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                                                                     EXHIBIT 4.3

                     INLAND AMERICAN REAL ESTATE TRUST, INC.

                     INDEPENDENT DIRECTOR STOCK OPTION PLAN

                                    ARTICLE I
                                     GENERAL

     1.1    PURPOSE. Inland American Real Estate Trust, Inc., a Maryland
corporation (the "COMPANY"), hereby adopts this Independent Director Stock
Option Plan (the "PLAN"). The purpose of the Plan is to foster and promote the
long-term financial success of the Company by attracting and retaining
outstanding non-employee directors by enabling them to participate in the
Company's growth through the granting of Options (as defined in SECTION 2.1(a)
hereof) that entitle them to purchase shares of the Company's common stock, par
value $0.001 per share ("SHARES").

     1.2    PARTICIPATION. Only directors of the Company who, at the time an
Option is granted, are "Non-Employee Directors" as such term is defined in Rule
16b-3 promulgated under the Securities Exchange Act of 1934, as amended ("RULE
16B-3"), or any similar rule which may subsequently be in effect (the
"INDEPENDENT DIRECTORS"), are eligible to receive Options under the Plan.

     1.3    SHARES SUBJECT TO THE PLAN. Shares to be issued upon exercise of
Options granted under the Plan shall be from authorized but unissued Shares of
the Company. A maximum of 75,000 Shares (the "PLAN MAXIMUM") may be issued for
all purposes under the Plan (subject to adjustment pursuant to SECTION 3.2
hereof), and the Company hereby reserves 75,000 authorized but unissued Shares
for issuance upon exercise of Options granted under the Plan. Any Shares
reserved for issuance under Options that for any reason are canceled or
terminated without having been exercised shall not be counted in determining
whether the Plan Maximum has been reached. Options for fractional shares shall
not be granted.

     1.4    GENDER AND NUMBER. Except when otherwise indicated by the context,
words in the masculine gender when used in the Plan shall include the feminine
gender, the singular shall include the plural, and the plural shall include the
singular.

                                   ARTICLE II
                               STOCK OPTION AWARDS

     2.1    AWARD OF STOCK OPTIONS.

            (a)    Effective on the later of (i) the date on which an
     Independent Director becomes a member of the Board of Directors of the
     Company (the "BOARD OF DIRECTORS"), (ii) the date this Plan is adopted by
     the Company or (iii) the date on which at least 1,000,000 Shares are issued
     and outstanding (subject to adjustment pursuant to SECTION 3.2 hereof),
     each Independent Director who satisfies the conditions set forth in

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     SECTION 1.2 hereof will automatically be awarded a stock option (an
     "INITIAL OPTION") under the Plan to purchase 3,000 Shares (subject to
     adjustment pursuant to SECTION 3.2 hereof). Effective on the date of each
     Annual Meeting of Stockholders of the Company (an "ANNUAL MEETING") after
     the award of an Initial Option, each Independent Director then in office
     who satisfies the conditions set forth in SECTION 1.2 hereof will
     automatically be awarded a stock option (a "SUBSEQUENT OPTION" or the
     "SUBSEQUENT OPTIONS", collectively with the "INITIAL OPTIONS" referred to
     herein as an "OPTION" or "OPTIONS") to purchase 500 Shares (subject to
     adjustment pursuant to SECTION 3.2 hereof). The Options are not intended to
     qualify as "incentive stock options" as defined in Section 422 of the
     Internal Revenue Code of 1986, as amended (the "CODE").

            (b)    Notwithstanding any other provision of this Plan, no Options
     shall be issued pursuant to SECTION 2.1(a) hereof to the extent that the
     issuance of such Options would: (i) enable the Independent Directors as a
     group to hold more than ten percent (10.0%) of the issued and outstanding
     Shares if such Options were exercised; (ii) result in the Company being
     "closely held" within the meaning of Code Section 856(h); (iii) cause the
     Company to own, directly or constructively, ten percent (10.0%) or more of
     the ownership interests in a tenant of the property of the Company (or of
     the property of one or more partnerships in which the Company is a
     partner), within the meaning of Code Section 856(d)(2)(B); or (iv) cause,
     in the opinion of counsel to the Company, the Company to fail to qualify
     (or create, in the opinion of counsel to the Company, a material risk that
     the Company would no longer qualify) as a real estate investment trust
     within the meaning of Code Section 856. To the extent that the issuance of
     Options pursuant to SECTION 2.1(a) hereof would violate any of the
     foregoing limitations, the number of Shares that may be purchased under the
     Options to be issued to each of the Independent Directors shall be reduced
     PRO RATA. To the extent that the number of Shares that may be purchased
     under Options issued to an Independent Director is reduced in any year as a
     result of the application of the foregoing limitations, Options to purchase
     such Shares shall be issued to the Independent Director in any subsequent
     year in which issuance of such Options, after taking into account the
     Options to be issued to the Independent Directors in such subsequent year
     under SECTION 2.1(a) hereof, would not violate the limitations imposed by
     this SECTION 2.1(b). To the extent that the issuance of an Option is
     delayed until a subsequent year under this SECTION 2.1, the Option shall be
     treated for all purposes under this Plan as having been issued in such
     subsequent year.

     2.2    STOCK OPTION CERTIFICATES. The award of an Option shall be evidenced
by a certificate executed by an officer of the Company in substantially the form
attached hereto as EXHIBIT A.

     2.3    EXERCISE PRICE. The purchase price of a Share (the "EXERCISE PRICE")
under each Initial Option granted shall be the Fair Market Value (as defined in
SECTION 3.5 hereof) of a Share on the date of the grant. The Exercise Price
under each Subsequent Option granted on the date of any Annual Meeting shall be
the Fair Market Value of a Share on the last business day immediately preceding
the date of the Annual Meeting.

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     2.4    EXERCISE AND TERM OF OPTIONS.

            (a)    Options may be exercised by the delivery of written notice of
     exercise and payment of the aggregate Exercise Price for the Shares to be
     purchased to the Secretary of the Company. The Exercise Price may be paid
     in cash, by check, bank draft or money order. No Shares shall be issued in
     connection with the exercise of an Option until full payment of the
     aggregate Exercise Price for such Shares has been made to the Company.
     Except to the extent expressly authorized by the Board of Directors, the
     Company shall not issue share certificates representing the purchased
     Shares. All Shares issued upon exercise of an Option shall be recorded on
     the books and records of the Company. As soon as practicable after receipt
     of each notice and full payment of the aggregate Exercise Price pursuant to
     this SECTION 2.4(a), the Company shall issue the purchased Shares to the
     Independent Director along with a statement containing information
     substantially similar to EXHIBIT B hereto and any other information
     required pursuant to applicable law. All Shares issued upon exercise of an
     Option shall be subject to the restrictions contained in the Company's
     Articles of Incorporation and Bylaws. An Independent Director shall have
     none of the rights of a stockholder in the Company until the Shares
     underlying the Option(s) exercised are issued and the foregoing statement
     delivered to the Independent Director.

            (b)    To the extent expressly authorized by the Board of Directors,
     each certificate for Shares issued upon exercise of an Option shall bear a
     legend containing information substantially similar to EXHIBIT B. Any
     certificate for Shares issued at any time in exchange or substitution for
     any other certificate bearing such legend shall also bear a legend
     containing information substantially similar to EXHIBIT B. Each certificate
     for Shares issued upon exercise of an Option shall also bear any legends
     required by the Company's Articles of Incorporation or Bylaws applicable
     law, and the transferability of the certificate and the Shares represented
     thereby shall be subject to the restrictions contained in the Company's
     Articles of Incorporation and Bylaws.

            (c)    An Independent Director's Initial Option shall (subject to
     SECTION 3.1 hereof) become exercisable as follows: (i) 1,000 shares on the
     date of grant; (ii) an additional 1,000 shares on the first anniversary of
     the date of grant; and (iii) an additional 1,000 shares on the second
     anniversary of the date of grant; and shall continue to be exercisable
     until the first to occur of: (i) the tenth anniversary of the date of
     grant; (ii) the removal for cause of the Independent Director as an
     Independent Director; or (iii) three months following the date the
     Independent Director ceases to be an Independent Director for any other
     reason except death or disability. Each of an Independent Director's
     Subsequent Options shall (subject to SECTION 3.1 hereof) become fully
     exercisable on the second anniversary of the date on which the Subsequent
     Option(s) was granted and shall continue to be exercisable until the first
     to occur of: (i) the tenth anniversary of the date of grant; (ii) the
     removal for cause of the Independent Director as an Independent Director;
     or (iii) three months following the date the Independent Director ceases to
     be an Independent Director for any other reason except death or disability.
     Notwithstanding the foregoing, Options granted under this Plan shall
     continue to be exercisable in the case of death or disability for a period
     of one year after death or the disabling event; provided that the death or
     disabling event occurs while the person is an Independent Director and

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     prior to his or her removal for cause, resignation or ceasing to be an
     Independent Director for any other reason and the Option is otherwise
     exercisable on the date of the death or disabling event; provided, however,
     if the Option is exercised within the first six months after it becomes
     exercisable, any Shares issued pursuant to such exercise may not be sold
     until the six month anniversary of the date of the grant of the Option. An
     Independent Director is removed "for cause" for gross negligence or willful
     misconduct in the execution of his duties, or for conviction of, or entry
     of a plea of guilty or nolo contendere to, any felony or any act of fraud,
     embezzlement, misappropriation, or a crime involving moral turpitude.

            (d)    Notwithstanding any other terms or provisions herein to the
     contrary, no Option may be exercised if, in the opinion of the Company's
     counsel, such exercise would jeopardize the Company's status as a real
     estate investment trust under the Code.

