Document:

EXHIBIT 4.2

SHARE REPURCHASE PROGRAM

The Board of Directors (the “Board”) of Inland
American Real Estate Trust, Inc., a Maryland corporation (the “Company”), has
adopted this Share Repurchase Program (this “Repurchase Program”) to permit and
authorize the Company to repurchase shares of its common stock, par value
$0.001 per share (the “Shares”), from its stockholders, in all cases subject to
the terms, conditions and limitations set forth herein.  The effective date of this Repurchase Program
is August 31, 2005.

1.             Repurchase Price.

(a)           The Company is
authorized to repurchase Shares from its stockholders at the following prices
per Share:

(i)                                     if
the Shares are beneficially owned by the requesting stockholder continuously for
at least one (1) year, the repurchase price shall be equal to $9.25 per Share;

(ii)                                  if
the Shares are beneficially owned by the requesting stockholder continuously
for at least two (2) years, the repurchase price shall be equal to $9.50 per
Share;

(iii)                               if
the Shares are beneficially owned by the requesting stockholder continuously
for at least three (3) years, the repurchase price shall be equal to $9.75 per
Share; or

(iv)                              if
the Shares are beneficially owned by the requesting stockholder continuously
for at least four (4) years, the repurchase price per Share shall be determined
by the Board in its sole and absolute discretion, but in no event less than
$10.00 per Share.

(b)           Notwithstanding Section
1(a) above, during periods when the Company is engaged in a public offering
of its Shares, the repurchase price per Share under this Repurchase Program shall
be less than the per share price of the Shares offered in the public offering.

2.             Treatment of Repurchased Shares.  All Shares repurchased by the Company
pursuant to this Repurchase Program shall be canceled and shall have the status
of authorized but unissued shares.  The
Company shall not reissue any Shares repurchased by it pursuant to this Repurchase
Program unless those Shares are first registered with the Securities and
Exchange Commission under the Securities Act of 1933, as amended, and under
appropriate state securities laws or otherwise issued in compliance with these
laws.

 

3.             Time of Repurchase; Funding;
Repurchase Limitations.

(a)           Time of
Repurchase.  Except as otherwise
provided from time to time by the Board, the Company shall make repurchases of
Shares under this Repurchase
Program on or about the last business day of each calendar month.  As soon as reasonably practicable following
the date of each monthly repurchase hereunder, the Company shall send to the applicable
stockholder all cash proceeds resulting from the repurchase of the stockholder’s
Shares.

(b)           Funding.  The Company is authorized, for the purpose of
repurchasing Shares under this Repurchase Program in a particular calendar
month, to use (i) offering proceeds from any public offerings of its Shares, (ii)
proceeds from its Distribution Reinvestment Plan (“Reinvestment Plan”) or (iii)
any operating funds that the Board in its sole discretion may reserve for this
purpose (collectively, the “Available Funds”).

(c)           Excess Available
Funds.  In any calendar month, if the
aggregate amount of Available Funds exceeds the aggregate amount needed to
repurchase all Shares for which repurchase requests have been received by the Company,
the Company may, but shall not be obligated to, carry over the excess amount of
Available Funds to a subsequent calendar month(s) for use in addition to the
amount of Available Funds otherwise available for repurchases during that
subsequent calendar month(s).

(d)           Insufficient
Available Funds; Other Limitations. 
The Company cannot guarantee that it will be able to repurchase all
Shares for which a repurchase request is received.  In any calendar month, if the aggregate amount
of Available Funds (including any excess amount carried over pursuant to Section
3(c) above) is less than the aggregate amount needed to repurchase all
Shares for which repurchase requests have been received by the Company, the
Company shall repurchase Shares on a pro
rata basis up to, but not in excess of, the aggregate amount of
Available Funds (including any excess amount carried over pursuant to Section
3(c) above).  In any calendar month,
if repurchasing all Shares for which repurchase requests have been received by
the Company would exceed the Aggregate Number of Shares Limit (as defined
below), the Company shall, to the extent it has Available Funds (including any
excess amount carried over pursuant to Section 3(c) above), repurchase
Shares on a pro rata basis up to,
but not in excess of, the Aggregate Number of Shares Limit.  Any stockholder whose repurchase request has
been partially accepted by the Company in a particular calendar month shall
have the remainder of his or her request included with all new repurchase requests
received by the Company in the immediately following calendar month.

