Document:

EX-10.2

 Exhibit 10.2 

FORM OF MASTER REAL ESTATE MANAGEMENT AGREEMENT 

THIS MASTER REAL ESTATE MANAGEMENT AGREEMENT (this “Agreement”), dated as
of             , 2014, is entered into by and between INLAND RESIDENTIAL PROPERTIES TRUST, INC., a Maryland
corporation (“the Company”), and INLAND RESIDENTIAL REAL ESTATE SERVICES LLC, a Delaware limited liability company (“the Manager”). 

WITNESSETH: 
 WHEREAS, the
Company desires to avail itself of the experience, sources of information, advice, assistance and facilities available to the Manager and to have the Manager be responsible, subject to the supervision of the Board of Directors (as defined herein),
for, among other things, managing or overseeing management of certain Properties (as defined herein); and 
 WHEREAS, the Manager is willing
to undertake to render these services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth. 

NOW THEREFORE, in consideration of the mutual covenants and conditions herein set forth, the parties hereto agree as follows: 

1. Definitions. As used herein, the following capitalized terms shall have the meanings set forth below: 

 

	 	a.	“Affiliate” means, with respect to any other Person: (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent (10.0%) or more of the
outstanding voting securities of such other Person; (ii) any Person ten percent (10.0%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person;
(iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer, director, trustee, general partner or manager of such other Person; and (v) any legal
entity for which such Person acts as an executive officer, director, trustee, general partner or manager. 

  

	 	b.	“Board of Directors” means the Persons holding the office of director of the Company as of any particular time under the Charter. 

 

	 	c.	“Business Day” means any day other than Saturday, Sunday or any other day on which national banks are required or are authorized to be closed in Chicago, Illinois. 

 

	 	d.	“Charter” means the articles of incorporation of the Company, as amended or restated from time to time. 

  

	 	e.	“Equity Stock” means all classes or series of capital stock of the Company authorized under the Charter, including, without limit, its common stock, $.001 par value per share, and preferred stock, $.001
par value per share. 

	 	f.	“Indemnitee” has the meaning ascribed to that term in Section 5(a) hereof. 

  

	 	g.	“Initial Term” has the meaning ascribed to that term in Section 4(a) hereof. 

  

	 	h.	“Management Agreement” has the meaning ascribed to that term in Section 3 hereof. 

  

	 	i.	“Notice” has the meaning ascribed to that term in Section 7 hereof. 

  

	 	j.	“Person” means any individual, corporation, business trust, estate, trust, partnership, limited liability company, association, two or more Persons having a joint or common interest or any other legal
or commercial entity. 

  

	 	k.	“Property” or “Properties” means interests in (1) Real Property, (2) long-term ground leases or (3) any buildings, structures, improvements, furnishings, fixtures and
equipment, whether or not located on the Real Property, in each case owned or to be owned by the Company either directly or indirectly through one or more Affiliates, joint ventures, partnerships or other legal entities. 

 

	 	l.	“Real Property” means land, rights or interests in land (including, but not limited to, leasehold interests), and any buildings, structures, improvements, furnishings, fixtures and equipment located on,
or used in connection with, land and rights or interest in land. 

  

	 	m.	“Renewal Term” has the meaning ascribed to that term in Section 4(a) hereof. 

  

	 	n.	“Securities Claims” has the meaning ascribed to that term in Section 5(b) hereof. 

  

	 	o.	“Stockholders” means holders of any class of shares of the Company’s common stock, $.001 par value per share, or any other share of Equity Stock having the right to elect directors of the Company.

 2. Effective Date. Effective as of the date hereof, the Company hereby retains the Manager to manage certain
Properties to be acquired by the Company or by various entities owned or controlled by the Company. This Agreement is not an exclusive management agreement and the Manager acknowledges and agrees that the Company may engage other management
companies to manage Properties not being managed by the Manager. 
 3. Terms and Conditions. With respect to each individual Property
subject to this Agreement, the Manager and the Company or any Affiliate thereof holding title to such Property shall enter into a Real Estate Management Agreement in form and substance as attached hereto as Exhibit A (the “Management
Agreement”). The initial term of each Management Agreement shall commence on the date of acquisition by the Company or its Affiliate of the Property and shall end December 31 of the year in which the Property was acquired, with renewal
periods as described in the Management Agreement. 

  
 2 

 4. Term and Termination. 

a. Term. The term of this Agreement shall begin on
[            , 2014] and end on December 31, [2014] (the “Initial Term”). Unless terminated as provided in Section 4(b) below, the term shall thereafter
automatically renew for successive one-year periods (each, a “Renewal Term”), with the first such one-year renewal period commencing on [January 1, 2015, and ending on December 31, 2015]. 

b. Termination. This Agreement may be terminated as follows: 

i. Either party hereto may terminate this Agreement, effective upon the expiration of the Initial Term or the current Renewal
Term, as applicable, if the terminating party gives written notice of its election to terminate this Agreement to the other party not less than sixty (60) days prior to the expiration of the Initial Term or the current Renewal Term as the case
may be. The Manager, between ninety (90) and sixty (60) days prior to the expiration of the Initial Term and each Renewal Term, shall notify the independent directors of the Board of Directors, of the Company’s right to terminate this
Agreement, and each Management Agreement with a term that expires concurrent with the expiration of the Initial term or the applicable Renewal Term, pursuant to this Section 4(b)(i). 

ii. This Agreement may be terminated by the Company immediately upon written notice of termination from the Company to the
Manager if any of the following events occur: 
  

	 	(A)	the Manager violates any provision of this Agreement and fails to cure such violation on or before thirty (30) days after receipt of written notice of such violation from the Company; 

 

	 	(B)	a court of competent jurisdiction enters a decree or order for relief in respect of the Manager in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Manager or for any substantial part of its property or orders the winding up or liquidation of the Manager’s affairs; or 

 

	 	(C)	the Manager commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such
law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Manager or for any substantial part of its property, or makes any general assignment for
the benefit of creditors, or fails generally to pay its debts, as they become due; 

  
 3 

 provided, that the Manager agrees that if any of the events specified in subsections (B) and
(C) of this Section 4(b)(ii) occur, it will give written notice thereof to the Company within seven (7) days after the occurrence of any such event. 

c. Effect of Termination. Upon termination of this Agreement, all Management Agreements entered into among the Company
or its Affiliates and the Manager shall automatically terminate. In addition, in connection with the termination of this Agreement, the Manager shall cooperate with the Company and take all reasonable steps requested by the Company to assist it in
making an orderly transition of the functions performed by the Manager. 
 5. Indemnification. 

a. The Company shall indemnify the Manager and its officers, directors, members, managers, employees and agents (individually
an “Indemnitee,” collectively the “Indemnitees”) for any losses, liability or expense incurred by an Indemnitee and arising from this Agreement or any Management Agreement, to the same extent as the Company may
indemnify its officers, directors and employees under its Charter and bylaws so long as: 
 i. the Board of Directors has
determined, in good faith, that the course of conduct that caused the loss, liability or expense was in the best interests of the Company; 

ii. the Indemnitee was acting on behalf of, or performing services on the part of, the Company; 

iii. the liability or loss was not the result of negligence or misconduct on the part of the Indemnitee; and 

iv. any amounts payable to the Indemnitee are paid only out of the Company’s net assets and not from any personal assets
of any Stockholder. 
 b. The Company shall not indemnify any Person seeking indemnification for losses, liabilities or
expenses arising from, or out of, an alleged violation of federal or state securities laws (“Securities Claims”) unless one or more of the following conditions are met: 

i. there has been a successful adjudication for the Indemnitee on the merits of each count involving alleged material
Securities Claims as to such Indemnitee; 
 ii. the Securities Claims have been dismissed with prejudice on the merits by a
court of competent jurisdiction as to such Indemnitee; or 

  
 4 

 iii. a court of competent jurisdiction approves a settlement of the Securities
Claims and finds that indemnification for the costs of settlement and related costs should be made and the court considering the request has been advised of the position of the Securities and Exchange Commission and of the published opinions of any
state securities regulatory authority in which securities of the Company were offered and sold as to indemnification for Securities Claims. 

c. The Company shall advance amounts to Indemnitees for legal and other expenses and costs incurred as a result of any legal
action for which indemnification is being sought only if all of the following conditions are satisfied: 
 i. the legal
action relates to acts or omissions with respect to the performance of duties or services by the Indemnitee for or on behalf of the Company; 

ii. the legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder
acting in his or her capacity as such and a court of competent jurisdiction specifically approves advancement; and 
 iii.
the Indemnitee receiving advances undertakes in writing to repay the advanced funds to the Company, together with the applicable legal rate of interest thereon, in cases in which the party is found not to be entitled to indemnification. 