                                   ARTICLE III
                            MISCELLANEOUS PROVISIONS

     3.1    NONTRANSFERABILITY; BENEFICIARIES. No Option awarded under the Plan
shall be transferable by the Independent Director otherwise than by will or, if
the Independent Director dies intestate, by the laws of descent and
distribution. All Options exercised during the Independent Director's lifetime
shall be exercised only by the Independent Director or his legal representative.
Any transfer contrary to this SECTION 3.1 will nullify the Option.
Notwithstanding any other provisions of this Plan, Options granted under this
Plan shall continue to be exercisable in the case of death or disability for a
period of one year after death or the disabling event in accordance with the
terms of SECTION 2.4(c) hereof. Each Independent Director may name, from time to
time, any beneficiary or beneficiaries (who may be named contingently or
successively) who may exercise his or her Options. Each designation will revoke
all prior designations by the Independent Director, must be in writing and will
be effective only when filed with the Secretary of the Company during the
Independent Director's lifetime.

     3.2    ADJUSTMENT UPON CERTAIN CHANGES.

            (a)    If the outstanding Shares are (i) increased or decreased or
     (ii) changed into, or exchanged for, a different number or kind of shares
     or securities of the Company, through a reorganization or merger in which
     the Company is the surviving entity, or through a combination,
     recapitalization, reclassification, stock split, stock dividend, stock
     consolidation or otherwise, an appropriate adjustment shall be made in the
     number and kind of Shares that may be issued pursuant to an Option and in
     the minimum number of Shares that must be issued and outstanding prior to
     the issuance of the Initial Options pursuant to SECTION 2.1(a)(iii) hereof.
     A corresponding adjustment to the consideration payable with respect to all
     Options granted prior to any such change shall also be made. Any such
     adjustment, however, shall be made without change in the total payment, if
     any, applicable to the portion of the Option not exercised but with a
     corresponding adjustment in the Exercise Price for each Share.

            (b)    Upon the dissolution or liquidation of the Company, or upon a
     reorganization, merger or consolidation of the Company with one or more
     corporations as

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     a result of which the Company is not the surviving corporation, or upon
     sale of all or substantially all of the Company's assets, the Plan shall
     terminate, and any outstanding Options shall terminate and be forfeited;
     provided, however, holders of Options may exercise any Options that are
     otherwise exercisable immediately prior to the dissolution, liquidation,
     consolidation or merger. Notwithstanding the foregoing, the Board of
     Directors may provide in writing in connection with, or in contemplation
     of, any such transaction for any or all of the following alternatives
     (separately or in combinations): (i) for the assumption by the successor
     corporation of the Options theretofore granted or the substitution by such
     corporation for such Options of awards covering the stock of the successor
     corporation, or a parent or subsidiary thereof, with appropriate
     adjustments as to the number and kind of shares and prices; (ii) for the
     continuance of the Plan by such successor corporation in which event the
     Plan and the Options shall continue in the manner and under the terms so
     provided; or (iii) for the payment in cash or Shares in lieu of and in
     complete satisfaction of such Options.

     3.3    AMENDMENT, SUSPENSION AND TERMINATION OF PLAN. The Board of
Directors may suspend or terminate the Plan or any portion thereof at any time
and may amend it from time to time in such respects as the Board of Directors
may deem necessary, appropriate or advisable in order that any Options
thereunder shall conform to or otherwise reflect any change in applicable laws
or regulations, or to permit the Company or the Independent Directors to enjoy
the benefits of any change in applicable laws or regulations, or in any other
respect the Board of Directors may deem to be in the best interests of the
Company; provided, however, that no such amendment shall, without stockholder
approval to the extent required by law, or any agreement or the rules of any
national securities exchange upon which the Shares may be listed or of any
inter-dealer quotation system on which Shares may be traded: (a) except as
provided in SECTION 3.2 hereof, materially increase the number of Shares that
may be issued under the Plan; (b) materially modify the requirements as to
eligibility for participation in the Plan; (c) materially increase the benefits
accruing to Independent Directors under the Plan; or (d) extend the termination
date of the Plan. No such amendment, suspension or termination shall: (x) impair
the rights of Independent Directors under any outstanding Option without the
consent of the Independent Directors affected thereby; or (y) make any change
that would disqualify the Plan, or any other plan of the Company intended to be
so qualified, from the exemption provided by Rule 16b-3.

     3.4    TAX WITHHOLDING.

            (a)    The Company shall have the power to withhold, or require an
     Independent Director to remit to the Company, an amount sufficient to
     satisfy any withholding or other tax due from the Company with respect to
     any amount payable or Shares issuable under the Plan, and the Company may
     defer such payment or issuance unless indemnified to its satisfaction.

            (b)    Subject to the consent of the Board of Directors, due to the
     exercise of an Option, an Independent Director may make an irrevocable
     election (an "ELECTION") to: (a) have Shares otherwise issuable hereunder
     withheld; (b) tender back to the Company Shares received; or (c) deliver
     back to the Company previously acquired Shares having a Fair Market Value
     sufficient to satisfy all or part of the Independent Director's estimated

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     tax obligations associated with the transaction. Such Election must be made
     by an Independent Director prior to the date on which the relevant tax
     obligation arises. The Board of Directors may disapprove of any Election,
     may suspend or terminate the right to make Elections, or may provide with
     respect to any Option under this Plan that the right to make Elections
     shall not apply to such Option.

     3.5    DEFINITION OF FAIR MARKET VALUE. As used in this Plan, "FAIR MARKET
VALUE" means: (i) $8.95 per Share at all times prior to time that the Shares
become listed for trading on a national securities exchange or included for
quotation on an inter-dealer quotation system (a "liquidity event"); and (ii)
once a liquidity event occurs, one hundred percent (100.0%) of the average daily
open and close sales price per Share, as reported by the national securities
exchange or inter-dealer quotation system, whichever is applicable, on the date
the Exercise Price is determined.

     3.6    PLAN NOT EXCLUSIVE.  The adoption of the Plan shall not preclude
the adoption by appropriate means of any other stock option or other incentive
plan for Independent Directors or other directors of the Company.

     3.7    LISTING, REGISTRATION AND LEGAL COMPLIANCE.

            (a)    Each Option shall be subject to the requirement that if at
     any time counsel to the Company shall determine that the listing,
     registration or qualification thereof or of any Shares or other property
     subject thereto upon any national securities exchange or inter-dealer
     quotation system, or under any foreign, federal or state securities or
     other law or regulation, or the consent or approval of any governmental
     body or the taking of any other action to comply with or otherwise, with
     respect to any such law or regulation, is necessary, appropriate or
     advisable as a condition to or in connection with the award of such Option
     or the issue, delivery or purchase of Shares or other property thereunder,
     no such Option may be exercised or paid in Shares or other property unless
     such listing, registration, qualification, consent, approval or other
     action shall have been effected or obtained free of any conditions not
     acceptable to the Company, and the holder of the award will supply the
     Company with such certificates, representations and information as the
     Company shall request and shall otherwise cooperate with the Company in
     effecting or obtaining such listing, registration, qualification, consent,
     approval or other action.

            (b)    The Company may at any time impose any limitations upon the
     exercise, delivery or payment of any Option which, in the opinion of the
     Board of Directors, are necessary, appropriate or advisable in order to
     cause the Plan or any other plan of the Company to comply with Rule 16b-3.
     If the Company, as part of an offering of securities or otherwise, finds it
     desirable because of foreign, federal or state legal or regulatory
     requirements to reduce the period during which Options may be exercised,
     the Board of Directors may, without the holders' consent, so reduce such
     period on not less than fifteen (15) days written notice to the holders
     thereof.

     3.8    RIGHTS OF INDEPENDENT DIRECTORS.  Nothing in the Plan shall
confer upon any Independent Director any right to serve as an Independent
Director for any period of time or to continue serving at his present or any
other rate of compensation.

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     3.9    NO OBLIGATION TO EXERCISE OPTION.  The granting of an Option
shall impose no obligation upon the Independent Director to exercise such
Option.

     3.10   REQUIREMENTS OF LAW; GOVERNING LAW. The granting of Options under
this Plan shall be subject to all applicable laws, rules, and regulations, and
to such approvals by any governmental agencies or any national securities
exchange or inter-dealer quotation system as may be required. The Plan, and all
agreements hereunder, shall be construed in accordance with and governed by the
internal laws of the State of Illinois without giving effect to its conflicts of
law principles. The provisions of this Plan shall be interpreted so as to comply
with the conditions or requirements of Rule 16b-3, unless a contrary
interpretation of any such provision is otherwise required by applicable law.

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                                    EXHIBIT A
                           FORM OF OPTION CERTIFICATE

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, HYPOTHECATED OR OTHERWISE DISTRIBUTED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES
LAWS.

                     INLAND AMERICAN REAL ESTATE TRUST, INC.
                     INDEPENDENT DIRECTOR STOCK OPTION PLAN
                               OPTION CERTIFICATE

                               CERTIFICATE NO. ___

     THIS OPTION CERTIFICATE (this "CERTIFICATE") is made and entered into as of
the ______ day of ________________, 20__ (the "GRANT DATE"), by and between
INLAND AMERICAN REAL ESTATE TRUST, INC., a Maryland corporation (the "COMPANY"),
and ___________________________ (the "OPTIONEE") under and pursuant to the
Inland American Real Estate Trust, Inc. Independent Director Stock Option Plan
(the "PLAN").

     Except where the context otherwise requires, all capitalized terms that are
not defined in this Certificate shall have the meanings set forth in the Plan.

