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                                                                  EXHIBIT 10.186

WHEN RECORDED RETURN TO:

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

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR
STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
LICENSE NUMBER.

                        DEED OF TRUST, SECURITY AGREEMENT
                             AND ASSIGNMENT OF RENTS
                           LOAN NOS. 753971 AND 753972

           THE SECURED PROMISSORY NOTE 2 SECURED BY THIS DEED OF TRUST
                      CONTAINS AN ADJUSTABLE INTEREST RATE

     A.   THIS DEED OF TRUST (as the same may from time to time hereafter be
modified, supplemented or amended, this "DEED OF TRUST") is made as of June 22,
2004, by INLAND WESTERN SAN ANTONIO HUEBNER OAKS LIMITED PARTNERSHIP, an
Illinois limited partnership, having a principal place of business and post
office address at 2901 Butterfield Road, Oak Brook, Illinois 60523, "BORROWER"
("Borrower" to be construed as "Borrowers" if the context so requires), to S. P.
Franzenburg, of 801 Grand Avenue, Des Moines, Iowa 50392-1360, ("TRUSTEE"), as
Trustee for the benefit of PRINCIPAL LIFE INSURANCE COMPANY, an Iowa
corporation, having a principal place of business and post office address c/o
Principal Real Estate Investors, LLC, at 801 Grand Avenue, Des Moines, Iowa
50392-1450, "LENDER".

                              W I T N E S S E T H:

     B.   Borrower is justly indebted to Lender for money borrowed (the "LOAN")
in the original principal sum of Forty Eight Million and 00/100 Dollars
($48,000,000.00) (the "LOAN AMOUNT") evidenced by (i) Borrower's Secured
Promissory Note 1 (Loan No. 753971) in the principal amount of $31,723,000.00
and (ii) Borrower's Secured Promissory Note 2 (Loan No. 753972) in the principal
amount of $16,277,000.00, with each of such notes bearing even date herewith,
made payable and delivered to Lender (as may be modified, amended, supplemented,
extended or consolidated in writing and any note(s) issued in exchange therefor
or replacement thereof) (collectively, the "NOTE") in which Note Borrower
promises to pay to Lender the Loan Amount, together with all accrued and unpaid
interest thereon, interest accrued at the Default

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Rate (if any), Late Charges (if any), the Make Whole Premium (if any), all loans
and future advances made by Lender to Borrower, and all other obligations and
liabilities due or to become due to Lender pursuant to the Loan Documents and
all other amounts, sums and expenses paid by or payable to Lender pursuant to
the Loan Documents and the Environmental Indemnity (collectively the
"INDEBTEDNESS") until the Indebtedness has been paid, but in any event, the
unpaid balance (if any) remaining due on the Note shall be due and payable on
July 1, 2010, or such earlier date resulting from the acceleration of the
Indebtedness by Lender (the "MATURITY DATE"). Capitalized terms used herein and
not otherwise defined shall have those meanings given to them in the other Loan
Documents. Each secured promissory note is equally and ratably secured by this
Deed of Trust, without priority of one over the other.

     C.   NOW, THEREFORE, to secure the payment of the Indebtedness in
accordance with the terms and conditions of the Loan Documents, and all
extensions, modifications, and renewals thereof and the performance of the
covenants and agreements contained therein, and also to secure the payment of
any and all other Indebtedness, direct or contingent, that may now or hereafter
become owing from Borrower to Lender in connection with the Loan Documents, and
in consideration of the Loan Amount in hand paid, receipt of which is hereby
acknowledged, Borrower does by these presents grant, bargain, sell, assign and
convey unto Trustee, its successors and assigns forever, in trust with power of
sale that certain real estate located in the County of Bexar, State of Texas
more particularly described in EXHIBIT A attached hereto and made a part hereof
(the "LAND"), which Land, together with the following described property, rights
and interests, is collectively referred to herein as the "PREMISES".

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

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

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

     G.   Together with any and all buildings and improvements of every kind and
description now or hereafter erected or placed on the said Land and all of
Borrower's right, title and interest in all materials intended for construction,
reconstruction, alteration and repairs of such buildings and improvements now or
hereafter erected thereon, all of which materials shall be deemed to be included
within the Premises immediately upon the delivery thereof to the Premises, and
all fixtures now or hereafter owned by Borrower and attached to or contained in
and used in connection with the Premises including, but not limited to, all
machinery, motors, elevators, fittings, radiators, awnings, shades, screens, and
all plumbing, heating, lighting,

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ventilating, refrigerating, incinerating, air-conditioning and sprinkler
equipment and fixtures and appurtenances thereto; and all items of furniture,
furnishings, equipment and personal property owned by Borrower used or useful in
the operation of the Premises; and all renewals or replacements of all of the
aforesaid property owned by Borrower or articles in substitution therefor,
whether or not the same are or shall be attached to said buildings or
improvements in any manner (collectively, the "IMPROVEMENTS"); it being mutually
agreed, intended and declared that all the aforesaid property owned by Borrower
and placed by it on the Land or used in connection with the operation or
maintenance of the Premises shall, so far as permitted by law, be deemed to form
a part and parcel of the Land and for the purpose of this Deed of Trust to be
Land and covered by this Deed of Trust, and as to any of the property aforesaid
which does not form a part and parcel of the Land or does not constitute a
"fixture" (as such term is defined in the Uniform Commercial Code) this Deed of
Trust is hereby deemed to be, as well, a security agreement under the Uniform
Commercial Code for the purpose of creating hereby a security interest in such
property which Borrower hereby grants to Lender as secured party. Borrower
authorizes Lender at any time until the Indebtedness is paid in full, to prepare
and file any and all Uniform Commercial Code financing statements, amendments,
assignments, terminations and the like, necessary to create and/or maintain a
prior security interest in such property all without Borrower's execution of the
same.

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

     I.   Together with all funds now or hereafter held by Lender under any
escrow security agreement or under any of the terms hereof, including but not
limited to funds held under the provisions of paragraph 5 hereof, insurance
proceeds from all insurance policies required to be maintained by Borrower under
the Loan Documents (subject to the balance of the terms contained in this Deed
of Trust) and, subject to the provisions of paragraph 7 below, all awards,
decrees, proceeds, settlements or claims for damage now or hereafter made to or
for the benefit of Borrower by reason of any damage to, destruction of or taking
of the Premises or any part thereof, whether the same shall be made by reason of
the exercise of the right of eminent domain or by condemnation or otherwise (a
"TAKING").

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

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

     L.   Borrower further represents that (i) the Premises is not subject to
any casualty damage; (ii) Borrower has not received any written notice of any
eminent domain or

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condemnation proceeding affecting the Premises; and (iii) to the best of
Borrower's knowledge following due and diligent inquiry, there are no actions,
suits or proceedings pending, completed or threatened against or affecting
Borrower or any person or entity owning an interest (directly or indirectly) in
Borrower ("INTEREST OWNER(S)") or any property of Borrower or any Interest Owner
in any court or before any arbitrator of any kind or before or by any
governmental authority (whether local, state, federal or foreign) that,
individually or in the aggregate, could reasonably be expected by Lender to be
material to the transaction contemplated hereby.

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

     BORROWER COVENANTS AND AGREES AS FOLLOWS:

     1.   Borrower shall:

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

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

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

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

          (e)  manage, operate and maintain the Premises and keep the Premises,
               including but not limited to, the Improvements, in good condition
               and repair and free from mechanics' liens or other liens or
               claims for liens, provided however, that Borrower may in good
               faith, with reasonable diligence and upon written Notice to
               Lender within twenty (20) days after Borrower has knowledge of
               such lien or claim, contest the validity or amount of any such
               lien or claim and defer payment and discharge thereof during the
               pendency of such contest in the manner provided by law, provided
               that (i) such contest may be made without the payment thereof;
               (ii) such contest shall prevent the sale or forfeiture of the
               Premises or any part thereof, or any interest therein, to satisfy
               such lien or claim; (iii) Borrower shall have obtained a bond
               over such lien or claim from a bonding company acceptable to
               Lender which has the effect of removing such lien or collection
               of the claim or lien so contested; and (iv) Borrower shall pay
               all costs and expenses incidental to such contest; and further
               provided, that in the event of a final, non-appealable ruling or
               adjudication adverse to Borrower and provided the court of
               jurisdiction has not granted a stay of the enforcement of the
               ruling or judgment, Borrower shall promptly pay such claim or
               lien, shall indemnify and hold Lender and the Premises harmless
               from any loss for damage arising from such contest and shall take
               whatever action necessary to prevent sale, forfeiture or any
               other loss or damage to the Premises or to the Lender;

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

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

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

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

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

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

          (k)  remain a Single Purpose Entity (hereinafter defined); and

          (l)  on or before June 30 of each year during the term of the Loan,
               Borrower shall deliver to Lender a property inspection report
               covering damage related to foundation or slab movement, water
               infiltration and mold at the Premises, which report shall be
               prepared by a consultant and based upon a scope of work approved
               by Lender in its reasonable discretion. Borrower shall take all
               measures to correct any material items identified in such report
               as reasonably determined by Lender.

          As used herein, the term "SINGLE PURPOSE ENTITY" means: a corporation,
          limited or general partnership, limited liability company, or business
          trust which, at all times until the Indebtedness is paid in full (i)
          will be organized solely for the purpose of owning the Premises, (ii)
          will not engage in any business unrelated to the ownership of the
          Premises, (iii) will not have any assets other than those related to
          the Premises, (iv) will not engage in, seek or consent to any
          dissolution, winding up, liquidation, consolidation or merger, and,
          except as otherwise expressly permitted by the Loan Documents, will
          not engage in, seek or consent to any asset sale, transfer of
          partnership, membership, shareholder, beneficial interests, or
          amendment of its limited partnership agreement, articles of
          incorporation, articles of organization, certificate of formation,
          operating agreement, trust agreement, or trust certificate (as
          applicable), (v) will not fail to correct any known misunderstanding
          regarding the separate identity of such Entity, (vi) without the
          unanimous consent of all of the partners, directors, members,
          beneficial owners and trustees, as applicable, will not with respect
          to itself or to any other Entity in which it has a direct or indirect
          legal or beneficial ownership interest (a) file a bankruptcy,
          insolvency or reorganization petition or otherwise institute
          insolvency proceedings or otherwise seek any relief under any laws
          relating to the relief from debts or the protection of debtors
          generally; (b) seek or consent to the appointment of a receiver,
          liquidator, assignee, trustee,