(e)           Percentage
Limitation.  Notwithstanding anything
to the contrary herein, at no time during any consecutive twelve (12) calendar month
period shall the number of Shares repurchased by the Company under this Repurchase Program exceed five percent
(5.0%) of the number of outstanding Shares at the beginning of the twelve (12) calendar
month period (the “Aggregate Number of Shares Limit”).

(f)            Ineffective
Withdrawal.  In the event the Company
receives a written notice of withdrawal, as described in Section 4(e)
below, from a stockholder after the 

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Company has repurchased
all or a portion of the stockholder’s Shares, the notice of withdrawal shall
not be effective with respect to the Shares repurchased, but shall be effective
with respect to any of that stockholder’s Shares not repurchased.  The Company shall provide the stockholder
with prompt written notice of the ineffectiveness or partial ineffectiveness of
the written notice of withdrawal.

4.             Stockholder Requirements.

(a)           General.  Any stockholder may elect to participate in
the Repurchase Program with respect to all or a designated portion of the stockholder’s
whole Shares; provided, however, Shares must be beneficially owned
by the presenting stockholder continuously for at least one (1) year to be
eligible for repurchase by the Company under this Repurchase Program.  If a stockholder dies prior to beneficially owning
Shares for at least one (1) year, the Board may, in its sole discretion, waive
the holding period for the stockholder’s beneficiaries or heirs, as applicable.  Fractional Shares, if any, shall not be
accepted by the Company for repurchase under this Repurchase Program.

(b)           Written Requests.
 A stockholder may request that the
Company repurchase the stockholder’s Shares by submitting a written repurchase request
to:  Ms. Roberta S. Matlin, Vice
President of Administration, Inland American Real Estate Trust, Inc., 2901
Butterfield Road, Oak Brook, Illinois 60523. 
The written repurchase request must state the name of the person/entity
who beneficially owns the Shares, the date of purchase of the Shares and the
number of Shares requested to be repurchased. 
Written repurchase requests will be accepted by the Company on a calendar
month basis, subject to the terms, conditions and other limitations set forth
in this Repurchase
Program.  To be effective in a
particular calendar month, the Company must receive a stockholder’s written
repurchase request prior to the date that the Company repurchases Shares in
that calendar month.  No written
repurchase request shall be given preference over any other written repurchase
request.

(c)           Assignment Form.
 As soon as reasonably practicable
following receipt of a written repurchase request, the Company shall send an
assignment form to the applicable stockholder. 
The assignment form must be properly executed by the beneficial owner of
the Shares and returned to the Company before the Company may repurchase any
Shares.

(d)           No Encumbrances.  All Shares requested to be repurchased under
this Repurchase Program must be (i) beneficially owned by the stockholder(s) of
record making the presentment, or the party presenting the Shares must be
authorized to do so by the owner(s) of record of the Shares, and (ii) fully
transferable and not be subject to any liens or other encumbrances.  In certain cases, the Company may ask the
requesting stockholder to provide evidence satisfactory to the Company, in its
sole discretion, that the Shares requested for repurchase are free from liens
and other encumbrances.  If the Company
determines that a lien or other encumbrance exists against the Shares, the
Company shall have no obligation to repurchase, and shall not repurchase, any
of the Shares subject to the lien or other encumbrance.

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(e)           Withdrawal of
Written Repurchase Request.  In the
event a stockholder wishes to withdraw his, her or its written repurchase request
to have Shares repurchased under this Repurchase Program, the stockholder shall
provide the Company with a written request of withdrawal.  The Company will not repurchase a stockholder’s
Shares so long as the Company receives the written request of withdrawal prior
to the time payment is sent to the applicable stockholder.

5.             Termination of Repurchase
Program.  This Repurchase Program
shall be suspended or terminated, as the case may be, and the Company shall not
accept Shares for repurchase upon the occurrence of any of the following:

(a)           This Repurchase
Program shall immediately terminate, without further action by the Board or any
notice to the Company’s stockholders, in the event the Shares are listed on any
national securities exchange, or are subject to bona fide quotes on any inter-dealer quotation system or
electronic communications network, or are subject to bona fide quotes in the pink sheets; or

(b)           Subject to complying
with the notice provisions set forth in Section 7(a) below, this
Repurchase Program may be suspended or terminated in the event the Board
determines that it is in the best interests of the Company to suspend or
terminate the Repurchase
Program.

6.             Amendment.  Notwithstanding anything to the contrary
herein, this Repurchase Program may be amended, in whole or in part, by the
Board, in its sole discretion, at any time or from time to time.