     The parties hereto agree as follows:

     1.     GRANT OF OPTION. In consideration of the services rendered and to be
rendered to the Company by the Optionee as an Independent Director of the
Company, and upon the determination by the Board of Directors of the Company
that the Optionee satisfies the conditions set forth in SECTION 1.2 of the Plan,
the Company hereby grants to the Optionee an Option (the "OPTION") to purchase a
total of up to ______________ (____________) shares of the Company's common
stock, par value $0.001 per share (each share of such common stock, a "SHARE"
and collectively, the "SHARES"). The purchase price for each Share (the
"EXERCISE PRICE") granted by this Option shall be $_______ per Share, upon and
subject to the terms and conditions set forth in this Certificate and the Plan.
Shares that may be purchased upon exercise of this Option are hereafter referred
to as "Option Shares."

     2.     ACKNOWLEDGMENT BY OPTIONEE.  The Optionee hereby acknowledges:

            (a)    that he or she has had an opportunity to review a copy of the
     Plan;

            (b)    that any questions pertaining to the Plan, to this Option and
     to the Option Shares have been answered by the Company to his or her
     satisfaction;

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            (c)    that he or she understands that the Plan is incorporated in
     this Certificate by reference and is made a part of this Certificate as if
     fully set forth in this Certificate; and

            (d)    that the Plan shall control in the event that there is any
     conflict between the Plan and this Certificate, and also with respect to
     any matter not addressed in this Certificate.

     3.     TIME OF EXERCISE.

            (a)    [USE THE FOLLOWING SENTENCE FOR THE INITIAL OPTION GRANT ONLY
     - IF OTHERWISE, DELETE.] Subject to the provisions of this SECTION 3 and
     the restrictions imposed in the Plan, this Option may be exercised in
     accordance with the provisions of SECTION 4 below, in whole or in part, as
     follows: (i) 1,000 Option Shares on or after the Grant Date ([INSERT
     DATE]); (ii) an additional 1,000 Option Shares on or after the first
     anniversary of the Grant Date ([INSERT DATE]); and (iii) an additional
     1,000 Option Shares on or after the second anniversary of the Grant Date
     ([INSERT DATE]). [USE THE FOLLOWING SENTENCE FOR SUBSEQUENT OPTION GRANTS
     ONLY - IF OTHERWISE, DELETE.] Subject to the provisions of this SECTION 3
     and the restrictions imposed in the Plan, this Option may be exercised in
     accordance with the provisions of SECTION 4 below, in whole or in part, on
     or after the second anniversary of the Grant Date ([INSERT DATE]). [THE
     FOLLOWING SENTENCES SHOULD NOT BE DELETED IN EITHER CASE.] Notwithstanding
     the foregoing sentence, except as otherwise provided in paragraph (b) below
     of this SECTION 3, this Option may not be exercised after the earliest to
     occur of the following dates: (i) the date that is ten (10) years from the
     Grant Date ([INSERT DATE]); (ii) the removal for cause of the Optionee as
     an Independent Director; or (iii) three (3) months following the date that
     the Optionee ceases to be an Independent Director of the Company for any
     reason except death or disability. For purposes of this Option, the term
     "disability" (or any similar term) shall mean any bodily injury, disease,
     illness, or emotional or nervous disorder that prevents the Optionee from
     performing all of his or her material duties as an Independent Director of
     the Company for a period of at least thirty (30) consecutive days.

            (b)    Subject to the provisions of this SECTION 3 and the
     restrictions imposed in the Plan, in the event that the Optionee becomes
     disabled or dies while serving as an Independent Director of the Company,
     all outstanding Options as to which the Optionee's rights have become
     vested but which have not yet been exercised may be exercised in accordance
     with the provisions of SECTION 4 below by the Optionee (or his or her legal
     representative or designated beneficiary, as the case may be) for a period
     of one (1) year following the date of the disabling event or the Optionee's
     death; provided, however, that if this Option is exercised within the first
     six (6) months after it becomes exercisable, any Shares issued pursuant to
     such exercise may not be sold until the six-month anniversary of the Grant
     Date ([INSERT DATE]).

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     4.     MANNER OF EXERCISE.

            (a)    This Option may be exercised during the Optionee's lifetime
     by the Optionee or, in the case of the Optionee's disability, the
     Optionee's legal representative. Each Optionee may name, from time to time,
     any beneficiary or beneficiaries (who may be named contingently or
     successively) who may exercise this Option following the Optionee's death
     (the "OPTIONEE'S BENEFICIARIES"); provided, that in no event shall the
     Optionee's beneficiaries be able to exercise this Option at any time prior
     to the Optionee's death unless the beneficiary also is the Optionee's legal
     representative. Each designation will revoke all prior designations by the
     Optionee, must be in writing to be valid and will be effective only when
     filed with the Secretary of the Company during the Optionee's lifetime. The
     Optionee also may revoke a designation without designating a new
     beneficiary. To be valid, the revocation must be in writing and will be
     effective only when filed with the Secretary of the Company during the
     Optionee's lifetime.

            (b)    This Option may be exercised only by delivery of a written
     notice of exercise to the Company at its principal executive offices at
     2901 Butterfield Road, Oak Brook, Illinois 60523, Attn: Secretary. In the
     event that the Company moves its principal executive offices, it shall
     notify the Optionee in writing of the new address and this Option will
     thereafter be exercisable only by the delivery of written notice of
     exercise to the Company at its new principal executive offices. Each notice
     of exercise shall state the number of Option Shares being exercised and
     shall be signed by either the Optionee or, in the event that this Option is
     being exercised by the Optionee's legal representative or the Optionee's
     beneficiaries, by the Optionee's legal representative or the Optionee's
     beneficiaries, as applicable. In the case of exercise by the Optionee's
     legal representative, the notice shall be accompanied by written evidence
     reasonably satisfactory to the Company of his or her authority to act on
     behalf of the Optionee. In the case of exercise by the Optionee's
     beneficiaries, the notice shall be accompanied by a copy of the Optionee's
     death certificate. Each notice also must be accompanied by (x) the original
     executed copy of this Certificate, (y) the aggregate Exercise Price for the
     Option Shares being purchased and (z) such other documents or instruments
     as the Company may require to comply with the then current federal and
     state income tax and securities laws.

            (c)    The Exercise Price may be paid in cash, by check, bank draft
     or money order. No Option Shares shall be issued in connection with an
     exercise of this Option until full payment of the aggregate Exercise
     Price for such Option Shares has been made to the Company.

            (d)    In the event that this Option is exercised for less than all
     of the Option Shares covered by this Certificate, and subject to the terms
     and conditions of the Plan, the Company shall deliver an executed copy of a
     new option certificate to the Optionee (or the legal representative of the
     Optionee or the Optionee's beneficiaries, if applicable) within sixty (60)
     days of exercise, for the number of remaining Option Shares covered by this
     Certificate.

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     5.     DELIVERY OF CERTIFICATES.

            (a)    Except to the extent expressly authorized by the Board of
     Directors, the Company shall not issue share certificates representing the
     purchased Shares. All Shares issued upon exercise of an Option shall be
     recorded on the books and records of the Company. As soon as practicable
     after receipt of each notice and full payment of the aggregate Exercise
     Price pursuant to SECTION 4 of this Certificate, the Company shall issue
     the purchased Shares to the Optionee along with a statement containing
     information substantially similar to EXHIBIT B to the Plan and any other
     information required pursuant to applicable law. All Shares issued upon
     exercise of an Option shall be subject to the restrictions contained in the
     Company's Articles of Incorporation and Bylaws. An Optionee shall have none
     of the rights of a stockholder in the Company until the Shares underlying
     the Option(s) exercised are issued and the foregoing statement delivered to
     the Optionee.

            (b)    To the extent expressly authorized by the Board of Directors,
     each certificate for Shares issued upon exercise of an Option shall bear a
     legend containing information substantially similar to EXHIBIT B to the
     Plan. Any certificate for Shares issued at any time in exchange or
     substitution for any other certificate bearing such legend shall also bear
     a legend containing information substantially similar to EXHIBIT B to the
     Plan. Each certificate for Shares issued upon exercise of an Option shall
     also bear any legends required by the Company's Articles of Incorporation
     or Bylaws or applicable law, and the transferability of the certificate and
     the Shares represented thereby shall be subject to the restrictions
     contained in the Company's Articles of Incorporation and Bylaws.

     6.     EFFECT OF CERTAIN CHANGES. In accordance with SECTION 3.2 of the
Plan, if the number of outstanding shares of Common Stock shall be changed by
reason of a reorganization or merger in which the Company is the surviving
entity, or through a combination, recapitalization, reclassification, stock
split, stock dividend, stock consolidation or otherwise, the number of Option
Shares which are granted, the number of Option Shares which can be purchased on
a particular date and the Exercise Price per Option Share shall be appropriately
adjusted, as determined by the Company, to give proper effect to these changes.
All adjustments made by the Company in good faith pursuant to this SECTION 6
shall be final, conclusive and binding on the Optionee.

     7.     OPTIONS ARE NON-TRANSFERABLE. This Option may not be assigned,
transferred, pledged or hypothecated in any way whether by operation of law or
otherwise (except by will, or if the Director dies intestate, by the laws of
descent and distribution).

     8.     NO GUARANTEE OF DIRECTORSHIP. Nothing in this Certificate shall be
deemed or construed to confer upon the Optionee any right to serve as a Director
for any period of time or to continue serving at his or her present or any other
rate of compensation.