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          sequestrator, custodian or any similar official for such Entity or all
          or any portion of such Entity's properties; (c) make any assignment
          for the benefit of such Entity's creditors; or (d) take any action
          that might cause such Entity to become insolvent, (vii) will maintain
          its accounts, books and records separate from any other person or
          Entity, (viii) will maintain its books, records, resolutions and
          agreements as official records, (ix) has not commingled and will not
          commingle its funds or assets with those of any other person or
          Entity, (x) has held and will hold its assets in its own name, (xi)
          will conduct its business in its name, (xii) will maintain its
          financial statements, accounting records and other Entity documents
          separate from any other person or Entity, (xiii) will pay its own
          liabilities out of its own funds and assets, (xiv) will observe all
          corporate, limited liability company and partnership formalities, as
          applicable, (xv) has maintained and will maintain an arms-length
          relationship with its Affiliates, (xvi) if such Entity owns the
          Premises, will have no indebtedness other than the Indebtedness and
          commercially reasonable unsecured trade payables in the ordinary
          course of business relating to the ownership and operation of the
          Premises which are paid within sixty (60) days of the date incurred,
          (xvii) will not assume or guarantee or become obligated for the debts
          of any other person or Entity or hold out its credit as being
          available to satisfy the obligations of any other person or Entity,
          except for the Indebtedness, (xviii) will not acquire obligations or
          securities of its partners, members, trustees, beneficial owners or
          shareholders, (xix) will allocate fairly and reasonably shared
          expenses, including, without limitation, shared office space and uses
          separate stationery, invoices and checks, (xx) will not pledge its
          assets for the benefit of any other person or Entity, (xxi) will hold
          itself out and identify itself as a separate and distinct Entity under
          its own name and not as a division or part of any other person or
          Entity, (xxii) will not make loans to any person or Entity, (xxiii)
          will not identify its partners, members, shareholders, trustees,
          beneficiaries or any Affiliates of any of them as a division or part
          of it, (xxiv) will not enter into or be a party to, any transaction
          with its partners, members, shareholders, beneficiaries, trustees or
          its Affiliates except in the ordinary course of its business and on
          terms which are intrinsically fair and are no less favorable to it
          than would be obtained in a comparable arms-length transaction with an
          unrelated third party, (xxv) will pay the salaries of its own
          employees from its own funds, (xxvi) will maintain adequate capital in
          light of its contemplated business operations, (xxvii) if such Entity
          is a limited liability company, limited partnership, or business trust
          then such Entity shall continue and not dissolve whether as a
          consequence of bankruptcy or insolvency of one or more of the members,
          general partners, or trustees, as applicable, or otherwise, for so
          long as a solvent managing member, general partner, or trustee, as
          applicable, exists and, subject to applicable law, dissolution of the
          entity shall not occur so long as the entity remains owner of the
          Premises subject to the Deed of Trust. Such entity's organizational
          documents shall contain such provision.

     2.   Borrower shall not:

          (a)  except as required by applicable Legal Requirements, construct
               any building or structure nor make any alteration or addition
               (other than

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               normal repair and maintenance) to (i) the roof or any structural
               component of any Improvements on the Premises, or (ii) the
               building operating systems, including but not limited to, the
               mechanical, electrical, heating, cooling, or ventilation systems
               (other than replacement with equal or better quality and
               capacity), without the prior written consent of Lender not to be
               unreasonably withheld;

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

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

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

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

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

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

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

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

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

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

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

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

               (i)     a sale, assignment, transfer, conveyance or other
                       disposition (whether voluntary, involuntary or by
                       operation of law);
               (ii)    the creation, sufferance or granting of any lien,
                       encumbrance, security interest or collateral assignment
                       (whether voluntarily, involuntarily or by operation of
                       law), other than the lien hereof, the leases of the
                       Premises assigned to Lender, the Permitted Encumbrances,
                       the granting of a lien on a tenant's interest under any
                       Lease in accordance with the terms specifically set forth
                       therein, and those liens which Borrower is contesting in
                       accordance with the provisions of paragraph 1(e);
               (iii)   the issuance or other creation of ownership interests in
                       an entity;
               (iv)    the reconstitution or conversion from one entity to
                       another type of entity;
               (v)     a merger, consolidation, reorganization or any other
                       business combination; or
               (vi)    a conversion to or operation of all or any portion of the
                       Premises as a cooperative or condominium form of
                       ownership.

               "PERMITTED TRANSFER" shall mean:

               (i)     a minor (as determined by Lender) conveyance of an
                       interest in the Premises by Borrower, such as a utility
                       easement, and for which Lender has given its prior
                       written consent and imposed such conditions as Lender
                       deems advisable and appropriate;

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               (ii)    a sale, assignment, transfer or conveyance of all or any
                       portion of the Premises or an interest in the Premises
                       for which Borrower has complied with all of the Property
                       Transfer Requirements; or
               (iii)   any of the following Transfers for which Borrower has
                       complied with all of the Ownership Transfer Requirements
                       as applicable and Lender has given its prior written
                       consent (and in connection with such consent, Lender may
                       impose any conditions it wishes in its sole discretion):
                       (A)  a sale, assignment, transfer, or conveyance of an
                            ownership interest or interest therein;
                       (B)  the issuance or other creation of ownership
                            interests in an entity;
                       (C)  a reconstitution or conversion from one entity to
                            another type of entity;
                       (D)  a merger, consolidation, reorganization or any other
                            business combination;
               (iv)    with at least thirty (30) days advance written notice,
                       transfers of ownership interests in Borrower and entities
                       owning interests in Borrower between Inland Western
                       Retail Real Estate Trust, Inc., a Maryland corporation
                       ("IWRRET"), and its wholly owned affiliates for which
                       Borrower has complied with all of the Specific Transfer
                       Requirements - 1;
               (v)     with at least thirty (30) days advance written notice,
                       transfers of ownership interests in Borrower and/or
                       shares in entities owning interests in Borrower to
                       Qualified New Partners or Qualified New Members (as the
                       case may be) (hereinafter defined), for which Borrower
                       has complied with all of the Specific Transfer
                       Requirements - 2 (for purposes of this Permitted
                       Transfer, a "Qualified New Partner" or a Qualified New
                       Member" shall be defined as an institutional investor or
                       fund managed by an institutional investor having assets
                       of $100,000,000 or more);
               (vi)    with at least thirty (30) days advance written notice,
                       transfers of direct or indirect ownership interests in
                       Borrower and entities owning interests in Borrower and
                       IWRRET, and its wholly owned affiliates to a Qualified
                       Successor (hereinafter defined) and/or its wholly owned
                       affiliates for which Borrower has complied with all of
                       the Specific Transfer Requirements - 3 (for purposes of
                       this Permitted Transfer, a "Qualified Successor" shall be
                       defined as an entity with a tangible net worth of
                       $200,000,000 or more; a debt to equity ratio of 1.5 or
                       less; and management personnel experienced in the
                       ownership and management of retail properties similar to
                       the Premises); or
               (vii)   transfers of ownership interests in IWRRET.

               "PROPERTY TRANSFER REQUIREMENTS" are all of the following:

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

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

               3.      Receipt, at Borrower's expense, of a new standard loan
                       policy in a form approved by the insurance commissioner
                       of the state of Texas in the full amount of the Loan, in
                       form and by an issuer satisfactory to Lender, and which
                       insures this Deed of Trust to be a first and prior lien
                       subject only to those exceptions which were previously
                       approved by Lender and provides coverage against usury
                       and mechanic's liens. If usury coverage is not available,
                       Borrower shall provide, at Borrower's expense, a usury
                       opinion letter in form and substance and from counsel
                       acceptable to Lender;

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

               5.      Execution, delivery, acknowledgment and recordation, as
                       applicable, of new, revised and/or replacement assumption

                                       11
<Page>

                       agreements, loan modification agreements, indemnification
                       agreements, escrow security or property reserves
                       agreements, security instruments, financing statements,
                       UCCs, new or revised letters of credit and/or guarantees
                       in form and substance satisfactory to Lender;

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

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

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

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

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

               "SPECIFIC TRANSFER REQUIREMENTS - 1" are all of the following
               which Borrower agrees to provide to Lender prior to each proposed
               transfer: (i) a transfer fee of $2,000.00; (ii) all relevant
               documentation and information related to the organization,
               authority, and validity of the proposed ownership interest
               purchaser, transferee and the transaction in general; (iii) all
               documents and instruments of conveyance, transfer and assignment;
               (iv) at Lender's discretion, a reaffirmation of the obligations
               of the Guarantor(s) under the Guaranty; and (v) evidence of
               payment of all outside counsel fees, professional fees, title
               insurance fees, if any, and any

                                       12
<Page>

               and all other fees, costs and expenses related to the proposed
               transfer (provided that no assumption or transfer fee other than
               the $2,000 fee stated in (i) above shall be required).

               "SPECIFIC TRANSFER REQUIREMENTS - 2" are all of the following
               which Borrower agrees to provide to Lender prior to each proposed
               transfer: IWRRET or a wholly owned affiliate thereof (i) remains
               the sole general partner of the Borrower, (ii) (a) retains 51% or
               more of the ownership interest in the Borrower, or (b) retains
               ownership of 20% to 50% of the ownership interest in the Borrower
               subject to Lender's review and approval in each instance of the
               proposed transferee and the subject transaction; Lender's review
               of the proposed transferee and the subject transaction shall
               encompass various factors, including but not limited to,
               transferee's creditworthiness, financial strength, and real
               estate management expertise, as well as the proposed
               transaction's effect on the Premises, Borrower and the other
               security for the Loan, and (iii) otherwise retains operational
               and management control of Borrower as determined by Lender, and
               further provided Borrower provides Lender each of the following
               items prior to each proposed transfer: (a) a transfer fee equal
               to the greater of $5,000.00 or the product of the percentage
               ownership interest in Borrower to be transferred multiplied by
               one percent (1%) of the outstanding principal balance of the
               Loan; (b) all relevant documentation and information related to
               the organization, authority, and validity of the proposed
               ownership interest purchaser, transferee and the transaction in
               general; (c) all documents and instruments of conveyance,
               transfer and assignment; (d) a reaffirmation of the obligations
               of the Guarantor(s) under the Guaranty; and (e) evidence of
               payment of all outside counsel fees, professional fees, title
               insurance fees and any and all other fees, costs and expenses
               related to the proposed transfer (provided that no assumption or
               transfer fee other than the $5,000.00 fee stated in (a) above
               shall be required).

