Document:

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                                                                   Exhibit 10.60

                             ASSIGNMENT OF CONTRACT

          This ASSIGNMENT OF CONTRACT (the "ASSIGNMENT") is made and entered
into this _______ day of February, 2004 by INLAND REAL ESTATE ACQUISITIONS,
INC., an Illinois corporation ("ASSIGNOR") and INLAND WESTERN IRVING LIMITED
PARTNERSHIP, an Illinois limited partnership ("ASSIGNEE").

          Assignor does hereby sell, assign, transfer, set over and convey unto
Assignee all of its right, title and interest as under that certain letter
agreement dated as of November 25, 2003, as amended, and entered into by
MacArthur Crossing Shopping Center Partners, L.P., as Seller, and Assignor, as
(collectively, the "AGREEMENT"), solely as the Agreement applies to the sale and
purchase of the property described by the Agreement, located at Los Colinas
Boulevard and North MacArthur Boulevard, Irving, Dallas County, Texas, and being
legally described in EXHIBIT A, attached hereto and made a part hereof.

     Assignor represents and warrants that it is the Purchaser under the
Agreement, and that it has not sold, assigned, transferred, or encumbered such
interest in any way to any other person or entity. By acceptance hereof,
Assignee accepts the foregoing Assignment and agrees, from and after the date
hereof, to (i) perform all of the obligations of Purchaser under the Agreement,
and (ii) indemnify, defend, protect and hold Assignor harmless from and against
all claims and liabilities arising under the Agreement.

                            (SIGNATURE PAGE FOLLOWS)

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                               SIGNATURE PAGE FOR
                         ASSIGNMENT OF CONTRACT BETWEEN
                    INLAND REAL ESTATE ACQUISITIONS, INC. AND
                    INLAND WESTERN IRVING LIMITED PARTNERSHIP

          IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment
to be executed as of the day and year first above written.

                               ASSIGNOR:

                               INLAND REAL ESTATE ACQUISITIONS, INC., an
                               Illinois corporation

                               By:   /s/ Lou Quilici
                                     --------------------------------
                               Name:     Lou Quilici
                                     --------------------------------
                               Title:    SRVP
                                     --------------------------------

                               ASSIGNEE:

                               INLAND WESTERN IRVING LIMITED
                               PARTNERSHIP, an Illinois limited partnership

                               By:  Inland Western Irving GP, L.L.C., a Delaware
                                    limited liability company

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

                                        By:    /s/ Lou Quilici
                                              ---------------------------------
                                        Name:  Lou Quilici
                                              ---------------------------------
                                        Title: AUTHORIZE AGENT
                                              ---------------------------------

                                    EXHIBITS

                  EXHIBIT A: LEGAL DESCRIPTION OF THE PROPERTY

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                                    EXHIBIT A
                        LEGAL DESCRIPTION OF THE PROPERTY

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                                    EXHIBIT A
                                LEGAL DESCRIPTION

The following seven (7) tracts of land described on the following five (5) pages
and consisting of

Tract 1 - Fee Estate

Tract 2 - Fee Estate

Tract 3 - Fee Estate

Tract 4 - Easement Estate created in Master Declaration of Restrictions, Grant
of Easements and Operating Agreement executed by and between MacArthur Crossing
Land Partners L.P. and Albertson's, Inc. dated January 30, 1995, filed for
record February 1, 1995 and recorded in Volume 95021, Page 3671, Deed Records,
Dallas County, Texas as amended by instruments recorded in Volume 95021, Page
3828, Volume 95062, Page 50, Volume 96239, Page 4879, Vol7ume 96239, Page 5022,
Volume 96244, Page 2481, Volume 97144, Page 6185, Volume 97195, Page 5710 and
Volume 98155, Page 5144, Deed Records, Dallas County, Texas.

Tract 5 - Easement Estate created in Declaration of Common Access and Utility
Easements executed by and between MacArthur Crossing Land Partners L.P. and
present and future land owners dated October 31, 1995, filed for record
November 1, 1995 and recorded in Volume 95214, Page 88, Deed Records, Dallas
County, Texas, as corrected by instruments recorded in Volume 96037, Page 2561
and Volume 96052, Page 3638, Deed Records, Dallas County, Texas.