6. Non-Solicitation. During the period commencing on the date on which this Agreement is entered into and ending one year following the
termination of this Agreement, the Company shall not, without the Manager’s prior written consent, directly or indirectly: (i) solicit, induce, or encourage any person to leave the employment or other service of the Manager or any of its
Affiliates to become employed by the Company or any of its subsidiaries; or (ii) hire or offer to hire, on behalf of the Company or any other Person, firm, corporation or other business organization, any employee of the Manager or any of its
Affiliates. Further, with respect to any person who left the employment of the Manager or any of its Affiliates (a) during the term of this Agreement or (b) within six months immediately after the termination of this Agreement, the Company
shall not, without the Manager’s prior written consent, directly or indirectly hire or offer to hire on behalf of the Company or any other Person, firm, corporation or other business organization, that person during the six months immediately
following his or her cessation of employment. 
 7. Notices. All notices, requests or demands to be given under this Agreement from
one party to the other (collectively, “Notices” and individually a “Notice”) shall be in writing and shall be given by personal delivery, or by overnight courier service for next Business Day delivery at the other
party’s address set forth below, or by telecopy transmission at the other party’s facsimile telephone number set forth below. Notices given by personal delivery (i.e., by the sending party or a messenger) shall be deemed given on
the date of delivery. Notices given by overnight courier service shall be deemed given upon deposit with the overnight courier service and Notices given by telecopy transmission shall be deemed given on the date of transmission provided such
transmission is completed by 5:00 p.m. (sending party’s local time) on a Business Day, otherwise delivery by transmission shall be deemed to occur on the next succeeding 

  
 5 

 
Business Day. If any party’s address is a business, receipt, or the refusal to accept delivery, by a receptionist or by any Person in the employ of such party, shall be deemed actual receipt
by the party of Notices. Notices may be issued by an attorney for a party and in such case such Notices shall be deemed given by such party. The parties’ addresses are as follows: 

 

			
	If to the Company, to:	  	 Inland Residential Properties Trust, Inc.
 2901
Butterfield Road
 Oak Brook, IL 60523
 Attention:
      Mr. Mitchell Sabshon, President
 Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

		
	With a copy to:	  	 Inland Residential Business Manager & Advisor, Inc.

2901 Butterfield Road
 Oak Brook, IL 60523

Attention:       Ms. Roberta S. Matlin, Vice President

Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

		
	With a copy to:	  	 Inland Residential Properties Trust, Inc.
 2901
Butterfield Road
 Oak Brook, IL 60523
 Attention:
      Chairman of Audit Committee
 Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

		
	If to the Manager, to:	  	 Inland Residential Real Estate Services LLC

2901 Butterfield Road
 Oak Brook, IL 60523

Attention:       Ms. JoAnn McGuinness

Telephone:     (630) 954-5685

Facsimile:      (630) 368-2277

 A party’s address for Notice may be changed from time to time by notice given to the other party in the manner
herein provided for giving Notice. Copies of Notices are for informational purposes only, and a failure to give or receive copies of any Notice shall not be deemed a failure to give notice, and shall in no way adversely affect the effectiveness of
such Notice given to the addressee party. 
 8. Miscellaneous. 

a. Nothing contained herein shall be construed as creating any rights in Persons or entities who are not the parties to this
Agreement. The Manager and the Company shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and neither shall have the power to bind or obligate the other except as set forth herein. In all respects, the
status of the Manager to the Company under this Agreement is that of an independent contractor. 
 b. If any provisions of
this Agreement, or the application of any such provisions to parties hereto or any third party beneficiaries of this Agreement, shall be held by a court of competent jurisdiction to be unlawful or unenforceable, the remaining provisions of this
Agreement shall nevertheless be valid, enforceable and shall remain in full force and effect, and shall not be affected, impaired or invalidated in any manner. This Agreement, its validity, performance and enforcement shall be construed in
accordance with, and governed by, the internal laws of the State of Illinois without regard to conflicts of law principles. 

  
 6 

 c. This Agreement shall be binding upon the successors and assigns of the Manager
and the successors and assigns of the Company. This Agreement contains the entire Agreement of the parties relating to the subject matter hereof, and there are no understandings, representations or undertakings by either party except as herein
contained. This Agreement may be modified solely by a written agreement executed by both parties hereto. 
 d. If any party
hereto is found by a non-appealable order of a court of competent jurisdiction to have defaulted on the terms or conditions of this Agreement, the defaulting party shall pay the non-defaulting party’s court costs and reasonable attorneys’
fees incurred in the enforcement of any provision of this Agreement. 
 e. Either party’s failure to exercise any right
under this Agreement shall neither constitute a waiver of any other terms or conditions of this Agreement with respect to any other or subsequent breach, nor a waiver by that party of its right at any time thereafter to require exact and strict
compliance with the terms of this Agreement. 
 f. All exhibits attached to this Agreement are hereby incorporated by
reference. In an event of a conflict between the exhibits and the text of this Agreement preceding this Section, the text of this Agreement preceding this Section shall control. 

[THE REMAINDER OF THIS PAGE INTENTIONALLY BLANK] 

  
 7 

 WHEREFORE, the undersigned have executed this Agreement by their duly authorized officers or
representatives as of the date first above written. 
  

									
	COMPANY:	 		 	MANAGER:
			
	INLAND RESIDENTIAL PROPERTIES TRUST, INC.	 		 	INLAND RESIDENTIAL REAL ESTATE SERVICES LLC
					
	By:	 	 	 		 	By:	 	 
	Name:	 	Mitchell A. Sabshon	 		 	Name:	 	 
	Its:	 	President	 		 	Its:	 	 

 Signature Page — Master Management Agreement 

 EXHIBIT A 

FORM OF MANAGEMENT AGREEMENT 

THIS REAL ESTATE MANAGEMENT AGREEMENT (this “Agreement”), dated as of
[            ] [    ], 20[    ], is entered into by and between [SINGLE MEMBER LLC] (“Owner”), and
INLAND RESIDENTIAL REAL ESTATE SERVICES LLC, a Delaware limited liability company (the “Manager”). 

WHEREAS, Owner desires to avail itself of the experience, sources of information, advice, assistance and facilities available to the Manager
and to have the Manager undertake the duties and responsibilities hereinafter set forth; and 
 WHEREAS, the Manager is willing to undertake
to render these services, subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth. 
 NOW,
THEREFORE, in consideration of the mutual covenants and conditions herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

1. Exclusive Management. Owner hereby engages Manager exclusively, to perform or cause to be performed the services described herein for
the property legally described on Exhibit A attached hereto and made a part hereof (the “Premises”), upon the terms and conditions hereinafter set forth herein and Manager accepts such exclusive engagement. 

2. Term and Termination. 

(a) Term. The term of this Agreement shall begin on
[            ] [    ], 20[    ] and end on December 31, 20[    ] (the “Initial Term”). Unless terminated as
provided in Section 2(b) below, the term shall thereafter automatically renew for successive one-year periods (each, a “Renewal Term”), with the first such one-year renewal period commencing on January 1,
20[    ], and ending on December 31, 20[    ]. 
 (b) Termination. This
Agreement shall automatically terminate upon the termination of that certain Master Management Agreement, dated [            ], 2014 (the “Master Agreement”), by and between
Manager and Inland Residential Properties Trust, Inc. (“Parent Company”). In addition, this Agreement may be terminated prior to the expiration of the Initial Term or the then current Renewal Term, as follows: 

i. Either party hereto may terminate this Agreement, effective upon the expiration of the Initial Term or the current Renewal
Term, as applicable, if the terminating party gives written notice of its election to terminate this Agreement to the other party not less than sixty (60) days prior to the expiration of the Initial Term or the current Renewal Term as the case
may be. 
 ii. Manager shall have the right to terminate this Agreement upon sixty (60) days written notice to Owner in
the event that the Premises is no longer generating Gross Income (as hereinafter defined). 

 iii. This Agreement may be terminated by the Owner immediately upon written
notice of termination from the Owner to Manager if any of the following events occur: 
 (A) Manager violates any provision of this
Agreement and fails to cure such violation on or before thirty (30) days after receipt of written notice of such violation from Owner; 