               "SPECIFIC TRANSFER REQUIREMENTS - 3" are all of the following
               which Borrower agrees to provide to Lender prior to each proposed
               transfer: (i) said transfers are made to accommodate either the
               merger of IWRRET with the Qualified Successor or the sale of a
               majority of IWRRET's assets to the Qualified Successor; (ii) the
               Qualified Successor retains direct or indirect ownership of 51%
               or more of the ownership interests in the Borrower; (iii) the
               Qualified Successor or its wholly owned affiliate remains the
               sole general partner of Borrower; and (iv) the Qualified
               Successor otherwise retains operational and management control of
               Borrower as determined by Lender, and further provided, Borrower
               provides Lender with each of the following items prior to the
               proposed transfer: (a) a transfer fee of $10,000.00; (b) all
               relevant documentation and information related to the
               organization, authority, and validity of the proposed ownership
               interest purchaser, transferee and the transaction in general;
               (c) all documents and instruments of conveyance, transfer and

                                       13
<Page>

               assignment; (d) a reaffirmation of the obligations of the
               Guarantor(s) under the Guaranty or assumption thereof by an
               individual(s) or entity(ies) acceptable to Lender in its sole
               discretion; and (e) evidence of payment of all outside counsel
               fees, professional fees, title insurance fees and any and all
               other fees, costs and expenses related to the proposed transfer
               (provided that no assumption or transfer fee other than the
               $10,000.00 fee stated in (a) above shall be required).

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

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

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

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

               then Borrower may in its discretion and upon the giving of
               written notice to Lender of its intended action and upon the
               furnishing to Lender of such security or bond as Lender may
               require, contest any such tax, assessment or charge in good faith
               and in the manner provided by law. All costs and expenses
               incidental to such contest shall be paid by Borrower. In the
               event of a ruling or adjudication adverse to Borrower, Borrower
               shall promptly pay such tax, assessment or charge. Borrower shall
               indemnify and save harmless the Lender and the Premises from any
               loss or damage arising from any such contest and shall, if
               necessary to prevent sale, forfeiture or any other loss or damage
               to the Premises or to Lender, pay such tax, assessment or charge
               or take whatever action is necessary to prevent any sale,
               forfeiture or loss.

                                       14
<Page>

     4.   (a)  Borrower shall at all times keep or cause to be kept in force (i)
               property insurance insuring all Improvements which now are or
               hereafter become a part of the Premises for perils covered by a
               causes of loss-special form insurance policy, including coverage
               against terrorism containing both replacement cost and agreed
               amount endorsements or equivalent coverage; (ii) commercial
               general liability insurance naming Lender as an additional
               insured protecting Borrower and Lender against liability for
               bodily injury or property damage occurring in, on or adjacent to
               the Premises in commercially reasonable amounts; (iii) boiler and
               machinery insurance if the property has a boiler or is an office
               building; (iv) rental value insurance for the perils specified
               herein for one hundred percent (100%) of the Rents (including
               operating expenses, real estate taxes, assessments and insurance
               costs which are lessee's liability) for a period of twelve (12)
               months; (v) builders risk insurance during all periods of
               construction; and (vi) insurance against all other hazards as may
               be reasonably required by Lender, including, without limitation,
               insurance against loss or damage by flood. Notwithstanding
               anything herein above to the contrary, if neither: (i) property
               insurance without an exclusion for terrorism, terrorist acts or
               similar perils ("Terrorism") nor; (ii) a separate policy insuring
               specifically against Terrorism is available at a cost which is in
               Lender's opinion is commercially reasonable, taking into
               consideration, among other things: (a) how properties similar in
               type, size, quality and location are insured with respect to
               Terrorism; and (b) the amount of coverage, premium and deductible
               applicable to such insurance, then Lender agrees to waive the
               requirement to provide insurance covering Terrorism until such
               coverage again becomes available at a cost, which in Lender's
               opinion is commercially reasonable.

          (b)  All insurance (including deductibles and exclusions) shall be in
               form, content and amounts approved by Lender and written by an
               insurance company or companies approved by Lender and rated A-,
               class size VIII or better in the most current issue of Best's
               Insurance Reports and which is licensed to do business in the
               state in which the Premises are located or a governmental agency
               or instrumentality approved by Lender. The policies for such
               insurance shall have attached thereto standard mortgagee clauses
               in favor of and permitting Lender to collect any and all proceeds
               payable thereunder and shall include a 30 day (except for
               nonpayment of premium, in which case, a 10 day) notice of
               cancellation clause in favor of Lender. All certificates of
               insurance (or policies if requested by Lender) shall be delivered
               to and held by Lender as further security for the payment of the
               Note and any other obligations arising under the Loan Documents,
               with evidence of renewal coverage delivered to Lender at least 15
               days before the expiration date of any policy. Borrower shall not
               carry or permit to be carried separate insurance, concurrent in
               kind or form and contributing in the event of loss, with any
               insurance required in the Loan Documents.

                                       15
<Page>

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

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

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

          (a)  Borrower will immediately notify Lender thereof in the manner
               provided in this Deed of Trust for the giving of notices. Lender
               shall have the right (which may be waived by Lender in writing)
               to settle and adjust any claim under such insurance policies
               required to be maintained by Borrower. In

                                       16
<Page>

               all circumstances, the proceeds thereof shall be paid to Lender
               and Lender is authorized to collect and to give receipts
               therefor. Borrower agrees and acknowledges that such proceeds
               shall be held by Lender without any allowance of interest and
               that in any bankruptcy proceeding of Borrower, all such proceeds
               shall be deemed to be "Cash Collateral" as that term is defined
               in Section 363 of the Bankruptcy Code. Provided that no Event of
               Default exists, Borrower shall have the right to participate in
               any settlement or adjustment; provided, however, that any
               settlement or adjustment shall be subject to the written approval
               of Lender, not to be unreasonably withheld.

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

               Notwithstanding anything hereinabove to the contrary,

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

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

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

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

                                       17
<Page>

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

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

          (c)  (i)     In the event that Borrower is to be reimbursed out of
                       the insurance proceeds or out of any award or payment
                       received with respect to a Taking, Lender shall from time
                       to time make available such proceeds, subject to the
                       following conditions: (a) there continues to exist no
                       Event of Default; (b) the delivery to Lender of
                       satisfactory evidence of the estimated cost of completion
                       of such repair and restoration work and any architect's
                       certificates, waivers of lien, contractor's sworn
                       statements, and other evidence of cost and of payment and
                       of the continued priority of the lien hereof over any
                       potential liens of mechanics and materialmen (including,
                       without limitation, title policy endorsements) as Lender
                       may reasonably require and approve; (c) the time required
                       to complete the repair and restoration work and for the
                       income from the Premises to return to the level it was
                       prior to the loss will not exceed the coverage period of
                       the rental value insurance required hereunder; (d) the
                       annual net cash flow (annual net operating income after
                       deduction for tenant improvements, leasing commissions,
                       annual replacement reserves, and a management fee) shall
                       equal or exceed 1.5 times the annual debt service on the
                       Note. Only net operating income from approved executed
                       Leases in effect on the Premises, having at least three
                       (3) years remaining prior to the expiration of their
                       term, with no uncured defaults, shall be used in Lender's
                       determination of the annual net cash flow; (e) Lender
                       approves the plans and specifications of such work before
                       such work is commenced if the estimated cost of
                       rebuilding and restoration exceeds 25% of the
                       Indebtedness or involves any structural changes or
                       modifications. If said plans and specifications
                       substantially comply with those previously approved by
                       Lender, Lender's approval shall not be unreasonably
                       withheld; (f) if the amount of any insurance proceeds,
                       award or other payment is insufficient to cover the cost
                       of restoring and rebuilding the Premises, Borrower shall
                       pay such cost in excess of such proceeds, award or other
                       payment before being entitled to reimbursement out of
                       such funds; (g) Borrower pays to Lender a non-refundable
                       processing fee equal to the greater of $5,000.00 or .25%
                       of the

                                       18
<Page>

                       amount of such proceeds within sixty (60) days of the
                       occurrence of any such damage or destruction and before
                       Lender disburses any proceeds; and (h) such other
                       conditions to such disbursements, in Lender's reasonable
                       discretion, as would be customarily required by a
                       construction lender doing business in the area where the
                       Premises is located or which are otherwise required by
                       any rating agency rating a securitization transaction
                       with respect to the Loan.

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

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

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

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

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

          (b)  Borrower shall cause the proceeds of any award or other payment
               made relating to a Taking, to be paid directly to Lender. Lender,
               in its sole and

                                       19
<Page>

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

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

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

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

          (b)  In making any payment hereby authorized relating to taxes or
               assessments or for the purchase, discharge, compromise or
               settlement of any prior lien,

                                       20
<Page>

               Lender may make such payment according to any bill, statement or
               estimate secured from the appropriate public office without
               inquiry into the accuracy thereof or into the validity of any
               tax, assessment, sale, forfeiture, tax lien or title or claim
               thereof or without inquiry as to the validity or amount of any
               claim for lien which may be asserted.

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

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

          (b)  Borrower, Interest Owner or any guarantor voluntarily brings or
               acquiesces to any of the following: (A) any action for
               dissolution, act of dissolution or dissolution or the like of
               Borrower, Interest Owner or any guarantor under the Federal
               Bankruptcy Code as now or hereafter constituted; (B) the filing
               of a petition or answer proposing the adjudication of Borrower,
               Interest Owner or any guarantor as a bankrupt or its
               reorganization or arrangement, or any composition, readjustment,
               liquidation, dissolution or similar relief with respect to it
               pursuant to any present or future federal or state bankruptcy or
               similar law; or (C) the appointment by order of a court of
               competent jurisdiction of a receiver, trustee or liquidator of
               the Premises or any part thereof or of Borrower, Interest Owner
               or any guarantor or of substantially all of the assets of
               Borrower, Interest Owner or any guarantor; or

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

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

          (d)  with respect to the matters not described in the other
               subparagraphs of this paragraph 10, failure to duly observe or
               perform any covenant, condition or agreement of the Borrower or
               any guarantor contained in this Deed of Trust, the Guaranty, the
               Note or the Assignment of Leases from Borrower

                                       21
<Page>

               to Lender or in any other instrument or agreement which evidences
               or secures the Loan (the "LOAN DOCUMENTS"), or in the
               Environmental Indemnity and such failure shall have continued for
               30 days after Notice specifying such failure is given by Lender
               to Borrower; or

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

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

          (f)  any representation when made by or on behalf of Borrower,
               Interest Owner or any guarantor regarding the Premises, the
               making or delivery of any of the Loan Documents or the
               Environmental Indemnity or in any material written information
               provided by or on behalf of Borrower, Interest Owner or any
               guarantor in connection with the Loan shall prove to be untrue or
               inaccurate in any material respect; or

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

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

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

          then, in each and every such case, the whole of said principal sum
          hereby secured shall, at the option of the Lender and without further
          notice to Borrower, become immediately due and payable together with
          accrued interest thereon, a Make Whole Premium calculated in
          accordance with the provisions of the Loan Documents and all other
          Indebtedness, and whether or not Lender has exercised

                                       22
<Page>

          said option, interest shall accrue on the entire principal balance and
          any interest or Make Whole Premium or other Indebtedness then due, at
          the Default Rate until fully paid or if Lender has not exercised said
          option, for the duration of any Event of Default.

