Document:

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                                                                  Exhibit 10.279

                               EARN OUT AGREEMENT

       This EARN OUT AGREEMENT ("Agreement") is by and between INLAND WESTERN
EASTON FORKS TOWN DST, a Delaware statutory trust ("Inland") with an address of
2901 Butterfield Road, Oak Brook, Ill. 60523, and FORKS-EASTON, L.L.C., a
Delaware limited liability company ("FE") with an address of c/o Wargo
Properties, Inc., 682 Twin Bridge Drive, Suite 100, Radnor, Pennsylvania 19087.

                                    RECITALS:

       WHEREAS, FE and Inland Real Estate Acquisition, Inc., ("IREA") entered
into that certain purchase and sale contract dated April 8, 2004, as amended by
that certain Amendment To Contract dated May 16, 2004 and that certain Second
Amendment to Contract dated June 3, 2004 (collectively the "Contract") for the
sale and purchase of the approximately 87,600 net rentable square feet of the
Forks Town Center Shopping Center located on approximately 20.249 acres of land
at Town Center Boulevard, Easton, Pennsylvania (the "Property"); and

       WHEREAS, IREA has assigned all of its interests in the Contract to
Inland; and

       WHEREAS, the parties agree that FE is negotiating the rental of a space
at the Property to the PA Liquor Control Board but the PA Liquor Control Board
has not yet occupied the space and accordingly is not currently paying rent,
CAM, taxes or insurance; and

       WHEREAS, FE and Inland have agreed that at the time of the initial
closing, Inland will not pay the value of the space that will be rented to the
PA Liquor Control Board of Seven Hundred and One Thousand Two Hundred and
Ninety-Nine No/100 ($701,299.00) and that such amount will only be paid
according to the terms and provisions of this Agreement.

       NOW, THEREFORE, for and in consideration of the mutual agreements and
understandings contained in this Agreement, Inland, and FE agree as follows;

       1.     All of the above recitals are incorporated herein by reference as
if fully restated herein as this paragraph 1.

       2.     FE and Inland agree that FE shall have twelve (12) months from the
date of this Agreement to rent the space to the PA Liquor Control Board for a
rental of $4,500.00 per month or annual rent of $54,000.00 which includes
tenant's proportionate share of CAM, taxes and insurance payments. Prior to any
payment to FE, FE shall have paid all costs of tenant improvements and have
provided proof thereof to Inland and shall certify to Inland in writing that the
PA Liquor Control Board is paying the full amount of the above described rent
which includes its proportionate share of CAM, taxes and insurance. Within ten
(10) days of receipt of such written certification and proof of the

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acceptance of the dedication of Town Center Boulevard by Forks Township, Inland
shall pay to FE the sum of Seven Hundred One Thousand Two Hundred and
Ninety-Nine and No/100 ($701,299.00) Dollars as the purchase price for the space
rented to the PA Liquor Control Board. It is understood and agreed that the term
of the lease of the PA Liquor Control Board must be for at least 5 years without
any decrease in the above described rental payments or the tenant's
proportionate share of CAM, taxes and insurance during such period. It is
further agreed that FE shall have the right to rent the space to any other
tenant reasonably acceptable to Inland under the same terms and provisions as
above described for the PA Liquor Control Board Lease.

       In the event that FE has not leased the space pursuant to the above terms
and provisions within one (1) year of the date of this Agreement or if Forks
Township has not accepted the dedication of Town Center Boulevard, then upon
expiration of the one (1) year term of this Agreement, Inland shall no longer
owe FE or any successors or assigns any amounts for the PA Liquor Control Board
space, the terms and provisions of this Agreement shall terminate and neither
party shall owe the other any further duties or obligations thereunder.

       IN WITNESS WHEREOF, Inland and FE have each caused their respective
authorized officers to execute this Agreement this _____ day of ______________,
2004.

                                        INLAND WESTERN EASTON FORKS
                                        TOWN DST, a Delaware statutory trust

                                        By:      /s/ [ILLEGIBLE]
                                           ----------------------------------

                                        Its:     Asst. Secretary
                                            ---------------------------------

                                        FORKS-EASTON, L.L.C., a Delaware limited
                                        liability company

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

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

                                       -2-
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acceptance of the dedication of Town Center Boulevard by Forks Township, Inland
shall pay to FE the sum of Seven Hundred One Thousand Two Hundred and
Ninety-Nine and No/100 ($701,299.00) Dollars as the purchase price for the space
rented to the PA Liquor Control Board. It is understood and agreed that the term
of the lease of the PA Liquor Control Board must be for at least 5 years without
any decrease in the above described rental payments or the tenant's
proportionate share of CAM, taxes and insurance during such period. It is
further agreed that FE shall have the right to rent the space to any other
tenant reasonably acceptable to Inland under the same terms and provisions as
above described for the PA Liquor Control Board Lease.

       In the event that FE has not leased the space pursuant to the above terms
and provisions within one (1) year of the date of this Agreement or if Forks
Township has not accepted the dedication of Town Center Boulevard, then upon
expiration of the one (1) year term of this Agreement, Inland shall no longer
owe FE or any successors or assigns any amounts for the PA Liquor Control Board
space, the terms and provisions of this Agreement shall terminate and neither
party shall owe the other any further duties or obligations thereunder.

