Document:

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                                                                  Exhibit 10.163

                                    GUARANTY
                                 LOAN NO. 753946

     THIS GUARANTY (as the same may from time to time hereafter be modified,
supplemented or amended, the "GUARANTY") is made as of June 17, 2004 by INLAND
WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, having an office
at 2901 Butterfield Road, Oak Brook, Illinois 60523 ("GUARANTOR"), in favor of
PRINCIPAL LIFE INSURANCE COMPANY, an Iowa corporation, having a principal place
of business and post office address at c/o Principal Real Estate Investors, LLC,
801 Grand Avenue, Des Moines, Iowa 50392-1450 ("LENDER").

                                    RECITALS:

     Lender has agreed to make a loan (the "LOAN") in the original principal sum
of Twenty Eight Million Five Hundred Ten Thousand and No/100 Dollars
($28,510,000.00) (the "LOAN AMOUNT") to INLAND WESTERN ARVADA, L.L.C., a
Delaware limited liability company ("BORROWER"); and

     The Loan is evidenced by Borrower's secured promissory note made payable
and delivered to Lender (as the same may from time to time hereafter be
modified, amended, supplemented, extended or consolidated in writing, and any
note(s) issued in exchange therefor or replacement thereof, the "NOTE") and
further evidenced and secured by a "MORTGAGE" (it being agreed that "Mortgage"
as hereinafter used shall be construed to mean "mortgage" or "deed of trust" or
"trust deed" or "deed to secure debt" as the context so requires) on certain
real estate located in Jefferson County, Colorado, together with all existing
improvements constructed thereon, said Premises being more particularly
described in said Mortgage, and an Assignment of Leases ("ASSIGNMENT OF
LEASES"); and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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            the regulations adopted and promulgated pursuant thereto) of
            Borrower in any insolvency bankruptcy, reorganization or similar
            proceeding commenced on or prior to the Subrogation Trigger Date.

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

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

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

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

     (b)    The execution, delivery and performance of this Guaranty (i) are
            within the applicable powers of Guarantor; (ii) have been authorized
            by all requisite action; (iii) have received all necessary approvals
            and consents, corporate, governmental or otherwise; (iv) does not
            and will not violate, conflict with, result in a breach of

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            or constitute (with notice or lapse of time, or both) a default
            under any provision of law, any order or judgment of any court or
            governmental authority, the articles of incorporation, by-laws,
            partnership, operating or trust agreement, or other governing
            instrument of Guarantor, or any indenture, agreement or other
            instrument to which Guarantor is a party or by which Guarantor or
            any of Guarantor's assets is or may be bound or affected; (v) does
            not and will not result in the creation or imposition of any lien,
            charge or encumbrance whatsoever upon any of Guarantor's assets; and
            (vi) does not and will not require any authorization or license
            from, or any filing with, any governmental authority or other body.

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

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

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

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

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     satisfied, and any such release or discharge shall be subject to the
     provisions of paragraph 4(b) hereof.

11.  This Guaranty shall remain in full force and effect until all obligations
     of the Borrower under the Underlying Instruments have been satisfied in
     full and are no longer subject to disgorgement under any applicable state
     or federal creditor rights or bankruptcy laws. No delay on the part of the
     Lender in exercising any options, powers or rights, or the partial or
     single exercise thereof, shall constitute a waiver thereof. No waiver of
     any rights hereunder, and no modification or amendment of this Guaranty,
     shall be deemed to be made by the Lender unless the same shall be in
     writing, duly signed on behalf of the Lender, and each such waiver (if any)
     shall apply only with respect to the specific instance involved and shall
     in no way impair the rights of the Lender or the obligations of Guarantor
     to the Lender in any other respect at any other time. This Guaranty and the
     rights and obligations of the Lender and of Guarantor hereunder shall be
     governed and construed in accordance with the laws of the state of
     Colorado, without regard to its conflicts of law principles and this
     Guaranty is binding upon Guarantor, Guarantor's heirs, personal
     representatives and permitted successors or assigns, and shall inure to the
     benefit of the Lender and its successors or assigns.

