Document:

Exhibit 10.2

 

TIGI LETTER AGREEMENT

August 14, 2007

 

Inland Western Retail Real
Estate Trust, Inc.

c/o Special Committee of the Board of Directors

2901 Butterfield Road

Oak Brook, Illinois 60523

Re:          Agreement and Plan of Merger

Ladies
and Gentlemen:

Reference is made to that
certain Agreement and Plan of Merger dated as of the date hereof by and among
Inland Western Retail Real Estate Trust, Inc. (“IWEST”), IWEST
Acquisition 1, Inc., IWEST Acquisition 2, Inc., IWEST Acquisition 3, Inc.,
IWEST Acquisition 4, Inc., Inland Western Retail Real Estate Advisory Services,
Inc., Inland Southwest Management Corp., Inland Northwest Management Corp., and
Inland Western Management Corp., Inland Real Estate Investment Corporation, and
IWEST Merger Agent LLC, as the same may be amended, restated, modified or
supplemented (the “Merger Agreement”). 
Capitalized terms used herein without definition shall have the meanings
assigned thereto in the Merger Agreement.

WHEREAS, The Inland
Group, Inc. (“TIGI”) and IWEST are entering into this letter agreement
(the “Letter Agreement”) to set forth certain obligations not set forth
in the Merger Agreement.

WHEREAS, absent the
execution of this Letter Agreement, IWEST would not enter into the Merger
Agreement.

NOW THEREFORE, in consideration
of the foregoing and the agreements contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

I.              Representations and Warranties;
Covenants and Agreements.

1.             TIGI Covenants and Agreements.

(a)           TIGI agrees to perform all of its
actions and obligations set forth in Sections 6.1, 6.8, and 6.9
of the Merger Agreement as if it were a party thereto.

(b)           TIGI covenants for itself and its
Affiliates to perform all actions and obligations to be performed under Sections
6.1 and 6.13 of the Merger Agreement as if it were a party thereto.

 

2.             TIGI Representations and Warranties.

(a)           TIGI is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization. TIGI is qualified to do business and is in good standing in each
jurisdiction in which the properties owned, leased or operated by it or the
nature of the business conducted by it make such qualification necessary,
except where the failure to be so qualified and in good standing would not
reasonably, individually or in the aggregate, be expected to have a material
adverse effect on the transactions contemplated by the Merger Agreement.

(b)           TIGI has the requisite corporate
power and authority to enter into this Letter Agreement to consummate the
transactions contemplated hereby.  The
execution and delivery by TIGI of this Letter Agreement, and the consummation
by TIGI of the transactions contemplated hereby, have been duly authorized by
all necessary corporate action  and
no other proceedings on the part of TIGI or any stockholder is necessary to
authorize the execution and delivery of this Letter Agreement or to consummate
the transactions contemplated hereby. 
This Letter Agreement has been duly and validly executed and delivered
by TIGI, and, assuming the due authorization, execution and delivery hereof by
the other party hereto, constitutes a valid and binding agreement of TIGI
enforceable against TIGI in accordance with its terms, except that such
enforcement may be subject to (i) bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting or relating to enforcement of
creditors’ rights generally and (ii) general equitable principles.

(c)           The execution and delivery by TIGI of
this Letter Agreement does not and will not, and the consummation by TIGI of
this Letter Agreement will not, violate, conflict with or result in a breach of
any provision of, or constitute a default (or an event which, with notice or
lapse of time or both, would constitute a default) under, or result in the
termination of, or accelerate the performance required by, or result in a right
of termination or acceleration under, or result in the creation of any lien
upon any of the assets of TIGI under any of the terms, conditions or provisions
of (i) the organizational documents of TIGI, (ii) any law applicable to any of
its assets or properties, or (iii) any contract to which TIGI is a party or by
which TIGI or its assets or properties may be bound, except as to each of (i),
(ii) and (iii) to the extent that such breach or default would not reasonably
be expected to have a material adverse effect on the transactions contemplated
by the Merger Agreement.

(d)           No declaration, filing or
registration with, or notice to, or authorization, consent or approval of, any
governmental authority or any other person is necessary for the execution and
delivery by TIGI of this Letter Agreement or the consummation by TIGI of the
transactions contemplated hereby.

