto may designate another addressee (and/or change its address) for
Notices hereunder by a Notice given pursuant to this Section to each of the
other parties hereto. On and after the Closing Date, all notices from Inland
Affiliate to Holding Company in connection with this Agreement shall be sent to
Holding Company, care of Cordish Affiliate at the above addresses for Holding
Company.

       8.7.   ARBITRATION. Except as otherwise provided in Section 1.1.1.3
hereof, in the event that any dispute shall arise between Inland Affiliate and
Holding Company with respect to the application of any of the provisions of this
Agreement, and such dispute is not resolved to the satisfaction of Inland
Affiliate and Holding Company within twenty (20) days after Inland Affiliate or
Holding Company shall notify the other in writing of its desire to arbitrate the
dispute (the "ARBITRATION NOTICE"), then the dispute shall be resolved in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association then pertaining. The decision of the arbitrator shall be binding,
final and conclusive on the parties. Unless the parties otherwise agree, such
arbitration proceedings shall be conducted in Baltimore City, Maryland. The
arbitrator shall be selected by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The fees of the arbitrator and the expenses incident to the
proceedings shall be borne by the losing party. The reasonable fees of
respective counsel engaged by the parties, and the fees of expert witnesses and
other witnesses called for the parties, shall also be paid by the losing party.
The decision of the arbitrator shall be rendered within thirty (30) days after
the conclusion of the arbitration. A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrator in accordance with
the rules and statutes applicable thereto then

                                       30
<Page>

obtaining. The parties hereto agree that the arbitrator may order and compel
specific performance. Notwithstanding anything to the contrary contained in this
Section 8.7, disputes concerning who is entitle to receive the Earnest Money and
the Earnest Money Note shall not be subject to arbitration.

       8.8.   ATTORNEY FEES. Subject to the provisions of Section 8.7, if either
Inland Affiliate or Holding Company brings suit or other legal proceedings to
enforce the provisions of this Agreement against the other, then the party
prevailing in such suit or proceeding shall be reimbursed by the other for all
reasonable attorneys' fees and litigation costs and expenses incurred by the
prevailing party in connection with such suit or proceeding.

       8.9.   VENUE. Any lawsuit, action, or proceeding arising under this
Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.

       8.10   WAIVER OF JURY TRIAL. Subject to the provisions of Section 8.7,
Inland Affiliate and Holding Company do hereby waive trial by jury in any
action, suit, proceeding, and/or counterclaim brought by either of the parties
hereto against the other on any matters whatsoever arising out of or in any way
connected with this Agreement any claim of injury or damage, and/or statutory
remedy.

       8.11.  HEADINGS. The article and section headings contained in this
Agreement, including the Exhibits attached hereto, are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.

       8.12   ENTIRE AGREEMENT. This Agreement, together with the Other
Agreements, embodies the entire agreement and understanding of the parties
hereto in respect of the subject matter contained herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.

       8.13.  SEVERABILITY. If any one or more provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision of this Agreement, but this Agreement shall
be construed as if such invalid, illegal, or unenforceable provision had never
been contained herein.

       8.14.  INCONSISTENCY OR CONFLICT. In the event of any inconsistency or
conflict between any provision of this Agreement and any provision of any of the
Other Agreements, the provisions of this Agreement shall govern.

       8.15.  EXHIBITS, SCHEDULES AND RECITALS INCORPORATED INTO AGREEMENT. All
exhibits, schedules and recitals form a part of this Agreement.

                                       31
<Page>

       8.16.  CONSTRUCTION. The construction of this Agreement shall not take
into consideration the party who drafted or whose representative drafted any
portion of this Agreement, and no cannon of construction shall be applied that
resolves ambiguities against the drafter of a document. The parties acknowledge
that they were advised by competent counsel that each has chosen to represent
such party and each party has had a full opportunity to comment upon and
negotiate the terms of this Agreement.

       8.17.  DUTY OF COOPERATION. Each of the parties hereto shall cooperate
with the other party generally, and in particular will make available, as the
other party reasonably requests, management decisions, liaison personnel,
information, approvals and acceptances so that the other party may properly
perform its obligations under this Agreement. This provision shall survive
Closing.

       8.18.  FAIR DEALING. The parties recognize and intend that portions of
this Agreement are very general in nature, and the parties acknowledge that they
intend to operate in good faith and deal fairly with one another when
interpreting their respective obligations hereunder.

       8.19.  TIME OF THE ESSENCE. Time is of the essence in the performance of
the obligations of Holding Company and Inland Affiliate under this Agreement.

       8.20.  INTERPRETATION. Except as otherwise expressly provided herein, the
following rules of interpretation apply to this Agreement: (i) the singular
includes the plural and the plural includes the singular except when the context
otherwise requires; (ii) "include" and "including" are not limiting; (iii) a
reference to any agreement or contract includes exhibits, schedules, and
permitted supplements and amendments thereto; (iv) a reference to a Law includes
any amendment or modification to such law and any rules or regulations issued
thereunder, and (v) a reference to a person includes such person's permitted
successors and assigns.

       8.21.  BUSINESS DAY. The term "BUSINESS DAY" means any day other than
Saturday, Sunday or any other day on which commercial banks or savings and loan
associations are required or authorized by law to close in New York City.

                             SIGNATURES ON NEXT PAGE

                                       32
<Page>

       IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
under seal, as of the date first above written.

WITNESS/ATTEST:              HOLDING COMPANY:

                             CORDISH TOWSON CIRCLE, LLC, a Maryland
                             limited liability company

/s/ [ILLEGIBLE]              By: /s/ Charles F. Jacobs
---------------                 -----------------------------------------(SEAL)
                                Charles F. Jacobs, Authorized Person

                             INLAND AFFILIATE:

                             INLAND TOWSON HC, L.L.C., a Delaware
                             limited liability company,

                             By: Inland Western Retail Real Estate Trust, Inc.,
                                 a Maryland corporation, its sole member

/s/ [ILLEGIBLE]              By: /s/ [ILLEGIBLE]
---------------                 --------------------------------------(SEAL)
                             Name: [ILLEGIBLE]
                                  ------------------------------------
                             As Its: [ILLEGIBLE]
                                    ----------------------------------

       CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, for good and
valuable consideration , the receipt and adequacy of which it hereby
acknowledges, executes this Contribution Agreement under seal as of the date
first above written, to acknowledge its receipt of an original copy of this
Agreement as executed by Holding Company, and Inland Affiliate and to
acknowledge its agreement to act as Escrowee in accordance with the terms and
conditions set forth in Section 1.1 hereof and to comply with the provisions of
Section 1.5 hereof.

WITNESS/ATTEST                          ESCROWEE :

                                        CHICAGO TITLE INSURANCE
                                        COMPANY, a New York corporation,

/s/ [ILLEGIBLE]                         By: /s/ Nancy R. Castro
---------------                           -------------------------------(SEAL)
                                        Name: Nancy Castro
                                             ----------------------------
                                        Title: AVP
                                              ---------------------------------

                                       33

<Page>

       INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation
("INLAND"), for Ten and 00/100 Dollars ($10.00) and other good and valuable
consideration, the receipt and adequacy of which it hereby acknowledges, hereby
guarantees to Holding Company the prompt payment by Inland Affiliate of all
amounts, costs and expenses that Inland Affiliate may be obligated to pay or
deposit pursuant to Sections 1.1., 8.7 and 8.8, above including any and all
costs and expenses of Holding Company that Inland Affiliate may be obligated to
pay Holding Company pursuant to the provisions of Sections 1.1, 8.7 and 8.8
above. Such guaranty shall be primary and not secondary and Inland shall be
deemed jointly and severally liable with Inland Affiliate in connection with the
obligation to pay any such amount, cost or expense. In addition, Inland hereby
agrees to be bound by the provisions of Sections 1.1, 8.7, 8.8, 8.9 and 8.10
above. Notices by Holding Company to Inland shall be deemed properly given if
addressed to Inland, care of Inland Affiliate in accordance with the provisions
of Section 8.6 above. Inland also agrees that in the event the Earnest Money
Note is wrongfully or negligently delivered to Inland by Escrowee or by a Court,
upon the request of Holding Company, Inland shall issue and deliver to Holding
Company a replacement Earnest Money Note, payable to the order of Holding
Company, that is in the same form, dated as of the same date and in the same
amount as the original Earnest Money Note. Inland has executed this Agreement
under seal as of the date first above written.

WITNESS/ATTEST:                 INLAND WESTERN RETAIL REAL ESTATE
                                TRUST, INC, a Maryland corporation

/s/ [ILLEGIBLE]                 By: /s/ [ILLEGIBLE]
-----------                        -------------------------------(Seal)
                                Name:[ILLEGIBLE]
                                     -----------------------------
                                As Its: [ILLEGIBLE]
                                       ---------------------------

                                       34

<Page>

                                   EXHIBIT 1.5
                             METHOD OF DISTRIBUTION

       1.     One Hundred Fifty Thousand Dollars and 00/100 Dollars
($150,000.00) shall be paid at the direction of Cordish Affiliate in connection
with costs and expenses, such as legal costs and fees, incurred by Cordish
Affiliate in connection with this Agreement and the transactions entered into
pursuant to this Agreement

       2.     Five Hundred Thousand and no/100 Dollars ($500,000) shall be paid
be paid by Escrowee to Withdrawing Member as a fee, such amount to be
distributed pursuant to Withdrawing Member's written instructions to Escrowee.

       3.     Four Hundred Thousand and 00/100 Dollars ($400,000.00) shall be
paid by Escrowee to Holding Company, for deposit to the Operations Reserve, to
be held and distributed therefrom pursuant to the terms and in accordance with
the conditions set forth in the Operating Agreement.

       4.     The dollar amount that is required to pay-off or defease the
Existing Loan in its entirety shall be paid by Escrowee. (If the Existing Loan
is being defeased, the defeasance shall be arranged by Holding Company.)

       5.     The Escrow Amount shall be retained and distributed by Escrowee
pursuant to the terms and in accordance with the conditions set forth in the
Escrow Agreement.

       6.     The Liquidity Amount shall be retained and distributed by Escrowee
pursuant to the terms and in accordance with the conditions set forth in the
Liquidity Amount Escrow Agreement.

       7.     After deducting the payments made pursuant to items 1 through 6 of
this EXHIBIT "1.5", 50% of the balance of the Capital Contribution shall be paid
by Escrowee to Withdrawing Member, in retirement and liquidation of the interest
of Withdrawing Member in Subsidiary, such amount to be distributed pursuant to
Withdrawing Member's written instructions to Escrowee.

       8.     After deducting the payments made pursuant to items 1 through 7 of
this EXHIBIT "1.5", the balance of the Capital Contribution shall be paid to
Holding Company, for deposit to the Operations Reserve to be held and
distributed therefrom pursuant to the terms and in accordance with the
conditions set forth in the Operating Agreement.

<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                    EXHIBIT A
FEE SIMPLE PARCELS

PARCEL ONE
SOUTH SIDE OF JOPPA ROAD
EAST OF DULANEY VALLEY ROAD

   Being known as Condominium Unit No. 1, as more particularly described and
subject to and with the benefit of that certain Amended and Restated Declaration
and By-Laws for Towson Circle South Condominium, recorded in Liber S.M. 12568
folio 105, and as shown on the plat entitled "Amended Plat Towson Circle South
Condominium", which plat is recorded in Condominium Plat Book S.M. 21, Folio 31,
32, 33 and 34, together with an undivided 55+/- interest in the common elements
and in the common expenses and common profits of the Towson Circle South
Condominium.

   Together with and subject to the benefit of certain provisions as set forth
in a Declaration Governing Access and Parking dated December 28, 1990, and
recorded in Liber S.M. 8682 folio 729 between Towson Town Center Associates and
Joppa Associates.

PARCEL TWO
2.197 ACRE PARCEL
NORTH SIDE OF JOPPD.ROAD
EAST SIDE OF DULANEY VALLEY ROAD
9TH ELECTION DISTRICT, BALTIMORE COUNTY; MARYLAND

     Beginning ,for the same at the intersection of the north side of Joppa Road
with the east side of Dulaney Valley Road at the point designated "HW 13" as
shown on the plot dated., August 20, 1992, entitled "Amended Plat 1 of 3 Towson
Town Center" and recorded among the Land Records of Baltimore County, Maryland
in Plat Book S.M. 65, Folio 26, at a cross-cut set in the concrete walk, thence
leaving said point of beginning and binding on the east side of Dulaney Valley
Road and binding an the outlines of Joppa Development Parcel 1 shown on said
plat, referring all courses of this description to the Grid Meridian established
in the Baltimore County Metropolitan District, the two following courses and
distances, viz: (1) North 43 degrees 23 minutes 48.seconds West 33.36 feet, and
thence (2) North 11 degrees 14 minutes 03 seconds East 171.84 feet, thence
leaving Dulaney Valley Road and continuing to bind on the outlines of Joppa
Development, Parcel 1 as shown on said plat, the eight following courses and
distances, viz: (3) South 83 degrees 28 minutes 29 seconds East 286.10 feet,
thence (4) North 06 degrees 31 minutes 31 seconds East 177.66 feet, thence (5)
North 84 degrees 39 minutes 34 seconds East 75.25 feet, thence (6) South 05
degrees 20 minutes 26 seconds East 27.58 feet, thence (7) South 31 degrees 54
minutes 20 seconds East 41.19 feet, thence (8) South 68 degrees 46 minutes 32
seconds East 41.49 feet, thence (9) South 03 degrees 40 minutes 16 seconds East
185,45 feet, and thence (10) South 41 degrees 19 minutes 44 seconds West 71.36
feet, to the proposed northern most right-of-way line of Joppa Road as shown on
the hereinmentioned plat, at a cross-cut set in the concrete walk, thence
binding on said proposed north side of Joppa Road and continuing to bind on the
outlines of Joppa Development Parcel 1 as shown on said

<Page>

plat, the two following courses and distances, viz: (11) Southwesterly by a line
curving to the right having a radius of 5687.30 feet for a distance of 9.78
feet, (the arc of said curve being subtended by a chord bearing South 86 degrees
09 minute's 33 seconds West 9.78 feet), and thence (12) South 86 degrees 12
minutes 29 seconds West 408.81 feet to the point of beginning; containing 2.197
acres of land, more or less; as surveyed by Daft-McCune-Walker, Inc., in August,
1992.

     Being all of the second described parcel of land which by deed dated June
30, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12292, Folio 539, was conveyed by Joppa Associates to Towson Circle
Joint Venture LLP.

     Being also all of the parcel of land designated Joppa Development Parcel 1
as shown on the plot dated August 20, 1992, entitled "Amended Plat 1 of 3 Towson
Town Center" and recorded among the Land Records of Baltimore County, Maryland
in Plat Book, S.M. 65, Folio 26.

PARCEL 3
0.121 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same at a point situate on the east side of Delaware
Avenue at a 1/2-inch diameter pipe found at the end of the following course and
distance measured from the intersection of the East side of Delaware Avenue with
the South side of Shealy Avenue at a 1-inch diameter iron pipe found at the end
of the first or North 01 degree West 37 foot line of the first described parcel
of land which by deed dated March 28, 1983, and recorded among the Land Records
of Baltimore County, Maryland, in Liber E.H.K., Jr. 6509, Folio 440, was
conveyed by Richard M. Kremen to Paul S. Brody, South 08 degrees 26 minutes 54
seconds East 110.50 feet, thence leaving said point of beginning and binding on
the Past side of Delaware Avenue and running reversely with and binding on the
first or South 03 degrees East 25 foot line of the parcel of land which by deed
dated May 11, 1984, and record and among the Land Records of Baltimore County,
Maryland, in Liber E.H.K., Jr. 6714. Folio 676, was conveyed by Mercantile-Safe
Deposit and Trust Company to Baltimore County Revenue Authority, referring all
courses of this description to the Grid Meridian established in the Baltimore
County Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West
25.00 feet, thence running reversely with and binding an the last, third and
second lines of the second hereinmentioned deed the three following courses and
distances, viz: (2) North 87 degrees 30 minutes 48 seconds East 208.25 feet,
thence (3) South 07 degrees 40 minutes 00 seconds West 27.18 feet, and thence
(4) South 88 degrees 03 minutes 06 seconds West 240.87 feet to the point of
beginning, containing 0.121 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July 1947. The improvements thereon also being
known as #506 Delaware Avenue.

     Being all the parcel of land which by deed dated August 11, 1997, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
12321, Folio

<Page>

463, was conveyed by Baltimore County Revenue Authority to Heritage Properties,
Inc. December 17, 1998

PARCEL FOUR
0.293 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same an the east side of Delaware Avenue at the end of
the following course and distance measured from a 1-inch diameter iron pipe
found at the intersection of the east side of Delaware Avenue with the south
side of Shealy Avenue, said point also being at the end of the first or South 03
degrees East 49 foot 6 inch line of the land which by deed dated November 28,
1988, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 8369, Folio 283, was conveyed 6y Edward C. Covahey, Jr., to
Paul S. Brady, South 08 degrees 26 minutes 54 seconds East 86.50 feet, thence
leaving said point of beginning and binding on the east side of Delaware Avenue
and running reversely with and binding on the said first line, referring all
courses of this description to the Grid Meridian established in the Baltimore
County Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West
49.50 feet, thence running reversely with and binding on the last line of the
hereinmentioned deed (2) North 82 degrees 31 minutes 59 seconds East 226.59
feet to the 1-inch diameter iron pipe found, thence running reversely with and
binding on the third or North 11 degrees East 70 foot, more or less, line and
the second or South 88 degrees East 210 foot tine of the hereinmentioned deed,
the two following courses and distances, viz: (3) South 07 degrees 40 minutes 00
seconds West 70.00 feet, and thence (4) South 87 degrees 30 minutes 48 seconds
West 208.25 feet to the point of beginning; containing 0.293 acres of land, more
or less, as surveyed by Daft-McCune-Walker, inc., in July, 1997. The unimproved
lot also being known as #510 Delaware Avenue.

     Being all of the land which by deed dated November 29,'1988, and recorded
among the Land Records of Baltimore County, Maryland, in Liber S.M. 8369, Folio
283, was conveyed by Edward C. Covahey, Jr., to Paul S. Brody. August 1, 1997.

PARCEL FIVE

0.247 ACRE PARCEL

EAST SIDE OF DELAWARE AVENUE

SOUTH SIDE OF SHEALY AVENUE

9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the east side of Delaware
Avenue with the south side of Shealy Avenue at a 1-inch diameter iron pipe
found, said point also being at

<Page>

the beginning of the second or North 89 degrees 29 minutes East 281.10 foot line
of the first described parcel of land which by deed dated March 28, 1983, and
recorded among the Land Records of Baltimore County, Maryland, in Liber E.H.K.,
Jr. 6509, Folio 440, was conveyed by Richard , M. Kremen to Paul S. Brody,
thence leaving said point of beginning and binding on the south side of Shealy
Avenue and running with and binding on said second line, referring all courses
of this description to the Grid Meridian established in the Baltimore County
Metropolitan District (1) North 82 degrees 40 minutes 04 seconds East 280.70
feet to a 1-inch square iron bar found in the iron fence erected around the
Shealy Family Burying Ground, thence running with and binding on the third line
of the hereinmentioned deed and along said Burying Ground (2) South 08 degrees
43 minutes 14 seconds East 39.82 feet to a point in the second or South 87 1/4
degree West 81 foot line of the second described parcel of land, which by deed
dated March 23, 1978, and recorded among the Land Records of Baltimore County,
Maryland, in Liber E.H.K., Jr. 5866, Folio 868, was conveyed by Towson
Associates to G.B. Stumpp Associates, Incorporated, thence running with and
binding on part of said second line and running with and binding on the fourth
or South 89 degrees 15 minutes West 54.54 foot line of the first
hereinmentioned deed, (3) South 82 degrees 45 minutes 15 seconds West 54.34
feet to a 1-inch diameter iron pipe found, thence running with and binding on
the last line of the first hereinmentioned deed (4) South 82 degrees 31 minutes
59 seconds West 226.59 feet to the east side of Delaware Avenue, thence binding
thereon (5) North 08 degrees 26 minutes 54 seconds West 37.00 feet to the point
of beginning; containing 0.247 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July, 199. The improvements also being known as
#512 Delaware Avenue and also known as 100-102 Shealy Avenue.

     Being all of the first described parcel of land which by deed dated March
31, 1997, and recorded among Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998.

 PARCEL SIX
 0.076 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH SIDE OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the west side of Virginia
Avenue with the south side of Shealy Avenue at a cross cut found in the
concrete curb, said point being at the end of the first or North 05 degrees 17
minutes 11 seconds West 39.50 foot line of the land which by deed dated
September 19, 1990, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 8621, Folio 591, was conveyed by George B. Stumpp to
Shealy-Virginia Limited Partnership, thence leaving said point of beginning and
running reversely with and binding on said first line and binding on the west
side of Virginia Avenue, referring all courses of this description to the Grid
Meridian established in the Baltimore County Metropolitan District, (1) South 05
degrees 13 minutes 24 seconds East 39.50 Feet to a limestone with a cross cut
found at the beginning of the heretoforementioned first line, thence running
reversely with and binding on the last line of the first hereinmentioned deed
and running with and binding

<Page>

on a portion of the first or South 81 degrees 12 minutes 49 seconds West 94.40
foot line of the land which by deed dated September 19, 1940, and recorded among
the Land Records of Baltimore County, Maryland in Liber S.M. 8614, Folio 641,
was conveyed by G.B. Stumpp Associates, Incorporated, to Shealy-Virginia Limited
Partnership (2) South 81 degrees 18 minutes 35 seconds West 82.51 feet to the
end of the third or South 12 degrees 02 minutes 31 seconds East 39.00 foot line
of the first hereinmentioned deed, said point being the southwest corner of the
Shealy Family Burying Ground, thence binding along said Burying ground and
running reversely with and binding on said third line (3) North 11 degrees 58
minutes 44 seconds West 38.95 feet to the south side of Shealy Avenue and to a
Rebar and Cap found marked "Property Corner P3," thence binding on the south
side of Shealy Avenue and running reversely with and binding on the second line
of the first hereinmentioned deed , (4) North 80 degrees 57 minutes 28 seconds
East 87.13 feet to the point of beginning; containing 0.076 acres of land, more
or less, as surveyed by Daft-McCune-Walker, Inc., in July, 1997, The unimproved
lot being also known as #513 Virginia Avenue.

     Being all of the first described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 122, was conveyed by Shealy-Virginia Limited Partnership
to Heritage Properties, Inc. December 23, 1998

PARCEL SEVEN
0.111 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same on the west side of Virginia Avenue at a limestone
with a cross cut found at the beginning of the second described parcel of land,
which by deed dated March 23, 1478, and recorded among the Land Records of
Baltimore County, Maryland, in Liber E.H.K., Jr. 5866, Folio 868, was conveyed
by Towson Associates to G.B. Stumpp Associates, Incorporated, thence leaving
said point of beginning and binding on the west side of Virginia Avenue and
running reversely with and binding on the last tine oEURO the second described
parcel of the hereinmentioned deed, referring all courses of this description
to the Grid Meridian established in the Baltimore County Metropolitan District,
(1) South 11 degrees 52 minutes 26 seconds West 59.69 feet, thence running
reversely with and binding on the third or South 72 1/2 degree East 164.2 foot
line of the second described parcel of the hereinmentioned deed (2) North 78
degrees 07 minutes 32 seconds West 164.90 feet to a 1-inch diameter iron pipe
found, thence running reversely with and binding on the second or South 87 1/4
degree West 81 foot line of the second described parcel of the hereinmentioned
deed (3) North 82 degrees 45 minutes 15 seconds Fast 81.04 feet to a limestone
found, thence running with and binding on the first or South 87 1/2 degree West
44 foot line of the second described parcel of the hereinmentioned deed, (4)
North 81 degrees 18 minutes 35 seconds East 99.35 feet to the point of
beginning; containing 0.111 acres of land, more or less, as surveyed by Daft-

<Page>

McCune-Walker, Inc., in July, 1997. the unimproved lot also being known as
#509-511 Virginia Avenue.

     Being all that second described parcel of land which by deed dated March
31, 1947, and recorded among the Land Records of Baltimore County, Maryland, in
Liber 5M 12107, Folio 122, was conveyed by Shealy-Virginia United Partnership to
Heritage Properties, Inc. December 23,1998

PARCEL EIGHT
0.260 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at a point situate on the west side of Virginia
Avenue the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning of
that parcel of land which by deed dated September 19, 1990, and recorded among
the Land Records of Baltimore County, Maryland, in Liber S.M. 8614, Folio 646,
was conveyed by G.B. Stumpp Associates, Incorporated, to Shealy-Virginia Limited
Partnership South 11 degrees 52 minutes 56 seconds West 59.69 feet, said point
also being the end of the first or North 14 degrees East 70 foot line of the
third described parcel of land which by deed dated February 1, 1977, and
recorded among the Land Records of Baltimore County, Maryland, in Liber E.H.K.,
Jr. 5722, Folio 295, was conveyed by University National Bank, David W. Irey,
and Theodore Coleman to Paul S. Brody, thence leaving said point of beginning
and running reversely with and binding on said first line, and binding on the
west side of Virginia Avenue, and referring all courses of this description to
the Grid Meridian established in the Baltimore County Metropolitan District (I)
South 11 degrees 52 minutes 56 seconds West 69.81 feet, thence running reversely
with and binding an the last line of the third described parcel of the second
hereinmentioned deed and running reversely with and binding on the second line
of the first described parcel of the second hereinmentioned deed (2) North 78
degrees 07 minutes 32 second, West 159.76 feet, thence running reversely with
and binding on the third line of the third described parcel of the second
hereinmentioned deed (3) North 07 degrees 40 minutes 00 seconds East 70.00 feet
to a 1-inch diameter iron pipe found at the end of the second or North 75
degrees West 158 foot, more or less, line of the third described parcel of the
second hereinmentioned deed, thence running reversely with and binding on the
second line of the third described parcel of the second hereinmentioned deed and
running with and binding an the Fourth or South 75 degrees East 158 foot line of
the first hereinmentioned deed (4) South 78 degrees 07 minutes 32 seconds East
16-3.90 feet to the point of beginning; containing 0.260 acres of land, more or
less, as surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot
also being known as #505-507 Virginia Avenue.

<Page>

     Being all of the fourth described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties. Inc. December 17, 1998

PARCEL NINE
0.252 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at a point situated on the west side of Virginia
Avenue at the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning
point of that parcel of land which by deed dated September 19, 1990, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
8614, Folio 646, was conveyed by G.B. Stumpp Associates, Incorporated, to
Shealy-Virginia Limited Partnership, South 11 degrees 52 minutes 56 seconds West
129.50 feet, said point also being the end of the first or North 14 degrees East
70 foot line of that first described parcel of land which by deed dated February
1, 1977, and recorded among the Land Records of Baltimore County, Maryland, in
Liber E.H.K., Jr. 5722, Folio 295, was conveyed by University National Bank,
David W. Irey, and Theodore Coleman to Paul S. Brody, thence leaving said point
of beginning and running reversely with and binding on said first line and
binding on the west side of Virginia Avenue, referring all courses of this
description to the Grid Meridian established in the Baltimore County
Metropolitan District, (1) South 11 degrees 52 minutes 56 seconds West 69.81
feet, thence running reversely with and binding on the last, third, and second
lines of the first described parcel of the second hereinmentioned deed, the
three following courses and distances, viz: (2) North 79 degrees 07 minutes 32
second West 154.61 feet, thence (3) North 07 degrees 40 minutes 00 seconds East
70.00 feet, and thence (4) South 78 degrees 07 minutes 32 seconds East 159.76
feet to the point of beginning; containing 0.252 acres of land, more or less, as
surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot also
being known as #503 Virginia Avenue.

     Being all the third described parcel of land which by deed dated March 31,
1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber SAQ 1210.', Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998

LEASE WITH PURCHASE OPTIONS PROPERTIES:

Penn-Del Property Descriptions:

<Page>

Description Penn-Del, L.L.C. 0.250 Acre Parcel North Side of Pennsylvania Avenue
     West Side of Virginia Avenue Ninth Election District, Baltimore County,
                                    Maryland.

Beginning for the same at the point formed by the intersection of the north side
of Pennsylvania Avenue and the west side of Virginia Avenue, said point being at
the beginning of the third described parcel of land which, by deed dated
December 14, 1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to
Penn-Del, L.L.C., thence running reversely with and binding on the last line of
the third described parcel of the hereinmentioned deed and binding on the north
side of Pennsylvania Avenue, referring all courses of this description to the
Grid Meridian established by the Baltimore County Metropolitan District, (1)
North 83 degrees 38 minutes 38 seconds West 105.18 feet. to a 3/4-inch iron pipe
found, thence running reversely with and binding on the third and second lines
of the third described parcel of the hereinmentioned deed, the two following
courses and distances, viz: (2) North 07 degrees 35 minutes 00 seconds East
105.92 feet, passing over a 1-inch iron pipe found at 100.70 feet, and thence
(3) South 78 degrees 07 minutes 32, seconds East 112.60 feet to a 3/4 inch iron
pin with a 2 inch aluminum cap marked "Daft-McCune-Walker, Inc. Property Marker
C-99" found on the west side of Virginia Avenue, thence binding on the west side
of Virginia Avenue and running reversely with and binding on the first line of
the third described parcel of the hereinmentioned deed, (4) South 11 degrees 52
minutes 56 seconds West 95.01 feet to the point of beginning; containing 0.250
acres of land, more or less, as surveyed by Daft-McCune-Walker, Inc., in
October, 2001.

     Being all of the third described parcel of land which, by deed dated
December 14, 1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M.13383, Folio 551, was conveyed by Paul S. Brody to
Penn-Del; L.L.C.

     The lot also being known as #119 East Pennsylvania Avenue. May 30, 2002.

Description PENN-DEL, LLC. 0.261 Acre Parcel North Side of Pennsylvania Avenue
East Side of Delaware Avenue Ninth Election District, Baltimore County,
Maryland.

   Beginning for the same at the point formed by the intersection of the east
side of Delaware Avenue with the north side of Pennsylvania Avenue, at a
1/2-inch iron pipe found, at the end of the first or South 80 degrees 60-foot
line of the first described parcel of land which, by deed dated December 14,
1998, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to Penn-Del, L.L.C.,
thence running reversely with and binding on said first line of the first
described parcel of the hereinmentioned deed and binding on the east side of
Delaware Avenue, referring all courses of this description to the Grid Meridian
established by the Baltimore County Metropolitan District, (1) North 08 degrees
26

<Page>

minutes 54 seconds West 60.00 feet to a 1 -inch iron pipe found, thence running
reversely with and binding on the last line of the first described parcel of the
hereinmentioned deed, (2) South 89 degrees 15 minutes 39 seconds East 179.28
feet to a 1-inch iron pipe found, thence running reversely with and binding on
the third or North il degrees West 68-foot line of the hereinmentioned deed,
(3) South 07 degrees 40 minutes 00 seconds West 74.91 feet to the north side of
Pennsylvania Avenue at a cross-cut found in the concrete walk; thence binding on
the north side of Pennsylvania Avenue, (4) North 83 degrees 52 minutes 44
seconds West 161.37 feet to the point of beginning; containing 0.261 acres of
land, more or less, as surveyed by Daft-McCune-Walker, Inc., in October 2001.

   Being all of the first described parcel of land which, by deed dated December
14, 1998, and recorded among the Land Records of Baltimore County, Maryland, in
Liber, S.M.13383, Folio 551, was conveyed by Paul S. Brody to Penn-Del, L.L.C.

   The lot also being known as #101 East Pennsylvania Avenue May 29,2002.

Description Penn-Del, L.L.C. 0.332 Acre Parcel East Side of Delaware Avenue
North of Pennsylvania Avenue Ninth Election District, Baltimore County,
Maryland.

     Beginning for the same on the east side of Delaware Avenue, at the end of
the first or South 2.75 degrees East 72 feet 4-inch line of the second described
parcel of land which, by deed dated December 14,1998, and recorded among the
Land Records of Baltimore County, Maryland, in Liber S.M. 13383, Folio 551, was
conveyed by Paul S. Brody to Penn-Del, L.L.C., at a 1-inch iron pipe found,
thence binding on the east side of Delaware Avenue and running reversely with
and binding on said first line, referring all courses of this description to the
Grid Meridian.established by the Baltimore County Metropolitan District, (1)
North OS degrees 26 minutes 54 seconds West 72.35 feet to a 1/2-inch iron pipe
found, thence running reversely with and binding on the last line of the second
described parcel of the herinmentioned deed, (2) North 88 degrees 03 minutes 06
seconds West 200.87 feet, thence running reversely with and binding on the third
line of the second described parcel of the hereinmentioned deed, (3) South 07
degrees 40 minutes 00 seconds West 81,44 feet, passing over a 3/4-inch iron bar
with a cap marked "GWS Prop. Mark" found at 42.83 feet, to a 1-inch iron pipe
found, thence running reversely with and binding on the second line of the
second described parcel of the

<Page>

hereinmentioned deed, (4) North 89 degrees 15 minutes 39 seconds West
179,28feet to the point of beginning; containing 0,332 acres of land, more or
less, as surveyed by Daft-McCune-Walker, Inc., in October, 2001.

     Being all of the second described parcel of land which, by deed dated
December 14,1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to
Penn-Del, L.L.C.

     The lot also being known as #504 Delaware Avenue. May 30, 2002.

  DESCRIPTION ROBERT M. COOK, JR. 0.103 ACRE PARCEL NORTH SIDE OF PENNSYLVANIA
                                 AVENUE EAST OF
Delaware Avenue Ninth Election District, Baltimore County, Maryland

     Beginning for the same at the end of the first or South 75 degrees 33
minutes 42 seconds East 42-foot line of the land which, by deed dated December
30, 1988, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 8127, Folio 430, was conveyed by Maiol Enterprises, Ltd., to Robert
M. Cook, Jr., said point being on the north side of Pennsylvania Avenue
(variable width), at a 3/4-inch iron pipe found, thence binding on the north
side of Pennsylvania Avenue and running reversely with and binding on said first
line, referring all courses of this description to the Grid Meridian established
in the Baltimore County Metropolitan District, (1) North 83 degrees 38 minutes
38 seconds West 42,07 feet to a point North 07 degrees 40 minutes 00 seconds
East 4.06 feet from a cross-cut found in the concrete sidewalk, thence running
reversely with and binding on the last and fourth lines of the hereinmentioned
deed, in all (2) North 07 degrees 40 minutes 00 seconds East 109.47 feet,
passing over a'1-inch iron pipe found at 70.86 feet to a 3/4inch iron bar with a
cap marked "GWS Prop. Mark" found, thence running reversely with and binding on
the third or North 68 degrees 41 minutes 00 seconds West 42 foot line of the
hereinmentioned deed, (3) South 78 degrees 07 minutes 32 seconds East 42.01
feet, thence running reversely with and binding on the second or North 15
degrees 45 minutes East 100-foot line of the hereinmentioned deed, (4) South 07
degrees 35 minutes 00 seconds East 105.42 feet, passing over a 1-inch iron pipe
found, at 4.72 feet, to the point of beginning; containing 0.703 acres of land,
more or less, as surveyed by Daft-McCune-Walker, Inc., in December 2001.

     Being all of the land which, by deed dated December 30, 1988, and recorded
among the Land Records of Baltimore County, Maryland, in Liber S.M. 8127, Folio
430, was conveyed by Maiol Enterprises, Ltd., to Robert M. Cook, Jr.

   The lot also being known as #109 East Pennsylvania Avenue. May 29,2002.

<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                    EXHIBIT B

  THE PROPERTY SERVES AS COLLATERAL FOR THE LOAN DESCRIBED ON EXHIBIT "B" (THE
                                "EXISTING LOAN").

Loan in the amount of $14,000,000.00 evidenced by a Promissory Note, dated as of
December 28, 1998, from Cordish Towson Circle, LLC to The First National Bank of
Maryland, and secured by an Indemnity Deed of Trust and Security Agreement made
by Towson Circle Joint Venture LLP to Anna M. Marcinello and Adele M. Ammons, as
Trustees, for the benefit of The First National Bank of Maryland (now M&T Bank),
and recorded among the Land Records of Baltimore County, Maryland in Liber
13411, folio 634 ET. SEQ.

Current principal balance as of June 1, 2004: $13,143,964.68

<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                    EXHIBIT C

   AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT ATTACHED HERETO AS
                     EXHIBIT "C" (THE "OPERATING AGREEMENT")

<Page>

================================================================================

                            TOWSON CIRCLE HOLDING LLC

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT

                       ----------------------------------
                            DATED AS OF JULY 21, 2004
                       ----------------------------------

================================================================================

<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                   PAGE
                                                                                                   ----
<S>            <C>                                                                                   <C>
ARTICLE I      DEFINED TERMS..........................................................................2

ARTICLE II     CONTINUATION; NAME; PRINCIPAL OFFICE; PURPOSE; TERM...................................12

        SECTION 2.1.    Continuation.................................................................12
        SECTION 2.2.    Name, Registered Office, and Resident Agent;
                        Principal Place of Business..................................................13
        SECTION 2.3.    Purpose......................................................................13
        SECTION 2.4.    Term.........................................................................14
        SECTION 2.5.    Classification of the Company for Tax Purposes...............................14
        SECTION 2.6.    Liability of the Members.....................................................14
        SECTION 2.7.    Ownership and Waiver of Partition and Valuation..............................15
        SECTION 2.8.    Waiver of Right to Judicial Dissolution......................................15

ARTICLE III    MEMBERS; COMPANY CAPITAL; PERCENTAGE INTERESTS........................................16

        SECTION 3.1.    Members......................................................................16
        SECTION 3.2.    Initial Capital Contributions................................................16
        SECTION 3.3.    Additional Capital Contributions.............................................17
        SECTION 3.4.    Funding of Additional Cash Requirements......................................17
        SECTION 3.5.    Loans........................................................................19
        SECTION 3.6.    No Third Party Beneficiaries.................................................19
        SECTION 3.7.    Capital Accounts.............................................................19
        SECTION 3.8.    Return of Capital............................................................20

ARTICLE IV     DISTRIBUTIONS; PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT OF EXISTING DEBT..........20

        SECTION 4.1.    Payments to Withdrawing Member and Repayment of Existing Debt................20
        SECTION 4.2.    Distributions of Net Cash Flow...............................................21
        SECTION 4.3.    Net Proceeds of a Capital Transaction........................................22
        SECTION 4.4     Net Proceeds of a Financing..................................................22
        SECTION 4.5.    Other Distribution Rules.....................................................23
        SECTION 4.6.    Withholding..................................................................23
</Table>

                                       -i-
<Page>

<Table>
<S>            <C>                                                                                   <C>
ARTICLE V      ALLOCATION OF PROFITS AND LOSSES......................................................24

        SECTION 5.1.    Profits and Losses...........................................................24
        SECTION 5.2.    Regulatory and Special Allocations...........................................26
        SECTION 5.3.    Other Allocation Rules.......................................................26
        SECTION 5.4.    Tax Allocations: Code Section 704(c).........................................27

ARTICLE VI     GOVERNANCE AND ADMINISTRATIVE PROVISIONS..............................................27

        SECTION 6.1.    Management of Business and Affairs...........................................27
        SECTION 6.2.    Delegation of Authority Regarding Specific Matters...........................32
        SECTION 6.3.    Duties and Conflicts.........................................................36
        SECTION 6.4.    Operations Reserve...........................................................36
        SECTION 6.5     Acquisition of Additional Properties.........................................37
        SECTION 6.6     Compliance with Certain Requirements.........................................40
        SECTION 6.7     Exculpation and Indemnification..............................................40

ARTICLE VII    BOOKS AND RECORDS; RESERVES...........................................................41

        SECTION 7.1.    Bank Accounts................................................................41
        SECTION 7.2.    Books of Account.............................................................42
        SECTION 7.3.    Operating Statements.........................................................42
        SECTION 7.4.    The Accountant...............................................................43
        SECTION 7.5.    Tax Matters Member...........................................................44

ARTICLE VIII   TRANSFER OF LLC INTERESTS.............................................................46

        SECTION 8.1.    No Transfer..................................................................46
        SECTION 8.2.    Permitted Transfers..........................................................47
        SECTION 8.3.    Succession by Operation of Law...............................................48
        SECTION 8.4.    Additional Restrictions on Transfers.........................................48

ARTICLE IX     DISSOLUTION AND TERMINATION OF THE COMPANY............................................48

        SECTION 9.1.    Dissolution..................................................................48
        SECTION 9.2.    Termination..................................................................49
        SECTION 9.3.    Liquidating Member...........................................................49
        SECTION 9.4     Termination Rights...........................................................49
        SECTION 9.5.    Closing......................................................................51
        SECTION 9.6.    Purchase Price on Redemption of Cordish LLC Interests........................52

ARTICLE X      MISCELLANEOUS.........................................................................53

        SECTION 10.1.   Further Assurances...........................................................53
        SECTION 10.2.   Notices......................................................................53
        SECTION 10.3.   Independent Representation...................................................54
</Table>

                                      -ii-
<Page>

<Table>
<S>                     <C>                                                                          <C>
        SECTION 10.4.   Governing Law................................................................54
        SECTION 10.5.   Captions.....................................................................54
        SECTION 10.6.   Pronouns.....................................................................55
        SECTION 10.7.   Successors and Assigns.......................................................55
        SECTION 10.8.   Extension Not a Waiver.......................................................55
        SECTION 10.9.   Construction.................................................................55
        SECTION 10.10.  Severability.................................................................55
        SECTION 10.11.  Consents.....................................................................55
        SECTION 10.12.  Entire Agreement.............................................................55
        SECTION 10.13.  Rules of Construction........................................................56
        SECTION 10.14.  Counterparts.................................................................56
        SECTION 10.15.  Expenses.....................................................................56
        SECTION 10.16.  Arbitration..................................................................57
        SECTION 10.17.  General Indemnity/Liability..................................................58

SCHEDULES

Schedule A     List of Members
Schedule 5.2   Regulatory and Special Allocations

EXHIBITS

Exhibit A      Description of Existing Property and Owner Entity
Exhibit B      Approved Financing of Properties
Exhibit C      Form of REIT Declaration of Trust
Exhibit D      Form of Promissory Note
Exhibit E      Calculations Exhibit
</Table>

                                      -iii-
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

     THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this
"AGREEMENT") dated as of July __, 2004 is made by and between CORDISH TC LLC, a
Maryland limited liability company (collectively "CORDISH"), and INLAND TOWSON
HC L.L.C., a Delaware limited liability company ("INLAND").

                             PRELIMINARY STATEMENTS

     Cordish Towson Circle, LLC (the "COMPANY") was reorganized as a limited
liability company under the Delaware Limited Liability Company Act pursuant to
the filing of a Certificate of Formation of the Company and an Agreement and
Certificate of Merger with the Office of the Secretary of State of the State of
Delaware on July______, 2004, and a Limited Liability Company Agreement dated
July_____, 2004 (the "ORIGINAL AGREEMENT"). In connection with such
reorganization, the Company changed its name to "Towson Circle Holding LLC."

     The Company is a 50% member of Towson Circle, LLC, a Maryland limited
liability company (the "OWNER ENTITY") which owns and operates Towson Circle,
Baltimore County, Maryland (the "EXISTING PROPERTY").

     Pursuant to the terms of a Contribution Agreement dated July_____, 2004,
Inland has agreed to make certain cash contributions to the Company in exchange
for a membership interest in the Company. In connection with the investment by
Inland in the Company, the Company shall contribute certain funds to the Owner
Entity and the membership interest of the Withdrawing Member in the Owner Entity
shall be purchased and redeemed by the Owner Entity in accordance with the terms
hereof so that immediately after the admission of Inland and the closing under
the Contribution Agreement, the Company shall own one hundred percent (100%) of
the membership interests in the Owner Entity.

     Immediately prior to the date hereof, the sole members of the Company were
Cordish Enterprises, LLLP, The Cordish Family I, LLC, Glenn L. Weinberg,
Joseph S. Weinberg and Jacobs Family Investments, LLC (collectively, the
"ORIGINAL MEMBERS"). Pursuant to the terms of an Assignment and Contribution of
Membership Interest Agreement, effective as of the date hereof, each of the
Original Members has assigned and contributed its entire membership interest in
the Company to Cordish and has withdrawn as a Member of the Company, so that
effective immediately following the admission of Inland as a Member of the
Company under the terms of the Contribution Agreement and this Agreement, the
sole Members of the Company shall be Inland and Cordish.

     The parties hereto now desire to enter into this Amended and Restated
Limited Liability Company Agreement in order to (i) reflect the withdrawal of
the Original Members as Members of the Company, (ii) reflect the admission of
Cordish and Inland as Members of the Company and (iii) establish the manner in
which the business and affairs of the Company shall be managed

<Page>

and to determine the respective rights, duties and obligations of the Members
with respect to the Company and each other.

     NOW THEREFORE, the parties hereto, in consideration of the foregoing
premises and the mutual covenants and agreements contained herein, hereby agree
as follows:

                                    ARTICLE I

                                  DEFINED TERMS

     The following terms shall have the following meanings when used herein:

     ADDITIONAL CAPITAL CONTRIBUTIONS: The Capital Contributions made by a
Member, if any, to fund the acquisition and/or ownership by the Company,
directly or indirectly, of a Property.

     ADDITIONAL PROPERTY: Each direct or indirect ownership interest which the
Company acquires in a property in accordance with the terms of Section 6.5
hereof, together with all related assets and properties, whether, real, personal
or mixed, tangible or intangible, used in connection therewith. Subject to the
terms of Section 6.2.D hereof, an Additional Property may include an equity
interest in an entity that owns a property, including, but not limited to, an
equity interest in an Affiliate of a Member. The Existing Property shall not
constitute an Additional Property. Each Additional Property shall be acquired
and owned in a separate Additional Property Owner Entity.

     ADDITIONAL PROPERTY OWNER ENTITY: Each of the limited liability companies
that is the owner of an Additional Property. Each Additional Property Owner
Entity shall be wholly-owned by the Company.

     ADJUSTED CAPITAL ACCOUNT DEFICIT: With respect to any Member, the deficit
balance, if any, in such Member's Capital Account as of the end of the relevant
Allocation Year, after giving effect to the following adjustments: (i) credit to
such Capital Account any amount that such Member is obligated to restore
pursuant to any provision of this Agreement, is otherwise treated as being
obligated to restore under Treasury Regulation Section 1.704-l(b)(2)(ii)(c), or
is deemed to be obligated to restore pursuant to the penultimate sentences of
Treasury Regulation Sections 1.704-2(g)(l) and 1.704-2(i)(5); and (ii) debit to
such Capital Account the items described in Treasury Regulations Sections
1.704-l(b)(2)(ii)(d)(4), (5) and (6). The foregoing definition of Adjusted
Capital Account Deficit is intended to comply with the provisions of Treasury
Regulation Section 1.704-l(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

     ADJUSTED CAPITAL BALANCE: With respect to (a) Inland, an amount equal to
$28.45 million, plus any additional Capital Contributions made pursuant to
Section 3.3.A of this Agreement and Section 1.4.1 of the Contribution Agreement,
less the amount of all distributions made to Inland pursuant to the provisions
of Sections 4.3(iv) and 4.4(ii) and (b) Cordish, the amount set forth opposite
Cordish's name on Schedule A attached hereto, (i) less the amount of all
distributions made to Cordish pursuant to Sections 4.3(ii) and 4.4(iv), and (ii)
increased from time to time in accordance with the provisions of Section 3.2.B
hereof.