     11.  Borrower agrees that if Lender accelerates the whole or any part of
          the principal sum hereby secured after the occurrence of an Event of
          Default, or applies any proceeds pursuant to the provisions hereof,
          Borrower waives any right to prepay the principal sum hereby secured
          in whole or in part without premium and agrees to pay, as yield
          maintenance protection and not as a penalty, a "MAKE WHOLE PREMIUM".
          However, in the event any proceeds from a casualty or Taking of the
          Premises are applied to reduce the principal balance under the Note,
          no Make Whole Premium shall be due so long as no Event of Default
          exists at the time of such application. The Make Whole Premium shall
          be the lesser of (i) the maximum amount which is allowable under Texas
          law limiting the amount of interest which may be contracted for,
          charged or received, after considering all other amounts constituting
          or deemed to constitute interest, and (ii) the greater of one percent
          (1%) of the principal amount to be prepaid or a premium calculated as
          follows:

          SECURED PROMISSORY NOTE 1 (LOAN NO. 753971):

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

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

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

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

                                       23
<Page>

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

          SECURED PROMISSORY NOTE 2 (LOAN NO. 753972):

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

               *As set forth above, the U.S. Treasury Issue applicable for each
               prepayment period is as follows:

<Table>
<Caption>
                       Prepayment Period                    U.S. Treasury Issue
                       -----------------                    -------------------
                       <S>                                           <C>
                       To July 1, 2007                               **

                       July 1, 2007 to July 1, 2010                  **
</Table>

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

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

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

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

                                       24
<Page>

     12.  Upon the occurrence of an Event of Default, Lender shall have the
          option of declaring all Indebtedness in its entirety to be immediately
          due and payable, and the liens and security interests evidenced hereby
          shall be subject to foreclosure in any manner provided for herein (to
          the extent not inconsistent with applicable law) or provided for by
          law, as Lender may elect.

     13.  Upon the occurrence of an Event of Default, Trustee, Trustee's
          successor or substitute, is authorized and empowered and it shall be
          Trustee's special duty at the request of Lender to sell the Premises
          or any part thereof situated in the State of Texas at the courthouse
          of any county in the State of Texas in which any part of the Premises
          is situated, at public auction to the highest bidder for cash. The
          sale shall take place between the hours of 10 o'clock a.m. and 4
          o'clock p.m. on the first Tuesday in any month, at such area of the
          courthouse as shall be designated from time to time by the
          commissioners court of the specified county (or, if not so designated
          by the commissioners court, at such other area in the courthouse as
          may be provided in the notice of sale hereinafter described) after
          having given notice of such sale in accordance with the statutes of
          the State of Texas then in force governing sales of real estate under
          powers conferred by deed of trust. Any sale made by Trustee hereunder
          may be as an entirety or in such parcels as Lender may request, and
          any sale may be adjourned by announcement at the time and place
          appointed for such sale without further notice except as may be
          required by law. The sale by Trustee of less than the whole of the
          Premises shall not exhaust the power of sale herein granted, and
          Trustee is specifically empowered to make successive sale or sales
          under such power until the whole of the Premises shall be sold; and,
          if the proceeds of such sale of less than the whole of the Premises
          shall be less than the aggregate of the Indebtedness and the expense
          of executing this trust as provided herein, this Deed of Trust and the
          lien hereof shall remain in full force and effect as to the unsold
          portion of the Premises just as though no sale had been made;
          provided, however, that Borrower shall never have any right to require
          the sale of less than the whole of the Premises, but Lender shall have
          the right, at its sole election, to request Trustee to sell less than
          the whole of the Premises. After each sale, Trustee shall make to the
          purchaser or purchasers at such sale good and sufficient conveyances
          in the name of Borrower, conveying the property so sold to the
          purchaser or purchasers in fee simple with general warranty of title,
          and shall receive the proceeds of said sale or sales and apply the
          same as herein provided. The power of sale granted herein shall not be
          exhausted by any sale held hereunder by Trustee or Trustee's
          substitute or successor, and such power of sale may be exercised from
          time to time as many times as Lender may deem necessary until all of
          the Premises has been duly sold and all Indebtedness has been fully
          paid. In the event any sale hereunder is not completed or is defective
          in the judgment of Lender, such sale shall not exhaust the power of
          sale hereunder and Lender shall have the right to cause a subsequent
          sale or sales to be made hereunder. If an Event of Default occurs
          under this Deed of Trust, Lender shall have the option to proceed with
          foreclosure in satisfaction of such item, either through judicial
          proceedings or by directing Trustee to proceed as if under a full
          foreclosure, conducting the sale as herein provided without declaring
          the entire Indebtedness secured by this Deed of Trust due and

                                       25
<Page>

          payable, and if sale is made because of a default of an installment
          payment or a portion of an installment, such sale may be made subject
          to the unmatured part of the remaining unpaid Indebtedness; and it is
          agreed that such sale, if so made, shall not in any manner affect the
          unmatured portion of the Indebtedness secured by this Deed of Trust,
          but as to such unmatured part, this Deed of Trust shall remain in full
          force and effect as though no sale had been made under the provisions
          of this paragraph. Several sales may be made hereunder without
          exhausting the right of sale for any unmatured part of the
          Indebtedness secured by this Deed of Trust. Any and all statements of
          fact or other recitals made in any deed or deeds given by Trustee or
          any successor or substitute appointed hereunder as to nonpayment of
          the Indebtedness secured hereby, or as the occurrence of an Event of
          Default, or as to Lender having declared all of such Indebtedness to
          be due and payable, or as to the request to sell, or as to notice of
          time, place and terms of sale and of the properties to be sold having
          been duly given, or as to the refusal, failure or inability to act of
          Trustee or any substitute or successor, or as to the appointment of
          any substitute or successor trustee, or as to any other act or thing
          having been duly done by Lender or by such Trustee, substitute or
          successor, shall be taken as prima facie evidence of the truth of the
          facts so stated and recited. Trustee, Trustee's successor or
          substitute, may appoint or delegate any one or more persons as agent
          to perform any act or acts necessary or incident to any sale held by
          Trustee, including the posting of notices and the conduct of sale, but
          in the name and on behalf of Trustee, Trustee's successor or
          substitute.

     14.  That portion of the Premises which is personal property is referred to
          herein as the "Collateral". To secure the payment of the Indebtedness,
          Borrower hereby grants to Lender a security interest in the Collateral
          together with all proceeds of the Collateral. Upon the occurrence of
          an Event of Default, Lender may exercise its rights of enforcement
          with respect to the Collateral under the Texas Business and Commerce
          Code, as amended, and in conjunction with, in addition to or in
          substitution for those rights and remedies:

          (a)  the Lender may enter upon the Premises to take possession of,
               assemble and collect the Collateral or to render it unusable; and

          (b)  the Lender may require Borrower to assemble the Collateral and
               make it available at a place the Lender designates which is
               mutually convenient to allow the Lender to take possession or
               dispose of the Collateral; and

          (c)  written notice mailed to Borrower as provided herein ten (10)
               days prior to the date of public sale of the Collateral or prior
               to the date after which private sale of the Collateral will be
               made shall constitute commercially reasonable notice; and

          (d)  any sale made pursuant to the provisions of this paragraph shall
               be deemed to have been a public sale conducted in a commercially
               reasonable manner if held contemporaneously with the sale of the
               Premises under power of sale as provided herein upon giving the
               same notice with respect to the

                                       26
<Page>

               sale of the Collateral hereunder as is required for such sale of
               the Premises under power of sale; and

          (e)  in the event of a foreclosure sale, whether made by the Trustee
               under the terms hereof, or under judgment of a court, the
               Collateral and the Premises may, at the option of the Lender, be
               sold as a whole; and

          (f)  it shall not be necessary that the Lender take possession of the
               Collateral or any part thereof prior to the time that any sale
               pursuant to the provisions of this paragraph is conducted and it
               shall not be necessary that the Collateral or any part thereof be
               present at the location of such sale; and

          (g)  prior to application of proceeds of disposition of the Collateral
               to the Indebtedness, such proceeds shall be applied to the
               reasonable expenses of retaking, holding, preparing for sale or
               lease, selling, leasing and the like and the reasonable
               attorney's fees and legal expenses incurred by the Lender; and

          (h)  any and all statements of fact or other recitals made in any bill
               of sale or assignment or other instrument evidencing any
               foreclosure sale hereunder as to nonpayment of the indebtedness
               or as to the occurrence of any default, or as to the Lender
               having declared all of such indebtedness to be due and payable,
               or as to notice of time, place and terms of sale and of the
               properties to be sold having been duly given, or as to any other
               act or thing having been duly done by the Lender, shall be taken
               as prima facie evidence of the truth of the facts so stated and
               recited; and

          (i)  the Lender may appoint or delegate any one or more persons as
               agent to perform any act or acts necessary or incident to any
               sale held by the Lender, including the sending of notices and the
               conduct of the sale, but in the name and on behalf of the Lender.

     15.  This instrument shall be effective as a mortgage as well as a deed of
          trust and upon the occurrence of an Event of Default may be foreclosed
          as to any of the Premises in any manner permitted by the laws of the
          State of Texas or of any other state in which any part of the Premises
          is situated, and any foreclosure suit may be brought by Trustee or by
          Lender. In the event a foreclosure hereunder shall be commenced by
          Trustee, or Trustee's substitute or successor, Lender may at any time
          before the sale of the Premises direct Trustee to abandon the sale,
          and may then institute suit for the collection of the Note and other
          Indebtedness, and for the foreclosure of this Deed of Trust. It is
          agreed that if Lender should institute a suit for the collection of
          the Note or any other Indebtedness and for the foreclosure of this
          Deed of Trust, Lender may at any time before the entry of a final
          judgment in said suit dismiss the same, and require Trustee, Trustee's
          substitute or successor, to sell the Premises in accordance with the
          provisions of this Deed of Trust.

                                       27
<Page>

     16.  Upon such sale, Trustee shall make, execute, and after due payment is
          made, deliver to the purchaser or purchasers a deed or deeds for the
          Premises or part thereof sold and shall apply the proceeds of the
          sale, at the election of Lender first, to all of the expenses of such
          sale including the reasonable expenses of this trust or the Trustee
          and the fees and costs of any attorneys for this trust, environmental
          audits, the Trustee or Lender, all of which shall accrue and become
          due from and after any Event of Default, together with any sums which
          Trustee or Lender shall have paid for procuring any abstract,
          certificate or report of title to the Premises and, second, to
          principal, interest and any other Indebtedness and all other sums or
          amounts due under the Note or agreed or provided to be paid by
          Borrower herein or in any other Loan Documents, all in such order as
          Lender may determine. The remainder of such proceeds, if any, shall be
          paid to Borrower or Borrower's successors or assigns, as their rights
          may appear.