(B) a court of competent jurisdiction enters a decree or order for relief in respect of Manager in any involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Manager or for any substantial part of its property or orders the winding
up or liquidation of Manager’s affairs; or 
 (C) Manager commences a voluntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of Manager or for any substantial part of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts, as they become due; 

provided, that Manager agrees that if any of the events specified in subsections (B) and (C) of Section 3(b)(iii) occur, it will give
written notice thereof to Owner within seven (7) days after the occurrence of any such event. 
 3. Manager Duties. Owner hereby
gives Manager the exclusive authority and power, as agent for Owner, to provide the services listed in this Section 3 and elsewhere in this Agreement and Owner agrees to reimburse Manager and its affiliates for all expenses paid or
incurred in connection therewith. For the avoidance of doubt, unless otherwise stated in this Agreement that such expenses are to be borne by Manager, all expenses related to the duties performed or caused to be performed by Manager herein with
respect to the Premises shall be the responsibility of the Owner and reimbursed to Manager upon billing therefor if initially paid for by Manager. Manager shall be entitled at all times to manage the Premises in accordance with Manager’s
standard operating policies and procedures all in accordance with the budget approved by Owner, except to the extent that any specific provisions contained herein are to the contrary, in which case Manager shall manage the Premises consistent with
such specific provisions of this Agreement. 

  
 2 

 (a) Collection of Gross Income. 

i. Manager shall collect all rents and assessments and other monies due Owner from tenants related to the Premises (all such
items being referred to herein as “Gross Income”) accounting for the same. Manager shall give Owner receipts therefor and deposit all such Gross Income collected hereunder in Manager’s custodial account established for the Premises
using Owner-approved software which Manager will open and maintain, in a state or national bank of Manager’s choice and whose deposits are insured by the Federal Deposit Insurance Corporation to the maximum extent available, exclusively for the
Premises and any other properties owned by Owner (or any entity that is owned or controlled by Parent Company) and managed by Manager. Unless otherwise required by Owner, Manager shall be permitted to comingle the funds in such custodial account
with funds attributable to any other properties owned by Owner or entities owned or controlled by Parent Company and managed by Manager. Owner agrees that Manager shall be authorized to maintain a reasonable minimum balance (to be determined jointly
from time to time) in the custodial account. Manager may endorse any and all checks received in connection with the operation of the Premises and drawn to the order of Owner, and Owner upon request, shall furnish Manager’s depository with an
appropriate authorization for Manager to make the endorsement. 
 ii. When applicable, Manager shall collect and bill for
security deposits or assessments and other items, including but not limited to calculating, preparing and mailing all invoices for tenant payments for real estate taxes, property liability and other insurance, damages and repairs, common area
maintenance, tax reduction fees and all other tenant reimbursements, administrative charges, proceeds of rental interruption insurance, parking fees, income from coin operated machines and other miscellaneous income as stipulated in the leases. At
the request of Owner, Manager will administer, and create if necessary, a bill-back program for tenant utility consumption unless prohibited by local law. 

(b) Payment of Expenses. From the custodial account described above, Manager shall pay all expenses of Owner with
respect to the Premises from the Gross Income collected in accordance with Section 3(a)(i) hereof. In the event that expenses paid pursuant to this Section 3(b) exceed Gross Income for any monthly period, Manager shall notify
Owner of same. Owner shall pay the excess amount immediately upon request from Manager. Nothing herein contained shall obligate Manager to advance its own funds on behalf of Owner. 

(c) Annual Budgets. Manager shall prepare an annualized budget for the operation of the Premises and submit the same to
Owner for approval (the “Annualized Budget”). Manager will use its commercially reasonable efforts to operate the Premises pursuant to the Annualized Budget; provided, however, Manager shall have no liability to Owner for failure to meet
such Annualized Budget. The Annualized Budget shall include a comparison back to the original underwriting performed at the time of Owner’s acquisition of the Premises and prior year performance. The first Annualized Budget has been prepared
and approved for the year commencing [            ], [    ] 20[    ] and ending on December 31, 20[    ]. Notwithstanding
the period covered by the first Annualized Budget, all subsequent Annualized Budgets shall cover the period from January 1st of each year through December 31st of the same year. The proposed

  
 3 

 
Annualized Budget for each calendar year shall be submitted by Manager to Owner by December 1st of the year preceding the year for which it applies, and Owner shall notify Manager within
fifteen (15) days of receipt of such Annualized Budget as to whether Owner has or has not approved the proposed Annualized Budget. If Owner does not approve the proposed Annualized Budget, Owner shall notify Manager of the specifics of such
disapproval within such fifteen (15) day period and Manager shall make the necessary amendments to the Annualized Budget. During the time Manager is preparing these amendments, Manager will continue to operate the Premises according to the last
approved Annualized Budget. Owner’s approval of the Annualized Budget shall constitute approval for Manager to expend sums for all budgeted expenditures, without the necessity to obtain additional approval of Owner under any other expenditure
limitations as set forth elsewhere in this Agreement. 
 (d) Non-Budgeted Expenses over $25,000. Manager shall secure
the approval of, and execution of appropriate agreements by, Owner for any non-budgeted and non-emergency/contingency capital items, alterations or other expenditures in excess of Twenty-Five Thousand Dollars ($25,000.00) for any one item, securing
for each item at least three (3) written bids, if practicable, or providing evidence satisfactory to Owner that the agreed amount is lower than industry standard pricing, from responsible contractors. Manager shall have the right from time to
time during the term hereof, to contract with and make purchases from entities or affiliates of such entities providing services to the Parent Company and third party agents; provided that contract rates and prices are competitive with other
available sources. Manager, at any time, and from time to time, may request and receive the prior written authorization of Owner for any one or more purchases or other expenditures, notwithstanding that Manager may otherwise be authorized hereunder
to make such purchases or expenditures. 
 (e) Third-Party Agreements. Owner hereby appoints Manager as Owner’s
authorized agent for the purpose of executing, as agent for Owner, any agreements with third-parties necessary for operation of the Premises. For example, and not in limitation of the foregoing, Manager shall negotiate and enter into contracts for
services and items in the Annualized Budget relating to the Premises. 
 (f) Manager Employees. Manager shall hire,
supervise, discharge and pay salary and benefit expenses for all employees of Manager or Manager’s sole member, as Manager determines necessary to perform Manager’s duties described in this Agreement including, but not limited to managers,
operations managers, senior managers, assistant managers, leasing consultants, engineers, janitors and maintenance personnel and marketing staff. All expenses of such employment, including but not limited to, wages, salaries, insurance, benefits,
employment related taxes, overhead and other governmental charges, shall be deemed operational expenses of the Premises and Owner shall reimburse Manager for such expenses which may be charged to Owner on a per unit basis or a pro rata expense to
the Premises, as applicable. Notwithstanding the foregoing, salaries and benefits of Manager’s employees who also serve as the one of the Parent Company’s executive officers or as an executive officer of the Manager shall not be reimbursed
by the Owner. The number and classification of employees serving the Premises shall be as determined by Manager to be appropriate for the proper operation of the Premises; provided that Owner may request

  
 4 

 
changes in the number or classification of employees, and Manager shall make all requested changes unless in its judgment the resulting level of operation or maintenance of the Premises will be
inadequate. Manager shall honor any collective bargaining contract covering employment at the Premises which is in effect upon the date of execution of this Agreement; provided that Manager shall not assume or otherwise become a party
to any collective bargaining contract for any purpose whatsoever and all personnel subject to a collective bargaining contract shall be considered the employees of the Owner and not Manager. 

(g) Insured Losses. 

i. Manager shall be responsible for taking all steps necessary to file any claim for insured losses or damages; provided that
Manager will not make any adjustments or settlements in excess of $50,000.00 without Owner’s prior written consent. 

ii. Manager shall coordinate with the appropriate insurance company or companies, if applicable, to process claims. 

iii. Manager shall administer compliance of insurance provisions of tenant leases for all vendors and commercial tenants,
including confirming insurance requirements for any special events at the Premises and obtaining certificates of insurance. 

iv. At the request of Owner, Manager shall assist Owner’s insurance consultants with any necessary insurance matters. 

v. Manager shall attend Owner’s meetings regarding loss control and claims. 

(h) Monthly Remittance. Manager shall remit to Owner the excess of Gross Income over expenses paid pursuant to
Section 3(b) hereof (“Net Proceeds”) for each month as directed by Owner at the address as stated in Section 7 hereof. 