                                       -2-
<Page>

     ADDITIONAL PROPERTY OWNER ENTITY AGREEMENT: The Operating Agreement of each
Additional Property Owner Entity, as the same may be amended or modified from
time to time.

     AFFILIATE: With respect to any Person, (i) any Person directly or
indirectly controlled by, controlling or under common control with such Person,
(ii) any officer, director, general partner or manager of such Person, or (iii)
any Person which owns, directly or indirectly, ten percent (10%) or more of any
class of voting securities of such Person or which exercises control over the
management of such Person. For the purposes of this Agreement, "control" when
used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities or other beneficial interests, by contract or
otherwise; and the term "controls", "controlling" and "controlled" have the
meanings correlative to the foregoing.

     ALLOCATION YEAR: Means (i) the period commencing on the Closing Date and
ending on December 31, 2004, (ii) any subsequent period commencing on January 1
and ending on the following December 31, or (iii) any portion of the period
described in clause (ii) for which the Company is required to allocate Profits,
Losses and other items of Company income, gain, loss or deduction pursuant to
Article V.

     APPROVED FINANCING: Means any financing or refinancing of a Property on the
terms set forth on EXHIBIT B hereto.

     BUSINESS DAY: Any day other than Saturday, Sunday or any other day on which
commercial banks or savings and loan associations are required or authorized by
law to close in New York City.

     CAPITAL ACCOUNT: The Capital Account maintained for each Member pursuant to
Section 3.7.

     CAPITAL CONTRIBUTION: With respect to any Member, the amount of money and
the initial Gross Asset Value of any property contributed by or credited to such
Member, to the Company (net of any liabilities secured by such property or to
which such property is otherwise subject, determined taking into account Code
Section 752(c) and the Treasury Regulations thereunder, and any other applicable
provisions of the Code and the Regulations).

     CAPITAL EXPENDITURES: For any period, the amount expended for items
capitalized under generally accepted accounting principles, consistently
applied, except for such items as are otherwise classified under this Agreement.

     CAPITAL TRANSACTION: Any of the following: (a) a sale, exchange, transfer,
assignment or other disposition of all or a portion of any Company Asset other
than tangible personal property that is not sold or transferred in connection
with the sale or transfer of real property or a leasehold interest in real
property; (b) any condemnation or deeding in lieu of condemnation of all or a
portion of any Company Asset; (c) any fire or other casualty to the Property or
any other Company Asset; and (d) the financing or refinancing of any Additional
Property.

     CASH SHORTFALL: For any period and, to the extent applicable, with respect
to the Owner Entity and each Additional Property Owner Entity, the excess, if
any, of (a) Operating Expenses

                                       -3-
<Page>

over (b) Gross Receipts (determined, to the extent applicable, for each of the
Company, the Owner Entity and each Additional Property Owner Entity).

     CASH SHORTFALL LOAN: A loan made by a Member (or Affiliate or other Person
designated by a Member) to the Owner Entity or an Additional Property Owner
Entity pursuant to Section 3.4.A or 3.4.B hereof, on the terms set forth in
Section 3.4.C and Section 3.4.E hereof.

     CERTIFICATE: The Certificate of Formation for the Company filed with the
Secretary of State, pursuant to Section 18-201 of the LLC Act, as the same may
be amended and restated from time to time.

     CLOSING DATE: Means the date of this Agreement.

     CODE: The Internal Revenue Code of 1986, as amended, or any corresponding
provision or provisions of prior or succeeding law.

     COMPANY: Cordish Towson Circle, LLC, which has been renamed and reorganized
as Towson Circle Holding LLC, a limited liability company formed under the laws
of the State of Delaware, and any successor limited liability company.

     COMPANY ASSET: Any of the assets and property, whether tangible or
intangible and whether real, personal, or mixed, at any time owned by or held
for the benefit of the Company or any Owner Entity or Additional Property Owner
Entity and all membership or beneficial interests in each Owner Entity and
Additional Property Owner Entity.

     COMPANY MINIMUM GAIN: Has the meaning given to the term "partnership
minimum gain" set forth in Treasury Regulations Section 1.704-2(d).

     CONTRIBUTION AGREEMENT: The Contribution Agreement between the Company and
Inland, dated July________, 2004, as amended through the date hereof.

     CORDISH: Cordish TC LLC, a Maryland limited liability company.

     CORDISH LLC INTEREST (OR LLC INTEREST OF CORDISH): The entire LLC Interest
in the Company held directly or indirectly by Cordish, any Cordish Affiliate and
any and all successors and permitted assignees of Cordish and/or any Cordish
Affiliate.

     CORDISH PREFERRED RETURN: A per annum rate equal to 6.0% per annum on
Cordish's Adjusted Capital Balance as adjusted from time to time, provided,
however, that such rate shall be pro rated for each Fiscal Year of the Company
which is less than twelve (12) full months.

     DECLARATION OF TRUST: is defined in section 6.2.D and set forth in
EXHIBIT C.

     DEFAULT LOAN: A loan defined herein as a "Default Loan" pursuant to
Sections 3.4.A, 3.4.B and/or 6.5.F.

     DEPRECIATION: For each Allocation Year, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable with
respect to an asset for such

                                       -4-
<Page>

Allocation Year, except that if the Gross Asset Value of an asset differs from
its adjusted basis for federal income tax purposes at the beginning of such
Allocation Year, Depreciation shall be an amount which bears the same ratio to
such beginning Gross Asset Value as the federal income tax depreciation,
amortization, or other cost recovery deduction for such Allocation Year bears to
such beginning adjusted tax basis. If any asset shall have a zero adjusted basis
for federal income tax purposes, Depreciation shall be determined utilizing any
reasonable method selected by Cordish and the Manager.

     DEVELOPMENT PLAN: With respect to any Additional Property a plan prepared
by Cordish and submitted to Inland setting forth the overall plan for the
acquisition and development or redevelopment of an Additional Property,
including the following items, as applicable: purchase price for the Additional
Property, environmental studies, conceptual plans, leasing plan, a development
budget, material terms of anticipated project financing and such other material
information respecting the acquisition, development or redevelopment of such
Additional Property as determined by Cordish.

     80% OWNED AFFILIATE: With respect to any Person, an Affiliate of such
Person 80% or more of the capital stock (or its equivalent in the case of
Persons other than corporations) of which is owned beneficially by such Person
directly, or indirectly through one or more 80% Owned Affiliates, or by a Person
who, directly or indirectly, owns beneficially 80% or more of the equity
interest (or its equivalent in the case of Persons other than corporations) of
such Person; provided that, for purposes of determining the ownership of the
equity interests of any Person, DE MINIMIS amounts of stock held by directors,
nominees and similar Persons pursuant to statutory or regulatory requirements
shall not be taken into account.

     ESCROW AGREEMENT: means that certain Escrow Agreement executed concurrently
herewith, by and among Cordish, the Owner Entity, and Chicago Title Insurance
Company, as escrowee.

     EVENT OF BANKRUPTCY: With respect to any Member, if such Member (i) makes
an assignment for the benefit of creditors, (ii) files a voluntary petition in
bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has entered against it
an order for relief, in any bankruptcy or insolvency proceeding, (iv) files a
petition or answer seeking for itself any reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
statute, law or regulation, (v) files an answer or other pleading admitting or
failing to contest the material allegations of a petition filed against it in
any proceeding of this nature, (vi) seeks, consents to or acquiesces in the
appointment of a trustee, receiver or liquidator of the Member or of all or any
substantial part of its properties, or (vii) 120 days after the commencement of
any proceeding against the Member seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution or similar relief under any
statute, law or regulation, if the proceeding has not been dismissed, or if
within 90 days after the appointment without such Member's consent or
acquiescence of a trustee, receiver or liquidator of such Member or of all or
any substantial part of its properties, the appointment is not vacated or
stayed, or within 90 days after the expiration of any such stay, the appointment
is not vacated. With respect to a Member, the foregoing definition of "Event of
Bankruptcy" is intended to replace and shall supersede and replace the
definition of "Bankruptcy" set forth in Sections 18-101(1) and 18-304 of the LLC
Act.

                                       -5-
<Page>

     EXISTING PROPERTY: Towson Circle, Baltimore County, Maryland, as further
described on EXHIBIT A.

     FISCAL YEAR: Means (i) the period commencing on the date hereof and ending
on December 31, 2004, and (ii) any subsequent period commencing on January 1 and
ending on the earlier to occur of (A) the following December 31, or (B) the date
on which all Company Assets are distributed pursuant to Section 9.2 and the
Certificate has been cancelled pursuant to the Act.

     GROSS ASSET VALUE: With respect to any asset, the asset's adjusted basis
for federal income tax purposes, except as follows:

          (a)     The initial Gross Asset Value of any asset contributed by or
     credited to a Member to the Company shall be the gross fair market value of
     such asset, as determined by the Manager;

          (b)     The Gross Asset Values of all Company Assets shall be adjusted
     to equal their respective gross fair market values, as determined by the
     Manager, as of the following times: (i) the acquisition of an interest or
     an additional interest in the Company by any new or existing Member in
     exchange for more than a de minimis Capital Contribution; (ii) the
     distribution by the Company to a Member of more than a de minimis amount of
     property or money as consideration for an interest in the Company; (iii)
     the liquidation of the Company within the meaning of Treasury Regulations
     Section 1.704-l(b)(2)(ii)(g); and (iv) whenever otherwise permitted under
     Treasury Regulations Section 1.704-l(b)(2)(iv)(f); provided, however, that
     adjustments pursuant to clause (i) above shall be made only if the Manager
     determines that such adjustments are necessary or appropriate to reflect
     the relative economic interests of the Members;

          (c)     The Gross Asset Value of any Company Asset distributed to a
     Member shall be the gross fair market value of such asset on the date of
     distribution as determined in accordance with the provisions hereof;

          (d)     The Gross Asset Values of Company Assets shall be increased
     (or decreased) to reflect any adjustments to the adjusted basis of such
     assets pursuant to Code Section 734(b) or Code Section 743(b), but only to
     the extent that such adjustments are taken into account in determining
     Capital Accounts pursuant to Treasury Regulations Section
     1.704-l(b)(2)(iv)(m) and subparagraph (vi) of the definition of Profit and
     Losses; PROVIDED, HOWEVER, that Gross Asset Values shall not be adjusted
     pursuant to this paragraph (d) to the extent the Manager determines that an
     adjustment pursuant to paragraph (b) hereof is necessary or appropriate in
     connection with a transaction that would otherwise result in an adjustment
     pursuant to this paragraph (d); and

          (e)     If the Gross Asset Value of an asset has been determined or
     adjusted pursuant to paragraphs (a), (b), or (d), such Gross Asset Value
     shall thereafter be adjusted by the Depreciation taken into account with
     respect to such asset for purposes of computing Profits and Losses.

                                       -6-
<Page>

          (f)     The Members agree that, as of the date hereof, the Gross Asset
     Value of the Existing Property is $28.45 million.

     GROSS RECEIPTS: For any period and with respect to each Property, all cash
receipts and revenues of the Company and the associated Owner Entity or
Additional Property Owner Entity, as applicable, of any kind calculated on a
cash basis (other than distributions received by the Company from any of the
Owner Entity or Additional Property Owner Entity, as applicable), including,
without duplication (i) all Rents received by such Owner Entity or Additional
Property Owner Entity, as applicable, (ii) all payments received by such Owner
Entity or Additional Property Owner Entity, as applicable, from the operators of
any licensed facilities or concessions, (iii) all other forms of rent, revenue,
income, proceeds, royalties, profits and other benefits paid to such Owner
Entity or Additional Property Owner Entity, as applicable, from using, leasing,
licensing, processing, operating from or in, or otherwise enjoying all or any
portion of the Property (including, but not limited to, any amounts released to
the Company pursuant to the terms of the Escrow Agreement which are not
deposited in the Operations Reserve), (iv) all payments under business
interruption insurance policies or proceeds payable under any policy of
insurance covering loss of Rents, (v) any utility or other deposits returned to
such Owner Entity or Additional Property Owner Entity, as applicable, or other
refunds accruing to such Owner Entity or Additional Property Owner Entity, as
applicable, (vi) any interest earned on security deposits held by such Owner
Entity or Additional Property Owner Entity, as applicable, to the extent
retained by such Owner Entity or Additional Property Owner Entity, as
applicable, and interest earned on operating and other accounts of such Owner
Entity or Additional Property Owner Entity, as applicable, (vii) all amounts
received by such Owner Entity or Additional Property Owner Entity, as
applicable, from tenants at the Property in connection with the surrender of
such tenant's lease and (viii) all refunds, rebates and other recoveries of
items previously charged as Operating Expenses, but excluding, (a) Capital
Contributions to such Owner Entity or Additional Property Owner Entity, as
applicable, or the Company, (b) Net Proceeds of a Capital Transaction and Net
Proceeds of a Financing with respect to such Owner Entity or Additional Property
Owner Entity, as applicable, or the Company, (c) sums held by such Owner Entity
or Additional Property Owner Entity, as applicable, as security deposits under
leases for space at the Property unless and until applied to the satisfaction of
tenants' obligations under such leases (to the extent permitted under applicable
leases and law) and (d) non-cash charges accruing to the Company or such Owner
Entity or Additional Property Owner Entity, as applicable, in the nature of
depreciation and amortization of the Property.

     IMPOSITIONS: With respect to any Property, all taxes (including sales and
use taxes), assessments (including all assessments for public improvements or
benefits, whether or not commenced or completed prior to the date hereof),
water, sewer or other rents, rates and charges, excises, levies, license fees,
permit fees, inspection fees and other authorization fees and other charges, in
each case whether general or special, ordinary or extraordinary, of every
character (including all interest and penalties thereon), which at any time may
be assessed, levied, confirmed or imposed by any governmental or
quasi-governmental authority having jurisdiction over the Property on or in
respect of or be a lien upon (i) the Property or any estate or interest therein,
(ii) any occupancy, use or possession of, or activity conducted on, the
Property, or (iii) the Rents from the Property or the use or occupancy thereof.

                                       -7-
<Page>

     INDEMNIFICATION AGREEMENT: That certain Indemnification and Guaranty
Agreement, dated as of the date hereof, by and between David S. Cordish,
Cordish, Inland Western Retail Real Estate Trust, Inc. and Inland.

     INITIAL CAPITAL CONTRIBUTION: The Capital Contribution made by Inland as
set forth in Section 3.2.A.

     INLAND PREFERRED RETURN: A per annum rate equal to 18% per annum on
Inland's Adjusted Capital Balance as adjusted from time to time, provided,
however, that such rate shall be pro rated for each Fiscal Year of the Company
which is less than twelve (12) full months.

     LIQUIDITY ESCROW AGREEMENT: Means that certain Liquidity Amount Escrow
Agreement executed concurrently herewith, by and among Cordish, the Owner Entity
and Chicago Title Insurance Company, as escrowee.

     LLC INTEREST: As to any Member, all of the interest of that Member in the
Company including, without limitation, such Member's (i) right to a distributive
share of the Profits and Losses and cash flow of the Company, (ii) right to a
distributive share of Company Assets and (iii) right to participate in the
management of the business and affairs of the Company, as provided in this
Agreement.

     MANAGER. Means the Person in whom the management of the Company is vested
to the extent so provided in this Agreement. The Manager must be a Member of the
Company. The Manager is Inland.

     MEMBER: At any time, any Person admitted and remaining as a member of the
Company pursuant to the terms of this Agreement. As of the date of this
Agreement, the Members of the Company are Cordish and Inland.

     MEMBER NONRECOURSE DEBT: Has the meaning given to the term "partner
nonrecourse debt" set forth in Treasury Regulations Section 1.704-2(b)(4).

     MEMBER NONRECOURSE DEBT MINIMUM GAIN: An amount, with respect to each
Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if
such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined
in accordance with Treasury Regulations Section 1.704-2(i)(2) and (3).

     MEMBER NONRECOURSE DEDUCTIONS: Has the meaning given to the term "partner
nonrecourse deductions" set forth in Treasury Regulations Section 1.704-2(i)(2).
For any Allocation Year, the amount of Member Nonrecourse Deductions with
respect to a Member Nonrecourse Debt equals the excess, if any, of the net
increase, if any, in the amount of the Member Nonrecourse Debt Minimum Gain
attributable to such Member Nonrecourse Debt over the aggregate amount of any
distributions during such Allocation Year to the Member that bears the economic
risk of loss for such Member Nonrecourse Debt to the extent such distributions
are from proceeds of such Member Nonrecourse Debt and are allocable to an
increase in Member Nonrecourse Debt Minimum Gain, determined according to the
provisions of Treasury Regulations Section 1.704-2(i)(2).

                                       -8-
<Page>

     NET CASH FLOW: For any period, the excess of (a) Gross Receipts plus any
amount, as reasonably determined by the Manager, taken out of any general
reserve account (other than the Operations Reserve which is governed by Section
6.4 hereof) established by the Company or any Owner Entity or Additional
Property Owner Entity, over (b) Operating Expenses plus any amount, as
reasonably determined by the Manager, added during such period to any such
general reserve account (other than from the Operations Reserve).

     NET PROCEEDS OF A CAPITAL TRANSACTION: With respect to any Property,
Additional Property, Owner Entity or Additional Property Owner Entity, the net
cash proceeds from a Capital Transaction less any portion thereof used to (i)
establish reserves as reasonably determined by the Manager, (ii) repay any debts
or other obligations of the Company or the Owner Entity or Additional Property
Owner Entity, as applicable (including Cash Shortfall Loans and Development
Loans), or (iii) restore the Property following a casualty or condemnation. "Net
Proceeds of a Capital Transaction" shall INCLUDE all principal, interest and
other payments as and when received with respect to any note or other obligation
received by the Company, an Owner Entity or Additional Property Owner Entity, as
applicable in connection with a Capital Transaction.

     NET PROCEEDS OF A FINANCING: With respect to the Existing Property, the net
cash proceeds from an Approved Financing (or otherwise with the consent of the
Members) less any portion thereof used to (i) establish reserves as reasonably
determined by the Manager, or (ii) repay any debts or other obligations of the
Owner Entity (including Cash Shortfall Loans to the Owner Entity).

     NONRECOURSE DEDUCTIONS: Has the meaning set forth in Treasury Regulations
Section 1.704-2(b)(l). The amount of Nonrecourse Deductions for an Allocation
Year equals the excess, if any, of the net increase, if any, in the amount of
Company Minimum Gain during that Allocation Year, over the aggregate amount of
any distributions during that Allocation Year of proceeds of a Nonrecourse
Liability that are allocable to an increase in Company Minimum Gain, determined
according to the provisions of Treasury Regulations Section 1 .704-2(c).

     NONRECOURSE LIABILITY: Has the meaning set forth in Treasury Regulations
Section 1.704-2(b)(3).

     OPERATING EXPENSES: For any period and with respect to each Property, all
expenses incurred by the Company and/or the Owner Entity (or Additional Property
Owner Entity, as applicable) during such period, calculated on a cash basis,
including, without duplication (subject to the exclusions described below): (i)
current operating expenses and taxes incurred by an Owner Entity (or Additional
Property Owner Entity, as applicable) or the Company including (without
duplication) utility charges, costs of materials, normal repair and maintenance
costs, Impositions and other business taxes applicable to any Property (except
as excluded below), license fees, costs of complying with any encumbrance upon
any Property, premiums for insurance, fees of the Company's counsel, the
accounting fees, the costs of any audits and appraisals performed by the Company
and any other reasonable costs which are paid for by the Company, (ii) the
management fee and leasing commissions paid to a property manager by any Owner
Entity (or Additional Property Owner Entity, as applicable) pursuant to a
management agreement or leasing commission agreement, (iii) Capital Expenditures
incurred in accordance

                                       -9-
<Page>

with the provisions hereof or as mandated by law or necessitated by an emergency
for improvements to space at any Property leased to tenants, inducements granted
to such tenants and leasing expenses (including leasing commissions)
(notwithstanding the foregoing, Capital Expenditures and other costs and
expenses incurred in connection with the acquisition, development,
redevelopment, improvement, construction and/or leasing of the Additional
Properties, or any of them, including costs for improvements to space at any
Additional Property leased to tenants and inducements granted to such tenants
shall not constitute Operating Expenses), and (iv) payments of fees, interest
and scheduled amortization of principal on any financing affecting the Property
or the Company Assets, but excluding without duplication: (A) expenditures paid
or to be paid from insurance proceeds or condemnation awards available for
restoration of a Property; (B) any non-cash charges from depreciation or
amortization of property; (C) any expenses or costs incurred in connection with
a Capital Transaction that would not have been incurred but for such Capital
Transaction; and (D) any payments on Cash Shortfall Loans and Development Loans.

     OPERATIONS RESERVE: The reserve established and maintained by the Company
in accordance with Section 6.4 hereof.

     OWNER ENTITY: Towson Circle LLC, a Maryland limited liability company, as
identified on EXHIBIT A. The term "Owner Entity" shall also include any
borrowing entity formed and utilized by an Owner Entity in connection with an
Approved Financing as set forth on EXHIBIT B.

     OWNER ENTITY AGREEMENT: The Operating Agreement of the Owner Entity, as the
same may be amended or modified from time to time.

     PERCENTAGE INTEREST: As to any Member, the Percentage Interest of such
Member specified in Section 3.1.

     PERSON: Any individual, corporation, partnership, limited liability
company, association, trust or other entity or organization.

     PROFITS and LOSSES: For any Allocation Year, the taxable income or loss of
the Company for federal income tax purposes for such Allocation Year, as
determined by the Accountant after consultation with the Members, in accordance
with Code Section 703(a) (for this purpose, all items of income, gain, loss or
deduction required to be separately stated pursuant to Code Section 703(a)(l)
shall be included in taxable income or loss), with the following adjustments:

          (i)     Any income of the Company that is exempt from federal income
     tax and not otherwise taken into account in computing Profits or Losses
     hereunder shall be added to such taxable income or loss;

          (ii)    Any expenditures of the Company described in Code Section
     705(a)(2)(B), or treated as Code Section 705(a)(2)(B) expenditures pursuant
     to Treasury Regulations Section 1.704-1 (b)(2)(iv)(i) and not otherwise
     taken into account in computing Profits or Losses hereunder shall be
     subtracted from such taxable income or loss.

          (iii)   In the event the Gross Asset Value of any Company asset is
     adjusted pursuant to the provisions of this Agreement, the amount of such
     adjustment shall be

                                      -10-
<Page>

     taken into account as gain or loss from the disposition of such asset for
     purposes of computing Profits or Losses;

          (iv)    Gain or loss resulting from any disposition of property with
     respect to which gain or loss is recognized for federal income tax purposes
     shall be computed with reference to the Gross Asset Value of the property
     disposed of, notwithstanding that the adjusted tax basis of such property
     differs from its Gross Asset Value;

          (v)     In lieu of the depreciation, amortization and other cost
     recovery deductions taken into account in computing such taxable income or
     loss, there shall be taken into account Depreciation for such Allocation
     Year;

          (vi)    To the extent an adjustment to the adjusted tax basis of any
     Company asset pursuant to Code Section 734(b) is required pursuant to
     Treasury Regulations Section 1.704-1 (b)(2)(iv)(m)(4) to be taken into
     account in determining Capital Accounts as a result of a distribution other
     than in liquidation of a Member's LLC Interest, the amount of such
     adjustment shall be treated as an item of gain (if the adjustment increases
     the basis of the asset) or loss (if the adjustment decreases the basis of
     the asset) from the disposition of the asset and shall be taken into
     account for purposes of computing Profits and Losses; and

          (vii)   Notwithstanding any other provisions of the foregoing
     provisions of this definition, any items which are specially allocated to a
     Member hereunder shall not be taken into account in computing Profits or
     Losses.

The amount of the items of Company income, gain, loss or deduction available to
be specially allocated pursuant to Section 5.2 hereof shall be determined by
applying rules analogous to those set forth in subparagraphs (i) through (vi)
above.

     PROPERTY: In the singular, each of the Existing Property and Additional
Properties, and in the plural, any two or more of the Existing Property and/or
Additional Properties.

     RENTS: Collectively, all fixed, base, minimum, guaranteed, additional,
retroactive, percentage, participation or escalation rents, operating cost
pass-throughs, utility charges, common area maintenance or management charges,
administrative charges, parking, maintenance, tax and insurance contributions
payable under any lease for space at the Property, deficiency rents and
liquidated damages following default by any tenant at the Property, premiums
payable by any tenant at the Property upon the exercise of a cancellation
privilege originally provided in any lease for space at the Property, and any
rights and claims of any kind which the Company may have against any tenant at
the Property.

     REORGANIZATION AGREEMENT: means that certain Agreement to Reorganize and
Retire dated July _____, 2004 by and among the Company, the Owner Entity and the
Withdrawing Member.

     TAX MATTERS MEMBER. Has the meaning set forth in Section 7.5.

                                      -11-
<Page>

     TRANSFER: Any sale, assignment, gift, pledge, hypothecation or other
transfer, direct or indirect, by operation of law or otherwise, of a Member's
LLC Interest.

     TREASURY REGULATIONS: The Income Tax Regulations promulgated under the Code
as such regulations may be amended from time to time (including Temporary
Regulations).

     UNPAID CORDISH PREFERRED RETURN: As of any given date, the Cordish
Preferred Return accrued to such date less distributions made by the Company to
Cordish pursuant to the provisions of Sections 4.2(i), 4.3(i) and 4.4(iii)
hereof as of such date.

     UNPAID INLAND PREFERRED RETURN: As of any given date, the Inland Preferred
Return accrued to such date less distributions made by the Company to Inland
pursuant to the provisions of Sections 4.2(ii), 4.3(iii) and 4.4(i) hereof as of
such date.

     WITHDRAWING MEMBER: means Heritage Towson Circle LLC, a Maryland limited
liability company, whose interest in the Owner Entity is being purchased and
redeemed pursuant to the terms of the Reorganization Agreement and this
Agreement.

                                   ARTICLE II

               CONTINUATION; NAME; PRINCIPAL OFFICE; PURPOSE; TERM

     SECTION 2.1. CONTINUATION.

     A.   The Company has previously been reorganized as a limited liability
company pursuant to the provisions of the Delaware Limited Liability Company
Act, Title 6 of the Delaware Code, Section 18-101 et seq. (the "LLC ACT"). This
Agreement amends, restates and replaces the Original Agreement. To the extent
permitted by the LLC Act, the provisions of this Agreement shall override the
provisions of the LLC Act in the event of any inconsistency between them.

     B.   In order to maintain the Company as a limited liability company under
the laws of the State of Delaware, the Manager shall, from time to time, take
appropriate action, including the preparation and filing of such amendments to
the Certificate and such other assumed name certificates, documents, instruments
and publications as may be required by or desirable under law, including,
without limitation, action to reflect:

          (i)     any change in the Company name; or

          (ii)    any correction of false or erroneous statements in the
     Certificate or the desire of the Members to make a change in any statement
     therein in order that it shall accurately represent the agreement among the
     Members.

     C.   Each necessary Member shall further execute, and the Company shall
file and record (or cause to be filed and recorded) and shall publish, if
required by law, such other and further certificates, statements or other
instruments as may be necessary or desirable under the laws of the State of
Delaware or the state in which any Property is located in connection with the
formation of the Company and the commencement and carrying on of its business.

                                      -12-
<Page>

     SECTION 2.2. NAME, REGISTERED OFFICE, AND RESIDENT AGENT; PRINCIPAL PLACE
                  OF BUSINESS.

     A.   The name of the Company shall continue to be "Towson Circle Holding
LLC."

     B.   The principal place of business and office of the Company shall be
located at c/o Inland Western Retail Real Estate Trust, Inc., 2901 Butterfield
Road Oak Brook, Illinois 60523 or at such other places or within the county in
which the Property is located as the Manager may from time to time designate.
The Company may have such additional offices and places of business as may be
established at such other locations as may be determined from time to time by
the Manager.

     C.   The present address of the registered office of the Company in the
State of Delaware and its resident agent for service of process in the State of
Delaware are as set forth in the Certificate.

     SECTION 2.3. PURPOSE.

     A.   The purpose and business of the Company are solely to:

          (i)     Acquire all the ownership interests in and exercise all the
     rights of the sole member of the Owner Entity and the Additional Property
     Owner Entities;

          (ii)    Indirectly through the Owner Entity, to acquire, own, finance
     (using special purpose entities or otherwise), develop, redevelop, operate,
     lease, manage, control, sell, transfer, exchange or otherwise dispose of
     the Existing Property;

          (iii)   Subject to the further provisions hereof and indirectly
     through the Additional Property Owner Entities, to acquire, own, finance,
     develop, redevelop, operate, lease, manage, control, sell, transfer,
     exchange or otherwise dispose of Additional Properties; and

          (iv)    To do and perform all acts necessary or desirable to carry out
     any of the foregoing purposes.

     B.   The Company shall not own any direct interest in real property or any
other business venture, and shall not incur any debt, obligation or liability
with respect to such assets. Instead, the Company shall only invest in qualified
REIT real estate assets, which assets shall generate qualified REIT income and
be owned separately by each of the Owner Entity and Additional Property Owner
Entities, and any debts and liabilities shall be incurred only by such Entities.

     C.   Nothing in this Agreement shall be deemed to create a mutual agency
between the Members with respect to any activities of the Company or the Members
whatsoever. Except as expressly provided herein, no Member shall be deemed to be
the agent of any other Member for any purposes and no Member shall have any
authority to bind any other Member.

                                      -13-
<Page>

     D.   Without the unanimous approval of the Members, the Company, the Owner
Entity and the Additional Property Owner Entities shall not engage in any other
business or activity.

     E.   The Company intends that the Existing Property will be owned by the
Owner Entity and all Additional Properties will be owned by Additional Property
Owner Entities, through which the Company's business will be conducted. The
terms of the organizational documents relating to the formation of the Owner
Entity have been reviewed by the Members and are hereby approved by the Members,
and the terms of the organizational documents related to the formation of any
Additional Property Owner Entity, as applicable, will be approved by the Members
provided that such approval shall not be unreasonably withheld or delayed;
provided, however, that the organizational documents of the Owner Entity may be
amended by Inland if the amendments do not materially adversely affect Cordish;
and provided further, however, that subject to the provisions of Section 6.2.D
hereof, the organization documents of any Additional Property Owner Entity may
be amended by Cordish if the amendments do not adversely affect the Company or
Inland. Notwithstanding the foregoing, each Member hereby acknowledges and
agrees that simultaneously with the withdrawal of the Withdrawing Member as a
member of the Owner Entity, and effective simultaneously with the effective time
of this Agreement, Inland shall cause the organizational documents of the Owner
Entity to be amended and restated in their entirety to reflect the fact that the
Company shall be the sole member, and that Inland shall be appointed as the sole
manager, of the Owner Entity from and after the date hereof.

     SECTION 2.4. TERM.

     The Company shall have perpetual existence beginning on the date that the
Certificate was filed with the Office of the Secretary of State of the State of
Delaware; PROVIDED THAT the Company may be dissolved in accordance with Section
9.1 hereof.

     SECTION 2.5. CLASSIFICATION OF THE COMPANY FOR TAX PURPOSES.

     The Members hereby acknowledge their intention that the Company be
classified, for federal and state income tax purposes, as a partnership and not
as an association taxable as a corporation pursuant to Section 7701(a)(2) of the
Code and the Regulations promulgated thereunder, and hereby agree that the
provisions of this Agreement shall be applied and construed in a manner to give
full effect to such intent. Accordingly, each Member, by its execution or
acceptance of this Agreement, covenants and agrees that (i) it will not cause
the Company, the Owner Entity, or any Additional Property Owner Entity to make
an election under Regulations Section 301.7701-3(b) to be taxed as a corporation
for federal income tax purposes (ii) it will file its own federal and state
income tax returns in a manner that is consistent with tax classification of the
Company as a partnership and (iii) it will not take any action which is
inconsistent with such classification.

     SECTION 2.6. LIABILITY OF THE MEMBERS.

     No Member shall be liable under a judgment, decree or order of a court, or
in any other manner for the debts or any other obligations or liabilities of the
Company, an Owner Entity or an Additional Property Owner Entity solely by reason
of being a Member of the Company. A Member shall be liable only to make the
contributions described in Section 3.2, on the terms

                                      -14-
<Page>

therein described, and except as provided in Section 3.4 or 6.5.F, shall not be
required to lend any funds to the Company, any Owner Entity or Additional
Property Owner Entity, or to make any other contributions, assessments or
payments to the Company; provided that a Member may be required to repay
distributions made to it as provided in Section 18-607 of the LLC Act. No Member
shall have any personal liability for any repayment of any Capital Contribution
of any Member. The terms of this Section 2.6 shall not limit or diminish in any
way the obligations of the Members (and the other parties thereto) under this
Agreement, the Indemnification Agreement and the Contribution Agreement.

     SECTION 2.7. OWNERSHIP AND WAIVER OF PARTITION AND VALUATION.

     The LLC Interests of each Member in the Company shall be personal property
for all purposes. All property and interests in property, real or personal,
owned (directly or indirectly) by the Company shall be deemed owned (directly or
indirectly) by the Company as an entity, and no Member, individually, shall have
any ownership of or interest in such property or interest owned (directly or
indirectly) by the Company except as a member of the Company. To avoid
irreparable damage to the Company, each Member, on behalf of itself and its
successors, representatives, heirs, and assigns hereby irrevocably,
unconditionally and completely waives, renounces and releases each and all of
the following rights that it has or may have, if any, by virtue of holding LLC
Interests in the Company: (i) any right of partition or any right to take any
other action that otherwise might be available to such Member for the purpose of
severing its relationship with the Company or such Member's interest in the
assets held by the Company from the interest of the other Members; and (ii) any
right to valuation and payment with respect to such Member's LLC Interests or
any portion thereof, except to the extent specifically set forth herein.
Notwithstanding any provision herein to the contrary, each Member hereby
acknowledges and agrees that, pursuant to the provisions of Section 9.4.E(iii)
hereof, in the event that Cordish seeks, or attempts to seek, to take any action
in violation or inconsistent with the foregoing, Inland shall be permitted at
any time, in its sole and absolute discretion, to deliver a Redemption Notice to
Cordish and to thereupon immediately cause the Company to purchase the Cordish
LLC Interest pursuant to the terms of Sections 9.4, 9.5 and 9.6 hereof.

     SECTION 2.8. WAIVER OF RIGHT TO JUDICIAL DISSOLUTION.

     The Members agree that irreparable damage would be done to the good will
and reputation of the Company if any Member should bring an action in court to
dissolve the Company. Accordingly, to avoid irreparable damage to the Company
each Member hereby irrevocably, unconditionally and completely waives, renounces
and releases its right to seek a court decree of dissolution or to seek the
appointment by a court of a liquidator for the Company. Notwithstanding any
provision herein to the contrary, each Member hereby acknowledges and agrees
that, pursuant to the provisions of Section 9.4.E(iii) hereof, in the event that
Cordish seeks, or attempts to seek, to take any action in violation or
inconsistent with the foregoing, Inland shall be permitted at any time, in its
sole and absolute discretion, to deliver a Redemption Notice to Cordish and to
thereupon immediately cause the Company to purchase the Cordish LLC Interest
pursuant to the terms of Sections 9.4, 9.5 and 9.6 hereof.

                                      -15-
<Page>

                                   ARTICLE III

                 MEMBERS; COMPANY CAPITAL; PERCENTAGE INTERESTS

     SECTION 3.1. MEMBERS.

     A.   In accordance with the terms of the Contribution Agreement, Inland and
Cordish are hereby admitted as Members in the Company and the Original Members
are hereby withdrawn from the Company. The respective names, business addresses
and Percentage Interests of the Members are as set forth on SCHEDULE A and the
Members identified on SCHEDULE A are, as of this date, the only members in the
Company. SCHEDULE A shall be amended from time to time to reflect any changes of
address, the admission of any additional or substitute Members or any changes to
the information set forth thereon. The respective Percentage Interests of the
Members set forth on SCHEDULE A shall not change or otherwise be modified or
amended as a result of Capital Contributions made by the Members.

     B.   One or more Persons may be admitted to the Company as additional
Members from time to time only with the unanimous written consent of the
Members, provided, however, that the admission of transferees permitted pursuant
to Article VIII hereof shall not require the consent of the Manager or the
Members.

     C.   In addition to any other requirements set forth in this Agreement, no
Person shall be admitted to the Company as an additional or substitute Member
unless and until such Person has accepted and agreed to all the provisions of
this Agreement by executing a counterpart signature page hereto or an amendment
to this Agreement.

     SECTION 3.2. INITIAL CAPITAL CONTRIBUTIONS.

     A.   In accordance with the terms of the Contribution Agreement, upon the
execution of this Agreement, Inland has contributed to the Company cash in the
amount set forth next to its name on SCHEDULE A attached hereto and made a part
hereof (the "INITIAL CAPITAL CONTRIBUTION"). Inland's Initial Capital Account
balance shall be equal to Inland's Initial Capital Contribution set forth in the
preceding sentence. Inland's Capital Account balance shall be adjusted from time
to time to take into account any Additional Capital Contributions made by Inland
under Section 3.3.A hereof.

     B.   The Members hereby agree that, upon the admission of Inland as a
Member of the Company, Cordish's Capital Account shall be increased to equal the
amount set forth next to its name on SCHEDULE A, which reflects the agreed-upon
Gross Asset Value of the Existing Property as of the date hereof, reduced by (i)
the amount of the Existing Debt as of the date hereof, (ii) the amount required
to be contributed to the Owner Entity and then distributed to the Withdrawing
Member under Section 4.1.A hereof, (iii) the aggregate amount deposited in
escrow pursuant to Section 1 of the Escrow Agreement and Section 1 of the
Liquidity Escrow Agreement, and (iv) amounts not yet contributed to the Company
by Inland as of the date hereof pursuant to Section 1.4.1 of the Contribution
Agreement. Cordish's Capital Account (and Adjusted Capital Balance) shall be
increased from time to time, without duplication, as and when funds are (a)
released and deposited into the Operations Reserve pursuant to Sections 2.1 and
2.2 of the Escrow Agreement and Section 2 of the Liquidity Escrow Agreement, and
(b) deposited into the Operations Reserve

                                      -16-
<Page>

pursuant to the terms of Article I of the Contribution Agreement and Section
3.3.A of this Agreement.

     C.   The initial Adjusted Capital Balance of each Member shall be set forth
opposite such Member's name on SCHEDULE A attached hereto and shall be adjusted
from time to time in accordance with the terms of this Agreement.

     D.   The manner in which the Capital Contributions, Adjusted Capital
Balances, Capital Accounts, payments to the Withdrawing Member and the
Operations Reserve balance shall be determined and adjusted (under the terms and
conditions of this Section 3.2 and this Agreement) is illustrated on EXHIBIT E
attached hereto, which Exhibit is based on estimated figures and may not
therefore reflect the actual figures applied under the terms of this Agreement.

     SECTION 3.3. ADDITIONAL CAPITAL CONTRIBUTIONS.

     A.   In accordance with and subject to the terms of Section 1.4.1 of the
Contribution Agreement, Inland shall make additional Capital Contributions to
the Company from time to time, 50% of which shall be deposited directly in the
Operations Reserve and 50% of which shall be paid to the Withdrawing Member.

     B.   Other than the Capital Contributions of the Members required under
Section 3.2 and Section 3.3.A, and as otherwise provided in this Agreement, no
Member shall (i) be required or entitled to make any further Capital
Contributions or (ii) be required or entitled to lend any funds to the Company.

     C.   Except as provided in Section 3.3.A, no Member shall have any
obligation to make additional Capital Contributions to restore a deficit balance
in its Capital Account. Notwithstanding the foregoing, any Member may, by
delivery of written notice to the other Member delivered on or before December
31 of any year, but subject to the reasonable approval of the Manager,
voluntarily elect to incur an unconditional obligation to restore a deficit
balance in its Capital Account. Any such election, if made, shall be effective
only for such period indicated in the written notice, and may, in the sole and
absolute discretion of the electing Member but subject to the reasonable
approval of the Manager, be limited to a specified dollar amount and/or a
specific period of time. This Section 3.3.C and any election made hereunder
shall be interpreted and applied consistently with the provisions Treasury
Regulation Section 1.704-1(b)(2)(ii)(c)

     SECTION 3.4. FUNDING OF ADDITIONAL CASH REQUIREMENTS.

     A.   If the Company or the Owner Entity, other than an Additional Property
Owner Entity (which is addressed by Section 3.4.B), experiences a Cash Shortfall
(other than to the extent that the Company's Cash Shortfall is attributable
solely to an Additional Property Owner Entity, which is addressed in Section
3.4.B), the Manager shall have the right to provide written notice of such Cash
Shortfall to the Members (a "CASH SHORTFALL NOTICE"). Upon receipt of the Cash
Shortfall Notice, the Members may upon mutual consent elect to (a) make an
Additional Capital Contribution in proportion to their respective Percentage
Interests to cover the Cash Shortfall, or (b) make Cash Shortfall Loans to the
Owner Entity in the amount of the Cash

                                      -17-
<Page>

Shortfall and in proportion to the Member's respective Percentage Interests on
the terms provided in Section 3.4.C. If the Members do not agree to make such
Additional Capital Contributions or Cash Shortfall Loans, Inland shall promptly
make (or cause an Affiliate or other Person selected by it to make) a Cash
Shortfall Loan to the Owner Entity in the amount of the Cash Shortfall on the
terms provided in Section 3.4.C. If Inland does not promptly make or cause an
Affiliate or other Person selected by it to make a Cash Shortfall Loan pursuant
to this Section 3.4.A, Cordish shall have the right, but not the obligation, to
fund the amount of such loan (a "DEFAULT LOAN"), which shall constitute a loan
by Cordish to Inland, which shall be a recourse demand obligation of Inland and
which shall bear interest at the rate of 20% per annum, compounded monthly. All
distributions of Net Cash Flow or Net Proceeds of a Capital Transaction or
repayments by the Company of any Cash Shortfall Loans otherwise payable to
Inland shall be made instead to Cordish until all Default Loans (including
accrued and unpaid interest) made by Cordish have been repaid in full. For the
avoidance of doubt, any distributions or payments that would have otherwise been
distributed or paid to Inland but are paid to Cordish in accordance with any
Default Loan made pursuant to this Section 3.4A shall, for all other purposes of
this Agreement, be deemed to have been distributed or paid to Inland.

     B.   If any Additional Property Owner Entity experiences a Cash Shortfall,
or to the extent the Company experiences a Cash Shortfall attributable solely to
one or more Additional Property Owner Entities, either Member shall have the
right to provide written notice of such Cash Shortfall to the Members (a "CASH
SHORTFALL NOTICE"). Upon receipt of the Cash Shortfall Notice, the Members may
upon mutual consent elect to (a) make an Additional Capital Contribution in
proportion to their respective Percentage Interests to cover the Cash Shortfall,
or (b) make Cash Shortfall Loans to the Additional Property Owner Entity in the
amount of the Cash Shortfall and in proportion to the Member's respective
Percentage Interests on the terms provided in Section 3.4.C. If the Members do
not agree to make such Additional Capital Contributions or Cash Shortfall Loans,
Cordish shall promptly make (or cause an Affiliate or other Person selected by
it to make) a Cash Shortfall Loan to the Additional Property Owner Entity in the
amount of the Cash Shortfall on the terms provided in Section 3.4.C. If Cordish
does not promptly make or cause an Affiliate or other Person selected by it to
make a Cash Shortfall Loan pursuant to this Section 3.4.B, Inland shall have the
right, but not the obligation, to fund the amount of such loan (a "DEFAULT
LOAN"), which shall constitute a loan by Inland to Cordish, which shall be a
recourse demand obligation of Cordish and which shall bear interest at the rate
of 20% per annum, compounded monthly. All distributions of Net Cash Flow or Net
Proceeds of a Capital Transaction or repayment by the Company of any Cash
Shortfall Loans otherwise payable to Cordish shall be made instead to Inland
until all Default Loans (including accrued and unpaid interest) made by Inland
have been repaid in full. In addition, if all Default Loans made by Inland are
not repaid in full within six (6) months, Cordish shall have no management
and/or voting rights (including, but not limited to those provided in Section
6.1.D) with respect to any Existing Property or Owner Entity pursuant to the
provisions hereof until all Default Loans made by Inland have been repaid in
full. For the avoidance of doubt, any distributions or payments that would have
otherwise been distributed or paid to Cordish but are paid to Inland in
accordance with any Default Loan made pursuant to this Section 3.4.B shall, for
all other purposes of this Agreement, be deemed to have been distributed or paid
to Cordish.

     C.   Cash Shortfall Loans, if any, made pursuant to this Section 3.4 shall:
(i) be evidenced by a written promissory note containing customary terms and
conditions in a form

                                      -18-
<Page>

attached hereto as EXHIBIT D, (ii) bear interest at the rate of 12% per annum,
shall compound monthly and shall accrue until maturity and (iii) mature on the
earlier of the date that is five (5) years after the initial funding of such
loan or the occurrence of a Capital Transaction with respect to the Owner Entity
or Additional Property Owner Entity that is the obligor on such Cash Shortfall
Loan.

     D.   If, at any time or from time to time, the Company or the Owner Entity
requires additional funds, the Manager may cause the Owner Entity to borrow the
required additional funds from any Person or Persons, provided that such
borrowing is an Approved Financing.

     E.   The Members hereby covenant and agree to structure any Cash Shortfall
Loans made pursuant to the terms of this Agreement so that such loans satisfy
the "Straight Debt Safe Harbor" under Code Section 856(c)(7) and the Treasury
Regulations promulgated thereunder.

     SECTION 3.5. LOANS.

     A.   The Members intend that the Company will not own any real estate
directly, but will only own interests in the Owner Entities and Additional
Property Owner Entities. Accordingly, unless all Members agree, the Manager
shall not incur any loans or borrowings on behalf of the Company.

     B.   If any Member shall lend any money to any Owner Entity or Additional
Property Owner Entity, the amount of any such loan shall not be considered a
Capital Contribution to the Company, increase its Capital Account or affect in
any way its share of the Profits, Losses, other items of income, gain, loss or
deduction or distributions of the Company but shall be a debt due from the Owner
Entity or the Additional Property Owner Entity, as applicable.

     C.   The proceeds of Cash Shortfall Loans, Default Loans and Development
Loans made pursuant to the provisions of this Agreement and the proceeds of any
financing obtained by Cordish pursuant to Section 6.2.B(i) with respect to any
Additional Property will only be advanced as and to the extent that costs and
expenses to be funded pursuant to the provisions hereof by such Cash Shortfall
Loans, Default Loans, Development Loans and/or such other financing are actually
incurred.