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

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

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

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

                                       28
<Page>

          Neither Trustee nor Lender shall be obligated to perform or discharge,
          nor does either hereby undertake to perform or discharge, any
          obligation, duty or liability under any Lease. Except to the extent
          that the same is caused solely by Lender's gross negligence or willful
          misconduct, should Trustee or Lender incur any liability, loss or
          damage under any Leases, or under or by reason of the Assignment of
          Leases, or in the defense of any claims or demands whatsoever which
          may be asserted against Lender or Trustee by reason of any alleged
          obligations or undertakings on its part to perform or discharge any of
          the terms, covenants or agreements in any Lease, the amount thereof,
          including costs, expenses and reasonable attorneys' fees and costs,
          including reasonable attorneys' fees and costs on appeal, shall be
          added to the Indebtedness and secured hereby, WHETHER OR NOT SUCH
          LIABILITY, LOSS OR DAMAGE ARISES OR ALLEGEDLY ARISES FROM OR IN
          CONNECTION WITH ANY ACTS OF NEGLIGENCE OF LENDER OR UNDER ANY THEORY
          OF STRICT LIABILITY.

     19.  Upon the occurrence of an Event of Default, Trustee and Lender in the
          exercise of the rights and powers conferred upon them shall have the
          full power to use and apply the Rents, less costs and expenses of
          collection to the payment of or on account of the items listed in (a)
          - (c) below, at the election of Lender and in such order as Lender may
          determine as follows:

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

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

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

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

     20.  Upon the occurrence of any Event of Default, unless the same has been
          specifically waived in writing, Lender may apply to any court having
          jurisdiction

                                       29
<Page>

          for the appointment of a receiver of the Premises. Such appointment
          may be made either before or after sale, without notice, without
          regard to the solvency or insolvency of Borrower at the time of
          application for such receiver and without regard to the then value of
          the Premises or the adequacy of Lender's security. Lender may be
          appointed as such receiver. The receiver shall have power to collect
          the Rents during the pendency of any foreclosure proceedings and, in
          case of a sale, during the full statutory period of redemption, if
          any, as well as during any further times when Borrower, except for the
          intervention of such receiver, would be entitled to collect such
          Rents. In addition, the receiver shall have all other powers which
          shall be necessary or are usual in such cases for the protection,
          possession, control, management and operation of the Premises during
          the whole of said period. The court from time to time may authorize
          the receiver to apply the net income in its possession at Lender's
          election and in such order as Lender may determine in payment in full
          or in part of those items listed in paragraph 19.

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

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

                                       30
<Page>

               any remedy granted or delegated to Lender herein but will permit
               the exercise of such remedy as though any such laws had not been
               enacted. Borrower hereby further expressly waives to the full
               extent permitted by applicable law on behalf of itself and each
               and every person or entity acquiring any right, title or interest
               in or to all or any part of the Premises any and all rights of
               redemption from any sale or any order or decree of foreclosure
               obtained pursuant to provisions of this Deed of Trust.

     22.  As a source of future payment of the Indebtedness, Borrower hereby
          assigns to Lender directly and absolutely, and not merely
          collaterally, the interest of Borrower as lessor under the Leases of
          the Premises and the Rents payable under any Lease and/or with respect
          to the use of the Premises, or portion thereof, including any oil, gas
          or mineral lease, or any installments of money payable pursuant to any
          agreement or any sale of the Premises or any part thereof, subject
          only to a license, if any, granted by Lender to Borrower with respect
          thereto prior to the occurrence of an Event of Default, as set forth
          in the Assignment of Leases and Rents. Borrower has executed and
          delivered the Assignment of Leases which grants to Lender specific
          rights and remedies in respect of said Leases and governs the
          collection of Rents thereunder and from the use of the Premises, and
          such rights and remedies so granted shall be cumulative of those
          granted herein.

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

          Notwithstanding the direct and absolute assignment of the Rents, there
          shall be no pro tanto reduction of any portion of the Indebtedness
          except with respect to Rents actually received by Lender and applied
          by Lender toward payment of the Indebtedness.

     23.  All rights and remedies granted to Trustee or Lender in the Loan
          Documents shall be in addition to and not in limitation of any rights
          and remedies to which it is entitled in equity, at law or by statute,
          and the invalidity of any right or remedy

                                       31
<Page>

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

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

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

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

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

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

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

                                       32
<Page>

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

          (c)  In the event there has been an Event of Default or in the event
               Lender has formed a reasonable belief, based on its inspection of
               the Premises or other factors known to it, that Hazardous
               Materials may be present on the Premises, then Borrower grants to
               Lender and its respective agents, attorneys, employees,
               consultants, contractors and assigns an irrevocable license and
               authorization to conduct, at Borrower's expense, using
               Engineering Consulting Services, Ltd. or the firm of Borrower's
               choice, subject to Lender's reasonable approval, environmental
               tests of the Premises, including without limitation, a Phase I
               environmental audit, subsurface testing, soil and ground water
               testing, and other tests which may physically invade the Premises
               or facilities (the "TESTS"). The scope of the Tests shall be such
               as Lender, in its sole discretion, determines is necessary to (i)
               investigate the condition of the Premises, (ii) protect the
               security interests created under this Deed of Trust, or (iii)
               determine compliance with Environmental Laws, the provisions of
               the Loan Documents and the Environmental Indemnity and other
               matters relating thereto. Lender shall make reasonable efforts to
               ensure that the operations of the tenants are not disrupted.

          (d)  Provided no Event of Default has occurred, Lender will provide
               Borrower with reasonable notice of Lender's intent to enter,
               inspect and conduct the Tests provided for in this paragraph. In
               addition, Lender shall conduct such inspections and Tests during
               normal business hours and use reasonable efforts to minimize
               disruption of the lessees' business operations. The foregoing
               licenses and authorizations are intended to be a means of
               protection of Lender's security interest in the Premises and not
               as participation in the management of the Premises.

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

     31.  (a)  Borrower shall furnish to Lender within 90 days after the end of
               each fiscal year of Borrower, a detailed and analytical financial
               report prepared

                                       33
<Page>

               in accordance with generally accepted accounting principles
               consistently applied, certified in a manner and otherwise in form
               acceptable to Lender covering the full and complete operation of
               the Premises, including without limitation: (i) income and
               expense statements, and (ii) a report of the leasing status of
               the Premises as of the end of such period, identifying the
               lessee, square footage leased, rental amount, base rental
               increases, rental concessions and/or rental deferments, if any,
               and commencement and expiration dates under each Lease of the
               Premises and a listing of sales volumes attained by lessees of
               the Premises under percentage leases for the immediately
               preceding year, and (iii) within 15 days after written request by
               Lender, an aged accounts receivable report, an annual budget, and
               sales volumes for lessees under percentage leases. Such reports
               shall be prepared by an accountant who may be an employee of
               Borrower, or of an affiliate of Borrower, acceptable to Lender.
               In addition to the reports referred to herein, Borrower shall
               promptly supply any additional information or records relating to
               the Premises or its operation as Lender may from time to time
               reasonably request.

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

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

     32.  Each notice, consent, request, report or other communication under
          this Deed of Trust or any other Loan Document (each, a "NOTICE"),
          which any party hereto may desire or be required to give to the other
          shall be deemed to be an adequate and sufficient notice if given in
          writing and service is made by either (i) registered or certified
          mail, postage prepaid, in which case notice shall be deemed to have
          been received three (3) business days following deposit to U.S. mail;
          or (ii) nationally recognized overnight air courier, next day
          delivery, prepaid, in which case such notice shall be deemed to have
          been received one (1) business day following delivery to such
          nationally recognized overnight air courier; provided that service of
          a notice required by Tex. Property Code Section 51.002 shall be
          considered complete when the requirements of that statute are met. All
          Notices shall be addressed to Borrower at its address given on the
          first page hereof, or to Lender at c/o Principal Real Estate
          Investors, LLC, 801 Grand Avenue, Des Moines, Iowa 50392-1450, Attn:
          Commercial Real Estate Servicing, Loan No. 753972, or to such other
          place as any party may by written notice to the other parties
          designate as a place for service of notice. Borrower shall not be
          permitted to designate more than one place for service of Notice
          concurrently.

     33.  Lender, from time to time, may substitute another Trustee in place of
          the Trustee named herein, to execute the trusts hereby created; and
          upon such appointment,

                                       34
<Page>

          and without conveyance to the successor trustee, the successor trustee
          shall be vested with all the title, interest, powers, duties and
          trusts in the Premises hereby vested in or conferred upon Trustee
          herein named. Each such appointment and substitution shall be made by
          written instrument executed by the Lender containing reference to this
          Deed of Trust sufficient to identify it, which instrument need not be
          recorded but when recorded in the office of the County Recorder of the
          county or counties in which the Premises is situated, shall be
          conclusive proof of proper appointment of the successor trustee. The
          recital or statement, in any instrument executed by Trustee in
          pursuance of any of said trusts, of the due authorization of any agent
          of the Trustee executing the same shall for all purposes be conclusive
          proof of such authorization.

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

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

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

     37.  Trustee shall not be liable or responsible for its acts or omissions
          hereunder, INCLUDING TRUSTEE'S NEGLIGENCE, except for Trustee's own
          gross negligence or willful default, or be liable or responsible for
          any acts or omissions of any agent, attorneys or employee by him
          employed hereunder, if selected with reasonable care.

                                       35
<Page>

     38.  Trustee accepts this trust when this Deed of Trust executed and
          acknowledged is made a public record as provided by law. Trustee is
          not obligated to notify any party hereto of pending sale under any
          other deed of trust or of any action or proceeding in which Borrower,
          Lender, or Trustee shall be a party unless brought by Trustee.

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

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

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

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

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

     44.  Unless Lender shall otherwise direct in writing, Borrower shall appear
          in and defend all actions or proceedings purporting to affect the
          security hereunder, or any right or power of the Lender, excluding any
          Federal regulatory proceedings against Lender that are not instituted
          because of any act or omission by Borrower, any Interest Owner or
          which result from the Premises. The Lender shall have the right to
          appear in such actions or proceedings. Borrower shall save Lender
          harmless from all reasonable costs and expenses, including but not
          limited to, reasonable attorneys' fees and costs and costs of a title
          search, continuation of abstract and preparation of survey incurred by
          reason of any action, suit,

                                       36
<Page>

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

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

     46.  If more than one, all obligations and agreements of Borrower and of
          any general partner of Borrower are joint and several.

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

     48.  This Deed of Trust shall be effective as a financing statement filed
          as a fixture filing with respect to all fixtures included within the
          Property and is to be filed for record in the real estate records in
          the office of the county clerk where the Land and Improvements
          (including said fixtures) are situated.