II.            Miscellaneous.

1.             Amendments and Waivers.  The provisions of this Letter Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented and the obligations hereunder may not be waived, unless such amendment,
modification, supplement or waiver is in writing and signed by all of the
parties hereto.  No waiver of any term,
condition or provision shall operate as a waiver of any other term, condition
or provision of this Agreement, 

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and
no waiver of any term, condition or provision shall operate as a continuing
waiver, except to the extent specifically stated in such waiver.

2.             Notices.  All notices and other communications under
this Letter Agreement shall be made in accordance with Section 10.1 of
the Merger Agreement.  Notices and other
communications under this Letter Agreement shall be addressed to TIGI as
follows:

	
  

  	
   

  	
   

  
	
   

  	
   

  	
  The Inland Group, Inc.

  
	
   

  	
   

  	
  500 North Rainbow Boulevard, Suite 300

  
	
   

  	
   

  	
  Las Vegas, Nevada 89107

  
	
   

  	
   

  	
  Attention: Robert H. Baum

  
	
   

  	
   

  	
  Fax: (702) 221-2079

  
	
   

  	
   

  	
   

  
	
  with copies (which shall not constitute notice) to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Inland Real Estate Group, Inc.

  
	
   

  	
   

  	
  2901 Butterfield Road

  
	
   

  	
   

  	
  Oak Brook, Illinois 60523

  
	
   

  	
   

  	
  Attention: Elliot B. Kamenear

  
	
   

  	
   

  	
  Fax: (630) 218-4900

  
	
   

  	
   

  	
   

  
	
  and:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jenner & Block LLP

  
	
   

  	
   

  	
  330 North Wabash Avenue

  
	
   

  	
   

  	
  Chicago, Illinois 60611

  
	
   

  	
   

  	
  Attention: Arnold S. Harrison

  
	
   

  	
   

  	
  Fax: (312) 923-2702

  
	
   

  	
   

  	
   

  

3.             Successors and Assigns.  This Letter Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties
hereto and their successors and permitted assigns, but neither this Letter
Agreement nor any of the rights, interests and obligations hereunder shall be
assigned by any party hereto without the prior written consent of all other
parties hereto.

4.             No Presumption Against Drafter.  Each of the parties hereto has jointly
participated in the negotiation and drafting of this Letter Agreement.  In the event of an ambiguity or a question of
intent or interpretation arises, this Letter Agreement shall be construed as if
drafted jointly by each of the parties hereto, and no presumptions or burdens
of proof shall arise favoring any party by virtue of the authorship of any of
the provisions of this Letter Agreement.

5.             Headings. 
The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

6.             Governing Law. 
This Letter Agreement shall be governed by and construed in accordance
with the internal laws of the State of Illinois without reference to its
conflicts of law provisions.

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7.             Arbitration. 
All disputes and claims under this Letter Agreement among the parties to
this Letter Agreement shall be resolved in accordance with Section 10.4
of the Merger Agreement. Each party hereto hereby waives any right it may
otherwise have to a resolution of any dispute or claim by any means other than
as provided for in Section 10.4 of the Merger Agreement.

8.             Severability. 
In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance is held invalid, illegal or
unenforceable, the validity, legality and enforceability of any other
provisions contained herein shall not be affected or impaired thereby.

9.             Entire Agreement. 
This Letter Agreement and the Merger Agreement referred to herein
contain the entire understanding of the parties hereto with regard to the
subject matter contained herein or therein, and supersede all other prior
agreements, understandings or letters of intent between or among the parties
hereto.

10.           Counterparts. 
This Letter Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

[Signature Page Follows]

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IN WITNESS WHEREOF,
the parties hereto have caused this Letter Agreement to be signed by their
respective officers or agents thereunto duly authorized as of the date first
written above.

	
  

  	
   

  	
  THE INLAND GROUP, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Mark Youngman

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INLAND WESTERN RETAIL REAL ESTATE 

  TRUST, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Steven P. Grimes

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Principal Financial Officer

  

 

 5Exhibit
10.3

FORM OF CONSULTING AGREEMENT

THIS CONSULTING AGREEMENT (this “Agreement”) is made
as of this     day of              ,
2007, by and between INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland
corporation (“IWEST”), and                                     
(the “Consultant”).

RECITALS:

A.            IWEST
is a real estate investment trust which owns, operates and acquires a
diversified portfolio of real estate, primarily multi-tenant shopping centers
and single-user net lease properties (the “Business”).