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

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

14.  Each notice, consent, request or other communication under this Guaranty
     (each a "Notice") which any party hereto may desire or be required to give
     to the other shall be deemed to be adequate and sufficient notice if given
     in writing and service is made by either (i) registered or certified mail,
     postage prepaid, in which case such notice shall be deemed to have been
     received three (3) business days following deposit to U.S. mail; or (ii)
     nationally recognized overnight air courier, next day delivery, prepaid, in
     which case

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     such notice shall be deemed to have been received one (1) business day
     following delivery to such nationally recognized overnight air courier. All
     Notices shall be addressed to Guarantor at its address given on the first
     page hereof, or to Lender at c/o Principal Real Estate Investors, LLC, 801
     Grand Avenue, Des Moines, Iowa 50392-1450, Attn: Commercial Real Estate
     Servicing, Loan No. 753946, or to such other place as any party may by
     notice in writing to the other parties designate as a place for service of
     notice.

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

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

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

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

                     (REMAINDER OF PAGE INTENTIONALLY BLANK
                            SIGNATURES ON NEXT PAGE)

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                           SIGNATURE PAGE OF GUARANTOR
                                  TO GUARANTY

42-1579325
(Guarantor's Identification Number)

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

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

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                                                                  Exhibit 10.164

                                                                LOAN NO. 6518370

                                  MORTGAGE NOTE

$46,750,000.00                                               Lansing, Michigan

                                                                   June 15, 2004

            FOR VALUE RECEIVED, INLAND WESTERN LANSING EASTWOOD, L.L.C., a
Delaware limited liability company, having its principal place of business at
2901 Butterfield Road, Oak Brook, Illinois 60523 (hereinafter referred to as
"MAKER"), promises to pay to the order of JOHN HANCOCK LIFE INSURANCE COMPANY
("JOHN HANCOCK"), a Massachusetts corporation, its successors and assigns, at
its principal place of business at John Hancock Tower, T-56, 200 Clarendon
Street, Boston, Massachusetts 02116 (John Hancock and each successor or assign
being hereinafter referred to as "PAYEE"), or at such place as the holder hereof
may from time to time designate in writing, the principal sum of Forty-six
Million Seven Hundred Fifty Thousand and No/100 Dollars ($46,750,000.00) in
lawful money of the United States of America with interest thereon to be
computed from the date of disbursement of the loan proceeds at the Applicable
Interest Rate (hereinafter defined).

            1.     PAYMENT OF PRINCIPAL AND INTEREST. Principal and interest
shall be paid as follows:

                   a.    If the loan proceeds are not disbursed on the first day
                         of a month, then interest only at the Applicable
                         Interest Rate from and including the date of
                         disbursement of the loan proceeds to the first day of
                         the month following such disbursement shall be due and
                         payable in advance on the date of such disbursement;

                   b.    Interest only is to be paid in installments as follows:
                         $180,766.67 on the 1st day of August, 2004 and on the
                         first day of each calendar month thereafter up to and
                         including the 1st day of June, 2009; and

                   c.    The outstanding principal balance and all accrued and
                         unpaid interest thereon and all other sums and fees due
                         under this Note shall be due and payable on July 1,
                         2009 (the "MATURITY DATE").

            Interest on the principal balance of this Note shall be calculated
on a monthly basis using, as the agreed method of calculation, a three hundred
sixty (360) day year consisting of twelve (12) months of thirty (30) days each;
PROVIDED, HOWEVER, that interest for a period of less than a full month shall
be calculated by multiplying the actual number of days elapsed during such
partial month by a daily rate based upon a three hundred sixty-five (365) day
year and the interest rate then due under this Note.

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                                                                LOAN NO. 6518370

            The term "APPLICABLE INTEREST RATE" as used in this Note shall mean
from the date of disbursement of the loan proceeds through and including the
Maturity Date, a rate of four and sixty-four hundredths percent (4.64%) per
annum.

            If at any time Payee receives, from Maker or otherwise, any amount
applicable to the Debt (hereinafter defined) which is less than all amounts due
and payable at such time, Payee may apply that payment to amounts then due and
payable in any manner and in any order determined by Payee, in Payee's sole
discretion. Payee shall, however, be under no obligation to accept any amount
less than all amounts then due and payable. Maker agrees that neither Payee's
acceptance of a payment from Maker in an amount that is less than all amounts
then due and payable nor Payee's application of such payment shall constitute or
be deemed to constitute either a waiver of the unpaid amounts or an accord and
satisfaction. This provision shall control notwithstanding any inconsistent
direction by Maker or any other obligor hereunder.