Tract 6 - Easement Estate created in Declaration of Common Access and Utility
Easements executed by and between MacArthur Crossing Land Partners L.P. and
present and future land owners dated July 31, 1995, filed for record July 31,
1995 and recorded in Volume 95147, Page 1966, Deed Records, Dallas County,
Texas.

Tract 7 - Easement Estate created in Mutual Declaration of Common Access and
Utility Easements executed by and between MacArthur Crossing Land Partners L.P.
and Cheddars, Inc., dated August 23, 1995, filed for record September 18, 1995
and recorded in Volume 95182, Page 6194, Deed Records, Dallas County, Texas.

Tract 8 - Beneficial Interest Estate

Tract 9 - Beneficial Interest Estate

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                                    EXHIBIT A
                                LEGAL DESCRIPTION

TRACT 1:

BEING a tract of land situated in the W.E. FERGUSON SURVEY, Abstract No. 490,
City of Irving, Dallas County, Texas, and being all of Lot 4, Block A of the
SECOND AMENDED PLAT of MACARTHUR CROSSING ADDITION, an addition to the City of
Irving as recorded in Volume 95143, Page 0891 of the Deed Records of Dallas
County, Texas (DRDCT), and being more particularly described as follows:

BEGINNING at an "x" cut in concrete set for corner, said "x" cut being the most
northwesterly corner of said Lot 4, Block A and being in the easterly
right-of-way line of MACARTHUR BOULEVARD (variable width right-of-way);

THENCE departing the easterly right-of-way line of said MACARTHUR BOULEVARD and
along the northerly line of said Lot 4, Block A as follows:

     South 89 degrees 38 minutes 50 seconds East a distance of 60.00 feet to an
     "x" cut in concrete set for corner;

     South 00 degrees 21 minutes 10 seconds West a distance of 35.46 feet to an
     "x" cut in concrete found for corner;

     South 89 degrees 38 minutes 50 seconds East a distance of 190.00 feet to an
     "x" cut in concrete found for corner, said "x" cut being the most
     northeasterly corner of said Lot 4, Block A;

THENCE departing the northerly line of said Lot 4, Block A and along the
easterly line of said Lot 4, Block A South 00 degrees 21 minutes 10 seconds West
a distance of 174.02 feet to and "x" cut in concrete set for corner, said "x"
cut being the most southeasterly corner of said Lot 4, Block A;

THENCE departing the easterly line of said Lot 4, Block A and along the
southerly line of said Lot 4, Block A North 89 degrees 38 minutes 50 seconds
West a distance of 250.00 feet to an "x" cut in concrete found for corner, said
"x" cut being the most southwesterly corner of said Lot 4, Block A and being in
the easterly right-of-way line of said MACARTHUR BOULEVARD;

THENCE departing the southerly line of said Lot 4, Block A and along the
westerly line of said Lot 4, Block A and the easterly right-of-way line of said
MACARTHUR BOULEVARD North 00 degrees 21 minutes 10 seconds East a distance of
209.48 feet to the POINT OF BEGINNING;

CONTAINING within these metes and bounds 1.048 acres or 45,633 square feet of
land, more or less. Bearings shown hereon are based on the SECOND AMENDED PLAT
of MACARTHUR CROSSING ADDITION, an addition to the City of Irving as recorded in
Volume 95143, Page 0891 of the Deed Records of Dallas County, Texas (DRDCT).

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TRACT 2:

BEING a tract of land situated in the W.E. FERGUSON SURVEY, Abstract No. 490,
City of Irving, Dallas County, Texas and being all of LOT 9, BLOCK A of the
SECOND AMENDED Plat of MacARTHUR CROSSING ADDITION, an addition to the City of
Irving recorded in Volume 95143, Page 0891 of the Deed Records of Dallas County,
Texas (DRDCT) and being more particularly described as follows;

BEGINNING at a 5/8 inch iron rod found in concrete at the most northerly
northwesterly corner of said LOT 9, BLOCK A said point being found in the
southerly Right-of-Way line of INTERSTATE HIGHWAY NO. 635 (variable width
Right-of-Way);