B.            IWEST,
IWEST Acquisition 1, Inc., IWEST Acquisition 2, Inc., IWEST Acquisition 3,
Inc., IWEST Acquisition 4, Inc., Inland Western Retail Real Estate Advisory
Services, Inc. (the “Advisor”), Inland Southwest Management Corp. (“Southwest”),
Inland Northwest Management Corp. (“Northwest”), Inland Western Management
Corp. (“Western”), Inland Real Estate Investment Corporation, and IWEST Merger
Agent, LLC, in its capacity as agent for certain stockholders, have entered
into that certain Agreement and Plan of Merger, dated as of                   
    , 2007 (the “Merger Agreement”), pursuant to which the
Advisor, Southwest, Northwest and Western will each become a wholly-owned
subsidiary of IWEST and/or its Affiliates (as defined herein) (collectively, the
“Mergers”).

C.            Consultant,
as an officer of an Affiliate of the Advisor has obtained certain unique and
particular talents and abilities with regard to the Business and will provide
IWEST with strategic and operational assistance for the Engagement Term (as
defined herein), including, without limitation making recommendations and
providing guidance to IWEST as to prospective investment, financing,
acquisition, disposition, development, joint venture and other real estate
opportunities contemplated from time to time by IWEST and the Board of
Directors (collectively, the “Consulting Services”).  For purposes herein, the term (i) “Affiliate”
means a person that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the person
specified and (ii) “control” or any similar term means the possession, direct
or indirect, of the power to direct or cause the direction of the management
and policies of a person, whether through the ownership of voting shares, by
contract or otherwise.

D.            The
Consultant will receive benefits from consummating the Mergers as a shareholder
of one or more of the Advisor, Southwest, Northwest and Western.

E.             IWEST
and the Consultant are entering into this Agreement concurrently with the
execution of the Merger Agreement, subject to the terms, conditions and
covenants hereinafter set forth.  Terms
not otherwise defined herein shall have the meaning ascribed to the term in the
Merger Agreement.

NOW, THEREFORE, in consideration of the foregoing and
the agreements, covenants and conditions set forth herein, the receipt and
sufficiency of which is hereby acknowledged, the Consultant and IWEST hereby
agree as follows:

 

ARTICLE I

1.1           ENGAGEMENT. 
IWEST hereby engages Consultant on a non-exclusive basis, and Consultant
hereby accepts such engagement upon the terms and conditions hereinafter set
forth.  Upon reasonable prior notice to
Consultant, the Consultant shall use his commercially reasonable efforts to
provide IWEST with the Consulting Services at the Chief Executive Officer of
IWEST’s or IWEST’s Board’s request.  At
the Chief Executive Officer of IWEST’s or its Board’s request, Consultant shall
use commercially reasonable efforts to attend meetings of senior management of
IWEST with respect to the near and long-term operations of IWEST and its
Affiliates.  Consultant shall also
provide such additional services as may be reasonably requested from time to
time by the Board, consistent with the services provided to IWEST or any Service
Provider prior to the date of this Agreement by Consultant, other than those
services that are contemplated to be provided pursuant to the Services
Agreements (as defined in the Merger Agreement) as of the date of this
Agreement.  The Consulting Services to be
provided hereunder require Consultant to attend, at the Chief Executive Officer
of IWEST’s or its Board of Directors’ request, certain meetings of the Board of
Directors or management team of IWEST of the kind and nature attended by
Consultant prior to the date of this Agreement (i.e., Board of Directors
meetings, management committee meetings, audit committee meetings and
acquisition committee meetings). 
Consultant acknowledges the Consulting Services are in addition to, and
in no way limit, Consultant’s duties, as applicable, to IWEST as a director of
IWEST but nothing in this Agreement shall have the effect of expanding the
scope of fiduciary duties that Consultant may owe IWEST under applicable
law.  IWEST acknowledges that Consultant
is providing the Consulting Services solely in his capacity as a consultant and
not as a director, if applicable, and that, with respect to Consulting
Services, Consultant’s status shall be that of an independent contractor, and
not that of an agent or employee of IWEST. 
Consultant shall not hold himself out as, nor claim to be acting as, an
employee or agent of IWEST solely as a result of providing the Consulting
Services.  Consultant is not authorized
to, and shall not, make or undertake any agreement, understanding, waiver or
representation on behalf of IWEST in his capacity as Consultant, except as may
be provided in a separate Ancillary Agreement.