     9.     LIMITATION ON LIABILITY. In the event that the Optionee shall have
designated a beneficiary or beneficiaries in accordance with SECTION 4 of this
Certificate and has not revoked such designation in accordance with SECTION 4 of
this Certificate, the Company shall

                                       A-4
<Page>

be absolved of all further liability to the Optionee, the Optionee's estate, the
Optionee's spouse and the Optionee's heirs, successors and assigns to the extent
that the Company issues Option Shares as directed by the beneficiary or
beneficiaries so designated upon exercise of this Option following the death of
the Optionee in accordance with the requirements of SECTION 4 of this
Certificate. In addition, the Company shall be absolved of all further liability
to the Optionee, the Optionee's estate, the Optionee's spouse and the Optionee's
heirs, successors and assigns to the extent that the Company issues Option
Shares as directed by the Optionee's legal representative upon exercise of this
Option following the disability of the Optionee in accordance with the
requirements of SECTION 4 of this Certificate.

     10.    TAX WITHHOLDING. Subject to SECTION 3.4 of the Plan, the Company
shall have the power to withhold, or require the Optionee to remit to the
Company, an amount sufficient to satisfy any withholding or other tax due from
the Company with respect to any amount payable or the Option Shares issuable
under the Plan, and the Company may defer payment or issuance unless indemnified
to its satisfaction by the Optionee for such amounts.

     11.    MISCELLANEOUS.

            (a)    This Option may not be exercised with respect to a fraction
     of any Option Share.

            (b)    Except as provided in SECTION 2(c) and SECTION 2(d) of this
     Certificate, this Certificate (i) constitutes the entire agreement between
     the Company and the Optionee regarding the subject matter of this Option
     and (ii) supersedes and replaces all correspondence, understandings and
     communications between the parties hereto with regard to this Option,
     which, if claimed or believed by any person to exist, shall be disregarded
     and shall not be relied upon for any purpose. No modification or amendment
     of any of the terms of this Certificate shall be valid if not made in
     writing and no such writing shall be binding on the Company if not signed
     by its Chairman, President or one of its Vice Presidents and attested by
     its Secretary or an Assistant Secretary.

            (c)    This Certificate shall be governed by and construed in
     accordance with the internal laws of the State of Illinois without giving
     effect to its conflicts of law principles, except to the extent preempted
     by federal law.

            (d)    This Certificate shall be binding upon the successors and
     assigns of the Optionee and the Company.

            (e)    If any provision of this Certificate, or the application of
     such provision to any person or circumstance, shall be held invalid, the
     remainder of this Certificate, or the application of such provisions to
     persons or circumstances other than those to which it is held invalid,
     shall not be affected thereby.

                [THE REMAINDER OF THIS PAGE INTENTIONALLY BLANK]

                                       A-5
<Page>

     IN WITNESS WHEREOF, the Company has caused this Certificate to be executed
by its duly authorized corporate officers, and the Optionee has duly executed
this Certificate, all as of the date and year first above written.

                                        INLAND AMERICAN REAL ESTATE TRUST, INC.

                                        By:    ---------------------------------

                                        Name:  ---------------------------------

                                        Its:   ---------------------------------

                                        ATTEST:

                                        -------------------------, Secretary

ACKNOWLEDGED AND AGREED:

OPTIONEE

Signature: -------------------------------------

Name: ------------------------------------------

<Page>

                                    EXHIBIT B
                 STATEMENT TO BE ISSUED UPON EXERCISE OF OPTIONS

     The Shares are subject to restrictions on Beneficial Ownership and
Constructive Ownership and Transfer for the purpose of the Company's maintenance
of its status as a Real Estate Investment Trust ("REIT") under the Internal
Revenue Code of 1986, as amended (the "CODE"). Subject to certain further
restrictions and except as expressly provided in the Company's Articles of
Incorporation: (i) no Person may Beneficially Own or Constructively Own shares
of the Company's Common Stock in excess of 9.8% (in value or number of shares)
of the outstanding shares of Common Stock of the Company unless such Person is
an Excepted Holder (in which case the Excepted Holder Limit shall be
applicable); (ii) no Person may Beneficially Own or Constructively Own shares of
Equity Stock of the Company in excess of 9.8% of the value of the total
outstanding shares of Equity Stock of the Company, unless such Person is an
Excepted Holder (in which case the Excepted Holder Limit shall be applicable);
(iii) no Person may Beneficially Own or Constructively Own Equity Stock that
would result in the Company being "closely held" under Section 856(h) of the
Code or otherwise cause the Company to fail to qualify as a REIT; and (iv) no
Person may Transfer shares of Equity Stock if such Transfer would result in the
Equity Stock of the Company being owned by fewer than one hundred (100) Persons.
Any Person who Beneficially Owns or Constructively Own or attempts to
Beneficially Own or Constructively Own shares of Equity Stock which causes or
will cause a Person to Beneficially or Constructively Own shares of Equity Stock
in excess or in violation of the above limitations must immediately notify the
Company. If any of the restrictions on transfer or ownership are violated, the
shares of Equity Stock represented hereby will be automatically transferred to a
Trustee of a Trust for the benefit of one or more Charitable Beneficiaries. In
addition, upon the occurrence of certain events, attempted Transfers in
violation of the restrictions described above may be void ab initio. All
capitalized terms in this statement have the meanings defined in the Company's
Articles of Incorporation, as the same may be amended from time to time, a copy
of which, including the restrictions on transfer and ownership, will be
furnished to each holder of Equity Stock of the Company on request and without
charge.

                                       B-1<Page>

                                                                    EXHIBIT 10.1

                          BUSINESS MANAGEMENT AGREEMENT

     THIS BUSINESS MANAGEMENT AGREEMENT (this "Agreement"), dated as of February
[__], 2005, is entered into by and between INLAND AMERICAN REAL ESTATE TRUST,
INC., a Maryland corporation (the "Company"), and INLAND AMERICAN BUSINESS
MANAGER & ADVISOR INC., an Illinois corporation (the "Business Manager").

                                   WITNESSETH:

     WHEREAS, the Company has registered with the Securities and Exchange
Commission to issue Shares (as defined in SECTION 1 below) in a public offering
and may subsequently issue securities other than these Shares ("Securities");

     WHEREAS, the Company intends to qualify as a REIT (as defined in SECTION 1
below), and to make investments permitted by the terms of the Articles of
Incorporation (as defined below) and Sections 856 through 860 of the Code (as
defined in SECTION 1 below);

     WHEREAS, the Company desires to avail itself of the experience, sources of
information, advice, assistance and facilities available to the Business Manager
and to have the Business Manager undertake the duties and responsibilities
hereinafter set forth, on behalf of, and subject to the supervision of, the
Board of Directors (as defined in SECTION 1 below), all as provided herein; and

     WHEREAS, the Business 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 set forth herein,
the parties hereto agree as follows:

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

            "ACQUISITION CO." means Inland Real Estate Acquisitions, Inc., an
Illinois Corporation.

            "ACQUISITION EXPENSES" means any and all expenses incurred by the
Company, the Business Manager or any Affiliate of either in connection with
selecting, evaluating or acquiring any investment in Real Estate Assets,
including but not limited to legal fees and expenses, travel and communication,
appraisals and surveys, nonrefundable option payments regardless of whether the
Real Estate Asset is acquired, accounting fees and expenses, computer related
expenses, architectural and engineering reports, environmental and asbestos
audits and surveys, title insurance and escrow fees, and personal and
miscellaneous expenses.

            "ACQUISITION FEES" means the total of all fees and commissions,
excluding Acquisition Expenses, paid by any Person to any other Person
(including any fees or

<Page>

commissions paid by or to the Company, the Business Manager or any Affiliate of
either) in connection with an investment in Real Estate Assets or purchasing,
developing or constructing a property by the Company. For these purposes, the
fees or commissions shall include any real estate commission, selection fee,
development fee, construction fee, nonrecurring management fee, loan fee,
including points, or any fee of a similar nature, however designated, except for
development fees and construction fees paid to any Person not Affiliated with
the Sponsor or Business Manager in connection with the actual development and
construction of a project, or fees in connection with temporary short-term
investments acquired for purposes of cash management.

            "ACQUISITION OF A REAL ESTATE OPERATING COMPANY" means the
acquisition of a Real Estate Operating Company by the Company or a wholly-owned
subsidiary of the Company: (i) by purchasing at least fifty and one-tenth
percent (50.1%) of the capital stock or other equity interest in a Real Estate
Operating Company, or by merger or other business combination, reorganization or
tender offer or (ii) by acquiring all or substantially all of a Real Estate
Operating Company's assets in a single or series of purchases.

            "AFFILIATE" means, with respect to any other Person:

            (a)    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;

            (b)    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;

            (c)    any Person directly or indirectly controlling, controlled by
     or under common control with such other Person;

            (d)    any executive officer, director, trustee, general partner or
     manager of such other Person; and

            (e)    any legal entity for which such Person acts as an executive
     officer, director, trustee, general partner or manager.

            "AFFILIATED DIRECTORS" means those directors of the Company who are
affiliated with the Sponsor.

            "ARTICLES OF INCORPORATION" means the articles of incorporation of
the Company, as amended or restated from time to time.

            "AVERAGE INVESTED ASSETS" means, for any period, the average of the
aggregate Book Value of the assets of the Company, including lease intangibles,
invested, directly or indirectly, in financial instruments, debt and equity
securities and equity interests in and loans secured by Real Estate Assets
including amounts invested in Real Estate Operating Companies, before reserves
for depreciation or bad debts or other similar non-cash reserves, computed by
taking the average of these values at the end of each month during the period.

                                        2
<Page>

            "BOARD OF DIRECTORS" means the persons holding the office of
director of the Company as of any particular time under the Articles of
Incorporation.

            "BOOK VALUE" means the value of the particular asset on the books
and records of the Company, before any allowance for depreciation or
amortization.

            "CODE" means the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder or corresponding provisions of subsequent
revenue laws.