     SECTION 3.6. NO THIRD PARTY BENEFICIARIES.

     The obligations of Inland or Cordish to fund Cash Shortfall Loans hereunder
shall not confer upon any creditor or other third party having dealings with the
Company or any Owner Entity any right, claim or other benefit, including the
right to require any such Cash Shortfall Loans.

     SECTION 3.7. CAPITAL ACCOUNTS.

     A.   The Company shall establish and maintain a separate Capital Account
for each Member in accordance with the provisions of this Section 3.7. To each
Member's Capital Account there shall be credited such Member's Capital
Contributions, such Member's allocable share of Profits, and any items in the
nature of income or gain that are specially allocated to such Member under this
Agreement.

                                      -19-
<Page>

     B.   To each Member's Capital Account there shall be debited the amount of
cash and the Gross Asset Value of any Company property distributed to such
Member pursuant to any provision of this Agreement (net of liabilities secured
by such distributed property that such Member is considered to assume or take
subject to under Code Section 752), such Member's allocable share of Losses, and
any items in the nature of expenses or losses that are specially allocated to
such Member under this Agreement.

     C.   In the event any interest in the Company is transferred in accordance
with the terms of this Agreement (i.e., Article VIII hereof), the transferee
shall succeed to the Capital Account of the transferor to the extent it relates
to the transferred interest. In the case of a sale or exchange of an interest in
the Company at a time when an election under Code Section 754 is in effect, the
Capital Account of the transferee Member shall not be adjusted to reflect the
adjustments to the adjusted tax bases of Company property required under Code
Sections 754 and 743, except as otherwise permitted by Treasury Regulations
Section 1.704-l(b)(2)(iv)(m).

     D.   In determining the amount of any liability for purposes of
Section 3.7.B above, there shall be taken into account Code Section 752(c) and
the Treasury Regulations promulgated thereunder, and any other applicable
provisions of the Code and Regulations.

     E.   The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with
Treasury Regulations Section 1.704-l(b) and 1.704-2, and shall be interpreted
and applied in a manner consistent with such Regulations.

     SECTION 3.8. RETURN OF CAPITAL.

     Except as provided in Article IX or as otherwise agreed by the Members, no
Member shall have the right to withdraw or receive any return of its Capital
Contributions. Except as provided in Article IX or as otherwise agreed by the
Members, no Member shall have any right to demand or receive property (other
than cash) in return of its Capital Contributions.

                                   ARTICLE IV

  DISTRIBUTIONS; PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT OF EXISTING DEBT

     SECTION 4.1. PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT OF EXISTING DEBT.

     A.   In accordance with the terms of the Reorganization Agreement,
immediately after the execution and delivery of this Agreement and the closing
under the Contribution Agreement, the Company shall contribute sufficient cash
(the "CASH PAYMENT") to the Owner Entity in the amount of $5,637,181 and the
Company shall cause the Owner Entity to purchase and redeem in full the interest
of the Withdrawing Member in the Owner Entity in exchange for cash payments to
be made to the Withdrawing Member under the terms of the Reorganization
Agreement. The Members hereby acknowledge and agree that this contribution of
cash to the Owner Entity and the distribution of cash to the Withdrawing Member
will result in the Owner Entity becoming a disregarded entity for federal and
state income tax purposes and will be treated for federal and

                                      -20-
<Page>

state income tax purposes as a purchase by the Company of a 50.0% undivided
interest in the assets of the Owner Entity for a purchase price equal to the
Cash Payment plus the Withdrawing Member's share of indebtedness in the Owner
Entity (which, in addition to the portion of the assets of the Owner Entity held
indirectly by the Company, will result in the Company directly holding 100% of
the assets of the Owner Entity for federal and state income tax purposes). The
Members acknowledge and agree that the Company shall not be deemed to have
purchased any other interest in the Existing Property or the Owner Entity for
federal and state income tax purposes. The Company shall reflect the purchase
price for such assets in the Company's tax basis of the assets held by the Owner
Entity in a manner, and based upon the allocation, determined by the Manager.
The Tax Matters Member shall be bound by the treatment of such transactions by
the Manager. The Members also recognize and agree that additional payments may
be made to the Withdrawing Member pursuant to Sections 2.1 and 2.2 of the Escrow
Agreement, Section 2 of the Liquidity Escrow Agreement, and Article I of the
Contribution Agreement, which shall, when made, increase the purchase price for
the assets purchased by the Cash Payment.

     B.   Immediately after the execution and delivery of this Agreement and the
Closing under the Contribution Agreement, the Company shall cause the Owner
Entity to repay and satisfy in full the Existing Debt (as such term is defined
in the Contribution Agreement). The repayment of the Existing Debt and the other
payments and distributions described in this Section 4.1 shall be made in the
manner and to the extent set forth in this Section 4.1, notwithstanding any
other provision contained in this Article IV. No repayment of the Existing Debt
pursuant to this Section 4.1.B shall reduce Cordish's Adjusted Capital Balance
or Capital Account. Each party hereto hereby acknowledges and agrees that it is
the intention of the Manager to cause the Owner Entity, simultaneously with the
execution of this Agreement, to borrow funds from an unrelated third party
lender (which transaction shall constitute an Approved Financing under the terms
of EXHIBIT B attached hereto). Notwithstanding any inference herein to the
contrary, the repayment of the Existing Debt, the Cash Payment and the other
payments and distributions described in this Section 4.1 shall be funded, in
whole or in part, in the Manager's sole and absolute discretion, from the
proceeds of such third party loan to the Owner Entity.

     C.   Upon the Closing of the Contribution Agreement, the Company shall
utilize a portion of Inland's Initial Capital Contribution to pay certain
expenses of Closing, as agreed to by Inland and Cordish, which amount shall
reduce the contributions into the Operations Reserve.

     SECTION 4.2. DISTRIBUTIONS OF NET CASH FLOW.

     Subject to the provisions of Section 6.4 hereof and prior to the
dissolution and termination of the Company, and subject to Section 18-607 of the
LLC Act, Net Cash Flow of the Company for any Fiscal Year shall be distributed
monthly (if and to the extent available) by the Company in the following order
of priority:

          (i)     FIRST, to Cordish, until such time as the Unpaid Cordish
     Preferred Return has been reduced to zero.

                                      -21-
<Page>

          (ii)    SECOND, in the sole and absolute discretion of the Manager, to
     Inland, until such time as the Unpaid Inland Preferred Return has been
     reduced to zero.

          (iii)   THIRD, in the sole and absolute discretion of the Manager, the
     balance, to the Members, in proportion to their respective Percentage
     Interests in the Company.

     SECTION 4.3. Net PROCEEDS OF A CAPITAL TRANSACTION.

     Subject to the provisions of Section 6.4 hereof and prior to the
dissolution and termination of the Company, Net Proceeds of a Capital
Transaction may be distributed by the Company from time to time in the sole and
absolute discretion of the Manager in the following order of priority:

          (i)     FIRST, to Cordish, until such time as the Unpaid Cordish
     Preferred Return has been reduced to zero.

          (ii)    SECOND, to Cordish, until such time as the Adjusted Capital
     Balance of Cordish has been reduced to zero.

          (iii)   THIRD, to Inland, until such time as the Unpaid Inland
     Preferred Return has been reduced to zero.

          (iv)    FOURTH, to Inland, until such time as the Adjusted Capital
     Balance of Inland has been reduced to zero.

          (v)     FIFTH, the balance, to the Members in proportion to their
     respective Percentage Interests in the Company.

     SECTION 4.4  NET PROCEEDS OF A FINANCING.

     Subject to the provisions of Section 6.4 hereof, the Net Proceeds of a
Financing may be distributed by the Company from time to time in the sole and
absolute discretion of the Manager:

          (i)     FIRST, to Inland, until such time as the Unpaid Inland
     Preferred Return has been reduced to zero

          (ii)    SECOND, to Inland, until such time as the Adjusted Capital
     Balance of Inland has been reduced to zero.

          (iii)   THIRD, to Cordish, until such time as the Unpaid Cordish
     Preferred Return has been reduced to zero.

          (iv)    FOURTH, to Cordish, until such time as the Adjusted Capital
     Balance of Cordish has been reduced to zero.

          (v)     FIFTH, the balance, to the Members in proportion to their
     respective Percentage Interests in the Company.

                                      -22-
<Page>

     SECTION 4.5. OTHER DISTRIBUTION RULES.

     A.   For purposes of Sections 4.2, 4.3 and 4.4:

          (i)     Distributions of Net Cash Flow of the Company for any calendar
     month will be considered distributed before the Net Proceeds of a Capital
     Transaction and Net Proceeds of a Financing occurring during the same
     calendar month.

          (ii)    Whenever possible, Net Cash Flow of the Company for any
     calendar month will be distributed before the Net Proceeds of a Capital
     Transaction and Net Proceeds of a Financing are distributed if the Net
     Proceeds of a Capital Transaction arise from a Capital Transaction or the
     Net Proceeds of a Financing arise from an Approved Financing that occurred
     within such calendar month or within the first ten (10) days of the
     immediately following calendar month.

          (iii)   The Manager shall adopt other reasonable ordering conventions
     as may be necessary to prevent any duplication of amounts that are
     distributable under both of such Sections.

     B.   Subject to the provisions of Section 3.4 and Section 6.5.F relating to
Default Loans, distributions in respect of an LLC Interest shall be made only to
the Person or Persons that, according to the Company's books and records, are
the holders of record of the LLC Interests in respect of which such
distributions are made on the actual date of distribution. Neither the Company
nor the Manager shall incur any liability for making distributions in accordance
with the provisions of the preceding sentence, whether or not the Company or the
Manager has knowledge or notice of any Transfer or purported Transfer of
ownership of any LLC Interest. Except with respect to Default Loans, the Manager
shall have no right or authority to set off any debts or obligations of Cordish
against any distributions due to Cordish hereunder, including distributions
under Section 9.6 hereof.

     SECTION 4.6. WITHHOLDING.

     A.   The Members hereby authorize the Company to withhold from or pay on
behalf of or with respect to such Member any amount of federal, state, local, or
foreign taxes that the Manager reasonably determines that the Company is
required to withhold or pay with respect to any amount distributable or
allocable to the Members pursuant to this Agreement, including any taxes
required to be withheld or paid by the Company pursuant to Section 1441, 1442,
1445 or 1446 of the Code. The Manager shall give prompt notice to the Members
with respect to which withholding is effected in accordance with this Section
4.6.A and shall provide such Member with a written explanation of the basis for
its determination so to withhold or pay (a "WITHHOLDING NOTICE"). Any amount
paid on behalf of or with respect to a Member pursuant to the provisions hereof
shall constitute a loan by the Company to such Member, which loan shall be
repaid by such Member within 15 days after notice from the Manager that such
payment must be made, unless the Company withheld such payment from a
distribution which would otherwise be made to such Member in accordance with the
provision hereof. Any amounts so withheld shall be treated as having been
distributed to such Member and shall be promptly paid, solely out of funds from
the Company, by the Manager to the appropriate taxing authority. In the event

                                      -23-
<Page>

that a Member fails to pay any amounts owed to the Company pursuant to this
Section 4.6.A when due, the Manager may, in its sole and absolute discretion,
elect to make the payment to the Company on behalf of such defaulting Member,
and in such event shall be deemed to have loaned such amount to such defaulting
Member, which shall be treated in the same manner as a Default Loan made to such
defaulting Member. For the avoidance of doubt, any distributions which would
have otherwise been distributed to a Member, but are retained by the Company in
accordance with this Section 4.6. A, shall, for all other purposes of this
Agreement, be deemed to have been distributed to such Member.

     B.   If any Member determines that the Manager has improperly caused the
Company to withhold or to advance funds with respect to such Member in
accordance with the foregoing, then such Member shall provide written notice of
its objection to such withholding or advance to the Manager, (an "OBJECTION
NOTICE") within thirty (30) days after its receipt of the Withholding Notice,
stating its rationale for such objection. If the objecting Member and the
Manager do not reach an agreement on the contested matter within thirty (30)
days following the delivery by the objecting Member of the Objection Notice,
then the Manager shall not have the right to exercise any rights pursuant to
Section 4.6.A and the matter shall be submitted promptly by either party to
binding arbitration pursuant to Section 10.16 of this Agreement. After such
arbitration proceeding has been completed, the Manager shall then have the right
to exercise its rights pursuant to Section 4.6.A hereof only in compliance with
the determination of the arbitration proceeding. Failure of a Member to deliver
an Objection Notice within thirty (30) days after its receipt of a Withholding
Notice shall be deemed to constitute the recipient Member's acceptance of and
agreement to the withholding and/or payment and the Manager shall be entitled to
proceed pursuant to the provisions of this Section 4.6.

     C.   If the Manager improperly proceeds pursuant to this Section 4.6, then
the Company shall be required to pay to the objecting Member the amount of any
distributions that would otherwise have been made to the objecting Member in
accordance with the provisions of this Agreement but for the Manager's
improperly proceeding pursuant to Section 4.6, together with all out-of-pocket
expenses properly and reasonably attributable to the dispute referenced in
Section 4.6.B hereof, and the Company shall be required to pay interest at the
rate of twenty percent (20%) on all such amounts to the objecting Member.

                                    ARTICLE V

                        ALLOCATION OF PROFITS AND LOSSES

     SECTION 5.1. PROFITS AND LOSSES.

     A.   PROFITS.     After giving effect to the allocations under Section 5.2
hereof, Profits for any Allocation Year shall be allocated to the Members in the
following order of priority:

          (i)     Profits other than from a Capital Transaction (and except as
     otherwise provided under Section 5.1 .A(iii) hereof):

                  (a)  FIRST, to Cordish, in the amount necessary to cause the
          aggregate amount of Profits allocated to Cordish under this
          Section 5.1.A(i)(a) from the

                                      -24-
<Page>

          current Fiscal Year and all prior Fiscal Years to equal the actual
          amounts distributed to Cordish pursuant to Section 4.2(i) for the
          current Fiscal Year and all prior Fiscal Years; and

                  (b)  SECOND, to Inland, in the amount necessary to cause the
          aggregate amount of Profits allocated to Inland under this Section
          5.1.A(i)(b) from the current Fiscal Year and all prior Fiscal Years to
          equal the amounts distributable to Inland pursuant to Section 4.2(ii)
          for the current Fiscal Year and all prior Fiscal Years; and

                  (c)  THIRD, the balance, to the Members, in proportion to
          their respective Percentage Interests in the Company.

          (ii)    Profits from a Capital Transaction (except as otherwise
     provided under Section 5.1.A(iii) hereof):

                  (a)  FIRST, to each Member in an amount equal to the amount
          necessary to increase each such Member's Capital Account to the amount
          distributable to such Member pursuant to Section 4.3 hereof; and

                  (b)  SECOND, the balance, to the Members, in proportion to
          their respective Percentage Interests in the Company.

          (iii)   Profits arising from any Capital Transaction (including a
     hypothetical sale in connection with an in-kind distribution upon
     liquidation of the Company) occurring upon or resulting in the liquidation
     (within the meaning of Treasury Regulations Section 1.704-l(b)(2)(ii)(g))
     of the Company:

                  (a)  FIRST, to Cordish, until the Capital Account balance of
          Cordish equals the sum of (1) the Unpaid Cordish Preferred Return plus
          (2) the Adjusted Capital Balance of Cordish;

                  (b)  SECOND, to Inland, until the Capital Account balance of
          Inland equals the sum of (1) the Unpaid Inland Preferred Return plus
          (2) the Adjusted Capital Balance of Inland; and

                  (c)  THIRD, the balance, to the Members, in proportion to
          their respective Percentage Interests in the Company.

     B.   LOSSES. After giving effect to the allocations under Section 5.2
hereof, Loss for any Allocation Year shall be allocated to the Members in the
following order of priority:

          (i)     Losses other than as provided in Section 5.1.B(ii) hereof:

                  (a)  FIRST, to Inland, to the extent of Losses attributable to
          the Existing Property, but in an amount without causing Inland to have
          an Adjusted Capital Account Deficit;

                                      -25-
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                  (b)  SECOND, to Cordish, to the extent of Losses attributable
          to all Additional Properties, but in an amount without causing Cordish
          to have an Adjusted Capital Account Deficit;

                  (c)  THIRD, to the Members, pro rata in accordance with their
          Capital Account balances, the maximum that can be allocated without
          causing a Member to have an Adjusted Capital Account Deficit; and

                  (d)  FOURTH, the balance, to the Members, in proportion to
          their respective Percentage Interests in the Company.

          (ii)    Losses arising from any Capital Transaction (including a
     hypothetical sale in connection with an in-kind distribution upon
     liquidation of the Company) occurring upon or resulting in the liquidation
     (within the meaning of Treasury Regulations Section 1.704-l(b)(2)(ii)(g))
     of the Company:

                  (a)  FIRST, to Cordish, until the Capital Account balance of
          Cordish equals the sum of (1) the Unpaid Cordish Preferred Return plus
          (2) the Adjusted Capital Balance of Cordish;

                  (b)  SECOND, to Inland, the maximum amount that can be
          allocated without causing Inland to have an Adjusted Capital Account
          Deficit;

                  (c)  THIRD, to Cordish, in the maximum amount that can be
          allocated without causing Cordish to have an Adjusted Capital Account
          Deficit; and

                  (d)  FOURTH, the balance, to the Members, in proportion to
          their respective Percentage Interests in the Company.

     SECTION 5.2. REGULATORY AND SPECIAL ALLOCATIONS.

     A.   Notwithstanding any other provisions of this Article V, the special
allocations provisions set forth on SCHEDULE 5.2, which are hereby incorporated
into this Section 5.2.A by this reference as if set forth in their entirety,
shall apply prior to any other allocations of Profits and Losses (and any items
of income, gain, loss or deduction).

     SECTION 5.3. OTHER ALLOCATION RULES.

     A.   For purposes of determining the Profits, Losses, or any other items
allocable to any period, Profits, Losses, and any such other items shall be
determined on a daily, monthly, or other basis, as reasonably determined by the
Manager using any permissible method under Code Section 706 and the Treasury
Regulations thereunder.

     B.   Except as otherwise provided in this Agreement, all items of Company
income, gain, loss, deduction, and any other allocations not otherwise provided
for shall be divided among the Members for tax purposes in the same proportions
as they share Profits or Losses, as the case may be, for the Allocation Year.

                                      -26-
<Page>

     C.   The Members are aware of the income tax consequences of the
allocations made by this Article V and hereby agree to be bound by the
provisions of this Article V in reporting their shares of Company income and
loss for income tax purposes.

     D.   The Members agree that the nonrecourse liabilities of the Company
shall be allocated to the Members in proportion to their Percentage Interests in
the Company.

     E.   Profits, Losses and any other items of income, gain, loss or deduction
shall be allocated to the Members pursuant to this Article V as of the last day
of each Fiscal Year, provided that Profits, Losses and such other items shall
also be allocated at such times as the Gross Asset Values of Company Assets are
adjusted pursuant to subparagraph (b) of the definition of "Gross Asset Value"
in Article I.

     SECTION 5.4. TAX ALLOCATIONS: CODE SECTION 704(c).

     A.   In accordance with Code Section 704(c) and the Treasury Regulations
thereunder, income, gain, loss, and deduction with respect to the Existing
Property, and any other property contributed to the capital of the Company
shall, solely for tax purposes, be allocated among the Members so as to take
account of any variation between the adjusted basis of such property to the
Company for federal income tax purposes and its initial Gross Asset Value. The
Members hereby irrevocably agree that the Company shall elect to use the
"traditional method" as described in Treasury Regulations Section 1.704-3(d)
with respect to allocations relating to the Existing Property (the "TRADITIONAL
METHOD").

     B.   In the event the Gross Asset Value of any Company property is adjusted
pursuant to paragraph (b) of the definition of Gross Asset Value, subsequent
allocations of income, gain, loss, and deduction with respect to such asset
shall take account of any variation between the adjusted basis of such asset for
federal income tax purposes and its Gross Asset Value in the same manner as
under Code Section 704(c) and the Treasury Regulations thereunder, based on the
Traditional Method.

     C.   Any elections or other decisions relating to such allocations shall be
made by the Manager, in any manner that reasonably reflects the purpose and
intention of this Agreement.

                                   ARTICLE VI

                    GOVERNANCE AND ADMINISTRATIVE PROVISIONS

     SECTION 6.1. MANAGEMENT OF BUSINESS AND AFFAIRS.

     A.   Except as otherwise expressly provided in this Agreement, the business
and affairs of the Company (including the business and affairs of the Company
with respect to the Owner Entity and each Additional Property Owner Entity)
shall be exclusively and solely vested in the Manager. Except as otherwise
expressly provided in this Agreement, no Member, other than the Manager, shall
be an agent of the Company or have any authority to bind or take action on
behalf of the Company.

                                      -27-
<Page>

     B.   The Members hereby designate and appoint Inland to serve as the
Manager of the Company and the Members hereby cause the Company to designate and
appoint Inland to serve as the Manager of the Owner Entity. Subject to the
approval of the Members for Major Decisions (and other limitations set forth in
this Agreement), as well as the delegation of certain obligations and
responsibilities by the Manager pursuant to this Agreement, the management of
the Existing Property and the Additional Properties shall rest with and remain
the sole and absolute right, and responsibility of the Manager. Cordish agrees
to cooperate with Inland by executing any consents or certificates of the
Company necessary to demonstrate to a lender, tenant or other service provider
to the Owner Entity that Inland has the power and authority set forth in this
Section 6.1. Without limiting the generality of the foregoing, but subject to
the express provisions of this Agreement to the contrary, including, but not
limited to, Section 6.2, the Manager shall have the full power and authority to
do all things deemed necessary or desirable by it in its sole and absolute
discretion to conduct the business of the Company and to effectuate the purposes
set forth in Section 2.3 hereof, including, without limitation:

          (i)     the making of any expenditures, the lending or borrowing of
     money, the assumption or guarantee of, or other contracting for,
     indebtedness and other liabilities, the issuance of evidences of
     indebtedness (including securing of same by deed to secure debt, mortgage,
     deed of trust or other lien or encumbrance of the Company's assets) and
     incurring of any obligations that it deems necessary for the conduct of the
     activities of the Company;

          (ii)    the acquisition, sale, transfer, exchange or other disposition
     of any assets of the Company (including, but not limited to, the exercise
     or grant of any conversion, option, privilege, or subscription right or any
     other right available in connection with any assets at any time held by the
     Company);

          (iii)   the mortgage, pledge, encumbrance or hypothecation of any
     assets of the Company (including, without limitation, the Existing
     Property), the use of the assets of the Company (including, without
     limitation, cash on hand) for any purpose consistent with the terms of this
     Agreement which the Manager believes will directly benefit the Company and
     on any terms that the Manager sees fit, the lending of funds to other
     Persons and the repayment of obligations of the Company;

          (iv)    the management, operation, leasing (including the amendment
     and/or termination of any lease), landscaping, repair, alteration,
     demolition, replacement or improvement of any Property;

          (v)     the negotiation, execution and performance of any contracts,
     leases, conveyances or other instruments that the Manager considers useful
     or necessary to the conduct of the Company's operations or the
     implementation of the Manager's powers under this Agreement, including
     contracting with property managers, contractors, developers, consultants,
     accountants, legal counsel, other professional advisors and other agents
     (including Affiliates of Inland) and the payment of their expenses and
     compensation out of the Company's assets;

                                      -28-
<Page>

          (vi)    the distribution of Company cash and other Company assets in
     accordance with this Agreement and the holding, management, investment, and
     reinvestment of cash and other assets of the Company;

          (vii)   the selection and dismissal of employees of the Company
     (including, without limitation, employees having the title or holding the
     office of "president," "vice president," "secretary" or "treasurer"), and
     agents, outside attorneys, accountants, consultants and contractors of the
     Company and the determination of their compensation and other terms of
     employment or hiring;

          (viii)  the maintenance of such insurance for the benefit of the
     Company and the Members as it deems necessary or appropriate including
     casualty, liability and other insurance on the Properties of the Company,
     which insurance may be obtained by a blanket insurance policy obtained by
     an Affiliate of Inland;

          (ix)    the control of any matters affecting the rights and
     obligations of the Company, including the settlement, compromise,
     submission to arbitration or any other form of dispute resolution, or
     abandonment of any claim, cause of action, liability, debt or damages due
     or owing to or from the Company, the commencement or defense of suits,
     legal proceedings, administrative proceedings, arbitrations or other forms
     of dispute resolutions, and the representation of the Company in all suits
     or legal proceedings, administrative proceedings, arbitrations or other
     forms of dispute resolutions, the incurring of legal expenses and the
     indemnification of any Person against liabilities and contingencies to the
     extent permitted by law;

          (x)     holding, managing, investing and reinvesting cash and other
     assets of the Company;

          (xi)    the collection and receipt of rents, revenues and income of
     the Company;

          (xii)   in addition to working capital and/or reserves required to be
     maintained under this Agreement, the maintenance of working capital and
     other reserves in such amounts as the Manager deems appropriate and
     reasonable from time to time;

          (xiii)  the making, execution and delivery of any and all deeds,
     leases, notes, deeds to secure debt, mortgages, deeds of trust, security
     agreements, conveyances, contracts, guarantees, warranties, indemnities,
     waivers, releases or legal instruments or agreements in writing necessary
     or appropriate in the judgment of the Manager for the accomplishment of any
     of the powers of the Manager enumerated in this Agreement;

          (xiv)   causing the Owner Entity or any of the Additional Property
     Owner Entities to take any of the foregoing actions or the undertaking of
     any of the foregoing actions in connection with or with respect to the
     Owner Entity or any of the Additional Property Owner Entities (including
     without limitation, contributing or loaning Company funds to, incurring
     indebtedness on behalf of, or guaranteeing the obligations of the Owner
     Entity or any Additional Property Owner Entity); or

                                      -29-
<Page>

          (xv)    causing the Owner Entity to make any decision or take any
     action under the provisions of the Escrow Agreement and the Liquidity
     Escrow Agreement, in its sole and absolute discretion.

     C.   The Manager shall keep the Members informed as to all matters of
concern to the Company and the Members. In addition to and without limiting the
duties and obligations of the Manager as set forth above, but subject to the
provisions of Sections 6.2 and 6.6, the Manager shall use commercially
reasonable efforts to:

          (i)     cause the Company and each Owner Entity and Additional
     Property Owner Entity, directly or through its agents, at all times to
     perform and comply with the provisions of any loan commitment, agreement,
     mortgage, deed of trust, lease, construction contract or other contract,
     instrument or agreement to which the Company or any Owner Entity or
     Additional Property Owner Entity is a party or which affects the Property
     or the operation thereof;

          (ii)    keep and maintain at least such insurance coverage as may be
     required by the holder of any mortgage or deed of trust encumbering all or
     any portion of any Property;

          (iii)   deliver to the Members promptly upon the receipt or sending
     thereof copies of all notices, reports and communications (a) between the
     Company or any Owner Entity or Additional Property Owner Entity and any
     holder of a mortgage or deed of trust affecting all or any portion of the
     Property which relate to any existing or pending default thereunder or to
     any financial or operational information required by such holder and (b)
     regarding material violations affecting the Property;

          (iv)    open and maintain bank accounts for funds of the Company and
     each Owner Entity;

          (v)     employ contractors for the ordinary maintenance and repair of
     the Property, including installation of tenant improvements as required by
     leases on the Property;

          (vi)    retain or engage real estate brokers licensed to do business
     in the states in which the Property, or any part thereof, is located;

          (vii)   use reasonable efforts to enter into leases of space and other
     occupancy agreements on market terms and conditions, and in accordance with
     the requirements of any applicable loan;

          (viii)  employ such managing or other agents necessary for the
     operation, management and leasing of each Property including, without
     limitation, a property manager (which may be an Affiliate of Inland or of
     Cordish);

          (ix)    retain or engage attorneys and accountants, to the extent such
     professional services are required during the term of the Company; and

                                      -30-
<Page>

          (x)     do any act which is necessary or desirable to carry out any of
     the foregoing.

     D.   Notwithstanding the provisions of Section 6.1.B and 6.1.C, except as
may otherwise be provided in Sections 6.2 or 6.6 or elsewhere in this Agreement,
neither the Manager nor any other Member shall have any authority, in the name
of or on behalf of the Company or any Owner Entity or Additional Property Owner
Entity, to take any of the following actions or make any of the following
decisions without the prior written consent or approval of Cordish (each, a
"MAJOR DECISION"):

          (i)     allow the Company (as opposed to the Owner Entity or any
     Additional Property Owner Entity) to incur debt, liabilities, guarantees,
     or borrowings;

          (ii)    except with respect to or in connection with an Approved
     Financing, allow the Owner Entity or any Additional Property Owner Entity
     to incur any debt or borrowing, or otherwise, refinance, recast, extend,
     compromise, or prepay (except in connection with condemnation or casualty)
     any debt encumbering one or more of the Properties;

          (iii)   prior to December 31, 2009 and except as provided in Article
     IX hereof and except with respect to a tax free exchange under Section 1031
     of the Code or a reinvestment under Section 1033 of the Code, or other
     transaction in which the Company recognizes no gain or a DE MINIMIS (I.E.,
     less than 1% of the selling price) gain, sell, transfer, assign, convey,
     exchange or otherwise dispose of or transfer all or any portion of any
     Property or the Company Assets (other than personal property of the
     Properties which may be disposed of or replaced due to wear and tear or
     obsolescence);

          (iv)    except as provided in Article VIII, admit any Person as an
     additional Member of the Company;

          (v)     assign the property or assets of the entire Company in trust
     for creditors or file on behalf of the entire Company a voluntary petition
     for relief under the bankruptcy laws or similar voluntary petition under
     state laws;

          (vi)    cause the Company to become a party to any merger,
     consolidation or share exchange with any other entity or person, or
     dissolve or terminate the Company if any such transaction would have a
     material adverse effect on Cordish;

          (vii)   other than in connection with an Approved Financing, pledge,
     assign or encumber any equity interest in any Owner Entity;

          (viii)  pledge, assign or encumber any equity interest in any
     Additional Property Owner Entity; and

          (ix)    cause any Owner Entity or Additional Property Owner Entity to
     take any of the foregoing actions.

                                      -31-
<Page>

     E.   Inland shall cause the Owner Entity to arrange and maintain property,
casualty and liability insurance with respect to the Existing Property in
amounts and on terms that are consistent with the customary practices of Inland
and its Affiliates with respect to similar properties and taking into account
all relevant factors including the nature and location of the Existing Property;
PROVIDED, HOWEVER, Inland shall cause (i) any improvements on the Existing
Property to be insured against damage by fire and the other hazards covered by a
standard extended coverage and all-risk insurance policy or a builders risk
insurance policy, as applicable, for the full insurable value thereof (without
reduction for depreciation or co-insurance) and with a reasonable deductible,
(ii) the Existing Property with completed improvements to be covered by use and
occupancy insurance covering, as applicable, rental income or business
interruption, with coverage in an amount not less than twelve (12)-months
anticipated gross rental income or gross business earnings, as applicable,
attributable to the Existing Property; and (iii) each Owner Entity to maintain
commercial general liability and umbrella liability insurance with respect to
the Existing Property providing for combined limits of liability of not less
than $25 million for both injury to or death of a person and for property damage
per occurrence. The Company, Cordish and the Additional Property Owner Entities
shall be named as additional insureds. Upon the request of Cordish, Inland shall
deliver to Cordish copies of such insurance policies and other documents and
information necessary in order to verify its compliance with the provisions of
this Section 6.1.E.

     F.   Whenever a Member ("REQUESTING MEMBER") requests that the other Member
(the "REQUESTED MEMBER") consent to any action required of the Requested Member
under the provisions of this Agreement, notice shall be delivered by the
Requesting Member to the Requested Member pursuant to the provisions of Section
10.2 hereof, which notice shall be in writing and shall include (a) a summary of
the terms and conditions of the actions requested to be taken by the Requesting
Member, (b) a copy of any proposed documentation, including any document to be
executed by the Company or the Requested Member in connection therewith, and (c)
a notice that conspicuously states that "THIS NOTICE IS BEING PROVIDED TO YOU IN
ACCORDANCE WITH THE TERMS OF THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY
AGREEMENT OF TOWSON CIRCLE HOLDING LLC. IF YOU DO NOT GIVE YOUR APPROVAL OR
DISAPPROVAL OF THE ACTION PROPOSED IN THIS NOTICE TO BE TAKEN WITHIN TEN (10)
BUSINESS DAYS AFTER YOU RECEIVE THIS REQUEST FOR APPROVAL, YOUR APPROVAL OF THE
PROPOSED ACTION WILL BE DEEMED GIVEN." If the Requested Member does not respond
to the Requesting Member within ten (10) business days of receipt of such
notice, the Requested Member shall be deemed to have approved the action
requested by the Requesting Member. Notwithstanding the inference from the
foregoing provisions to the contrary, the foregoing provisions of this Section
6.1.F shall not be deemed to reduce any specific time periods for notice
otherwise expressly set forth in this Agreement. In furtherance of the
foregoing, in the event that any provision of this Agreement sets forth a
specific time period for notice which is other than ten (10) business days, the
provisions of this Section 6.1.F (including the notice to be delivered
hereunder) shall be modified to reflect such specific time period.

     SECTION 6.2. DELEGATION OF AUTHORITY REGARDING SPECIFIC MATTERS.

     A.   The Manager hereby delegates to Cordish the specific and exclusive
authority to arrange for, negotiate and acquire in the manner provided in
Section 6.5 hereof, one or more

                                      -32-
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Additional Properties. However, except as provided in Section 6.2.C below,
Cordish shall not manage or bind the Company with respect to the Existing
Property. Subject to the terms of this Section 6.2 and Section 6.5 hereof, the
signature of Cordish alone shall be both necessary and sufficient to: (i)
acquire any Additional Property; (ii) organize any Additional Property Owner
Entity; (iii) execute any promissory notes, deeds of trust, mortgages, or other
instruments of hypothecation with respect to the financing or re-financing of
any Additional Property; or (iv) enter into any partnership, operating or other
agreements with respect to an Additional Property Owner Entity, or any entity in
which any Additional Property Owner Entity holds an equity interest. All of the
Members agree that a copy of this Agreement may be furnished to appropriate
third parties in order to confirm the matters set forth in the immediately
preceding sentence. Inland agrees to cooperate with Cordish by executing any
consents or certificates of the Company necessary to demonstrate to a lender,
tenant or other service provider to an Additional Property Owner Entity that
Cordish has the power and authority set forth in this Section 6.2.A.

     B.   In addition, notwithstanding any provision of Section 6.1 to the
contrary, but subject in all respects to the provisions of this Section 6.2 and
Section 6.5 hereof, the Manager hereby delegates to Cordish the specific and
exclusive authority to direct the management of the business and affairs of any
Additional Property Owner Entity and the Additional Properties. In connection
therewith, Cordish is authorized, in the name of and on behalf of the Company,
to cause any Additional Property Owner Entity to take any and all actions
whatsoever, including but not limited to the following actions:

          (i)     To negotiate, in the name of and on behalf of the Additional
     Property Owner Entity, financing for the acquisition, construction,
     development, redevelopment, or improvement of the Additional Property,
     which may be secured by the Additional Property (but which shall be
     nonrecourse in all respects to the Company and Inland and shall be secured
     solely by the Additional Property to which such financing relates, together
     with any guaranty or credit enhancement given by Cordish or any Cordish
     Affiliate) and to take any and all actions necessary or convenient to cause
     the Additional Property Owner Entity to close on any such financing,
     PROVIDED, HOWEVER, that (a) prior to such Additional Property Owner Entity
     executing any binding agreement regarding such financing, Cordish shall
     consult with Inland regarding the terms of the financing and shall provide
     Inland with the opportunity to review any material documents to be executed
     by the Additional Property Owner Entity in connection therewith, although
     so long as the financing is consistent with and satisfies the guidelines
     set forth above in this subsection 6.2.B(i), or so long as the Additional
     Property Owner Entity owns a minority equity interest in another entity
     (and does not own a direct real property interest) and does not incur such
     financing directly, Inland's consent to such execution shall not be
     required, (b) payment and performance of any recourse financing secured by
     an Additional Property from a third-party lender unaffiliated with Cordish
     shall be guaranteed by Cordish (or an Affiliate thereof or any other Person
     other than the Company) and (c) such financing shall be an "Approved
     Financing" under the terms and conditions of EXHIBIT B attached hereto. No
     guaranty or credit enhancement (or payment thereunder) provided by Cordish
     shall increase Cordish's Capital Account or Cordish's Adjusted Capital
     Balance; instead any such payment shall be treated as a Development

                                      -33-
<Page>

     Loan (subject to the terms of Section 6.5.F hereof) to the Additional
     Property Owner Entity.

          (ii)    To direct the Additional Property Owner Entity with respect to
     the entering into, modifying, extending, making any decisions required or
     permitted to be made under, enforcing any of an Additional Property Owner
     Entity's rights under or terminating the management agreement for the
     Additional Property.

          (iii)   To take any action enumerated under Sections 6.1.B and 6.1.C,
     but solely with respect to the Additional Property and in the name of the
     Additional Property Owner Entity, provided however that, notwithstanding
     any provision hereof to the contrary (other than as provided in Section
     9.6), the disposition by the Company of an interest in an Additional
     Property Owner Entity and/or the disposition by an Additional Property
     Owner Entity of any Additional Property, any part thereof or any interest
     therein, shall require the consent of Inland.

          (iv)    Subject to the provisions of this Agreement, to take any other
     action associated with the construction, improvement, development and/or
     redevelopment of the Additional Property, including the negotiation and
     execution of any and all contracts or agreements in connection therewith.

          (v)     To take any other action and make any other decision
     pertaining to the conduct of the business and affairs of the Additional
     Property Owner Entity and the Additional Property.

Notwithstanding any provision of this Section 6.2, the actions described in
Sections 6.1.D shall constitute Major Decisions as they relate to the Additional
Properties which Cordish shall not have the right to take pursuant to the
provisions of this Section 6.2 and/or Section 6.5 without the prior written
consent of Inland;

     C.   Notwithstanding anything to the contrary otherwise contained herein,
Inland recognizes and agrees that, pursuant to the terms and conditions of that
certain Leasing and Construction Services Agreement (the "LEASING AGREEMENT") of
even date herewith, Cordish has the right and power to provide certain leasing
and construction services to the Existing Property on behalf of the Owner
Entity, and Cordish may withdraw and use funds in the Operations Reserve to
fulfill any obligations of Cordish under the Leasing Agreement.

     D.   Notwithstanding any provision of this Agreement to the contrary, if
Inland reasonably determines that the Company, any Owner Entity or any
Additional Property Owner Entity has taken or expects to take an action that
would jeopardize Inland's status as a REIT, Inland shall have absolute authority
to take any and all actions that Inland reasonably determines is necessary to
preserve the continued qualification of Inland as a REIT or to avoid the
imposition of additional taxes under the REIT Rules on Inland; provided that,
such action by Inland shall not alter or diminish the distributions to Cordish
under Article IV and Article IX of this Agreement. In furtherance of the
foregoing, Cordish hereby covenants and agrees that it shall timely deliver to
Inland monthly reports, and such other documents and information as Inland shall
reasonably request, regarding the operations relating to the Additional
Properties in

                                      -34-
<Page>

order to enable Inland to comply with the REIT Rules and applicable REIT
reporting and compliance requirements and in order to enable Inland to preserve
the continued qualification of Inland as a REIT and to avoid the imposition of
additional taxes under the REIT Rules on Inland. Without limiting in any way its
obligations under this Section 6.2.D, in connection with its obligations under
this Section 6.2.D, Cordish hereby covenants and agrees to (i) cooperate with
and provide accurate information to Inland to the extent necessary for Inland to
comply with the REIT Rules and applicable REIT reporting and compliance
requirements (which require that Inland satisfies certain income and asset tests
which could be impacted by the operations of the Additional Properties), (ii)
notify Inland in writing prior to Cordish adding services not currently provided
to tenants or others (to verify that any such services do not cause any amounts
of gross income that would otherwise qualify under Section 856(c)(3) of the Code
to fail to qualify under such Code provision as a result of the provision of
such services), (iii) provide Inland with quarterly asset and income statements,
within twenty (20) days after the end of each calendar quarter, in a form to be
provided to Cordish by Inland, (iv) timely and accurately complete and respond
in full to any and all annual questionnaires delivered by Inland, to the extent
reasonably related to Inland's qualification or taxation as a REIT, (v) notify
Inland in writing prior to the acquisition of any securities and prior to having
any tenant issue promissory notes or other securities in lieu of, or in addition
to, such tenant's obligations to pay rent under any sublease and (vi) cause each
Additional Property Owner Entity to derive solely gross income from operations
that is described from time to time by Inland in written guidance delivered to
Cordish or is otherwise permitted under the REIT Rules. Notwithstanding anything
in this Agreement to the contrary, Cordish shall not be required independently
to determine whether any transaction or arrangement could jeopardize Inland's
ability to qualify as a REIT or would result in the imposition of additional
taxes on Inland under the REIT Rules; PROVIDED, HOWEVER, that if Cordish has
actual knowledge or believes, or is otherwise informed by Inland in the exercise
of Inland's reasonable judgment, that a transaction or arrangement involving an
Additional Property, a potential Additional Property or an Additional Property
Owner Entity would jeopardize Inland's ability to qualify as a REIT or result in
Inland's payment of additional taxes under the REIT Rules, Cordish and the
Additional Property Owner Entity shall take such actions (or refrain from taking
such actions) as are required to protect Inland's REIT status or to avoid the
imposition of such taxes (as the case may be); PROVIDED, FURTHER, that if (a)
Cordish or any Additional Property Owner Entity is required under this Agreement
to take actions (or refrain from taking such actions) to protect Inland's REIT
status or to avoid such additional taxes, (b) such action is not otherwise
contemplated by this Agreement, and (c) such action (or inaction) causes Cordish
or the Additional Property Owner Entity to incur costs or damages, Inland shall
reimburse Cordish or the Additional Property Owner Entity (as applicable) for
the amount of the reasonable costs and damages so incurred. In addition to the
foregoing, the Members have consented and agreed to enter into that certain
Declaration of Trust and related agreements as set forth on EXHIBIT C attached
hereto as of the date hereof; provided, however, that Inland shall reimburse any
Additional Property Owner for any loss, cost, expense and damage as a result of
the transfer of any Additional Property to such Trust. Cordish hereby covenants
and agrees to have its representatives meet from time to time (at least
quarterly) with representatives of Inland, at the reasonable request of Inland,
to review the current status of the REIT Rules and applicable compliance and
reporting obligations as they pertain to the operation of the Additional
Properties.

                                      -35-
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     SECTION 6.3. DUTIES AND CONFLICTS.

     A.   The Members, in connection with their respective duties and
responsibilities hereunder, shall at all times act in good faith and, except as
expressly set forth herein, any decision or exercise of right of approval,
consent, disapproval or deferral of approval by a Member (including the Manager)
is to be made by such Member pursuant to the terms of this Agreement in good
faith, but recognizing that each Member may act in its own economic self
interest and in accordance with such tax and business objectives as it deems
appropriate or desirable for such Member. Except as otherwise agreed to in
writing by the Members, no Member (including the Manager) or any partner,
officer, shareholder or employee of any Member shall receive any salary or other
remuneration for its services rendered pursuant to this Agreement.
Notwithstanding the foregoing, an Affiliate of Inland may manage the Existing
Property pursuant to a separate management agreement the execution by the
Company of which shall expressly not require the consent of Cordish.

     B.   Each Member recognizes that the other Members (including the Manager)
have or may have other business interests, activities and investments, some of
which may be in conflict or competition with the business of the Company and
that such other Member (including the Manager) is entitled to carry on such
other business interests, activities and investments. No Member (including the
Manager) shall be obligated to devote all or any particular part of its time and
effort to the Company and its affairs.

     C.   The Manager shall not be liable to the Company or any other Member for
any error in judgment, mistake or law or fact or for any other act or thing
which it may do or refrain from doing in connection with the business and
affairs of the Company, except in the case of an intentional breach of any
provision of this Agreement (after written notice to the Manager and a
reasonable time to cure) or its willful misconduct, gross negligence or bad
faith.

     SECTION 6.4. OPERATIONS RESERVE.

     A.   The Company shall establish, from the Initial Capital Contributions of
Inland, a reserve (the "OPERATIONS RESERVE") of all cash remaining after the
application of funds in accordance with Section 4.1 hereof and other payments
required to be made by the Company in connection with the transactions
contemplated by the Contribution Agreement. The Operations Reserve shall be
deposited in an interest-bearing account in a bank designated by Cordish and
acceptable to Inland. Interest earned, if any, on the Operations Reserve shall
be released from the Operations Reserve and included in Gross Receipts. The
balance of the Operations Reserve shall be increased from time to time without
duplication (i) as and when funds are released from the escrow account(s) and
designated to be deposited in the Operations Reserve in accordance with the
terms of Sections 2.1 and 2.2 of the Escrow Agreement and Section 2 of the
Liquidity Escrow Agreement and (ii) as and when Inland makes Additional Capital
Contributions to the Company under the terms of Section 3.3.A hereof but solely
to the extent that such funds are designated to be deposited in the Operations
Reserve pursuant to the terms of this Agreement and Article I of the
Contribution Agreement. The balance of the Operations Reserve shall be decreased
from time to time as and when funds are withdrawn from such account and applied
in the manner set forth in this Agreement. Notwithstanding any provision of
Article IV hereof to the contrary, all amounts payable to Cordish as a Cordish
Preferred Return or as an Unpaid

                                      -36-
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Cordish Preferred Return shall be paid solely from (x) the Operations Reserve,
and shall reduce dollar for dollar the balance of the Operations Reserve; (y)
Net Cash Flow received by the Company to the extent derived solely from the
activities of any Additional Property Owner Entity and/or (z) Development Loans
made pursuant to Section 6.5.F hereof.

     B.   Cordish shall be permitted to cause the Company to withdraw and use
funds in the Operations Reserve, without the consent of Inland, within the
authority granted to Cordish to direct the acquisition, development and
operations of Additional Properties (through an Additional Property Owner
Entity), as well as to pay any claim owed by Cordish under the Indemnification
Agreement. Inland, acting in its capacity as Manager, shall be permitted to
cause the Company to withdraw and use funds in the Operations Reserve for any
other Company purpose, but only to the extent the revenues of the Company are
insufficient to accomplish such purposes and Inland obtains the prior written
consent of Cordish to such withdrawal and use, which consent may be withheld in
Cordish's sole and absolute discretion.

     SECTION 6.5  ACQUISITION OF ADDITIONAL PROPERTIES.