1.2           ACTIVITIES AND
DUTIES DURING ENGAGEMENT.  Consultant
represents and warrants to IWEST that he is able to accept engagement by IWEST
as Consultant; provided, however, that Consultant and IWEST acknowledge and
agree that Consultant will devote a limited amount of time to his duties
hereunder, and nothing contained herein shall restrict Consultant from being
employed by or accepting employment, consulting arrangements or other positions
with IWEST or other businesses, including businesses that may compete with the
business conducted by IWEST, provided that such activities do not violate
Article IV hereof.

ARTICLE II

2.1           TERM.

(a)           Unless terminated earlier in
accordance with Section 2.1(b) or Section 2.1(c) hereof, the term of this
Agreement shall automatically commence on the Closing Date (as defined in the
Merger Agreement) (but only upon the Closing Date) hereof and shall last for a
period of three (3) years (such period being hereinafter referred to as the “Term”).  Notwithstanding the foregoing, IWEST may
terminate this Agreement at any 

 

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time, with or
without cause (the Term, as it may be extended or terminated pursuant to this
Article II, is herein referred to as the “Engagement Term”).

(b)           The Consultant shall have the option,
but not the obligation, to terminate the Engagement Term upon the occurrence of
any of the following events:

(i)                                     Disability
of Consultant.  For purposes of this
Agreement, the term “disability” (or any similar term) shall mean any bodily
injury, disease, illness, or emotional or nervous disorder that prevents the
Consultant from performing any or all Consulting Services for a period of at
least thirty (30) consecutive days;

(ii)                                  The
failure of IWEST to perform its obligations provided herein and the continuance
of such failure for a period of thirty (30) consecutive days after receipt by
IWEST from the Consultant of written notice of such failure to perform ; or

(iii)                               The
occurrence of a Change in Control Event (as defined herein).

(c)           This Agreement shall automatically
terminate upon the death of Consultant.

2.2           DEFINITION OF “CHANGE
IN CONTROL EVENT”.

A “Change in Control Event” means the occurrence of
one or more of the following:

(a)           Any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all of the assets of IWEST to any person or group of related
persons for purposes of Section 13(d) of the Securities Exchange Act of 1934,
as amended; provided, however,
that any sale, lease, exchange or transfer to (including, without limitation,
any merger or other business combination with or into) any of the following
shall not constitute a Change in Control Event: 
(i) any Affiliate controlled by IWEST, (ii) Inland Real Estate
Corporation, (iii) Inland American Real Estate Trust, Inc., (iv) The Inland
Group, Inc., or (v) any Affiliate controlled by any of the persons listed in
clauses (i) through (iv) above (all of the entities described in clauses (i)
through (v) above to be hereinafter sometimes referred to as the “Inland
Companies”);

(b)           The approval by the holders of the
outstanding shares of IWEST of any plan or proposal for the liquidation or
dissolution of IWEST;

(c)           Any person or group of related
persons (other than any one or more of the Inland Companies) shall become the
owner, directly or indirectly, beneficially or of record, of shares of IWEST
representing more than twenty-five percent (25%) of the aggregate ordinary
voting power represented by the issued and outstanding common shares of IWEST;
or

(d)           Following any change in the
composition of the board of directors of IWEST, a majority of the board of
directors of IWEST are not either (i) members of the 

 

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board of
directors of IWEST as of the date hereof, or (ii) members of the board of
directors of IWEST whose nomination for election or election to the board of
directors of IWEST has been recommended, approved or ratified by at least
eighty percent (80%) of the board of directors of IWEST then in office who were
either members of the board of directors of IWEST as of the date hereof or
whose election as a member of the board of directors of IWEST was previously so
approved.

2.3           CESSATION OF
RIGHTS AND OBLIGATIONS: SURVIVAL OF CERTAIN PROVISIONS.  On the date of expiration or termination of
the Engagement Term for any reason, all of the respective rights, duties,
obligations and covenants of the parties hereto, as set forth herein, shall,
except as specifically provided herein to the contrary, cease and become of no
further force or effect as of the date of said termination, and shall only
survive as expressly provided for herein.

ARTICLE III

3.1           NO COMPENSATION.  During the Engagement Term, IWEST shall not
pay to Consultant, and Consultant shall not be entitled to receive, any salary
or other compensation for his services provided under this Agreement.