            The whole of the principal sum of this Note, together with all
interest accrued and unpaid thereon and all other sums due under this Note and
any other instrument now or hereafter evidencing, securing, guaranteeing or
executed in connection with the indebtedness evidenced hereby (the "LOAN
DOCUMENTS") (all such sums hereinafter collectively referred to as the "DEBT")
shall without notice become immediately due and payable at the option of Payee
upon an "EVENT OF DEFAULT" as the same is defined in the Mortgage (hereinafter
defined). All of the terms, covenants and conditions contained in the Mortgage
and the other Loan Documents are hereby made part of this Note to the same
extent and with the same force as if they were fully set forth herein.

            2.     PREPAYMENT. Except as provided below, Maker may not prepay
the loan in whole or in part.

            On or after the end of the 2nd Loan Year (as hereinafter defined),
on any scheduled payment date and subject to giving Payee not less than thirty
(30) nor more than ninety (90) days' prior written notice specifying the
scheduled payment date on which prepayment is to be made (the "PREPAYMENT
DATE"). Maker may prepay the entire principal amount together with any and all
accrued interest and other sums due under the Loan Documents, and subject to
payment of a prepayment premium equal to the greater of:

                   (a)   the positive amount, if any, equal to (i) the sum of
                         the present values of all scheduled payments due under
                         this Note from the Prepayment Date to and including the
                         Maturity Date, minus (ii) the principal balance of this
                         Note immediately prior to such prepayment; or

                   (b)   one percent (1.00%) of the principal balance of this
                         Note immediately prior to such prepayment.

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                                                                LOAN NO. 6518370

            All present values shall be calculated as of the Prepayment Date,
using a discount rate, compounded monthly, equal to the yield rate, converted to
its monthly equivalent, of the United States Treasury Security having the
closest maturity date to the Maturity Date of this Note as established in the
Wall Street Journal or other business publication of general circulation five
(5) business days before the Prepayment Date.

            In the event that the yield rate on publicly traded United States
Treasury Securities is not obtainable, then the nearest equivalent issue or
index shall be selected, at Payee's reasonable determination, and used to
calculate the prepayment premium.

            The loan will be open to prepayment without premium on any scheduled
payment date during the last ninety (90) days of the term of the loan.

            If any notice of prepayment is given, the principal balance of the
loan and the other sums required pursuant to this Section 2 shall be due and
payable on the Prepayment Date, unless Maker provides written notice to Payee
that it is revoking said prepayment notice no later than five (5) business days
prior to the Prepayment Date.

            The above premium shall not be applicable to a prepayment resulting
from Payee's election to require insurance loss proceeds or condemnation awards
or the proceeds from any letter of credit held by Payee as additional security
for the Loan to be applied to a payment of principal.

            No partial prepayment shall be allowed except in the case of the
application by Payee of any insurance or condemnation or letter of credit
proceeds as expressly provided for in the Loan Documents.

            The Loan Year is defined as any twelve month period commencing with
the date on which the first monthly installment is due or any anniversary
thereof.

            3.     ACCELERATION/DEFAULT. Maker acknowledges that the loan was
made on the basis and assumption that Payee would receive the payments of
interest set forth herein for the full term of this loan. Therefore, whenever
the Maturity Date of the loan has been accelerated by reason of an Event of
Default under the Loan Documents, which Event of Default occurs prior to the
time period, if any, in which prepayment is allowed and prior to the date on
which the full amount of the balance of principal and interest then remaining
unpaid shall be due, including an acceleration by reason of sale, conveyance,
further encumbrance or other Event of Default (which acceleration shall be at
Payee's sole option), there shall be due, in addition to the outstanding
principal balance, accrued interest and other sums due under the Loan Documents,
a prepayment premium equal to (i) the interest which would have accrued on the
principal balance of this Note at the Applicable Interest Rate from the date of
such acceleration to the expiration of the 2nd Loan Year PLUS (ii) an amount
equal to the prepayment premium that would have been due and payable pursuant to
Section 2 hereof had such prepayment occurred on the first (1st) day of the 3rd
Loan Year. In addition, in the event of any prepayment made on or prior to the
first (1st) day of the 2nd Loan Year, there shall also then be immediately due
and payable in addition to the prepayment

                                       -3-
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                                                                LOAN NO. 6518370

premium set forth in the preceding sentence an additional sum equal to two
percent (2.00%) of the then outstanding principal balance of this Note.

            If an Event of Default occurs on or after the date on which
prepayment is permitted, then in lieu of the above premium set forth in this
Section 3, payment of a premium calculated in the manner set forth in Section 2
hereof shall be required.