(i) Reporting. Upon the request of Owner, Manager shall render reports for the Premises. Such reports may include
specific and detailed line item information for budget comparison, expense detail, payables and receivables information, leasing progress, marketing information, peer comparison, capital plans and all other measurements of the key performance
indications of the Premises. 
 (j) Litigation. Manager shall institute and prosecute actions to evict tenants and to
recover possession of the Premises or portions thereof, and in the name of Owner to sue for and recover rent and other sums due; and to settle, compromise and release such actions or suits, or reinstate such tenancies; provided, however, if the
tenancy subject to such proceedings is of a term greater than thirty-six (36) months, Manager shall obtain Owner’s consent prior to instituting any such proceedings. Manager and Owner shall concur on the selection of the attorney to handle
any such litigation. 

  
 5 

 (k) Replacements and Repairs. Pursuant to the Annualized Budget and at
Owner’s cost, and when required, Manager shall make or cause to be made all ordinary repairs and replacements necessary to preserve the Premises in its present condition, in all material respects, and for the operating efficiency thereof.
Manager shall also perform all alterations required to comply with any lease requirements, work with municipalities to comply with any code or lender requirements, attend lender inspections and assist with the lender reserve requirement processes.

 (l) Leasing Services. 

i. Manager shall perform leasing services for the Premises, including, but not limited to, hiring all third-party referral
services, negotiating contracts with such companies and tracking leasing and marketing progress on all assets. Commissions paid to third-party referral services shall be an expense of the Premises and charged to Owner. 

ii. Manager shall establish a leasing and marketing committee comprised of Manager employees to oversee the leasing and
marketing services rendered to Owner under this Agreement (the “Leasing and Marketing Committee”). The Leasing Committee shall hold monthly meetings to which Owner may attend (the “Leasing and Marketing Committee Meetings”). 

iii. Manager shall monitor current market conditions and visit competitive properties in the surrounding area. Manager shall
report findings at the Leasing Committee Meetings. 
 iv. From time to time, Manager shall attend conferences related to the
asset class of the Premises, including, but not limited to, ICSC, NAREIT, NAA, and NMHC, as applicable. If requested by Owner, Manager shall appropriately staff booths for Owner at such conferences to represent Owner’s interests and coordinate
all necessary marketing materials and events to maximize Owner’s exposure at such conferences. 
 v. Manager shall
negotiate new leases and administer existing leases, including, but not limited to, processing assignments, renewal agreements, lease amendments and terminations. Manager shall have the authority to enter into, on behalf of Owner, all documents
related to leasing including, but not limited to: leases, assignments, amendments, riders, addendums and memorandums of leases. 

vi. Manager shall evaluate leasing activity of Premises and identify potential re-developments or re-configurations, including,
but not limited to, a discussion of all proposals regarding the same. 
 vii. Manager shall track all leasing calls and
inquiries. 

  
 6 

 viii. Manager shall prepare and maintain leasing reports as required by Owner
which shall track performance of leasing activity. 
 ix. Manager shall review tenant credit reports for new tenants and
assignments and subleases. When applicable, such review may include, but not be limited to, preparing full financial packages of review of both corporate and individual financial investigations, net worth analysis, net present value calculations and
any other financial measures requested by the Owner. Manager shall be entitled to charge tenant for credit check fees and lease assignment and sublet fees (if provided by applicable lease) and shall not be required to remit such fees to Owner but
may retain such fees. 
 x. If a proposed new lease for the Premises is outside the parameters set by the Annualized Budget,
Manager shall complete analysis of credit and financials of the tenant under such proposed lease for the Leasing and Marketing Committee’s review and approval at the Leasing and Marketing Committee Meeting. 

xi. With respect to replacing tenants, Manager shall provide consultation to Owner, market analysis, comparison information and
site visits for leasing potential. 

  
 7 

 (m) Operations. 

i. As requested by Owner and if available for the Premises, Manager shall obtain and administer bulk purchasing and cost
efficiency programs for utilities. 
 ii. Manager shall create preventative maintenance programs for the Premises and oversee
crisis management for flood, fire, and hurricanes, etc. 
 (n) Marketing. 

i. At the request of Owner, Manager shall create a marketing program for the Premises, including, but not limited to, preparing
and maintaining a website, social media and mobile phone apps. 
 ii. If the Premises is a multi-family property, at the
request of Owner, Manager shall: 
  

	 	A.	Advertise the Premises, including, but not limited to advertising through signage, on websites, in local newspapers and rental guides, and with area referral services. 

 

	 	B.	Prepare weekly status reports that will summarize the rental activity of the Premises for the previous week. 

  
 8 

 (o) Real Estate Consultative Services. 

i. Upon request of Owner, Manager shall explore strategic alternatives for the Premises. In addition, Manager shall use a
budget and forecasting tool, e.g., Cougar software or ARGUS, to assist in continuous review of Premises performance. 
 ii.
Manager shall attend committee meetings at the request of Owner. 
 iii. Manager shall provide oversight and management for
the disposition of the Premises if requested by Owner. 
 iv. At the request of Owner, Manager shall perform additional tasks
such as evaluating best use; taking calls for offers to purchase the Premises, determining potential out-parcel development, and reviewing additional GLA capabilities. 

v. Manager shall assist Owner in analyzing the Premises for potential asset impairment issues. 

vi. If applicable, Manager shall work with Owner on CAM payment best-practice compliance and review of business intelligence
and information management systems. 
 (p) Electronic Document Management. Manager shall organize all documents
related to the Premises, including, but not limited to leases, contracts, invoices checks and receipts, in an electronic format with constant real time information for Owner’s access. 

(q) Internal Controls/Sarbanes-Oxley Compliance. If requested by Owner, Manager shall: 

i. Dedicate staff to monitor and review all incoming invoices, leases, and other control points and procedures according to
Owner’s internal control matrix (the “Internal Control Matrix”) as updated from time to time by Owner. 
 ii.
Attend bi-weekly meetings with Owner to review Internal Control Matrix. 
 iii. Coordinate audits of leases. 

iv. Travel to satellite offices to insure internal control compliance and perform random spot checking. 

v. Adhere to all policies stated in Internal Control Matrix. 

  
 9 

 (r) Tenant Credit Monitoring. Where applicable, Manager shall: 

i. Perform tenant surveys to foster tenant retention and identify problems. 

ii. Dedicate staff to pursue difficult collection accounts, monitor bankruptcies and resolve material disputes. 

(s) Master Leases and Earnouts. If the Premises is subject to a so-called Master Lease or Earnout arrangement, Manager
shall dedicate a staff member to monitor and invoice all of the Master Leases. Such staff member shall resolve issues concerning monthly billings, track new tenant move-in dates and authorize release and close-out of Master Lease escrows. In
addition, Manager shall reconcile all Master Lease accounts on a monthly basis. Manager shall also coordinate and assist Owner with Earnouts. 

(t) Post-Closing and New Building/Tenant Set-Up Duties. Manager shall coordinate any existing post-closing items
including, but not limited to, the transfer of all utilities from the previous owner of the Premises, CAM reconciliations and prorations, if applicable, and bringing tenants into Owner’s software system. In addition, Manager shall send tenants
welcoming letters which include, the direction to pay all future rents to Manager, wiring instructions, a form W-9, notification from the previous owner about the sale, a letter of introduction to property management and lease assignment and related
documents, as requested. 
 4. SubManager. Notwithstanding anything to the contrary contained in this Agreement, Owner acknowledges
and agrees that any of the duties of Manager as contained herein may be delegated by Manager and performed by an affiliate of Manager or third-party agent (a “SubManager”) with whom Manager contracts in writing for the purpose of
performing such duties. Owner specifically grants Manager the authority to enter into management agreements with any SubManager; provided that Owner shall have no liability or responsibility to any SubManager for the payment of the
SubManager’s fee or for reimbursement to the SubManager of its expenses or to indemnify the SubManager in any manner for any matter; and provided further that Manager shall require such Sub-Manager, in the written agreement
setting forth the duties and obligations of such SubManager, to indemnify Owner for all loss, liability, damage or claims incurred by Owner as a result of the delegation of duties by Manager to SubManager; provided further that Manager shall remain
liable to Owner for performance of the duties of Manager contained in this Agreement. Owner further acknowledges and agrees that Manager may assign this Agreement and all of Manager’s rights and obligations hereunder, to another management
entity that is then managing other property for Owner or the Parent Company (“Successor Manager”). Owner specifically grants Manager the authority to make such an assignment of this Agreement to a Successor Manager. 