3.2           REIMBURSEMENT OF
EXPENSES.  IWEST shall reimburse
Consultant for all ordinary and necessary out-of-pocket business expenses
incurred by him and in connection with performing Consulting Services at the
request of IWEST or IWEST’s Board hereunder, in the manner and time consistent
with IWEST’s policy governing reimbursement of expenses incurred by employees.

ARTICLE IV

4.1           ASSIGNMENT.  This Agreement or any right or interest
hereunder may not be assigned by either party without the prior written consent
of the other party hereto.  Consultant
shall not, without the prior written consent of IWEST, employ, contract with or
use the services of any third party in connection with the performance of any
of the services to be rendered under this Agreement, or otherwise designate the
responsibility of performance of any services to be rendered under this
Agreement to any third party.  Any
attempted assignment, designation, employment or use in violation of this
Section 4.1 shall be void and of no force or effect.

4.2           NON-DISCLOSURE OF
CONFIDENTIAL INFORMATION.  Consultant
hereby acknowledges and agrees that as a result of his engagement hereunder he
may acquire and use information of a special and unique nature and value
specifically relating to IWEST that is not generally known to the public such
as financial or operating information, business or strategic plans identified
as such, property acquisition memorandums or appraisals, entity valuation or
models, and employee records (all such information being hereinafter referred
to as “Confidential Information”); provided, however, that any information
concerning tenants or prospective tenants of, investors or potential investors,
or members of any broker-dealer group or potential broker-dealer group to, or
of, IWEST shall not constitute “Confidential Information” unless IWEST is
subject to a confidentiality agreement concerning such information.  Consultant further acknowledges and agrees
that the Confidential Information is of great value to IWEST 

 

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and that the
restrictions and agreements contained in this Agreement are reasonably necessary
to protect the Confidential Information and the goodwill of IWEST and its
subsidiaries.  Accordingly, Consultant
hereby covenants and agrees that:

(a)           During the Engagement Term or at any
time thereafter, except to the extent authorized by IWEST or its Affiliates,
Consultant will not, directly or indirectly, divulge to any person, firm,
corporation, limited liability, company or other organization, other than IWEST
or any of its subsidiaries (collectively, “Third Parties”), or use or cause or
authorize any Third Parties to use, any Confidential Information (whether or
not identified by IWEST as confidential), except to the extent required by law
(and then only to the extent required by law and with reasonable prior notice
to IWEST and its Board of Directors of such disclosure); and

(b)           Upon the termination of the
Engagement Term, Consultant shall deliver or cause to be delivered to IWEST any
and all Confidential Information, including drawings, notebooks, keys, data and
other documents and materials belonging to IWEST or its subsidiaries which is
in his possession or under his control relating to IWEST or its subsidiaries,
regardless of the medium upon which it is stored, and will deliver to IWEST
upon such termination of the Engagement Term any other property of IWEST or its
subsidiaries which is in his possession or under his control; provided,
however, that notwithstanding the foregoing, Consultant shall not be required
to deliver or cause to be delivered to IWEST any Confidential Information (i)
in the possession of Consultant received by Consultant in his capacity as a
director of IWEST or (ii) if Consultant is otherwise employed by, or providing
other services directly or indirectly through an affiliate of The Inland Group,
Inc., to IWEST or its subsidiaries.

Nothing contained in this Section 4.2 shall prohibit
or restrict any party from disclosing any information (including Confidential
Information):  (a) the disclosure of which is necessary to comply with
any applicable laws, including, without limitation, federal or state securities
laws, or any exchange listing or similar rules and regulations; (b) the
disclosure of which is ordered pursuant to a subpoena or other order from a
court or governmental body of competent jurisdiction; (c) which is now, or
hereafter is made, generally available to the public other than by disclosure
in violation of this Agreement; (d) which was disclosed to the disclosing
party by a Third Party that the disclosing party, in good faith, believes was
not bound by an obligation of confidentiality; or (e) with respect to which
IWEST has consented to the form and content of any such disclosure.  If any party learns that disclosure of such
information is sought in or by a court or governmental body of competent
jurisdiction or through other means, such party shall (1) give prompt notice to
the other party prior to making such disclosure and allow such other party, at
its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information, (2) reasonably cooperate with
such other party in its efforts to prevent, or obtain a protective order for,
such disclosure, and (3) disclose the minimum amount of information required to
be disclosed.