            A tender of the amount necessary to satisfy the entire indebtedness,
paid at any time following such Event of Default or acceleration, including at a
foreclosure sale or during any subsequent redemption period, if any, shall be
deemed a voluntary prepayment, and, at Payee's option, such payment shall
include a premium as described in this Section 3.

            4.     DEFAULT RATE. Maker does hereby agree that upon the
occurrence of an Event of Default (beyond any applicable grace or cure period)
and while any Event of Default exists, including, without limitation, the
failure of Maker to pay the Debt in full on the Maturity Date, Payee shall be
entitled to receive and Maker shall pay interest on the entire unpaid principal
sum effective from the date of Maker's initial default with respect to such
Event of Default without allowance for any applicable notice and/or grace
period, at a rate (the "DEFAULT RATE") equal to five percent (5%) above the
Applicable Interest Rate, but in no event to exceed the highest rate permitted
under the laws of the jurisdiction where the property secured by the Mortgage is
situated. This charge shall be added to the Debt, and shall be deemed secured by
the Mortgage. This clause, however, shall not be construed as an agreement or
privilege to extend the date of the payment of the Debt, nor as a waiver of any
other right or remedy available to Payee by reason of the occurrence of any
Event of Default.

            5.     LATE CHARGE. If any monthly interest payment payable under
this Note (except for the final payment) is not paid in full within five (5)
days of the date on which it is due, Maker shall pay to Payee an amount equal to
the lesser of five percent (5%) of such unpaid sum or the maximum amount
permitted by applicable law to defray the expenses incurred by Payee in handling
and processing such delinquent payment and to compensate Payee for the loss of
the use of such delinquent payment and such amount shall be secured by the Loan
Documents.

            6.     SECURITY FOR LOAN. This Note is secured by the Mortgage and
certain other Loan Documents. The term "MORTGAGE" as used in this Note shall
mean that certain Mortgage dated the date hereof, securing the principal sum of
$46,750,000.00 made by Maker in favor of Payee covering certain premises located
at 3003 Preyde Boulevard, City of Lansing, in the County of Ingham, State of
Michigan, as more particularly described therein. The Mortgage contains
provisions providing for acceleration of the sums secured thereby in the event
of certain transfers of or encumbrances upon the real estate or interests
therein or interests in Maker, which provisions are incorporated herein by this
reference.

            7.     COMPLIANCE WITH LAW. It is expressly stipulated and agreed to
be the intent of Maker and Payee at all times to comply with applicable state
law or

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                                                                LOAN NO. 6518370

applicable United States federal law (to the extent that it permits Payee to
contract for, charge, take, reserve or receive a greater amount of interest than
under state law) and that this paragraph shall control every other covenant and
agreement in this Note and the other Loan Documents. If the applicable law
(state or federal) is ever judicially interpreted so as to render usurious any
amount called for under this Note or any of the other Loan Documents, or
contracted for, charged, taken, reserved or received with respect to the Debt,
or if Payee's exercise of the option to accelerate the Maturity Date, or if any
prepayment by Maker results in Maker's having paid any interest in excess of
that permitted by applicable law, then it is Payee's express intent that all
excess amounts theretofore collected by Payee shall be (a) credited on the
principal balance of this Note and all other Debt and the provisions of this
Note, and the other Loan Documents immediately be deemed reformed and the
amounts thereafter collectible hereunder and thereunder reduced, without the
necessity of the execution of any new documents, so as to comply with the
applicable law, but so as to permit the recovery of the fullest amount otherwise
called for hereunder or thereunder or (b) if required by law, refunded to Maker.
All sums paid or agreed to be paid to Payee for the use or forbearance of the
Debt shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full stated term of the Debt until payment
in full so that the rate or amount of interest on account of the Debt does not
exceed the maximum lawful rate from time to time in effect and applicable to the
Debt for so long as the Debt is outstanding. Notwithstanding anything to the
contrary contained herein, in the Mortgage or in any of the other Loan
Documents, it is not the intention of Payee to accelerate the maturity of any
interest that has not accrued at the time of such acceleration or to collect
unearned interest at the time of such acceleration.

            8.     AMENDMENTS. This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Maker or Payee, but only by an agreement in writing signed by
the party against whom enforcement of any modification, amendment, waiver,
extension, change, discharge or termination is sought.

            9.     JOINT AND SEVERAL LIABILITY. If Maker consists of more than
one person or party, the obligations and liabilities of each such person or
party shall be joint and several.