  
 10 

 5. Indemnification. Under the Master Agreement, the Parent Company has agreed to
indemnify the Manager and its officers, directors, members, managers, employees and agents in certain instances and against certain liabilities, including for any losses arising from this Agreement, as set forth in the Master Agreement. 

6. Management Fees. For the services other than those described in Section 3(l) (Leasing Services), Owner agrees to pay
Manager, monthly, a management fee hereunder for the services provided by Manager hereunder performed, directly or through its affiliates, agents or Sub-Managers, in an amount equal to up to: four percent (4.0%) for multi-tenant properties
– unless otherwise approved by Parent Company’s Board of Directors including a majority of Parent Company’s independent directors of the Gross Income for the month in which the management fee is paid (the “Management Fee”),
which shall be deducted monthly by Manager and retained by Manager from Gross Income prior to payment to Owner of Net Proceeds; provided, however, Owner shall authorize the payment and amount of the monthly fee to Manager prior to the remittance of
Net Proceeds to Owner. For purposes of calculating the Management Fee, Gross Income shall not include security deposits. Owner agrees to pay additional fees for services rendered under 3(l)(Leasing Services), such additional fees are hereinafter
referred to as the “Leasing Services Fees.” The Leasing Services Fees shall be based upon prevailing market rates applicable to the geographic market of the Premises or part of the site and support staff employee incentive bonus plan for
renewals and occupancy goals. Owner acknowledges and agrees that Manager may pay or assign all or any portion of its Management Fee to a SubManager as described in Section 4 hereof. 

7. Intentionally Omitted. 

8. No Structural Alterations. Owner expressly withholds from Manager any power or authority to make any structural changes to any
building on the Premises or to make any other major alterations or additions in or to any such building or equipment therein. Without the prior written direction from Owner, Manager shall not incur any expense chargeable to Owner, other than
expenses its duties under this Agreement, except in the event where Manager makes all emergency repairs as may be required to ensure the safety of persons or property which are immediately necessary for the preservation and safety of the Premises or
the safety of the tenants and occupants thereof or are required to avoid the suspension of any necessary services to the Premises. 
 9.
Notice of Non-Compliance with Laws. Manager shall be responsible for notifying Owner in the event Manager receives a material written notice that any building on the Premises or any equipment therein does not comply with the requirements of
any constitutional provision, statute, ordinance, law or regulation of any governmental body or any order or ruling of any public authority or official thereof having or claiming to have jurisdiction thereover (collectively, “Governmental
Requirements”). Manager shall promptly forward to Owner any material written complaints, warnings, notices or summonses received by the Manager relating to these matters. Owner represents to Manager that to the best of Owner’s knowledge
the Premises, 

  
 11 

 
the structures thereon and all equipment servicing the Premises and structures thereon are in current compliance with all Governmental Requirements. In connection with any inquiry by any public
authority or official, Manager is authorized to disclose name and address of the Owner. In the event it is alleged or charged that any building on the Premises or any equipment therein or any act or failure to act by Owner with respect to the
Premises or the sale, rental, or other disposition thereof fails to comply with, or is in violation of any Governmental Requirements, and the Manager, in its sole and absolute discretion, considers that the action or position of Owner with respect
thereto may result in damages, fines, prosecutions or other liabilities to the Manager, Manager shall have the right to terminate this Agreement at any time by written notice to Owner of its election to do so, which termination shall be effective
upon delivery of the notice to Owner. Manager’s termination of this Agreement pursuant to this Section 9 shall not release the indemnities of Owner set forth in this Agreement and shall not terminate any liability or obligation of
Owner to Manager for any payment, reimbursement, or other sum of money then due and payable to the Manager hereunder, which shall be paid by Owner to Manager forthwith or by Manager’s deduction thereof from Gross Income. 

10. Payment of Fees and Actions upon Termination.  

(a) The Manager shall not be entitled to compensation after the date of termination of this Agreement for further services
hereunder, but shall be paid all compensation accruing to the date of termination. In connection with the termination of this Agreement, the Manager shall: 

i. pay over to Owner all monies collected and held for the account of Owner pursuant to this Agreement, after deducting any
accrued compensation and reimbursement for expenses to which the Manager is entitled; 
 ii. deliver to Owner a full
accounting, including a statement showing all payments collected by the Manager and a statement of all money held by the Manager, covering the period following the date of the last accounting furnished to Owner; 

iii. deliver to Owner all property and documents of Owner or Parent Company then in the custody of the Manager; and 

iv. cooperate with Owner and take all reasonable steps requested by Owner to assist it in making an orderly transition of the
functions performed by the Manager. 
 (b) Upon termination, Owner shall specifically assume in writing all obligations under
any third-party agreements entered into by Manager pursuant to Section 3(e) on behalf of Owner. 
 (c)
Notwithstanding the foregoing, the Owner shall reimburse the Manager for all costs and expenses (including, without limitation, reimbursement for salaries, bonuses, benefits and severance payments but not for salaries, bonuses, benefits and
severance payments to executive officers of the Manager) incurred by Manager for the time spent by Manager providing the transition services required in Section 10(a) above. Such reimbursements shall continue for so long a period of time
as Owner avails itself of such transitions services and shall be paid by Owner upon receipt of an invoice from Manager. 

  
 12 

 11. Survival. All provisions of this Agreement that require Owner or Parent Company to
have insured, or to protect, defend, save, hold and indemnify Indemnified Parties or to compensate or reimburse Manager shall survive any expiration or termination of this Agreement and if Manager is or becomes involved in any claim, proceeding or
litigation by reason of having been Manager of Owner, such provisions shall apply as if this Agreement were still in effect. 
 12.
Insurance. Owner agrees that Manager shall be listed as an additional insured on all insurance policies related to the Premises. Owner hereby authorizes Manager to take all steps necessary to cause Manager to be named as an additional insured
including, but not limited to, obtaining evidence of such additional insured status from Inland Insurance and Risk Management Services, Inc. 

13. Notices. All notices, requests or demands to be given under this Agreement from one party to the other (collectively,
“Notices” and individually a “Notice”) shall be in writing and shall be given by personal delivery, or by overnight courier service for next Business Day delivery at the other party’s address set forth below, or by telecopy
transmission at the other party’s facsimile telephone number set forth below. Notices given by personal delivery (i.e., by the sending party or a messenger) shall be deemed given on the date of delivery. Notices given by overnight
courier service shall be deemed given upon deposit with the overnight courier service and Notices given by telecopy transmission shall be deemed given on the date of transmission provided such transmission is completed by 5:00 p.m. (sending
party’s local time) on a Business Day, otherwise delivery by transmission shall be deemed to occur on the next succeeding Business Day. If any party’s address is a business, receipt, or the refusal to accept delivery, by a receptionist or
by any person in the employ of such party, shall be deemed actual receipt by the party of Notices. The term, Business Day, means any day other than Saturday, Sunday or any other day on which national banks are required or are authorized to be closed
in Chicago, Illinois. Notices may be issued by an attorney for a party and in such case such Notices shall be deemed given by such party. The parties’ addresses are as follows 

 

			
	If to the Company, to:	  	 Inland Residential Properties Trust, Inc.
 2901
Butterfield Road
 Oak Brook, IL 60523
 Attention:
      Mr. Mitchell Sabshon, President
 Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

		
	With a copy to:	  	 Inland Residential Business Manager & Advisor, Inc.