     A.   The Members anticipate expanding the business of the Company by
acquiring one or more Additional Properties (through Additional Property Owner
Entities) and causing the Additional Properties to be developed, redeveloped or
refurbished. Either Member may identify potential Additional Properties for
acquisition and development by the Company and shall notify the other Member of
any such identification and provide the other Member with the opportunity to
comment thereon. Cordish shall have the right and authority, subject to the
provisions of Section 6.1.D applicable to Cordish pursuant to Section 6.2
hereof, to supervise and coordinate all aspects of the acquisition, financing,
development and/or redevelopment of each Additional Property, shall keep Manager
informed with respect to all such activity and shall have the duties and
obligations set forth in Section 6.1.C and elsewhere in this Agreement with
respect to the Additional Properties, to the extent applicable; PROVIDED,
HOWEVER, that any such Additional Property may only be acquired by an Additional
Property Owner Entity and only if (i) such Additional Property and the related
Development Plan for such Additional Property has been approved by Cordish, (ii)
all available environmental reports and similar reports for such Additional
Property have been submitted to the Manager and the Manager has approved the
environmental and similar condition of such Additional Property, (iii) the
Manager determines that the acquisition of such Additional Properties would not
impose additional liabilities or obligations on the Company (other than to the
extent that such liabilities or obligations would remain liabilities and
obligations solely of the applicable Additional Property Owner Entity) and (iv)
the Manager determines that the acquisition of such Additional Properties would
not adversely affect the continued qualification of Inland as a REIT and would
not cause the imposition of additional taxes under the REIT Rules on Inland.

     B.   Unless otherwise agreed by the Members in writing, each Additional
Property shall be acquired by an Additional Property Owner Entity which shall be
a single-purpose limited liability company similar in form and structure to the
Owner Entity. Each Additional Property Owner Entity shall be owned solely by the
Company.

     C.   Unless otherwise agreed by the Members in writing, Cordish may utilize
cash then held in the Operations Reserve to fund the costs relating to any
Additional Property in

                                      -37-
<Page>

addition to incurring (or causing an Additional Property Owner Entity to incur)
financing for the acquisition, development and/or redevelopment of the
Additional Property (subject to the limitations set forth in this Agreement).
Unless otherwise agreed by the Members in writing, and notwithstanding any
authority granted to Cordish under this Agreement (specifically including, but
not limited to, Section 6.2 hereof), the Company shall not utilize any Company
cash other than the cash in the Operations Reserve in connection with the
acquisition of, financing of, operation of, and other costs relating to, the
Additional Properties and the Additional Property Owner Entities.

     D.   Cordish shall cause the Additional Property Owner Entity to arrange
and maintain property, casualty and liability insurance with respect to the
Additional Properties in amounts and on terms that are consistent with the
customary practices of Cordish and its Affiliates with respect to similar
properties and taking into account all relevant factors including the nature and
location of the Additional Properties; PROVIDED, HOWEVER, Cordish shall cause
(i) any improvements on the Additional Properties to be insured against damage
by fire and the other hazards covered by a standard extended coverage and
all-risk insurance policy or a builders risk insurance policy, as applicable,
for the full insurable value thereof (without reduction for depreciation or
co-insurance) and with a reasonable deductible, (ii) each Additional Property
with completed improvements to be covered by use and occupancy insurance
covering, as applicable, rental income or business interruption, with coverage
in an amount not less than twelve (12)-months anticipated gross rental income or
gross business earnings, as applicable, attributable to such Additional
Property; and (iii) each Additional Property Owner Entity to maintain commercial
general liability and umbrella liability insurance with respect to each
Additional Property providing for combined limits of liability of not less than
$25 million for both injury to or death of a person and for property damage per
occurrence; The Company, Inland, and the Owner Entity shall be named as
additional insureds. Upon the request of Inland, Cordish shall deliver to Inland
copies of such insurance policies and other documents and information necessary
in order to verify its compliance with the provisions of this Section 6.5.D.

     E.   Subject to the terms of Section 6.2.B(i) hereof, Cordish shall have
the right and authority to arrange the original financing for each Additional
Property on behalf of the Additional Property Owner Entity in accordance with
Section 6.2.B(i) without the need to obtain the consent or approval of the
Manager, and to utilize the funds (including interest thereon) in the Operations
Reserve in connection with the acquisition, development and/or redevelopment of
Additional Properties.

     F.   If any Additional Property Owner Entity has a need for funds in
connection with the acquisition, development and/or redevelopment of an
Additional Property, or if the Company requires additional funds in connection
with the acquisition of an equity interest in an Additional Property Owner
Entity, or if an Additional Property Owner Entity does not have sufficient cash
flow to fund the Cordish Preferred Return that year to the Company, and in
either case such amount exceeds the amount available from the Operations Reserve
and the proceeds of any financing arranged by Cordish pursuant to Section 6.5.E
hereof, then Cordish shall have the right to provide written notice of the need
for such funds ("REQUIRED DEVELOPMENT FUNDS") to the Members (a "DEVELOPMENT
FUNDS NOTICE"). Upon receipt of the Development Funds Notice, the Members may
upon mutual consent (in their sole and absolute discretion) elect to (a) make an
Additional Capital Contribution in proportion to their respective Percentage
Interests, or

                                      -38-
<Page>

(b) make loans ("DEVELOPMENT LOANS") to the Additional Property Owner Entity in
the amount of the Required Development Funds described in the Development Funds
Notice in proportion to the Members' respective Percentage Interests on the same
terms and form as a Cash Shortfall Loan made with respect to the Additional
Property as set forth in Section 3.4.C hereof. The Members hereby covenant and
agree to structure any Development Loans made pursuant to the terms hereof so
that such loans satisfy the "Straight Debt Safe Harbor" under Code Section
856(c)(7) and the Treasury Regulations promulgated thereunder. If the Members do
not agree to make such Additional Capital Contributions or Development Loans,
Cordish shall promptly make (or cause an Affiliate or other Person selected by
it to make) a Development Loan to the Additional Property Owner Entity in the
amount of the Required Development Funds in accordance with Section 6.2.B(i) and
on the same terms applicable to a Cash Shortfall Loan made with respect to the
Additional Property as set forth in Section 3.4.C hereof. If Cordish does not
promptly make or cause an Affiliate or other Person selected by it to make a
Development Loan pursuant to this Section 6.5.F, Inland shall have the right,
but not the obligation, in its sole and absolute discretion, to fund the amount
of such Development Loan, which shall constitute a Default Loan by Inland to
Cordish in the same manner as set forth in Section 3.4.B hereof. If Inland does
not elect (in its sole discretion and with no duty or obligation to do so) to
make such a Development Loan or Default Loan and if such Additional Property
Owner Entity will become insolvent or will be in default under any of its
financing obligations then Inland shall have the unilateral right at any time to
cause the Company to distribute the entire ownership interest in such Additional
Property Owner Entity to Cordish (notwithstanding any other provisions of this
Agreement to the contrary) on the terms provided in Section 9.6.B and the
Adjusted Capital Balance of Cordish shall be reduced by an amount equal to the
portion of the Operations Reserve theretofore contributed to such Additional
Property Owner Entity.

     G.   Notwithstanding anything to the contrary otherwise contained herein
and in addition to the obligations and conditions set forth herein, in the event
Cordish desires that an Additional Property Owner Entity acquire a direct
interest in real property (as opposed to an indirect interest, such as a
partnership interest or limited liability company interest in another entity
that owns real property), before such Additional Property Owner Entity acquires
title to such Additional Property, Cordish shall provide Inland with a copy of a
Phase I environmental report that does not recommend that any further studies,
tests or remediation be conducted with respect to such property.

     H.   Prior to the acquisition of an Additional Property and in addition to
the obligations and conditions set forth herein, Cordish shall deliver to the
Manager a proposed Development Plan for such Additional Property. The Manager
shall have the right to review and comment on each Development Plan so submitted
by Cordish. Within ten (10) business days after the delivery of the proposed
Development Plan for an Additional Property, the Manager shall provide Cordish
with its comments thereon (including whether or not the Manager believes at such
time that the Additional Property will comply with the requirements in Section
6.6 below, provided, however, that the Manager's initial belief as set forth in
this sentence shall not be deemed to be a waiver of the Manager's or Inland's
rights hereunder), if any, which Cordish shall take into consideration.

                                      -39-
<Page>

     I.   Cordish shall cause the development, redevelopment, construction and
improvement of each Additional Property to be completed substantially in
accordance with the Development Plan therefor.

     SECTION 6.6  COMPLIANCE WITH CERTAIN REQUIREMENTS.

     Notwithstanding any other provision of this Agreement or any other document
governing the management and operation of the Property, Inland shall have the
right to cause the Company, each Owner Entity and any Additional Property Owner
Entity to take any reasonable action or to refrain from taking any action
(including but not limited to using a protective trust to own assets) to (i)
preserve the continued qualification of Inland as a real estate investment trust
under Section 856 of the Code (a "REIT"), (ii) preserve the continued
qualification of any Affiliates of Inland as taxable REIT subsidiaries and (iii)
avoid the imposition of additional taxes on Inland under Section 857 of the Code
or Section 4981 of the Code and the Treasury Regulations promulgated thereunder
(collectively the "REIT RULES"). The Members agree that in the event that Inland
proposes to take any action (or cause the Company or any Owner to take any
action) to ensure the continued qualification of Inland as a REIT or to avoid
the imposition of additional taxes under the REIT Rules on Inland, Inland shall
(x) notify and consult with Cordish regarding, and prior to taking, such
proposed action and (y) except as provided in Section 6.2.D, not have liability
to any other Member for monetary damages or otherwise for losses sustained or
liabilities incurred in connection with such actions provided that Inland acts
in good faith to determine and implement a course of action that preserves
Inland's REIT status or avoids the imposition of additional taxes on Inland in a
manner which minimizes the adverse effects on any other Member's rights and
obligations hereunder. In no event, however, shall the distributions to Cordish
under Article IV and Article IX of this Agreement be altered or affected by any
action so taken by Inland.

     SECTION 6.7  EXCULPATION AND INDEMNIFICATION.

          A.   Neither the Manager nor any employee, representative, agent or
Affiliate of the Manager (collectively, the "COVERED PERSONS") shall be liable
to the Members, the Company or any other Person who has an interest in or claim
against the Company or any Additional Property Owner Entity or Owner Entity for
any loss, damage or claim incurred by reason of any act or omission performed or
omitted by such Covered Person in good faith on behalf of the Company and in a
manner reasonably believed to be within the scope of the authority conferred on
such Covered Person by this Agreement, except that a Covered Person shall be
liable for any such loss, damage or claim incurred by reason of such Covered
Person's gross negligence or willful misconduct.

          B.   To the fullest extent permitted by applicable law, a Covered
Person shall be entitled to indemnification from the Company for any loss,
damage or claim incurred by such Covered Person by reason of any act or omission
performed or omitted by such Covered Person in good faith on behalf of the
Company and in a manner reasonably believed to be within the scope of the
authority conferred on such Covered Person by this Agreement, except that no
Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of such Covered
Person's gross negligence or willful misconduct with respect to such acts or

                                      -40-
<Page>

omissions; PROVIDED, HOWEVER, that any indemnity under this Section 6.7 by the
Company shall be provided out of and to the extent of Company assets only, and
the Members shall not have personal liability on account thereof.

          C.   To the fullest extent permitted by applicable law, expenses
(including legal fees) incurred by a Covered Person defending any claim, demand,
action, suit or proceeding shall, from time to time, be advanced by the Company
prior to the final disposition of such claim, demand, action, suit or proceeding
upon receipt by the Company of an undertaking by or on behalf of the Covered
Person to repay such amount if it shall be determined that the Covered Person is
not entitled to be indemnified as authorized in this Section 6.7

          D.   A Covered Person shall be fully protected in relying in good
faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the
Covered Person reasonably believes are within such other Person's professional
or expert competence and who has been selected with reasonable care by or on
behalf of the Company, including information, opinions, reports or statements as
to the value and amount of the assets, liabilities, or any other facts pertinent
to the existence and amount of assets from which distributions to the Member
might properly be paid.

          E.   To the extent that, at law or in equity, a Covered Person has
duties (including fiduciary duties) and liabilities relating thereto to the
Company or to any other Covered Person, a Covered Person acting under this
Agreement shall not be liable to the Company or to any other Covered Person for
its good faith reliance on the provisions of this Agreement or any approval or
authorization granted by the Company or any other Covered Person. The provisions
of this Agreement, to the extent that they restrict the duties and liabilities
of a Covered Person otherwise existing at law or in equity, are agreed by the
Members to replace such other duties and liabilities of such Covered Person.

          F.   The foregoing provisions of this Section 6.7 shall survive any
termination of this Agreement.

          G.   Notwithstanding any provisions herein to the contrary, the
provisions of this Agreement, specifically including, but not limited to, the
provisions of this Section 6.7, shall not in any way be construed to limit or
affect the terms and conditions of the Indemnification Agreement.

                                   ARTICLE VII

                           BOOKS AND RECORDS; RESERVES

     SECTION 7.1. BANK ACCOUNTS.

     The Manager shall have authority to open bank accounts and designate
signatories with respect thereto on behalf of the Company and the Owner Entity
and may authorize property managers to open such bank accounts as it shall deem
necessary or desirable for the management and operation of the Property and the
conduct of Company business (including the business of

                                      -41-
<Page>

the Owner Entity). Cordish shall open and be the sole signatory on all bank
accounts and keep all banking and accounting records with respect to the
Additional Properties, Additional Property Owner Entities and Operations
Reserve, PROVIDED, HOWEVER, that Cordish shall make all information regarding
the Additional Properties, the Additional Property Owner Entities and the
Operations Reserve available to Inland for its review, as required under the
terms of this Article VII.

     SECTION 7.2. BOOKS OF ACCOUNT.

     The Company and each Owner Entity and Additional Property Owner Entity
shall keep accurate and complete books of account and records showing the assets
and liabilities, operations, transactions and financial condition of the
Company, each Owner Entity and Additional Property Owner Entity and each
Property. All such books of account and records may be inspected by any Member,
its designees or representatives from time to time and upon reasonable prior
notice at the office of the Company or other person maintaining the same. With
respect to any Additional Properties managed by Cordish pursuant to the
provisions hereof, Cordish shall open all bank accounts and keep all bank and
accounting records and shall supply, promptly upon request, them to the Manager
for incorporation into the books and records of the Company. Cordish hereby
acknowledges and agrees that pursuant to the terms of the Contribution
Agreement, Cordish has agreed to deliver to Inland prior to the date hereof any
and all of the books and records, organizational documents, banking records and
statements and other financial statements (including ancillary documents
relating thereto) of the Company and the Owner Entity covering all periods from
the date of their formation until the date hereof. Cordish hereby covenants and
agrees to cooperate with the Manager, and in particular will make available, as
the Manager reasonably requests, management decisions, liaison personnel,
information, approvals and acceptances so that the Manager may properly perform
its obligations under this Agreement.

     SECTION 7.3. OPERATING STATEMENTS.

     A.   As and when prepared or received by the Manager, the Manager shall
promptly provide each Member with copies of all reports, studies, operating
statements, budgets and other material documents received by the Owner Entity
and the Additional Property Owner Entities. The Manager shall at least once
every Fiscal Year have the Company's books and records reviewed at Company
expense by the Accountant. A copy of the reviewed audited financial statements
shall be submitted promptly after completion to all Members, and not later than
ninety (90) days after the end of each Fiscal Year. Cordish shall provide the
Manager with any and all reports and information regarding the Additional
Property and the Additional Property Owner Entity that the Manager requires in
order to comply with its obligations under this Section 7.3.

     B.   Upon the request of any Member and solely to the extent that such
information and reports are available to, and have been prepared or received by,
the Manager, the Manager shall promptly provide such requesting Member with (i)
a Net Cash Flow statement, (ii) unaudited financial statements of the Company,
including a balance sheet, statements of changes in Members' capital accounts
during such quarter, statements of profit and loss for such quarter, all
prepared in accordance with generally accepted accounting principles applied on
a consistent

                                      -42-
<Page>

basis, (iii) a revised projection of income and expenses of the Company for the
remainder of the current Fiscal Year, (iv) in the event a Capital Transaction
has occurred, a statement of the Net Proceeds of a Capital Transaction for such
Capital Transaction. Upon the request of any Member and as promptly as practical
after the end of each calendar year, the Manager shall forward to such
requesting Member the same statements described in the preceding sentence for
the preceding calendar year. Cordish shall be responsible for the prompt
preparation and delivery to the Manager of all such reports with respect to any
Additional Property and any Additional Property Owner Entity, including, but not
limited to, the reports and information required to be delivered to Inland under
the terms of Section 6.2.D hereof.

     C.   As soon as practicable, but within seventy-five (75) days after the
end of the Fiscal Year, and only after the written approval thereof by the
Manager, the Tax Matters Member shall, as a Company expense, furnish the Members
with all necessary tax reporting information required by the Members for the
preparation of their respective federal, state and local income tax returns,
including each Member's pro rata share of income, gain, loss, deductions and
credits for such Fiscal Year. The Tax Matters Member hereby covenants and agrees
that no tax return of the Company, the Owner Entity or any Additional Property
Owner Entity shall be filed with any governmental authority without the prior
written consent of both Members.

     D.   As soon as practicable, but in no event later than seventy-five (75)
days after the end of the Fiscal Year, and only after the written approval by
the Manager, the Tax Matters Member shall, subject to the terms of Section 7.5.G
hereof as a Company expense, furnish each Member with copies of the Company's
federal partnership Return of Income and other income tax returns, together with
each Member's Schedule K-l or analogous schedule, which returns shall be signed
by the Tax Matters Member on behalf of the Company and co-signed by the
Accountant as preparer.

     E.   Except as otherwise provided in this Agreement, all decisions as to
accounting principles, whether for the Company's books or for income tax
purposes (and such decisions may be different for each such purpose) and all
elections available to the Company under applicable tax law shall be made by the
Manager. The Company shall use reasonable efforts to cause all federal, state
and local income and other tax returns to be timely filed by the Company,
provided that such returns shall be subject to prior review and approval by the
Members.

     F.   Each Member shall promptly provide the Manager and/or the Tax Matters
Member, as applicable, with the information necessary in order to enable the
Manager and/or the Tax Matters Member to furnish the information, reports and/or
statements called for pursuant to this Section 7.3. The Manager's and/or the Tax
Matters Member's obligations to provide reports, information and filings, shall
be contingent upon the receipt of the relevant information from the Members.

     SECTION 7.4. THE ACCOUNTANT.

     Jules R. Willen & Associates shall be retained as the initial accountant
for the Company (the "ACCOUNTANT") for the Fiscal Year ending December 31, 2004
and shall prepare the 2004 tax return of the Company subject to the review and
written approval of the Tax Matters Member

                                      -43-
<Page>

and the Manager. Except as provided in Section 7.5.G hereof, the fees and
expenses of the Accountant shall be a Company expense. Upon reasonable advance
notice to the Manager, any Member may, in its discretion and at such Member's
expense, cause a nationally recognized accounting firm selected by such Member
in its reasonable discretion to conduct an annual audit of the books, records
and accounts of the Company, any Owner Entity or Additional Property Owner
Entity (in addition to any audit conducted by the Accountant). In the event the
Manager shall desire to terminate the employment of the Accountant after 2004,
and to substitute another accountant therefor, the Manager shall designate
another nationally recognized accounting firm. In such event, the Members shall
take all actions necessary to cause the then-existing Accountant to fully
cooperate in such transition and to provide all workpapers and other books and
records to the new Accountant.

     SECTION 7.5. TAX MATTERS MEMBER.

     A.   Cordish is hereby designated to act as the "Tax Matters Member" under
Code section 6231(a)(7) for the Fiscal Year ending December 31, 2004 and Inland
shall be the Tax Matters Member for all other Fiscal Years. To the extent
provided in Code Sections 6221 through 6231 and subject to the provisions
hereof, the Tax Matters Member shall represent the Company and the Members in
their capacities as Members before taxing authorities or courts of competent
jurisdiction in tax matters affecting the Company or the Members in their
capacities as Members, and, subject to the limitations set forth in this
Agreement, shall file any tax returns and execute any agreements or other
documents on behalf of the Company. To the extent the Company meets the criteria
set forth in Section 6231(a)(l)(B)(i) of the Code, the Company shall not elect
to be subject to the unified partnership audit procedures under Section
6231(a)(l)(B)(ii) of the Code. The Tax Matters Member shall cause the Accountant
to report the Reorganization and the transactions contemplated in the
Contribution Agreement and herein with respect to the admission of Inland and
the Cash Payment (including the purchase by the Owner Entity of the interest of
the Withdrawing Member therein) as set forth in Section 4.1.A hereof and only
with the written approval of the Manager. The Tax Matters Member hereby
covenants and agrees to allocate the basis step-up attributable to the Existing
Property resulting from the Reorganization and admission, in the manner required
by the Manager in its sole and absolute discretion.

     B.   Subject to the limitations set forth in this Agreement, the Tax
Matters Member is authorized to make any and all elections for federal, state,
and local tax purposes, including, without limitation, any election, if
permitted by applicable law: (i) to adjust the basis of Company Assets pursuant
to Code sections 754, 734(b), and 743(b), or comparable provisions of state or
local income tax law, in connection with Transfers of LLC Interests and Company
distributions; (ii) to treat the Company as a partnership for income tax
purposes (or the functional equivalent thereof under applicable state and/or
local income tax law) and (iii) to treat the Owner Entity as a disregarded
entity for all tax purposes. Notwithstanding the foregoing, the Company shall
not make an election under Section 754 of the Code prior to the Closing under
Section 9.5 hereof without the prior written consent of Cordish; provided,
however, and for the avoidance of doubt, that the Manager shall be permitted, in
its sole and absolute discretion, to cause the Company to make a Section 754
election effective for the year in which the Closing under Section 9.5 occurs.

                                      -44-
<Page>

     C.   To the extent that such matters would have a material adverse effect
on any Member, the Tax Matters Member shall obtain the consent of the other
Members before it can (i) extend the statute of limitations for assessment of
tax deficiencies against the Members with respect to adjustments to the
Company's federal, state, or local income tax returns, or (ii) execute any
settlement agreement that binds the Members or otherwise affects the rights of
the Company and the Members.

     D.   Prior to the taking of any action and/or the making of any election by
the Tax Matters Member (including all such actions and/or elections specifically
referred to in this Agreement) which has a material adverse effect on the other
Member, the Tax Matters Member shall provide prompt written notice of such
intended action and/or election to the other Member. If the other Member sends
the Tax Matters Member a written objection within thirty (30) business days of
receiving the notice (or such shorter time as may be required to take such
action or to make such election), the Tax Matters Member and the other Member
shall confer about the intended action or election, as applicable. If agreement
cannot be reached within sixty (60) business days after the receipt by the Tax
Matters Member of the other Member's written objection (or such shorter time as
may be required to take such action or to make such election), the Tax Matters
Member shall take the action or make the election, as applicable as originally
proposed unless the other Member provides an opinion from the other Member's
regular outside legal tax counsel, or, at the option of the other Member,
another nationally recognized law firm that is reasonably acceptable to the Tax
Matters Member, in either case at the other Member's sole expense, that the
action or election, as applicable as proposed would more likely than not have an
adverse tax consequence to the other Member. In making such determination, the
other Member's counsel (or such other law firm selected by it in accordance with
the foregoing) shall be instructed to give effect to the provisions of Articles
III and IV hereof. Any dispute regarding any action to be taken under this
Section 7.5.D shall be submitted to arbitration in accordance with the
provisions of Section 7.5.F hereof.

     E.   Within five business days of its receipt, the Tax Matters Member shall
give written notice to the other Member of the receipt of any written notice
relating to a controversy or related proceeding which has a material adverse
effect on the other Member with the Internal Revenue Service or any state or
local taxing authority, including, without limitation, (A) written notice that
the Internal Revenue Service or any state or local taxing authority intends to
examine the Company's income tax returns for any year; (B) written notice of
commencement of an administrative proceeding at the Company level related to the
Company under section 6223 of the Code; (C) written notice of any final Company
administrative adjustment relating to the Company pursuant to a proceeding under
section 6223 of the Code; (D) any request from the Internal Revenue Service or
any comparable state or local taxing agency for waiver of any applicable statute
of limitations with respect to the filing of any tax return by the Company; (E)
any information document requests from the Internal Revenue Service or any other
taxing authority, and (F) any Form 5701 or comparable state or local audit
adjustment notices. Within ninety (90) days after receipt of notice of a final
Company administrative adjustment, the Tax Matters Member shall notify each
Member if it does not intend to file for judicial review with respect to such
adjustment.

     F.   The Tax Matters Member shall keep the other Member fully and promptly
informed about the status of any tax controversy or related proceeding involving
the Company

                                      -45-
<Page>

which could have a material adverse effect on the other member. If, as a result
of a notice provided by the Tax Matters Member under Section 7.5.E or otherwise,
the other Member believes, based upon the nature of the government inquiry, that
the government could be considering an adjustment that would have an adverse
effect upon the other Member, then other Member shall have the right to hire and
retain counsel of its choice, reasonably acceptable to the Tax Matters Member,
to represent the Company in connection with such issue, shall have the right to
control the contest of such issue, and shall participate in such contest to the
maximum extent allowable by law, but shall keep the Tax Matters Member fully
informed. If the Tax Matters Member does not agree that the government could be
considering an adjustment that would have an adverse effect upon the other
Member, then this dispute shall be promptly submitted to a senior tax partner at
a nationally recognized law firm (other than the other Member's regular outside
tax counsel) selected by the other Member and reasonably acceptable to the Tax
Matters Member (the "ARBITRATOR"). The Arbitrator so selected shall be
instructed to give effect to the provisions of this Agreement in determining
whether the adjustment could have an adverse effect on the other Member. The
Arbitrator's determination shall be final and binding on the parties and if the
determination is that the adjustment could have an adverse effect on the other
Member, then the other Member shall have the rights set forth in this Section
7.5.F. All information provided to the Arbitrator by the Company or either
Member shall be kept strictly confidential by the Arbitrator.

     G.   All expenses incurred by Cordish as the Tax Matters Member (or
incurred by the Company as a result of actions taken on behalf of the Company by
Cordish as the Tax Matters Member) for the 2004 taxable year (including, but not
limited to, the costs and expenses incurred by the Company and/or Cordish for
the preparation of the 2004 tax returns of the Company and the Owner Entity and
the expenses of counsel retained by either Member to represent the Company under
section 7.5.F in connection with any tax controversy or related proceeding of
the Company) shall be borne solely by Cordish; PROVIDED, HOWEVER, that if
Cordish does not otherwise make such payments in a timely fashion, such payments
shall be paid from the Operations Reserve. All expenses incurred by Inland as
the Tax Matters Member (including the expenses of counsel retained by the other
Member to represent the Company under section 7.5.F) in connection with any tax
controversy or related proceeding of the Company will be borne equally by Inland
and Cordish; PROVIDED, HOWEVER, that if Cordish does not otherwise make its
portion of such payments in a timely fashion, such portion of such payments
shall be paid from the Operations Reserve. Nothing herein shall be construed to
restrict Inland, during the periods that Inland is the Tax Matters Member, from
engaging an accounting or law firm to assist the Tax Matters Member in
discharging its duties hereunder, so long as the compensation paid by the
Company for such services is customary.

                                  ARTICLE VIII

                            TRANSFER OF LLC INTERESTS

     SECTION 8.1. NO TRANSFER.

     A.   Except as provided in this Article VIII, no Member may Transfer any
LLC Interest, except as hereinafter set forth in this Article VIII or upon prior
written consent of all of the other Members, which consent may be granted or
withheld in the sole and absolute discretion

                                      -46-
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of the other Members. Any Transfer of an LLC Interest in contravention of this
Article VIII shall be null and void and shall be deemed a material breach of,
and a default under, this Agreement, and the other Members shall have all the
rights and remedies available under this Agreement.

     B.   For the purposes of this Article VIII the rules applicable to the
Transfer of an LLC Interest shall apply in the same manner to transfers of
interest in the Members; PROVIDED, HOWEVER, that the following transfers shall
not be subject to this Section 8.1: (i) transfers of an interest in Inland to a
Person who, as of the date hereof, is a member of such entity, or (ii) transfers
of an interest in Inland if an Affiliate of Inland retains at least a 20%
interest, or (iii) transfers of an interest in Inland in connection with a sale
or transfer by Inland Western Retail Real Estate Trust, Inc., or any of its
Affiliates, of all or substantially all of their assets, or (iv) transfers of an
interest in Cordish as long as David Cordish, Blake Cordish, Reed Cordish and/or
Jonathan Cordish retains control of the business and activities of Cordish.

     SECTION 8.2. PERMITTED TRANSFERS.

     A.   The restrictions on Transfers under Section 8.1 shall not apply to any
(i) Transfer (for any consideration or no consideration) by Inland or Cordish of
all or any part of its LLC Interest to any 80% Owned Affiliate of the transferor
Member (provided that counsel to the non-Transferring Member reasonably
determines that such Transfer would not have any adverse tax effect (directly or
indirectly) on the non-Transferring Member), or (ii) Transfer to any other
Member.

     B.   A permitted transferee of a Member pursuant to Section 8.1.A or 8.2.A
hereof that acquires the LLC Interest of a Member shall not be recognized by the
Company as a Member and shall have only the rights of an assignee of the
transferor Member's LLC Interest, except upon compliance with the terms of
Section 8.2.C. A Member who assigns all of its LLC Interest to a permitted
transferee (other than the other Member) in accordance with the provisions of
this Agreement shall nevertheless remain a Member of the Company subject to all
the duties and obligations imposed on it under this Agreement until such time as
the transferee of such LLC Interest is admitted to the Company as a substitute
Member in accordance with Section 8.2.C. Upon any permitted assignment of an LLC
Interest pursuant to Section 8.2, the transferor and transferee shall file with
the Company an executed or authenticated copy of the written instrument of
assignment or transfer.

     C.   No transferee of the whole or a portion of a Member's LLC Interest
shall have the right to become a substituted Member in place of its transferor
unless and until all of the following conditions are satisfied:

          (i)     the transferor and transferee have executed and acknowledged
     such instruments as the other Members may reasonably deem necessary or
     desirable to effect such Transfer;

          (ii)    a duly executed and acknowledged written instrument of
     transfer has been filed with the Company setting forth the intention of the
     transferor that the transferee become a substituted Member in its place;

                                      -47-
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          (iii)   the transferee accepts and agrees to be bound by all the
     provisions of this Agreement by executing and delivering a counterpart
     signature page hereto; and

          (iv)    the transfer would not materially and adversely affect the
     treatment of the Company for tax purposes under the Code or the tax laws of
     any state in which the Company does business.

     SECTION 8.3. SUCCESSION BY OPERATION OF LAW.

     A.   In the event of an Event of Bankruptcy with respect to a Member or the
merger, consolidation, dissolution or liquidation of the Member, all of such
Member's rights to distributions and allocations by the Company, shall pass to
such Member's legal successor, but such legal successor shall not become a
Member of the Company without the prior written consent of the other Members,
which consent may be granted or withheld in all of the sole and absolute
discretion of such other Members.

     B.   Upon occurrence of an Event of Bankruptcy of a Member, or any other
event that causes a Member to cease to be a member of the Company, the business
of the Company shall continue without dissolution. Notwithstanding any other
provision of this Agreement, each Member waives any right that it might have
under Section 18-801(b) of the Act to agree in writing to dissolve the Company
upon the occurrence an Event of Bankruptcy or any other such event.

     SECTION 8.4. ADDITIONAL RESTRICTIONS ON TRANSFERS.

     The LLC Interests described in this Agreement have not been registered
under the Securities Act of 1933, as amended (the "1933 ACT") or under the
securities laws of the State of Delaware or any other jurisdiction (the "STATE
ACTS"). Consequently, in addition to any and all other restrictions on
transferability set forth herein, the LLC Interests may not be sold, assigned,
pledged, hypothecated or otherwise disposed of or Transferred, except in
accordance with the provisions of the 1933 Act and the State Acts.

                                   ARTICLE IX

                   DISSOLUTION AND TERMINATION OF THE COMPANY

     SECTION 9.1. DISSOLUTION.

     The Company shall be dissolved and commence winding up and liquidating only
upon the first to occur of any of the following:

     A.   The sale, condemnation or other disposition of all or substantially
all of the Properties and the receipt of all consideration therefor;

     B.   At any time that there are no Members; or

     C.   The written election of all the Members to dissolve, wind up and
liquidate the Company.

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     SECTION 9.2. TERMINATION.

     Notwithstanding any other provision of this Agreement, in all cases of
valid, voluntary dissolution of the Company (the parties acknowledging that the
right of a Member to cause an involuntary dissolution of the Company or a
partition of the Company has been expressly waived, renounced and released under
Sections 2.7 and 2.8 hereof), the business of the Company shall be wound up and
the Company terminated as promptly as practicable thereafter, and each of the
following shall be accomplished:

     A.   The Manager shall cause to be prepared a statement setting forth the
assets and liabilities of the Company as of the date of dissolution, a copy of
which statement shall be furnished to all of the Members.

     B.   The property and assets of the Company shall be liquidated by the
Manager as promptly as possible, but in an orderly and businesslike and
commercially reasonable manner. The Manager may, in the exercise of its business
judgment and if commercially reasonable, determine to defer the sale of all or
any portion of the property and assets of the Company if deemed necessary or
appropriate to realize the fair market value of any such property or assets. In
lieu of a sale of assets and a dissolution of the Company, the Manager shall be
authorized in its sole and absolute discretion to cause the Company to purchase
and redeem the Cordish LLC Interest in full pursuant to the provisions of
Sections 9.4, 9.5 and 9.6 (without regard to the time limitations therein).

     SECTION 9.3. LIQUIDATING MEMBER.

     Upon the dissolution of the Company, Inland shall act as the liquidating
member (in such capacity, the "LIQUIDATING MEMBER"). The Liquidating Member
shall, upon the dissolution and upon completion of the winding up of the affairs
of the Company, file appropriate certificate(s) to such effect in the proper
governmental office or offices under the LLC Act as then in effect.
Notwithstanding the foregoing, each Member, upon the request of the Liquidating
Member, shall promptly execute, acknowledge and deliver all such documents,
certificates and other instruments as the Liquidating Member shall reasonably
request to effectuate the proper dissolution and termination of the Company,
including the winding up of the business of the Company. Any tax matters that
are continuing as of the time of such liquidation and dissolution and/or that
arise after such liquidation and dissolution (if such liquidation and
dissolution should ever occur) shall be governed by the provisions of Section
7.5 hereof, and the provisions of this sentence shall survive any such
liquidation and/or dissolution of the Company.

     SECTION 9.4 TERMINATION RIGHTS.

     A.   Cordish shall have the right, but not the obligation, to require the
Company to purchase and redeem all, but not less than all, of the Cordish LLC
Interests for the Cordish Liquidation Amount (as such term is defined in Section
9.6.A hereof and subject to Section 9.6.B hereof) if a Redemption Notice (as
defined in Section 9.4.C below) is delivered by Cordish at any time during the
period beginning on the date that is 30 calendar months from the date hereof and
ending on the date that is 36 calendar months from the date hereof.

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     B.   Inland shall have the right, but not the obligation, to require the
Company to purchase and redeem all, but not less than all, and Cordish shall be
required to assign all, of the Cordish LLC Interests for the Cordish Liquidation
Amount (subject to Section 9.6.B hereof), if (except as provided in Section
9.4.E hereof) a Redemption Notice is delivered by Inland at any time during the
period beginning on the date that is 36 calendar months from the date hereof and
ending on the date that is 40 calendar months from the date hereof.

     C.   In order to exercise the rights to require the Company to purchase and
completely redeem the Cordish LLC Interests under this Section 9.4, Cordish or
Inland, as appropriate (the "EXERCISING MEMBER"), shall deliver to the other
Member and to the Company written notice (the "REDEMPTION NOTICE") of the
exercise of such right, which notice shall state the Exercising Member's
computation of the Cordish Liquidation Amount. The delivery of the Redemption
Notice by the Exercising Member shall constitute an irrevocable commitment by
Cordish to transfer and deliver, and the Company to purchase and redeem, all of
the Cordish LLC Interests for the Cordish Liquidation Amount. Closing on the
purchase and redemption of the Cordish LLC Interests shall take place in
accordance with Section 9.5 hereof. Any purchase and redemption of all of the
Cordish LLC Interests under this Section 9.4 shall require the simultaneous
repayment (at Closing) of all Default Loans made pursuant to the provisions of
this Agreement. All Cash Shortfall Loans and Development Loans made by Cordish
with respect to the Additional Properties shall be repaid in full at the Closing
except that if an interest in an Additional Property Owner Entity is distributed
to Cordish, then all Cash Shortfall Loans and Development Loans made to such
entity shall remain outstanding and any distribution of Additional Property
Owner Entity Interests to Cordish pursuant to the provisions hereof shall be
made subject to such Cash Shortfall Loans and Development Loans.

     D.   Upon the delivery of the Redemption Notice by the Exercising Member,
Cordish shall thereupon only be entitled to receive the Cordish Liquidation
Amount and Inland shall have sole authority to act on behalf of the Company to
obtain at Closing the funds required to completely redeem the Cordish LLC
Interests, including borrowing money from third-party lenders, Members or
Affiliates and seeking Capital Contributions from additional Members to be
admitted to the Company.

     E.   Notwithstanding any provision of this Section 9.4 and this Article IX
to the contrary, and specifically notwithstanding the time period during which
Inland is permitted to deliver a Redemption Notice under Section 9.4.B hereof,
Inland shall have the right, but not the obligation, in its sole and absolute
discretion, to deliver a Redemption Notice to Cordish and to cause the purchase
and redemption of all of the Cordish LLC Interests pursuant to the terms of this
Article IX, at any time following the occurrence of one or more of the following
events:

          (i)     if, there are any unpaid indemnification obligations of
Cordish and/or David S. Cordish to any "Inland  Indemnified  Party"  pursuant to
the terms and conditions of the Indemnification Agreement, which indemnification
obligations  have been unpaid for sixty (60) days  following  the date that such
obligations  have been either (A) liquidated and agreed to by the parties hereto
or (B) determined by an arbitrator in accordance with the terms of Section 13.12
of the Indemnification Agreement;

                                      -50-
<Page>

          (ii)    if, (a) Inland suffers an Indemnified Loss pursuant to Section
     10.17.B hereof and (b) an arbitration conducted under Section 10.16 hereof
     determines that Cordish owes or has failed to pay such Indemnified Loss
     within sixty (60) days of the receipt of such notice by Cordish from
     Inland; or

          (iii)   if Cordish breaches any of the provisions of Sections 2.7, 2.8
     or 9.1 hereof.

     SECTION 9.5. CLOSING.

     A.   The closing of the redemption of the Cordish LLC Interests by the
Company pursuant to Section 9.4 (the "CLOSING") shall be held at the principal
offices of the Company and, subject to any other specific time periods for
Closing stated in this Agreement, shall occur on the date specified in the
Redemption Notice, which date shall be no sooner than 30 days and no later than
120 days following the delivery of the Redemption Notice to Cordish or Inland,
as applicable, and the Company.

     B.   At the Closing, Cordish shall transfer and assign the Cordish LLC
Interests to the Company free and clear of any liens, encumbrances or any
interests of any third party and shall execute or cause to be executed any and
all documents required to transfer fully good and clear title to the LLC
Interests being transferred, including, but not limited to, any and all
documents necessary to evidence such transfer. In the event that Cordish does
not timely execute any and all documents necessary to evidence and effect such
transfer of all of the Cordish LLC Interests and to reflect the complete and
absolute withdrawal of Cordish and its Affiliates from the Company at the
Closing, then the Manager is hereby appointed the attorney-in-fact of, and is
hereby authorized on behalf of, Cordish, to execute, acknowledge and deliver all
such documents and take all such other actions as may be required to evidence
and effect such transfer of all of the Cordish LLC Interests. Such appointment
and authorization are coupled with an interest and shall be irrevocable. The
failure by Cordish to execute any document shall not delay the Closing or cause
the Closing to be ineffective.

     C.   At the Closing, Inland shall cause the Company to distribute to
Cordish the Cordish Liquidation Amount and each party shall repay the Default
Loans as applicable. If ownership interests in the Additional Property Owner
Entities are distributed to Cordish as provided herein, the parties shall
execute and/or cause to be executed any and all documents required to transfer
title to the applicable ownership interests being transferred, including, but
not limited to, any and all documents necessary to evidence such transfer;
PROVIDED, HOWEVER, that the Company and Inland shall only be obligated to
deliver an assignment of such ownership interests on an "as is" basis and
without recourse to the Company or Inland. Cordish shall pay and be solely
responsible for (a) any pre-prepayment or due-on-sale penalties and (b) any
transfer, recordation, sales and excise taxes as a result of any in-kind
distributions to Cordish or otherwise as a result of the transactions
contemplated in this Article IX of this Agreement.

     D.   If any consents from lenders or otherwise are required in order to
carry out any provision of this Agreement, the parties hereby agree to cooperate
in good faith and will proceed promptly and diligently to obtain all such
consents; PROVIDED, HOWEVER, that the failure to obtain any such consent may be
waived by Inland in its sole and absolute discretion.

                                      -51-
<Page>

     SECTION 9.6. PURCHASE PRICE ON REDEMPTION OF CORDISH LLC INTERESTS.

     A.   The entire purchase price payable by the Company to Cordish (or its
Affiliates) for the Cordish LLC Interest (the "CORDISH LIQUIDATION AMOUNT")
shall be an amount equal to the sum of the following:

          (i)     the Cordish Preferred Return and the Unpaid Cordish Preferred
     Return as of the date of the Closing as reasonably determined by the
     Company's Accountant, plus

          (ii)    The Cordish Adjusted Capital Balance as of the date of the
     Closing.

The parties agree that for purposes of making the foregoing determinations, the
books of the Company shall be closed as of the Closing.

     B.   Notwithstanding anything in this Section 9.6 to the contrary, Inland
may elect on behalf of the Company, by delivery of written notice to Cordish, to
require Cordish to accept as full and complete payment and consideration for the
transfer and complete redemption of the Cordish LLC Interests in the Company, in
lieu of the cash payment of the Cordish Liquidation Amount, an "as is" in-kind
assignment and distribution to Cordish without recourse to the Company or Inland
of all (100%) of the ownership interests in the Additional Property Owner
Entities, together with all assets in the Additional Properties Trust Estate, as
defined in the Declaration of Trust.

     C.   If Inland does not intend to make an in-kind redemption election under
Section 9.6.B, Cordish may, by delivering written notice to Inland, elect to
require the Company to effect the complete redemption of Cordish's LLC Interests
in exchange for an in-kind distribution of all (100%) of the ownership interests
in the Additional Property Owner Entities by way of an "as is" assignment
without recourse to the Company and Inland of 100% of the ownership interests in
the Additional Property Owner Entities, together with all assets in the
Additional Properties Trust Estate, as defined in the Declaration of Trust. Such
assignment shall be the full and complete payment and consideration for the
Cordish LLC Interests, shall be in lieu of any obligation of the Company to make
a payment of the Cordish Liquidation Amount and Cordish shall have no right to
receive or demand any payment of all or any portion of the Cordish Liquidation
Amount.

     D.   Each party hereby covenants and agrees that following the payment of
the Cordish Liquidation Amount or following the execution of the assignment of
the ownership interests in the Additional Property Owner Entities under the
terms of Sections 9.6.B and 9.6.C of this Agreement, neither Cordish nor any
Affiliate of Cordish shall have any rights with respect to the Company, the
Owner Entity, the assets of the Company or the assets of the Owner Entity either
as owner, lender or otherwise and neither Cordish nor any Affiliate of Cordish
shall have any right to receive any further payments or distributions from the
Company or the Owner Entity under the terms of this Agreement or otherwise,
specifically including, but not limited to, the Cordish Preferred Return, if
any, the Unpaid Cordish Preferred Return, if any, Cordish's Capital Account and
Cordish's Adjusted Capital Balance.

     E.   Upon the redemption of the Cordish LLC Interests, the books and
records of the Company and the Additional Property Owner Entities shall be
closed.

                                      -52-
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                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.1. FURTHER ASSURANCES.

     Each Member agrees to execute, acknowledge, deliver, file, record and
publish such further certificates, amendments to certificates, instruments and
documents, and do all such other acts and things as may be required by law, or
as may be required to carry out the intent and purposes of this Agreement.

     SECTION 10.2. NOTICES.

     All notices, demands, consents, approvals, requests or other communications
which any of the parties to this Agreement may desire or be required to give
hereunder (collectively, "NOTICES") shall be in writing, shall comply with the
provisions of Section 6.1.F hereof, and shall be given by personal delivery, by
overnight delivery service or by United States registered or certified mail
(postage prepaid, return receipt requested) addressed as hereinafter provided.
Except as otherwise specified herein, the time period in which a response to any
notice or other communication must be made, if any, shall commence to run on the
earliest to occur of (a) if by personal delivery, the date of receipt, or
attempted delivery, if such communication is refused; (b) if given by overnight
delivery service, the first business day after the day of delivery to the
overnight carrier; and (c) if sent by mail (as aforesaid), the date of receipt
or attempted delivery, if such mailing is refused. Until further notice, notices
and other communications under this Agreement shall be addressed to the parties
listed below as follows:

     (i)  If to the Company or Cordish, to:

               Cordish TC, LLC
               c/o The Cordish Company
               601 East Pratt Street, Sixth Floor
               Baltimore, MD 21202
               Attention: President

          With a copy (which shall be for informational purposes only) to:

               c/o The Cordish Company
               601 East Pratt Street, Sixth Floor
               Baltimore, MD 21202
               Attention: General Counsel

     (ii) If to the Company or Inland, to:

               c/o Inland Western Retail Real Estate Trust, Inc.
               2901 Butterfield Road
               Oak Brook, Illinois 60523
               Attention: Chief Financial Officer

                                      -53-
<Page>

          and with copies (which shall be for informational purposes only) to:

               c/o The Inland Real Estate Group, Inc.
               2901 Butterfield Road
               Oak Brook, Illinois 60523
               Attention: General Counsel

          and to:
               John J. Ghingher III, Esquire
               Saul Ewing, LLP
               100 South Charles Street
               Baltimore, Maryland 21201

Any Member may designate another addressee (and/or change its address) for
Notices hereunder by a Notice given pursuant to this Section.

     SECTION 10.3. INDEPENDENT REPRESENTATION.

     Inland hereby acknowledges and agrees that it has consulted its independent
counsel with respect to the tax and non-tax consequences of its investment in
the Company, and that neither Cordish nor any Cordish Affiliate shall have any
liability to Inland or its Affiliates(except as otherwise provided herein, in
the Contribution Agreement or in the Indemnification Agreement) as a result of
any adverse consequences to Inland, direct or indirect partner (or other equity
owner) of Inland as a result of Inland's investment in the Company or Inland's
ownership of an LLC Interest in the Company. Cordish hereby acknowledges and
agrees that it has consulted its independent counsel with respect to the tax and
non-tax consequences of its investment in the Company, and that neither Inland
nor any Inland Affiliate shall have any liability to Cordish or any Cordish
Affiliate (except as otherwise provided herein, in the Contribution Agreement or
in the Indemnification Agreement) as a result of any adverse consequences to
Cordish or any Cordish Affiliate as a result of Cordish's investment in the
Company, Cordish's ownership of an LLC Interest in the Company or Cordish's
possible withdrawal from the Company. The foregoing provision is not intended to
and shall not operate to diminish or limit the liability of either Member
resulting from such Member's breach of or default under any provision of this
Agreement or under the Contribution Agreement, nor shall it diminish or limit
the liability of any party to the Indemnification Agreement.