4.3           REMEDIES.  Consultant hereby acknowledges and agrees
that the Consulting Services to be rendered by him to IWEST hereunder are of a
special and unique nature and that it would be very difficult or impossible to
measure the damages resulting from a breach of this Agreement. Consultant
hereby further acknowledges and agrees that the restrictions herein are 

 

 5
 

 

reasonable and
necessary for the protection of the business and the goodwill of IWEST and its
subsidiaries and that a violation by the Consultant of any such covenant could
cause irreparable damage to IWEST or its subsidiaries.  Consultant therefore agrees that any breach
by him of any of the covenants or provisions of Article IV of this Agreement
shall entitle IWEST or its subsidiaries, in addition to any other remedy
available to them under this Agreement, at law or in equity, to a temporary and
permanent injunction or any other applicable decree of specific performance,
without any bond or security being required thereof, in order to enjoin such
breach.  The parties understand and
intend that each covenant, provision and restriction agreed to in this Article
IV shall be construed as separate and divisible from every other provision and
restriction and that the unenforceability of any one provision or restriction
shall not limit the enforceability, in whole or in part, of any other provision
or restriction and that one or more of all of such provisions or restrictions
may be enforced, in whole or in part, as the circumstances warrant.

ARTICLE V 

MISCELLANEOUS

5.1           NOTICES.  All notices or other communications required
or permitted hereunder shall be in writing and shall be deemed given or
delivered: (i) when delivered personally or by commercial messenger; (ii) one
business day following deposit with a recognized overnight courier service,
provided such deposit occurs prior to the deadline imposed by such service for
overnight delivery; (iii) when transmitted, if sent by facsimile copy, provided
confirmation of receipt is received by sender and such notice is sent by an
additional method provided hereunder, in each case above provided such
communication is addressed to the intended recipient thereof as set forth
below:

	
  

  	
   

  	
  To Consultant at

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  2901 Butterfield Road

  	
   

  
	
   

  	
   

  	
   

  	
  Oak Brook, Illinois 60523

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile: (630) 218-8033

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Jenner & Block LLP

  	
   

  
	
   

  	
   

  	
   

  	
  330 N. Wabash Avenue

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago, IL 60611-7603

  	
   

  
	
   

  	
   

  	
   

  	
  Attn:  Arnold
  S. Harrison

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile: (312) 923-2702

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  To IWEST at:

  	
  Inland Western Retail Real Estate Trust, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
  2901 Butterfield Road

  	
   

  
	
   

  	
   

  	
   

  	
  Oak Brook, Illinois 60523

  	
   

  
	
   

  	
   

  	
   

  	
  Attn:_____________

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile:_____________

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

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  With a copy to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Duane Morris LLP

  	
   

  
	
   

  	
   

  	
   

  	
  227 West Monroe Street

  	
   

  
	
   

  	
   

  	
   

  	
  Suite 3400

  	
   

  
	
   

  	
   

  	
   

  	
  Chicago, Illinois 60606

  	
   

  
	
   

  	
   

  	
   

  	
  Attn:  David
  J. Kaufman

  	
   

  
	
   

  	
   

  	
   

  	
  Facsimile: (312) 499-6701

  	
   

  

 

Any party may change its address for purposes of this
paragraph by giving the other party written notice of the new address in the
manner set forth above.

5.2           ENTIRE
AGREEMENT; AMENDMENTS, ETC.   This Agreement contains the entire
agreement and understanding of the parties hereto, and supersedes all prior
agreements and understandings relating to the subject matter thereof.  No modification, amendment, waiver or
alteration of this Agreement or any provision or term hereof shall in any event
be effective unless the same shall be in writing, executed by both parties
hereto, and any waiver so given shall be effective only in the specific
instance and for the specific purpose for which given.

5.3           SUCCESSORS
AND ASSIGNS.   Subject to the terms and restrictions contained in
Section 4.1 above, this Agreement shall be binding upon, and inure to the
benefit of, and shall be enforceable by, the successors, assignees and
transferees of IWEST and its current or future subsidiaries.

5.4           NO
CONSTRUCTIVE WAIVERS.   No failure or delay on the part of any party
hereto in exercising any right, power or remedy hereunder or pursuant hereto
shall operate as a waiver thereof; nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder or pursuant
thereto.