2901 Butterfield Road
 Oak Brook, IL 60523

Attention:       Ms. Roberta S. Matlin, Vice President

Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

		
	With a copy to:	  	 Inland Residential Properties Trust, Inc.
 2901
Butterfield Road
 Oak Brook, IL 60523
 Attention:
      Chairman of Audit Committee
 Telephone:     (630) 218-8000

Facsimile:      (630) 218-4955

  
 13 

			
		
	If to the Manager, to:	  	 Inland Residential Real Estate Services LLC

2901 Butterfield Road
 Oak Brook, IL 60523

Attention:       Ms. JoAnn McGuinness

Telephone:     (630) 954-5685

Facsimile:      (630) 368-2277

 A party’s address for Notice may be changed from time to time by notice given to the other party in
the manner herein provided for giving Notice. Copies of Notices are for informational purposes only, and a failure to give or receive copies of any Notice shall not be deemed a failure to give notice, and shall in no way adversely affect the
effectiveness of such Notice given to the addressee party. 
 14. Miscellaneous.  

a. Nothing contained herein shall be construed as creating any rights in persons or entities who are not the parties to this
Agreement. Manager and Owner shall not be construed as joint venturers or partners of each other pursuant to this Agreement, and neither shall have the power to bind or obligate the other except as set forth herein. In all respects, the status of
Manager to Owner under this Agreement is that of an independent contractor. 
 b. If any provisions of this Agreement, or the
application of any such provisions to parties hereto, shall be held by a court of competent jurisdiction to be unlawful or unenforceable, the remaining provisions of this Agreement shall nevertheless be valid, enforceable and shall remain in full
force and effect, and shall not be affected, impaired or invalidated in any manner. This Agreement, its validity, performance and enforcement shall be construed in accordance with, and governed by, the internal laws of the State of Illinois without
regard to conflicts of law principles. 
 c. This Agreement shall be binding upon the successors and assigns of Manager and
the successors and assigns of Owner and the successors and assigns of Parent Company if and only if the Parent Company is the parent company of the successor or assign of Owner. Except as otherwise noted herein, this Agreement contains the entire
Agreement of the parties relating to the subject matter hereof, and there are no understandings, representations or undertakings by either party except as herein contained. This Agreement may be modified solely by a written agreement executed by
both parties hereto. 
 d. If any party hereto defaults under the terms or conditions of this Agreement, the defaulting party
shall pay the non-defaulting party’s court costs and reasonable attorneys’ fees incurred in the enforcement of any provision of this Agreement. 

  
 14 

 e. Either party’s failure to exercise any right under this Agreement shall
neither constitute a waiver of any other terms or conditions of this Agreement with respect to any other or subsequent breach, nor a waiver by that party of its right at any time thereafter to require exact and strict compliance with the terms of
this Agreement. 
 f. All exhibits attached to this Agreement are hereby incorporated by reference. 

[THE REMAINDER OF THIS PAGE INTENTIONALLY BLANK] 

  
 15 

 WHEREFORE, the undersigned have executed this Agreement by their duly authorized officers or
representatives as of the date first above written. 
  

									
	MANAGER:	 		 	OWNER:
			
	INLAND RESIDENTIAL REAL ESTATE SERVICES LLC, a Delaware limited liability company	 		 	[SINGLE MEMBER LLC]
					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Its:	 	 	 		 	Its:	 	 

 Exhibit A 

Legal Description 
 See attached.EX-10.4

 Exhibit 10.4 

FORM OF EMPLOYEE AND DIRECTOR 

INCENTIVE RESTRICTED SHARE PLAN 

OF 
 INLAND RESIDENTIAL
PROPERTIES TRUST, INC. 
 SECTION 1. PURPOSES OF THE PLAN AND DEFINITIONS 

1.1 Purposes. The purposes of the Employee and Director Incentive Restricted Share Plan (this “Plan”) of Inland
Residential Properties Trust, Inc. (the “Company”) are to: 
 (1) provide incentives to selected
Eligible Persons (as defined below) chosen to receive share-based awards because of their ability to improve operations and increase profits of the Company; 

(2) encourage individuals to accept positions with or continue to provide services to the Company, the Business Manager and
Affiliates of the Company, as applicable; and 
 (3) increase the interest of Directors in the Company’s welfare through
their participation in the growth in value of the Company’s Shares. 
 To accomplish these purposes, this Plan provides a means whereby
Eligible Persons may receive Awards. 
 1.2 Definitions. For purposes of this Plan, the following terms have the following meanings:

 “Affiliate” has the meaning ascribed to such term in the Articles of Incorporation. 

“Applicable Laws” means the requirements relating to the administration of Awards under state
corporation laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Shares are listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted
under this Plan. 
 “Articles of Incorporation” means the articles of incorporation of
the Company, as the same may be amended from time to time. 
 “Award” means any award of
Restricted Shares under this Plan. 
 “Award Agreement” means, with respect to each
Award, the written agreement executed by the Company and the Participant or other written document approved by the Board setting forth the terms and conditions of the Award. 

“Board” means the Board of Directors of the Company. 

“Business Combination” means the acquisition, disposition, mortgage, pledge, encumbrance, hypothecation
or exchange of all or substantially all of the assets of the Partnership (including the exercise or grant of any conversion, option, privilege, or subscription right or other right available in connection with any assets at any time held by the
Partnership) or the merger, consolidation or other combination of the Partnership with or into another general partnership, limited partnership, corporation, joint venture, trust, business trust, real estate investment trust, limited liability
company, limited liability partnership, cooperative or association. 
 “Business Management
Agreement” shall mean that agreement dated            , 2014, by and among the Company, the Business Manager, Inland Residential Properties Trust Special Limited Partner, LLC
and Inland Residential Operating Partnership, L.P. 

 “Business Manager” means the Person or Persons, if any,
appointed, employed or contracted with by the Company to be responsible for directing or performing the day-to-day business affairs of the Company. The initial Business Manager is Inland Residential Business Manager & Advisor, Inc.

 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 “Company” means Inland Residential Properties Trust, Inc. 

“Director” means a person elected or appointed and serving as a member of the Board in accordance with
the Articles of Incorporation and the Maryland General Corporation Law. 
 “Director
Shares” has the meaning set forth in Section 6. 
 “Effective Date”
has the meaning set forth in Section 15. 
 “Eligible Person” has the meaning set
forth in Section 2. 
 “Fair Market Value” means with respect to Shares:

 (i) If the Shares are listed on any established stock exchange or a national market system, their Fair Market Value shall be the
closing sales price for the Shares, or the mean between the high bid and low asked prices if no sales were reported, as quoted on such system or exchange (or, if the Shares are listed on more than one exchange, then on the largest such exchange) for
the date the value is to be determined (or if there are no sales or bids for such date, then for the last preceding business day on which there were sales or bids), as reported in The Wall Street Journal. 

(ii) If the Shares are not listed, their Fair Market Value shall be: (A) the offering price, net of sales commissions and the dealer
manager fee, if the Shares are granted before the Company begins calculating the estimated value per share pursuant to the Prospectus, and (B) the estimated per share value of the Shares as determined in good faith by the Board once the Company
begins to estimate value per share pursuant to the Prospectus. 
 “Grant Date” has the meaning set forth in
Section 5.1(c). 
 “Investment” or “Investments” means any
investment or investments by the Partnership, directly or indirectly, in Properties, Loans or other Permitted Investments. 

“Investment Liquidity Event” means a liquidation or the sale of all or substantially all the Investments
(regardless of the form in which such sale shall occur, including through a merger or sale of stock or other interests in an entity, and regardless of whether such transaction is taxable or tax-free). For the avoidance of doubt, an Investment
Liquidity Event includes a Business Combination and a Transaction (including a merger in which the Company is the surviving entity). 

“Listing” means the listing of the shares of the Company’s common stock on a national securities
exchange. 
 “Loans” means mortgage loans and other types of debt financing investments
made by the Partnership, either directly or indirectly, including through ownership interests in a joint venture or other entity and including mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound mortgage loans, construction
mortgage loans, loans on leasehold interests, and participations in such loans. 
 “Non-Employee
Director” means a person who is a Director of the Company, but who is not also an employee or officer of the Company or the Business Manager. 

“Partnership” means Inland Residential Operating Partnership, L.P. and any successor of the
Partnership. 

  
 2 

 “Participant” means an Eligible Person who is granted an
Award. 
 “Permitted Investments” means all investments (other than Properties and
Loans) in which the Partnership acquires an interest, either directly or indirectly, including through ownership interests in a joint venture or other entity, pursuant to the certificate of limited partnership filed with the Secretary of State of
the State of Delaware, the limited partnership agreement of the Partnership and the investment objectives and policies adopted by the the Company, as general partner, from time to time, other than short-term investments acquired for purposes of cash
management, and that allow the Company, as general partner, to meet the requirements for qualification as a REIT under the Code and the final, temporary or proposed income tax regulations promulgated under the Code, as such regulations may be
amended from time to time (including corresponding provisions of succeeding regulations). 

“Person” means an individual, a corporation, partnership, trust, association, or any other entity.

 “Plan” means this Employee and Director Incentive Restricted Share Plan. 

“Property” or “Properties” means any real property or properties transferred or
conveyed to the Partnership or any subsidiary of the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a joint venture or partnership in which the Partnership is, directly or indirectly, a
co-venturer or partner. 
 “Prospectus” means the prospectus included in the
Company’s Registration Statement on Form S-11 (Commission File No. 333-199129), as amended or supplemented from time to time. 