THENCE departing the westerly line of said LOT 9, BLOCK A and along the
southerly Right-of-Way line of said INTERSTATE HIGHWAY NO. 635 South 75 degrees
09 minutes 33 seconds East a distance of 169.60 feet to a 1/2 inch iron rod set
for corner in the westerly line of LOT 11, BLOCK A of said MacARTHUR CROSSING
ADDITION;

THENCE departing the southerly Right-of-Way line of said INTERSTATE HIGHWAY
NO. 635 and along the westerly line of said LOT 11, BLOCK A as follows;

     South 29 degrees 09 minutes 04 seconds West a distance of 126.69 feet to a
     "x" cut found for a point for corner

     South 00 degrees 21 minutes 10 seconds West a distance of 545.83 feet to a
     "x" cut set in concrete for corner said point being the most northeasterly
     corner of LOT 2, BLOCK A of said MacARTHUR CROSSING ADDITION;

THENCE departing the westerly line of said LOT 11, BLOCK A and along the
northerly line of said LOT 2, BLOCK A as follows;

     North 89 degrees 38 minutes 50 seconds West a distance of 126.82 feet to a
     "x" cut set in concrete;

     South 00 degrees 21 minutes 10 seconds West a distance of 9.00 feet to a
     point on a one story brick building;

     North 89 degrees 38 minutes 50 seconds West a distance of 202.85 feet to a
     "x" cut found in concrete;

     North 00 degrees 21 minutes 10 seconds East a distance of 7.96 feet to a
     "x" cut found in concrete;

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     North 89 degrees 38 minutes 50 seconds West a distance of 510.55 feet to a
     "x" cut found in concrete for corner in the easterly Right-of-Way line of
     MacARTHUR BOULEVARD (variable width Right-of-Way);

THENCE departing the northerly line of said LOT 2, BLOCK A and along the
easterly Right-of-Way line of said MacARTHUR BOULEVARD as follows;

     North 02 degrees 03 minutes 28 seconds East a distance of 37.32 feet to a
     "x" cut found in concrete;

     North 00 degrees 21 minutes 10 seconds East a distance of 18.98 feet to a
     "x" cut found in concrete for corner said point being the most
     southwesterly corner of LOT 3, BLOCK A of said MacARTHUR CROSSING ADDITION;

THENCE departing the easterly Right-of-Way line of said MacARTHUR BOULEVARD and
along the southerly line of said LOT 3, BLOCK A South 89 degrees 38 minutes 50
seconds East a distance of 245.94 feet to a "x" cut found for corner said point
being the most southeasterly corner of said LOT 3, BLOCK A;

THENCE departing the southerly line of said LOT 3, BLOCK A and along the
easterly line of said LOT 3, BLOCK A North 00 degrees 21 minutes 10 seconds East
a distance of 181.00 feet to a "x" cut set in concrete for corner said point
being the most northeasterly corner of said LOT 3, BLOCK A;

THENCE departing the easterly line of said LOT 3, BLOCK A and along the
northerly line of said LOT 3, BLOCK A North 89 degrees 38 minutes 50 seconds
West a distance of 250.00 feet to a "x" cut set in concrete for corner in the
easterly Right-of-Way line of said MacARTHUR BOULEVARD said point being the most
northwesterly corner of said LOT 3, BLOCK A;

THENCE departing the northerly line of said LOT 3, BLOCK A and along the
easterly Right-of-Way line of said MacARTHUR BOULEVARD North 00 degrees 21
minutes 10 seconds East a distance of 41.00 feet to a "x" cut set in concrete
for corner said point being the most southwesterly corner of LOT 4, BLOCK A of
said MacARTHUR CROSSING ADDITION;

THENCE departing the easterly Right-of-Way line of said MacARTHUR BOULEVARD and
along the southerly line of said LOT 4, BLOCK A South 89 degrees 38 minutes 50
seconds East a distance of 250.00 feet to a "x" Cut set in concrete for corner
said point being the most southeasterly corner of said LOT 4, BLOCK A;