7.             Miscellaneous.

(a)           Notice.  In the event of any amendment, suspension or
termination of this Repurchase Program pursuant to Section 6 or Section
5(b) hereof, as the case may be, the Company shall provide written notice
to its stockholders at least thirty (30) days prior to the effective date of
the amendment, suspension or termination. 
In addition, the Company shall disclose the amendment, suspension or
termination in a report filed by the Company with the Securities and Exchange
Commission on either Form 8-K, Form 10-Q or Form 10-K, or any successor forms, as
appropriate.

(b)           Liability.  Subject to the limitations contained in the
Company’s articles of incorporation, neither the Company nor the Repurchase
Agent (as defined below) shall have any liability to any stockholder for the
value of the stockholder’s Shares, the repurchase price of the stockholder’s
Shares or for any damages resulting from the stockholder’s presentation of
Shares for repurchase or the repurchase of Shares under this Repurchase Program or from the Company’s
determination not to repurchase Shares under the Repurchase Program, except as a result of the Company’s or the
Repurchase Agent’s negligence, misconduct or violation of applicable law; provided,
however, that nothing contained herein shall constitute a waiver or
limitation of any rights or claims that a stockholder may have under federal or
state securities laws.

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(c)           Taxes.  Stockholders shall have sole responsibility
and liability for the payment of all taxes, assessments and other applicable
obligations resulting from the repurchase of Shares pursuant to this Repurchase
Program and neither the Company nor the Repurchase Agent shall have any such
responsibility or liability.

(d)           Repurchase Agent.
 The Company may appoint a repurchase agent
as the Company’s agent under this Repurchase Program (a “Repurchase Agent”), to effect all repurchases
of Shares and to disburse funds to the respective stockholders in accordance
with the terms, conditions and limitations set forth herein.  The Repurchase Agent shall at all times be a
member in good standing of the National Association of Securities Dealers, Inc.  Initially, the Repurchase Agent shall be Inland
Securities Corporation, a Delaware corporation.

(e)           Administration
and Costs.  The Repurchase Agent
shall perform all recordkeeping and other administrative functions involved in
operating and maintaining the Repurchase Program.  The
Company shall bear all costs involved in organizing, administering and
maintaining the Repurchase Program.

 5EXHIBIT
10.1.1

FORM OF

FIRST AMENDED AND RESTATED

BUSINESS MANAGEMENT AGREEMENT

THIS BUSINESS MANAGEMENT
AGREEMENT (this “Agreement”), dated as of [          ],
2007, 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 and
the Business Manager previously entered into that certain Business Management
Agreement, dated August 31, 2005 (as amended, supplemented or restated from
time to time, the “Original Business Management Agreement”), and it is intended
that this Agreement amend and restate the Original Business Management
Agreement effective as of and for all periods after the date hereof;

WHEREAS, the Company has
been qualified to be taxed as a REIT (as defined in Section 1 below)
commencing with the tax year ending December 31, 2005 and has made, and intends
to continue 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 continue 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 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 purchase 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.

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“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.

“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.

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“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;

(b)           does not serve as a director for more
than two other REITs organized by the Sponsor or advised by the Business
Manager or any of its Affiliates; 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.

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“Offering”
means the first follow-on public offering of Shares on a “best efforts” basis
pursuant to the Prospectus dated [          ],
2007, as amended and supplemented from time to time.

“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, 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 any of Inland American Retail Management LLC, Inland American
Office Management LLC, Inland American Industrial Management LLC or Inland
American Apartment Management LLC, each a Delaware limited liability company,
and any of their 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 from time to time.

“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:

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(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
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;

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(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).

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;

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(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;

(f)            cooperate
with the Property Managers 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 applicable 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;

 8
 

 

(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

(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 

 9
 

 

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.

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 per
share at the greater of (i) the per share offering price of common stock in the
Company’s most recent public offering; (ii) if applicable, the per share price
ascribed to shares of common stock used in the Company’s most recent
Acquisition of a Real Estate Operating Company; and (iii) $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 

 10
 

 

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;

(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 [          ],
2007 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;

 11
 

 

(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;

(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.

 12
 

 

(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.

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.

 13
 

 

(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 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 Managers 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 Managers 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 Managers.  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 Managers.  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 Managers 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 any 

 14
 

 

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 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 

 15
 

 

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 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 one
year 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 without cause or penalty 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.

 16
 

 

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 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.

 17
 

 

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.

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 negligence or misconduct on the part of
the Indemnitee; and

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

(b)           The
Company shall not indemnify any person 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

 18
 

 

(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:

(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.

 19
 

 

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.

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

 

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:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]