“REIT” means a real estate investment trust as defined in Section 856 of the Code.

 “Restricted Period” has the meaning set forth in Section 5.1(e). 

“Restricted Shares” means an Award granted under Section 5.2. 

“Retainer” has the meaning set forth in Section 6.3. 

“Section 409A of the Code” means the nonqualified deferred compensation rules under Section 409A of
the Code and any applicable Treasury regulation or other official guidance promulgated thereunder. 

“Securities Act” means the Securities Act of 1933, as amended from time to time. 

“Shares” means shares of the Company’s Class A common stock, $0.001 par value per share.

 “Termination” means that a Participant has ceased, for any reason and with or without
cause, to be an employee, officer or Director of the Company, an employee or officer of the Business Manager or employee, officer or director of any Affiliate of the Company. However, the term “Termination” shall not include a transfer of
a Participant from the Company to the Business Manager or any Affiliate of the Company or the Business Manager or vice versa, or from any such Affiliate to another, in each case to another position that would be deemed an Eligible
Person under this Plan, or a leave of absence duly authorized by the Company unless the Board has provided otherwise. 

“Transaction” means a merger, consolidation or other combination of the Company with or into another
Person (other than a merger in which the Company is the surviving entity) or sale of all or substantially all of its assets, or any reclassification, or any recapitalization of outstanding common stock of the Company (other than a change in par
value, or from par value to no par value, or as a result of a subdivision or combination of common stock). 

  
 3 

 SECTION 2. ELIGIBLE PERSONS 

Every Eligible Person shall be eligible to receive Awards hereunder as determined by the Board in accordance with the terms and conditions of
this Plan. “Eligible Person” means any individual who, at or as of the Grant Date, is: 
 (a) an employee or officer of the Company
or any Affiliate of the Company; 
 (b) a Director of the Company; 

(c) a director of any Affiliate of the Company; or 

(d) an employee, officer or director of the Business Manager. 

SECTION 3. SHARES SUBJECT TO THIS PLAN 
 The
total number of Shares that may be issued pursuant to Awards shall not exceed 5.0% of the Company’s outstanding Shares on a fully diluted basis at any time and in any event will not exceed 438,404 Shares. The number of Shares reserved for
issuance under this Plan is subject to adjustment in accordance with the provisions for adjustment in Section 5.1. If any Shares awarded under this Plan are forfeited for any reason, the number of forfeited Shares shall again be
available for purposes of granting Awards under this Plan. 
 SECTION 4. ADMINISTRATION 

4.1 Administration. This Plan shall be administered by the Board. Any determinations made and actions taken by the Board with respect to
this Plan other than with respect to the granting and setting the terms and conditions of any Awards under this Plan, shall be made by a majority of its members. Other than for Awards granted to Non-Employee Directors under Section 6,
any determinations made and actions taken by the Board with respect to the granting and setting the terms and conditions of any of any Awards under this Plan shall require the approval of at least seventy-five percent (75%) of its members. 

4.2 Board’s Powers. Subject to the express provisions of this Plan, the Board shall have the authority, in its sole discretion:

 (a) to adopt, amend and rescind administrative and interpretive rules and regulations relating to this Plan; 

(b) to determine the Eligible Persons to whom, and the time or times at which, Awards shall be granted; 

(c) to determine the number of Shares that shall be the subject of each Award; 

(d) to determine the terms and provisions of each Award (which need not be identical) and, subject to Section 9, any amendments thereto,
including provisions defining or otherwise relating to: 
 (i) the extent to which the transferability of Shares issued or
transferred pursuant to any Award is restricted; 
 (ii) the effect of Termination on an Award; 

(iii) the effect of approved leaves of absence; and 

(iv) to construe the respective Award Agreements and this Plan. 

(e) to make determinations of the Fair Market Value of Shares; 

  
 4 

 (f) to waive any provision, condition or limitation set forth in an Award Agreement; 

(g) to delegate its duties under this Plan to such agents as it may appoint from time to time; and 

(h) to make all other determinations, perform all other acts and exercise all other powers and authority necessary or advisable for
administering this Plan, including the delegation of those ministerial acts and responsibilities as the Board deems appropriate. 
 The
Board may correct any defect, supply any omission or reconcile any inconsistency in this Plan, in any Award or in any Award Agreement in the manner and to the extent it deems necessary or desirable to implement this Plan, and the Board shall be the
sole and final judge of that necessity or desirability. The determinations of the Board on the matters referred to in this Section 4.2 shall be final and conclusive. 

4.3 Term of Plan. No Awards shall be granted under this Plan after 10 years from the Effective Date of this Plan. 

SECTION 5. CERTAIN TERMS AND CONDITIONS OF AWARDS 

5.1 All Awards. All Awards shall be subject to the following terms and conditions: 

(a) Changes in Capital Structure. If the number of outstanding Shares is increased by means of a share dividend payable in Shares, a
share split or other subdivision or by a reclassification of Shares, then, from and after the record date for such dividend, subdivision or reclassification, the number and class of Shares subject to this Plan shall be increased or adjusted, as
applicable, in proportion to such increase in outstanding Shares. If the number of outstanding Shares is decreased by means of a reverse share split or other combination or by a reclassification of Shares, then, from and after the record date for
such combination or reclassification, the number and class of Shares subject to this Plan shall be decreased or adjusted, as applicable, in proportion to such decrease in outstanding Shares. 

(b) Certain Corporate Transactions. In the event of any change in the capital structure or business of the Company by reason of any
recapitalization, reorganization, merger, consolidation, split-up, subdivision, combination, exchange of Shares or any similar change affecting the Company’s capital structure or business, then the aggregate number and kind of Shares which
thereafter may be issued under this Plan shall be appropriately adjusted consistent with such change in such manner as the Board may deem equitable to prevent substantial dilution or enlargement of the rights granted to, or available for,
Participants under this Plan, and any such adjustment determined by the Board in good faith shall be binding and conclusive on the Company and all Participants and employees and their respective heirs, executors, administrators, successors and
assigns. 
 (c) Grant Date. Each Award Agreement shall specify the date of issuance of the Award (the “Grant
Date”). 
 (d) Vesting. Each Award shall vest, and any restrictions thereunder shall lapse, as the case may be, at such
times and in such amounts as may be specified by the Board in the applicable Award Agreement. 
 (e) Nonassignability of Rights.
Awards shall not be transferable during the period or periods set by the Board (the “Restricted Period”) commencing on the Grant Date of such Award, as set forth in the applicable Award Agreement. 

(f) Termination from the Company, the Business Manager or any Affiliate of the Company or Termination of the Business Management
Agreement. The Board shall establish, in respect of each Award when granted, the effect of a Termination or, if applicable, the termination of the Business Management Agreement, on the rights and benefits thereunder and in so doing may, but need
not, make distinctions based upon the cause of termination (such as retirement, death, disability or other factors) or which party effected the termination (the employer, the employee or the Business Manager). 

  
 5 

 (g) Minimum Purchase Price. Notwithstanding any provision of this Plan to the contrary, if
authorized but previously unissued Shares are issued under this Plan, such Shares shall not be issued for a consideration which is less than as permitted under Applicable Laws, and in no event, shall such consideration be less than the par value per
Share multiplied by the number of Shares to be issued. 
 (h) Other Provisions. Each Award Agreement may contain such other terms,
provisions, legends and conditions not inconsistent with this Plan, as may be determined by the Board. 
 5.2 Restricted Shares.
Restricted Shares shall be subject to the following terms and conditions: 
 (a) Grant. The Board may grant one or more Awards of
Restricted Shares to any Participant. Each Award of Restricted Shares shall specify the number of Shares to be issued to the Participant, the Grant Date and the restrictions imposed on the Shares including the conditions of release or lapse of such
restrictions. Upon the issuance of Restricted Shares, the Participant may be required to furnish such additional documentation or other assurances as the Board may require to enforce the restrictions applicable thereto. 

(b) Restrictions. Except as specifically provided elsewhere in this Plan or the Award Agreement regarding Restricted Shares, Restricted
Shares may not be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily, until the restrictions have lapsed and the rights to the Shares have vested. The Board may in its sole discretion
provide for the lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service, performance or such other factors or criteria as the Board may determine. 