       IN WITNESS WHEREOF, Inland and FE have each caused their respective
authorized officers to execute this Agreement this 21 day of July, 2004.

                                        INLAND WESTERN EASTON FORKS
                                        TOWN DST, a Delaware statutory trust

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

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

                                        FORKS-EASTON, L.L.C., a Delaware limited
                                        liability company

                                        By: /s/ [ILLEGIBLE]
                                           ----------------------------------
                                            MANAGING MEMBER OF SULLIVAN TRAIL
                                            ASSOCIATES, LLC, ITS M.M.

                                       -2-
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                                1099 SOLICITATION

CTIC POLICY NUMBER: 1402 020401638 NT

CT&TCo. ESCROW NUMBER: D2 024072907

You are required by law to provide Chicago Title Insurance Company and Chicago
Title and Trust Company with your correct taxpayer identification number. If you
do not provide Chicago Title Insurance Company and Chicago Title and Trust
Company with your correct taxpayer identification number, you may be subject to
civil or criminal penalties imposed by law.

Please provide your name, mailing address, tax identification number and other
requested information in the spaces provided below.

NAME:                     Forks Easton, LLC
                       ------------------------------------------------

NEW MAILING ADDRESS:      682 Twin Bridge Drive, Suite 100
                       ------------------------------------------------
                          Radnor, PA 19087
                       ------------------------------------------------

TAX ID NUMBER:            59-3751481
                       ------------------------------------------------

GROSS PROCEEDS:                                $
                                                 ----------------------

GROSS PROCEEDS ALLOCATED TO TRANSFEROR:        $
                                                 ----------------------

Check the appropriate category or categories:

 / /  Principal Residence

 /X/  Other Real Estate

 / /  Check here if the Transferor received or will receive property or
      services as part of the consideration.

                                  CERTIFICATION

Under penalties of perjury, I certify that the number shown on this statement is
my correct tax identification number.

 /s/ [ILLEGIBLE]                                                 7/21/04
-------------------------------------------------       ------------------------
                 (SIGNATURE)                                     (DATE)

 MANAGING MEMBER OF SULLIVAN TRAIL ASSOCIATES,
 LLC, ITS, M.M.<Page>

                                                                  Exhibit 10.280

                                 PROMISSORY NOTE

$2,920,000.00                                                 New York, New York
                                                                  August 4, 2004

              FOR VALUE RECEIVED, INLAND WESTERN HOUMA ACADEMY, L.L.C., a
Delaware limited liability company having its principal place of business at
2901 Butterfield Road, Oak Brook, Illinois 60523, a maker hereunder (referred to
herein as "BORROWER"), hereby unconditionally promises to pay to the order of
BEAR STEARNS COMMERCIAL MORTGAGE, INC., a New York corporation, as payee, having
an address at 383 Madison Avenue, New York, New York 10179 ("LENDER"), or at
such other place as the holder hereof may from time to time designate in
writing, the principal sum of TWO MILLION NINE HUNDRED TWENTY THOUSAND AND
NO/100 DOLLARS ($2,920,000.00), in lawful money of the United States of America
with interest thereon to be computed from the date of this Note at the Interest
Rate, and to be paid in accordance with the terms of this Note and that certain
Loan Agreement, dated as of the date hereof, between Borrower and Lender (the
"LOAN AGREEMENT"). All capitalized terms not defined herein shall have the
respective meanings set forth in the Loan Agreement.

                                    ARTICLE 1

                                  PAYMENT TERMS

              Borrower agrees to pay interest on the unpaid principal sum of
this Note from time to time outstanding at the rates and at the times specified
in the Loan Agreement and the outstanding balance of the principal sum of this
Note and all accrued and unpaid interest thereon shall be due and payable on the
Maturity Date. This Note shall be the "Note" as defined in the Loan Agreement.

                                    ARTICLE 2

                            DEFAULT AND ACCELERATION

              The Debt shall without notice become immediately due and payable
at the option of Lender if any payment required in this Note is not paid on or
prior to the date when due or if not paid on the Maturity Date or on the
happening of any other Event of Default.

                                    ARTICLE 3

                                 LOAN DOCUMENTS

              This Note is secured by the Mortgage and the other Loan Documents.
All of the terms, covenants and conditions contained in the Loan Agreement, 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. In
the event of a conflict or inconsistency between the terms of this Note and the
Loan Agreement, the terms and provisions of the Loan Agreement shall govern.

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                                    ARTICLE 4

                                 SAVINGS CLAUSE

              Notwithstanding anything to the contrary, (a) all agreements and
communications between Borrower and Lender are hereby and shall automatically be
limited so that, after taking into account all amounts deemed interest, the
interest contracted for, charged or received by Lender shall never exceed the
maximum lawful rate or amount, (b) in calculating whether any interest exceeds
the lawful maximum, all such interest shall be amortized, prorated, allocated
and spread over the full amount and term of all principal indebtedness of
Borrower to Lender, and (c) if through any contingency or event, Lender receives
or is deemed to receive interest in excess of the lawful maximum, any such
excess shall be deemed to have been applied toward payment of the principal of
any and all then outstanding indebtedness of Borrower to Lender, or if there is
no such indebtedness, shall immediately be returned to Borrower.