            "COMPANY FIXED ASSETS" means the Real Property, together with the
buildings, leasehold interests, improvements, equipment, furniture, fixtures and
personal property associated therewith, used by the Company in conducting its
business.

            "CURRENT RETURN" means a non-cumulative, non-compounded return,
equal to five percent (5.0%) per annum on Invested Capital.

            "DUE DILIGENCE EXPENSE ALLOWANCE" means any and all bona fide
amounts reimbursed for expenses incurred by any underwriters, dealer managers or
other broker-dealers in connection with investigating the Company or any
offering of Securities made by the Company.

            "EQUITY STOCK" means all classes or series of capital stock of the
Company, including, without limit, its common stock, $.001 par value per share,
and preferred stock, $.001 par value per share.

            "FISCAL YEAR" means the calendar year ending December 31.

            "GAAP" means United States generally accepted accounting principles
as in effect from time to time, consistently applied.

            "GROSS OFFERING PROCEEDS" means the total proceeds from the sale of
500,000,000 Shares in the Offering before deducting Offering Expenses. For
purposes of calculating Gross Offering Proceeds, the selling price for all
Shares, including those for which volume discounts apply, shall be deemed to be
$10.00 per Share. Unless specifically included in a given calculation, Gross
Offering Proceeds does not include any proceeds from the sale of Shares under
the Company's distribution reinvestment plan.

            "INDEMNITEE" OR "INDEMNITEES" means any person(s), entity or
entities seeking indemnity under SECTION 23 hereof.

            "INDEPENDENT DIRECTOR" means any director of the Company who:

            (a)    is not associated and has not been associated within the two
     years prior to becoming an Independent Director, directly or indirectly,
     with the Company, the Sponsor or the Business Manager, whether by ownership
     of, ownership interest in, employment by, any material business or
     professional relationship with, or as an officer or director of the
     Company, the Sponsor, the Business Manager or any of their Affiliates;

                                        3
<Page>

            (b)    does not serve as a director for more than two other REITs
     organized by the Sponsor for the Company, except as a directors; and

            (c)    performs no other services for the Company, except as a
     director.

For purposes of this definition, a business or professional relationship will be
considered material if the gross revenue derived by the director exceeds five
percent (5.0%) of either the director's annual gross revenue during either of
the last two years or the director's net worth on a fair market value basis. An
indirect relationship shall include circumstances in which a director's spouse,
parents, children, siblings, mothers- or fathers-in-law, sons- or
daughters-in-law or brothers- or sisters-in-law is or has been associated with
the Company, the Sponsor, the Business Manager or any of their Affiliates during
the last two years.

            "INVESTED CAPITAL" means the original issue price paid for the
Shares reduced by prior distributions from the sale or financing of the
Company's Properties.

            "MARKETING CONTRIBUTION" means any and all compensation payable to
underwriters, dealer managers or other broker-dealers for expenses in connection
with marketing the sale of Shares, including, without limitation, compensation
payable to Inland Securities Corporation.

            "MANAGEMENT FEE" means any fees payable to the Business Manager
under SECTION 8(a) or SECTION 10 of this Agreement.

            "NET INCOME" means, for any period, the aggregate amount of total
revenues applicable to the period less the expenses applicable to the same
period other than additions to, or allowances for, reserves for depreciation,
amortization or bad debts or other similar noncash reserves all calculated in
accordance with GAAP; provided, however, that Net Income shall not include any
gain recognized upon the sale of the Company's assets.

            "NET SALES PROCEEDS" means the proceeds from the sale, grant or
conveyance of any Real Estate Assets, including assets owned by a Real Estate
Operating Company that is acquired by the Company and operated as one of its
subsidiaries, less any costs incurred in selling the asset including, but not
limited to, legal fees and selling commissions and further reduced by the amount
of any indebtedness encumbering the asset and any amounts reinvested in one or
more Real Estate Assets or set aside as a reserve within one hundred eighty
(180) days of closing of sale, grant or conveyance.

            "OFFERING" means the initial public offering of Shares on a "best
efforts" basis pursuant to the Prospectus dated [__________] [__], 2005.

            "OFFERING EXPENSES" means all expenses incurred by, and to be paid
from, the assets of the Company in connection with and in preparing the Company
for registration and offering its Shares to the public, including, but not
limited to, total underwriting and brokerage discounts and commissions
(including fees and expenses of underwriters' attorneys paid by the Company),
expenses for printing, engraving, mailing, salaries of the Company's employees
while engaged in sales activity, charges of transfer agents, registrars,
trustees, escrow holders,

                                        4
<Page>

depositaries, experts, expenses of qualification of the sale of the securities
under federal and state laws, including taxes and fees and accountants' and
attorneys' fees and expenses.

            "ORGANIZATION EXPENSES" means the aggregate of all Offering
Expenses, including Selling Commissions, the Marketing Contribution and the Due
Diligence Expense Allowance.

            "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.

            "PRIMARY GEOGRAPHICAL AREA OF INVESTMENT" means, with respect to the
Company, the United States and Canada.

            "PROPERTY" or "PROPERTIES" means interests in (i) Real Property or
(ii) 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.

            "PROPERTY MANAGER" means Inland North American Property Management
Corp., a Delaware corporation, and any of its successors and assigns.

            "PROSPECTUS" means the final prospectus of the Company in connection
with the registration of Shares filed with the Securities and Exchange
Commission on Form S-11, as amended and supplemented.

            "REAL ESTATE ASSETS" means any and all investments in: (i) Real
Property whether directly or indirectly through owned or controlled subsidiaries
or a Real Estate Operating Company and including amounts invested in joint
ventures; (ii) loans, or other evidence of indebtedness secured, directly or
indirectly, by interests in Real Property; (iii) mortgage backed securities; and
(iv) "Real Estate Assets" as that term is defined in the Articles of
Incorporation.

            "REAL ESTATE OPERATING COMPANY" means: (i) any entity that has
equity securities registered under Section 12(b) or 12(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"); (ii) any entity that
files periodic reports under Sections 13 or 15(d) of the Exchange Act; or (iii)
any entity that, either itself or through its subsidiaries:

            (a)    owns and operates interests in real estate on a going concern
     basis rather than as a conduit vehicle for investors to participate in the
     ownership of assets for a limited period of time;

            (b)    has a policy or purpose of reinvesting sale, financing or
     refinancing proceeds or cash from operations;

            (c)    has its own directors, managers or managing general partners,
     as applicable; and

            (d)    either (1) has its own officers and employees that, on a
     daily basis, actively operate the entity and its subsidiaries and
     businesses, or (2) has retained the services of an

                                        5
<Page>

     affiliate or sponsor of, or advisor to, the entity to, on a daily basis,
     actively operate the entity and its subsidiaries and businesses.

            "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.

            "REIT" means a real estate investment trust as defined in Sections
856 through 860 of the Code.

            "SHARES" means the shares of common stock, par value $.001 per
share, of the Company, and "Share" means one of those Shares.

            "SELLING COMMISSIONS" means any and all commissions, not to exceed
seven and one-half percent (7.5%) of the gross offering price of any Shares,
payable to underwriters, dealer managers or other broker-dealers in connection
with the sale of Shares, including, without limitation, commissions payable to
Inland Securities Corporation.

            "SPONSOR" means Inland Real Estate Investment Corporation, a
Delaware corporation.

            "STOCKHOLDERS" means holders of shares of Equity Stock.

            "TOTAL OPERATING EXPENSES" means the aggregate expenses of every
character paid or incurred by the Company as determined under GAAP, including
the Management Fee and other fees payable hereunder, but excluding:

            (a)    the expenses of raising capital such as Offering Expenses,
     Organization Expenses, legal, audit, accounting, underwriting, brokerage,
     listing, registration and other fees, printing and other expenses and taxes
     incurred in connection with the issuance, distribution, transfer,
     registration and listing of any shares of the Equity Stock;

            (b)    property expenses;

            (c)    interest payments;

            (d)    taxes;

            (e)    non-cash charges such as depreciation, amortization and bad
     debt reserves;

            (f)    any incentive fees payable hereunder; and

            (g)    Acquisition Fees, Acquisition Expenses, real estate
     commissions on resale of property and other expenses connected with
     acquiring, disposing and owning real estate interests, mortgage loans, or
     other property (such as the costs of foreclosure, insurance premiums, legal
     services, maintenance, repair and property improvements).

                                        6
<Page>

     2.     DUTIES OF THE BUSINESS MANAGER. The Business Manager shall consult
with the Company and shall, at the request of the Board of Directors or the
officers of the Company, furnish advice and recommendations with respect to all
aspects of the business and affairs of the Company. The Business Manager shall
inform the Board of Directors of factors that come to the Business Manager's
attention that may, in its opinion, influence the policies of the Company.
Subject to the supervision of the Board of Directors and consistent with the
provisions of the Articles of Incorporation, the Business Manager shall use its
best efforts to:

            (a)    subject to the terms and conditions set forth in that certain
     Property Acquisition Agreement by and between the Company and Acquisition
     Co., of even date herewith, use commercially reasonable efforts to identify
     potential investment opportunities in Real Estate Assets located in the
     Primary Geographical Area of Investment and consistent with the Company's
     investment objectives and policies; including but not limited to:

                   (i)    locating, analyzing and selecting potential
            investments in Real Estate Assets;

                   (ii)   structuring and negotiating the terms and conditions
            of acquisition and disposition transactions;

                   (iii)  arranging for financing and refinancing and making
            other changes in the asset or capital structure of the Company and
            disposing of and reinvesting the proceeds from the sale of, or
            otherwise deal with the investments in, Real Estate Assets; and

                   (iv)   entering into leases and service contracts, on the
            Company's behalf, for Real Estate Assets and, to the extent
            necessary, performing all functions necessary to maintain and
            administer the Company's assets.