THENCE departing the southerly line of said LOT 4, BLOCK A North 00 degrees 21
minutes 10 seconds East a distance of 229.89 feet to a "x" cut set in concrete
for corner said point being the most southwesterly corner of LOT 7, BLOCK A of
the said MacARTHUR CROSSING ADDITION;

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THENCE South 89 degrees 38 minutes 50 seconds East a distance of 490.00 feet to
a "x" cut found in concrete for corner said point being the most southeasterly
corner of LOT 8, BLOCK A of the said MacARTHUR CROSSING ADDITION;

THENCE along the easterly line of said LOT 8, BLOCK A North 00 degrees 21
minutes 10 seconds East a distance of 192.15 feet to the POINT OF BEGINNING;

CONTAINING within these metes and bounds 8.020 acres or 349,346 square feet of
land more or less.

TRACT 3:

BEING a tract of land situated in the R.W. FRIER SURVEY, Abstract No. 491, Deed
Records, Dallas County (DRDCT) and being all of Lot 2, Block C of MacARTHUR
CROSSING, an addition to the City of Irving as recorded by the Second Amended
Plat in Volume 95143, page 0891 and being more particularly described as
follows:

COMMENCING at the southerly corner of a corner clip at the intersection of the
southerly right-of-way line of LAS COLINAS BOULEVARD (variable right-of-way) and
the easterly right-of-way line of MacARTHUR BOULEVARD (variable right-of-way);

THENCE along the easterly right-of-way line of MacARTHUR BOULEVARD as follows:

     South 00 degrees 21 minutes 10 seconds West, a distance of 145.58 feet to a
     PK. nail in concrete found for the POINT OF BEGINNING;

THENCE departing the easterly right-of-way line of MacARTHUR BOULEVARD and along
the southerly and easterly line of Lot 1, Block C, MacARTHUR CROSSING as
follows:

     EAST, a distance of 159.00 feet to a 1/2 inch iron rod found for corner;

     North 45 degrees 01 minutes 03 seconds East, a distance of 114.52 feet to a
     "x" Cut found in concrete for corner;

     NORTH, a distance of 152.00 feet to a "x" cut found in concrete in the
     southerly right-of-way line of LAS COLINAS BOULEVARD (variable
     right-of-way);

THENCE along the southerly right-of-way line of LAS COLINAS BOULEVARD as
follows:

     South 89 degrees 38 minutes 50 seconds East, a distance of 268.09 feet to a
     "x" cut set in concrete for the beginning of a curve to the right having a
     radius of 795.00 feet, a chord bearing South 77 degrees 16 minutes 34
     seconds East and a chord distance of 340.65 feet;

     Along said curve to the right through a central angle of 24 degrees 44
     minutes 32 seconds, an arc length of 343.31 feet to a 1/2 inch iron rod
     with cap found for corner;

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THENCE departing the southerly right-of-way line of LAS COLINAS BOULEVARD and
along the westerly line of Lot 6, Block C, MacARTHUR CROSSING, South 28 degrees
32 minutes 58 seconds West, a distance of 419.75 feet to a 1/2 inch iron rod set
for corner;

THENCE along the northerly and westerly line of Lot 5, Block C, MacARTHUR
CROSSING as follows:

     North 89 degrees 58 minutes 42 seconds West, a distance of 397.56 feet to a
     1/2 inch iron rod with cap found for corner;

     South 00 degrees 01 minutes 18 seconds West, a distance of 188.40 feet to a
     1/2 inch iron rod found for corner;

THENCE along the northerly line of Lot 3, Block C, MacARTHUR CROSSING, North 89
degrees 58 minutes 42 seconds West, a distance of 250.00 feet to a 3/8 inch iron
rod found for corner in the easterly right-of-way line of MacARTHUR BOULEVARD;

THENCE along the easterly right-of-way line of MacARTHUR BOULEVARD as follows:

     North 00 degrees 01 minutes 18 seconds East, a distance of 203.99 feet to a
     1/2 inch iron rod set for corner;

     North 03 degrees 02 minutes 25 seconds East, a distance of 140.36 feet to a
     1/2 inch iron rod set for corner;

     North 00 degrees 21 minutes 10 seconds East, a distance of 56.45 feet to
     the POINT OF BEGINNING;

CONTAINING within these metes and bounds 7.424 acres or 323,374 square feet of
land, more or less.