     IN WITNESS WHEREOF, Borrower has caused this Deed of Trust to be duly
executed and delivered as of the date first above written.

                     (REMAINDER OF PAGE INTENTIONALLY BLANK
                            SIGNATURES ON NEXT PAGE)

                                       37
<Page>

                          SIGNATURE PAGE OF BORROWER TO
            DEED OF TRUST, SECURITY AGREEMENT AND ASSIGNMENT OF RENTS

                            INLAND WESTERN SAN ANTONIO HUEBNER OAKS
                            LIMITED PARTNERSHIP, an Illinois limited partnership

                            By:   INLAND WESTERN SAN ANTONIO HUEBNER
                                  OAKS 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/ Valerie Medina
                                              ----------------------------------
                                              Name:      Valerie Medina
                                                     ---------------------------
                                              Title:     asst. Secretary
                                                     ---------------------------

STATE OF ILLINOIS      )
                       )
COUNTY OF Cook         )

     This instrument was acknowledged before me on June 18, 2004 by Valerie
Medina, asst. Secretary of Inland Western Retail Real Estate Trust, Inc., a
Maryland corporation, on behalf of said corporation, in its capacity as sole
member of Inland Western San Antonio Huebner Oaks GP, L.L.C., a Delaware limited
liability company, on behalf of said limited liability company, in its capacity
as General Partner of Inland Western San Antonio Huebner Oaks Limited
Partnership, an Illinois limited partnership, on behalf of said limited
partnership.

                                         /s/ Elizabeth Ann Irving
                                        ----------------------------------
                                        Notary Public, State of Illinois

My Commission Expires:                   Elizabeth Ann Irving
  11-14-2004                            ----------------------------------
---------------------                   Typed or Printed Name

                                                  "OFFICIAL SEAL"
                                                ELIZABETH ANN IRVING
                                           NOTARY PUBLIC STATE OF ILLINOIS
                                           My Commission Expires 11/14/2004

                                       38
<Page>

                                    EXHIBIT A

                                Legal Description

                           Loan Nos. 753971 and 753972
                           (San Antonio Huebner Oaks)

Address:          __________, San Antonio, Texas

Tax Parcel Nos.

Lot 13        16841-001-0130
Lot 15        16841-001-0151
Lot 16        16841-001-0160
Lot 17        16841-001-0170
Lot 18        16841-001-0180

TRACT 1 (FEE ESTATE)

A 26.67 acre, or 1,161,961 square feet more or less, tract of land being all of
the remaining portion of Lot 15, all of Lots 16 and 17, Block 1, New City Block
(N.C.B.) 16841, Huebner Oaks Commons, Unit-1, as recorded in Volume 9536, Pages
79-80, and all of Lot 18, Block 1, N.C.B. 16841 Huebner Oaks Center, Phase II as
recorded in Volume 9540, Pages 142-143, all of the Deed and Plat Records of
Bexar County, Texas, situated within the City of San Antonio, Bexar County,
Texas, and being more particularly described by metes and bounds as follows,
with bearings based on the North American Datum of 1983 (CORS 1996), from the
Texas Coordinate System established for the South Central Zone:

BEGINNING:   At a found 1/2" iron rod on the easterly right-of-way line of
             Interstate Highway 10, a variable width, minimum 500-foot wide
             right-of-way, for the southwest corner of Lot 2, Block 2, N.C.B.
             16094, Woodstone Subdivision as recorded in Volume 7000, Pages
             110-112 of the aforementioned Deed and Plat Records for the
             northwest corner of said Lot 15 and of this tract;

THENCE:      Along and with the north line of this tract, the south line of said
             Lot 2 and the south line of Lot 6, Block 2, N.C.B. 16904, Woodstone
             Subdivision, recorded in Volume 9504, Pages 145-146 of said Deed
             and Plat Records, the north line of said Lots 15 and 18 and of this
             tract as follows:

             S 89 DEG. 17'50" E, a distance of 364.79 feet to a found 1/2" iron
             rod with yellow cap marked "Pape-Dawson" for an angle point;

             N 89 DEG. 38'10" E, a distance of 566.00 feet to a found 1/2" iron
             rod with yellow cap marked "Pape-Dawson" for an angle point;

             N 88 DEG. 37'11" E, a distance of 369.06 feet to a found 1/2" iron
             rod with yellow cap marked "Pape-Dawson" for an angle point; and

                                        1
<Page>

             N 89 DEG. 12'11" E, a distance of 118.47 feet to a found 1/2" iron
             rod with yellow cap marked "Pape-Dawson" for the northeast corner
             of this tract;

THENCE:      S 00 DEG. 02'15" E, departing said common line, with the west line
             of said Lot 18, a distance of 733.94 to a found 1/2" iron rod at a
             point of curvature of a non-tangent curve in the northerly
             right-of-way line of Huebner Oaks, a 60-foot right-of-way, for the
             southeast corner of said Lot 18 and this tract;

THENCE:      Along and with the said northerly right-of-way line of Huebner Oaks
             as follows:

             Southwesterly, with a curve to the left, having a radial bearing of
             S 15 DEG. 29'41" E, a radius of 730.00 feet, a central angle of 30
             DEG. 22'26", a chord bearing and distance of S 59 DEG. 19'06" W,
             382.48 feet and an arc length of 386.99 feet to set 1/2" iron rod
             with yellow cap marked "Pape-Dawson" for a point of tangency; and

                S 44 DEG. 07'53" W, a distance of 419.37 feet to a found 1/2"
                iron rod with yellow cap marked "Pape-Dawson" for the east end
                of a cut-back line at the intersection of said northerly
                right-of-way line with the aforementioned easterly right-of-way
                line of Interstate Highway 10, for a southerly corner of this
                tract;

          THENCE:   S 89 DEG. 52'18" W, along said cut-back line, a distance of
                57.29 feet to a found 1/2" iron rod with yellow cap marked
                "Pape-Dawson" for the west end of said cut-back line on the
                aforementioned easterly right-of-way line of Interstate Highway
                10, for the point of curvature of a non-tangent curve, the
                southernmost corner of said Lot 15 and of this tract;

THENCE:      Along and with the said easterly right-of-way line of Interstate
             Highway 10 as follows:

             Northwesterly, with a curve to the right, said curve having a
             radial bearing of N 45 DEG. 36'44" E, a radius of 2,748.75 feet, a
             central angle of 19 DEG. 27'55", a chord bearing and distance of N
             34 DEG. 39'19" W, 929.36 feet, and an arc length of 933.84 feet, to
             a found 1/2" iron rod with yellow cap marked "Pape-Dawson" for a
             point of tangency; and

     N 24 DEG. 55'21" W, a distance of 502.94 feet to the POINT OF BEGINNING and
containing 26.67 acres of land in the City of San Antonio, Bexar County, Texas.

TRACT 2 (FEE ESTATE)

A 2.792 acre (121,598 square feet, more or less) tract of land, being all of Lot
13, Block 1, New City Block (N.C.B.) 16841, Huebner Oaks Commons, Unit-2 in the
City of San Antonio, Bexar County, Texas according to the plat thereof recorded
in Volume 9534, Pages 204 and 205 of the Deed and Plat Records of Bexar County,
Texas, and being more particularly described by metes and bounds as follows,
with bearings based on the North American Datum of 1983 (CORS 1996), from the
Texas Coordinate System established for the South Central Zone:

<Page>

BEGINNING:   At a found 1/2" iron rod with yellow cap marked "Pape-Dawson", at
             the north end of the cut-back line for the intersection of the
             southerly right-of-way line of Huebner Oaks, a 60-foot
             right-of-way, with the easterly right of way line of Interstate
             Highway 10, a variable width right-of-way;

THENCE:      N 44 DEG. 07'53" E, a distance of 393.27 feet along and with the
             said southerly right-of-way line of Huebner Oaks to a found
             concrete nail and cap at a common corner between the said Lot 13
             and Lot 12, Block 1, New City Block 16841, of the said Huebner Oaks
             Commons, Unit-2;

THENCE:      S 45 DEG. 51'53" E, a distance of 278.94 feet departing from the
             said southerly right-of-way line of Huebner Oaks to a found
             concrete nail and cap at a common corner between the said Lot 13
             and Lot 14, Block 1, New City Block 16841, of the said Huebner Oaks
             Commons, Unit-2;

THENCE:      S 43 DEG. 40'21" W, a distance of 426.65 feet along the common line
             between said Lot 13 and 14 to a found 1/2" iron rod with yellow cap
             marked "Pape-Dawson" at a point of curvature of a non-tangent curve
             in the aforementioned easterly right-of-way of Interstate Highway
             10;

THENCE:      Northwesterly, along and with the said easterly right-of-way line
             of Interstate Highway 10 with a curve to the right, said curve
             having a radial bearing of N 37 DEG. 36'23"E, a radius of 2,748.75
             feet, a central angle of 04 DEG. 49'35", a chord bearing and
             distance of N 49 DEG. 58'50" W, 231.47 feet and an arc length of
             231.54 feet a found 1/2" iron rod with yellow cap marked
             "Pape-Dawson" at the south end of the aforementioned cut-back line;

THENCE:   N 01 DEG. 43'05" W, a distance of 71.75 feet along and with the said
cut-back line to the POINT OF BEGINNING and containing 2.792 acres of land in
the City of San Antonio, Bexar County, Texas.

TRACT 3: Easement estate appurtenant to Tracts 1 and 2 created in Easements,
Covenants and Restrictions Agreement for Huebner Oaks San Antonio, dated July
31, 1996, recorded in Volume 6849, Page 1193, as amended by instrument recorded
in Volume 7104, Page 32, Official Public Records of Real Property of Bexar
County, Texas, over and across the real property more particularly described
therein.

TRACT 4: Easement estate appurtenant to Tracts 1 and 2 created in Reciprocal
Easement Agreement dated March 14, 1997, recorded in Volume 7032, Page 1332,
Official Public Records of Real Property of Bexar County, Texas, over and across
the real property more particularly described therein, SAVE AND EXCEPT those
portions contained in Tracts land 2.