     SECTION 10.4. GOVERNING LAW.

     This Agreement, the rights and obligations of the parties hereto, and any
claims or disputes relating thereto shall be governed by and construed in
accordance with the laws of the State of Delaware (but not including the choice
of law rules thereof).

     SECTION 10.5. CAPTIONS.

     All titles or captions contained in this Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit, extend, or
describe the scope of this Agreement or the intent of any provision hereof.

                                      -54-
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     SECTION 10.6. PRONOUNS.

     All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, and neuter, singular and plural, as the identity of the
party or parties may require.

     SECTION 10.7. SUCCESSORS AND ASSIGNS.

     This Agreement shall be binding upon the parties hereto and their
respective executors, administrators, legal representatives, heirs, successors
and permitted assigns, and shall inure to the benefit of the parties hereto and,
except as otherwise provided herein, their respective executors, administrators,
legal representatives, heirs, successors and permitted assigns.

     SECTION 10.8. EXTENSION NOT A WAIVER.

     No delay or omission in the exercise of any power, remedy or right herein
provided or otherwise available to a Member or the Company shall impair or
affect the right of such Member or the Company thereafter to exercise the same.
Any extension of time or other indulgence granted to a Member hereunder shall
not otherwise alter or affect any power, remedy or right of any other Member or
of the Company, or the obligations of the Member to whom such extension or
indulgence is granted.

     SECTION 10.9. CONSTRUCTION.

     None of the provisions of this Agreement shall be for the benefit of or
enforceable by any creditor of the Company or any third party. No Member shall
be obligated personally for any debt, obligation or liability of the Company
solely by being a Member of the Company.

     SECTION 10.10. SEVERABILITY.

     In case any one or more of the provisions contained in this Agreement or
any application thereof shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and other application thereof shall not in any way be effected
or impaired thereby.

     SECTION 10.11. CONSENTS.

     Any consent or approval to any act or matter required under this Agreement
must be in writing and shall apply only with respect to the particular act or
matter to which such consent or approval is given, and shall not relieve any
Member from the obligation to obtain the consent or approval, as applicable,
wherever required under this Agreement to any other act or matter.

     SECTION 10.12. ENTIRE AGREEMENT.

     This Agreement, together with the Contribution Agreement, Escrow Agreement,
the Liquidity Escrow Agreement, the Indemnification Agreement and any other
agreement ancillary or related hereto or thereto, contains the entire agreement
between the parties relating to the subject matter hereof and all prior
agreements relative hereto which are not contained herein are terminated.
Amendments, variations, modifications or changes herein may be made effective
and

                                      -55-
<Page>

binding upon the parties by, and only by, the setting forth of same in a
document duly executed by each party, and any alleged amendment, variation,
modification or change herein which is not so documented shall not be effective
as to any party.

     SECTION 10.13. RULES OF CONSTRUCTION.

     Unless the context clearly indicates to the contrary, the following rules
apply to the construction of this Agreement:

          (i)     Words importing the singular number include the plural number
     and words importing the plural number include the singular number.

          (ii)    Words of the masculine gender include correlative words of the
     feminine and neuter genders.

          (iii)   The table of contents and the headings or captions used in
     this Agreement are for convenience of reference and do not constitute a
     part of this Agreement, nor affect its meaning, construction, or effect.

          (iv)    Words importing persons include any individual, corporation,
     partnership, limited liability company, joint venture, association, joint
     stock company, trust, unincorporated organization or government or agency
     or political subdivision thereof.

          (v)     Any reference in this Agreement to a particular "Article,"
     "Section" or other subdivision shall be to such Article, Section or
     subdivision of this Agreement unless the context shall otherwise require.

          (vi)    Each reference in this Agreement to an agreement or contract
     shall include all amendments, modifications, and supplements to such
     agreement or contract unless the context shall otherwise require.

          (vii)   When any reference is made in this document or any of the
     schedules or exhibits attached hereto to the Agreement, it shall mean this
     Agreement, together with all other schedules and exhibits attached hereto,
     as though one document.

     SECTION 10.14. COUNTERPARTS.

     This Agreement may be executed in any number of counterparts, and each such
counterpart will for all purposes be deemed an original, and all such
counterparts shall constitute one and the same instrument.

     SECTION 10.15. EXPENSES

     Subject to the terms of this Agreement and the Indemnification Agreement to
the contrary, each of Cordish and Inland hereby covenants and agrees that any
and all costs and expenses (including, but not limited to, attorney's fees and
other professional fees) incurred by each of Cordish, Inland, and their
respective Affiliates in connection with the negotiation and documentation of,
and the transactions contemplated by, this Agreement, the Contribution

                                      -56-
<Page>

Agreement, the Indemnification Agreement and the Reorganization Agreement, shall
be borne solely by the party incurring such costs and expenses and its Affiliate
and shall not be borne by the Company, the Owner Entity and any unrelated
parties. In addition to the foregoing, Cordish hereby covenants and agrees that
any and all costs and expenses (including, but not limited to, attorney's fees
and other professional fees) incurred by it on behalf of the Company and the
Owner Entity in connection with the negotiation and documentation of, and the
transactions contemplated by, this Agreement, the Contribution Agreement, the
Indemnification Agreement and the Reorganization Agreement, shall be borne
solely by Cordish and shall not be funded out of the accounts or funds of the
Company and/or the Owner Entity other than Inland's Initial Capital Contribution
and/or the Operations Reserve.

     SECTION 10.16. ARBITRATION

          A.   In the event that any dispute shall arise between the Company and
any Member or between the Members, with respect to the application of any of the
provisions of this Agreement, and such dispute is not resolved to the
satisfaction of such parties within twenty (20) days after either party shall
notify the other in writing of its desire to arbitrate the dispute (the
"ARBITRATION NOTICE"), then the dispute shall be resolved in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then
pertaining. The decision of the arbitrator shall be binding, final and
conclusive on the parties. Unless the parties otherwise agree, such arbitration
proceedings shall be conducted in Baltimore City, Maryland. The arbitrator shall
be selected by the American Arbitration Association in accordance with the
Commercial Arbitration Rules of the American Arbitration Association. The fees
of the arbitrator and the expenses incident to the proceedings shall be borne by
the losing party. The reasonable fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for by the
parties, shall also be paid by the losing party. The decision of the arbitrator
shall be rendered within thirty (30) days after the conclusion of the
arbitration. A judgment of a court of competent jurisdiction may be entered upon
the award of the arbitrator in accordance with the rules and statutes applicable
thereto then obtaining. At the request of the Company or any Member, the
arbitrator may order and compel specific performance.

          B.   Subject to the provisions of Section 10.16.A, if the Company or
any Member brings suit or other legal proceedings to enforce the provisions of
this Agreement against the other, then the party prevailing in such suit or
proceeding shall be reimbursed by the other for all reasonable attorneys' fees
and litigation costs and expenses incurred by the prevailing party in connection
with such suit or proceeding.

          C.   Any lawsuit, action, or proceeding arising under this Agreement
that is not subject to arbitration shall, to the extent there is federal
jurisdiction over the parties and subject matter, be brought exclusively in the
Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.

          D.   Subject to the provisions of Section 10.16.A, the Company and
each Member do hereby waive trial by jury in any action, suit, proceeding,
and/or counterclaim brought by either of the parties hereto against the other on
any matters whatsoever arising out of

                                      -57-
<Page>

or in any way connected with this Agreement or any claim of injury or damage,
and/or statutory remedy.

     SECTION 10.17. GENERAL INDEMNITY/LIABILITY

     A.   The Members acknowledge and agree that the terms and conditions of
this Section 10.17 shall not limit or vitiate in any manner whatsoever, the
indemnification obligations of the Members and/or their Affiliates under the
Indemnification Agreement.

     B.   Each Member hereby covenants and agrees to indemnify and hold harmless
the Company, the other Members and their Affiliates from and against any and all
expenses (including reasonable attorneys' fees), losses, damages, liabilities,
charges and claims of any kind or nature whatsoever (collectively "INDEMNIFIED
LOSSES") arising out of or resulting from any fraudulent act, negligence,
willful misconduct or breach or default of the covenants and provisions of this
Agreement, by such Member.

     C.   If any third party shall notify any party hereto, or such party's
Affiliate (the "INDEMNIFIED PARTY") with respect to any matter (a "THIRD PARTY
CLAIM") which may give rise to a claim for indemnification against any other
party hereto (the "INDEMNIFYING PARTY") under this Section 10.17, then the
Indemnified Party shall promptly (and in any event within five (5) Business Days
after receiving notice of the Third Party Claim) notify each Indemnifying Party
thereof in writing; PROVIDED, HOWEVER, that the failure to so notify the
Indemnifying Party shall not affect the rights to indemnification hereunder
except to the extent that the Indemnifying Party is actually prejudiced by such
failure.

     D.   Any Indemnifying Party will have the right at any time to assume and
thereafter conduct the defense of the Third Party Claim with counsel of his or
its choice reasonably satisfactory to the Indemnified Party; PROVIDED, HOWEVER,
that the Indemnifying Party will not consent to the entry of any judgment or
enter into any settlement with respect to the Third Party Claim without the
prior written consent of the Indemnified Party (not to be withheld or delayed
unreasonably) unless the judgment or proposed settlement involves only the
payment of money damages and does not impose an injunction or other equitable
relief upon the Indemnified Party; PROVIDED, FURTHER, that the Indemnifying
Party will not consent to the entry of any judgment or enter into any settlement
with respect to the Third Party Claim unless and until the Indemnifying Party
obtains for the benefit of the Indemnified Party, as part of such judgment or
settlement, a complete and absolute release of any liabilities from the third
party making such Third Party Claim.

     E.   Unless and until an Indemnifying Party assumes the defense of the
Third Party Claim as provided in Section 10.17.D hereof, however, the
Indemnified Party may defend against the Third Party Claim in any manner it
reasonably may deem appropriate; PROVIDED, HOWEVER, that any cost and expense
incurred by the Indemnified Party in connection with such defense shall be paid
for and advanced directly by the Indemnifying Party in immediately available
funds.

                                      -58-
<Page>

     F.   In no event will the Indemnified Party consent to the entry of any
judgment or enter into any settlement with respect to the Third Party Claim
without the prior written consent of each of the Indemnifying Parties (not to be
withheld or delayed unreasonably).

                            [SIGNATURES ON NEXT PAGE]

                                      -59-
<Page>

          IN WITNESS WHEREOF, the parties hereto have duly executed this Amended
and Restated Limited Liability Company Agreement of TOWSON CIRCLE HOLDING LLC
under seal as of the day and year first above written.

                                   CORDISH TC LLC

                                   By:/s/ Charles F. Jacobs
                                      ---------------------------(Seal)
                                      Charles F. Jacobs, authorized person

                                   INLAND TOWSON HC L.L.C.

                                   By: Inland Western Retail Real Estate Trust,
                                       Inc., sole member

                                       By:/s/ [ILLEGIBLE]
                                          ---------------------------(Seal)
                                          [ILLEGIBLE]
                                          ----------------,
                                          [ILLEGIBLE]

                                      -60-
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

 Names, Addresses, Initial Capital Account Balances and Percentage Interests of
                                     Members

                                 SCHEDULE A

<Table>
<Caption>
                                            INITIAL ADJUSTED     INITIAL CAPITAL
                                                CAPITAL              ACCOUNT         PERCENTAGE
NAME AND ADDRESS                                BALANCE              BALANCE          INTEREST
-----------------------------------------------------------------------------------------------
<S>                                         <C>                  <C>                    <C>
Cordish TC, LLC                             $      6,187,181     $     6,187,181              5%
601 East Pratt Street
Suite 600
Baltimore, MD 21202

Inland Towson HC L.L.C.                     $     28,450,000     $    28,450,000             95%
c/o Inland Western Retail Real
Estate Trust, Inc.
2901 Butterfield Road
Oak Brook, Illinois 60523
-----------------------------------------------------------------------------------------------
          TOTALS                            $     34,637,181     $    34,637,181        100.000%
===============================================================================================
</Table>

                                      -61-
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC
                             Regulatory Allocations

                                  SCHEDULE 5.2

1.   DEFINITIONS.

     The defined terms used in this SCHEDULE 5.2 shall have meanings specified
in the Limited Liability Company Agreement to which this SCHEDULE 5.2 is
attached:

2.   REGULATORY ALLOCATIONS.

     A.   Prior to any other allocations under Article V, the following special
allocations shall be made in the following order:

          1.   MINIMUM GAIN CHARGEBACK. Except as otherwise provided in Section
     1.704-2(f) of the Treasury Regulations, notwithstanding any other provision
     of Section 5.2, if there is a net decrease in Company Minimum Gain during
     any fiscal year, each Member shall be specially allocated items of Company
     income and gain for such fiscal year (and, if necessary, subsequent fiscal
     years) in an amount equal to such Member's share of the net decrease in
     Company Minimum Gain, determined in accordance with Treasury Regulations
     Section 1.704-2(g). Allocations pursuant to the previous sentence shall be
     made in proportion to the respective amounts required to be allocated to
     each Member pursuant thereto. The items to be so allocated shall be
     determined in accordance with sections 1.704-2(f)(6) and 1.704-2(j)(2) of
     the Treasury Regulations. This Paragraph A.1 is intended to comply with the
     minimum gain charge back requirement in Section 1.704-2(f) of the Treasury
     Regulations and shall be interpreted consistently therewith.

          2.   MEMBER MINIMUM GAIN CHARGEBACK. Except as otherwise provided in
     Section 1.704-2(i)(4) of the Treasury Regulations, notwithstanding any
     other provision of Section 5.2, if there is a net decrease in Member
     Nonrecourse Debt Minimum Gain attributable to a Member Nonrecourse Debt
     during any fiscal year, each Member who has a share of the Member
     Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse Debt,
     determined in accordance with Section 1.704-2(i)(5) of the Treasury
     Regulations, shall be specially allocated items of Company income and gain
     for such fiscal year (and, if necessary, subsequent fiscal years) in an
     amount equal to such Member's share of the net decrease in Member
     Nonrecourse Debt, determined in accordance with Treasury Regulations
     Section 1.704-2(i)(4). Allocations pursuant to the previous sentence shall
     be made in proportion to the respective amounts required to be allocated to
     each Member pursuant thereto. The items to be so allocated shall be
     determined in accordance with Sections 1.704-2(i)(4) and 1.704-2(j)(2) of
     the Treasury Regulations. This Paragraph A.2 is intended to comply with the
     minimum gain charge

                                      -62-
<Page>

     back requirement in Section 1.704-2(i) (4) of the Treasury Regulations and
     shall be interpreted consistently therewith.

          3.   QUALIFIED INCOME OFFSET. Any Member who unexpectedly receives any
     adjustment,  allocation,  or distribution  described in Treasury Regulation
     Section 1.704-1(b)(2)(ii)(d)(5) or (6) shall be specially allocated items
     of  income  and gain  (consisting  of a PRO RATA  portion  of each  item of
     Company income, including gross income and gain for such year) in an amount
     and manner  sufficient  to eliminate  any deficit  balance in such Member's
     Capital  Account  resulting  therefrom,   as  quickly  as  possible,   such
     allocations  to be made in accordance  with the  "qualified  income offset"
     provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(3).

          4.   GROSS INCOME ALLOCATION. In the event any member has a deficit
     Capital Account at the end of any fiscal year which is in excess of the
     amount such Member is obligated to restore pursuant to the penultimate
     sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5),
     each such Member shall be specifically allocated items of Company income
     and gain in the amount of such excess as quickly as possible, provided that
     an allocation pursuant to this Paragraph A.4 shall be made only if and to
     the extent that such Member would have a deficit Capital Account in excess
     of such amount after all other allocations provided for in Article V have
     been made as if this Paragraph A.4 were not in the Agreement.

          5.   MEMBER NONRECOURSE DEDUCTIONS. Any Member Nonrecourse Deductions
     for any fiscal year shall be specially allocated to the Member who bears
     the economic risk of loss with respect to the Member Nonrecourse Debt to
     which such Member Nonrecourse Deductions are attributable in accordance
     with Treasury Regulations Section 1.704-2(i)(1).

     B.   SECTION 754 ADJUSTMENTS. To the extent an adjustment to the adjusted
tax basis of any Company asset, pursuant to Code Section 734(b) or Code Section
743(b) is required, pursuant to Treasury Regulations Section
1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into account in
determining Capital Accounts as the result of a distribution to a Member in
complete liquidation of such Member's interest in the Company, the amount of
such adjustment to Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated to the
Members in accordance with their interests in the Company in the event Treasury
Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom
such distribution was made in the event Treasury Regulations Section
1.704-1(b)(2)(iv)(m)(4) applies.

                                      -63-
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                        DESCRIPTION OF EXISTING PROPERTY
                                AND OWNER ENTITY

                                    EXHIBIT A

A.   OWNER ENTITY:   Towson Circle LLC, a Maryland limited liability company
     (formerly known as Towson Circle Joint Venture)

B.   DESCRIPTION OF EXISTING PROPERTY: (See Attached).

                                       A-1
<Page>

                       TOWSON CIRCLE PROPERTY DESCRIPTIONS

SOUTH SIDE OF JOPPA ROAD
EAST OF DULANEY VALLEY ROAD

   Being known as Condominium Unit No. 1, as more particularly described and
subject to and with the benefit of that certain Amended and Restated Declaration
and By-Laws for Towson Circle South Condominium, recorded in Liber S.M. 12568
folio 105, and as shown on the plat entitled "Amended Plat Towson Circle South
Condominium", which plat is recorded in Condominium Plat Book S.M. 21, Folio 31,
32, 33 and 34, together with an undivided 55+/- interest in the common elements
and in the common expenses and common profits of the Towson Circle South
Condominium.
   Togrther with and subject to the benefit of certain provisions as set
forth in a Declaration Governing Access and Parking dated December 28, 1990,
and recorded in Liber S.M. 8682 folio 729 between Towson Town Center
Associates and Joppa Associates.

2.197 ACRE PARCEL
NORTH SIDE OF JOPPD.ROAD
EAST SIDE OF DULANEY VALLEY ROAD
9TH ELECTION DISTRICT, BALTIMORE COUNTY; MARYLAND

     Beginning ,for the same at the intersection of the north side of Joppa Road
with the east side of Dulaney Valley Road at the point designated "HW 13" as
shown on the plot dated., August 20, 1992, entitled "Amended Plat 1 of 3 Towson
Town Center" and recorded among the Land Records of Baltimore County, Maryland
in Plat Book S.M. 65, Folio 26, at a cross-cut set in the concrete walk, thence
leaving said point of beginning and binding on the east side of Dulaney Valley
Road and binding an the outlines of Joppa Development Parcel 1 shown on said
plat, referring all courses of this description to the Grid Meridian established
in the Baltimore County Metropolitan District, the two following courses and
distances, viz: (1) North 43 degrees 23 minutes 48.seconds West 33.36 feet, and
thence (2) North 11 degrees 14 minutes 03 seconds East 171.84 feet, thence
leaving Dulaney Valley Road and continuing to bind on the outlines of Joppa
Development, Parcel 1 as shown on said plat, the eight following courses and
distances, viz: (3) South 83 degrees 28 minutes 29 seconds East 286.10 feet,
thence (4) North 06 degrees 31 minutes 31 seconds East 177.66 feet, thence (5)
North 84 degrees 39 minutes 34 seconds East 75.25 feet, thence (6) South 05
degrees 20 minutes 26 seconds East 27.58 feet, thence (7) South 31 degrees 54
minutes 20 seconds East 41.19 feet, thence (8) South 68 degrees 46 minutes 32
seconds East 41.49 feet, thence (9) South 03 degrees 40 minutes 16 seconds East
185,45 feet, and thence (10) South 41 degrees 19 minutes 44 seconds West 71.36
feet, to the proposed northern most right-of-way line of Joppa Road as shown on
the hereinmentioned plat, at a cross-cut set in the concrete walk, thence
binding on said proposed north side of Joppa Road and continuing to bind on the
outlines of Joppa Development Parcel 1 as shown on said plat, the two following
courses and distances, viz: (11) Southwesterly by a line curving to the right
having a radius of 5687.30 feet for a distance of 9.78 feet, (the arc of said
curve being subtended by a chord bearing South 86 degrees 09 minute's 33 seconds
West 9.78 feet), and thence (12) South 86 degrees 12 minutes 29 seconds West
408.81 feet to the point of beginning; containing 2.197 acres of land, more or
less; as surveyed by Daft-McCune-Walker, Inc., in August, 1992.

                                                                               1
<Page>

    Being all of the second described parcel of land which by deed dated June
30, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12292, Folio 539, was conveyed by Joppa Associates to Towson Circle
Joint Venture LLP.

     Being also all of the parcel of land designated Joppa Development Parcel 1
as shown on the plot dated August 20, 1992, entitled "Amended Plat 1 of 3 Towson
Town Center" and recorded among the Land Records of Baltimore County, Maryland
in Plat Book, S.M. 65, Folio 26.

0.121 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same at a point situate on the east side of Delaware
Avenue at a 1/2-inch diameter pipe found at the end of the following course and
distance measured from the intersection of the East side of Delaware Avenue with
the South side of Shealy Avenue at a 1-inch diameter iron pipe found at the end
of the first or North 0l degree West 37 foot line of the first described parcel
of land which by deed dated March 28, 1983, and recorded among the Land Records
of Baltimore County, Maryland, in Liber E.H.K., Jr. 6509, Folio 440, was
conveyed by Richard M. Kremen to Paul S. Brody, South 08 degrees 26 minutes 54
seconds East 110.50 feet, thence leaving said point of beginning and binding on
the Past side of Delaware Avenue and running reversely with and binding on the
first or South 03 degrees East 25 foot line of the parcel of land which by deed
dated May 11, 1984, and record and among the Land Records of Baltimore County,
Maryland, in Liber E.H.K., Jr. 6714. Folio 676, was conveyed by Mercantile-Safe
Deposit and Trust Company to Baltimore County Revenue Authority, referring all
courses of this description to the Grid Meridian established in the Baltimore
County Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West
25.00 feet, thence running reversely with and binding an the last, third and
second lines of the second hereinmentioned deed the three following courses and
distances, viz: (2) North 87 degrees 30 minutes 48 seconds East 208.25 feet,
thence (3) South 07 degrees 40 minutes 00 seconds West 27.18 feet, and thence
(4) South 88 degrees 03 minutes 06 seconds West 240.87 feet to the point of
beginning, containing 0.121 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July 1947. The improvements thereon also being
known as #506 Delaware Avenue.

     Being all the parcel of land which by deed dated August 11, 1997, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
12321, Folio 463, was conveyed by Baltimore County Revenue Authority to Heritage
Properties, Inc. December 17, 1998

0.293 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE

                                                                               2
<Page>

9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same an the east side of Delaware Avenue at the end of
the following course and distance measured from a 1-inch diameter iron pipe
found at the intersection of the east side of Delaware Avenue with the south
side of Shealy Avenue, said point also being at the end of the first or South 03
degrees East 49 foot 6 inch line of the land which by deed dated November 28,
1988, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 8369, Folio 283, was conveyed 6y Edward C. Covahey, Jr., to
Paul S. Brady, South 08 degrees 26 minutes 54 seconds East 86.50 feet, thence
leaving said point of beginning and binding on the east side of Delaware Avenue
and running reversely with and binding on the said first line, referring all
courses of this description to the Grid Meridian established in the Baltimore
County Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West
49.50 feet, thence running reversely with and binding on the last line of the
hereinmentioned deed (2) North 82 degrees 31 minutes 59 seconds East 226.59 feet
to the 1-inch diameter iron pipe found, thence running reversely with and
binding on the third or North 11 degrees East 70 foot, more or less, line and
the second or South 88 degrees East 210 foot tine of the hereinmentioned deed,
the two following courses and distances, viz: (3) South 07 degrees 40 minutes 00
seconds West 70.00 feet, and thence (4) South 87 degrees 30 minutes 48 seconds
West 208.25 feet to the point of beginning; containing 0.293 acres of land, more
or less, as surveyed by Daft-McCune-Walker, inc., in July, 1997. The unimproved
lot also being known as #510 Delaware Avenue.

     Being all of the land which by deed dated November 29, 1988, and recorded
among the Land Records of Baltimore County, Maryland, in Liber S.M. 8369, Folio
283, was conveyed by Edward C. Covahey, Jr., to Paul S. Brody. August 1, 1997.

0.247 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH SIDE OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the east side of Delaware
Avenue with the south side of Shealy Avenue at a 1-inch diameter iron pipe
found, said point also being at the beginning of the second or North 89 degrees
29 minutes East 281.10 foot line of the first described parcel of land which by
deed dated March 28, 1983, and recorded among the Land Records of Baltimore
County, Maryland, in Liber E.H.K., Jr. 6509, Folio 440, was conveyed by
Richard , M. Kremen to Paul S. Brody, thence leaving said point of beginning and
binding on the south side of Shealy Avenue and running with and binding on said
second line, referring all courses of this description to the Grid Meridian
established in the Baltimore County Metropolitan District (1) North 82 degrees
40 minutes 04 seconds East

                                                                               3
<Page>

280.70 feet to a 1-inch square iron bar found in the iron fence erected around
the Shealy Family Burying Ground, thence running with. and binding on the third
line of the hereinmentioned deed and along said Burying Ground (2) South 08
degrees 43 minutes 14 seconds East 39.82 feet to a point in the second or South
87 1/4 degree West 81 foot line of the second described parcel of land, which by
deed dated March 23, 1978, and recorded among the Land Records of Baltimore
County, Maryland, in Liber E.H.K., Jr. 5866, Folio 868, was conveyed by Towson
Associates to G.B. Stumpp Associates, Incorporated, thence running with and
binding on part of said second line and running with and binding on the fourth
or South 89 degrees 15 minutes West 54.54 foot line of the first hereinmentioned
deed, (3) South 82 degrees 45 minutes 15 seconds West 54.34 feet to a 1-inch
diameter iron pipe found, thence running with and binding on the last line of
the first hereinmentioned deed (4) South 82 degrees 31 minutes 59 seconds West
226.59 feet to the east side of Delaware Avenue, thence binding thereon (5)
North 08 degrees 26 minutes 54 seconds West 37.00 feet to the point of
beginning; containing 0.247 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July, 199. The improvements also being known as
#512 Delaware Avenue and also known as 100-102 Shealy Avenue.

     Being all of the first described parcel of land which by deed dated March
31, 1997, and recorded among Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998.

 0.076 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH SIDE OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the west side of Virginia
Avenue with the south side of Shealy Avenue at a cross cut found. in the
concrete curb, said point being at the end of the first or North 05 degrees 17
minutes 11 seconds West 39.50 foot line of the land which by deed dated
September 19, 1990, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 8621, Folio 591, was conveyed by George B. Stumpp to
Shealy-Virginia Limited Partnership, thence leaving said point of beginning and
running reversely with and binding on said first line and binding on the west
side of Virginia Avenue, referring all courses of this description to the Grid
Meridian established in the Baltimore County Metropolitan District, (1) South 05
degrees 13 minutes 24 seconds East 39.50 Feet to a limestone with a cross cut
found at the beginning of the heretoforementioned first line, thence running
reversely with and binding on the last line of the first hereinmentioned deed
and running with and binding on a portion of the first or South 81 degrees 12
minutes 49 seconds West 94.40 foot line of the land which by deed dated
September 19, 1940, and recorded among the Land Records of Baltimore County,
Maryland in Liber S.M. 8614, Folio 641, was conveyed by G.B. Stumpp Associates,
Incorporated, to Shealy-Virginia Limited Partnership (2) South 81 degrees 18
minutes 35 seconds West 82.51 feet to the end of the third or South 12 degrees
02 minutes 31 seconds East 39.00 foot line of the first hereinmentioned deed,

                                                                               4
<Page>

said point being the southwest corner of the Shealy Family Burying Ground,
thence binding along said Burying ground and running reversely with and binding
on said third line (3) North 11 degrees 58 minutes 44 seconds West 38.95 feet to
the south side of Shealy Avenue and to a Rebar and Cap found marked "Property
Corner P3," thence binding on the south side of Shealy Avenue and running
reversely with and binding on the second line of the first hereinmentioned
deed , (4) North 80 degrees 57 minutes 28 seconds East 87.13 feet to the point
of beginning; containing 0.076 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July, 1997, The unimproved lot being also known as
#513 Virginia Avenue.

     Being all of the first described parcel of land which by deed dated March
..31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 122, was conveyed by Shealy-Virginia Limited Partnership
to Heritage Properties, Inc. December 23, 1998

0.111 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same on the west side of Virginia Avenue at a limestone
with a cross cut found at the beginning of the second described parcel of land,
which by deed dated March 23, 1478, and recorded among the Land Records of
Baltimore County, Maryland, in Liber E.H.K., Jr. 5866, Folio 868, was conveyed
by Towson Associates to G.B. Stumpp Associates, Incorporated, thence leaving
said point of beginning and binding on the west side of Virginia Avenue and
running reversely with and binding on the last tine oEURO the second described
parcel of the hereinmentioned deed, referring all courses of this description to
the Grid Meridian established in the Baltimore County Metropolitan District, (1)
South 11 degrees 52 minutes 26 seconds West 59.69 feet, thence running reversely
with and binding on the third or South 72 1/2 degree East 164.2 foot line of the
second described parcel of the hereinmentioned deed (2) North 78 degrees 07
minutes 32 seconds West 164.90 feet to a 1-inch diameter iron pipe found, thence
running reversely with and binding on the second or South 87 1/4 degree West 81
foot line of the second described parcel of the hereinmentioned deed (3) North
82 degrees 45 minutes 15 seconds East 81.04 feet to a limestone found, thence
running with and binding on the first or South 87 1/2 degree West 44 foot line
of the second described parcel of the hereinmentioned deed, (4) North 81 degrees
18 minutes 35 seconds East 99.35 feet to the point of beginning; containing
0.111 acres of land, more or less, as surveyed by Daft-McCune-Walker, Inc., in
July, 1997. the unimproved lot also being known as #509-511 Virginia Avenue.

     Being all that second described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber 5M 12107, Folio 122, was conveyed by Shealy-Virginia United Partnership to
Heritage Properties, Inc. December 23, 1998

                                                                               5
<Page>

0.260 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at a point situate on the west side of Virginia
Avenue the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning of
that parcel of land which by deed dated September 19, 1990, and recorded among
the Land Records of Baltimore County, Maryland, in Liber S.M. 8614, Folio 646,
was conveyed by G.B. Stumpp Associates, Incorporated, to Shealy-Virginia Limited
Partnership South 11 degrees 52 minutes 56 seconds West 59.69 feet, said point
also being the end of the first or North 14 degrees East 70 foot line of the
third described parcel of land which by deed dated February 1, 1977, and
recorded among the Land Records of Baltimore County, Maryland, in Liber E.H.K.,
Jr. 5722, Folio 295, was conveyed by University National Bank, David W. Irey,
and Theodore Coleman to Paul S. Brody, thence leaving said point of beginning
and running reversely with and binding on said first line, and binding on the
west side of Virginia Avenue, and referring all courses of this description to
the Grid Meridian established in the Baltimore County Metropolitan District (I)
South 11 degrees 52 minutes 56 seconds West 69.81 feet, thence running reversely
with and binding an the last line of the third described parcel of the second
hereinmentioned deed and running reversely with and binding on the second line
of the first described parcel of the second hereinmentioned deed (2) North 78
degrees 07 minutes 32 second, West 159.76 feet, thence running reversely with
and binding on the third line of the third described parcel of the second
hereinmentioned deed (3) North 07 degrees 40 minutes 00 seconds East 70.00 feet
to a 1-inch diameter iron pipe found at the end of the second or North 75
degrees West 158 foot, more or less, line of the third described parcel of the
second hereinmentioned deed, thence running reversely with and binding on the
second line of the third described parcel of the second hereinmentioned deed and
running with and binding an the Fourth or South 75 degrees East 158 foot line of
the first hereinmentioned deed (4) South 78 degrees 07 minutes 32 seconds East
16-3.90 feet to the point of beginning; containing 0.260 acres of land, more or
less, as surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot
also being known as #505-507 Virginia Avenue.

     Being all of the fourth described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties. Inc. December 17, 1998

0.252 ACRE PARCEL

                                                                               6
<Page>

WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at a point situtate on the west side of Virginia
Avenue at the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning
point of that parcel of land which by deed dated September 19, 1990, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
8614, Folio 646, was conveyed by G.B. Stumpp Associates, Incorporated, to
Shealy-Virginia Limited Partnership, South 11 degrees 52 minutes 56 seconds West
129.50 feet, said point also being the end of the first or North 14 degrees East
70 foot line of that first described parcel of land which by deed dated February
1, 1977, and recorded among the Land Records of Baltimore County, Maryland, in
Liber E.H.K., Jr. 5722, Folio 295, was conveyed by University National Bank,
David W. Irey, and Theodore Coleman to Paul S. Brody, thence leaving said point
of beginning and running reversely with and binding on said first line and
binding on the west side of Virginia Avenue, referring all courses of this
description to the Grid Meridian established in the Baltimore County
Metropolitan District, (1) South 11 degrees 52 minutes 56 seconds West 69.81
feet, thence running reversely with and binding on the last, third, and second
lines of the first described parcel of the second herinmentioned deed, the three
following courses and distances, viz: (2) North 79 degrees 07 minutes 32 second
West 154.61 feet, thence (3) North 07 degrees 40 minutes 00 seconds East 70.00
feet, and thence (4) South 78 degrees 07 minutes 32 seconds East 159.76 feet to
the point of beginning; containing 0.252 acres of land, more or less, as
surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot also
being known as #503 Viriginia Avenue.

     Being all the third described parcel of land which by deed datrd March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland,
in Liber SAQ 1210.', Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998

LEASEHOLD PARCELS
PENN-DEL PROPERTY DESCRIPTIONS:

    DESCRIPTION PENN-DEL, L.L.C. 0.250 ACRE PARCEL NORTH SIDE OF PENNSYLVANIA
 AVENUE WEST SIDE OF VIRGINIA AVENUE NINTH ELECTION DISTRICT, BALTIMORE COUNTY,
                                    MARYLAND.

Beginning for the same at the point formed by the intersection of the north side
of Pennsylvania Avenue and the west side of Virginia Avenue, said point being at
the beginning of the third described parcel of land which, by deed dated
December 14, 1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to
Penn-Del, L.L.C., thence running reversely with and binding on the last line of
the third described parcel of the hereinmentioned deed and binding on the north
side of Pennsylvania Avenue, referring

                                                                               7
<Page>

all courses of this description to the Grid Meridian established by the
Baltimore County Metropolitan District, (1) North 83 degrees 38 minutes 38
seconds West 105.18 feet. to a 3/4-inch iron pipe found, thence running
reversely with and binding on the third and second lines of the third described
parcel of the hereinmentioned deed, the two following courses and distances,
viz: (2) North 07 degrees 35 minutes 00 seconds East 105.92 feet, passing over a
1-inch iron pipe found at 100.70 feet, and thence (3) South 78 degrees 07
minutes 32, seconds East 112.60 feet to a 3/4 inch iron pin with a 2 inch
aluminum cap marked "Daft-McCune-Walker, Inc. Property Marker C-99" found on the
west side of Virginia Avenue, thence binding on the west side of Virginia Avenue
and running reversely with and binding on the first line of the third described
parcel of the hereinmentioned deed, (4) South 11 degrees 52 minutes 56 seconds
West 95.01 feet to the point of beginning; containing 0.250 acres of land, more
or less, as surveyed by Daft-McCune-Walker, Inc., in October, 2001.

     Being all of the third described parcel of land which, by deed dated
December 14, 1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to
Penn-Del; L.L.C.

     The lot also being known as #119 East Pennsylvania Avenue. May 30, 2002.

DESCRIPTION PENN-DEL, LLC. 0.261 ACRE PARCEL NORTH SIDE OF PENNSYLVANIA AVENUE
EAST SIDE OF DELAWARE AVENUE NINTH ELECTION DISTRICT, BALTIMORE COUNTY,
MARYLAND.

   Beginning for the same at the point formed by the intersection of the east
side of Delaware Avenue with the north side of Pennsylvania Avenue, at a
1/2-inch iron pipe found, at the end of the first or South 80 degrees 60-foot
line of the first described parcel of land which, by deed dated December 14,
1998, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to Penn-Del, L.L.C.,
thence running reversely with and binding on said first line of the first
described parcel of the hereinmentioned deed and binding on the east side of
Delaware Avenue, referring all courses of this description to the Grid Meridian
established by the Baltimore County Metropolitan District, (1) North 08 degrees
26 minutes 54 seconds West 60.00 feet to a 1-inch iron pipe found, thence
running reversely with and binding on the last line of the first described
parcel of the hereinmentioned deed, (2) South 89 degrees 15 minutes 39 seconds
East 179.28 feet to a 1-inch iron pipe found, thence running reversely with and
binding on the third or North il degrees West 68-foot line of the
hereinmentioned deed, (3) South 07 degrees 40 minutes 00 seconds West 74.91 feet
to the north side of Pennsylvania Avenue at a cross-cut found in the concrete
walk; thence binding on the north side of Pennsylvania Avenue, (4) North 83
degrees 52 minutes 44 seconds West 161.37 feet to the point of beginning;
containing 0.261 acres of land, more or less, as surveyed by Daft-McCune-Walker,
Inc., in October 2001.

   Being all of the first described parcel of land which, by deed dated December
14, 1998, and recorded among the Land Records of Baltimore County, Maryland, in
Liber, S.M. 13383, Folio 551, was conveyed by Paul S. Brody to Penn-Del, L.L.C.

   The lot also being known as #101 East Pennsylvania Avenue May 29,2002.

                                                                               8
<Page>

DESCRIPTION PENN-DEL, L.L.C. 0.332 ACRE PARCEL EAST SIDE OF DELAWARE AVENUE
NORTH OF PENNSYLVANIA AVENUE NINTH ELECTION DISTRICT, BALTIMORE COUNTY,
MARYLAND.

     Beginning for the same on the east side of Delaware Avenue, at the end of
the first or South 2.75 degrees East 72 feet 4-inch line of the second described
parcel of land which, by deed dated December 14, 1998, and recorded among the
Land Records of Baltimore County, Maryland, in Liber S.M. 13383, Folio 551, was
conveyed by Paul S. Brody to Penn-Del, L.L.C., at a 1-inch iron pipe found,
thence binding on the east side of Delaware Avenue and running reversely with
and binding on said first line, referring all courses of this description to the
Grid Meridian established by the Baltimore County Metropolitan District, (1)
North OS degrees 26 minutes 54 seconds West 72.35 feet to a 1/2-inch iron pipe
found, thence running reversely with and binding on the last line of the second
described parcel of the herinmentioned deed, (2) North 88 degrees 03 minutes 06
seconds West 200.87 feet, thence running reversely with and binding on the third
line of the second described parcel of the hereinmentioned deed, (3) South 07
degrees 40 minutes 00 seconds West 81,44 feet, passing over a 3/4-inch iron bar
with a cap marked "GWS Prop. Mark" found at 42.83 feet, to a 1-inch iron pipe
found, thence running reversely with and binding on the second line of the
second described parcel of the hereinmentioned deed, (4) North 89 degrees 15
minutes 39 seconds West 179,28feet to the point of beginning; containing 0,332
acres of land, more or less, as surveyed by Daft-McCune-Walker, Inc., in
October, 2001.

     Being all of the second described parcel of land which, by deed dated
December 14,1998, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 13383, Folio 551, was conveyed by Paul S. Brody to
PennDel, L.L.C.

     The lot also being known as #504 Delaware Avenue. May 30, 2002.

DESCRIPTION ROBERT M. COOK, JR. 0.103 ACRE PARCEL NORTH SIDE OF PENNSYLVANIA
AVENUE EAST OF DELAWARE AVENUE NINTH ELECTION DISTRICT, BALTIMORE COUNTY,
MARYLAND

     Beginning for the same at the end of the first or South 75 degrees 33
minutes 42 seconds East 42-foot line of the land which, by deed dated December
30, 1988, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 8127, Folio 430, was conveyed by Maiol Enterprises, Ltd., to Robert
M. Cook, Jr., said point being on the north side of Pennsylvania Avenue
(variable width), at a 3/4-inch iron pipe found, thence binding on the north
side of Pennsylvania Avenue and running reversely with and binding on said first
line, referring all courses of this description to the Grid Meridian established
in the Baltimore County Metropolitan District, (1) North 83 degrees 38 minutes
38 seconds West 42,07 feet to a point North 07 degrees 40 minutes 00 seconds
East 4.06 feet from a cross-cut found in the concrete sidewalk, thence running
reversely with and binding on the last and fourth lines of the hereinmentioned
deed, in all (2) North 07 degrees 40 minutes 00 seconds East 109.47 feet,
passing over a l-inch iron pipe found at 70.86 feet to a 3/4inch iron bar with
a cap marked "GWS Prop. Mark" found, thence running reversely with and binding
on the third or North 68

                                                                               9
<Page>

degrees 41 minutes 00 seconds West 42 foot line of the hereinmentioned deed, (3)
South 78 degrees 07 minutes 32 seconds East 42.01 feet, thence running reversely
with and binding on the second or North 15 degrees 45 minutes East 100-foot line
of the hereinmentioned deed, (4) South 07 degrees 35 minutes 00 seconds East
105.42 feet, passing over a 1-inch iron pipe found at 4.72 feet, to the point
of beginning; containing 0.703 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in December 2001.

     Being all of the land which, by deed dated December 30, 1988, and recorded
among the Land Records of Baltimore County, Maryland, in Liber S.M. 8127, Folio
430, was conveyed by Maiol Enterprises, Ltd., to Robert M. Cook, Jr.

   The lot also being known as #109 East Pennsylvania Avenue. May 29,2002.

                                                                              10
<Page>

                                  TOWSON CIRCLE
                                 RESERVED PARCEL
                              PROPERTY DESCRIPTIONS

0.121 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same at a point situate on the east side of Delaware
Avenue at a 1/2-inch diameter pipe found at the end of the following course and
distance measured from the intersection of the East side of Delaware Avenue with
the South side of Shealy Avenue at a 1-inch diameter iron pipe found at the end
of the first or North 0l degree West 37 foot line of the first described parcel
of land which by deed dated March 28, 1983, and recorded among the Land Records
of Baltimore County, Maryland, in Liber E.H.K., Jr. 6509, Folio 440, was
conveyed by Richard M. Kremen to Paul S. Brody, South 08 degrees 26 minutes 54
seconds East 110.50 feet, thence leaving said point of beginning and binding on
the Past side of Delaware Avenue and running reversely with and binding on the
first or South 03 degrees East 25 foot line of the parcel of land which by deed
dated May 11, 1984, and record and among the Land Records of Baltimore County,
Maryland, in Liber E.H.K., Jr. 6714. Folio 676, was conveyed by Mercantile-Safe
Deposit and Trust Company to Baltimore County Revenue Authority, referring all
courses of this description to the Grid Meridian established in the Baltimore
County Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West
25.00 feet, thence running reversely with and binding an the last, third and
second lines of the second hereinmentioned deed the three following courses and
distances, viz: (2) North 87 degrees 30 minutes 48 seconds East 208.25 feet,
thence (3) South 07 degrees 40 minutes 00 seconds West 27.18 feet, and thence
(4) South 88 degrees 03 minutes 06 seconds West 240.87 feet to the point of
beginning, containing 0.121 acres of land, more or less, as surveyed by
Daft-McCune-Walker, Inc., in July 1947. The improvements thereon also being
known as #506 Delaware Avenue.

     Being all the parcel of land which by deed dated August 11, 1997, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
12321, Folio 463, was conveyed by Baltimore County Revenue Authority to Heritage
Properties, Inc. December 17,1998

0.293 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same an the east side of Delaware Avenue at the end of
the following course and distance measured from a 1-inch diameter iron pipe
found at the

                                                                               1
<Page>

intersection of the east side of Delaware Avenue with the south side of Shealy
Avenue, said point also being at the end of the first or South 03 degrees East
49 foot 6 inch line of the land which by deed dated November 28, 1988, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
8369, Folio 283, was conveyed 6y Edward C. Covahey, Jr., to Paul S. Brady, South
08 degrees 26 minutes 54 seconds East 86.50 feet, thence leaving said point of
beginning and binding on the east side of Delaware Avenue and running reversely
with and binding on the said first line, referring all courses of this
description to the Grid Meridian established in the Baltimore County
Metropolitan District (1) North 08 degrees 26 minutes 54 seconds West 49.50
feet, thence running reversely with and binding on the last line of the
hereinmentioned deed (2) North 82 degrees 31 minutes 59 seconds East 226.59 feet
to the 1-inch diameter iron pipe found, thence running reversely with and
binding on the third or North 11 degrees East 70 foot, more or less, line and
the second or South 88 degrees East 210 foot tine of the hereinmentioned deed,
the two following courses and distances, viz: (3) South 07 degrees 40 minutes 00
seconds West 70.00 feet, and thence (4) South 87 degrees 30 minutes 48 seconds
West 208.25 feet to the point of beginning; containing 0.293 acres of land, more
or less, as surveyed by Daft-McCune-Walker, inc., in July, 1997. The unimproved
lot also being known as #510 Delaware Avenue.

     Being all of the land which by deed dated November 29, 1988, and recorded
among the Land Records of Baltimore County, Maryland, in Liber S.M. 8369, Folio
283, was conveyed by Edward C. Covahey, Jr., to Paul S. Brody. August 1, 1997.

0.247 ACRE PARCEL
EAST SIDE OF DELAWARE AVENUE
SOUTH SIDE OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the east side of Delaware
Avenue with the south side of Shealy Avenue at a 1-inch diameter iron pipe
found, said point also being at the beginning of the second or North 89 degrees
29 minutes East 281.10 foot line of the first described parcel of land which by
deed dated March 28,1983, and recorded among the Land Records of Baltimore
County, Maryland, in Liber E.H.K., Jr. 6509, Folio 440, was conveyed by
Richard , M. Kremen to Paul S. Brody, thence leaving said point of beginning and
binding on the south side of Shealy Avenue and running with and binding on said
second line, referring all courses of this description to the Grid Meridian.
established in the Baltimore County Metropolitan District (1) North 82 degrees
40 minutes 04 seconds East 280.70 feet to a 1-inch square iron bar found in the
iron fence erected around the Shealy Family Burying Ground, thence running with
and binding on the third line of the hereinmentioned deed and along said Burying
Ground (2) South 08 degrees 43 minutes 14 seconds East 39.82 feet to a point in
the second or South 87 1/4 degree West 81 foot

                                                                               2
<Page>

line of the second described parcel of land, which by deed dated March 23,1978,
and recorded among the Land Records of Baltimore County, Maryland, in Liber
E.H.K., Jr. 5866, Folio 868, was conveyed by Towson Associates to G.B. Stumpp
Associates, Incorporated, thence running with and binding on part of said second
line and running with and binding on the fourth or South 89 degrees 15 minutes
West 54.54 foot line of the first hereinmentioned deed, (3) South 82 degrees 45
minutes 15 seconds West 54.34 feet to a 1-inch diameter iron pipe found, thence
running with and binding on the last line of the first hereinmentioned deed (4)
South 82 degrees 31 minutes 59 seconds West 226.59 feet to the east side of
Delaware Avenue, thence binding thereon (5) North 08 degrees 26 minutes 54
seconds West 37.00 feet to the point of beginning; containing 0.247 acres of
land, more or less, as surveyed by Daft-McCune-Walker, Inc., in July, 199. The
improvements also being known as #512 Delaware Avenue and also known as 100-102
Shealy Avenue.