TRACT 8:  (Beneficial Interest Estate)

Lot 3, Block A, of MacArthur Crossing, an Addition to the City of Irving, Dallas
County, Texas, according to the amended plat thereof recorded in Volume 95143,
Page 891, of the Map Records of Dallas County, Texas.

TRACT 9:  (Beneficial Interest Estate)

Lot 5, Block A, of MacArthur Crossing, an Addition to the City of Irving, Dallas
County, Texas, according to the amended plat thereof recorded in Volume 95143,
Page 891, of the Map Records of Dallas County, Texas.<Page>

                                                                   Exhibit 10.61

                             SECURED PROMISSORY NOTE
                                 LOAN NO. 753820

$33,630,000.00                                                  January 30, 2004

1.   FOR VALUE RECEIVED, INLAND WESTERN LARKSPUR, L.L.C., a Delaware limited
liability company, as "Borrower" ("BORROWER" to be construed as "Borrowers" if
the context so requires), hereby promises to pay to the order of PRINCIPAL LIFE
INSURANCE COMPANY, an Iowa corporation (as "LENDER"), 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, or at such other place as Lender
may designate, the principal sum of Thirty Three Million Six Hundred Thirty
Thousand and No/100 Dollars ($33,630,000.00) (the "LOAN AMOUNT") or so much
thereof as shall from time to time have been advanced, together with interest on
the unpaid balance of said sum from January 30, 2004 (the "CLOSING DATE"), at
the rate of four and 45/100 percent (4.45) per annum.

     A payment of interest from the Closing Date to and including January 31,
2004 shall be paid on the Closing Date calculated by multiplying the actual
number of days elapsed in the period for which interest is being calculated by a
daily rate based on the foregoing annual interest rate and a 360-day year.
Thereafter, interest shall be computed on the unpaid balance on the basis of a
360-day year composed of twelve 30-day months. Beginning on March 1, 2004,
interest shall be due and payable in installments of One Hundred Twenty Four
Thousand Seven Hundred Eleven and 25/100 Dollars ($124,711.25), with an
installment in a like amount due and payable on the same day of each month
thereafter, except that all remaining principal and interest to and including
the date of payment and other Indebtedness shall be due and payable on February
1, 2009 or such earlier date resulting from the acceleration of the Indebtedness
by Lender ("MATURITY DATE"). All principal and interest shall be paid in lawful
money of the United States of America by wire transfer of immediately available
funds to Lender at Wells Fargo Bank, Iowa, N.A., 7th and Walnut Streets, Des
Moines, Iowa 50304, for credit to Principal Life Insurance Company, Account No.
0000014752, RE: Loan No. 753820 with reference to Borrower. In the event
Borrower fails to make any monthly payment under this Note on or before the due
date thereof, Borrower agrees to make all subsequent payments by automated
clearing house transfer through such bank or financial institution as shall be
approved in writing by Lender, shall be made to an account designated by Lender,
and shall be initiated by Lender or shall be made in such other manner as Lender
may direct from time to time. Any other monthly deposits or payments Borrower is
required to make to Lender under the terms of the Loan Documents shall be made
by the same payment method and on the same date as the installments of interest
due under this Note.

2.   No privilege is reserved by Borrower to prepay any principal of this Note
prior to the Maturity Date, except on or after the date hereof, privilege is
reserved, after giving thirty (30) days' prior written notice to Lender, to
prepay in full, but not in part, all principal and interest to and including the
date on which payment is made, along with all sums, amounts, advances, or
charges due under any instrument or agreement by which this Note is secured,
upon the payment

                                        1
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of a "MAKE WHOLE PREMIUM." The Make Whole Premium shall be the greater of one
percent (1%) of the principal amount to be prepaid or a premium calculated as
provided in subparagraphs (a) through (c) below:

     (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 maturity as this Note.

     (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 this 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.

     (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.

If Borrower has otherwise fully complied with the preceding paragraphs, then,
during the last 90 days prior to the Maturity Date, provided no Event of Default
exists, no Make Whole Premium shall be payable.