            10.    CONSTRUCTION. Whenever used, the singular number shall
include the plural, the plural the singular, and the words "PAYEE" and "MAKER"
shall include their respective successors, assigns, heirs, executors and
administrators.

            11.    WAIVERS. Maker and all others who may become liable for the
payment of all or any part of the Debt do hereby severally waive presentment and
demand for payment, notice of dishonor, protest, notice of protest and
non-payment and notice of intent to accelerate the maturity hereof (and of such
acceleration). No release of any security for the Debt or extension of time for
payment of this Note or any installment hereof and no alteration, amendment or
waiver of any provision of this Note, the Mortgage or any other Loan Documents
made by agreement between Payee and any other person or party shall release,
modify, amend, waive, extend, change, discharge,

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                                                                LOAN NO. 6518370

terminate or affect the liability of Maker and any other who may become liable
for the payment of all or any part of the Debt, under this Note, the Mortgage or
any other Loan Documents.

            12.    AUTHORITY. Maker (and the other undersigned representative of
Maker, if any) represents that Maker has full power, authority and legal right
to execute, deliver and perform its obligations pursuant to this Note, the
Mortgage and the other Loan Documents and that this Note, the Mortgage and the
other Loan Documents constitute valid and binding obligations of Maker.

            13.    TIME. Time is of the essence of this Note.

            14.    REPLACEMENT NOTE. In the event of the loss, theft or
destruction of this Note, upon Maker's receipt of a reasonably satisfactory
indemnification agreement executed in favor of Maker by Payee or in the event of
the mutilation of this Note, upon the surrender of the mutilated Note by Payee
to Maker, Maker shall execute and deliver to Payee a new mortgage note in form
and content identical to this Note in lieu of the lost, stolen, destroyed or
mutilated Note.

            15.    NOTICE. All notices required to be given pursuant hereto
shall be given in the manner specified in the Mortgage directed to the parties
at their respective addresses as provided therein.

            16.    COSTS AND EXPENSES. Maker shall pay all expenses and costs,
including reasonable fees and out-of-pocket expenses of attorneys and expert
witnesses and costs of investigation incurred by Payee as a result of any Event
of Default or in connection with efforts to collect any amount due under this
Note or to enforce the provisions of any of the Loan Documents, including those
incurred in post-judgment collection efforts and in any bankruptcy proceeding
(including any action for relief from the automatic stay of any bankruptcy
proceeding) or judicial foreclosure proceeding.

            17.    FORBEARANCE. Any forbearance by Payee in exercising any right
or remedy under this Note, the Mortgage or any other Loan Document or otherwise
afforded by applicable law shall not be a waiver of or preclude the exercise of
that or any other right or remedy. The acceptance by Payee of any payment after
the due date of such payment or in an amount which is less than the required
payment shall not be a waiver of Payee's right to require prompt payment when
due of all other payments or to exercise any right or remedy with respect to any
failure to make prompt payment. Enforcement by Payee of any security for Maker's
obligations under this Note shall not constitute an election by Payee of
remedies so as to preclude the exercise of any other right or remedy available
to Payee.

            18.    SECTION HEADINGS. The Section headings inserted in this Note
have been included for convenience only and are not intended and shall not be
construed to limit or define in any way the substance of any section contained
herein.

            19.    LIMITATION ON LIABILITY. Notwithstanding anything to the
contrary contained herein, but subject to the obligations of PARAGRAPH 45 of the
Mortgage, any

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                                                                LOAN NO. 6518370