     Being all of the first described parcel of land which by deed dated March
31, 1997, and recorded among Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998.

  0.076 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH SIDE OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at the intersection of the west side of Virginia
Avenue with the south side of Shealy Avenue at a cross cut found. in the
concrete curb, said point being at the end of the first or North 05 degrees 17
minutes 11 seconds West 39.50 foot line of the land which by deed dated
September 19, 1990, and recorded among the Land Records of Baltimore County,
Maryland, in Liber S.M. 8621, Folio 591, was conveyed by George B. Stumpp to
Shealy-Virginia Limited Partnership, thence leaving said point of beginning and
running reversely with and binding on said first line and binding on the west
side of Virginia Avenue, referring all courses of this description to the Grid
Meridian established in the Baltimore County Metropolitan District, (1) South 05
degrees 13 minutes 24 seconds East 39.50 Feet to a limestone with a cross cut
found at the beginning of the heretoforementioned first line, thence running
reversely with and binding on the last line of the first hereinmentioned deed
and running with and binding on a portion of the first or South 81 degrees 12
minutes 49 seconds West 94.40 foot line of the land which by deed dated
September 19, 1940, and recorded among the Land Records of Baltimore County,
Maryland in Liber S.M. 8614, Folio 641, was conveyed by G.B. Stumpp Associates,
Incorporated, to Shealy-Virginia Limited Partnership (2) South 81 degrees 18
minutes 35 seconds West 82.51 feet to the end of the third or South 12 degrees
02 minutes 31 seconds East 39.00 foot line of the first hereinmentioned deed,
said point being the southwest corner of the Shealy Family Burying Ground,
thence binding along said Burying ground and running reversely with and binding
on said third line (3) North 11 degrees 58 minutes 44 seconds West 38.95 feet to
the south side of

                                                                               3
<Page>

Shealy Avenue and to a Rebar and Cap found marked "Property Corner P3," thence
binding on the south side of Shealy Avenue and running reversely with and
binding on the second line of the first hereinmentioned deed , (4) North 80
degrees 57 minutes 28 seconds East 87.13 feet to the point of beginning;
containing 0.076 acres of land, more or less, as surveyed by Daft-McCune-Walker,
Inc., in July, 1997, The unimproved lot being also known as #513 Virginia
Avenue.

     Being all of the first described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 122, was conveyed by Shealy-Virginia Limited Partnership
to Heritage Properties, Inc. December 23, 1998

0.111 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
SOUTH OF SHEALY AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND.

     Beginning for the same on the west side of Virginia Avenue at a limestone
with a cross cut found at the beginning of the second described parcel of land,
which by deed dated March 23,1478, and recorded among the Land Records of
Baltimore County, Maryland, in Liber E.H.K., Jr. 5866, Folio 868, was conveyed
by Towson Associates to G.B. Stumpp Associates, Incorporated, thence leaving
said point of beginning and binding on the west side of Virginia Avenue and
running reversely with and binding on the last tine oEURO the second described
parcel of the hereinmentioned deed, referring all courses of this description to
the Grid Meridian established in the Baltimore County Metropolitan District, (1)
South 11 degrees 52 minutes 26 seconds West 59.69 feet, thence running reversely
with and binding on the third or South 72 1/2 degree East 164.2 foot line of the
second described parcel of the hereinmentioned deed (2) North 78 degrees 07
minutes 32 seconds West 164.90 feet to a 1-inch diameter iron pipe found, thence
running reversely with and binding on the second or South 87 1/4 degree West 81
foot line of the second described parcel of the hereinmentioned deed (3) North
82 degrees 45 minutes 15 seconds East 81.04 feet to a limestone found, thence
running with and binding on the first or South 87 1/2 degree West 44 foot line
of the second described parcel of the hereinmentioned deed, (4) North 81 degrees
18 minutes 35 seconds East 99.35 feet to the point of beginning; containing
0.111 acres of land, more or less, as surveyed by Daft-McCune-Walker, Inc., in
July, 1997. the unimproved lot also being known as #509-511 Virginia Avenue.

     Being all that second described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber 5M 12107, Folio 122, was conveyed by Shealy-Virginia United Partnership to
Heritage Properties, Inc. December 23,1998

                                                                               4
<Page>

0.260 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

     Beginning for the same at a point situate on the west side of Virginia
Avenue the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning of
that parcel of land which by deed dated September 19, 1990, and recorded among
the Land Records of Baltimore County, Maryland, in Liber S.M. 8614, Folio 646,
was conveyed by G.B. Stumpp Associates, Incorporated, to Shealy-Virginia Limited
Partnership South 11 degrees 52 minutes 56 seconds West 59.69 feet, said point
also being the end of the first or North 14 degrees East 70 foot line of the
third described parcel of land which by deed dated February 1, 1977, and
recorded among the Land Records of Baltimore County, Maryland, in Liber E.H.K.,
Jr. 5722, Folio 295, was conveyed by University National Bank, David W. Irey,
and Theodore Coleman to Paul S. Brody, thence leaving said point of beginning
and running reversely with and binding on said first line, and binding on the
west side of Virginia Avenue, and referring all courses of this description to
the Grid Meridian established in the Baltimore County Metropolitan District (I)
South 11 degrees 52 minutes 56 seconds West 69.81 feet, thence running reversely
with and binding an the last line of the third described parcel of the second
hereinmentioned deed and running reversely with and binding on the second line
of the first described parcel of the second hereinmentioned deed (2) North 78
degrees 07 minutes 32 second, West 159.76 feet, thence running reversely with
and binding on the third line of the third described parcel of the second
hereinmentioned deed (3) North 07 degrees 40 minutes 00 seconds East 70.00 feet
to a 1-inch diameter iron pipe found at the end of the second or North 75
degrees West 158 foot, more or less, line of the third described parcel of the
second hereinmentioned deed, thence running reversely with and binding on the
second line of the third described parcel of the second hereinmentioned deed and
running with and binding an the Fourth or South 75 degrees East 158 foot line of
the first hereinmentioned deed (4) South 78 degrees 07 minutes 32 seconds East
16-3.90 feet to the point of beginning; containing 0.260 acres of land, more or
less, as surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot
also being known as #505-507 Virginia Avenue.

     Being all of the fourth described parcel of land which by deed dated March
31, 1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber S.M. 12107, Folio 117, was conveyed by Paul S. Brody to Heritage
Properties. Inc. December 17, 1998

0.252 ACRE PARCEL
WEST SIDE OF VIRGINIA AVENUE
NORTH OF PENNSYLVANIA AVENUE
9TH ELECTION DISTRICT, BALTIMORE COUNTY, MARYLAND

                                                                               5
<Page>

     Beginning for the same at a point situtate on the west side of Virginia
Avenue at the end of the following course and distance measured from a limestone
with a cross cut found on the west side of Virginia Avenue at the beginning
point of that parcel of land which by deed dated September 19, 1990, and
recorded among the Land Records of Baltimore County, Maryland, in Liber S.M.
8614, Folio 646, was conveyed by G.B. Stumpp Associates, Incorporated, to
Shealy-Virginia Limited Partnership, South 11 degrees 52 minutes 56 seconds West
129.50 feet, said point also being the end of the first or North 14 degrees East
70 foot line of that first described parcel of land which by deed dated February
1, 1977, and recorded among the Land Records of Baltimore County, Maryland, in
Liber E.H.K., Jr. 5722, Folio 295, was conveyed by University National Bank,
David W. Irey, and Theodore Coleman to Paul S. Brody, thence leaving said point
of beginning and running reversely with and binding on said first line and
binding on the west side of Virginia Avenue, referring all courses of this
description to the Grid Meridian established in the Baltimore County
Metropolitan District, (1) South 11 degrees 52 minutes 56 seconds West 69.81
feet, thence running reversely with and binding on the last, third, and second
lines of the first described parcel of the second herinmentioned deed, the three
following courses and distances, viz: (2) North 79 degrees 07 minutes 32 second
West 154.61 feet, thence (3) North 07 degrees 40 minutes 00 seconds East 70.00
feet, and thence (4) South 78 degrees 07 minutes 32 seconds East 159.76 feet to
the point of beginning; containing 0.252 acres of land, more or less, as
surveyed by Daft-McCune-Walker, Inc., in July, 1997. The unimproved lot also
being known as #503 Viriginia Avenue.

     Being all the third described parcel of land which by deed datrd March 31,
1997, and recorded among the Land Records of Baltimore County, Maryland, in
Liber SAQ 1210.', Folio 117, was conveyed by Paul S. Brody to Heritage
Properties, Inc. December 17, 1998

                                                                               6
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                           TERMS OF APPROVED FINANCING

                                    EXHIBIT B

The following restrictions and limitations will be in place for financing
secured by a Property:

     (i)    Any Approved Financing must be nonrecourse to the Company (other
than typical carve-outs provided by any person other than the Company;

     (ii)   Any Approved Financing with respect to the Existing Property must be
arms length and on commercially reasonably terms;

     (iii)  No portion of Approved Financing may, with respect to the Existing
Property, be cross defaulted or cross collateralized with any other properties.

     (iv)   Unless Inland or Cordish otherwise agree to bear any such cost or
expense, the Approved Financing documents must permit (direct or indirect)
transfers of the property encumbered by such Approved Financing to any one or
more Persons who are Members of the Company as of the date hereof;

     (v)    If securitized financing is to be obtained, the Owner Entity or
Additional Property Owner Entity, as applicable, shall form a "single purpose"
limited liability company ("SPE") which shall be owned 100% by the Owner Entity
or Additional Property Owner Entity, as the case may be, and which SPE may act
as the borrower of such Approved Financing. In such event, the SPE shall be
considered to be part of the definition of Owner Entity or Additional Property
Owner Entity, as the case may be, for all purposes of this Agreement; and

     (vi)   The total amount of the Approved Financing secured by an Existing
Property shall not exceed $21.0 million in the aggregate on the Existing
Property.

                                       B-1
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                        FORM OF REIT DECLARATION OF TRUST

                                    EXHIBIT C

                            THE TOWSON CIRCLE HOLDING
                                PROTECTIVE TRUST

     THIS DECLARATION OF TRUST (this "DECLARATION") is made and entered into on
July ____, 2004, by TOWSON CIRCLE HOLDING LLC, a Delaware limited liability
company, its successors or assigns, as Grantor (the "GRANTOR"), Inland Towson
HC, L.L.C. (the "TRUSTEE") and Cordish TC, LLC (the "ADDITIONAL PROPERTIES
TRUSTEE").

                              W I T N E S S E T H:

     WHEREAS, the Grantor desires to establish a trust (the "TRUST") for the
benefit of [The Inland Western Retail Real Estate Protective Trust, Inc.] (the
"BENEFICIARY"); and

     WHEREAS, the Grantor hereby declares that henceforth the Trustee shall hold
the property described in Schedule A, Part I annexed hereto and incorporated
herein, and the Grantor hereby declares that as of July _____, 2004, and as of
11:59:59 p.m. eastern standard time of each day preceding the last day of any
calendar quarter in which the Grantor and/or any Controlled Partnership
Subsidiary (as defined in Schedule A, Part II) owns property described in
Schedule A, Part II and Part III, the (i) Trustee will hold, the property
described in Schedule A, Part II annexed hereto and incorporated herein,
together with any additional property which may be added to the Trust from time
to time by the Grantor or otherwise, and all investments and reinvestments
thereof (the "TRUST ESTATE") and (ii) the Additional Properties Trustee will
hold, the property described in Schedule A, Part III annexed hereto and
incorporated herein, together with any additional property which may be added to
the Trust from time to time by the Grantor or otherwise, and all investments and
reinvestments thereof (the "ADDITIONAL PROPERTIES TRUST ESTATE"), IN TRUST, for
the uses and purposes and with the powers and authority and upon the terms and
conditions herein contained.

                                       C-1
<Page>

                                    ARTICLE I

                DISTRIBUTION OF INCOME AND PRINCIPAL; TERMINATION

     1.   DISTRIBUTION OF INCOME. The Trustee shall hold, manage, invest and
reinvest the Trust Estate and shall collect the income therefrom in accordance
with the terms of this Declaration. The Trustee shall not distribute any of the
income or proceeds of the Trust Estate to the Beneficiary other than as provided
in Section 2 of this Article I hereof. The Additional Properties Trustee shall
hold, manage, invest and reinvest the Additional Properties Trust Estate, and
shall collect the income therefrom in accordance with the terms of this
Declaration. The Additional Properties Trustee shall not distribute any of the
income or proceeds of the Additional Properties Trust Estate to the Beneficiary
other than as provided in Section 2 of this Article I hereof.

     2.   DISTRIBUTION OF PRINCIPAL; TERMINATION. The Trustee shall not transfer
all or any part of the Trust Estate, and/or any income accrued or accumulated
thereon, to the Beneficiary (or to any designated assignee of such Beneficiary),
unless and until approved by the Trustee or unless as otherwise provided in the
Amended and Restated Limited Liability Company Agreement of Grantor dated as of
July _, 2004 (the "LLC AGREEMENT"). The Additional Properties Trustee shall not
transfer all or any part of the Additional Properties Trust Estate, and/or any
income accrued or accumulated thereon, to the Beneficiary (or to any designated
assignee of such Beneficiary), unless and until approved by the Additional
Properties Trustee or unless as otherwise provided in the LLC Agreement. The
Trust hereunder shall terminate upon the earlier of (i) the distribution of the
entire remaining Trust Estate and Additional Properties Trust Estate to the
Beneficiary or (ii) the date that is twenty-one (21) years from the date hereof.

                                   ARTICLE II

    GRANTOR NOT TREATED AS BENEFICIARY OR OWNER OF TRUST ESTATE OR ADDITIONAL
                             PROPERTIES TRUST ESTATE

     The Grantor intends that it not be treated as a beneficiary of the Trust
for any purposes or as the owner of any part of the Trust Estate or Additional
Properties Trust Estate for federal income tax purposes pursuant to Subtitle A,
Chapter 1J, Part 1E of the Internal Revenue Code of 1986, as amended, (the
"CODE") or any successor provisions thereto, and all provisions of this
Declaration shall be construed so as to effectuate this intent.

                                   ARTICLE III

                                POWERS OF TRUSTEE

     1.   CONSTRUCTION. The Trustee shall have the following powers with respect
to the Trust Estate and the Additional Properties Trustee shall have the
following powers with respect to the Additional Properties Trust Estate. The
term "Trustee" for purposes of this Article III shall mean either the Trustee or
the Additional Properties Trustee as is appropriate and the term

                                       C-2
<Page>

"Trust Estate" shall mean the Trust Estate or the Additional Properties Trust
Estate as is appropriate.

     2.   GENERAL POWERS. Subject to Paragraph 7, the Grantor hereby gives to
the Trustee, its substitutes or successors, in addition to, and not by way of
limitation on, any and all powers and authority conferred upon it by law, the
following powers and authority which may be exercised by it under this
Declaration at any time and from time to time for any purpose without the
necessity of giving notice to, or of obtaining authorization or confirmation
with respect thereto from, any court or from the Grantor (except as otherwise
set forth in the following subsections):

                  a.   To hold and retain all or any part of the Trust Estate in
          the form in which the same may be at the time of receipt thereof by it
          as long as it deems advisable, to purchase or acquire for investment,
          by liquidation of any such asset or otherwise, any additional property
          of any kind or nature (including, without limitation, any real
          property or any interest in real property, any stocks, whether common,
          preferred or otherwise, participation in any discretionary common
          trust fund or other investment fund administered by any fiduciary
          hereunder, bonds, secured or unsecured, debentures, obligations,
          mortgages, or other securities) and to invest and reinvest the same as
          part of the Trust Estate, even though such holding, purchase,
          acquisition, investment or reinvestment, at any time or from time to
          time, may be non-income producing or underproductive, or otherwise
          would not be permitted by law for the investment of trust funds or
          would not be considered appropriate for retention by a trustee;
          PROVIDED THAT any disposition of all or any part of the Trust Estate
          and/or any investment or reinvestment of any proceeds of any
          disposition of any portion of the Trust Estate should require the
          written consent of each Trustee and the Beneficiary.

                  b.   To sell, exchange, give options upon, partition or
          otherwise alter any property at any time forming part of the Trust
          Estate, at public or private sale, for such purposes, and upon such
          terms, in such manner and at such prices as it determines to be
          advisable, and to make, execute and deliver any and all stock powers,
          deeds, conveyances, bills of sale, leases, mortgages and other
          instruments necessary thereto, PROVIDED THAT any such action shall
          require the written consent of each Trustee and the Beneficiary.

                  c.   To renew or extend the time of payment of any obligation,
          including taxes, whether such obligation is secured or unsecured or
          payable to or by it, for as long a period or periods of time and upon
          such terms as it determines; and to pay, adjust, settle, compromise,
          arbitrate or contest any claim or demand, including a

                                       C-3
<Page>

          claim or demand for taxes, in favor of or against it, upon such terms
          as it deems advisable.

                  d.   To borrow money from any person for such periods of time
          and upon such commercially reasonable terms and conditions for any
          purpose connected with the protection, preservation or administration
          of this Trust and the Trust Estate, whenever in its judgment the same
          is considered advisable; to execute promissory notes or other
          obligations for amounts so borrowed; and to secure the payments of any
          amounts so borrowed by pledge, deed of trust or mortgage of any
          property forming a part of the Trust Estate, PROVIDED THAT any such
          action shall require the written consent of each Trustee and the
          Beneficiary.

                  e.   To vote or assign the right to vote, in person or by
          general or limited proxy, any shares of stock or other securities held
          by the Trust at any and all meetings of stockholders for any and all
          purposes without any limitation whatsoever; and to refrain from voting
          with respect thereto, PROVIDED THAT any such action shall require the
          written consent of each Trustee and the Beneficiary.

                  f.   To exercise all options, rights and privileges; to
          convert stocks, bonds, notes, mortgages, or other property into
          stocks, bonds, notes, mortgages, or other property; to grant or
          receive put and call options, engage in hedging transactions, and
          acquire derivatives with respect to all or any part of the Trust
          Estate; to subscribe for additional or other stocks, bonds, notes,
          mortgages, or other property, and to make such conversions and
          subscriptions and to make payments therefor; and to hold such stocks,
          bonds, notes, mortgages, or other property so acquired as investments,
          PROVIDED THAT any such action shall require the written consent of
          each Trustee and the Beneficiary.

                  g.   To consent, directly or through a committee or other
          agent, to the reorganization, consolidation, merger, dissolution or
          liquidation, foreclosure or lease or sale of assets, incorporation or
          reincorporation, or readjustment of the capital or financial structure
          of any corporation or other entity in which the Trust may have any
          interest; to serve as a member of any stockholders' or bondholders'
          protective committee; to deposit any such stock or other securities in
          accordance with any such transaction; to pay any assessments, expenses
          and sums of money which may be required for the protection or
          furtherance of the interests of the Trust with reference thereto; and
          to receive and retain as investments of the Trust any new securities
          issued as a result of the execution of any such transaction, whether
          or not they otherwise would be permitted by

                                       C-4
<Page>

          law for the investment of Trust funds or would be considered
          appropriate for retention by a trustee; and to make any payment and to
          take any steps which may be necessary or proper to enable the Trust to
          obtain the benefit of any such transaction; PROVIDED THAT any matter
          that requires the vote of the holders of shares of stock that are held
          as part of the Trust Estate shall require the written consent of each
          Trustee and the Beneficiary.

                  h.   To employ any person or persons to handle the management
          or maintenance of any property forming a part of the Trust Estate,
          including receipt and payment of money, without being liable for loss
          incurred thereby; and to employ such investment or legal counsel,
          financial advisors, accountants, bookkeepers, agents, custodians,
          experts, clerks or other persons as the Trustee deems advisable in the
          administration of the Trust Estate, and to compensate them in such
          amounts as the Trustee deems reasonable, and to charge the expenses
          thereof to income or principal or both as the Trustee determines, and
          to rely on information or advice furnished by such persons and to
          delegate to them any discretions which the Trustee deems proper.

                  i.   To register any property in the name of its nominee or
          nominees, without qualification or description, or to hold the same
          unregistered or in such other form that title shall pass by delivery,
          or, in the case of a fiduciary, in its own name without qualification
          or description.

                  j.   To maintain and keep the Trust Estate, or any portion
          thereof, at any place in the United States or elsewhere, or with a
          depository or custodian at any such place, as the Trustee determines.

                  k.   To carry insurance against such hazards and in such
          amounts, with either stock companies or mutual companies, as it deems
          advisable.

                  1.   To exercise all powers and authority conferred upon the
          Trustee under law or by this Declaration with respect to all
          accumulations of income held hereunder.

                  m.   To exercise all powers and authority, including any
          discretion conferred upon the Trustee in this Declaration, after the
          termination of the Trust until the Trust Estate is fully distributed.

                  n.   To execute and deliver agreements, assignments, bills of
          sale, contracts, deeds, notes, powers of attorney,

                                       C-5
<Page>

          stock powers, proxies, receipts, and other instruments in writing
          which in the Trustee's judgment are necessary or desirable for the
          proper management, investment and discharge of the Trust and the Trust
          Estate or for the exercise of any power or authority conferred upon
          the Trustee in this Declaration, PROVIDED THAT the written consent of
          each Trustee and the Beneficiary shall be required as to any matter
          for which such consent is required under any other subparagraph of
          this paragraph 2.

     3.   COMPREHENSIVENESS OF POWERS AND CONCLUSIVENESS OF EXERCISE OF
DISCRETION. The powers and authority herein granted to the Trustee may be
exercised in whole or in part at any time and from time to time and shall be
deemed to be supplementary to and not exclusive of the general powers of a
trustee pursuant to law and shall include all powers necessary to carry the same
into effect. The enumeration of specific powers herein shall not be construed in
any way to limit or affect the general powers herein granted. In the exercise of
each such power, whether specific or general, the Trustee shall be required to
use the degree of judgment and care that a reasonable, prudent investor would
use if it were the owner of the assets of the Trust Estate, having due regard
for the preservation of the assets and the value thereof. Within the scope of
the discretion allowed to the Trustee, the Trustee's judgment as to the
advisability and mode of exercising any such power or authority shall be final
and conclusive upon all persons interested or who may become interested in the
Trust Estate or any Trust created hereunder.

     4.   AUTHORITY TO ACCEPT ADDITIONAL PROPERTY. The Trustee is authorized and
empowered to receive additional property from any other person as additions to
the Trust created hereunder, and to hold the same in trust and to administer it
as an integral part thereof pursuant to the terms and provisions hereof.

     5.   LIMITATIONS ON LIABILITY. The Trustee shall not be liable for the
acts, omissions, or defaults of any agent appointed with due care, or of any
other Trustee. The Trustee shall not be obliged to examine the accounts, records
or acts of a previous Trustee or any allocation of such Trustee. The Trustee
shall not be liable for failure to demand or contest an accounting of any other
Trustee, or of any predecessor, or otherwise to compel any Trustee to redress a
breach of trust, unless so requested in writing by the other Trustee and the
Beneficiary.

     6.   NON-JUDICIAL ACCOUNTINGS. In order to avoid the expense and delay
incident to a judicial settlement of its accounts, the Trustee from time to time
during the term of any Trust hereunder, in the Trustee's sole and absolute
discretion, may render an accounting of its proceedings as Trustee to the
Grantor, who shall have full power to settle finally any such accounting and on
the basis of such settlement to release the Trustee from all liability for its
acts or omissions as Trustee. Such settlement and release shall be binding upon
all persons interested or who may become interested in the Trust Estate or any
trust created hereunder (including creditors), including those who may be under
legal disability or not yet in being, and shall have the force and effect of a
final decree, judgment or order of a court of competent jurisdiction rendered in
an appropriate action or proceeding for an accounting in which jurisdiction was
duly

                                       C-6
<Page>

obtained over all necessary and proper parties. The foregoing provisions,
however, shall not preclude the Trustee from having its accounts judicially
settled if it shall so desire.

     7.   LIMITATION ON TRUSTEE'S POWERS. At any time that the Grantor is
serving as Trustee, the Grantor shall exercise the powers granted hereunder only
in its fiduciary capacity and for the sole and exclusive benefit of the
Beneficiary. None of the powers granted to the Trustee hereunder shall enable
any person to (i) buy, exchange, or otherwise deal with the Trust Estate or any
income accrued thereon for less than adequate and full consideration in money or
money's worth, other than by a distribution to the Beneficiary pursuant to
Article I hereof; (ii) borrow the principal of the Trust, directly or
indirectly, without adequate interest or security; (iii) require the Trustee to
exchange all or any part of the Trust Estate by substituting other property of
equal value; or (iv) require the Trustee to vote any corporate stock or other
securities held as a part of the Trust Estate other than in the exercise of the
Trustee's fiduciary duties to the Beneficiary.

     8.   EXONERATION FROM BOND. Neither the Trustee nor any successor Trustee
hereunder shall be required to give or file any bond or other security for the
faithful performance of the duties of such office.

                                   ARTICLE IV

                               SUCCESSOR TRUSTEES

     1.   APPOINTMENT OF SUCCESSOR. If the Trustee named herein shall resign or
otherwise cease to act as a Trustee hereunder, the Beneficiary shall appoint a
qualified individual or entity to serve as replacement and successor Trustee.
Any such appointment shall be in writing and delivered to the individual or
entity being appointed. If the Additional Properties Trustee named herein shall
resign or otherwise cease to act as Additional Properties Trustee hereunder, the
Beneficiary shall appoint a qualified individual or entity to serve as
replacement and successor Additional Properties Trustee. Any such appointment
shall be in writing and delivered to the individual or entity being appointed.

     2.   MEANING OF TERM WITH SUCCESSOR TRUSTEE. The term "Trustee" and
"Additional Properties Trustee" as used herein shall be deemed to include any
successor Trustee whenever the same shall be acting in such capacity hereunder.

                                    ARTICLE V

                                MEANING OF TERMS

     As used in this Declaration, the masculine, feminine or neuter genders
shall be deemed to include all genders and the singular shall be deemed to
include the plural and vice versa, except where any such construction would be
unreasonable.

                                       C-7
<Page>

                                   ARTICLE VI

                                  CHOICE OF LAW

     All questions, whether of administration, validity or effect, arising under
or with respect to this Declaration or the Trust hereby created, and all and
several of the respective rights, duties, benefits and liabilities of the
parties hereto or any other persons interested or who may become interested in
the Trust Estate, the Additional Properties Trust Estate or any Trust created
hereunder, shall be governed by and determined under and in accordance with the
laws of the State of Maryland.

                                   ARTICLE VII

                              BINDING ON SUCCESSORS

     This Declaration shall extend to and be binding upon the executors,
administrators, legal representatives, successors and assigns of the parties
hereto.

                                  ARTICLE VIII

                                 IRREVOCABILITY

     The Grantor has been fully advised as to the legal effect of the execution
of this instrument and informed of the character and amount of the property
being made subject hereto and declares that this Trust shall be irrevocable and
that there shall hereafter be no power at any time to revoke, change or annul
any of the provisions herein contained; except that other properties may
hereafter be brought within the operation of this Trust. The Grantor shall
execute such further instruments as shall be necessary to vest the Trustee and
the Additional Properties Trustee with full title to the property hereby
transferred.

                                   ARTICLE IX

     Each of the Trustee and the Additional Properties Trustee, by joining in
the execution of this Declaration, signifies its acceptance of this Trust on and
subject to the terms and conditions hereof and hereby acknowledges its receipt
of the Trust Estate and the Additional Properties Trust Estate.

                                   ARTICLE IX

     This Declaration may be executed in any number of counterparts, and each
such counterpart will for all purposes be deemed an original, and all such
counterparts shall constitute one and the same instrument.

                                   END OF PAGE
                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       C-8
<Page>

     IN WITNESS WHEREOF, the undersigned has executed this Declaration as of the
date first above mentioned.

                                            GRANTOR:

                                            TOWSON CIRCLE HOLDING LLC

                                            By: /s/ [ILLEGIBLE]
                                               -----------------------------
                                            Its: [ILLEGIBLE]
                                               -----------------------------
                                                 [ILLEGIBLE]

Witness

/s/ [ILLEGIBLE]
---------------
                                            TRUSTEE:

                                            INLAND TOWSON HC, L.L.C.

                                            By: /s/ [ILLEGIBLE]
                                               -----------------------------
                                            Its: [ILLEGIBLE]
                                               -----------------------------
                                                 [ILLEGIBLE]

Witness

/s/ [ILLEGIBLE]
---------------

                                            ADDITIONAL PROPERTIES TRUSTEE:

                                            CORDISH TC, LLC

                                            By: /s/ [ILLEGIBLE]
                                               -----------------------------
                                            Its:
                                               -----------------------------

Witness

/s/ [ILLEGIBLE]
---------------

                                       C-9
<Page>

                                                              SCHEDULE A, PART I

                                  TRUST ESTATE

                                     $100.00

                                      C-10
<Page>

                                                             SCHEDULE A, PART II
                                  TRUST ESTATE

   1. Any and all equity securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary(1) which are not owned, directly or indirectly, by an
"Additional Properties Owner Entity," as such term is defined in the LLC
Agreement, and issued by any entity treated as a corporation for federal income
tax purposes under Section 7701 of the Code, other than by a "taxable REIT
subsidiary" under Section 856(1) of the Code, if Inland Western Retail Real
Estate Trust, Inc., a Maryland corporation (the "REIT"), an indirect "partner"
in Grantor, otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the last day of the end of any calendar quarter, unless such
equity securities are otherwise considered "real estate assets" within the
meaning of Section 856(c)(5) of the Code; PROVIDED, HOWEVER, that the securities
of any issuer includible in the Trust Estate pursuant to this paragraph 1, shall
be only the portion of such securities sufficient to reduce the REIT's ownership
(as determined for purposes of Section 856 of the Code) of such securities to
less than 10 percent of the total value of the outstanding securities of such
issuer.

   2. Any and all debt securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary, which are not owned, directly or indirectly, by an
Additional Properties Owner Entity, and issued by any corporation, partnership,
limited liability company, or other person or entity other than by:

     (a)  a "taxable REIT subsidiary" under Section 856(1) of the Code or a
          "qualified REIT subsidiary" under Section 856(i) of the Code;

     (b)  a corporation (or other entity treated as a corporation for federal
          income tax purposes under Section 7701 of the Code), partnership (or
          other entity treated as a partnership for federal income tax purposes
          pursuant to Section 7701 of the Code), or limited liability company in
          which neither the REIT nor any "taxable REIT subsidiary" of the REIT
          owns (directly or indirectly) an interest other than such debt
          securities or by an individual provided that such debt securities
          qualify as "straight debt" within the meaning of Section 856(c)(7) of
          the Code; or

     (c)  a partnership or other entity treated as a partnership for federal
          income tax purposes pursuant to Section 7701 of the Code in which the
          REIT owns (directly or indirectly) a profits interest of at least 20
          percent, provided that such debt

----------
(1)  For purposes of this Schedule A, a "Controlled Partnership Subsidiary" is
     any partnership, business trust, joint venture or limited liability company
     in which the Grantor, the REIT, any qualified REIT subsidiary of REIT, or
     any other Controlled Partnership Subsidiary is a general partner, a joint
     venturer, or a managing member, as applicable.

                                      C-ll
<Page>

          securities qualify as "straight debt" within the meaning of Section
          856(c)(7) of the Code;

if the REIT otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such debt securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the debt securities of any issuer
includible in the Trust Estate pursuant to this paragraph 2, shall be only the
portion of such securities sufficient to reduce the REIT's ownership (as
determined for purposes of Section 856 of the Code) of such securities to less
than 10 percent of the total value of the outstanding securities of such issuer.

   3. If the Grantor and/or any Controlled Partnership Subsidiary owns both (a)
securities of an issuer that would be includible in the Trust Estate pursuant to
paragraph 1 of this Schedule A, Part II and (b) securities of such issuer that
would be includible in the Trust Estate pursuant to paragraph 2 of this Schedule
A, Part II, the Trust Estate shall include securities of such issuer in the
following priority: first, securities of such issuer includible pursuant to
paragraph 1 of this Schedule A, Part II and, second, securities of such issuer
includible pursuant to paragraph 2 of this Schedule A, Part II, to the extent
necessary to reduce the REIT's ownership (as determined for purposes of Section
856 of the Code) of the securities of such issuer to less than 10% of the total
outstanding securities of such issuer.

                                      C-12
<Page>

                                                            Schedule A, Part III

                       ADDITIONAL PROPERTIES TRUST ESTATE

   1. Any and all equity securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by an "Additional Properties Owner Entity" of
Grantor (as such term is defined in the LLC Agreement) and/or any Controlled
Partnership Subsidiary(2) which is owned by an Additional Properties Owner
Entity and which are issued by any entity treated as a corporation for federal
income tax purposes under Section 7701 of the Code, other than by a "taxable
REIT subsidiary" under Section 856(1) of the Code, if Inland Western Retail Real
Estate Trust, Inc., a Maryland corporation (the "REIT"), an indirect "partner"
in Grantor, otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such equity securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the securities of any issuer
includible in the Additional Properties Trust Estate pursuant to this paragraph
1, shall be only the portion of such securities sufficient to reduce the REIT's
ownership (as determined for purposes of Section 856 of the Code) of such
securities to less than 10 percent of the total value of the outstanding
securities of such issuer.

   2. Any and all debt securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary, which are owned by an Additional Properties Owner Entity
and issued by any corporation, partnership, limited liability company, or other
person or entity other than by:

     (a)  a "taxable REIT subsidiary" under Section 856(1) of the Code or a
          "qualified REIT subsidiary" under Section 856(i) of the Code;

     (b)  a corporation (or other entity treated as a corporation for federal
          income tax purposes under Section 7701 of the Code), partnership (or
          other entity treated as a partnership for federal income tax purposes
          pursuant to Section 7701 of the Code), or limited liability company in
          which neither the REIT nor any "taxable REIT subsidiary" of the REIT
          owns (directly or indirectly) an interest other than such debt
          securities or by an individual provided that such debt securities
          qualify as "straight debt" within the meaning of Section 856(c)(7) of
          the Code; or

     (c)  a partnership or other entity treated as a partnership for federal
          income tax purposes pursuant to Section 7701 of the Code in which the
          REIT owns (directly or indirectly) a profits interest of at least 20
          percent, provided that such debt

----------
(2)  For purposes of this Schedule A, a "Controlled Partnership Subsidiary" is
     any partnership, business trust, joint venture or limited liability company
     in which an Additional Properties Owner Entity of the Grantor, the REIT,
     any qualified REIT subsidiary of REIT, or any other Controlled Partnership
     Subsidiary is a general partner, a joint venturer, or a managing member, as
     applicable.

                                      C-13
<Page>

          securities qualify as "straight debt" within the meaning of Section
          856(c)(7) of the Code;

if the REIT otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such debt securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the debt securities of any issuer
includible in the Additional Properties Trust Estate pursuant to this paragraph
2, shall be only the portion of such securities sufficient to reduce the REIT's
ownership (as determined for purposes of Section 856 of the Code) of such
securities to less than 10 percent of the total value of the outstanding
securities of such issuer.

   3. If the Grantor and/or any Controlled Partnership Subsidiary owns through
an Additional Properties Subsidiary both (a) securities of an issuer that would
be includible in the Additional Properties Trust Estate pursuant to paragraph 1
of this Schedule A, Part III and (b) securities of such issuer that would be
includible in the Additional Properties Trust Estate pursuant to paragraph 2 of
this Schedule A, Part III, the Additional Properties Trust Estate shall include
securities of such issuer in the following priority: first, securities of such
issuer includible pursuant to paragraph 1 of this Schedule A, Part III and,
second, securities of such issuer includible pursuant to paragraph 2 of this
Schedule A, Part III, to the extent necessary to reduce the REIT's ownership (as
determined for purposes of Section 856 of the Code) of the securities of such
issuer to less than 10% of the total outstanding securities of such issuer.

                                      C-14

<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                             FORM OF PROMISSORY NOTE

                                    EXHIBIT D

                           FORM OF CASH SHORTFALL LOAN

                                 PROMISSORY NOTE

 $__________         __________________,____________        _________, Maryland

     FOR VALUE RECEIVED, the undersigned, [a subsidiary LLC OF TOWSON CIRCLE
HOLDING LLC] (the "MAKER"), promises to pay to the order of
__________________________(the "LENDER"), at__________________________ or at
such other place as the holder hereof may from time to time designate in
writing, the principal sum of______________________Dollars ($_____________),
plus interest on the principal balance thereof from time to time outstanding at
an annual rate ("RATE") of twelve percent (12%) per annum. The entire principal
balance of this Note, all accrued and unpaid interest thereon, and all other
applicable fees, costs and charges, if any, shall be due and payable in
accordance with Section 3.4 of that certain Amended and Restated Limited
Liability Company Agreement of Towson Circle Holding LLC dated as of
July ___, 2004.

     All payments hereunder shall be made in lawful money of the United States
and in immediately available funds.

     This Note may be prepaid, in whole or in part, at any time without penalty.
Any partial prepayments shall not, however, relieve the Maker of the obligation
to pay periodic installments of principal and/or interest hereunder as and when
the same would otherwise fall due.

     THE LENDER, THE MAKER AND ANY OTHER PARTY LIABLE HEREON IN ANY CAPACITY,
WHETHER AS ENDORSER, SURETY, GUARANTOR, OR OTHERWISE, EACH WAIVES TRIAL BY JURY
WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THE LOAN EVIDENCED HEREBY AND/OR THE CONDUCT OF THE RELATIONSHIP BETWEEN
THE LENDER, THE MAKER AND/OR ANY OTHER PARTY LIABLE HEREON IN ANY CAPACITY,
WHETHER AS ENDORSER, SURETY, GUARANTOR, OR OTHERWISE.

     The Maker promises to pay all costs of collection, including reasonable
attorneys' fees, upon default in the payment of the principal of this Note or
interest hereon when due, whether at

                                       D-1
<Page>

maturity, as herein provided, or by reason of acceleration of maturity under
the terms hereof, whether suit be brought or not.

     In the event any one or more of the provisions contained in this Note shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of this Note, but this Note shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.

     This Note may not be changed orally, but only by an agreement in writing
signed by the parties against whom enforcement of any waiver, change,
modification or discharge is sought.

     The Maker warrants and represents that the loan evidenced hereby is being
made for business or investment purposes.

     It is the intention of the Maker and the Lender to conform strictly to
applicable usury laws. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law, then notwithstanding anything to the
contrary in this Note or the Maker's Limited Liability Company Agreement, the
aggregate of all consideration which constitutes interest under applicable law
that is contracted for, charged or received under this Note shall under no
circumstances exceed the maximum amount of interest allowed by applicable law,
and any excess shall be credited on the Note by the Lender, or, if this Note
shall have been paid in full, refunded to the Maker.

     This Note shall be governed in all respects by the laws of the State of
Delaware (without regard to its conflicts of laws provisions) and shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, personal representatives,
successors and assigns.

                                [a subsidiary LLC of Towson Circle Holding LLC]

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

                                 Title:
                                       ---------------------------------------

                                       D-2
<Page>

                              AMENDED AND RESTATED
                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                            TOWSON CIRCLE HOLDING LLC

                              CALCULATIONS EXHIBIT

                                    EXHIBIT E

This example is intended to illustrate the manner in which the Capital
Contributions, Capital Account balances, Adjusted Capital Balances and
Operations Reserve balance will be calculated under the terms of the Amended and
Restated Limited Liability Company Agreement of Cordish Towson Circle, LLC to
which this example is attached. The figures in this example are intended solely
for illustrative purposes and may not reflect actual figures.

ASSUMPTIONS:

     -  Gross Proceeds under Contribution Agreement - $28,450,000
     -  Existing Debt - $13,130,559
     -  Earnout Amount - $ 1,300,000
     -  Amount Deposited in Escrow upon Closing - $2,995,079
     -  Initial Distribution to Withdrawing Member - $5,637,181

DETERMINATION OF INITIAL ADJUSTED CAPITAL BALANCE (DETERMINED UNDER DEFINITION
OF "ADJUSTED CAPITAL BALANCE"):

     -  Inland - Gross Asset Value - $28,450,000 (This amount includes the
        amount of any financing entered into by the Owner Entity simultaneously
        with the execution of the Agreement to which this Exhibit is attached).
     -  Cordish - Gross Asset Value ($28,450,000) MINUS Existing Debt
        ($13,130,559) MINUS distribution to Withdrawing Member ($5,637,181)
        MINUS fee paid to Heritage ($500,000) MINUS Escrow Amount ($2,995,079) =
        $6,187,181
            -   The Cordish Adjusted Capital Balance will be further reduced by
                expenses paid upon closing or when incurred (i.e., transaction
                expenses (estimated at $150,000)).

DETERMINATION OF INITIAL CAPITAL ACCOUNT (DETERMINED UNDER SECTION 3.2):

     -  Inland - Initial Capital Contribution (amount contributed upon Closing
        including Escrow Amount) = $28,450,000 (This amount will be reduced by
        the amount of any financing entered into by the Owner Entity
        simultaneously with the execution of the Agreement to which this Exhibit
        is attached and increased by any earnout contribution.)

                                       E-1
<Page>

     -  Cordish - Gross Asset Value ($28,450,000) MINUS Existing Debt
        ($13,130,559) MINUS distribution to Withdrawing Member ($5,637,181)
        MINUS fee paid to Heritage ($500,000) MINUS Escrow Amount ($2,995,079) =
        $6,187,181
            -   The Cordish Capital Account Balance will be further reduced by
                expenses paid upon closing or when incurred (i.e., transaction
                expenses (estimated at $150,000)).

DETERMINATION OF INITIAL BALANCE OF OPERATIONS RESERVE:

Gross Proceeds ($28,450,000) MINUS Existing Debt ($13,130,559) MINUS
distribution to Withdrawing Member ($5,637,181) MINUS fee paid to Heritage
($500,000) MINUS Escrow Amount ($2,995,079) = $6,187,181; which amount shall be
further reduced by the amount of expenses paid upon closing or when incurred
(i.e., transaction expenses (estimated at $150,000)).

EFFECT OF PAYMENT OF EARNOUT (ASSUMES CONTRIBUTION OF $1,000,000):

Assumption    $ 1,000,000 contribution by Inland of Earnout Funds
              $500,000 distributed/paid to Withdrawing Member

     -  Inland Capital Account: $1,000,000 increase
     -  Inland Adjusted Capital Balance: $1,000,000 increase
     -  Cordish Capital Account: Increased by Additional Contribution
        ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000
     -  Cordish Adjusted Capital Balance: Increased by Additional Contribution
        ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000
     -  Operations Reserve Balance: Increased by Additional Contribution
        ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000

EFFECT OF RELEASE OF ESCROW AMOUNT (ASSUMES RELEASE OF $1,000,000):

Assumption    $1,000,000 released from Escrow
              $500,000 distributed/paid to Withdrawing Member under Escrow
              Agreement

     -  Inland Capital Account: No change
     -  Inland Adjusted Capital Balance: No change
     -  Cordish Capital Account: Increased by amount released from escrow
        ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000
     -  Cordish Adjusted Capital Balance: Increased by amount released from
        escrow ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000
     -  Operations Reserve Balance: Increased by amount released from escrow
        ($1,000,000) MINUS amount paid to Withdrawing Member ($500,000) =
        $500,000

                                       E-2
<Page>

EFFECT OF PAYMENT OF INDEMNITY TO INLAND (ASSUMES PAYMENT OF $1,000,000):

Assumption    $ 1,000,000 paid from Liquidity Escrow to Inland

     -  Inland Capital Account: Decreased by $1,000,000
     -  Inland Adjusted Capital Balance: Decreased by $1,000,000
     -  Cordish Capital Account: No change
     -  Cordish Adjusted Capital Balance: No change
     -  Operations Reserve Balance: No change

Assumption    $1,000,000 paid from Operations Reserve (i.e., from an indemnity
              obligation under the LLC Agreement)

     -  Inland Capital Account: Decreased by $1,000,000
     -  Inland Adjusted Capital Balance: Decreased by $1,000,000
     -  Cordish Capital Account: Decreased by $1,000,000
     -  Cordish Adjusted Capital Balance: Decreased by $1,000,000
     -  Operations Reserve Balance: Decreased by $1,000,000

                                       E-3
<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                  EXHIBIT 1.1.1

                           FORM OF EARNEST MONEY NOTE

<Page>

                                 PROMISSORY NOTE

$_____________                                          Baltimore, Maryland
                                                        July_____,2004

     FOR VALUE RECEIVED, the undersigned, INLAND WESTERN RETAIL REAL ESTATE
TRUST, INC. a Maryland corporation with an address at _______________________
(the "INLAND"), hereby promises to pay to the order of ____________________(the
"ORIGINAL HOLDER"), at the Original Holder's office at 601 East Pratt Street,
Sixth Floor, Baltimore, Maryland 21202, or at such other place as the Original
Holder or other holder (the "HOLDER") of this Promissory Note (this "NOTE") may
from time to time designate, the principal sum ("PRINCIPAL SUM") of
_________________Dollars ($________) and any and all other sums which may be
owing to the Holder by Inland, as hereinafter provided.

     1.   PAYMENTS. The Principal Sum under this Note, together will all accrued
and unpaid interest thereon, if any, all late payment fees, and all other
amounts due and payable under this Note, shall be due and payable (if not paid
sooner) upon delivery of this Note to the Original Holder by Escrowee pursuant
to the terms of Section 1.1 of a Contribution Agreement, and the Original
Holder's written demand for payment.

     2.   APPLICATION OF PAYMENTS. All payments made hereunder shall be applied
first to accrued and unpaid default interest, and then to the Principal Sum, or
in such other order or proportion as the Holder, in its sole and absolute
discretion, may determine from time to time.

     3.   MANNER OF PAYMENTS. All payments shall be made in immediately
available funds during regular business hours at the office of the Original
Holder, or such other place as the Holder may designate from time to time, in
coin or currency of the United States of America which at the time of such
payment is legal tender for the payment of public and private debts. No payment
shall be deemed made until actually received by the Holder. Any such payment
tendered other than in coin or currency as aforesaid shall be accepted by the
Holder subject to collection (provided however, that any payment of Principal
Sum, default rate interest and any other amount due on this Note received by the
Holder at such office or other place after twelve o'clock noon, Eastern Standard
Time on any day shall be deemed to have been received by the Holder on the next
business day thereafter, and shall bear interest and late fees accordingly).