            (b)    assist the Board of Directors in evaluating these investment
     opportunities;

            (c)    provide the Board of Directors with research and other
     statistical data and analysis in connection with the Company's assets,
     operations and investment policies;

            (d)    manage the Company's day-to-day operations, consistent with
     the investment objectives and policies established by the Board of
     Directors from time to time;

            (e)    investigate, select and conduct relations with lenders,
     consultants, accountants, brokers, property managers, attorneys,
     underwriters, appraisers, insurers, corporate fiduciaries, banks, builders
     and developers, sellers and buyers of investments and persons acting in any
     other capacity specified by the Company from time to time, and enter into
     contracts in the Company's name with, and retaining and supervising
     services performed by, such parties in connection with investments that
     have been or may be acquired or disposed of by the Company;

                                        7
<Page>

            (f)    cooperate with the Property Manager in connection with
     property management services and other activities relating to the Company's
     assets, subject to the requirement that the Business Manager or the
     Property Manager, as the case may be, qualifies as an "independent
     contractor" as that phrase is used in connection with applicable laws,
     rules and regulations affecting REITs that own Real Property;

            (g)    upon request of the Company, act, or obtain the services of
     others to act, as attorney-in-fact or agent of the Company in making,
     acquiring and disposing of investments, disbursing and collecting the
     funds, paying the debts and fulfilling the obligations of the Company and
     handling, prosecuting and settling any claims of the Company, including
     foreclosing and otherwise enforcing mortgage and other liens and security
     interests securing investments;

            (h)    assist in negotiations on behalf of the Company with
     investment banking firms and other institutions or investors for public or
     private sales of Securities of the Company or for other financing on behalf
     of the Company, provided that in no event may the Business Manager act as a
     broker, dealer, underwriter or investment advisor of, or for, the Company;

            (i)    maintain, with respect to any Real Property and to the extent
     available, title insurance or other assurance of title and customary fire,
     casualty and public liability insurance;

            (j)    supervise the preparation and filing and distribution of
     returns and reports to governmental agencies and to investors and act on
     behalf of the Company in connection with investor relations;

            (k)    provide office space, equipment and personnel as required for
     the performance of the foregoing services as Business Manager;

            (l)    advise the Board of Directors, from time to time, of the
     Company's operating results and coordinating preparation, with each
     property manager, of an operating budget including one, three and five year
     projections of operating results and such other reports as may be
     appropriate for each Real Estate Asset;

            (m)    prepare, on behalf of the Company, all reports and returns
     required by the Securities and Exchange Commission, Internal Revenue
     Service and other state or federal governmental agencies relating to the
     Company and its operations;

            (n)    undertake and perform all services or other activities
     necessary and proper to carry out the Company's investment objectives;

            (o)    provide the Company with all necessary cash management
     services;

            (p)    maintain the Company's books and records including, but not
     limited to, appraisals or fairness opinions obtained in connection with
     acquiring or disposing Real Estate Assets; and

                                        8
<Page>

            (q)    enter into ancillary agreements with the Sponsor and its
     Affiliates to arrange for the services and licenses to be provided by the
     Business Manager hereunder.

     3.     NO PARTNERSHIP OR JOINT VENTURE. The Company and the Business
Manager are not, and shall not be deemed to be, partners or joint venturers with
each other.

     4.     REIT QUALIFICATIONS. Notwithstanding any other provision of this
Agreement to the contrary, the Business Manager shall refrain from taking any
action that, in its reasonable judgment or in any judgment of the Board of
Directors of which the Business Manager has written notice, would adversely
affect the qualification of the Company as a REIT under the Code or that would
violate any law, rule or regulation of any governmental body or agency having
jurisdiction over the Company or its Securities, or that would otherwise not be
permitted by the Articles of Incorporation. If any such action is ordered by the
Board of Directors, the Business Manager shall promptly notify the Board of
Directors that, in the Business Manager's judgment, the action would adversely
affect the Company's status as a REIT or violate any law, rule or regulation or
the Articles of Incorporation and shall refrain from taking such action pending
further clarification or instruction from the Board of Directors.

     5.     BANK ACCOUNTS. At the direction of the Board of Directors or the
officers of the Company, the Business Manager shall establish and maintain bank
accounts in the name of the Company, and shall collect and deposit into and
disburse from such accounts moneys on behalf of the Company, upon such terms and
conditions as the Board of Directors may approve, provided that no funds in any
such account shall be commingled with funds of the Business Manager. The
Business Manager shall, from time to time, as the Board of Directors or the
officers of the Company may require, render appropriate accountings of such
collections, deposits and disbursements to the Board of Directors and to the
Company's auditors.

     6.     FIDELITY BOND. The Business Manager shall not be required to obtain
or maintain a fidelity bond in connection with performing its services
hereunder.

     7.     INFORMATION FURNISHED TO THE BUSINESS MANAGER. The Board of
Directors will keep the Business Manager informed in writing concerning the
investment and financing policies of the Company. The Board of Directors shall
notify the Business Manager promptly in writing of the Board of Director's
intention to make any investments or to sell or dispose of any existing
investments. The Company shall furnish the Business Manager with a certified
copy of all financial statements, a signed copy of each report prepared by
independent certified public accountants and such other information with regard
to its affairs as the Business Manager may reasonably request.

                                        9
<Page>

     8.     COMPENSATION. Subject to the provisions of SECTION 13 hereof, for
services rendered hereunder the Company shall pay to the Business Manager or its
designee the following:

            (a)    A Management Fee of not more than one percent (1.0%) of the
     Average Invested Assets, payable quarterly in an amount equal to
     one-quarter of one percent (0.25%) of the Average Invested Assets of the
     Company as of the last day of the immediately preceding quarter; provided
     that in no event shall the Company be obligated to pay a Management Fee
     unless and until all of its Stockholders have received the Current Return.
     This fee terminates if the Company acquires the Business Manager.

            (b)    An Acquisition Fee, equal to two and one-half percent (2.5%)
     of the aggregate purchase price paid upon Acquisition of a Real Estate
     Operating Company; provided, however, that Acquisition Fees shall not be
     paid for acquisitions solely of a fee interest in Property. The Company
     shall pay Acquisition Fees either in cash or by issuing Shares valued for
     these purposes at $10.00 per share. Any Shares issued will be subject to
     restrictions on transfer. If the issuance of Shares to pay an Acquisition
     Fee would result in more than 9.8% of the Company's common stock being held
     by The Inland Group, Inc., a Delaware corporation, and its Affiliates
     including the Business Manager, the Board of Directors may waive the
     ownership restrictions set forth in the Articles of Incorporation to permit
     the issuance of the additional Shares and the payment of the Acquisition
     Fee in that instance. Any waiver by the Board of Directors shall, as a
     consequence, reduce the aggregate number of Shares of the Company's common
     stock that may be held by individuals and entities other than the Business
     Manager. If the Board of Directors does not waive the ownership
     restrictions, the Company shall pay any excess fee in cash. This fee
     terminates if the Company acquires the Business Manager.

            (c)    An incentive fee equal to fifteen percent (15.0%) of the Net
     Sales Proceeds; provided that in no event shall the Company be obligated to
     pay an incentive fee unless and until all of its Stockholders have first
     received a ten percent (10.0%) cumulative, non-compounded return on, plus
     return of, their Invested Capital. This fee terminates if the Company
     acquires the Business Manager.

     9.     EXPENSES.

            (a)    In addition to the compensation paid to the Business Manager
     pursuant to SECTION 8 or SECTION 10 hereof, and subject to the limits
     herein, the Company shall reimburse the Business Manager, the Sponsor and
     its Affiliates for all expenses paid or incurred by the Business Manager,
     the Sponsor or its Affiliates to provide certain services and licenses
     hereunder, including all direct expenses and the costs of salaries and
     benefits of persons employed by the Business Manager, the Sponsor and its
     Affiliates and performing services for the Company.

            (b)    Direct expenses that the Company shall reimburse pursuant to
     Section 9(a) hereof include, but are not limited to:

                   (i)    any Offering Expenses;

                                       10
<Page>

                   (ii)   Acquisition Expenses incurred in connection with
            selecting and acquiring Real Estate Assets;

                   (iii)  the actual cost of goods and services purchased for
            and used by the Company and obtained from entities not affiliated
            with the Business Manager;

                   (iv)   interest and other costs for borrowed money, including
            points and other similar fees;

                   (v)    taxes and assessments on income or Real Property and
            taxes;

                   (vi)   premiums and other associated fees for insurance
            policies including director and officer liability insurance;

                   (vii)  expenses of managing and operating Real Estate Assets
            owned by the Company, whether payable to an Affiliate of the Company
            or a non-affiliated Person;

                   (viii) all fees and expenses paid to members of the Board of
            Directors and the fees and costs of any meetings of the Board of
            Directors or Stockholders;

                   (ix)   expenses associated with listing or with issuing
            Shares and Securities, including Selling Commissions, advertising
            expenses, taxes, legal and accounting fees, listing and registration
            fees and other Organization Expenses and Offering Expenses except
            for Selling Commissions or other fees and expenses paid by the
            Dealer Manager to any Soliciting Dealer (as those terms are defined
            in the Dealer Manager Agreement) pursuant to that certain Dealer
            Manager Agreement dated February [__], 2005 by and between the
            Company and Inland Securities Corporation;

                   (x)    expenses associated with dividends or distributions
            paid in cash or otherwise made or caused to be made by the Company
            to Stockholders;

                   (xi)   expenses of organizing the Company and filing,
            revising, amending, converting or modifying the Articles of
            Incorporation or the bylaws;

                   (xii)  all expenses associated with Stockholder
            communications including the cost of preparing, printing and mailing
            annual reports, proxy statements and other reports required by
            governmental entities;

                   (xiii) administrative service expenses including personnel
            costs; provided, however, that no reimbursement shall be made for
            costs of personnel to the extent that such personnel perform
            services in transactions for which the Business Manager receives a
            separate fee;

                   (xiv)  audit, accounting and legal fees paid to third
            parties;

                                       11
<Page>

                   (xv)   transfer agent and registrar's fees and charges paid
            to third parties; and

                   (xvi)  expenses relating to any offices or office facilities
            maintained solely for the benefit of the Company that are separate
            and distinct from the Company's executive offices.