                                    ARTICLE 5

                                 NO ORAL CHANGE

              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
Borrower or Lender, 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.

                                    ARTICLE 6

                                     WAIVERS

              Borrower 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, notice of intention to accelerate, notice of
acceleration, protest and notice of protest and nonpayment and all other notices
of any kind. 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 Loan Agreement or the other Loan
Documents made by agreement between Lender or any other Person shall release,
modify, amend, waive, extend, change, discharge, terminate or affect the
liability of Borrower, and any other Person who may become liable for the
payment of all or any part of the Debt, under this Note, the Loan Agreement or
the other Loan Documents. No notice to or demand on Borrower shall be deemed to
be a waiver of the obligation of Borrower or of the right of Lender to take
further action without further notice or demand as provided for in this Note,
the Loan Agreement or the other Loan Documents. If Borrower is a partnership,
the agreements herein contained shall remain in force and applicable,
notwithstanding any changes in the individuals comprising the partnership, and
the term "Borrower," as used herein, shall include any alternate or successor
partnership, but any predecessor partnership and their partners shall not
thereby be released from any liability. If Borrower is a limited liability
company, the agreements herein contained shall remain in force and applicable,
notwithstanding any changes in the members comprising the company, and the term
"Borrower," as used herein, shall include any alternate or successor company,
but any

                                        2
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predecessor company shall not thereby be released from any liability. If
Borrower is a corporation, the agreements contained herein shall remain in full
force and applicable notwithstanding any changes in the shareholders comprising,
or the officers and directors relating to, the corporation, and the term
"Borrower" as used herein, shall include any alternative or successor
corporation, but any predecessor corporation shall not be relieved of liability
hereunder. (Nothing in the foregoing sentence shall be construed as a consent
to, or a waiver of, any prohibition or restriction on transfers of interests in
such entity which may be set forth in the Loan Agreement, the Mortgage or any
other Loan Document.)

                                    ARTICLE 7

                                    TRANSFER

              Upon the transfer of this Note, Borrower hereby waiving notice of
any such transfer except as provided in the Loan Agreement, Lender may deliver
all the collateral mortgaged, granted, pledged or assigned pursuant to the Loan
Documents, or any part thereof, to the transferee who shall thereupon become
vested with all the rights herein or under applicable law given to Lender with
respect thereto, and Lender shall from that date forward forever be relieved and
fully discharged from any liability or responsibility in the matter; but Lender
shall retain all rights hereby given to it with respect to any liabilities and
the collateral not so transferred.

                                    ARTICLE 8

                                   EXCULPATION

              The provisions of Section 9.4 of the Loan Agreement are hereby
incorporated by reference into this Note to the same extent and with the same
force as if fully set forth herein.

                                    ARTICLE 9

                                  GOVERNING LAW

              THIS NOTE SHALL BE DEEMED TO BE A CONTRACT ENTERED INTO PURSUANT
TO THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED AND SHALL IN ALL
RESPECTS BE GOVERNED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE IN WHICH THE PROPERTY IS LOCATED AND APPLICABLE FEDERAL LAWS.

                                   ARTICLE 10

                                     NOTICES

              All notices or other written communications hereunder shall be
delivered in accordance with Section 10.6 of the Loan Agreement.

                         [NO FURTHER TEXT ON THIS PAGE]

                                        3
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              IN WITNESS WHEREOF, Borrower has duly executed this Note as of the
day and year first above written.

                                   BORROWER:

                                   INLAND WESTERN HOUMA ACADEMY,
                                   L.L.C., a Delaware limited liability company

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

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

                                        4
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                                 ACKNOWLEDGMENT

STATE OF ILLINOIS

COUNTY OF DUPAGE

              The foregoing instrument was acknowledged before me this 2nd day
of August, 2004 by Debra A. Palmer as Assistant Secretary of INLAND WESTERN
RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, which is the sole member
and manager of INLAND WESTERN HOUMA ACADEMY, L.L.C., a Delaware limited
liability company, who executed the foregoing instrument, and acknowledged the
execution thereof to be her free act and deed as such officer on behalf of
said corporation in its capacity as sole member and manager of said limited
liability company for the use and purposes therein mentioned, and the said
instrument is the act and deed of said corporation and limited liability
company. She is personally known to me.

              My commission expires: 10/18/07

[Notarial Seal]                            /s/ Mary V. Cooper
                                        ------------------------
                                        Print Name: MARY V. COOPER
                                        Notary Public
                                        Serial Number:
                                                      ---------------

                                                OFFICIAL SEAL
                                                MARY V COOPER
                                         NOTARY PUBIC - STATE OF ILLINOIS
                                        MY COMMISSION EXPIRES: 10/18/07

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