<Page>

                                    EXHIBIT B

                             Permitted Encumbrances

                           Loan No. 753971 and 753972
                           (San Antonio Huebner Oaks)

1.   Taxes for the year 2004 and subsequent years.

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

3.   The following restrictive covenants of record itemized below:

     Volume 8800, Page(s) 80-81, Volume 8800, Page(s) 19, Volume 9519, Page(s)
     185, Volume 9536, Page(s) 79-80, Volume 9540, Page(s) 142 and Volume 9534,
     Page(s) 204 of the Deed and Plat Records and Volume 6832, Page 1116, Volume
     6849, Page 1193, amended in Volume 7104, Page 32 of the Official Public
     Records of Real Property, all of Bexar County, Texas. (TRACTS 1 AND 2)

4.   The terms, conditions and stipulations set out in that certain Easements,
     Covenants and Restrictions Agreement dated July 31, 1996, recorded in
     Volume 6832, Page(s) 1116 of the Official Public Records of Real Property
     of Bexar County, Texas. (TRACTS 1 AND 2)

5.   The terms, conditions and stipulations set out in that certain Easements,
     Covenants and Restrictions Agreement dated July 31, 1996, recorded in
     Volume 6849, Page(s) 1193, amended in Volume 7104, Page 32 of the Official
     Public Records of Real Property of Bexar County, Texas. (TRACTS 1 AND 2)

6.   The terms, conditions and stipulations set out in that certain Reciprocal
     Easement Agreement dated March 14, 1997, recorded in Volume 7032, Page(s)
     1332 of the Official Public Records of Real Property of Bexar County,
     Texas. (TRACTS 1 AND 2)

7.   The terms, conditions and stipulations set out in that certain Declaration
     of Easement dated November 24, 1997, recorded in Volume 7273, Page(s) 466
     of the Official Pubic Records of Real Property of Bexar County, Texas.
     (TRACTS 1 AND 2)

8.   Building setback line 25 feet in width along the Huebner Oaks and
     Interstate Highway 10 property line(s), as shown on the Plat(s) recorded in
     Volume 9536, Page(s) 79-80 of the Deed and Plat Records of Bexar County,
     Texas, and as shown on the survey prepared by Patricia Ann Mantooth,
     R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

9.   Building setback line 25 feet in width along the Huebner Oaks property
     line(s), as shown on the Plat(s) recorded in Volume 9540, Page(s) 142 of
     the Deed and Plat Records of

                                        1
<Page>

     Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

10.  Drainage, water, gas, electric, telephone and cable T.V. easements of
     various widths, as shown by the Plat(s) recorded in Volume 9540, Page(s)
     142 of the Deed and Plat Records of Bexar County, Texas, and as shown on
     the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June
     3, 2004. (TRACT 1)

11.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated July 2, 1996, executed by and between San Antonio Huebner
     Oaks, Ltd., as Lessor(s) and Ross Stores, Inc., as Lessee(s), evidenced by
     Memorandum of Lease recorded in Volume 6820, Page(s) 1669 of the Official
     Public Records of Real Property of Bexar County, Texas, amended in
     instrument dated September 19, 1996, recorded in Volume 6908, Page 432 of
     the Official Public Records of Real Property of Bexar County, Texas, and
     further affected by instrument dated November 18, 1997, recorded in Volume
     7273, Page 570 of the Official Public Records of Real Property of Bexar
     County, Texas.

12.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated July 2, 1996, executed by and between San Antonio Huebner
     Oaks, Ltd., as Lessor(s) and Ross Stores, Inc., as Lessee(s), evidenced by
     Memorandum of Lease recorded in Volume 6979, Page(s) 1137 of the Official
     Public Records of Real Property of Bexar County, Texas, and further
     affected by instrument dated November 18, 1997, recorded in Volume 7273,
     Page 570 of the Official Public Records of Real Property of Bexar County,
     Texas.

13.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated February 1, 1996, executed by and between San Antonio
     Huebner Oaks, Ltd., as Lessor(s) and San Antonio Bed Bath & Beyond, Inc.,
     as Lessee(s), evidenced by Memorandum of Lease recorded in Volume 6684,
     Page(s) 1110 of the Official Public Records of Real Property of Bexar
     County, Texas.

14.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated February 16, 1996, executed by and between San Antonio
     Huebner Oaks, Ltd., as Lessor(s) and Borders, Inc., as Lessee(s), evidenced
     by Memorandum of Lease recorded in Volume 6689, Page(s) 1854 of the
     Official Public Records of Real Property of Bexar County, Texas.

15.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated July 8, 1996, executed by and between San Antonio Huebner
     Oaks, Ltd., as Lessor(s) and Pier Imports (U.S.), Inc., as Lessee(s),
     evidenced by Memorandum of Lease recorded in Volume 7093, Page(s) 1902 of
     the Official Public Records of Real Property of Bexar County, Texas.

16.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated February 25, 1998, executed by and between San Antonio
     Huebner Oaks II, Ltd., as Lessor(s) and The GP (Texas) L.P., as Lessee(s),
     evidenced by Memorandum of Lease recorded in Volume 7390, Page(s) 751 of
     the Official Public Records of Real Property of Bexar County, Texas.

<Page>

17.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated March 6, 1998, executed by and between San Antonio Huebner
     Oaks II, Ltd., as Lessor(s) and Banana Republic (East) L.P., as Lessee(s),
     evidenced by Memorandum of Lease recorded in Volume 7408, Page(s) 964 of
     the Official Public Records of Real Property of Bexar County, Texas.

18.  The terms, conditions and stipulations set out in that certain Lease
     Agreement dated January 29, 1997, executed by and between San Antonio
     Huebner Oaks, Ltd., as Lessor(s) and Renaissance Development Corporation,
     as Lessee(s), evidenced by Memorandum of Lease recorded in Volume 7025,
     Page(s) 191 of the Official Public Records of Real Property of Bexar
     County, Texas.

19.  The terms, conditions and stipulations set out in that certain Application
     and Agreement for Service dated January 19, 1999, recorded in Volume 7836,
     Page(s) 674 of the Official Public Records of Real Property of Bexar
     County, Texas.

20.  The terms, conditions and stipulations set out in that certain Application
     and Agreement for Service dated January 19, 1999, recorded in Volume 7836,
     Page(s) 689 of the Official Public Records of Real Property of Bexar
     County, Texas.

21.  The terms, conditions and stipulations set out in that certain Application
     and Agreement for Service dated January 19, 1999, recorded in Volume 7836,
     Page(s) 692 of the Official Public Records of Real Property of Bexar
     County, Texas.

22.  The terms, conditions and stipulations set out in that certain Application
     and Agreement for Service dated December 12, 1997, recorded in Volume 7497,
     Page(s) 1435 of the Official Public Records of Real Property of Bexar
     County, Texas.

23.  The terms, conditions and stipulations set out in that certain Landlord's
     Agreement and Waiver dated April 15, 2003, recorded in Volume 10615,
     Page(s) 591 of the Official Public Records of Real Property of Bexar
     County, Texas.

24.  Drainage easement 18 feet in width along Interstate Highway 10 R.O.W.
     property line(s), as shown by the Plat(s) recorded in Volume 9536, Page(s)
     79-80 of the Deed and Plat Records of Bexar County, Texas, and as shown on
     the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June
     3, 2004. (TRACT 1)

25.  Drainage and sanitary sewer easement 25.5 feet in width along Huebner Oaks
     R.O.W. property line(s), as shown by the Plat(s) recorded in Volume 9536,
     Page(s) 79-80 of the Deed and Plat Records of Bexar County, Texas, and as
     shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721,
     dated June 3, 2004. (TRACT 1)

26.  Electric, gas, telephone and cable T.V. easement 14 feet in width along
     Huebner Oaks R.O.W. property line(s), as shown by the Plat(s) recorded in
     Volume 9536, Page(s) 79-80 of the Deed and Plat Records of Bexar County,
     Texas, and as shown on the survey prepared by Patricia Ann Mantooth,
     R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

<Page>

27.  Water easement 10 feet in width along Huebner Oaks R.O.W. property line(s),
     as shown by the Plat(s) recorded in Volume 9536, Page(s) 79-80 of the Deed
     and Plat Records of Bexar County, Texas, and as shown on the survey
     prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3, 2004.
     (TRACT 1)

28.  Drainage easement 15 feet in width parallel to Huebner Oaks R.O.W. property
     line(s), as shown by the Plat(s) recorded in Volume 9536, Page(s) 79-80 of
     the Deed and Plat Records of Bexar County, Texas, and as shown on the
     survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3,
     2004. (TRACT 1)

29.  Water easement 15 feet in width traversing subject Tract 1, as shown by the
     Plat(s) recorded in Volume 9536, Page(s) 79-80 of the Deed and Plat Records
     of Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

30.  Sanitary sewer easement 16 feet in width parallel to Interstate 10 R.O.W.
     property line(s), as shown by the Plat(s) recorded in Volume 9536, Page(s)
     79-80 of the Deed and Plat Records of Bexar County, Texas, and as shown on
     the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June
     3, 2004. (TRACT 1)

31.  Electric, gas, telephone and Cable TV easement 14 feet in width along
     Interstate Highway 10 R.O.W. property line(s), as shown by the Plat(s)
     recorded in Volume 9536, Page(s) 79-80 of the Deed and Plat Records of
     Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

32.  Sanitary sewer, water, electric, gas, telephone and cable T.V. easement 30
     feet in width along the north property line(s), as shown by the Plat(s)
     recorded in Volume 9536, Page(s) 79-80 of the Deed and Plat Records of
     Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

33.  Electric, gas, telephone and cable T.V. easement 14 feet in width along the
     north property line(s), as shown by the Plat(s) recorded in Volume 9536,
     Page(s) 79-80 of the Deed and Plat Records of Bexar County, Texas, and as
     shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721,
     dated June 3, 2004. (TRACT 1)

34.  Electric easement 10 feet in width along a portion of the north property
     line(s), as shown by the Plat(s) recorded in Volume 9536, Page(s) 79-80 of
     the Deed and Plat Records of Bexar County, Texas, and as shown on the
     survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3,
     2004. (TRACT 1)

35.  Water easement 10 feet in width traversing subject Tract 1, as shown by the
     Plat(s) recorded in Volume 9536, Page(s) 79-80 of the Deed and Plat Records
     of Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

<Page>

36.  Gas easement 10 feet in width along the east property line(s), as shown by
     the Plat(s) recorded in Volume 9536, Page(s) 79-80 of the Deed and Plat
     Records of Bexar County, Texas, and as shown on the survey prepared by
     Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

37.  Water easement 10 feet in width parallel to the east property line(s), as
     shown by the Plat(s) recorded in Volume 9536, Page(s) 79-80 of the Deed and
     Plat Records of Bexar County, Texas, and as shown on the survey prepared by
     Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

38.  Electric, gas, telephone and cable T.V. easement 28 feet in width along the
     east property line(s), as shown by the Plat(s) recorded in Volume 9536,
     Page(s) 79-80 of the Deed and Plat Records of Bexar County, Texas, and as
     shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721,
     dated June 3, 2004. (TRACT 1)

39.  Water easement 10 feet in width traversing subject Tract 1, as shown by the
     Plat(s) recorded in Volume 9540, Page(s) 143 of the Deed and Plat Records
     of Bexar County, Texas, and as shown on the survey prepared by Patricia Ann
     Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 1)