            (c)    The Company shall also reimburse the Business Manager, the
     Sponsor and its Affiliates pursuant to Section 9(a) hereof for the salaries
     and benefits of persons employed by the Business Manager, the Sponsor or
     its Affiliates and performing services for the Company.

                   (i)    In the case of the Sponsor, whose employees also
            provide services for other entities sponsored by, or affiliated
            with, the Sponsor, the Company shall reimburse only a pro rata
            portion of the salary and benefits of these persons based on the
            amount of time spent by that person on matters for the Company
            compared to the time spent by that same person on all matters
            including the Company's matters.

                   (ii)   Except as otherwise agreed in writing by the Company
            or the Business Manager, the Company shall also reimburse Affiliates
            of the Sponsor for the salaries and benefits of persons employed by
            these Affiliates. The salary and benefit costs for each Affiliate
            shall be determined by multiplying (A) the number of hours spent by
            all employees of the Affiliate in providing services for the Company
            by (B) that Affiliate's "hourly billing rate." For these purposes,
            the "hourly billing rate" will approximate the hourly cost to the
            Affiliate to provide services to the Company based on:

                   (1)    the average amount of all salaries and bonuses paid to
                          the employees of the Affiliate; and

                   (2)    an allocation for overhead including employee
                          benefits, rent, materials, fees, taxes, and other
                          operating expenses incurred by the Affiliate in
                          operating its business except for direct expenses
                          reimbursed by the Company pursuant to SECTION 9(b)
                          hereof.

            (d)    The Business Manager shall prepare a statement documenting
     the expenses paid or incurred by the Business Manager, the Sponsor and its
     Affiliates for the Company on a quarterly basis. The Company shall
     reimburse the Business Manager, the Sponsor and its Affiliates for these
     expenses within forty-five (45) days after the end of each calendar
     quarter.

            (e)    The Business Manager shall direct its employees, and shall
     cause the Sponsor and its Affiliates to direct their employees, who perform
     services for the Company to keep time sheets or other appropriate billing
     records and receipts in connection with any reimbursement of expenses made
     by the Company pursuant to this SECTION 9. All time sheets or other
     appropriate billing records or receipts shall be made available to the
     Company upon reasonable request to the Business Manager.

                                       12
<Page>

     10.    COMPENSATION FOR ADDITIONAL SERVICES, CERTAIN LIMITATIONS.

            (a)    The Company and the Business Manager will separately
     negotiate and agree on the fees for any additional services that the
     Company asks the Business Manager or its Affiliates to render in addition
     to those set forth in SECTION 2 hereof. Any additional fees or
     reimbursements to be paid by the Company in connection with the additional
     services must be fair and reasonable and shall be approved by a majority of
     the Board of Directors, including a majority of the Independent Directors.

            (b)    In extraordinary circumstances fully justified to the
     official or agency administering the appropriate state securities laws, the
     Business Manager and its Affiliates may provide other goods and services to
     the Company if all of the following criteria are met:

                   (i)    the goods or services must be necessary to the prudent
            operation of the Company;

                   (ii)   the compensation, price or fee must be equal to the
            lesser of ninety percent (90.0%) of the compensation, price or fee
            the Company would be required to pay to independent, non-affiliated
            third parties who are rendering comparable services or selling or
            leasing comparable goods on competitive terms in the same geographic
            location, or ninety percent (90.0%) of the compensation, price or
            fee charged by the Business Manager or its Affiliates for rendering
            comparable services or selling or leasing comparable goods on
            competitive terms; and

                   (iii)  if at least ninety-five percent (95.0%) of gross
            revenues attributable to the business of rendering such services or
            selling or leasing such goods are derived from persons other than
            Affiliates, the compensation, price or fee charged by an
            unaffiliated person who is rendering comparable services or selling
            or leasing comparable goods must be on competitive terms in the same
            geographic location. Extraordinary circumstances shall be presumed
            to exist only when there is an emergency situation requiring
            immediate action by the Business Manager or its Affiliates and the
            goods or services are not immediately available from unaffiliated
            parties. Services that may be performed in extraordinary
            circumstances include emergency maintenance of Company properties,
            janitorial and other related services due to strikes or lockouts,
            emergency tenant evictions and repair services that require
            immediate action, as well as operating and releasing properties with
            respect to which the leases are in default or have been terminated.

            (c)    Permitted reimbursements shall include salaries and related
     salary expenses for nonsupervisory services that could be performed
     directly for the Company by independent, non-affiliated third parties such
     as legal, accounting, transfer agent, data processing and duplication. The
     Business Manager believes that the employees of the Business Manager,
     the Sponsor and its Affiliates who may perform services for the Company for
     which reimbursement is allowed, will have the experience and educational

                                       13
<Page>

     background, in their respective fields of expertise, appropriate for the
     performance of any such services.

     11.    STATEMENTS. The Business Manager shall furnish to the Company, not
later than the tenth (10th) day of each calendar quarter, beginning with the
second calendar quarter of the term of this Agreement, a statement computing any
Management Fee, Acquisition Fee or incentive fee payable hereunder. The Business
Manager shall also furnish to the Company, not later than the thirtieth (30th)
day following the end of each Fiscal Year, a statement computing the fees
payable to the Business Manager, the Sponsor or its Affiliates for the
just completed Fiscal Year; provided that any compensation payable hereunder
shall be subject to adjustments in accordance with, and upon completion of,
the annual audit of the Company's financial statements.

     12.    BUSINESS COMBINATION.

            (a)    BUSINESS COMBINATIONS. The Company shall consider becoming a
     self-administered REIT once the Company's assets and income are, in the
     view of the Board of Directors, of sufficient size such that internalizing
     the management functions performed by the Business Manager and the Property
     Manager is in the best interests of the Stockholders.

            If the Board of Directors should make this determination in the
     future, the Company shall pay one-half of the costs, and the Business
     Manager and the Property Manager shall pay the other half, of an
     investment banking firm. This firm shall jointly advise the Company and
     the Sponsor on the value of the Business Manager and the Property Manager.
     After the investment banking firm completes its analyses, the Company
     shall require it to prepare a written report and make a formal
     presentation to the Board of Directors.

          Following the presentation by the investment banking firm, the Board
     of Directors shall form a special committee comprised entirely of
     Independent Directors to consider a possible business combination with the
     Business Manager and the Property Manager. The Board of Directors shall,
     subject to applicable law, delegate all of its decision-making power and
     authority to the special committee with respect to these matters. The
     special committee also shall be authorized to retain its own financial
     advisors and legal counsel to, among other things, negotiate with
     representatives of the Business Manager and the Property Manager regarding
     a possible business combination.

            (b)    CONDITIONS TO COMPLETION OF BUSINESS COMBINATION. Before the
     Company may complete any business combination with either the Business
     Manager or the Property Manager in accordance with this SECTION 12, the
     following two conditions shall be satisfied:

                   (i)    the special committee formed in accordance with
            SECTION 12(a) hereof receives an opinion from a recognized
            investment banking firm, separate and distinct from the firm jointly
            retained to provide a valuation analysis in accordance with SECTION
            12(a) hereof, concluding that the consideration to be paid

                                       14
<Page>

            to acquire the Business Manager or the Property Manager, as the case
            may be, is fair to the Stockholders from a financial point of view;
            and

                   (ii)   the holders of a majority of the votes cast at a
            meeting of the Stockholders called for such purpose (if a quorum is
            present at the meeting) approves the acquisition; provided that, for
            these purposes only, any shares held by The Inland Group, Inc., the
            Sponsor or any of their Affiliates will be counted for purposes of
            determining the presence of quorum but will not, however, initially
            constitute a vote cast for purposes of determining the number of
            votes necessary to approve the acquisition. If the proposal receives
            the necessary votes to approve the acquisition, all shares held by
            The Inland Group, Inc., the Sponsor or any of their Affiliates may
            then be voted in favor of the transaction.

     13.    REIMBURSEMENT BY BUSINESS MANAGER. The Business Manager shall be
obligated to reimburse the Company in the following circumstances:

            (a)    On or before the fifteenth (15th) day after the completion of
     the annual audit of the Company's financial statements for each Fiscal
     Year, the Business Manager shall reimburse the Company for the amounts, if
     any by which the Total Operating Expenses (including the Management Fee
     and other fees payable hereunder) of the Company for the Fiscal Year just
     ended exceeded the greater of:

                   (i)    two percent (2.0%) of the total of the Average
            Invested Assets for the just ended Fiscal Year; or

                   (ii)   twenty-five percent (25.0%) of the Net Income for the
            just ended Fiscal Year;

     provided, however, that the Business Manager may satisfy any obligation
     under this SECTION 13(a) by reducing the amount to be paid the Business
     Manager under SECTION 8 or SECTION 10 hereunder until the Business Manager
     has satisfied its obligations under this SECTION 13(a); provided, further,
     that the Board of Directors, including a majority of the Independent
     Directors of the Company, may reduce the amount due under this SECTION
     13(a) upon a finding that the increased expenses were caused by unusual or
     nonrecurring factors.