     4.   RESERVED

     5.   DEFAULT RATE. Upon a default in the payment when due of any sum due
under this Note or upon any other default under this Note, the Holder, in the
Holder's sole discretion and without notice or demand, may charge interest on
the unpaid Principal Sum at the rate of ten and percent (10.00%) (hereinafter
the "DEFAULT RATE").

<Page>

     6.   CONFESSION OF JUDGMENT. Upon the occurrence of any default by Inland
hereunder, Inland authorizes any attorney admitted to practice before any court
of record in the United States to appear on behalf of Inland in any court having
jurisdiction in one or more proceedings, or before any clerk thereof or
prothonotary or other court official, and to CONFESS JUDGMENT AGAINST THE MAKER,
WITHOUT PRIOR NOTICE OR OPPORTUNITY OF THE MAKER FOR PRIOR HEARING, in favor of
the Holder of this Note for the full amount due on this Note (including
Principal Sum, accrued and unpaid Interest, late payment fees and any and all
other sums due under this Note that remain unpaid) plus court costs, expenses
and attorneys fees equal to fifteen percent (15%) of the entire amount due under
this Note. Inland waives the benefit of any and every statute, ordinance, or
rule of court which may be lawfully waived conferring upon Inland any right or
privilege of exemption, summons and other process, all errors and rights of
appeal, homestead rights, stay of execution or stay of supplementary
proceedings, or other relief from the enforcement or immediate enforcement of a
judgment or related proceedings on a judgment. The authority and power to appear
for and enter judgment against Inland shall not be exhausted by one or more
exercises thereof, or by any imperfect exercise thereof, and shall not be
extinguished by any judgment entered pursuant thereto; such authority and power
may be exercised on one or more occasions, from time to time, in the same or
different jurisdictions, as often as the Holder shall deem necessary or
advisable, for all of which this Promissory Note shall be sufficient authority.

     7.   INTEREST RATE AFTER JUDGMENT. If judgment is entered against Inland
under this Note, the amount of the judgment entered (which may include Principal
Sum and default interest to date shall continue to bear interest at the Default
Rate as of the date of entry of the judgment.

     8.   EXPENSES OF COLLECTION. Upon a default by Inland under this Note,
Inland shall pay all of the Holder's reasonable costs, fees, and expenses in
connection with the enforcement or collection of this Note, including attorneys'
fees and related legal and court costs, whether or not judgment has been
confessed, suit has been filed, or any other action has been commenced by or on
behalf of the Holder to enforce or collect this Note, all of which shall be
added to and become part of the debt evidenced hereby, and shall bear interest
at the Default Rate.

     9.   WAIVERS. Inland, and all parties to this Note, whether maker, endorser
or guarantor hereby waive presentment of this Note for payment, protest and
demand, dishonor and notice of protest, demand or dishonor and nonpayment under
this Note, and agree that, without giving notice to or obtaining the consent of
Inland or any other person, the Holder may extend the time of payment, release
any party liable for any obligation hereunder, release any of the security for
this Note, accept other security therefor, and otherwise modify the terms of
payment of any or all of the debt evidenced by this Note, with or without having
been requested to do so by any other person liable hereon, and such consent
shall not alter nor diminish the liability of Inland or any other person
hereunder, except if and to the extent that the Holder may otherwise agree with,
respectively, Inland or such other person, expressly and in writing.

                                        2
<Page>

     10.  CONTRIBUTION AGREEMENT. This Note is the "Earnest Money Note" issued
pursuant to the provisions of a certain Contribution Agreement (the "AGREEMENT")
of even date between ______________and the Original Holder. The Original Holder
is entitled to the rights and benefits of the Agreement.

     11.  APPLICABLE LAW AND CONSENT TO JURISDICTION. This Note shall be
governed, construed and enforced in strict accordance with the internal laws of
the State of Maryland. Inland consents to the jurisdiction of the Northern
Division of the United States District Court for the District of Maryland, if
diversity of citizenship exists.

     12.  ASSIGNABILITY. This Note may be assigned by the Original Holder or any
Holder at any time or from time to time without notice to or consent of Inland.

     13. TIME OF THE ESSENCE. Time shall be of the essence of this Note.

     14.  HEADINGS. The headings used in this Note are for convenience only and
are not to be interpreted as a substantive part of this Note.

     IN WITNESS WHEREOF, Inland has caused this Note to be executed under seal
by its duly authorized officers as of the day and year first above written.

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

By:                             (SEAL)             By:
   -----------------------------                      -------------------------
                                                      Name:
                                                      Title

                                        3
<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                EXHIBIT 1.3.1(a)

ON THE CLOSING DATE, SUBSIDIARY (ACTING BY AND THROUGH HOLDING COMPANY), CORDISH
  AND ESCROWEE SHALL EACH EXECUTE AND DELIVER TO EACH OTHER THAT CERTAIN ESCROW
  AGREEMENT (THE "ESCROW AGREEMENT") THAT IS IN THE FORM ATTACHED HERETO AS
  EXHIBIT "1.3.1 (a)".

<Page>

                               EXHIBIT "1.3.1 (a)"

                                  TOWSON CIRCLE

                                ESCROW AGREEMENT

     THIS ESCROW AGREEMENT (this "AGREEMENT"), is made and entered into as of
the__________, day of July, 2004, by and among CORDISH TC, LLC, a Maryland
limited liability company ("CORDISH AFFILIATE"), TOWSON CIRCLE, LLC, a Maryland
limited liability company, ("SUBSIDIARY"), and CHICAGO TITLE INSURANCE COMPANY,
a New York corporation ("ESCROWEE").

                              W I T N E S S E T H:

     WHEREAS, immediately prior to the execution of this Agreement, Heritage
Towson Circle, LLC, a Maryland limited liability company ("WITHDRAWING MEMBER")
and Towson Circle Holding, LLC, a Delaware limited liability company, formerly
known as Cordish Towson Circle, LLC ("HOLDING COMPANY"), owned all of the
membership interests in Subsidiary, which owns and operates Towson Circle (the
"PROPERTY"), which is located at the intersection of Dulaney Valley and Joppa
Roads, in Towson, Maryland.

     WHEREAS, Holding Company and Inland Towson HC, L.L.C., a Delaware limited
liability company ("INLAND AFFILIATE") have entered into a Contribution
Agreement, dated July ___, 2004 (the "CONTRIBUTION AGREEMENT"), pursuant to
which, among other things; (i) Holding Company was to be reorganized as a
Delaware limited liability company and its name was to be changed from Cordish
Towson Circle, LLC to Towson Circle Holding, LLC prior to the CLOSING (as that
term is defined in the Contribution Agreement); (ii) Inland Affiliate was to be
admitted to Holding Company as a member at the Closing; and (iii) the original
members of Holding Company were to contribute their respective membership
interests in Holding Company to Cordish Affiliate for membership interests in
Cordish Affiliate at the Closing. As a condition precedent to Closing,
Withdrawing Member was to withdraw from the Subsidiary in consideration for a
distribution to the Withdrawing Member of a portion of the CAPITAL CONTRIBUTION
(as that term is defined in the Contribution Agreement).

     WHEREAS, Closing under the Contribution Agreement has occurred on the date
hereof, and, in connection with the Closing, Holding Company has been so
reorganized and so renamed and, on the date hereof, Inland Affiliate has been so
admitted and has made the Capital Contribution, the original members of Holding
Company made such contribution of membership interests in Holding Company to
Cordish Affiliate for membership interests in Cordish Affiliate and the
Withdrawing Member have so withdrawn from the Subsidiary in consideration for
such distribution.

     WHEREAS, pursuant to the terms of the Contribution Agreement, Inland
Affiliate has agreed, on behalf of Holding Company, to deposit, by wire transfer
of immediately available funds, a portion of the Capital Contribution with
Escrowee at the Closing, in an amount equal to the sum of One Hundred Fifty
Thousand Seventy Nine and 00/100 Dollars ($150,079.00) (the

<Page>

"ESCROW AMOUNT") in order to provide for: (a) the LEASING DEPOSIT (as defined in
Section 2.1 (a) hereof); and (b) the TI/LC DEPOSIT (as defined in Section 2.2
(a) hereof).

     WHEREAS, Escrowee is willing to accept the Escrow Amount and hold and
disburse same in accordance with the terms and conditions set forth below.

     NOW, THEREFORE, for and in consideration of the premises hereto, the
covenants and agreements hereinafter made, and for Ten Dollars ($10.00) in hand
paid to Escrowee, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

          1. DEPOSIT AND ACCEPTANCE OF ESCROW AMOUNT. Inland, on behalf of
Holding Company, hereby deposits with Escrowee, and Escrowee hereby acknowledges
receipt of the sum of One Hundred Fifty Thousand Seventy Nine and 00/100 Dollars
($150,079.00) as the Escrow Amount. Escrowee hereby agrees to deposit the Escrow
Amount into an interest bearing account with a bank, savings and loan
institution, money market account, or other depository reasonably satisfactory
to Subsidiary, Cordish Affiliate and Escrowee with interest accruing for the
benefit of the Holding Company, except as otherwise provided herein. All
interest earned on the Escrow Amount shall be deemed part of the Escrow Amount.
The federal taxpayer identification of Holding Company is as follows:
52-2012949.

          2. RETENTION AND DISBURSEMENT OF ESCROW AMOUNT. Escrowee shall retain
the Escrow Amount in the account, and shall cause the same to be disbursed
therefrom as follows:

             2.1. LEASING DEPOSIT.

                    (a) That portion of the Escrow Amount identified as the sum
of Zero Dollars ($0.00) is hereby referred to as the "LEASING DEPOSIT." The
Leasing Deposit equals six (6) months of PRO FORMA base rent and reimbursable
expenses (I.E., pro rata expenses such as a tenant's pro rata share of common
area maintenance expenses and real estate taxes) for each tenant space at the
Property not leased to tenants as of the CLOSING DATE (as defined in the
Contribution Agreement) that satisfy the Tenant Conditions (as hereinafter
defined) (the "PROJECT VACANT SPACE"). A Project Vacant Space may be vacant, or
may be occupied by a tenant whose lease does not satisfy the Tenant Conditions.
Each Project Vacant Space, the size of such space, the TI and LC (as those terms
are defined in Section 2.2 hereof) allocated to such space, the Leasing Deposit
allocated to such space and the average (over a five year period) monthly PRO
FORMA base rent and reimbursable expenses attributable to such space (the
"MONTHLY PRO FORMA BASE RENT AND EXPENSES") is scheduled on EXHIBIT "A" attached
hereto.

                    (b) Within five (5) Business Days after the Closing Date,
the Escrow Agent shall disburse from the Leasing Deposit, by wire transfer
pursuant to Section 4 hereof, to the Subsidiary for each Project Vacant Space a
prorated Monthly Pro Forma Base Rent and Expenses attributable to each Project
Vacant Space from the Closing Date through the end of the month in which Closing
occurs. Thereafter, on the first day of each calendar month during the five (5)
consecutive calendar months that follow the Closing Date, Escrowee shall
disburse, by wire transfer pursuant to Section 4 hereof, from the Leasing
Deposit to Subsidiary the Monthly Pro Forma Base Rent and Expenses (prorated for
any partial months), (the "LEASING DEPOSIT MONTHLY PAYMENT") for each Project
Vacant Space.

                                        2
<Page>

                    (c) The Leasing Deposit Monthly Payment for a Project Vacant
Space shall be made by Escrowee to Subsidiary until such time as the following
described requirements are met for such Project Vacant Space: (i) the Project
Vacant Space is leased; (ii) the tenant or tenants for the Project Vacant Space
shall have accepted its respective premises; (iii) the tenant or tenants for the
Project Vacant Space shall have opened for business at the Property to the
public; (iv) the tenant or tenants for the Project Vacant Space shall have
commenced full payment of rent and other charges under any Project Vacant Space
lease; (v) Cordish Affiliate shall have provided Subsidiary with a certificate
of Cordish Affiliate certifying that all leasing commissions and tenant
improvement allowances associated with the Project Vacant Space have been fully
paid; (vi) Cordish Affiliate shall have delivered to Subsidiary a temporary or
permanent certificate of occupancy for each separately leased portion of the
Project Vacant Space; and (vii) the tenant or the tenants for the Project Vacant
Space (or Cordish Affiliate) has executed and delivered an estoppel certificate
to Subsidiary that is reasonably acceptable to Subsidiary (which acceptance by
Subsidiary shall be given in the event that such estoppel certificate is
generally consistent in form and substance with estoppel certificates accepted
by Subsidiary in connection with other leases at the Property prior to or on the
Closing Date (as that term is defined in the Contribution Agreement) or is on
the form of such tenant)(collectively, the "TENANT CONDITIONS"). Subsidiary
and/or Cordish Affiliate shall promptly notify the other and Escrowee of the
date any tenant satisfies the Tenant Conditions.

                    (d) As each Project Vacant Space is leased during the six
month period following the Closing Date, with the Tenant Conditions for each
portion of the Project Vacant Space having then been satisfied for such leased
portion of the Project Vacant Space, the balance of the Leasing Deposit
attributable to each such leased portion of the Project Vacant Space shall, upon
the joint direction of Cordish Affiliate and Subsidiary, be disbursed by the
Escrowee, by wire transfer pursuant to Section 4 hereof, within five (5)
Business Days of receipt of such joint direction, as follows: fifty percent
(50%) of such amount shall be disbursed, by wire transfer pursuant to Section 4
hereof, directly into the OPERATIONS RESERVE (as that term is defined in the
Contribution Agreement) and fifty percent (50%) of such amount shall be
disbursed, by wire transfer pursuant to Section 4 hereof, directly to
Withdrawing Member. Notwithstanding the above, in the event that the actual
average monthly base rent and projected reimbursable expenses for a Project
Vacant Space varies from the Monthly Pro Forma Base Rent and Expenses for such
Project Vacant Space, Subsidiary and Cordish Affiliate shall equitably adjust
the amount of the balance of the Leasing Deposit to be so disbursed, such
equitable adjustment shall be contained in such joint direction, and Escrowee
shall comply with such joint direction. For example, if the actual average
monthly base rent and projected reimbursable expenses for a Project Vacant Space
is twenty-five percent (25%) greater than the Monthly Pro Forma Base Rent and
Expenses for such Project Vacant Space, the amount of the Leasing Deposit
released for such Project Vacant Space shall equal 125% of the Monthly Pro Forma
Base Rent and Expenses for such Project Vacant Space. Within ten (10) Business
Days of Cordish Affiliate's request for a joint direction, to the extent Cordish
Affiliate is entitled to a joint direction, Subsidiary shall cooperate with
Cordish Affiliate and issue the joint direction.

                    (e) The Escrowee shall disburse the balance of the Leasing
Deposit, if any, remaining six months after date of the Closing Date (including
all interest that has accrued on the Leasing Deposit) as follows: fifty percent
(50%) of such amount shall be disbursed, by wire transfer pursuant to Section 4
hereof, directly into the Operations Reserve and fifty percent

                                        3
<Page>

(50%) of such amount shall be disbursed, by wire transfer pursuant to Section 4
hereof, directly to the Withdrawing Member.

                    (f) Notwithstanding anything to the contrary contained in
this Section 2.1, on the date that a tenant of a Project Vacant Space has
commenced payment of rent prior to the satisfaction of the Tenant Conditions,
Subsidiary shall thereafter, within five (5) Business Days of receipt of a
Leasing Deposit Monthly Payment for such Project Vacant Space, deposit, by wire
transfer pursuant to Section 4 hereof, fifty percent (50%) of such Leasing
Deposit Monthly Payment into the Operations Reserve and pay the Withdrawing
Member, by wire transfer pursuant to Section 4 hereof, fifty percent (50%) of
such Leasing Deposit Monthly Payment.

             2.2. TENANT IMPROVEMENT ALLOWANCES AND LEASING COMMISSIONS DEPOSIT
FOR PROJECT VACANT SPACE.

                    (a) That portion of the Escrow Amount identified as the sum
of One Hundred Nine Thousand One Hundred and 00/100 Dollars ($109,100.00) is
hereby referred to as the "TI/LC DEPOSIT." The TI/LC Deposit consists of the sum
of the aggregate amount of projected "tenant improvement" costs that will have
to be paid or incurred for each Project Vacant Space ("TI") and the aggregate
amount of projected "leasing commission" costs that will have to be paid or
incurred for each Project Vacant Space ("LC"). The TI and LC applicable to each
Project Vacant Space as scheduled on EXHIBIT "A" hereto.

                    (b) (i) That portion of the TI/LC Deposit attributable to LC
for a Project Vacant Space shall, upon the joint direction of Cordish Affiliate
and Subsidiary, be disbursed by the Escrowee to the Operations Reserve (or, at
the written request of Cordish Affiliate contained in such joint direction, to
Cordish Affiliate pursuant to wire instructions contained in such joint
direction), by wire transfer pursuant to Section 4 hereof, within five (5)
Business Days of receipt of such joint direction. Within ten (10) Business Days
of Cordish Affiliate's request for a joint direction, which request shall be
accompanied by signed lien waivers and invoices from the applicable real estate
broker or brokers for such Project Vacant Space, or if no broker is involved,
upon the delivery of a certification to that effect by Cordish Affiliate for the
benefit of Subsidiary. Within ten (10) Business Days of Cordish Affiliate's
request for a joint direction, to the extent Cordish Affiliate is entitled to a
joint direction, Subsidiary shall cooperate with Cordish Affiliate and issue and
deliver the joint direction to Escrowee.

                         (ii) That portion of the TI/LC Deposit attributable to
TI for a Project Vacant Space shall, upon the joint direction of Cordish
Affiliate and Subsidiary, be disbursed by the Escrowee to the Operations
Reserve, by wire transfer pursuant to Section 4 hereof (or, at the written
request of Cordish Affiliate contained in such joint direction, to Cordish
Affiliate pursuant to wire instructions contained in such joint direction),
within five (5) Business Days of receipt of such joint direction. Within ten
(10) Business Days of Cordish Affiliate's request for a joint direction, which
request shall be accompanied by either (A) the documentation required by each
lease for such Project Vacant Space, and in any event, in the event that Cordish
Affiliate is performing construction work, no less documentation than copies of
invoices and mechanics lien waivers for landlord's work from the applicable
general contractor for such Project Vacant Space, in the amount of each request
shall accompany the draw request; or (B) or if no TI is required for a Project
Vacant Space, a certification to that effect by Cordish Affiliate

                                        4
<Page>

for the benefit of Subsidiary. Within ten (10) Business Days of Cordish
Affiliate's request for a joint direction, to the extent Cordish Affiliate is
entitled to a joint direction, Subsidiary shall cooperate with Cordish Affiliate
and issue and deliver the joint direction to Escrowee.

                         (iii) To the extent the TI/LC Deposit has not been
fully disbursed by the second anniversary of the Closing Date, the Escrowee
shall, by wire transfer pursuant to Section 4 hereof, disburse, by wire transfer
pursuant to Section 4 hereof, the remaining balance of the TI/LC Deposit to
Subsidiary (exclusive of all interest that accrued thereon) and all interest
that accrued thereon into the Operations Reserve (and Cordish Affiliate shall
cause fifty percent (50%) of such interest amount so deposited to the Operations
Reserve to be paid to Withdrawing Member.)

          3. DISPUTE - ESCROWEE RIGHTS. In the event either party objects to the
disbursement of the Escrow Amount as provided above, Escrowee shall notify
Subsidiary, Cordish Affiliate and Withdrawing Member of such dispute and shall
hold the Escrow Amount in escrow pending resolution of such objection by mutual
agreement of the parties or by arbitration of same pursuant to the provisions of
Section 6 hereof. After any disbursement of the Escrow Amount under the terms of
this Agreement, Escrowee's duties and obligations hereunder shall cease. In the
event of any dispute regarding disbursement of the Escrow Amount, the party
ultimately receiving the Escrow Amount after resolution of such dispute shall be
entitled to receive from the other party all the prevailing party's costs and
expenses incurred in connection with the resolution of such dispute including,
without limitation, all arbitration, court costs and reasonable attorney's fees.

     4. WIRE INSTRUCTIONS. Any part of the Escrow Amount to be disbursed into
the Operations Reserve shall be disbursed by wire transfer of immediately
available funds in accordance with the wire instructions attached hereto as
EXHIBIT "B". Any part of the Escrow Amount to be disbursed into the Withdrawing
Member shall be disbursed by wire transfer of immediately available funds in
accordance with the wire instructions attached hereto as EXHIBIT "C". Any part
of the Escrow Amount to be disbursed to Subsidiary shall be disbursed by wire
transfer of immediately available funds in accordance with the wire instructions
attached hereto as EXHIBIT "D". To the extent that any of the attached wiring
instructions require Escrowee to notify a person or party by telephone or fax of
such wire, the amount of such wire, the date and time of the sending of such
wire and the Fed Reference Number for such wire, Escrowee shall comply with such
instructions. Cordish Affiliate shall have the right, from time to time, to
change the wire instructions applicable for disbursements into the Operations
Reserve by Notice to the other parties hereto. Withdrawing Member shall have the
right, from time to time, to change the wire instructions applicable for
disbursements to Withdrawing Member by Notice to the other parties hereto.
Subsidiary shall have the right, from time to time, to change the wire
instructions applicable for disbursements to Subsidiary by Notice to the other
parties hereto. Any such change of wire instructions by a party hereto or
Withdrawing Member shall become effective five (5) Business Days after the
effective date of such Notice to Escrowee.

                                        5
<Page>

          5. REPRESENTATIONS AND WARRANTIES.

             5.1. Cordish Affiliate hereby represents and warrants to Subsidiary
and Escrowee as follows:

                    (a) Cordish Affiliate is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Maryland. Cordish Affiliate has all requisite power and authority to carry on
the businesses in which it is engaged and to own and use the properties owned
and used by it.

                    (b) Cordish Affiliate has all requisite power and authority
to execute and deliver this Agreement, and to perform its obligations hereunder
and thereunder. The execution and delivery by Cordish Affiliate of this
Agreement and the consummation by Cordish Affiliate of the transactions
contemplated hereby have been duly and validly authorized by all necessary
action on the part of Cordish Affiliate. This Agreement has been duly and
validly executed and delivered by Cordish Affiliate and constitutes a valid and
binding obligation of Cordish Affiliate, enforceable against it in accordance
with its terms.

                    (c) Neither the execution and delivery by Cordish Affiliate
of this Agreement nor the consummation by Cordish Affiliate of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Cordish Affiliate Affiliate, (ii)
require on the part of Cordish Affiliate any filing with, or permit,
authorization, consent or approval of, any third party, (iii) conflict with,
result in breach of, constitute (with or without due notice or lapse of time or
both) a default under, result in the acceleration of obligations under, create
in any party any right to terminate, modify or cancel, or require any notice,
consent or waiver under, any contract or instrument to which Cordish Affiliate
is a party or by which it is bound or to which its assets are subject, or (iv)
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Cordish Affiliate or any of its properties or assets.

             5.2. Subsidiary hereby represents and warrants to Cordish Affiliate
and Escrowee as follows:

                    (a) Subsidiary is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Maryland and is duly qualified to conduct business and is in corporate and tax
good standing under the laws of each jurisdiction in which the nature of its
businesses or the ownership or leasing of its properties requires such
qualification. Subsidiary has all requisite power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.

                    (b) Subsidiary has all requisite power and authority to
execute and deliver this Agreement, and to perform its obligations hereunder and
thereunder. The execution and delivery by Subsidiary of this Agreement and the
consummation by Subsidiary of the transactions contemplated hereby have been
duly and validly authorized by all necessary action on the part of Subsidiary.
This Agreement has been duly and validly executed and delivered by Subsidiary
and constitutes a valid and binding obligation of Subsidiary, enforceable
against it in accordance with its terms.

                                        6
<Page>

                    (c) Neither the execution and delivery by Subsidiary of this
Agreement nor the consummation by Subsidiary of the transactions contemplated
hereby and thereby, will: (i) conflict with or violate any provision of the
organizational documents of Subsidiary, (ii) require on the part of Subsidiary
any filing with, or permit, authorization, consent or approval of, any third
party, (iii) conflict with, result in breach of, constitute (with or without due
notice or lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party any right to terminate, modify or cancel,
or require any notice, consent or waiver under, any contract or instrument to
which Subsidiary is a party or by which it is bound or to which its assets are
subject, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Subsidiary or any of its properties or assets.

             5.3. Escrowee hereby represents and warrants to Cordish Affiliate
and Subsidiary as follows:

                    (a) Escrowee is a corporation duly organized, validly
existing and in good standing under the laws of the State of New York and is
duly qualified to conduct business and is in corporate and tax good standing
under the laws in each jurisdiction in which the nature of its businesses
requires such qualification. Escrowee has all requisite power and authority to
carry on the businesses in which it is engaged and to own and use the properties
owned and used by it.

                    (b) Escrowee has all requisite power and authority to
execute and deliver this Agreement, and to perform its obligations hereunder and
thereunder. The execution and delivery by Escrowee of this Agreement and the
consummation by Escrowee of the transactions contemplated hereby have been duly
and validly authorized by all necessary action on the part of Escrowee. This
Agreement has been duly and validly executed and delivered by Escrowee and
constitutes a valid and binding obligation of Escrowee, enforceable against it
in accordance with its terms.

                    (c) Neither the execution and delivery by Escrowee of this
Agreement nor the consummation by Escrowee of the transactions contemplated
hereby and thereby, will: (i) conflict with or violate any provision of the
organizational documents of Escrowee, (ii) require on the part of Escrowee any
filing with, or permit, authorization, consent or approval of, any third party,
(iii) conflict with, result in breach of, constitute (with or without due notice
or lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party any right to terminate, modify or cancel,
or require any notice, consent or waiver under, any contract or instrument to
which Escrowee is a party or by which it is bound or to which its assets are
subject, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Escrowee or any of its properties or assets.

          6. ARBITRATION. In the event that any dispute shall arise between or
among the parties hereto with respect to the application of any of the
provisions of this Agreement, and such dispute is not resolved to the
satisfaction of the parties hereto within twenty (20) days after the a party
hereto shall notify the other parties hereto in writing of its desire to
arbitrate the dispute (the "ARBITRATION NOTICE"), then the dispute shall be
resolved in accordance with the Commercial Arbitration Rules of the American
Arbitration Association then pertaining. The decision of the arbitrator shall be
binding, final and conclusive on the parties. Unless the parties otherwise
agree, such arbitration proceedings shall be conducted in Baltimore, Maryland.
The

                                        7
<Page>

arbitrator shall be selected by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The fees of the arbitrator and the expenses incident to the
proceedings shall be borne by the losing party. The decision of the arbitrator
shall be rendered within thirty (30) days after the conclusion of the
arbitration. A judgment of a court of competent jurisdiction may be entered upon
the award of the arbitrator in accordance with the rules and statutes applicable
thereto then obtaining. The parties hereto agree that the arbitrator may order
and compel specific performance.

          7. VENUE. Any lawsuit, action, or proceeding arising under this
Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.

          8. COOPERATION/CONFLICT WITH CONTRIBUTION AGREEMENT/. Subsidiary shall
reasonably cooperate with the efforts of Cordish Affiliate to satisfy the
conditions of the disbursement of the Escrow Amount and shall not unreasonably
withhold any approval or issuance of any distribution direction requested by
Cordish Affiliate hereunder. In the event of a conflict between the provisions
of the Contribution Agreement and the provisions of this Agreement, the
provisions of this Agreement shall control. To the extent Subsidiary is
obligated to pay any cost and expense in connection with this Agreement, such
cost and expense shall not be paid or reimbursed from the Operations Reserve.

          9. COSTS OF ADMINISTRATION AND SUCCESSORS AND ASSIGNS. The costs of
administration of this Agreement by Escrowee shall be shared equally by Cordish
Affiliate and Subsidiary. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, principals, successors
and assigns and shall be governed and construed in accordance with the laws of
the State of Illinois.

          10. NOTICES. All notices, demands, consents, approvals, requests or
other communications which any of the parties to this Agreement or Withdrawing
Member may desire or be required to give hereunder (collectively, "NOTICES")
shall be in writing and shall be given by personal delivery, nationally
recognized next day delivery service (delivery charges prepaid, return receipt
requested) or United States registered or certified mail (postage prepaid,
return receipt requested) addressed as hereinafter provided. Except as otherwise
specified herein, the effective date of any Notice (I.E., the date a party shall
be deemed to have received such Notice), shall be the earliest to occur of: (a)
if by personal deliver, the date of receipt, or attempted delivery, if such
communication is refused; (b) if by nationally recognized next Business Day
delivery service (as aforesaid), the next Business Day after delivery to such
service; and (c) if sent by mail (as aforesaid), three (3) Business Days after
posting. Until further notice, notices and other communications under this
Agreement shall be addressed to the parties and Withdrawing Member listed below
as follows:

                                        8
<Page>

If to Subsidiary:            Towson Circle Holding, LLC
                             c/o Inland Western Retail Real Estate Trust, Inc.
                             2901 Butterfield Road
                             3rd Floor
                             Oak Brook, Illinois 60523
                             Attention: Chief Financial Officer

with a copy to:              Charles J. Benvenuto, Esq.
                             2901 Butterfield Road
                             3rd Floor
                             Oak Brook, Illinois 60523

If to Cordish Affiliate:     Cordish TC, LLC
                             c/o The Cordish Company
                             601 East Pratt Street, Sixth Floor
                             Baltimore, Maryland 21202
                             Attn: David S. Cordish

with a copy to:              Cordish TC, LLC
                             c/o The Cordish Company
                             601 East Pratt Street, Sixth Floor
                             Baltimore, Maryland 21202
                             Attn: General Counsel

If to Escrowee:              Chicago Title Insurance Company
                             171 North Clark Street
                             Chicago, Illinois 60601
                             Attention: Nancy Castro

If to Withdrawing Member:    Heritage Towson Circle, LLC
                             515 Fairmount Avenue
                             Suite 900
                             Towson, Maryland 21286
                             Attention: Michael J. Batza, Jr.

with a copy to:              Mark P. Keener, Esq.
                             Gallagher, Evelius & Jones, L.L.P.
                             218 North Charles Street
                             Suite 400
                             Baltimore, Maryland 21201

Any party hereto or Withdrawing Member may designate another addressee (and/or
change its address) for Notices hereunder by a Notice given pursuant to this
Section to each of the other parties hereto and Withdrawing Member.

          11. HEADINGS. The captions and section headings contained in this
Agreement are for convenience of reference only and shall not be considered in
any interpretation of the

                                        9
<Page>

provisions of this Agreement.

          12. REPORTING. Escrowee agrees to deliver to Subsidiary and Cordish
Affiliate, on a monthly basis, a copy of the bank statement of account of the
Escrow Amount. Such monthly statements shall be delivered to Cordish Affiliate
at its notice address and to Subsidiary: Inland Western Retail Real Estate
Trust, Inc., 2901 Butterfield Road, Oak Brook Illinois 60523, attention
Steven Grimes, CFO (telephone: 630-218-8000; facsimile: 630-218-4955).

          13. AMENDMENTS/THIRD PARTY BENEFICIARY. EXCEPT AS OTHERWISE HEREIN
PROVIDED, ANY AND ALL AMENDMENTS, MODIFICATIONS, ADDITIONS OR DELETIONS TO THIS
AGREEMENT SHALL BE NULL AND VOID UNLESS APPROVED IN ADVANCE BY THE PARTIES
HERETO IN WRITING. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT CORDISH
AFFILIATE MAY NOT ENTER INTO OR CONSENT TO ANY AMENDMENTS, MODIFICATION,
ADDITIONS OR DELETIONS TO THIS AGREEMENT UNLESS IT OBTAINS THE PRIOR WRITTEN
CONSENT THERETO FROM WITHDRAWING MEMBER. WITHDRAWING MEMBER IS A THIRD PARTY
BENEFICIARY OF THIS AGREEMENT. In the event that any party hereto fails to
comply with any of the terms and provisions of this Agreement, Withdrawing
Member shall have the right to initiate and prosecute an arbitration proceeding
against such party to enforce the provisions of this Agreement (including court
actions to enforce or challenge any findings) solely to the extent that such
provisions directly effect the economic rights and interests of Withdrawing
Member. The provisions of Sections 6, 7, 15, 17 and 18 shall apply to such
proceeding as if Withdrawing Member was a party to this Agreement.

          14. INTEGRATION. With the exception of the Contribution Agreement and
the INDEMNITY AGREEMENT, the LEASING AGREEMENT, the LIQUIDITY AMOUNT ESCROW
AGREEMENT and the OPERATING AGREEMENT (as those terms are defined in the
Contribution Agreement) and any and all agreements executed in connection with
any such agreement, this Agreement encompasses, replaces, integrates and
supercedes any and all other negotiations, discussions, offers, promises,
arrangements and agreements between the parties hereto relating to the Property.

          15. INVALID PROVISIONS. This Agreement shall be construed, as to
execution, interpretation and enforcement, in accordance with the laws of the
State of Maryland. If any term, condition or provision of this Agreement shall
be declared invalid or unenforceable, the remainder of this Agreement shall not
be affected thereby and shall remain in full force and effect and shall be valid
and enforceable to the fullest extent permitted by law.

          16. ATTRIBUTION OF DRAFTING. This Agreement shall be deemed to have
been drafted jointly by the parties and any uncertainty or ambiguity shall not
be construed for or against either party as an attribution of drafting of either
party.

          17. ATTORNEY FEES. Subject to the provisions of Section 6 hereof, if
either Subsidiary or Cordish Affiliate brings suit or other legal proceedings to
enforce the provisions of this Agreement against the other, then the party
prevailing in such suit or proceeding shall be

                                       10
<Page>

reimbursed by the other for all reasonable attorneys' fees and litigation costs
and expenses incurred by the prevailing party in connection with such suit or
proceeding.

          18. WAIVER OF JURY TRIAL. Subject to the provisions of Section 6
hereof, Subsidiary and Cordish Affiliate do hereby waive trial by jury in any
action, suit, proceeding, and/or counterclaim brought by either of the parties
hereto against the other on any matters whatsoever arising out of or in any way
connected with this Agreement any claim of injury or damage, and/or statutory
remedy.

          19. GOOD FAITH AND FAIR DEALING. The parties covenant and agree each
to the other that its conduct under this Agreement, and the interpretation and
enforcement of the provisions hereof, shall be characterized by good faith and
fair dealings so that the objectives of each party as set forth in this
Agreement may be achieved.

          20. COUNTERPARTS. This Agreement may be executed in counterparts and
shall constitute an agreement binding on all parties notwithstanding that all
parties are not signatories of the original or the same counterpart.
Furthermore, the signatures from one counterpart may be attached to another to
constitute a fully executed original. The Agreement may be executed by
facsimile.

          21. TIME OF THE ESSENCE. Time is of the essence with regard to the
parties obligations under this Agreement.

          22. SURVIVAL PERIOD IN CONTRIBUTION AGREEMENT. Section 2 of the
Indemnification Agreement provides that the representations, warranties,
covenants or agreements made in the Contribution Agreement shall survive the
Closing Date for the periods provided therein. Nothing in this Agreement shall
be interpreted as modifying the survival period of such representations,
warranties, covenants or agreements.

          23. BUSINESS DAY. The term "BUSINESS DAY" means any day other than
Saturday, Sunday or any other day on which commercial banks or savings and loan
associations are required or authorized by law to close in New York City.

                             SIGNATURES ON NEXT PAGE

                                       11
<Page>

          IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be signed and delivered, under seal, as of the day and year first
above written.

WITNESS:                                CORDISH AFFILIATE:

                                        CORDISH TC, LLC,
                                        a Maryland limited liability company

                                        By:
-------------------------                  -----------------------------(SEAL)
                                          Charles F. Jacobs, Authorized Person

                                        SUBSIDIARY:

                                        TOWSON CIRCLE, LLC, a Maryland limited
                                        liability company

                                        By:
-------------------------                  -----------------------------(SEAL)
                                        Name:
                                              -------------------
                                        Title:
                                              ------------------

                                        ESCROWEE:

                                        CHICAGO TITLE INSURANCE COMPANY, a
                                        New York corporation

                                        By:
-------------------------                  -----------------------------(SEAL)
                                        Name:
                                              -------------------
                                        Title:
                                              ------------------

                                       12
<Page>

                                   EXHIBIT "A"

                  SCHEDULE OF PROJECT VACANT SPACE INFORMATION

List each Project Vacant Space, the size of such space, the TI and LC (as those
terms are defined in Section 2.2 hereof) allocated to such space, the LEASING
DEPOSIT allocated to such space and the average (over a five year period)
monthly PRO FORMA base rent and reimbursable expenses attributable to such space
(the "MONTHLY PRO FORMA BASE RENT AND EXPENSES").

<Page>

                                   EXHIBIT "B"

         WIRE INSTRUCTIONS FOR DISBURSEMENT INTO THE OPERATIONS RESERVE

(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)

<Page>

                                   EXHIBIT "C"

            WIRE INSTRUCTIONS FOR DISBURSEMENTS TO WITHDRAWING MEMBER

(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)

<Page>

                                   EXHIBIT "D"

                WIRE INSTRUCTIONS FOR DISBURSEMENTS TO SUBSIDIARY

(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)

<Page>

                             CONTRIBUTION AGREEMENT
                                  TOWSON CIRCLE

                                EXHIBIT 1.3.1(b)

ON THE CLOSING DATE, SUBSIDIARY (ACTING BY AND THROUGH HOLDING COMPANY), CORDISH
AND ESCROWEE SHALL EACH EXECUTE AND DELIVER TO EACH OTHER THAT CERTAIN LIQUIDITY
AMOUNT ESCROW AGREEMENT (THE "LIQUIDITY AMOUNT ESCROW AGREEMENT") THAT IS IN THE
                  FORM ATTACHED HERETO AS EXHIBIT "1.3.1 (b)".

<Page>

                               EXHIBIT "1.3.1 (b)"

                                  TOWSON CIRCLE

                        LIQUIDITY AMOUNT ESCROW AGREEMENT

     THIS LIQUIDITY AMOUNT ESCROW AGREEMENT (this "AGREEMENT"), is made and
entered into as of the 21, day of July, 2004, by and among CORDISH TC, LLC, a
Maryland limited liability company ("CORDISH AFFILIATE"), TOWSON CIRCLE, LLC, a
Maryland limited liability company, ("SUBSIDIARY"), and CHICAGO TITLE INSURANCE
COMPANY, a New York corporation ("ESCROWEE").

                              W I T N E S S E T H:

     WHEREAS, immediately prior to the execution of this Agreement, Heritage
Towson Circle, LLC, a Maryland limited liability company ("WITHDRAWING MEMBER")
and Towson Circle Holding, LLC, a Delaware limited liability company, formerly
known as Cordish Towson Circle, LLC ("HOLDING COMPANY"), owned all of the
membership interests in Subsidiary, which owns and operates Towson Circle (the
"PROPERTY"), which is located at the intersection of Dulaney and Joppa Roads, in
Towson, Maryland.

     WHEREAS, Holding Company and Inland Towson HC, L.L.C., a Delaware limited
liability company ("INLAND AFFILIATE") have entered into a Contribution
Agreement, dated July _____, 2004 (the "CONTRIBUTION AGREEMENT"), pursuant to
which, among other things: (i) Holding Company was to be reorganized as a
Delaware limited liability company and its name was to be changed from Cordish
Towson Circle, LLC to Towson Circle Holding, LLC prior to the CLOSING (as that
term is defined in the Contribution Agreement); (ii) Inland Affiliate was to be
admitted to Holding Company as a member at the Closing; and (iii) the original
members of Holding Company were to contribute their respective membership
interests in the Holding Company to Cordish Affiliate for membership interests
in Cordish Affiliate at the Closing. As a condition precedent to Closing,
Withdrawing Member was to withdraw from the Subsidiary in consideration for a
distribution to the Withdrawing Member of a portion of the CAPITAL CONTRIBUTION
(as that term is defined in the Contribution Agreement). Capitalized terms used
in this Agreement without definition shall have the respective meanings given to
them in the Contribution Agreement.

     WHEREAS, Closing under the Contribution Agreement has occurred on the date
hereof, and, in connection with the Closing, Holding Company has been so
reorganized and so renamed and, on the date hereof, Inland Affiliate has been so
admitted and has made the Capital Contribution, the original members of Holding
Company made such contribution of membership interests in Holding Company to
Cordish Affiliate for membership interests in Cordish Affiliate and the
Withdrawing Member have so withdrawn from the Subsidiary in consideration for
such distribution.

     WHEREAS, pursuant to the terms of the Contribution Agreement, Inland has
agreed, on behalf of Holding Company, to deposit, by wire transfer of
immediately available funds, a

<Page>

portion of the Capital Contribution with Escrowee at the Closing, in an amount
equal to the sum of Two Million Eight Hundred Forty Five Thousand and 00/100
Dollars ($2,845,000.00) in order to provide for the LIQUIDITY AMOUNT (as defined
in Section 1 hereof).

     WHEREAS, Escrowee is willing to accept the Liquidity Amount and hold and
disburse it in accordance with the terms and conditions set forth below.

     NOW, THEREFORE, for and in consideration of the premises hereto, the
covenants and agreements hereinafter made, and for Ten Dollars ($10.00) in hand
paid to Escrowee, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

     1.   DEPOSIT AND ACCEPTANCE OF LIQUIDITY AMOUNT. Inland Affiliate, on
behalf of Holding Company, hereby deposits with Escrowee, and Escrowee hereby
acknowledges receipt of the sum of Two Million Eight Hundred Forty Five Thousand
and 00/100 Dollars ($2,845,000.00) as the "LIQUIDITY AMOUNT." Escrowee hereby
agrees to deposit the Liquidity Amount into an interest bearing account with a
bank, savings and loan institution, money market account, or other depository
reasonably satisfactory to Subsidiary, Cordish Affiliate and Escrowee with
interest accruing for the benefit of Holding Company, except as otherwise
provided herein. All interest earned on the Liquidity Amount shall be deemed
part of the Liquidity Amount. The federal taxpayer identification of Holding
Company is as follows: 52-2012949.

     2.   RETENTION AND DISBURSEMENT OF LIQUIDITY AMOUNT. Escrowee shall retain
the Liquidity Amount in the account, and shall cause the same to be disbursed
therefrom as follows:

          (a) At any time after the first anniversary of the date hereof,
Cordish Affiliate shall have the right and power to send a written notice to
Escrowee, Withdrawing Member and Subsidiary instructing Escrowee to disburse, by
wire transfer pursuant to Section 4 hereof, one-half of the Phase 1 Liquidity
Amount to the Operations Reserve and to disburse the balance of the Phase 1
Liquidity Amount to the Withdrawing Member. Unless Subsidiary provides Cordish
Affiliate, Withdrawing Member and Escrowee with a written objection in
accordance with the provisions of Section 2(c) hereof to such distribution
within ten (10) Business Days of the effective date of such notice from Cordish
Affiliate to Escrowee, Escrowee shall comply with such instructions of Cordish
Affiliate on the fifteenth (15th) Business Day following the effective date of
such notice from Cordish Affiliate to Escrowee. For the purposes of this Section
2.1 (a), the term "PHASE 1 LIQUIDITY AMOUNT" shall mean the greater of (A) the
excess, if any, of (i) the then outstanding balance of the Liquidity Amount
(including all of the interest that accrued on the Liquidity Amount and
decreased to the extent required under the terms of Section 2.1(c) hereof) over
(ii) fifty percent (50%) of the initial amount of the Liquidity Amount as of the
date hereof, and (B) zero.

          (b) At any time after the second anniversary of the date hereof,
Cordish Affiliate shall have the right and power to send a written notice to
Escrowee, Withdrawing Member and Subsidiary instructing Escrowee to disburse, by
wire transfer pursuant to Section 4 hereof, fifty percent (50%) of the then
outstanding balance of the Liquidity Amount (including all of the interest that
accrued on the Liquidity Amount) to the Operations Reserve and to disburse the
then outstanding balance of the Liquidity Amount (including all of the interest
that accrued on the Liquidity Amount) to the Withdrawing Member. Unless
Subsidiary provides Cordish Affiliate,

                                        2
<Page>

Withdrawing Member and Escrowee with a written objection in accordance with the
provisions of Section 2 (c) hereof to such distribution within ten (10) Business
Days of the effective date of such notice from Cordish Affiliate to Escrowee,
Escrowee shall comply with such instructions of Cordish Affiliate on the
fifteenth (15th) Business Day following the effective date of such notice from
Cordish Affiliate to Escrowee.

          (c) If, at any time prior to the date that is ten (10) Business Days
after the date that Cordish Affiliate provides Escrowee, Withdrawing Member and
Subsidiary with the written instructions to the Escrowee described in
Sections 2 (a) or (b) hereof a timely and BONA FIDE demand by Inland Affiliate
for indemnification in connection with "DAMAGES" (as that term is defined in
that certain Indemnification and Guaranty Agreement, of even date herewith, (the
"INDEMNIFICATION AGREEMENT") among, Cordish Affiliate, David S. Cordish, Inland
Affiliate and Inland Western Retail Real Estate Trust, Inc.) suffered by any of
the INLAND INDEMNIFIED PARTIES (as that term is defined in the Indemnification
Agreement) has been made on Cordish Affiliate under the provisions of Sections
3.1, 3.2, 3.3, 3.4, 3.8 and/or 7 of the Indemnification Agreement (the
"LIQUIDITY AMOUNT DAMAGES"), and such demand has not been paid or otherwise
resolved, then Subsidiary shall have the right and power to provide Escrowee,
Withdrawing Member and Cordish Affiliate with a notice hereunder instructing
Escrowee not to honor such written instructions of Cordish Affiliate and stating
the reason or reasons for Subsidiary's instructions and containing a BONA FIDE
estimate of the aggregate dollar amount of such claim. If Escrowee receives such
notice from Subsidiary within ten (10) Business Days of the effective date of
the notice from Cordish Affiliate described above Escrowee shall comply with
said instructions of Cordish Affiliate and distribute same within fifteen (15)
Business Days of the request of Cordish Affiliate, but shall treat the size of
the Liquidity Amount, for purposes of determining the amount of the requested
distributions, as equaling the actual Liquidity Amount LESS Subsidiary's BONA
FIDE estimate of the aggregate dollar amount its claim, shall retain the balance
of the Liquidity Amount in accordance with the provisions of this Agreement and
shall immediately provide Cordish Affiliate and Withdrawing Member with a copy
of such notice from Subsidiary and the amount.

          (d) Notwithstanding anything to the contrary contained in this Section
2.3, Cordish Affiliate shall have the right to utilize the Liquidity Amount to
pay Liquidity Amount Damages. If at any time Cordish Affiliate is obligated to
pay Liquidity Amount Damages, Cordish Affiliate may direct the Escrowee by
written notice to Escrowee, Withdrawing Member and Subsidiary, to pay such
Liquidity Amount Damages from the Liquidity Amount. Unless Subsidiary provides
Cordish Affiliate, Withdrawing Member and Escrowee with a written objection to
such payment, which objection shall state the reason or reasons for such
objection, within ten (10) Business Days of the effective date of the notice
from Cordish Affiliate to Escrowee, Escrowee shall comply with such instructions
of Cordish Affiliate on the fifteenth (15th) Business Day following the
effective date of such notice from Cordish Affiliate to Escrowee. However, if
Escrowee receives such notice from Subsidiary within ten (10) days of the
effective date of the notice from Cordish Affiliate described above, Escrowee
shall not comply with said instructions of Cordish Affiliate and shall
immediately provide Cordish Affiliate and Withdrawing Member with a copy of such
notice from Subsidiary.