40.  Water and gas easement 15 feet in width parallel to the north property
     line(s), as shown by the Plat(s) recorded in Volume 9536, Page(s) 79-80 of
     the Deed and Plat Records of Bexar County, Texas, and as shown on the
     survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3,
     2004. (TRACT 1)

41.  Electric, telephone and gas easement 14 feet in width along Huebner Oaks
     R.O.W. property line(s), as shown by the Plat(s) recorded in Volume 9534,
     Page(s) 204-205 of the Deed and Plat Records of Bexar County, Texas, and as
     shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721,
     dated June 3, 2004. (TRACT 2)

42.  Building setback line 25 feet in width along the Huebner Oaks R.O.W.
     property line(s), as shown on the Plat(s) recorded in Volume 9534, Page(s)
     204-205 of the Deed and Plat Records of Bexar County, Texas, and as shown
     on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721, dated
     June 3, 2004. (TRACT 2)

43.  Electric overhang easement 14 feet in width along Interstate Highway 10
     R.O.W. property line(s), as shown by the Plat(s) recorded in Volume 8800,
     Page(s) 80-81 of the Deed and Plat Records of Bexar County, Texas, and as
     shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No. 4721,
     dated June 3, 2004. (TRACT 2)

44.  A portion of an electric and anchor easement 20 feet by 40 feet in width
     traversing subject property, as shown by the Plat(s) recorded in Volume
     9519, Page(s) 185 of the Deed and Plat Records of Bexar County, Texas, and
     as shown on the survey prepared by Patricia Ann Mantooth, R.P.L.S. No.
     4721, dated June 3, 2004. (TRACT 2)

45.  Building setback line 25 feet in width along the Interstate Highway 10
     R.O.W. property line(s), as shown on the Plat(s) recorded in Volume 8800,
     Page(s) 80-81 of the Deed and

<Page>

     Plat Records of Bexar County, Texas, and as shown on the survey prepared by
     Patricia Ann Mantooth, R.P.L.S. No. 4721, dated June 3, 2004. (TRACT 2)

46.  Any and all easements and building setback lines as shown on Plat(s)
     recorded in Volume 8800, Page(s) 880-81 of the Deed and Plat Records of
     Bexar County, Texas. (TRACT 3)

47.  Any and all easements and building setback lines as shown on Plat(s)
     recorded in Volume 8800, Page(s) 19 of the Deed and Plat Records of Bexar
     County, Texas. (TRACT 3)

48.  Any and all easements and building setback lines as shown on Plat(s)
     recorded in Volume 9519, Page(s) 185 of the Deed and Plat Records of Bexar
     County, Texas. (TRACT 3)<Page>

                                                                  Exhibit 10.187

                                    GUARANTY
                           LOAN NOS. 753971 AND 753972

     THIS GUARANTY (as the same may from time to time hereafter be modified,
supplemented or amended, the "GUARANTY") is made as of June 22, 2004, by INLAND
WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, having an office
at 2901 Butterfield Road, Oak Brook, Illinois 60523 ("GUARANTOR") in favor of
PRINCIPAL LIFE INSURANCE COMPANY, an Iowa corporation, having a principal place
of business and post office address at c/o Principal Real Estate Investors, LLC,
801 Grand Avenue, Des Moines, Iowa 50392-1450 ("LENDER").

                                    RECITALS:

     Lender has agreed to make a loan (the "LOAN") in the original principal sum
of Forty Eight Million and 00/100 Dollars ($48,000,000.00) (the "LOAN AMOUNT")
to INLAND WESTERN SAN ANTONIO HUEBNER OAKS LIMITED PARTNERSHIP, an Illinois
limited partnership ("BORROWER") and

     The Loan is evidenced by (i) Borrower's Secured Promissory Note 1 (Loan No.
753971) in the principal amount of $31,723,000.00 and (ii) Borrower's Secured
Promissory Note 2 (Loan No. 753972) in the principal amount of $16,277,000.00,
each made payable and delivered to Lender (as the same may from time to time
hereafter be modified, amended, supplemented, extended or consolidated in
writing, and any note(s) issued in exchange therefor or replacement thereof,
collectively the "NOTE") and further evidenced and secured by a "MORTGAGE" (it
being agreed that "Mortgage" as hereinafter used shall be construed to mean
"mortgage" or "deed of trust" or "trust deed" or "deed to secure debt" as the
context so requires) on certain real estate located in Bexar County, Texas,
together with all existing improvements constructed thereon, said Premises being
more particularly described in said Mortgage, and an Assignment of Leases
("ASSIGNMENT OF LEASES") and

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

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

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

                                        1
<Page>

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

1.   Guarantor absolutely, irrevocably and unconditionally guarantees to the
     Lender payment and the full, faithful and timely performance of any and all
     liabilities and obligations of Borrower whether now existing or hereafter
     incurred under the Environmental Indemnity and paragraph 9 of the Note (all
     of which payments, liabilities and obligations are hereinafter collectively
     referred to as the "GUARANTEED OBLIGATIONS").

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

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

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

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

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

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

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

                                        2
<Page>

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

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

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

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

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

     (b)  Notwithstanding the provisions of Section 5(a), Guarantor shall have
          and be entitled to all rights of subrogation otherwise provided by
          applicable law in respect of any payment Guarantor may make or be
          obligated to make under this Guaranty, and to assert and enforce the
          same, in each case on and after, but at no time prior to, the date
          (the "SUBROGATION TRIGGER DATE") which is 91 days after the date on
          which all obligations under the Underlying Instruments shall have been
          paid or performed in full, if and only if the existence of Guarantor's
          rights under this Section 5(b) would not make Guarantor a creditor (as
          defined in the Bankruptcy Reform Act of 1978, an amended, 11 U.S.C.
          Sections 101 et seq., and the regulations adopted and promulgated
          pursuant thereto) of Borrower in any insolvency bankruptcy,
          reorganization or similar proceeding commenced on or prior to the
          Subrogation Trigger Date.

     (c)  In the event that Guarantor shall advance or become obligated to pay
          any sums with respect to any obligation hereby guaranteed or in the
          event that for any reason whatsoever the Borrower or any subsequent
          owner of the collateral

                                        3
<Page>

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

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

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

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

     (b)  The execution, delivery and performance of this Guaranty (i) are
          within the applicable powers of Guarantor; (ii) have been authorized
          by all requisite action; (iii) have received all necessary approvals
          and consents, corporate, governmental or otherwise; (iv) does not and
          will not violate, conflict with, result in a breach of or constitute
          (with notice or lapse of time, or both) a default under any provision
          of law, any order or judgment of any court or governmental authority,
          the articles of incorporation, by-laws, partnership, operating or
          trust agreement, or other governing instrument of Guarantor, or any
          indenture, agreement or other instrument to which Guarantor is a party
          or by which Guarantor or any of Guarantor's assets is or may be bound
          or affected; (v) does not and will not result in the creation or
          imposition of any lien, charge or encumbrance whatsoever upon any of
          Guarantor's assets; and (vi) does not and will not require any
          authorization or license from, or any filing with, any governmental
          authority or other body.

                                        4
<Page>

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

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

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

10.  Nothing herein contained shall in any manner affect the lien or priority
     of the Mortgage, and upon the occurrence of an Event of a Default, the
     Lender may invoke any remedies it may have under the Underlying
     Instruments, or this Guaranty, either concurrently or successively and the
     exercise of any one or more of such remedies shall not be deemed an
     exhaustion of such remedy or remedies or a waiver of any other remedy or
     remedies and shall not be deemed an election of remedies. Guarantor hereby
     specifically waives any defense to its performance under this Guaranty
     based upon an election of remedies by Lender, including but not limited to
     an election to foreclose by nonjudicial sale under any deed of trust or
     security agreement and pursue any other remedy which destroys, lessens or
     otherwise affects Guarantor's subrogation rights and/or its rights to
     reimbursement from or to proceed against Borrower or any other person, when
     resulting from the judicial or nonjudicial foreclosure (under any deed of
     trust or security agreement) or the selling or otherwise disposing of or
     collecting or applying any property, real or personal, securing the Note,
     or otherwise. The exercise by the Lender of any such remedies shall not
     release or discharge Guarantor from its obligations hereunder unless and
     until the full amount of the Indebtedness evidenced by the Note and secured
     as aforesaid has been fully paid and satisfied, and any such release or
     discharge shall be subject to the provisions of paragraph 4(b) hereof.

11.  This Guaranty shall remain in full force and effect until all obligations
     of the Borrower under the Underlying Instruments have been satisfied in
     full and are no longer subject to disgorgement under any applicable state
     or federal creditor rights or bankruptcy laws. No delay on the part of the
     Lender in exercising any options, powers or rights, or the partial or
     single exercise thereof, shall constitute a waiver thereof. No waiver of
     any rights hereunder, and no modification or amendment of this Guaranty,
     shall be deemed to be made by the Lender unless the same shall be in
     writing, duly signed on behalf of the Lender, and each such waiver (if any)
     shall apply only with respect to the specific instance involved and shall
     in no way impair the rights of the Lender or the obligations of Guarantor
     to the Lender in any other respect at any other time. This Guaranty and the
     rights and obligations of the Lender and of Guarantor hereunder shall be
     governed and

                                        5
<Page>

     construed in accordance with the laws of the state of Texas, without regard
     to its conflicts of law principles and this Guaranty is binding upon
     Guarantor, Guarantor's heirs, personal representatives and permitted
     successors or assigns, and shall inure to the benefit of the Lender and its
     successors or assigns.

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

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

14.  Each notice, consent, request or other communication under this Guaranty
     (each a "NOTICE") which any party hereto may desire or be required to give
     to the other shall be deemed to be adequate and sufficient notice if given
     in writing and service is made by either (i) registered or certified mail,
     postage prepaid, in which case such notice shall be deemed to have been
     received three (3) business days following deposit to U.S. mail; or (ii)
     nationally recognized overnight air courier, next day delivery, prepaid, in
     which case such notice shall be deemed to have been received one (1)
     business day following delivery to such nationally recognized overnight air
     courier. All Notices shall be addressed to Guarantor at its address given
     on the first page hereof, or to Lender at c/o Principal Real Estate
     Investors, LLC, 801 Grand Avenue, Des Moines, Iowa 50392-1450, Attn:
     Commercial Real Estate Servicing, Loan Nos. 753971 and 753972, or to such
     other place as any party may by notice in writing to the other parties
     designate as a place for service of notice.

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

                                        6
<Page>

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

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

                                        7
<Page>

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

                     (REMAINDER OF PAGE INTENTIONALLY BLANK
                            SIGNATURES ON NEXT PAGE)

<Page>

                           SIGNATURE PAGE OF GUARANTOR
                                   TO GUARANTY

42-1579325
(Guarantor's Identification Number)

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

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

                                        9

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