claim based on or in respect of any liability of Maker under this Note, the
Mortgage or any other Loan Document shall be enforced only against the Mortgaged
Property (as such term is defined in the Mortgage) and any other collateral now
or hereafter given to secure this Note and not against any other assets,
properties or funds of Maker; PROVIDED, HOWEVER, that the liability of Maker for
loss, costs or damage arising out of the matters described in the subsections
below (collectively, "NON-RECOURSE CARVEOUT OBLIGATIONS") shall not be limited
solely to the Mortgaged Property and other collateral now or hereafter given to
secure this Note but shall include all of the assets, properties and funds of
Maker: (i) fraud, misrepresentation and waste, (ii) any rents, issues or profits
collected more than one (1) month in advance of their due dates to the extent
such sums remain collected more than one month in advance of their due dates
following an Event of Default, (iii) any misapplication of rents, issues or
profits, security deposits and any other payments from tenants or occupants
(including, without limitation, lease termination fees), insurance proceeds,
condemnation awards or other sums of a similar nature to the extent such
misapplication continues following an Event of Default, (iv) liability under
environmental covenants, conditions and indemnities contained in the Mortgage
and in any separate environmental indemnity agreements, (v) personalty or
fixtures removed or allowed to be removed by or on behalf of Maker and not
replaced by items of equal or greater value or functionality than the personalty
or fixtures so removed, (vi) failure to pay taxes, assessments or ground rents
prior to delinquency, or to pay charges for labor, materials or other charges
which can create liens on any portion of the Mortgaged Property and any sums
expended by Payee in the performance of or compliance with the obligations of
Maker under the Loan Documents, including, without limitation, sums expended to
pay taxes or assessments or hazard insurance premiums or bills for utilities or
other services or products for the benefit of the Mortgaged Property, (vii) the
unauthorized sale, conveyance or transfer of title to the Mortgaged Property or
encumbrance of the Mortgaged Property, including without limitation liabilities
for any loss, cost or damage arising in connection with any subdivision, zoning,
setback, parking, access or tax parcel issues occurring or related to any act or
omission of Maker in connection with the sale or transfer, or the proposed sale
or transfer, of any portion of the Mortgaged Property, or any foreclosure of the
Mortgage or related sale of the then entirety of the Mortgaged Property in
connection with such foreclosure (and only the then entirety of the Mortgaged
Property, it being understood and agreed by Maker and Payee that Maker shall not
be liable for any Non-Recourse Carveout Obligations arising under this
subsection (vii) to the extent that the same arise from Payee's election to
foreclose or exercise any right of sale with respect to less than the entirety
of the Mortgaged Property as is then encumbered by the Mortgage at the time of
such sale) in connection therewith, which gives rise to a claim by either GMRI,
Inc., Comerica Bank or Max & Erma's Restaurants, Inc. (or any of their
respective successors and assigns) under their respective leases of portions of
the Mortgaged Property [which leases are dated April 28, 2003, October 3, 2002
(as amended March 31, 2003), and September 19, 2001, respectively], to the
effect that -- as a result of such sale or transfer or proposed sale or transfer
-- any such tenant or its successor or assign has the right to exercise the
right of first refusal granted in such party's lease to purchase the premises
demised to it pursuant to such lease (provided, Maker's liability hereunder with
respect to the exercise of any right of first refusal by a tenant under the
aforementioned leases shall cease, with respect to each such

                                       -7-
<Page>

                                                                LOAN NO. 6518370

lease, as of the date on which Payee receives a fully-executed subordination,
non-disturbance and attornment agreement from the tenant under such lease in
form and substance satisfactory to Payee in its sole discretion), (viii) the
failure of Maker to maintain its status as a single purpose, bankruptcy-remote
entity pursuant to its organizational documents and the Loan Documents, and (ix)
reasonable attorney's fees, court costs and other expenses incurred by Payee in
connection with enforcement of Maker's personal liability as set forth herein.
Nothing herein shall be deemed (w) to be a waiver of any right which Payee may
have under any bankruptcy law of the United States or the state where the
Mortgaged Property is located including, but not limited to, Section 506(a),
506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a
claim for the full amount of the indebtedness secured by the Mortgage or to
require that all collateral securing the indebtedness secured hereby shall
continue to secure all of the indebtedness owing to Payee in accordance with
this Note, the Mortgage and the other Loan Documents; (x) to impair the validity
of the indebtedness secured by the Mortgage; (y) to impair the right of Payee as
mortgagee or secured party to commence an action to foreclose any lien or
security interest; or (z) to modify, diminish or discharge the liability of any
guarantor under any guaranty or of any indemnitor under any indemnity agreement.

            This Note shall be governed and construed in accordance with the
laws of the State of Michigan and the applicable laws of the United States of
America.

             [The Balance of this Page is Left Intentionally Blank]

                                       -8-
<Page>

                                                                LOAN NO. 6518370

            IN WITNESS WHEREOF, Maker has duly executed and delivered this Note
under seal the day and year first above written.

                              INLAND WESTERN LANSING EASTWOOD,
                              L.L.C., a Delaware limited liability company

                              By:  Inland Western Lansing Eastwood SPE,
                                   L.L.C., a Delaware limited liability company,
                                   its Sole Member

                                   By:  Inland Western Retail Real Estate Trust,
                                        Inc., a Maryland corporation, its Sole
                                        Member

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

                                       -8-

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