3.   Borrower agrees that if Lender accelerates the whole or any part of the
principal sum evidenced hereby, after the occurrence of an Event of Default or
applies any proceeds pursuant to the provisions of the Loan Documents, Borrower
waives any right to prepay said principal sum in whole or in part without
premium and agrees to pay, as yield maintenance protection and not as a penalty,
the Make Whole Premium.

Notwithstanding the above, in the event any proceeds from a casualty or Taking
of the Premises are applied to reduce the principal balance hereof, such
reduction shall be made without a Make Whole Premium, provided no Event of
Default then exists under the Loan Documents.

Borrower by adding its initials to the end of this paragraph, (A) EXPRESSLY
waives any rights it may have under California Civil Code Section 2954.10 to
prepay this Note, in whole or in part, without penalty, upon acceleration of the
Maturity Date of this Note and (B) acknowledges and agrees that Borrower has no
right of prepayment of this Note, except as provided above; and that, if the
maturity of this Note is accelerated by Lender, Borrower specifically agrees to
pay as a prepayment premium, the applicable sum specified herein as the Make
Whole Premium,

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specifically including but not limited to the case where the holder of this Note
has accelerated the maturity of this note due to Borrower's default of any
provision contained in 2(f) of the Mortgage. By initialing this provision,
Borrower hereby declares that Lender's agreement to make the Loan evidenced by
this Note for the interest rate and for the term set forth in this Note
constitutes adequate consideration, given individual weight by Borrower, for
this waiver and agreement.

                       Initials:   DAP
                                ---------  ---------

4.   If any payment of principal, interest, Make Whole Premium, or other
Indebtedness is not made when due, damages will be incurred by Lender, including
additional expense in handling overdue payments, the amount of which is
difficult and impractical to ascertain. Borrower therefore agrees to pay, upon
demand, the sum of four cents ($.04) for each one dollar ($1.00) of each said
payment which becomes overdue ("LATE CHARGE") as a reasonable estimate of the
amount of said damages, subject, however, to the limitations contained in
paragraph 6 hereof.

Notwithstanding anything hereinabove to the contrary, the Late Charge assessed
on any amount due on the Maturity Date but not then paid, whether or not by
acceleration, shall not be four cents for each one dollar as described above,
but shall instead be a sum equal to the interest which would have accrued on the
principal balance then outstanding from the date the payment is made to the end
of the month in which the Maturity Date occurs. Such Late Charge shall be in
addition to interest otherwise accruing under this Note.

5.   If any Event of Default has occurred and is continuing under the Loan
Documents, the entire principal balance of the Loan, interest then accrued, and
Make Whole Premium, and all other Indebtedness whether or not otherwise then
due, shall at the option of Lender, become immediately due and payable without
demand or notice, and whether or not Lender has exercised said option, interest
shall accrue on the entire principal balance, interest then accrued, Make Whole
Premium and any other Indebtedness then due, at a rate equal to the Default Rate
until fully paid.

6.   Notwithstanding anything herein or in any of the other Loan Documents to
the contrary, no provision contained herein or therein which purports to
obligate Borrower to pay any amount of interest or any fees, costs or expenses
which are in excess of the maximum permitted by applicable law, shall be
effective to the extent it calls for the payment of any interest or other amount
in excess of such maximum. All agreements between Borrower and Lender, whether
now existing or hereafter arising and whether written or oral, are hereby
limited so that in no contingency, whether by reason of demand for payment or
acceleration of the maturity hereof or otherwise, shall the interest contracted
for, charged or received by Lender exceed the maximum amount permissible under
applicable law. If, from any circumstance whatsoever, interest would

                                        3
<Page>

otherwise be payable to Lender in excess of the maximum lawful amount, the
interest payable to Lender shall be reduced to the maximum amount permitted
under applicable law; and if from any circumstance Lender shall ever receive
anything of value deemed interest by applicable law in excess of the maximum
lawful amount, an amount equal to any excessive interest shall, at the option of
Lender, be refunded to Borrower or be applied to the reduction of the principal
hereof, without a Make Whole Premium and not to the payment of interest or, if
such excessive interest exceeds the unpaid balance of principal hereof such
excess shall be refunded to Borrower. This paragraph shall control all
agreements between Borrower and Lender.