(c) Rights as a Stockholder. Except as provided in this Section 5 and as otherwise determined by the Board, the Participant
shall have, with respect to Restricted Shares, all of the rights of a holder of Shares including, without limitation, the right to receive any dividends, the right to vote such shares and, subject to and conditioned upon the full vesting of shares
of the Restricted Shares, the right to tender such shares. The Board may, in its sole discretion, determine at the time of grant that the payment of dividends shall be deferred until, and conditioned upon, the expiration of the applicable
Restriction Period. 
 (d) Forfeiture of Restricted Shares. Except to the extent otherwise provided in the applicable Award Agreement,
upon a Participant’s Termination or, if applicable, the termination of the Business Management Agreement, the Participant shall automatically forfeit all Restricted Shares still subject to restriction. 

SECTION 6. DIRECTOR SHARES 
 6.1 Automatic
Grant. Without further action of the Board, each Non- Employee Director shall receive an Award of 54.80 Restricted Shares in January 2015 and 219.20 Restricted Shares thereafter on the date of each annual stockholders’ meeting.
Notwithstanding Section 5.1(c), each such date of receipt of Restricted Shares will be the Grant Date of such Award. 
 6.2
Vesting. Notwithstanding the provisions of Section 5.1(d), Awards of Restricted Shares issued to Non-Employee Directors pursuant to Section 6.1 shall vest over a three-year period following the Grant Date in increments
of 33-1/3% per annum. Notwithstanding the foregoing, 100% of any then unvested Restricted Shares issued to Non-Employee Directors pursuant to Section 6.1 shall become fully vested upon the Company’s consummation of a Listing or
an Investment Liquidity Event. 
 6.3 Election. The Company shall pay to each individual who is a Non-Employee Director an annual fee
in the amount set from time to time by the Board (the “Retainer”). Each Non-Employee Director shall be entitled to receive his or her Retainer exclusively in cash, exclusively in unrestricted Shares (“Director
Shares”) or any portion in cash and Director Shares. Each Non-Employee Director shall be given the opportunity, during the month in which the Non-Employee Director first becomes a Non-Employee Director, and during each December
thereafter, to elect among these choices for the balance of the calendar year (in the case of the election made during the month the Non-Employee Director first becomes a Non-Employee Director) and for the ensuing calendar year (in the case of a
subsequent election made during any December). If the Non-Employee Director chooses to receive 

  
 6 

 
at least some of his or her Retainer in Director Shares, the election shall also indicate the percentage of the Retainer to be paid in Director Shares. If a Non-Employee Director makes no
election during his or her first opportunity to make an election, the Non-Employee Director shall be assumed to have elected to receive his or her entire Retainer in cash. 

6.4 Issuance. The Company shall make the first issuance of Director Shares to electing Directors on the first business day following the
last day of the full calendar quarter following such election. Subsequent issuances of Director Shares shall be made on the first business day of each subsequent calendar quarter and shall be made to all persons who are Non-Employee Directors on that day except any Non-Employee Director whose Retainer is to be paid entirely in cash. The number of Shares issuable to those Non-Employee Directors on the relevant date indicated above
shall equal: 
 (% x R/4)/P, where: 

% = the percentage of the Non-Employee Director’s Retainer that the Non-Employee Director elected or is deemed to have elected to receive
in the form of Director Shares, expressed as a decimal; 
 R = the Non-Employee Director’s Retainer for the year during which the
issuance occurs; and 
 P = the Fair Market Value. 

SECTION 7. SECURITIES LAWS 
 Nothing in this Plan
or in any Award or Award Agreement shall require the Company to issue any Shares with respect to any Award if, in the opinion of counsel for the Company, that issuance could constitute a violation of any Applicable Laws. As a condition to the grant
of any Award, the Company may require the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives, heirs, legatees or distributees) to provide written representations concerning the
Participant’s (or such other person’s) intentions with regard to the retention or disposition of the Shares covered by the Award and written covenants as to the manner of disposal of such Shares as may be necessary or useful to ensure that
the grant or disposition thereof will not violate the Securities Act, any other law or any rule of any applicable securities exchange or securities association then in effect. The Company shall not be required to register any Shares under the
Securities Act or register or qualify any Shares under any state or other securities laws. 
 SECTION 8. EMPLOYMENT OR OTHER RELATIONSHIP 

Nothing in this Plan or any Award shall in any way interfere with or limit the right of the Company, the Business Manager or any Affiliate of
the Company to terminate any Participant’s employment or status as an officer or director at any time, as applicable, nor confer upon any Participant any right to continue in the service of, the Company, the Business Manager or any Affiliate of
the Company. Nothing in this Plan shall interfere with the Company’s ability to terminate the Business Management Agreement in accordance with its terms. 

SECTION 9. AMENDMENT, SUSPENSION AND TERMINATION OF THIS PLAN 

The Board may at any time amend, suspend or discontinue this Plan, provided that such amendment, suspension or discontinuance meets the
requirements of Applicable Laws, including without limitation, any applicable requirements for stockholder approval. Notwithstanding the above, an amendment, suspension or discontinuation shall not be made if it would impair the rights of any
Participant under any Award previously granted, without the Participant’s consent, except to conform this Plan and Awards granted to the requirements of Applicable Laws. The provisions of this Plan relating to Awards for Non-Employee Directors
may not be amended more than once each six months. The Board may amend the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Sections 5.1(a) and 5.1(b) or as otherwise specifically provided herein, no such
amendment or other action by the Board shall adversely impair the rights of any Participant without the Participant’s consent. Notwithstanding any provision of the Plan to the contrary, if the Board determines that any Award may be subject to
Section 409A of the Code, the Board may adopt such amendment to the Plan and the applicable Award 

  
 7 

 
Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions that the Board determines are necessary or
appropriate, without the consent of the Participant, to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the
requirements of Section 409A of the Code. 
 SECTION 10. LIABILITY AND INDEMNIFICATION OF THE BOARD 

No person constituting, or member of the group constituting, the Board shall be liable for any act or omission on such person’s part,
including but not limited to the exercise of any power or discretion given to such member under this Plan, except for those acts or omissions resulting from such member’s gross negligence or willful misconduct. The Company shall indemnify each
present and future person constituting, or member of the group constituting, the Board against, and each person or member of the group constituting the Board shall be entitled without further act on his or her part to indemnity from the Company for,
all expenses (including the amount of judgments and the amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by such person in connection with or arising out of any action, suit or proceeding
to the fullest extent permitted by law and by the Articles of Incorporation and Bylaws of the Company. 
 SECTION 11. SEVERABILITY 

If any provision of this Plan is held to be illegal or invalid for any reason, that illegality or invalidity shall not affect the remaining
portions of this Plan, but such provision shall be fully severable and this Plan shall be construed and enforced as if the illegal or invalid provision had never been included in this Plan. Such an illegal or invalid provision shall be replaced by a
revised provision that most nearly comports to the substance of the illegal or invalid provision. If any of the terms or provisions of this Plan or any Award Agreement conflict with the requirements of Applicable Laws, those conflicting terms or
provisions shall be deemed inoperative to the extent they conflict with Applicable Law. 
 SECTION 12. SECTION 409A OF THE CODE 

Awards granted under the Plan are intended to be exempt from Section 409A of the Code. To the extent that the Plan or an Award is not
exempt from the requirements of Section 409A of the Code, the Plan and such Award is intended to comply with the requirements of Section 409A of the Code and, in each case, the Plan and Awards shall be limited, construed and interpreted in
accordance with such intent. Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on a Participant by Section 409A of the Code or any damages for
failing to comply with Section 409A of the Code. 
 SECTION 13. WITHHOLDING 

The Company shall have the right to deduct from any payment to be made to a Participant, or to otherwise require, prior to the issuance or
delivery of any Shares or the payment of any cash hereunder, payment by the Participant of, any federal, state or local taxes required by law to be withheld. Upon the vesting of Restricted Shares, or upon making an election under Section 83(b)
of the Code, a Participant shall pay all required withholding to the Company. The Board may permit any such statutory withholding obligation with regard to any Participant to be satisfied by reducing the number of Shares otherwise deliverable or by
delivering Shares already owned. 
 SECTION 14. GOVERNING LAW 

This Plan shall be governed and construed in accordance with the laws of the State of Maryland (regardless of the law that might otherwise
govern under applicable principles of conflict of laws). 
 SECTION 15. EFFECTIVE DATE AND PROCEDURAL HISTORY 

This Plan was adopted by the Board on            , 2014 (the
“Effective Date”), and was subsequently approved by the holders of the Company’s voting shares of common stock on            , 2014. 

  
 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]