5.5           SEVERABILITY.   Wherever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law but, if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement.  If any
part of any covenant or other provision in this Agreement is determined by a
court of law to be overly broad thereby making the covenant unenforceable, the
parties hereto agree, and it is their desire, that the court shall substitute a
judicially enforceable limitation in its place, and that as so modified the
covenant shall be binding upon the parties as if originally set forth herein.

5.6           COMPLIANCE
AND HEADINGS.   The headings in this Agreement are intended to be for
convenience and reference only, and shall not define or limit the scope, extent
or intent or otherwise affect the meaning of any portion hereof.

5.7           GOVERNING
LAW.   The parties agree that this Agreement shall be governed by, interpreted
and construed in accordance with the internal laws of the State of Illinois.

 

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5.8           ARBITRATION     All disputes under this Agreement among the parties to this
Agreement which are not resolved within thirty (30) days of a party’s sending
of a notice of dispute with respect thereto (each an “Arbitrated Claim”), shall
be resolved by binding arbitration, and each party hereto hereby waives any
right it may otherwise have to such a resolution of any Arbitrated Claim by any
means other than arbitration pursuant to this Section 5.8.  As a minimum set of rules in the arbitration,
the parties agree as follows:

(a)           The place of the
arbitration shall be Chicago, Illinois. 
The arbitration must be held in the English language in accordance with
the Streamlined Arbitration Rules and Procedures of JAMS in effect on the date
hereof, except as modified by this Agreement. The arbitration shall be governed
by the Illinois Code of Civil Procedure.

(b)           The arbitration will
be held before a single arbitrator selected by (i) IWEST and (ii) the
Consultant.  If the parties in interest
cannot agree on an arbitrator within fourteen (14) days of the delivery of an
Arbitration Demand, JAMS will appoint such arbitrator.  The arbitrator will be knowledgeable
regarding commercial transactions similar in nature to the transactions
contemplated by this Agreement.

(c)           Any party or parties
initiating arbitration (the “Arbitration Claimants”) will give to the other
party or parties (the “Arbitration Respondents”) notice of their intention to
arbitrate (the “Arbitration Demand”). 
The Arbitration Demand will contain a notice regarding the nature of the
claim.  The Arbitration Respondents will
file an answering statement (the “Arbitration Answer”) within fourteen (14)
days after the Arbitration Demand.  The
Arbitration Answer will contain a statement setting forth in reasonable detail
the Arbitration Respondents’ responses and defenses to the Arbitrated
Claim.  If the Arbitration Respondents
assert a counterclaim, (i) the Arbitration Respondents shall send it with the
Arbitration Answer and such counterclaim must include a statement setting forth
in reasonable detail the nature of the counterclaim, the amount involved, if
any, and the remedy sought, and (ii) the Arbitration Claimants will file a
reply statement (the “Arbitration Reply”) as soon as is reasonably practicable,
but in no event later than fourteen (14) days, after the counterclaim. The
Arbitration Reply will contain a statement setting forth in reasonable detail
the Arbitration Claimants’ responses and defenses to the counterclaim.  If no Arbitration Answer or Arbitration Reply
is given within the stated time, the claim or the counterclaim will be assumed
to be denied.  Failure to file an
Arbitration Answer or Arbitration Reply will not operate to delay the
arbitration.

(d)           Unless the parties
to the arbitration agree otherwise, the arbitrator may order depositions only
for good cause and each party to the Arbitrated Claim may make such document
requests and other discovery (other than depositions) as permitted in
accordance with the Streamlined Arbitration Rules and Procedures of JAMS in
effect on the date hereof.

(e)           The arbitration
hearings will be conducted over a period not to exceed thirty (30) days
commencing as of the date of the first hearing. 
The arbitrator shall make a final decision on the Arbitrated Claim
within thirty (30) days of the final hearing. The arbitrator may make such
orders with regard to scheduling, allocation of hearing time, or 

 

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otherwise as he or she deems appropriate to achieve compliance with
these time limitations.  The parties have
included the foregoing provisions limiting the scope and extent of the
arbitration with the intention of providing for prompt, economic and fair
resolution of any dispute submitted to arbitration.