7.   Borrower and any endorsers or guarantors waive presentment, protest and
demand, notice of protest, demand and dishonor and nonpayment, and agree the
Maturity Date of this Note or any installment may be extended without affecting
any liability hereunder, and further promise to pay all reasonable costs and
expenses, including but not limited to, reasonable attorney's fees incurred by
Lender in connection with any default or in any proceeding to interpret and/or
enforce any provision of the Loan Documents. No release of Borrower from
liability hereunder shall release any other maker, endorser or guarantor hereof.

8.   This Note is secured by the Loan Documents creating among other things
legal and valid encumbrances on and an assignment of all of Borrower's interest
in any Leases of the Premises located in the county of Marin, state of
California. Capitalized terms used herein and not otherwise defined shall have
those meanings given to them in the Loan Documents. In no event shall such
documents be construed inconsistently with the terms of this Note, and in the
event of any discrepancy between any such documents and this Note, the terms
hereof shall govern. The proceeds of this Note are to be used for business,
commercial, investment or other similar purposes, and no portion thereof will be
used for any personal, family or household use. This Note shall be governed by
and construed in accordance with the laws of the State where the Premises is
located, without regard to its conflict of law principles.

9.   Notwithstanding any provision to the contrary in this Note or the Loan
Documents and except as otherwise provided for below, the liability of Borrower
under the Loan Documents shall be limited to the interest of Borrower in the
Premises and the Rents. In the event of foreclosure of the liens evidenced by
the Loan Documents, no judgment for any deficiency upon the Indebtedness
evidenced by the Loan Documents shall be sought or obtained by Lender against
Borrower. Nothing herein shall in any manner limit or impair (i) the lien or
enforcement of the Loan Documents pursuant to the terms thereof or (ii) the
obligations of any indemnitor or guarantor, if any.

     Notwithstanding any provision hereinabove to the contrary, Borrower shall
be personally liable to Lender for:

     (a)  any loss or damage to Lender arising from (i) the sale or forfeiture
          of the Premises resulting from Borrower's failure to pay any of the
          taxes, assessments or charges

                                        4
<Page>

          specified in the Loan Documents or (ii) Borrower's failure to insure
          the Premises in compliance with the provisions of the Loan Documents;

     (b)  any event or circumstance for which Borrower indemnifies Lender under
          the Environmental Indemnity;

     (c)  nonpayment of taxes, assessments, insurance premiums and utilities for
          the Premises and any penalty or late charge associated with nonpayment
          thereof;

     (d)  material failure to manage, operate, and maintain the Premises in a
          commercially reasonable manner for similar property types in the
          surrounding geographic area;

     (e)  any sums expended by Lender in fulfilling the obligations of Borrower
          as lessor under any Lease of the Premises prior to a sale of the
          Premises pursuant to foreclosure or power of sale, a bona fide sale
          (permitted by the terms of paragraph 2(f) of the Mortgage (it being
          agreed that "Mortgage" as used herein shall be construed to mean
          "mortgage" or "deed of trust" or "trust deed" as the context so
          requires) or consented to in writing by Lender) to an unrelated third
          party or upon conveyance to Lender of the Premises by a deed
          acceptable to Lender in form and content (each of which shall be
          referred to as a "Sale" for purposes of this paragraph) or expended by
          Lender after a Sale of the Premises for obligations of Borrower which
          arose prior to a Sale of the Premises;

          Borrower's personal liability for items specified in (c), (d) and (e)
          above shall be limited to the amount of rents, issues, proceeds and
          profits from the Premises ("Rents and Profits") received by Borrower
          for the twenty-four (24) months preceding an Event of Default and
          thereafter; but less any such Rents and Profits applied to (A) payment
          of principal, interest and other charges when due under the Loan
          Documents, or (B) payment of expenses for the operation, maintenance,
          taxes, assessments, utility charges and insurance of the Premises
          including sufficient reserves for the same or replacements or renewals
          thereof ("Operation Expense(s)") provided that (x) Borrower has
          furnished Lender with evidence reasonably satisfactory to Lender of
          the Operation Expenses and payment thereof, and (y) any payments to
          parties related to Borrower shall be considered an Operation Expense
          only to the extent that the amount expended for the Operation Expense
          does not exceed the then current market rate for such Operation
          Expense.