            (b)    If the aggregate of all Organization Expenses exceeds fifteen
     percent (15.0%) of the Gross Offering Proceeds or the aggregate of all
     Offering Expenses (excluding any Selling Commissions, the Marketing
     Contribution and the Due Diligence Expense Allowance) exceed four and
     one-half percent (4.5%) of the Gross Offering Proceeds, the Business
     Manager or its Affiliates shall reimburse the Company for, or pay directly,
     any excess Organization Expenses or Offering Expenses incurred by the
     Company above the greater of these limits.

     14.    OTHER ACTIVITIES OF THE BUSINESS MANAGER. Nothing contained herein
shall prevent the Business Manager or an Affiliate of the Business Manager from
engaging in any other business or activity including rendering services or
advising on real estate investment opportunities to any other person or entity.
Directors, officers, employees and agents of the

                                       15
<Page>

Business Manager or of Affiliates of the Business Manager may serve as
directors, trustees, officers, employees or agents of the Company, but shall
receive no compensation (other than reimbursement for expenses) from the Company
for this service.

     15.    TERM; TERMINATION OF AGREEMENT. This Agreement shall have an initial
term of three years and, thereafter, will continue in force for successive one
year renewals with the mutual consent of the parties including an affirmative
vote of a majority of the Independent Directors. Each extension shall be
executed in writing by both parties hereto prior to the expiration of this
Agreement or of any extension thereof.

     Notwithstanding any other provision of the Agreement to the contrary, this
Agreement may be terminated at the mutual consent of the parties. The Company
may terminate this Agreement upon a vote of a majority of the Independent
Directors by providing no less than sixty (60) days' written notice to the
Business Manager. In the event of the termination of the Agreement, the Business
Manager will cooperate with the Company and take all reasonable steps requested
to assist the Board of Directors in making an orderly transition of the
functions performed hereunder by the Business Manager.

     This Agreement shall also terminate upon the closing of a business
combination between the Company and the Business Manager as described in SECTION
12 or as otherwise provided in SECTION 17 hereof.

     If this Agreement is terminated pursuant to this SECTION 15, the parties
shall have no liability or obligation to each other including any obligations
imposed by SECTION 2(a) hereof, except as provided in SECTION 18.

     16.    ASSIGNMENTS. The Business Manager may not assign this Agreement
except to a successor organization that acquires substantially all of its
property and carries on the affairs of the Business Manager; provided that
following the assignment, the persons who controlled the operations of the
Business Manager immediately prior thereto, control the operations of the
successor organization, including the performance of duties under this
Agreement; however, if at any time subsequent to the assignment such persons
cease to control the operations of the successor organization, the Company may
thereupon terminate this Agreement. This Agreement shall not be assignable by
the Company without the consent of the Business Manager, except to a
corporation, trust or other organization that is a successor to the Company. Any
assignment of this Agreement shall bind the assignee hereunder in the same
manner as the assignor is bound hereunder.

     17.    DEFAULT, BANKRUPTCY, ETC. At the sole option of the Company, this
Agreement shall be terminated immediately upon written notice of termination
from the Board of Directors to the Business Manager if any of the following
events occurs:

            (a)    the Business Manager violates any provisions of this
     Agreement and after notice of such violation shall not cure such default
     within thirty (30) days; or

            (b)    a court of competent jurisdiction enters a decree or order
     for relief in respect of the Business Manager in any involuntary case under
     the applicable bankruptcy, insolvency or other similar law now or hereafter
     in effect, or appoints a receiver

                                       16
<Page>

     liquidator, assignee, custodian, trustee, sequestrator (or similar
     official) of the Business Manager or for any substantial part of its
     property or orders the winding up or liquidation of the Business Manager's
     affairs; or

            (c)    the Business 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 Business 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.

     The Business Manager agrees that if any of the events specified in
subsections (b) and (c) of this SECTION 17 occur, it will give written notice
thereof to the Company within seven (7) days after the occurrence of such event.

     18.    ACTION UPON TERMINATION.  The Business 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. Upon termination of this Agreement, the Business Manager
shall:

            (a)    pay over to the Company all moneys collected and held for the
     account of the Company pursuant to this Agreement, after deducting any
     accrued compensation and reimbursement for expenses to which the Business
     Manager is entitled;

            (b)    deliver to the Board of Directors a full accounting,
     including a statement showing all payments collected by the Business
     Manager and a statement of all money held by the Business Manager, covering
     the period following the date of the last accounting furnished to the Board
     of Directors;

            (c)    deliver to the Board of Directors all property and documents
     of the Company then in the custody of the Business Manager; and

            (d)    cooperate with the Company and take all reasonable steps
     requested by the Company to assist the Board of Directors in making an
     orderly transition of the functions performed by the Business Manager.

     19.    TRADENAME AND MARKS. Concurrent with executing this Agreement, the
Company will enter into an agreement granting the Company the right, subject to
the terms and conditions of license agreement, to use the "Inland" name and
marks.

     20.    AMENDMENTS.  This Agreement shall not be amended, changed, modified,
terminated or discharged in whole or in part except by an instrument in writing
signed by both parties hereto, or their respective successors or assigns, or
otherwise provided herein.

     21.    SUCCESSORS AND ASSIGNS.  This Agreement shall bind any successors or
assigns of the parties hereto as herein provided.

                                       17
<Page>

     22.    GOVERNING LAW.  The provisions of this Agreement shall be governed,
construed and interpreted in accordance with the internal laws of the State of
Illinois without regard to its conflicts of law principles.

     23.    LIABILITY AND INDEMNIFICATION.

            (a)    The Company shall indemnify the Business Manager and its
     officers, directors, employees and agents (individually an "Indemnitee",
     collectively the "Indemnitees") to the same extent as the Company may
     indemnify its officers, directors, employees and agents under its Articles
     of Incorporation and bylaws so long as:

                   (i)    the Indemnitee 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 for, the Company;

                   (iii)  the liability or loss was not the result of gross
            negligence or willful misconduct on the part of the Indemnitee; and

                   (iv)   any amounts payable to the Indemnitee are paid only
            out of the Company's assets and not from any personal assets of any
            Stockholder.

            (b)    The Company shall not indemnify any person or entity for
     losses, liabilities or expenses arising from, or out of, an alleged
     violation of federal or state securities laws by any party seeking
     indemnity unless one or more of the following conditions are met:

                   (i)    there has been a successful adjudication on the merits
            of each count involving alleged securities law violations as to the
            particular person or entity;

                   (ii)   the claims have been dismissed with prejudice on the
            merits by a court of competent jurisdiction as to the particular
            person or entity; or

                   (iii)  a court of competent jurisdiction approves a
            settlement of the claims and finds that indemnification of the
            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 the published opinions of any
            state securities regulatory authority in which securities of the
            Company were offered and sold with respect to the availability or
            propriety of indemnification for securities law violations.

            (c)    The Company shall advance amounts to persons entitled to
     indemnification hereunder 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:

                                       18
<Page>

                   (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 and a
            court of competent jurisdiction specifically approves the advance;
            and

                   (iii)  the Indemnitee receiving the advances undertakes to
            repay any monies advanced by the Company, together with the
            applicable legal rate of interest thereon, in any case(s) in which a
            court of competent jurisdiction finds that the party is not entitled
            to be indemnified.

     24.    NOTICES. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is accepted by the party to
whom it is given and shall be given by being delivered at the following
addresses of the parties hereto:

IF TO THE COMPANY:               Inland American Real Estate Trust, Inc.
                                 2901 Butterfield Road
                                 Oak Brook, IL  60523
                                 Attention:  Ms. Roberta S. Matlin
                                 Telephone:  (630) 218-8000
                                 Facsimile:  (630) 218-4955

IF TO THE BUSINESS MANAGER:      Inland American Business Manager & Advisor Inc.
                                 2901 Butterfield Road
                                 Oak Brook, IL 60523
                                 Attention:  Ms. Brenda Gujral
                                 Telephone:  (630) 218-8000
                                 Facsimile:  (630) 218-4955

Either party may at any time give notice in writing to the other party of a
change of its address for the purpose of this SECTION 24.

     25.    CONFLICTS OF INTEREST AND FIDUCIARY DUTIES TO THE COMPANY AND TO THE
COMPANY'S STOCKHOLDERS. The Company and the Business Manager recognize that
their relationship is subject to various conflicts of interest such as set forth
in the Prospectus. The Business Manager, on behalf of itself and its Affiliates,
acknowledges that the Business Manager and its Affiliates have fiduciary duties
to the Company and to the Stockholders. The Business Manager, on behalf of
itself and its Affiliates, agrees, on the one hand, that the Business Manager
and its Affiliates will endeavor to balance the interests of the Company with
the interests of the Business Manager and its Affiliates in making any
determination where a conflict of interest exists between the Company and the
Business Manager or its Affiliates. The Company, on the other hand, agrees that
any such fiduciary duties will be qualified by, and defined in part, by the
Property Acquisition Agreement of even date herewith entered into between the
Company and Acquisition Co.

                                       19
<Page>

     26.    HEADINGS. The section headings hereof have been inserted for
convenience of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement.

                [THE REMAINDER OF THIS PAGE INTENTIONALLY BLANK]

                                       20
<Page>

     IN WITNESS WHEREOF, the undersigned have executed this Business Management
Agreement as of the date first above written.

COMPANY:                              BUSINESS MANAGER:

INLAND AMERICAN REAL ESTATE TRUST,    INLAND AMERICAN BUSINESS MANAGER &
INC.                                  ADVISOR INC.

By:   -----------------------------   By:   ------------------------------------

Name: -----------------------------   Name: ------------------------------------

Its:  -----------------------------   Its:  ------------------------------------

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