(f)            The Arbitration Claimants, on the
one hand, and the Arbitration Respondents, on the other, will, as an initial
matter, equally bear the costs and fees of the arbitration, if applicable, but
the arbitrator shall award such costs in inverse proportion as the Arbitration
Claimants, on the one hand, and the Arbitration Respondents, on the other, may
prevail on the matters resolved by the arbitrator (based on the variance of
their respective proposed Arbitration Demand, Arbitration Answer and/or
Arbitration Reply, as applicable, from the determination of the arbitrator),
which proportionate allocations shall be determined by the arbitrator at the
time the determination of the arbitrator is rendered on the merits of the
matters submitted.

(g)           The arbitrator shall enter a written
award specifying the basis for his or her decision, including findings of fact
and conclusions of law, the basis for the damages award and a breakdown of the
damages awarded, and the basis for any other remedy.  Any Party dissatisfied with the award may
invoke the JAMS Optional Arbitration Appeal Procedure (based on the rules
therefor in effect at the time of this Agreement).  Such JAMS Optional Arbitration Appeal shall
be limited to whether there are any erroneous conclusions of law, or any
findings of fact not supported by substantial evidence.  The appellate arbitral panel may vacate,
modify, correct, or affirm the award in whole or in any part.  The award (as modified, corrected, or
affirmed by the appellate arbitral panel, or if no such JAMS appeal is taken,
as originally rendered by the arbitrator) will be considered as a final and
binding resolution of the disagreement.

(h)           Any arbitration proceeding will be
conducted on a confidential basis, and any Confidential Material disclosed
during any such proceeding will be kept confidential by the parties to such
proceeding and by the arbitrator.

(i)            The arbitrator’s discretion to
fashion remedies hereunder will be no broader or narrower than the legal and
equitable remedies available to a court before which such Arbitrated Claim may
have been brought but for this Section 5.8, unless the parties
expressly state elsewhere in this Agreement that parties will be subject to
broader or narrower legal and equitable remedies than would be available under
the law governing this Agreement.

(j)            The arbitral award will be the
exclusive remedy of the parties for all claims, counterclaims, issues or
accountings presented or pleaded to the arbitrator.  The award will include interest from the date
of the Arbitrated Claim until the award is fully paid, computed at the
then-prevailing U.S. prime rate, plus five percent (5%).  Any additional costs, fees or expenses
incurred in enforcing the arbitral award (or successfully resisting it) will be
borne by the party against which enforcement is sought if such award is
successfully enforced (or borne by the party seeking to enforce such award if
the resisting party successfully resists its enforcement).  Any party may enforce an arbitral award in
any court of competent jurisdiction.

 

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5.9           COUNTERPARTS.   This
Agreement may be executed in one or more counterparts, each of which will be
deemed an original and all of which together will constitute one and the same
instrument.

5.10         NO PRESUMPTION
AGAINST DRAFTER.   Each of the parties hereto has jointly participated
in the negotiation and drafting of this Agreement.  In the event an ambiguity or a question of
intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by each of the parties hereto and no presumptions or burdens of
proof shall arise favoring any party by virtue of the authorship of any
provisions of this Agreement.

5.11         ENFORCEMENT.   In
the event either of the parties to this Agreement shall bring an action against
the other party with respect to the enforcement or breach of any provision of
this Agreement, the prevailing party in such action shall recover from the
non-prevailing party the costs incurred by the prevailing party with respect to
such action including court costs and reasonable attorneys’ fees.

5.12         RECITALS.  The Recitals set forth above are hereby
incorporated in and made a part of this Agreement by this reference.

5.13         INDEMNIFICATION.   IWEST
agrees to defend, indemnify and hold harmless Consultant for any and all acts
taken or omitted to be taken by Consultant hereunder (except for bad faith,
gross negligence or willful misconduct) as if Consultant was a director of
IWEST as provided in IWEST’s charter and bylaws in accordance with the same
terms, conditions, limitations, standards, duties, rights and obligations as a
director.  If IWEST enters into an
indemnification or similar agreement covering such indemnification matters with
any IWEST director, IWEST will offer and enter into a similar indemnification
agreement with Consultant.  The
provisions of this Section 5.13 shall survive any termination of this
Agreement.

[Signature page
follows.]

 

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IN WITNESS WHEREOF,
each of the parties hereto has caused this Agreement to be executed and
delivered as of the day and year first above written.

	
  

  	
  INLAND WESTERN RETAIL REAL ESTATE 

  TRUST, INC., a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CONSULTANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

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