     (f)  any rents or other income regardless of type or source of payment or
          other considerations in lieu thereof (including, but not limited to,
          common area maintenance charges, lease termination payments, refunds
          of any type, prepayment of rents, settlements of litigation, or
          settlements of past due rents) from the Premises which Borrower has
          received or will receive after an Event of Default under the Loan
          Documents which are not applied to (A) payment of

                                        5
<Page>

          principal, interest and other charges when due under the Loan
          Documents or (B) payment of Operation Expenses provided that (x)
          Borrower has furnished Lender with evidence reasonably satisfactory to
          Lender of the Operation Expenses and payment thereof, and (y) any
          payments to parties related to Borrower shall be considered an
          Operation Expense only to the extent that the amount expended for the
          Operation Expense does not exceed the then current market rate for
          such Operation Expense;

     (g)  any security deposits of tenants not otherwise applied in accordance
          with the terms of the Lease(s), together with any interest on such
          security deposits required by law or the leases, not turned over to
          Lender upon conveyance of the Premises to Lender pursuant to
          foreclosure or power of sale or by a deed acceptable to Lender in form
          and content;

     (h)  misapplication or misappropriation of tax reserve accounts, tenant
          improvement reserve accounts, security deposits, prepaid rents or
          other similar sums paid to or held by Borrower or any other entity or
          person in connection with the operation of the Premises;

     (i)  any insurance or condemnation proceeds or other similar funds or
          payments applied by Borrower in a manner other than as expressly
          provided in the Loan Documents; and

     (j)  any loss or damage to Lender arising from any fraud or willful
          misrepresentation 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 in any materials or information provided by or on
          behalf of Borrower, Interest Owner or guarantor, if any, in connection
          with the Loan.

          Notwithstanding anything contained in paragraphs 9(a)(i) and 9(c)
          hereinabove as it relates solely to taxes, assessments and insurance
          premiums, to the extent Lender is impounding for taxes, assessments
          and insurance premiums in accordance with the Loan Documents and
          Borrower has fully complied with all terms and conditions of the Loan
          Documents relating to impounding for the same, then Borrower shall not
          be personally liable for Lender's failure to apply any of said impound
          amounts held by Lender in accordance with the Loan Documents.

          Notwithstanding anything to the contrary in the Loan Documents, the
          limitation on liability contained in the first paragraph of this
          paragraph 9 SHALL BECOME NULL AND VOID and shall be of no further
          force and effect in the event of any breach or violation of paragraph
          2(f) (due on sale or encumbrance) of the Mortgage, other than (i) the
          filing of a nonmaterial mechanic's lien affecting the Premises or a
          mechanic's lien affecting the Premises for which Borrower has

                                        6
<Page>

          complied with the provisions of paragraph 1(e) of the Mortgage, or
          (ii) the granting of any utility or other nonmaterial easement or
          servitude burdening the Premises, or (iii) any transfer or encumbrance
          of a nonmaterial economic interest in the Premises not otherwise set
          forth in (i) or (ii).

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

11.  This Note may not be changed or terminated orally, but only by an agreement
in writing and signed by the party against whom enforcement of any waiver,
change, modification or discharge is sought. All of the rights, privileges and
obligations hereunder 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.

12.  If any provision of this Note shall, for any reason, be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other
provision hereof, but this Note shall be construed as if such invalid or
unenforceable provision had never been contained herein.

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

                      REMAINDER OF PAGE INTENTIONALLY BLANK

                            (Signatures on next page)

                                        7
<Page>

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

                                             INLAND WESTERN LARKSPUR, L.L.C., a
                                             Delaware limited liability company

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

                                                 By:  /s/  Debra A Palmer
                                                      ----------------------
                                                      Name:  Debra A Palmer
                                                            ----------------
                                                      Title: Asst Secretary
                                                            ----------------

                                        8

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