                                        3
<Page>

          (e) At the joint request and instructions of Cordish Affiliate,
Withdrawing Member and Subsidiary, Escrowee shall distribute the Liquidity
Amount in accordance with such instructions, accept, in lieu thereof alternative
collateral, such as a letter of credit or a portfolio of pledged bonds, and
enter into an amendment to this Agreement that governs the disbursement of such
alternative collateral, which amendment shall be reasonably acceptable to
Cordish Affiliate, Withdrawing Member, Subsidiary and Escrowee.

          (f) From time to time, Subsidiary may give notice (a "DEMAND NOTICE")
to Cordish Affiliate, Withdrawing Member and Escrowee specifying in reasonable
detail the nature and dollar amount of any claim against Cordish Affiliate for
Liquidity Amount Damages accompanied by documentary evidence that such claim has
been reduced to a final, non-appealable judgment by a court of competent
jurisdiction (or a final, non-appealable arbitrators' finding) and that such
claim has been unsatisfied for a period in excess of forty-five (45) days (a
"CLAIM"). Among other things, such documentary evidence shall include, but shall
be not be limited to a true copy of the order of a court of competent
jurisdiction (or final arbitrators' finding) and an opinion by independent
counsel for Subsidiary to the effect that the order (or arbitrators finding) is
final, non-appealable and unsatisfied for a period in excess of forty-five (45)
days from the date of finality of the judgment or finding.

          (g) If Cordish Affiliate gives notice to Subsidiary, Withdrawing
Member and Escrowee disputing any of the material factual statements with
respect to a Claim as set forth in a Demand Notice (a "COUNTER NOTICE") within
thirty (30) days following receipt by Escrowee of the Demand Notice regarding
such Claim, such Claim shall be resolved as provided in Section 3 hereof. Upon
receipt of a Counter Notice, Escrowee shall immediately provide Subsidiary and
Withdrawing Member with a copy of the Counter Notice.

          (h) If a Counter Notice is not received by Escrowee within such thirty
(30) day period, then the dollar amount of the Liquidity Amount Damages set
forth in the Demand Notice shall be deemed established for purposes of this
Agreement and, during the period that begins on the fortieth (40th) day
following the date Escrowee received the Demand Notice and ends on at the
forty-fifth (45th) day following the date Escrowee received the Demand Notice,
Escrowee shall pay to Subsidiary the dollar amount claimed in the Demand Notice
from (and only to the extent of) the Liquidity Amount and shall promptly notify
Cordish Affiliate and Withdrawing Member of such payment.

          (i) If a Counter Notice is given with respect to a Claim, Escrowee
shall make payment with respect thereto only in accordance with: (A) joint
written instructions of Subsidiary, Withdrawing Member and Cordish Affiliate; or
(B) the dispute resolution procedures set forth in Section 3 hereof.

     3.   DISPUTE - ESCROWEE RIGHTS. In the event either party objects to the
disbursement of all or any part of the Liquidity Amount as provided above,
Escrowee shall notify Subsidiary, Cordish Affiliate and Withdrawing Member of
such dispute and shall hold the Liquidity Amount in escrow pending resolution of
such objection by mutual agreement of the parties or by arbitration of same
pursuant to the provisions of Section 6 hereof. After the disbursement of the
full amount of the Liquidity Amount under the terms of this Agreement,
Escrowee's duties and obligations hereunder shall cease. In the event of any
dispute regarding disbursement of the

                                        4
<Page>

Liquidity Amount, the party ultimately receiving the Liquidity Amount after
resolution of such dispute shall be entitled to receive from the other party all
the prevailing party's costs and expenses incurred in connection with the
resolution of such dispute including, without limitation, all arbitration, court
costs and reasonable attorney's fees.

     4.   WIRE INSTRUCTIONS. Any part of the Liquidity Amount to be disbursed
into the Operations Reserve shall be disbursed by wire transfer of immediately
available funds in accordance with the wire instructions attached hereto as
EXHIBIT "A." Any part of the Liquidity Amount to be disbursed into the
Withdrawing Member shall be disbursed by wire transfer of immediately available
funds in accordance with the wire instructions attached hereto as EXHIBIT "B."
Any part of the Liquidity Amount to be disbursed to Subsidiary shall be
disbursed by wire transfer of immediately available funds in accordance with the
wire instructions attached hereto as EXHIBIT "C." To the extent that any of the
attached wiring instructions require Escrowee to notify a person or party by
telephone or fax of such wire, the amount of such wire, the date and time of the
sending of such wire and the Fed Reference Number for such wire, Escrowee shall
comply with such instructions. Cordish Affiliate shall have the right, from time
to time, to change the wire instructions applicable for disbursements into the
Operations Reserve by Notice to the other parties hereto. Withdrawing Member
shall have the right, from time to time, to change the wire instructions
applicable for disbursements to Withdrawing Member by Notice to the other
parties hereto. Subsidiary shall have the right, from time to time, to change
the wire instructions applicable for disbursements to Subsidiary by Notice to
the other parties hereto. Any such change of wire instructions by a party hereto
or Withdrawing Member shall become effective five (5) Business Days after the
effective date of such Notice to Escrowee.

     5.   REPRESENTATIONS AND WARRANTIES.

          5.1. Cordish Affiliate hereby represents and warrants to Subsidiary
and Escrowee as follows:

                  (a) Cordish Affiliate is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Maryland. Cordish Affiliate has all requisite power and authority to carry on
the businesses in which it is engaged and to own and use the properties owned
and used by it.

                  (b) Cordish Affiliate has all requisite power and authority to
execute and deliver this Agreement, and to perform its obligations hereunder and
thereunder. The execution and delivery by Cordish Affiliate of this Agreement
and the consummation by Cordish Affiliate of the transactions contemplated
hereby have been duly and validly authorized by all necessary action on the part
of Cordish Affiliate. This Agreement has been duly and validly executed and
delivered by Cordish Affiliate and constitutes a valid and binding obligation of
Cordish Affiliate, enforceable against it in accordance with its terms.

                  (c) Neither the execution and delivery by Cordish Affiliate of
this Agreement nor the consummation by Cordish Affiliate of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Cordish Affiliate, (ii) require on
the part of Cordish Affiliate any filing with, or permit, authorization, consent
or approval of, any third party, (iii) conflict with, result in breach of,

                                        5
<Page>

constitute (with or without due notice or lapse of time or both) a default
under, result in the acceleration of obligations under, create in any party any
right to terminate, modify or cancel, or require any notice, consent or waiver
under, any contract or instrument to which Cordish Affiliate is a party or by
which it is bound or to which its assets are subject, or (iv) violate any order,
writ, injunction, decree, statute, rule or regulation applicable to Cordish
Affiliate or any of its properties or assets.

          5.2. Subsidiary hereby represents and warrants to Cordish Affiliate
and Escrowee as follows:

                  (a) Subsidiary is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Maryland
and is duly qualified to conduct business and is in corporate and tax good
standing under the laws of each jurisdiction in which the nature of its
businesses or the ownership or leasing of its properties requires such
qualification. Subsidiary has all requisite power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.

                  (b) Subsidiary has all requisite power and authority to
execute and deliver this Agreement, and to perform its obligations hereunder and
thereunder. The execution and delivery by Subsidiary of this Agreement and the
consummation by Subsidiary of the transactions contemplated hereby have been
duly and validly authorized by all necessary action on the part of Subsidiary.
This Agreement has been duly and validly executed and delivered by Subsidiary
and constitutes a valid and binding obligation of Subsidiary, enforceable
against it in accordance with its terms.

                  (c) Neither the execution and delivery by Subsidiary of this
Agreement nor the consummation by Subsidiary of the transactions contemplated
hereby and thereby, will: (i) conflict with or violate any provision of the
organizational documents of Subsidiary, (ii) require on the part of Subsidiary
any filing with, or permit, authorization, consent or approval of, any third
party, (iii) conflict with, result in breach of, constitute (with or without due
notice or lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party any right to terminate, modify or cancel,
or require any notice, consent or waiver under, any contract or instrument to
which Subsidiary is a party or by which it is bound or to which its assets are
subject, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Subsidiary or any of its properties or assets.

          5.3. Escrowee hereby represents and warrants to Cordish Affiliate and
Subsidiary as follows:

                  (a) Escrowee is a corporation duly organized, validly existing
and in good standing under the laws of the State of New York and is duly
qualified to conduct business and is in corporate and tax good standing under
the laws of each jurisdiction in which the nature of its businesses requires
such qualification. Escrowee has all requisite power and authority to carry on
the businesses in which it is engaged and to own and use the properties owned
and used by it.

                  (b) Escrowee has all requisite power and authority to execute
and deliver this Agreement, and to perform its obligations hereunder and
thereunder. The execution and

                                        6
<Page>

delivery by Escrowee of this Agreement and the consummation by Escrowee of the
transactions contemplated hereby have been duly and validly authorized by all
necessary action on the part of Escrowee. This Agreement has been duly and
validly executed and delivered by Escrowee and constitutes a valid and binding
obligation of Escrowee, enforceable against it in accordance with its terms.

                  (c) Neither the execution and delivery by Escrowee of this
Agreement nor the consummation by Escrowee of the transactions contemplated
hereby and thereby, will: (i) conflict with or violate any provision of the
organizational documents of Escrowee, (ii) require on the part of Escrowee any
filing with, or permit, authorization, consent or approval of, any third party,
(iii) conflict with, result in breach of, constitute (with or without due notice
or lapse of time or both) a default under, result in the acceleration of
obligations under, create in any party any right to terminate, modify or cancel,
or require any notice, consent or waiver under, any contract or instrument to
which Escrowee is a party or by which it is bound or to which its assets are
subject, or (iv) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to Escrowee or any of its properties or assets.

     6.   ARBITRATION. In the event that any dispute shall arise between or
among the parties hereto with respect to the application of any of the
provisions of this Agreement, and such dispute is not resolved to the
satisfaction of the parties hereto within twenty (20) days after the a party
hereto shall notify the other parties hereto in writing of its desire to
arbitrate the dispute (the "ARBITRATION NOTICE"), then the dispute shall be
resolved in accordance with the Commercial Arbitration Rules of the American
Arbitration Association then pertaining. The decision of the arbitrator shall be
binding, final and conclusive on the parties. Unless the parties otherwise
agree, such arbitration proceedings shall be conducted in Baltimore, Maryland.
The arbitrator shall be selected by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The fees of the arbitrator and the expenses incident to the
proceedings shall be borne by the losing party. The decision of the arbitrator
shall be rendered within thirty (30) days after the conclusion of the
arbitration. A judgment of a court of competent jurisdiction may be entered upon
the award of the arbitrator in accordance with the rules and statutes applicable
thereto then obtaining. The parties hereto agree that the arbitrator may order
and compel specific performance.

     7.   VENUE. Any lawsuit, action, or proceeding arising under this Agreement
that is not subject to arbitration shall, to the extent there is federal
jurisdiction over the parties and subject matter, be brought exclusively in the
Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.

     8.   COOPERATION/CONFLICT WITH CONTRIBUTION AGREEMENT/. Subsidiary shall
reasonably cooperate with the efforts of Cordish Affiliate to satisfy the
conditions of the disbursement of the Liquidity Amount and shall not
unreasonably withhold any approval or issuance of any distribution direction
requested by Cordish Affiliate hereunder. In the event of a conflict between the
provisions of the Contribution Agreement and the provisions of this Agreement,
the provisions of this Agreement shall control. To the extent Subsidiary is
obligated to pay any cost and expense in connection with this Agreement, such
cost and expense shall not be paid or reimbursed from the Operations Reserve.

                                        7
<Page>

     9.   COSTS OF ADMINISTRATION AND SUCCESSORS AND ASSIGNS. The costs of
administration of this Agreement by Escrowee shall be shared equally by Cordish
Affiliate and Subsidiary. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, principals, successors
and assigns and shall be governed and construed in accordance with the laws of
the State of Illinois.

     10.  NOTICES. All notices, demands, consents, approvals, requests or other
communications which any of the parties to this Agreement or Withdrawing Member
may desire or be required to give hereunder (collectively, "NOTICES") shall be
in writing and shall be given by personal delivery, nationally recognized next
day delivery service (delivery charges prepaid, return receipt requested) or
United States registered or certified mail (postage prepaid, return receipt
requested) addressed as hereinafter provided. Except as otherwise specified
herein, the effective date of any Notice (I.E., the date a party shall be deemed
to have received such Notice), shall be the earliest to occur of: (a) if by
personal delivery, the date of receipt, or attempted delivery, if such
communication is refused; (b) if by nationally recognized next Business Day
delivery service (as aforesaid), the next Business Day after delivery to such
service; and (c) if sent by mail (as aforesaid), five (5) Business Days after
posting. Until further notice, notices and other communications under this
Agreement shall be addressed to the parties and Withdrawing Member listed below
as follows:

If to Subsidiary:            Towson Circle Holding, LLC
                             c/o Inland Western Retail Real Estate Trust, Inc.
                             2901 Butterfield Road
                             3rd Floor
                             Oak Brook, Illinois 60523
                             Attention: Chief Financial Officer

with a copy to:              Charles J. Benvenuto, Esq.
                             2901 Butterfield Road
                             3rd Floor
                             Oak Brook, Illinois 60523

If to Cordish Affiliate:     Cordish TC, LLC
                             c/o The Cordish Company
                             601 East Pratt Street, Sixth Floor
                             Baltimore, Maryland 21202
                             Attn: David S. Cordish

with a copy to:              Cordish TC, LLC
                             c/o The Cordish Company
                             601 East Pratt Street, Sixth Floor
                             Baltimore, Maryland 21202
                             Attn: General Counsel

                                        8
<Page>

If to Escrowee:              Chicago Title Insurance Company
                             171 North Clark Street
                             Chicago, Illinois 60601
                             Attention: Nancy Castro

If to Withdrawing Member:    Heritage Towson Circle, LLC
                             515 Fairmount Avenue
                             Suite 900
                             Towson, Maryland 21286
                             Attention: Michael J. Batza, Jr.

with a copy to:              Mark P. Keener, Esq.
                             Gallagher, Evelius & Jones, L.L.P.
                             218 North Charles Street
                             Suite 400
                             Baltimore, Maryland 21201

Any party hereto or Withdrawing Member may designate another addressee (and/or
change its address) for Notices hereunder by a Notice given pursuant to this
Section to each of the other parties hereto and Withdrawing Member.

     11.  HEADINGS. The captions and section headings contained in this
Agreement are for convenience of reference only and shall not be considered in
any interpretation of the provisions of this Agreement.

     12.  REPORTING. Escrowee agrees to deliver to Subsidiary and Cordish
Affiliate, on a monthly basis, a copy of the bank statement of account of the
Liquidity Amount. Such monthly statements shall be delivered to Cordish
Affiliate at its notice address and to Subsidiary: Inland Western Retail Real
Estate Trust, Inc., 2901 Butterfield Road, Oak Brook Illinois 60523, attention
Steven Grimes, CFO (telephone: 630-218-8000; facsimile: 630-218-4900).

     13.  AMENDMENTS/THIRD PARTY BENEFICIARY. EXCEPT AS OTHERWISE HEREIN
PROVIDED, ANY AND ALL AMENDMENTS, MODIFICATIONS, ADDITIONS OR DELETIONS TO THIS
AGREEMENT SHALL BE NULL AND VOID UNLESS APPROVED IN ADVANCE BY THE PARTIES
HERETO IN WRITING. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT CORDISH
AFFILIATE MAY NOT ENTER INTO OR CONSENT TO ANY AMENDMENTS, MODIFICATION,
ADDITIONS OR DELETIONS TO THIS AGREEMENT UNLESS IT OBTAINS THE PRIOR WRITTEN
CONSENT THERETO FROM WITHDRAWING MEMBER. WITHDRAWING MEMBER IS A THIRD PARTY
BENEFICIARY OF THIS AGREEMENT. In the event that any party hereto fails to
comply with any of the terms and provisions of this Agreement, Withdrawing
Member shall have the right to initiate and prosecute an arbitration proceeding
against such party to enforce the provisions of this Agreement (including court
actions to enforce or challenge any findings) solely to the extent that such
provisions directly effect the economic rights and interests of Withdrawing
Member. The

                                        9
<Page>

provisions of Sections 6, 7, 15, 17 and 18 shall apply to such proceeding as if
Withdrawing Member was a party to this Agreement.

     14.  INTEGRATION. With the exception of the Contribution Agreement and the
Indemnity Agreement and the ESCROW AGREEMENT, the LEASING AGREEMENT and the
OPERATING AGREEMENT (as those terms are defined in the Contribution Agreement)
and any and all agreements executed in connection with any such agreement, this
Agreement encompasses, replaces, integrates and supercedes any and all other
negotiations, discussions, offers, promises, arrangements and agreements between
the parties hereto relating to the Property.

     15.  INVALID PROVISIONS. This Agreement shall be construed, as to
execution, interpretation and enforcement, in accordance with the laws of the
State of Maryland. If any term, condition or provision of this Agreement shall
be declared invalid or unenforceable, the remainder of this Agreement shall not
be affected thereby and shall remain in full force and effect and shall be valid
and enforceable to the fullest extent permitted by law.

     16.  ATTRIBUTION OF DRAFTING. This Agreement shall be deemed to have been
drafted jointly by the parties and any uncertainty or ambiguity shall not be
construed for or against either party as an attribution of drafting of either
party.

     17.  ATTORNEY FEES. Subject to the provisions of Section 6 hereof, if
either Subsidiary or Cordish Affiliate brings suit or other legal proceedings to
enforce the provisions of this Agreement against the other, then the party
prevailing in such suit or proceeding shall be reimbursed by the other for all
reasonable attorneys' fees and litigation costs and expenses incurred by the
prevailing party in connection with such suit or proceeding.

     18.  WAIVER OF JURY TRIAL. Subject to the provisions of Section 6 hereof,
Subsidiary and Cordish Affiliate do hereby waive trial by jury in any action,
suit, proceeding, and/or counterclaim brought by either of the parties hereto
against the other on any matters whatsoever arising out of or in any way
connected with this Agreement any claim of injury or damage, and/or statutory
remedy.

     19.  GOOD FAITH AND FAIR DEALING. The parties covenant and agree each to
the other that its conduct under this Agreement, and the interpretation and
enforcement of the provisions hereof, shall be characterized by good faith and
fair dealings so that the objectives of each party as set forth in this
Agreement may be achieved.

     20.  COUNTERPARTS. This Agreement may be executed in counterparts and shall
constitute an agreement binding on all parties notwithstanding that all parties
are not signatories of the original or the same counterpart. Furthermore, the
signatures from one counterpart may be attached to another to constitute a fully
executed original. The Agreement may be executed by facsimile.

     21.  TIME OF THE ESSENCE. Time is of the essence with regard to the parties
obligations under this Agreement.

     22.  SURVIVAL PERIOD IN CONTRIBUTION AGREEMENT. Section 2 of the
Indemnification Agreement provides that the representations, warranties,
covenants or agreements made in the

                                       10
<Page>

Contribution Agreement shall survive the Closing Date for the periods provided
therein. Nothing in this Agreement shall be interpreted as modifying the
survival period of such representations, warranties, covenants or agreements.

     23.  BUSINESS DAY. The term "BUSINESS DAY" means any day other than
Saturday, Sunday or any other day on which commercial banks or savings and loan
associations are required or authorized by law to close in New York City.

                             SIGNATURES ON NEXT PAGE

                                       11
<Page>

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
  signed and delivered, under seal, as of the day and year first above written.

WITNESS:                           CORDISH AFFILIATE:

                                   CORDISH TC, LLC,
                                   a Maryland limited liability company

/s/ [ILLEGIBLE]                    By: /s/ Charles F. Jacobs              (SEAL)
--------------------                  ------------------------------------
                                      Charles F. Jacobs, Authorized Person

                                   SUBSIDIARY:

                                   TOWSON CIRCLE, LLC, a Maryland limited
                                   liability company

/s/ [ILLEGIBLE]                    By: /s/ [ILLEGIBLE]                    (SEAL)
--------------------                  ------------------------------------
                                   Name:  [ILLEGIBLE]
                                          --------------------------
                                   Title: [ILLEGIBLE]
                                          --------------------------

                                   ESCROWEE:

                                   CHICAGO TITLE INSURANCE COMPANY, a
                                   Missouri corporation

/s/ [ILLEGIBLE]                    By: /s/ Nancy R. Castro                (SEAL)
--------------------                  ------------------------------------
                                   Title: NANCY R. CASTRO
                                         --------------------------
                                   Name: AVP
                                         --------------------------

                                       12<Page>

                                                                  Exhibit 10.347

                         ALLSTATE LIFE INSURANCE COMPANY
                         ALLSTATE PLAZA SOUTH, SUITE G5C
                           NORTHBROOK, ILLINOIS 60062

                                 August 19, 2004

Inland Western Southlake
 Limited Partnership
2901 Butterfield Road
Oakbrook, Illinois 60523

              Re:   Allstate Life Insurance Company
                    Loan No. 122520
                    Gateway Plaza Shopping Center
                    State Highway 114 & Southlake Boulevard
                    Southlake, Texas (the "Property")

Ladies and Gentlemen:

         Reference is made to our Commitment Letter dated August 13, 2004, as
amended (the "Commitment") with respect to a $18,163,000 loan (the "Loan") to be
evidenced by a Deed of Trust Note of even date herewith, payable to Allstate
Life Insurance Company in the principal amount of the Loan (the "Note") and to
be secured by a Leasehold Deed of Trust, Assignment of Leases, Rents and
Contracts, Security Agreement and Fixture Filing of even date herewith (the
"Deed of Trust") encumbering the Property. Initially capitalized terms used but
not otherwise defined in this letter agreement (the "Letter Agreement") have the
same meanings given them in the Deed of Trust.

         In consideration of your execution and delivery of the documents
evidencing, securing or otherwise pertaining to the Loan (the "Loan Documents"),
you (the "Borrower") and we (the "Lender") hereby agree as follows:

         1.      RELATED AGREEMENT. This Letter Agreement shall constitute a
Related Agreement.

         2.      IMPOUNDS. With regard to the provisions contained in Section
1.06 of the Deed of Trust requiring Borrower to deposit 1/12 of the annual
amounts of real estate taxes, regular and special assessments and insurance
premiums, Lender hereby agrees to defer collection of such monthly deposits for
so long as (a) Borrower is the sole owner of the leasehold estate in the
Property; and (b) no Event of Default exists under the Loan Documents and no
condition or event exists which with notice, the passage of time, or both, would
constitute an Event of Default; and (c) at Lender's election, Borrower either
pays for a tax reporting service or Borrower promptly and consistently furnishes
evidence that taxes and insurance are being currently paid.

         3.      EARTHQUAKE INSURANCE. With regard to the provisions contained
in Section 1.02 of the Deed of Trust requiring Borrower obtain earthquake
insurance coverage on the Property,

<Page>

Lender hereby agrees to waive such requirement until such time as such coverage
is available at commercially reasonable rates and in Lender's reasonable opinion
such coverage is generally required by other institutional lenders.

         4.      BORROWER'S RIGHT TO TRANSFER THE PROPERTY. Notwithstanding the
provisions contained in Section 1.08 and other applicable provisions of the Deed
of Trust, Borrower shall have a one time right, provided there is no default or
an event which, with notice or the passage of time, or both, could result in a
default by Borrower under the Loan Documents, to assign, sell or transfer all of
the Property (the "Permitted Transfer") to a party with experience, reasonably
satisfactory to Lender, in managing property similar to the Property and whose
financial condition is reasonably satisfactory to Lender ("Permitted
Transferee"). The Permitted Transfer shall be further conditioned upon:

         (a)     the payment by Borrower to Lender of a transfer fee equal to
one percent of the outstanding principal balance of the Note (a nonrefundable
$5,000 deposit toward such transfer fee shall be due at the time Borrower
initially requests a Permitted Transfer, the balance of the transfer fee shall
be due on the closing of the transaction);

         (b)     the reimbursement of all of Lender's expenses, including legal
fees, incurred in connection with the Permitted Transfer;

         (c)     the Permitted Transferee and such general partners or
principals of Permitted Transferee as Lender may request, assuming, in form and
substance satisfactory to Lender, all obligations of Borrower under the Loan
Documents, including, without limitation, the Environmental Indemnity Agreement,
with the same degree of recourse liability as Borrower and subject to the same
exculpatory provisions;

         (d)     Lender's receipt of a title policy complying with the
requirements of the Commitment, updated to the date of the Permitted Transfer,
evidencing that such Permitted Transfer will not adversely affect Lender's first
and prior lien on the Property or any other rights or interests granted to
Lender under the Loan Documents;

         (e)     Lender's receipt of opinions of counsel acceptable to Lender
that all previous opinions, pertaining to Borrower are true with respect to the
Permitted Transferee and the Permitted Transferee has duly assumed the Loan
Documents, and same are valid and enforceable against Permitted Transferee and
the Property; and that Borrower has the requisite power and authority to
properly transfer the Property;

         (f)     the Property having maintained a Debt Coverage Ratio of not
less than 200 percent for the 12 month period ending 30 days before the date of
the Permitted Transfer and the Property having a projected Debt Coverage Ratio
for the next 12 months based on the most recently approved and certified
financial statements and annual rent roll of not less than 200 percent;

         (g)     the Permitted Transferee paying to Borrower at least 45 percent
cash down payment on the date of the Permitted Transfer;

                                        2
<Page>

         (h)     Lender's receipt and approval of the purchase and sale contract
and copies of the proposed transfer documentation;

         (i)     Lender's receipt and approval of the Permitted Transferee's
resume and financial statements; and

         (j)     Lender's receipt and approval of an updated MAI appraisal by an
appraiser satisfactory to Lender (prepared at Borrower's expense) specifically
confirming a loan to value ratio of no more than 55 percent.

         In addition, Borrower shall have the right, provided there is no
default or an event which, with notice or the passage of time, or both, could
result in a default by Borrower under the Loan Documents, to make a Permitted
Transfer to INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland
corporation ("Member"), the sole member of Inland Western Southlake GP, L.L.C.,
the general partner of Borrower, so long as (x) Borrower pays to Lender a
transfer fee equal to $5,000, (y) the Member assumes, in form and substance
satisfactory to Lender, all obligations of Borrower under the Loan Documents,
including, without limitation, the Environmental Indemnity Agreement, with the
same degree of recourse liability as Borrower and subject to the same
exculpatory provisions, and (z) the conditions and requirements set forth in
subparagraphs 4(b), (d) and (e) above are satisfied.

         Net Operating Income shall be certified to be true and correct by the
managing general partner, manager or chief financial officer of Borrower.

         5.      RIGHT TO CHANGE OWNERSHIP INTERESTS IN BORROWER.
Notwithstanding the provisions contained in Section 1.08 and other applicable
provisions of the Deed of Trust, so long as Member maintains its status as a
Real Estate Investment Trust (a "REIT") any encumbrance, security interest or
assignment or transfer of ownership of all types and classes of the shares of
Member shall not constitute an improper encumbrance or transfer.

         6.      DAMAGE TO PROPERTY. With regard to the provisions contained in
Section 1.04(A) of the Deed of Trust requiring Borrower to notify Lender of
damage to the Property, the cost threshold for notification shall be increased
to One Hundred Thousand Dollars ($100,000). With regard to the provisions
contained in Section 1.04(B) and 1.04(C) of the Deed of Trust regarding the
estimated cost of restoration, the threshold amounts shall be increased to Two
Hundred Fifty Thousand Dollars ($250,000).

         7.      INSURANCE. Lender hereby approves the insurance evidenced by
the certificates attached as EXHIBIT A hereto.

         8.      PROPERTY MANAGER. Lender hereby approves INLAND SOUTHWEST
MANAGEMENT CORP. as manager of the Property, subject to its execution of the
letter attached as EXHIBIT B hereto.

         9.      PURCHASE OPTION. Lender acknowledges that Borrower has an
option to purchase (the "Option") the fee interest in the parcel referred to as
"Tract II" in the Ground Lease, and that Borrower has exercised the Option.
Simultaneous with Borrower's acquisition of fee simple title in Tract II (the
"Acquisition"), Borrower and Lender shall execute and record, as applicable,

                                        3
<Page>

amendments to the Loan Documents (collectively, the "Amendment Documents")
necessary to reflect a conversion of Lender's first lien against Borrower's
leasehold interest in the Property into a first lien deed of trust with respect
to Tract II (the "Conversion"). In addition, simultaneous with the Acquisition,
Borrower shall deliver to lender (i) a title insurance policy (or an endorsement
to the title policy) in the form required by the Commitment, and insuring
Lender's first lien priority against Borrower's fee simple interest in Tract II
and Lender's continued first lien priority in the remainder of the Property; and
(ii) legal opinions reasonably acceptable to Lender; and Borrower's failure to
so deliver these items and the Amendment Documents, shall constitute an Event of
Default under the Loan Documents.

         10.     REPAIR OBLIGATION. Borrower shall repair or resolve, or cause
to be repaired or resolved, those items set forth on EXHIBIT C hereto (the
"Repairs"), in a manner and with results that are reasonably satisfactory to
Lender. Borrower's failure to effect the Repairs within one (1) year after the
Disbursement Date, in a manner and with results that are reasonably satisfactory
to Lender shall be an Event of Default under the Note, the Deed of Trust and
other Related Agreements.

         11.     RIGHTS PERSONAL TO BORROWER. This Letter Agreement shall be
binding upon Borrower and its successors and assigns, except that the rights
granted to Borrower in paragraphs 2 -- 9 of this Letter Agreement shall be
personal to Borrower and shall not inure to the benefit of any subsequent owner
of the Property. In the event Lender transfers all or any part of the Loan or
any interest in the Loan Documents to any other person or entity, Lender agrees
to notify such transferee(s) of the existence of this Letter Agreement and the
fact that it is binding upon Lender's successors and assigns by delivering such
transferee(s) a true, correct and complete copy of this Letter Agreement
concurrently with such transfer accompanied by a letter of transmittal from
Lender advising such transferee(s) of the binding nature of the provisions of
this Letter Agreement. Lender will send a copy of its letter of transmittal and
the enclosure to Borrower, and Borrower's name will be shown on the face of the
original letter of transmittal as an addressee thereof.

                                   Very truly yours,

                                   ALLSTATE LIFE INSURANCE COMPANY,
                                   an Illinois insurance corporation

                                   By:  /s/ [ILLEGIBLE]
                                      ----------------------------------

                                   By:  /s/ [ILLEGIBLE]
                                      ----------------------------------
                                       Its Authorized Signatories

                                   Accepted and agreed:

                                   INLAND WESTERN SOUTHLAKE LIMITED
                                   PARTNERSHIP, an Illinois limited partnership

                                        4
<Page>

                                   By:  INLAND WESTERN SOUTHLAKE GP, L.L.C.
                                        a Delaware limited liability company
                                        Its general partner

                                        By: INLAND WESTERN RETAIL REAL ESTATE
                                            TRUST, INC., a Maryland corporation,
                                            Its sole member

                                            By:    /s/ [ILLEGIBLE]
                                                --------------------------------
                                            Its:   Asst Secretary
                                                --------------------------------

Dated: August 19,2004

                                        5
<Page>

                                    EXHIBIT A

                             INSURANCE CERTIFICATES

<Page>

ACORD(TM) EVIDENCE OF COMMERCIAL PROPERTY INSURANCE            DATE (MM/DD/YYYY)
                                                               08/30/04

THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW HAS BEEN ISSUED, IS IN
FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY.

PRODUCER NAME, CONTACT            PHONE (A/C. No. Ext): 1-630-773-3800
PERSON AND ADDRESS                FAX (A/C. No):        1-630-285-4021
                                  E-MAIL ADDRESS:       michele_moore-IL@ajg.com
Attn:  Michele Moore
Arthur J. Gallagher & Co.
Two Pierce Place
Itasca, IL 60143-3141

CODE:                                  SUB CODE:

AGENCY CUSTOMER ID #:

NAMED INSURED AND ADDRESS
Inland Western Southlake Limited Partnership,
an Illinois limited partnership
c/o Inland Western Retail Real Estate Trust, Inc.
2901 Butterfield Road
Oak Brook, IL 60523

COMPANY NAME AND ADDRESS                                     NAIC NO: 24767

St Paul Fire & Marine Ins Co

             IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH

LOAN NUMBER                    POLICY NUMBER
122-520                        CK01206068

EFFECTIVE DATE                 EXPIRATION DATE        / / CONTINUED UNTIL
12/08/03                       12/08/04                   TERMINATED IF CHECKED

ADDITIONAL NAMED INSURED(S)            THIS REPLACES PRIOR EVIDENCE DATED:

PROPERTY INFORMATION (Use additional sheets if more space is required)

LOCATION/DESCRIPTION
Property Name: Gateway Plaza-Southlake, TX, 2900-3100 Southlake Boulevard,
Southlake, TX 76092

COVERAGE INFORMATION

CAUSE OF LOSS FORM

/ / BASIC

/ / BROAD

/X/ SPECIAL

/ / OTHER

COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ 100,000,000

DED: 10,000

<Table>
<Caption>
                                                     YES  NO
                                                     ---  --
<S>                                                  <C>  <C> <C>
BUSINESS INCOME/RENTAL VALUE                         /X/      If YES,  LIMIT: 6,906,672  /X/ Actual Loss Sustained  # of months: 12
BLANKET COVERAGE                                     /X/      If YES, indicate amount of insurance on properties
                                                              identified above: $26,800,000
TERRORISM COVERAGE                                   /X/      Attach signed Disclosure Notice / DEC
   IS COVERAGE PROVIDED FOR "CERTIFIED ACTS" ONLY?   /X/      If YES,  SUB LIMIT: Included      DED: 10,000
   IS COVERAGE A STAND ALONE POLICY?                      /X/ If YES,      LIMIT:               DED:
   DOES COVERAGE INCLUDE DOMESTIC TERRORISM?         /X/      If YES,  SUB LIMIT: Included      DED: 10,000
COVERAGE FOR MOLD                                    /X/      If YES,      LIMIT: 25,000        DED: 10,000
MOLD EXCLUSION (If "YES", specify organization's     /X/       G0492
  form used)
REPLACEMENT COST                                     /X/
AGREED AMOUNT                                        /X/
COINSURANCE                                               /X/ If YES,          %
EQUIPMENT BREAKDOWN (If Applicable)                       /X/ If YES,      LIMIT:               DED:
LAW AND ORDINANCE - Coverage for loss to
                    undamaged portion of building    /X/      If YES,      LIMIT: 2,500,000     DED: 10,000
                  - Demolition Costs                 /X/      If YES,      LIMIT: 2,500,000     DED: 10,000
                  - Incr. Cost of Construction       /X/      If YES,      LIMIT: 2,500,000     DED: 10,000
EARTHQUAKE (If Applicable)                           /X/      If YES,      LIMIT: SeeAddendum   DED: SeeAddendum
FLOOD (If Applicable)                                /X/      If YES,      LIMIT: SeeAddendum   DED: SeeAddendum
WIND / HAIL (If Separate Policy)                     /X/      If YES,      LIMIT: Included      DED: SeeAddendum
PERMISSION TO WAIVE SUBROGATION PRIOR TO LOSS        /X/
</Table>

REMARKS - Including Special Conditions (Use additional sheets if more space is
required)

Allstate Life Insurance Co., ISAOA is shown as mortgagee solely with respect to
property coverage and a loss payee solely with respect to loss of rents coverage
as evidenced herein as required by written contract with respect to the premises
as shown above under loan number 122-520.

CANCELLATION

THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH
POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE
ADDITIONAL INTEREST IDENTIFIED BELOW 30 DAYS WRITTEN NOTICE, AND WILL SEND
NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN
ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW.

ADDITIONAL INTEREST

NAME AND ADDRESS                        LENDER SERVICING AGENT NAME AND ADDRESS

Allstate Life Insurance Co., ISAOA
c/o Holliday Fenoglio Fowler, LP

Mail Code NC1-005-22-04
121 Trade Street
Charlotte, NC 28202
USA

/X/ MORTGAGEE                           AUTHORIZED REPRESENTATIVE

/X/ LOSS PAYEE                          /s/ [ILLEGIBLE]

ACORD 28 (2003/10) michele                            (C) ACORD CORPORATION 2003
                   2057646

                         Powered By CERTIFICATESNOW(TM)

<Page>

                         ADDENDUM TO ACORD 25 (2003/10)

TOTAL LOSS LIMIT INCLUDES:  Real Property, Personal Property, Loss of
                            Rents and Terrorism

ADDITIONAL COVERAGE INFORMATION:

Flood Zone B: $10,000,000 limit subject to 2% of total insurable value or
                                  $100,000 per location deductible

Flood Zone C: $15,000,000 limit subject to a $25,000 deductible

Earthquake - excluding the State of California:

MMI Zones 1-6: $15,000,000 limit subject to a $25,000 deductible

MMI Zones 7-9: $10,000,000 limit subject to 2% of total insurable value or
                                  $200,000 deductible

MMI Zones 10-12: $5,000,000 limit subject to 5% of total insurable value or
                                  $500,000 deductible

Windstorm under 1 mile from coast: No Coverage

Windstorm 1-25 miles from the Gulf of Mexico or Atlantic Coast: 2% of total
                                  insurable value or $10,000 deductible

Hail deductible: 2% of building and rents total insurable value or $50,000
                                  deductible per location

<Page>

ACORD(TM) CERTIFICATE OF LIABILITY INSURANCE                   DATE (MM/DD/YYYY)
                                                               08/30/04

PRODUCER                                   1-630-773-3800

Arthur J. Gallagher & Co.
Two Pierce Place
Itasca, IL 60143-3141
Attn: Michele Moore

INSURED
Inland Western Southlake Limited Partnership,
an Illinois limited partnership
c/o Inland Western Retail Real Estate Trust, Inc.
2901 Butterfield Road
Oak Brook, IL 60523

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS
UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER
THE COVERAE AFFORDED BY THE POLICIES BELOW.

INSURERS AFFORDING COVERAGE                          NAIC #
INSURER A:   National Surety Corp                    21881
INSURER B:   St Paul Fire & Marine Ins Co            24767
INSURER C:
INSURER D:
INSURER E:

COVERAGES

THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED
ABOVE FOR THE POLICY PEROID INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR
CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES
DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

<Table>
<Caption>
INSR  ADD'L                                                        POLICY EFFECTIVE  POLICY EXPIRATION
LTR   INSRD       TYPE OF INSURANCE               POLICY NUMBER     DATE (MM/DD/YY)   DATE (MM/DD/YY)              LIMITS
----  -----  ---------------------------------  -----------------  ----------------  ----------------- -----------------------------
 <S>  <C>    <C>                                <C>                    <C>               <C>           <C>              <C>
 B           GENERAL LIABILITY                  CK01206068             12/08/03          12/08/04      EACH OCCURRENCE  $  1,000,000
                                                                                                       DAMAGE TO RENTED
             /X/ COMMERCIAL GENERAL LIBILITY                                                           PREMISES (Ea
                                                                                                       occurence)       $     50,000
             / / / / CLAIMS MADE /X/ OCCUR                                                             MED EXP (Any one
                                                                                                       person)          $      1,000
             / / ________________________                                                              PERSONAL & ADV
                                                                                                       INJURY           $  1,000,000
             / / ________________________                                                              GENERAL
                                                                                                       AGGREGATE        $  2,000,000
             GEN'L AGGREGATE LIMIT APPLIES PER:                                                        PRODUCTS - COMP/
             / / POLICY  / / PROJECT   /X/ LOC                                                         OP AGG           $  1,000,000

             AUTOMOBILE LIABILITY                                                                      COMBINED SINGLE
             / / ANY AUTO                                                                              LIMIT
                                                                                                       (Ea accident)    $
             / / ALL OWNED AUTOS                                                                       BODILY INJURY
             / / SCHEDULED AUTOS                                                                       (Per person)     $
             / / HIRED AUTOS                                                                           BODILY INJURY
             / / NON-OWNED AUTOS                                                                       (Per accident)   $
             / /_________________________                                                              PROPERTY DAMAGE
             / /                                                                                       (Per accident)   $
                                                                                                       AUTO ONLY - EA
             GARAGE LIABILITY                                                                          ACCIDENT         $
                                                                                                                EA ACC  $
             / / ANY AUTO                                                                              OTHER THAN  AGG  $
             / /                                                                                       AUTO ONLY

 A           EXCESS/UMBRELLA LIABILITY          XEK85878874            12/08/03          12/08/04      EACH OCCURRENCE  $ 25,000,000
             /X/ OCCUR / / CLAIMS MADE                                                                 AGGREGATE        $ 25,000,000
                                                                                                                        $
             / / DEDUCTIBLE                                                                                             $
             / / RETENTION      $                                                                                       $

      WORKERS COMPENSATION AND                                                                         / / WC     / /
      EXPLOYERS' LIABILITY                                                                             STATUTORY  OTHER
                                                                                                       LIMITS

      ANY PROPRIETOR/PARTNER/EXECUTIVE  INCL                                                           E.L. EACH
                                                                                                       ACCIDENT         $
      OFFICER/MEMBER EXCLUDED?         EXCL                                                            E.L. DISEASE -
                                                                                                       EA EMPLOYEE      $
      If yes, describe under                                                                           E.L. DISEASE -
      SPECIAL PROVISIONS below                                                                         POLICY LIMIT     $

      OTHER
</Table>

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY
ENDORSEMENT / SPECIAL PROVISIONS

Property Name: Gateway Plaza - Southlake, TX, 2900-3100 Southlake Boulevard,
Southlake, TX 76092 Allstate Life Insurance Co., ISAOA is shown as an additional
insured solely with respect to general liability coverage as evidenced herein as
required by written contract with respect to the premises as shown above under
loan number 122-520.

CERTIFICATE HOLDER

Allstate Life Insurance Co., ISAOA
c/o Holliday Fenoglio Fowler, LP

Mail Code NC1-005-22-04
121 Trade Street
Charlotte, NC 28202
USA

CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE
TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE
NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRESENTATIVES.

AUTHORIZED REPRESENTATIVE
                                 /s/ [ILLEGIBLE]

ACORD 25 (2001/08) michele                            (C) ACORD CORPORATION 2003
                   2057638

                         Powered By CERTIFICATESNOW(TM)

<Page>

                                    IMPORTANT

If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be
endorsed. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,
certain policies may require an endorsement. A statement on this certificate
does not confer rights to the certificate holder in lieu of such endorsement(s).

                                   DISCLAIMER

The Certificate of Insurance on the reverse side of this form does not
constitute a contract between the issuing insurer(s), authorized representative
or producer, and the certificate holder, nor does it affirmatively or negatively
amend, extend or alter the coverage afforded by the policies listed thereon.

ACORD 25 (2001/08)

<Page>

                                    EXHIBIT B

                             PROPERTY MANAGER LETTER

                        INLAND SOUTHWEST MANAGEMENT CORP.

                                 August 19, 2004

Allstate Life Insurance Company
Allstate Plaza South, Suite G5C
3075 West Sanders Road
Northbrook, Illinois 60062
Attention: Commercial Mortgage Division

             Re:  Allstate Life Insurance Company
                  Loan No. 122520
                  Gateway Plaza Shopping Center
                  State Highway 114 & Southlake Boulevard
                  Southlake, Texas (the "Property")

Ladies and Gentlemen:

         The undersigned ("Manager") is the current property manager of the
Property pursuant to that certain Management Agreement (the "Agreement") dated
July 21, 2004, by and between INLAND WESTERN SOUTHLAKE LIMITED PARTNERSHIP, An
Illinois limited partnership ("Owner") and Manager. In consideration of your
making the Loan to Owner (Manager being an affiliate of Owner), Manager
acknowledges and agrees to the following:

         1.      Allstate, in its sole discretion, may terminate the Agreement
                 by notice to Manager upon acquisition by Allstate of title to
                 the Property by foreclosure, deed in lieu of foreclosure, or
                 other transfer of the Property or upon Allstate otherwise
                 obtaining possession of the Property by any lawful means. Upon
                 the appointment of a receiver or court appointed officer,
                 either Allstate or such receiver or officer may terminate the
                 Agreement in its sole discretion by notice to Manager.

         2.      Manager waives any right to create a lien against the Property
                 to secure payment of unpaid management fees.

         3.      Upon the occurrence of, and during the continuation of, a
                 default under any of the documents evidencing the Loan which
                 has not been cured in Allstate's sole judgment, all management
                 fees paid or payable to Manager thereafter shall be subordinate
                 to amounts owed to Allstate under such Loan documents.

<Page>

         4.      Upon the occurrence of, and during the continuation of, a
                 default under any of the documents evidencing the Loan which
                 has not been cured in Allstate's sole judgment, all management
                 fees and other sums received by Manager thereafter in
                 connection with management of the Property shall be held in
                 trust for the benefit of Allstate.

         5.      Until Allstate elects to terminate the Agreement as provided
                 herein, Manager will perform all of its obligations, covenants,
                 conditions and agreements under the Agreement for the benefit
                 of Allstate and its successors and assigns, so long as Allstate
                 performs the duties and obligations of Owner under the
                 Agreement accruing after the date Allstate exercises its rights
                 under the Deed of Trust.

                                             INLAND SOUTHWEST MANAGEMENT CORP.

                                             By:
                                                --------------------------
                                                 Its
                                                    ----------------------

                                        2

<Page>

                                    EXHIBIT C

                                     REPAIRS

1.   Fill eroded hole with cement grout at the base of the wall along the east
     side of Suite 3030 and re-grade common grassed area to promote drainage
     away from the building.

2.   Replace the damaged section of downspout behind Suite 2915.

3.   Install a storm drain at low lying area of concrete pavement behind Suite
     2905 and connect to existing storm water sewer system.

4.   Install an underground French Drain system in Kohl's parking lot to
     mitigate groundwater seepage across pavement surface.

5.   Seal approximate 1-inch gap between sidewalk and curb line along the
     southwest side of Suite 2900.

6.   Seal the cracks in the retaining wall south of Kohl's (Gateway Drive) and
     monitor for additional movement.

7.   Retain a roof consultant to provide a detailed inspection and recommend
     repairs to the leaking roof systems atop Michael's, Mattress Firm, Old
     Navy, T.J. Maxx, Rack Room, Ulta, Calico Comers, and Fitness Headquarters.

8.   Start up roof-top air conditioning systems to verify operation in Suites
     2905, 2915, and 2960-140.

9.   Install roof-top air conditioning systems atop Suite Nos. 2911 (9,000 SF)
     and 2810 (2,000 SF).

10.  Repair "yellow tagged" fire sprinkler systems in Suite 2901 and 2930.

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